II 

118TH CONGRESS 

2D SESSION S. 5310 

To amend title 41, United States Code, to make changes with respect to 

the Federal Acquisition Security Council, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 13, 2024 

Mr. PETERS (for himself and Mr. ROUNDS) introduced the following bill; 

which was read twice and referred to the Committee on Homeland Security and Governmental Affairs 

A BILL 

To amend title 41, United States Code, to make changes 

with respect to the Federal Acquisition Security Council, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Federal Acquisition 

5 Security Council Improvement Act of 2024’’. 

6 SEC. 2. CHANGES WITH RESPECT TO THE FEDERAL ACQUI7 SITION SECURITY COUNCIL. 

8 (a) DEFINITION OF SOURCE OF CONCERN, COVERED

9 SOURCE OF CONCERN, RECOMMENDED ORDER, AND DESVerDate Sep 11 2014 19:07 Nov 15, 2024 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S5310.IS S5310

ssavage on LAPJG3WLY3PROD with BILLS
2 

•S 5310 IS

1 IGNATED ORDER.—Section 1321 of title 41, United States 

2 Code, is amended— 

3 (1) by redesignating paragraphs (5) through 

4 (8) as paragraphs (7) through (10); 

5 (2) by inserting after paragraph (4) the fol6 lowing new paragraph: 

7 ‘‘(5) COVERED SOURCE OF CONCERN.—The 

8 term ‘covered source of concern’ means a source of 

9 concern that is specifically designated as a ‘covered 

10 source of concern’ by a statute that states that such 

11 designation is for the purposes of this subchapter. 

12 ‘‘(6) DESIGNATED ORDER.—The term ‘des13 ignated order’ means an order described under sec14 tion 1323(c)(3).’’; and 

15 (3) by adding at the end the following new 

16 paragraph: 

17 ‘‘(11) RECOMMENDED ORDER.—The term ‘rec18 ommended order’ means an order recommended 

19 under section 1323(c)(2). 

20 ‘‘(12) SOURCE OF CONCERN.— 

21 ‘‘(A) IN GENERAL.—The term ‘source of 

22 concern’ means a source— 

23 ‘‘(i) subject to the jurisdiction, direc24 tion, or control of the government of a forVerDate Sep 11 2014 19:07 Nov 15, 2024 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S5310.IS S5310

ssavage on LAPJG3WLY3PROD with BILLS
3 

•S 5310 IS

1 eign adversary, or operates on behalf of 

2 the government of a foreign adversary; or 

3 ‘‘(ii) that poses a risk to the national 

4 security of the United States based on col5 laboration with, whole or partial ownership 

6 or control by, or being affiliated with a 

7 military, internal security force, or intel8 ligence agency of a foreign adversary. 

9 ‘‘(B) FOREIGN ADVERSARY DEFINED.—In 

10 this paragraph, the term ‘foreign adversary’ has 

11 the meaning given the term ‘covered nation’ in 

12 section 4872(d) of title 10.’’. 

13 (b) ESTABLISHMENT AND MEMBERS OF COUNCIL.— 

14 Section 1322 of title 41, United States Code, is amend15 ed— 

16 (1) in subsection (a), by striking ‘‘executive 

17 branch’’ and inserting ‘‘Executive Office of the 

18 President’’; 

19 (2) in subsection (b)— 

20 (A) by amending paragraph (1) to read as 

21 follows: 

22 ‘‘(1) IN GENERAL.—The members of the Coun23 cil shall be as follows: 

24 ‘‘(A) The Administrator for Federal Pro25 curement Policy. 


ssavage on LAPJG3WLY3PROD with BILLS
4 

•S 5310 IS

1 ‘‘(B) The Deputy Director for Manage2 ment of the Office of Management and Budget. 

3 ‘‘(C) The following officials, each of whom 

4 shall occupy a position at the level of Assistant 

5 Secretary or Deputy Assistant Secretary (or 

6 equivalent): 

7 ‘‘(i) Two officials from the Office of 

8 the Director of National Intelligence, one 

9 of which shall be from the National Coun10 terintelligence and Security Center. 

11 ‘‘(ii) Two officials from the Depart12 ment of Defense, one of which shall be 

13 from the National Security Agency. 

14 ‘‘(iii) Two officials from the Depart15 ment of Homeland Security, one of which 

16 shall be from the Cybersecurity and Infra17 structure Security Agency. 

18 ‘‘(iv) One official from the General 

19 Services Administration. 

20 ‘‘(v) One official from the Office of 

21 the National Cyber Director. 

