(iii) in subparagraph (B), by inserting 
‘‘recommended’’ before ‘‘removal orders’’; 
(iv) in subparagraph (C), by striking 
‘‘; and’’ and inserting a semicolon; 
(v) in subparagraph (D), by striking 
the period at the end and inserting ‘‘; 
and’’; and 
(vi) by adding at the end the fol-
lowing: 
‘‘(E) issuing designated orders.’’; 
(B) in paragraph (2)— 
(i) in the heading, by striking ‘‘REC-
OMMENDATIONS’’ and inserting ‘‘REC-
OMMENDED ORDERS’’; 
(ii) by striking ‘‘use’’ and inserting ‘‘, 
using’’; 
(iii) by striking ‘‘subsection (a)(3)’’ 
and inserting ‘‘subsection (a)(4)’’; 
(iv) by striking ‘‘to issue recommenda-
tions’’ and inserting ‘‘, recommend or-
ders’’; 
(v) by striking ‘‘Such recommenda-
tions’’ and inserting ‘‘Any such order rec-
ommended’’; 
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(vi) by inserting ‘‘to the officials de-
scribed under clause (iii) of paragraph 
(6)(A) for issuance under such paragraph’’ 
after ‘‘thereof,’’; 
(vii) in subparagraph (D), by striking 
‘‘supply chain risk’’ and inserting ‘‘acquisi-
tion security and supply chain risk associ-
ated with the acquisition of covered arti-
cles’’; and 
(viii) in subparagraph (E), by striking 
‘‘exclusion or removal’’; 
(C) 
by 
redesignating 
paragraphs 
(3) 
through (7) as paragraphs (4) through (8); 
(D) by inserting after paragraph (2) the 
following: 
‘‘(3) DESIGNATED ORDERS.— 
‘‘(A) EXCLUSION
OR
REMOVAL
OF
COV-
ERED SOURCES OF CONCERN.— 
‘‘(i) IN
GENERAL.—Not later than 
270 days after a source of concern is des-
ignated as a covered source of concern, the 
Council— 
‘‘(I) shall provide to the officials 
described under clause (iii) of para-
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graph (6)(B) for issuance under such 
paragraph orders requiring— 
‘‘(aa) the exclusion of the 
covered source of concern from 
any executive agency procure-
ment action, including source se-
lection and consent for a con-
tractor; or 
‘‘(bb) the removal of covered 
articles produced or provided by 
the covered source of concern 
from the information system of 
executive agencies; or 
‘‘(II) report to Congress why the 
Council has determined to not issue 
an order described under subclause (I) 
with respect to the covered source of 
concern or covered articles produced 
or provided by the covered source of 
concern. 
‘‘(ii) CONTENTS
OF
ORDER.—Any 
order provided under clause (i) shall in-
clude— 
‘‘(I) information regarding the 
scope and applicability of the order, 
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including any information necessary 
to positively identify the covered 
source of concern or covered articles 
produced or provided by the covered 
source of concern required to be ex-
cluded or removed under the order; 
‘‘(II) a summary of any risk as-
sessment reviewed or conducted in 
support of the order; 
‘‘(III) a summary of the basis for 
the order, including a discussion of 
less intrusive measures that were con-
sidered and why such measures were 
not reasonably available to reduce se-
curity risk; 
‘‘(IV) a description of the actions 
necessary to implement the order; and 
‘‘(V) where practicable, in the 
Council’s sole and unreviewable dis-
cretion, a description of mitigation 
steps that could be taken by the cov-
ered source of concern that may result 
in the Council rescinding the order. 
‘‘(B) EXCLUSION OR REMOVAL OF SECOND 
ORDER SOURCES OR COVERED ARTICLES.— 
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‘‘(i) ISSUANCE.—In the case that the 
Council provides an order under subpara-
graph (A), the Council may also provide an 
order to the officials described under para-
graph (6)(A)(iii) requiring the exclusion of 
sources or covered articles from executive 
agency procurement actions or removal of 
covered articles from executive agency in-
formation systems if— 
‘‘(I) such covered articles or such 
sources use a covered source of con-
cern in the performance of a contract 
with the executive agency; or 
‘‘(II) such sources enter into a 
contract, the performance of which 
such source knows or has reason to 
believe will require, in the perform-
ance of a contract with the executive 
agency, the use of a covered source of 
concern or the use of a covered article 
produced or provided by a covered 
source of concern. 