22 ‘‘(vi) Two officials from the Depart23 ment of Justice, one of which shall be from 

24 the Federal Bureau of Investigation. 


ssavage on LAPJG3WLY3PROD with BILLS
5 

•S 5310 IS

1 ‘‘(vii) Two officials from the Depart2 ment of Commerce, one of which shall be 

3 from the National Institute of Standards 

4 and Technology and one of which shall be 

5 from the Bureau of Industry and Security. 

6 ‘‘(viii) An official from any executive 

7 agency not listed under clauses (i) through 

8 (vii) whose temporary or permanent par9 ticipation is determined by the Chairperson 

10 of the Council to be necessary to carry out 

11 the functions of the Council while main12 taining the intended balance in subject 

13 matter expertise.’’; and 

14 (B) in paragraph (2)— 

15 (i) in the heading, by striking ‘‘LEAD

16 REPRESENTATIVES’’ and inserting ‘‘MEM17 BERS’’; 

18 (ii) by amending subparagraph (A)(i) 

19 to read as follows: 

20 ‘‘(i) IN GENERAL.—The head of each 

21 executive agency listed under paragraph 

22 (1)(C) shall designate the official or offi23 cials from that agency who shall serve on 

24 the Council in accordance with such para25 graph.’’; 


ssavage on LAPJG3WLY3PROD with BILLS
6 

•S 5310 IS

1 (iii) by amending subparagraph 

2 (A)(ii) to read as follows: 

3 ‘‘(ii) REQUIREMENTS.—To the extent 

4 feasible, any official designated under 

5 clause (i) shall have expertise in supply 

6 chain risk management, acquisitions, law, 

7 or information and communications tech8 nology.’’; and 

9 (iv) by amending subparagraph (B) to 

10 read as follows: 

11 ‘‘(B) FUNCTIONS.—A member of the 

12 Council shall— 

13 ‘‘(i) regularly participate in the activi14 ties of the Council; 

15 ‘‘(ii) ensure that any information re16 quested by the Council from the agency 

17 represented by the member is provided to 

18 the Council; and 

19 ‘‘(iii) ensure that the head of the 

20 agency represented by the member and 

21 other appropriate personnel of the agency 

22 are aware of the activities of the Council.’’; 

23 (3) in subsection (c)— 

24 (A) by amending paragraph (1) to read as 

25 follows: 


ssavage on LAPJG3WLY3PROD with BILLS
7 

•S 5310 IS

1 ‘‘(1) IN GENERAL.—The Chairperson of the 

2 Council shall be— 

3 ‘‘(A) the National Cyber Director; or 

4 ‘‘(B) another member of the Council des5 ignated by the National Cyber Director.’’; and 

6 (B) in paragraph (2)— 

7 (i) in subparagraph (B), by striking 

8 ‘‘(b)(1)(H)’’ and inserting ‘‘(b)(1)(C)(vii)’’; 

9 and 

10 (ii) in subparagraph (C), by striking 

11 ‘‘lead representative of each agency rep12 resented on the Council’’ and inserting 

13 ‘‘members of the Council’’; and 

14 (4) in subsection (d)— 

15 (A) by striking ‘‘The Council’’ and insert16 ing the following: 

17 ‘‘(1) COUNCIL MEETINGS.—The Council’’; and 

18 (B) by adding at the end the following: 

19 ‘‘(2) OTHER MEETINGS.—The Chairperson of 

20 the Council shall meet, not less frequently than 

21 semiannually, with— 

22 ‘‘(A) the Secretary of Homeland Security, 

23 the Secretary of Defense, and the Director of 

24 National Intelligence; or 


ssavage on LAPJG3WLY3PROD with BILLS
8 

•S 5310 IS

1 ‘‘(B) in the case that any of the officials 

2 under subparagraph (A) delegated authority to 

3 an official under section 1323(c)(6)(C), with 

4 the delegated official.’’. 

5 (c) FUNCTIONS AND AUTHORITIES.—Section 1323 of 

6 title 41, United States Code, is amended— 

7 (1) in subsection (a)— 

8 (A) by striking ‘‘supply chain’’ each place 

9 it appears and inserting ‘‘acquisition security 

10 and supply chain’’; 

11 (B) in paragraph (1), as amended by sub12 paragraph (A), by striking ‘‘, particularly’’ and 

13 inserting ‘‘that arise’’; 

14 (C) in paragraph (2), as amended by sub15 paragraph (A), by inserting ‘‘associated with 

16 the acquisition and use of covered articles’’ 

17 after ‘‘risk’’; 

18 (D) in paragraph (6)— 

19 (i) by striking ‘‘posed by’’ and insert20 ing ‘‘associated with’’; and 

21 (ii) by inserting ‘‘and use’’ before ‘‘of 

22 covered articles’’; 

23 (E) by redesignating paragraph (7) as 

24 paragraph (12); 


ssavage on LAPJG3WLY3PROD with BILLS
9 

•S 5310 IS

1 (F) in paragraph (12), as redesignated by 

2 subparagraph (E), by striking ‘‘posed by acqui3 sitions’’ and inserting ‘‘associated with the ac4 quisition’’; and 

5 (G) by inserting after paragraph (6) the 

6 following new paragraphs: 

7 ‘‘(7) Implementing a prioritization scheme for 

8 evaluating the security risks associated with the ac9 quisition and use of covered articles provided or pro10 duced by a covered source of concern. 

11 ‘‘(8) Evaluating each covered source of concern 

12 to determine whether to issue a designated order 

13 with respect to the covered source of concern or a 

14 covered article produced or provided by the covered 

15 source of concern. 

16 ‘‘(9) Evaluating sources of concern to determine 

17 whether to issue a recommended order with respect 

18 to the source of concern, or any covered article pro19 duced or provided by the source of concern. 

20 ‘‘(10) Monitoring the issuance of designated or21 ders under subsection (c)(6)(B), as required, by the 

22 Secretary of Homeland Security, the Secretary of 

23 Defense, and the Director of National Intelligence 

24 with the requirement to issue designated orders 


ssavage on LAPJG3WLY3PROD with BILLS
10 

•S 5310 IS

1 under subsection (c)(6)(B) and providing technical 

2 assistance to those agencies on compliance matters. 

3 ‘‘(11) Reporting to Congress annually on the 

4 security risks associated with the acquisition and use 

5 of covered articles produced or provided by sources 

6 of concern.’’; 

7 (2) in subsection (b)— 

8 (A) by striking ‘‘The Council’’ and insert9 ing the following: 

10 ‘‘(1) IN GENERAL.—The Council’’; and 

11 (B) in paragraph (1), as so redesignated, 

12 by striking ‘‘a program office and’’; and 

13 (C) by adding at the end the following new 

14 paragraph: 

15 ‘‘(2) FEDERAL ACQUISITION SECURITY COUNCIL

16 PROGRAM OFFICE.— 

17 ‘‘(A) ESTABLISHMENT.—The Council shall 

18 establish a Federal Acquisition Security Council 

19 Program Office (referred to in this paragraph 

20 as the ‘Program Office’) within the Office of 

21 the National Cyber Director to carry out the 

22 functions of the Council duties described under 

23 subparagraph (B). 

24 ‘‘(B) DUTIES.—The Program Office shall 

25 provide to the Council and any committees, 


ssavage on LAPJG3WLY3PROD with BILLS
11 

•S 5310 IS

1 working groups, or other constituent bodies es2 tablished by the Council under paragraph (1)— 

3 ‘‘(i) administrative, legal, and policy 

4 support; and 

5 ‘‘(ii) analysis and subject matter ex6 pertise on information communications 

7 technology, acquisition security, and supply 

8 chain risk. 

9 ‘‘(C) STRUCTURE.—The head of the Pro10 gram Office shall be a senior official from the 

11 Office of the National Cyber Director that occu12 pies a position at the level of Assistant Sec13 retary or Deputy Assistant Secretary (or equiv14 alent). 

15 ‘‘(D) PROHIBITION.—The Program Office 

16 may not provide administrative support to the 

17 Council for any activities of the Council carried 

18 out pursuant to a provision of law other than 

19 a provision of law under this subchapter. 

20 ‘‘(E) FUNDING AND RESOURCES.—The 

21 Program Office may use the staff and resources 

22 of the Office of the National Cyber Director or 

23 maintain dedicated staff and resources, as ap24 propriate, in the performance of the duties of 

25 the Office. 


ssavage on LAPJG3WLY3PROD with BILLS
12 

•S 5310 IS

1 ‘‘(F) SHARED STAFFING AUTHORITY.— 

2 ‘‘(i) IN GENERAL.—The Program Of3 fice may accept officers or employees of 

4 the United States or members of the 

5 Armed Forces on a detail from an element 

6 of the intelligence community (as such 

7 term is defined in section 3 of the National 

8 Security Act of 1947 (50 U.S.C. 3003)) or 

9 from another element of the Federal Gov10 ernment on a nonreimbursable basis, as 

11 jointly agreed to by the heads of the receiv12 ing and detailing elements, for a period not 

13 to exceed three years. 

14 ‘‘(ii) RULE OF CONSTRUCTION.— 

15 Nothing in this subparagraph may be con16 strued as imposing any limitation on any 

17 other authority for reimbursable or nonre18 imbursable details. 