‘‘(ii) EFFECTIVE
DATE
CONSIDER-
ATIONS.—Any effective date prescribed by 
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the Council for an order issued pursuant 
to clause (i) shall take into account— 
‘‘(I) the risk posed by the covered 
source of concern or the covered arti-
cle produced or provided by the cov-
ered source of concern to the national 
security of the United States; 
‘‘(II) the likelihood of the covered 
source of concern or the covered arti-
cle produced or provided by the cov-
ered source of concern causing immi-
nent threat to public health and safe-
ty; 
‘‘(III) the availability of an alter-
native source or covered article pro-
duced or provided by an alternative 
source; and 
‘‘(IV) an assessment of the po-
tential direct or quantifiable costs 
that may be incurred by the Federal 
Government, a State, local, or Tribal 
government, or by the private sector, 
as a result of compliance by the head 
of an executive agency with such an 
exclusion or removal order.’’; 
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(E) in paragraph (4), as so redesignated— 
(i) in the heading, by striking ‘‘OF 
RECOMMENDATION AND REVIEW’’ and in-
serting ‘‘AND REVIEW OF RECOMMENDED 
AND DESIGNATED ORDERS’’; 
(ii) by striking ‘‘the recommendation’’ 
each place the term appears, and inserting 
‘‘the order’’; 
(iii) in the matter preceding subpara-
graph (A), by striking ‘‘A notice of the 
Council’s recommendation under para-
graph (2)’’ and inserting ‘‘Before the 
Council recommends an order under para-
graph (2) or issues an order under para-
graph (3), a notice’’; 
(iv) in subparagraph (A), by striking 
‘‘a recommendation has been made’’ and 
inserting ‘‘the order will be recommended 
or issued’’; 
(v) in subparagraph (D), by striking 
‘‘paragraph (5)’’ and inserting ‘‘paragraph 
(6)’’; and 
(vi) by inserting a new subparagraph 
to read as follows: 
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‘‘(F) Until an order is issued pursuant to 
paragraph (6), information collected under this 
paragraph shall be exempt from public disclo-
sure and shall be exempt from disclosure under 
section 552(b)(3)(B) of title 5, United States 
Code (commonly referred to as the ‘Freedom of 
Information Act’).’’; 
(F) in paragraph (5), as so redesignated— 
(i) by striking ‘‘paragraph (3)’’ and 
inserting ‘‘paragraph (4)’’; 
(ii) in subparagraph (A), by striking 
‘‘paragraph (5)’’ and inserting ‘‘paragraph 
(6)’’; and 
(iii) in subparagraph (B), by striking 
‘‘paragraph (6)’’ and inserting ‘‘paragraph 
(7)’’; 
(G) in paragraph (6), as so redesignated— 
(i) by amending subparagraph (A) to 
read as follows: 
‘‘(A) ISSUANCE
OF
RECOMMENDED
OR-
DERS.— 
‘‘(i) MODIFICATIONS
TO
ORDER.— 
After considering any response properly 
submitted by a source under paragraph (4) 
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related to an order to be recommended 
under paragraph (2), the Council shall— 
‘‘(I) make such modifications to 
the order as the Council considers ap-
propriate; and 
‘‘(II) provide the order (together 
with any information submitted by a 
source under paragraph (4) related to 
such order) to the officials described 
under clause (iii). 
‘‘(ii) ORDER.—Not later than 90 days 
after receiving a recommended order, the 
officials described under clause (iii) shall— 
‘‘(I) issue the order to the heads 
of the applicable agencies; or 
‘‘(II) submit a notification to the 
Council that the order will not be 
issued, that includes in the notifica-
tion to the Council, all the reasons for 
why the order will not be issued. 
‘‘(iii) OFFICIALS.—The officials de-
scribed in this clause are as follows: 
‘‘(I) The Secretary of Homeland 
Security, for exclusion and removal 
orders applicable to civilian agencies, 
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to the extent not covered by subclause 
(II) or (III). 
‘‘(II) The Secretary of Defense, 
for exclusion and removal orders ap-
plicable to the Department of Defense 
and national security systems other 
than sensitive compartmented infor-
mation systems. 