19 ‘‘(iii) NONREIMBURSABLE DETAIL.—A 

20 nonreimbursable detail made under this 

21 subparagraph shall not be considered an 

22 augmentation of the appropriations of the 

23 receiving element of the Program Office or 

24 the Office of the National Cyber Director. 


ssavage on LAPJG3WLY3PROD with BILLS
13 

•S 5310 IS

1 ‘‘(G) SUNSET.—The Program Office shall 

2 terminate on the date described under section 

3 1328.’’; 

4 (3) in subsection (c)— 

5 (A) in paragraph (1)— 

6 (i) in the matter preceding subpara7 graph (A), by striking ‘‘supply chain risk’’ 

8 and inserting ‘‘acquisition security and 

9 supply chain risk associated with the ac10 quisition of covered articles’’; 

11 (ii) in subparagraph (A), by inserting 

12 ‘‘recommended’’ before ‘‘exclusion orders’’; 

13 (iii) in subparagraph (B), by inserting 

14 ‘‘recommended’’ before ‘‘removal orders’’; 

15 (iv) in subparagraph (C), by striking 

16 ‘‘; and’’ and inserting a semicolon; 

17 (v) in subparagraph (D), by striking 

18 the period at the end and inserting ‘‘; 

19 and’’; and 

20 (vi) by adding at the end the following 

21 new subparagraph: 

22 ‘‘(E) issuing designated orders.’’; 

23 (B) in paragraph (2)— 


ssavage on LAPJG3WLY3PROD with BILLS
14 

•S 5310 IS

1 (i) in the heading, by striking ‘‘REC2 OMMENDATIONS’’ and inserting ‘‘REC3 OMMENDED ORDERS’’; 

4 (ii) by striking ‘‘use’’ and inserting ‘‘, 

5 using’’; 

6 (iii) by striking ‘‘subsection (a)(3)’’ 

7 and inserting ‘‘subsection (a)(4)’’; 

8 (iv) by striking ‘‘recommendations’’ 

9 and inserting ‘‘recommend orders’’; 

10 (v) by inserting ‘‘to the officials de11 scribed under clause (iii) of paragraph 

12 (6)(A) for issuance under such paragraph’’ 

13 after ‘‘thereof,’’; 

14 (vi) by striking ‘‘Such recommenda15 tions’’ and inserting ‘‘Any such order rec16 ommended’’; 

17 (vii) in subparagraph (D), by striking 

18 ‘‘supply chain risk’’ and inserting ‘‘acquisi19 tion security and supply chain risk associ20 ated with the acquisition of covered arti21 cles’’; and 

22 (viii) in subparagraph (E), by striking 

23 ‘‘exclusion or removal’’; 

24 (C) by redesignating paragraphs (3) 

25 through (7) as paragraphs (4) through (8); 


ssavage on LAPJG3WLY3PROD with BILLS
15 

•S 5310 IS

1 (D) by inserting after paragraph (2) the 

2 following new paragraph: 

3 ‘‘(3) DESIGNATED ORDERS.— 

4 ‘‘(A) EXCLUSION OR REMOVAL OF COV5 ERED SOURCES OF CONCERN.— 

6 ‘‘(i) IN GENERAL.—Not later than 

7 270 days after a source of concern is des8 ignated as a covered source of concern pur9 suant to paragraph (2), the Council— 

10 ‘‘(I) shall provide to the officials 

11 described under clause (iii) of para12 graph (6)(B) for issuance under such 

13 paragraph orders requiring— 

14 ‘‘(aa) the exclusion of the 

15 covered source of concern from 

16 any executive agency procure17 ment action, including source se18 lection and consent for a con19 tractor; or 

20 ‘‘(bb) the removal of covered 

21 articles produced or provided by 

22 the covered source of concern 

23 from the information system of 

24 executive agencies; or 


ssavage on LAPJG3WLY3PROD with BILLS
16 

•S 5310 IS

1 ‘‘(II) report to Congress why the 

2 Council has determined to not issue 

3 an order described under subclause (I) 

4 with respect to the covered source of 

5 concern or covered articles produced 

6 or provided by the covered source of 

7 concern. 

8 ‘‘(ii) CONTENTS OF ORDER.—Any 

9 order provided under clause (i) shall in10 clude— 

11 ‘‘(I) information regarding the 

12 scope and applicability of the order, 

13 including any information necessary 

14 to positively identify the covered 

15 source of concern or covered articles 

16 produced or provided by the covered 

17 source of concern required to be ex18 cluded or removed under the order; 

19 ‘‘(II) a summary of any risk as20 sessment reviewed or conducted in 

21 support of the order; 

22 ‘‘(III) a summary of the basis for 

23 the order, including a discussion of 

24 less intrusive measures that were con25 sidered and why such measures were 


ssavage on LAPJG3WLY3PROD with BILLS
17 

•S 5310 IS

1 not reasonably available to reduce se2 curity risk; 

3 ‘‘(IV) a description of the actions 

4 necessary to implement the order; and 

5 ‘‘(V) where practicable, in the 

6 Council’s sole and unreviewable dis7 cretion, a description of mitigation 

8 steps that could be taken by the cov9 ered source of concern that may result 

10 in the Council rescinding the order. 

11 ‘‘(B) EXCLUSION OR REMOVAL OF SECOND

12 ORDER SOURCES OR COVERED ARTICLES.— 

13 ‘‘(i) ISSUANCE.—In the case that the 

14 Council provides an order under subpara15 graph (A), the Council may also provide an 

16 order to the officials described under para17 graph (6)(A)(iii) requiring the exclusion of 

18 sources or covered articles from executive 

19 agency procurement actions or removal of 

20 covered articles from executive agency in21 formation systems if— 

22 ‘‘(I) such covered articles or such 

23 sources use a covered source of con24 cern in the performance of a contract 

25 with the executive agency; or 


ssavage on LAPJG3WLY3PROD with BILLS
18 

•S 5310 IS

1 ‘‘(II) such sources enter into a 

2 contract, the performance of which 

3 such source knows or has reason to 

4 believe will require, in the perform5 ance of a contract with the executive 

6 agency, the use of a covered source of 

7 concern or the use of a covered article 

8 produced or provided by a covered 

9 source of concern. 

10 ‘‘(ii) EFFECTIVE DATE CONSIDER11 ATIONS.—Any effective date prescribed by 

12 the Council for an order issued pursuant 

13 to clause (i) shall take into account— 

14 ‘‘(I) the risk posed by the covered 

15 source of concern or the covered arti16 cle produced or provided by the cov17 ered source of concern to the national 

18 security of the United States; 

19 ‘‘(II) the likelihood of the covered 

20 source of concern or the covered arti21 cle produced or provided by the cov22 ered source of concern causing immi23 nent threat to public health and safe24 ty; 


ssavage on LAPJG3WLY3PROD with BILLS
19 

•S 5310 IS

1 ‘‘(III) the availability of an alter2 native source or covered article pro3 duced or provided by an alternative 

4 source; and 

5 ‘‘(IV) an assessment of the po6 tential direct or quantifiable costs 

7 that may be incurred by the Federal 

8 Government, a State, local, or Tribal 

9 government, or by the private sector, 

10 as a result of compliance by the head 

11 of an executive agency with such an 

12 exclusion or removal order, as nec13 essary.’’; 

14 (E) in paragraph (4), as so redesignated— 

15 (i) in the paragraph heading, by strik16 ing ‘‘OF RECOMMENDATION AND REVIEW’’ 

17 and inserting ‘‘AND REVIEW OF REC18 OMMENDED AND DESIGNATED ORDERS’’; 

19 (ii) by striking ‘‘ the recommenda20 tion’’ each place it appears, and inserting 

21 ‘‘ the order’’; 

22 (iii) in the matter preceding subpara23 graph (A), by striking ‘‘A notice of the 

24 Council’s recommendation under para25 graph (2)’’ and inserting ‘‘Before the 


ssavage on LAPJG3WLY3PROD with BILLS
20 

•S 5310 IS

1 Council recommends an order under para2 graph (2) or issues an order under para3 graph (3), a notice’’; 

4 (iv) in subparagraph (A), by striking 

5 ‘‘a recommendation has been made’’ and 

6 inserting ‘‘the order will be recommended 

7 or issued’’; 

8 (v) in subparagraph (D), by striking 

9 ‘‘paragraph (5); and’’ and inserting ‘‘para10 graph (6);’’; 

11 (vi) in subparagraph (E), by striking 

12 the period at the end and inserting ‘‘; 

13 and’’; and 

14 (vii) by adding at the end the fol15 lowing new subparagraph: 

16 ‘‘(F) Until an order is issued pursuant to 

17 paragraph (6), information collected under this 

18 paragraph shall be exempt from public disclo19 sure and shall be treated as information de20 scribed in section 552(b)(3) of title 5, United 

21 States Code (commonly referred to as the 

22 ‘Freedom of Information Act’).’’; 