‘‘(III) The Director of National 
Intelligence, for exclusion and removal 
orders applicable to the intelligence 
community and sensitive compart-
mented information systems, to the 
extent not covered by subclause (II).’’; 
(ii) by redesignating subparagraphs 
(B) through (E) as subparagraphs (C) 
through (F), respectively; 
(iii) by inserting after subparagraph 
(A) the following; 
‘‘(B) ISSUANCE OF DESIGNATED ORDER.— 
‘‘(i) MODIFICATIONS.—After consid-
ering any response properly submitted by a 
source under paragraph (4) related to a 
designated order, the Council shall— 
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‘‘(I)(aa) make any such modifica-
tions to the order as the Council con-
siders appropriate; or 
‘‘(bb) if the Council deter-
mines that the issuance of a des-
ignated order is not warranted, 
rescind the designated order and 
notify the source of the rescis-
sion; and 
‘‘(II) except in the case that the 
Council rescinds the designated order 
under subclause (I)(bb), provide the 
designated order (including any modi-
fications made to such order by the 
Council) to the officials described in 
clause (iii). 
‘‘(ii) ISSUANCE.—The officials de-
scribed in clause (iii) shall, not later than 
90 days after receiving a designated order, 
issue the order to the heads of the applica-
ble agencies. 
‘‘(iii) OFFICIALS.—The officials de-
scribed in this clause are as follows: 
‘‘(I) The Secretary of Homeland 
Security, for exclusion and removal 
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orders applicable to civilian agencies, 
to the extent not covered by subclause 
(II) or (III). 
‘‘(II) The Secretary of Defense, 
for exclusion and removal orders ap-
plicable to the Department of Defense 
and national security systems other 
than sensitive compartmented infor-
mation systems. 
‘‘(III) The Director of National 
Intelligence, for exclusion and removal 
orders applicable to the intelligence 
community and sensitive compart-
mented information systems, to the 
extent not covered by subclause (II). 
‘‘(iv) WAIVER.—An official described 
under clause (iii) may waive for a period of 
not more than 365 days the application of 
an order issued by such official under 
clause (ii) with respect to a covered source 
of concern or a covered article produced or 
provided by a covered source of concern if 
the official submits, not later than 30 days 
after making such waiver, a written notifi-
cation to the Council, appropriate congres-
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sional committees, and leadership that con-
tains the justification for such waiver. 
‘‘(v) RENEWAL OF WAIVER.—An offi-
cial described under clause (iii) may renew 
a waiver under clause (iv) for an additional 
period of not more than 180 days if— 
‘‘(I) the renewal of the waiver is 
in the national security interests of 
the United States; and 
‘‘(II) the official submits, not 
later than 30 days after renewing 
such waiver, a written notification to 
the Council, appropriate congressional 
committees, and leadership that in-
cludes the justification for renewing 
the wavier. 
‘‘(vi) NATIONAL SECURITY WAIVER.— 
An official described under clause (iii) may 
waive the application of an order issued by 
such official under clause (ii) with respect 
to a covered source of concern or a covered 
article produced or provided by a covered 
source of concern for any activity subject 
to the reporting requirements under title V 
of the National Security Act of 1947 (50 
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U.S.C. 3091 et seq.) or any authorized in-
telligence activities of the United States. 
‘‘(vii) RESCISSION OF ORDER.—An ex-
clusion or removal order issued under this 
subparagraph by an official may be re-
scinded only by the Council.’’; 
(iv) in subparagraph (C), as so redes-
ignated— 
(I) by striking ‘‘subparagraph 
(A)’’ and inserting ‘‘subparagraph 
(A)(iii) or (B)(iii)’’; 
(II) by striking ‘‘this subpara-
graph’’ and inserting ‘‘subparagraph 
(A)(iii) or (B)(iii)’’; and 
(III) by striking ‘‘, except’’ and 
all that follows before the period at 
the end; 
(v) in subparagraph (D), as so redes-
ignated— 
(I) by striking ‘‘this paragraph’’ 
and inserting ‘‘subparagraph (A)(iii) 
or (B)(iii)’’; and 
(II) by striking ‘‘help’’; 
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(vi) in subparagraph (E), as so redes-
ignated, by striking ‘‘this paragraph’’ and 
inserting ‘‘subparagraph (A)’’; and 
(vii) by adding after subparagraph 
(F), as so redesignated, the following: 
‘‘(G) EFFECTIVE DATE OF ORDERS.—The 
effective date of an order issued under this 
paragraph may not be more than 365 days 
after the order is issued.’’; 
(H) in paragraph (7), as so redesignated, 
by striking ‘‘paragraph (5)(A)’’ and inserting 
‘‘subparagraph (A) or (B) of paragraph (6)’’; 
and 
(I) in paragraph (8), as so redesignated, 
by striking ‘‘paragraph (5)’’ and inserting 
‘‘paragraph (6)’’; 
(4) in subsection (e), by inserting ‘‘the Chief 
Data Officers Council,’’ before ‘‘the Chief Acquisi-
tion’’; and 
(5) in subsection (f)(2), by striking the period 
at the end and inserting ‘‘unless such source is spe-
cifically designated by statute as a covered source of 
concern for the purposes of this subchapter.’’. 