23 (F) in paragraph (5), as so redesignated— 

24 (i) by striking ‘‘paragraph (3)’’ and 

25 inserting ‘‘paragraph (4)’’; 


ssavage on LAPJG3WLY3PROD with BILLS
21 

•S 5310 IS

1 (ii) in subparagraph (A), by striking 

2 ‘‘paragraph (5)’’ and inserting ‘‘paragraph 

3 (6)’’; and 

4 (iii) in subparagraph (B), by striking 

5 ‘‘paragraph (6)’’ and inserting ‘‘paragraph 

6 (7)’’; 

7 (G) in paragraph (6), as so redesignated— 

8 (i) by amending subparagraph (A) to 

9 read as follows: 

10 ‘‘(A) ISSUANCE OF RECOMMENDED OR11 DERS.— 

12 ‘‘(i) MODIFICATIONS TO ORDER.— 

13 After considering any response properly 

14 submitted by a source under paragraph (4) 

15 related to an order to be recommended 

16 under paragraph (2), the Council shall— 

17 ‘‘(I) make such modifications to 

18 the order as the Council considers ap19 propriate; and 

20 ‘‘(II) provide the order (together 

21 with any information submitted by a 

22 source under paragraph (4) related to 

23 such order) to the officials described 

24 under clause (iii). 


ssavage on LAPJG3WLY3PROD with BILLS
22 

•S 5310 IS

1 ‘‘(ii) ORDER.—Not later than 90 days 

2 after receiving a recommended order, the 

3 officials described under clause (iii) shall— 

4 ‘‘(I) issue the order to the heads 

5 of the applicable agencies; or 

6 ‘‘(II) submit a notification to the 

7 Council that the order will not be 

8 issued, that includes in the notifica9 tion to the Council, all the reasons for 

10 why the order will not be issued. 

11 ‘‘(iii) OFFICIALS.—The officials de12 scribed in this clause are as follows: 

13 ‘‘(I) The Secretary of Homeland 

14 Security, for exclusion and removal 

15 orders applicable to civilian agencies, 

16 to the extent not covered by subclause 

17 (II) or (III). 

18 ‘‘(II) The Secretary of Defense, 

19 for exclusion and removal orders ap20 plicable to the Department of Defense 

21 and national security systems other 

22 than sensitive compartmented infor23 mation systems. 

24 ‘‘(III) The Director of National 

25 Intelligence, for exclusion and removal 


ssavage on LAPJG3WLY3PROD with BILLS
23 

•S 5310 IS

1 orders applicable to the intelligence 

2 community and sensitive compart3 mented information systems, to the 

4 extent not covered by subclause (II).’’; 

5 (ii) by redesignating subparagraphs 

6 (B) through (E) as subparagraphs (C) 

7 through (F), respectively; 

8 (iii) by inserting after subparagraph 

9 (A) the following new subparagraph: 

10 ‘‘(B) ISSUANCE OF DESIGNATED ORDER.— 

11 ‘‘(i) MODIFICATIONS.—After consid12 ering any response properly submitted by a 

13 source under paragraph (4) related to a 

14 designated order, the Council shall— 

15 ‘‘(I)(aa) make any such modifica16 tions to the order as the Council con17 siders appropriate; or 

18 ‘‘(bb) if the Council determines 

19 that the issuance of a designated 

20 order is not warranted, rescind the 

21 designated order and notify the source 

22 of the rescission; and 

23 ‘‘(II) except in the case that the 

24 Council rescinds the designated order 

25 under subclause (I)(bb), provide the 


ssavage on LAPJG3WLY3PROD with BILLS
24 

•S 5310 IS

1 designated order (including any modi2 fications made to such order by the 

3 Council) to the officials described in 

4 clause (iii). 

5 ‘‘(ii) ISSUANCE.—The officials de6 scribed in clause (iii) shall, not later than 

7 90 days after receiving a designated order, 

8 issue the order to the heads of the applica9 ble agencies. 

10 ‘‘(iii) OFFICIALS.—The officials de11 scribed in this clause are as follows: 

12 ‘‘(I) The Secretary of Homeland 

13 Security, for exclusion and removal 

14 orders applicable to civilian agencies, 

15 to the extent not covered by subclause 

16 (II) or (III). 

17 ‘‘(II) The Secretary of Defense, 

18 for exclusion and removal orders ap19 plicable to the Department of Defense 

20 and national security systems other 

21 than sensitive compartmented infor22 mation systems. 

23 ‘‘(III) The Director of National 

24 Intelligence, for exclusion and removal 

25 orders applicable to the intelligence 


ssavage on LAPJG3WLY3PROD with BILLS
25 

•S 5310 IS

1 community and sensitive compart2 mented information systems, to the 

3 extent not covered by subclause (II). 

4 ‘‘(iv) WAIVER.—An official described 

5 under clause (iii) may waive for a period of 

6 not more than 365 days the application of 

7 an order issued by such official under 

8 clause (ii) with respect to a covered source 

9 of concern or a covered article produced or 

10 provided by a covered source of concern if 

11 the official submits, not later than 30 days 

12 after making such waiver, a written notifi13 cation to the Council, the appropriate con14 gressional committees, and leadership that 

15 contains the justification for such waiver, 

16 which may include a classified annex. 

17 ‘‘(v) RENEWAL OF WAIVER.—An offi18 cial described under clause (iii) may renew 

19 a waiver under clause (iv) for an additional 

20 period of not more than 365 days if— 

21 ‘‘(I) the renewal of the waiver is 

22 in the national security interests of 

23 the United States; and 

24 ‘‘(II) the official submits, not 

25 later than 30 days after renewing 


ssavage on LAPJG3WLY3PROD with BILLS
26 

•S 5310 IS

1 such waiver, a written notification to 

2 the Council, the appropriate congres3 sional committees, and leadership that 

4 includes the justification for renewing 

5 the wavier. 

6 ‘‘(vi) NATIONAL SECURITY WAIVER.— 

7 An official described under clause (iii) may 

8 waive the application of an order issued by 

9 such official under clause (ii) with respect 

10 to a covered source of concern or a covered 

11 article produced or provided by a covered 

12 source of concern for any activity subject 

13 to the reporting requirements under title V 

14 of the National Security Act of 1947 (50 

15 U.S.C. 3091 et seq.) or any authorized in16 telligence activities of the United States. 

17 ‘‘(vii) RESCISSION OF ORDER.—An ex18 clusion or removal order issued under this 

19 subparagraph by an official may be re20 scinded only by the Council.’’; 

21 (iv) in subparagraph (C), as so redes22 ignated— 

23 (I) by striking ‘‘subparagraph 

24 (A)’’ and inserting ‘‘subparagraph 

25 (A)(iii) or (B)(iii)’’; 


ssavage on LAPJG3WLY3PROD with BILLS
27 

•S 5310 IS

1 (II) by striking ‘‘this subpara2 graph’’ and inserting ‘‘subparagraph 

3 (A)(iii) or (B)(iii)’’; and 

4 (III) by striking ‘‘, except’’ and 

5 all that follows through ‘‘Deputy 

6 Commander’’; 

7 (v) in subparagraph (D), as so redes8 ignated— 

9 (I) by striking ‘‘this paragraph’’ 

10 and inserting ‘‘subparagraph (A)(iii) 

11 or (B)(iii)’’; and 

12 (II) by striking ‘‘help’’; 

13 (vi) in subparagraph (E), as so redes14 ignated, by striking ‘‘this paragraph’’ and 

15 inserting ‘‘subparagraph (A)’’; and 

16 (vii) by adding after subparagraph 

17 (F), as so redesignated, the following new 

18 subparagraph: 

19 ‘‘(G) EFFECTIVE DATE OF ORDERS.—The 

20 effective date of an order issued under this 

21 paragraph may not be more than one year after 

22 the order is issued.’’; 

23 (H) in paragraph (7), as so redesignated, 

24 by striking ‘‘paragraph (5)(A)’’ and inserting 


ssavage on LAPJG3WLY3PROD with BILLS
28 

•S 5310 IS

1 ‘‘subparagraph (A) or (B) of paragraph (6)’’; 

2 and 

3 (I) in paragraph (8), as so redesignated, 

4 by striking ‘‘paragraph (5)’’ and inserting 

5 ‘‘paragraph (6)’’; 

6 (4) in subsection (e), by inserting ‘‘the Chief 

7 Data Officers Council,’’ before ‘‘the Chief Acquisi8 tion’’; and 

9 (5) in subsection (f)(2), by striking the period 

10 at the end and inserting ‘‘unless such source is spe11 cifically designated by statute as a covered source of 

12 concern for the purposes of this subchapter.’’. 

13 (d) STRATEGIC PLAN.—Section 1324(a) of title 41, 

14 United States Code, is amended— 

15 (1) by inserting ‘‘, and periodically thereafter’’ 

16 after ‘‘2018’’; 

17 (2) in the matter preceding paragraph (1), by 

18 inserting ‘‘acquisition security and’’ before ‘‘supply 

19 chain risks’’; 

20 (3) in paragraph (8), by inserting ‘‘acquisition 

21 security and’’ before ‘‘supply chain risks’’; and 

22 (4) in paragraph (9)(A), by inserting ‘‘acquisi23 tion security and’’ before ‘‘supply chain risk’’. 