(d) STRATEGIC PLAN.—Section 1324(a) of title 41, 
United States Code, is amended— 
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(1) by inserting ‘‘, and periodically thereafter’’ 
after ‘‘2018’’; 
(2) in the matter preceding paragraph (1), by 
inserting ‘‘acquisition security and’’ before ‘‘supply 
chain risks’’; 
(3) in paragraph (8), by inserting ‘‘acquisition 
security and’’ before ‘‘supply chain risks’’; and 
(4) in paragraph (9)(A), by inserting ‘‘acquisi-
tion security and’’ before ‘‘supply chain risk’’. 
(e) REQUIREMENTS FOR EXECUTIVE AGENCIES.— 
Section 1326 of title 41, United States Code, is amend-
ed— 
(1) in subsection (a)— 
(A) in paragraph (1), by striking ‘‘; and’’ 
and inserting a semicolon; 
(B) in paragraph (2), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(3) providing any information requested by the 
Chairperson of the Council for the purpose of car-
rying out activities of this subchapter, subject to ap-
plicable law or policy on the control and handling of 
classified, sensitive, or proprietary information.’’; 
VerDate Sep 11 2014 
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(2) by striking ‘‘supply chain’’ each place such 
term appears and inserting ‘‘security and supply 
chain’’; and 
(3) in subsection (b)(6), by striking ‘‘supply 
chain’’ and inserting ‘‘security or supply chain’’. 
(f) JUDICIAL PROCEDURE.—Section 1327(b) of title 
41, United States Code, is amended— 
(1) in paragraph (1), by striking ‘‘section 
1323(c)(6)’’ and inserting ‘‘section 1323(c)(7)’’; 
(2) in paragraph (3), by striking ‘‘section 
1323(c)(5)’’ and inserting ‘‘sections 1323(c)(6)’’; 
and 
(3) in paragraph (4), by amending subpara-
graph (B)(i) to read as follows: 
‘‘(i) FILING OF RECORD.—The United 
States shall file with the court an adminis-
trative record, which shall consist of— 
‘‘(I) the information the Council 
relied upon in issuing a designated 
order under 1323(c)(6); and 
‘‘(II) the information that the ap-
propriate 
official 
relied 
upon 
in 
issuing an exclusion or removal order 
under section 1323(c)(6) or a covered 
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procurement 
action 
under 
section 
4713.’’. 
(g) ADDITIONAL PROVISIONS.—Subchapter III of 
chapter 13 of title 41, United States Code, is amended 
by adding at the end the following: 
‘‘§ 1329. Additional provisions 
‘‘(a) COMPLIANCE WITH EXISTING PROHIBITIONS.— 
In implementing this subchapter, the Council shall coordi-
nate, as applicable and practicable, with the head of an 
agency to assist with compliance by the agency with— 
‘‘(1) section 889 of the John S. McCain Na-
tional Defense Authorization Act of 2019 (Public 
Law 115–232; 41 U.S.C. 3901 note); 
‘‘(2) section 5949 of the James M. Inhofe Na-
tional Defense Authorization Act of 2023 (Public 
Law 117–263; 41 U.S.C. 4713 note); and 
‘‘(3) sections 1821 through 1833 of the Amer-
ican Security Drone Act of 2023 (Public Law 118– 
31). 
‘‘(b) UPDATE TO REGULATIONS.—The Federal Ac-
quisition Security Council shall update, within two years 
after the date of the enactment of this section, any regula-
tions of the Council as necessary.’’. 
(h) REALLOCATING EXISTING RESOURCES.—Section 
5949(l)(1) of the James M. Inhofe National Defense Au-
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