ssavage on LAPJG3WLY3PROD with BILLS
29 

•S 5310 IS

1 (e) REQUIREMENTS FOR EXECUTIVE AGENCIES.— 

2 Section 1326 of title 41, United States Code, is amend3 ed— 

4 (1) by striking ‘‘supply chain’’ each place such 

5 term appears and inserting ‘‘security and supply 

6 chain’’; 

7 (2) in subsection (a)— 

8 (A) in paragraph (1), by striking ‘‘; and’’ 

9 and inserting a semicolon; 

10 (B) in paragraph (2), by striking the pe11 riod at the end and inserting ‘‘; and’’; and 

12 (C) by adding at the end the following: 

13 ‘‘(3) providing any information requested by the 

14 Chairperson of the Council for the purpose of car15 rying out activities of this subchapter, subject to ap16 plicable law or policy on control and handling of 

17 classified, sensitive, or proprietary information.’’; 

18 and 

19 (3) in subsection (b)(6), by striking ‘‘may pose’’ 

20 and all that follows through ‘‘risk’’ and inserting 

21 ‘‘may pose a security or supply chain risk’’. 

22 (f) JUDICIAL PROCEDURE.—Section 1327(b) of title 

23 41, United States Code, is amended— 

24 (1) in paragraph (1), by striking ‘‘section 

25 1323(c)(6)’’ and inserting ‘‘section 1323(c)(7)’’; 


ssavage on LAPJG3WLY3PROD with BILLS
30 

•S 5310 IS

1 (2) in paragraph (3), by striking ‘‘sections 

2 1323(c)(5)’’ and inserting ‘‘sections 1323(c)(6)’’; 

3 and 

4 (3) in paragraph (4), by amending subpara5 graph (B)(i) to read as follows: 

6 ‘‘(i) FILING OF RECORD.—The United 

7 States shall file with the court an adminis8 trative record, which shall consist of— 

9 ‘‘(I) the information the Council 

10 relied upon in issuing a designated 

11 order under section 1323(c)(6); and 

12 ‘‘(II) the information that the ap13 propriate official relied upon in 

14 issuing an exclusion or removal order 

15 under section 1323(c)(6) or a covered 

16 procurement action under section 

17 4713.’’. 

18 (g) ADDITIONAL PROVISIONS.—Subchapter III of 

19 chapter 13 of title 41, United States Code, is amended 

20 by adding at the end the following new section: 

21 ‘‘§ 1329. Additional provisions 

22 ‘‘(a) COMPLIANCE WITH EXISTING PROHIBITIONS.— 

23 In implementing this subchapter, the Council shall coordi24 nate, as applicable and practicable, with the head of an 

25 agency to assist with compliance by the agency with— 


ssavage on LAPJG3WLY3PROD with BILLS
31 

•S 5310 IS

1 ‘‘(1) section 889 of the John S. McCain Na2 tional Defense Authorization Act of 2019 (Public 

3 Law 115–232; 41 U.S.C. 3901 note); 

4 ‘‘(2) section 5949 of the James M. Inhofe Na5 tional Defense Authorization Act of 2023 (Public 

6 Law 117–263; 41 U.S.C. 4713 note); and 

7 ‘‘(3) sections 1821 through 1833 of the Amer8 ican Security Drone Act of 2023 (Public Law 118– 

9 31). 

10 ‘‘(b) UPDATE TO REGULATIONS.—Not later than two 

11 years after the date of the enactment of this section, the 

12 Federal Acquisition Security Council shall update any reg13 ulations the Council determines necessary.’’. 

14 (h) TECHNICAL AND CONFORMING CHANGES.—Sub15 chapter III of chapter 13 of title 41, United States Code, 

16 is amended— 

17 (1) in the table of sections for the subchapter 

18 by adding after the item related to section 1328 the 

19 following: 

‘‘1329. Additional provisions.’’; 

20 (2) in section 1321(1)(B), by striking ‘‘Govern21 ment Reform’’ and inserting ‘‘Accountability’’; and 

22 (3) by striking ‘‘of this title’’ each place the 

23 term appears. 


ssavage on LAPJG3WLY3PROD with BILLS
32 

•S 5310 IS

1 SEC. 3. REALLOCATING EXISTING RESOURCES. 

2 Section 5949(l) of the James M. Inhofe National De3 fense Authorization Act for Fiscal Year 2023 (Public Law 

4 117–263) is amended— 

5 (1) in paragraph (1), by striking ‘‘Office of 

6 Management and Budget’’ and inserting ‘‘Office of 

7 the National Cyber Director’’; and 

8 (2) in paragraph (2), by striking ‘‘Office of 

9 Management and Budget’’ and inserting ‘‘Office of 

10 the National Cyber Director’’. 

Æ 


ssavage on LAPJG3WLY3PROD with BILLS