H. R. 7327—18 
determines that an urgent national security interest requires the 
immediate exercise of the authority provided in subsection (a), 
the head of the agency— 
‘‘(1) may, to the extent necessary to address such national 
security interest, and subject to the conditions in paragraph 
(2)— 
‘‘(A) temporarily delay the notice required by sub-
section (b)(2); 
‘‘(B) make the determination required by subsection 
(b)(3), regardless of whether the notice required by sub-
section (b)(2) has been provided or whether the notified 
source has submitted any information in response to such 
notice; 
‘‘(C) temporarily delay the notice required by sub-
section (b)(4); and 
‘‘(D) exercise the authority provided in subsection (a) 
in accordance with such determination within 60 calendar 
days after the day the determination is made; and 
‘‘(2) shall take actions necessary to comply with all require-
ments of subsection (b) as soon as practicable after addressing 
the urgent national security interest, including— 
‘‘(A) providing the notice required by subsection (b)(2); 
‘‘(B) promptly considering any information submitted 
by the source in response to such notice, and making any 
appropriate modifications to the determination based on 
such information; 
‘‘(C) providing the notice required by subsection (b)(4), 
including a description of the urgent national security 
interest, and any modifications to the determination made 
in accordance with subparagraph (B); and 
‘‘(D) providing notice to the appropriate congressional 
committees and leadership within 7 calendar days of the 
covered procurement actions taken under this section. 
‘‘(d) CONFIDENTIALITY.—The notice required by subsection (b)(2) 
shall be kept confidential until a determination with respect to 
a covered procurement action has been made pursuant to subsection 
(b)(3). 
‘‘(e) DELEGATION.—The head of an executive agency may not 
delegate the authority provided in subsection (a) or the responsi-
bility identified in subsection (f) to an official below the level one 
level below the Deputy Secretary or Principal Deputy Director. 
‘‘(f) ANNUAL REVIEW
OF DETERMINATIONS.—The head of an 
executive agency shall conduct an annual review of all determina-
tions made by such head under subsection (b) and promptly amend 
any covered procurement action as appropriate. 
‘‘(g) REGULATIONS.—The Federal Acquisition Regulatory Council 
shall prescribe such regulations as may be necessary to carry out 
this section. 
‘‘(h) REPORTS REQUIRED.—Not less frequently than annually, 
the head of each executive agency that exercised the authority 
provided in subsection (a) or (c) during the preceding 12-month 
period shall submit to the appropriate congressional committees 
and leadership a report summarizing the actions taken by the 
agency under this section during that 12-month period. 
‘‘(i) RULE
OF CONSTRUCTION.—Nothing in this section shall 
be construed to authorize the head of an executive agency to carry 
out a covered procurement action based solely on the fact of foreign
H. R. 7327—19 
ownership of a potential procurement source that is otherwise quali-
fied to enter into procurement contracts with the Federal Govern-
ment. 
‘‘(j) TERMINATION.—The authority provided under subsection 
(a) shall terminate on the date that is 5 years after the date 
of the enactment of the Federal Acquisition Supply Chain Security 
Act of 2018. 
‘‘(k) DEFINITIONS.—In this section: 
‘‘(1) 
APPROPRIATE
CONGRESSIONAL
COMMITTEES
AND 
LEADERSHIP.—The term ‘appropriate congressional committees 
and leadership’ means— 
‘‘(A) the Committee on Homeland Security and Govern-
mental Affairs, the Committee on the Judiciary, the Com-
mittee on Appropriations, the Committee on Armed Serv-
ices, the Committee on Commerce, Science, and Transpor-
tation, the Select Committee on Intelligence, and the 
majority and minority leader of the Senate; and 
‘‘(B) the Committee on Oversight and Government 
Reform, the Committee on the Judiciary, the Committee 
on Appropriations, the Committee on Homeland Security, 
the Committee on Armed Services, the Committee on 
Energy and Commerce, the Permanent Select Committee 
on Intelligence, and the Speaker and minority leader of 
the House of Representatives. 
‘‘(2) COVERED ARTICLE.—The term ‘covered article’ means— 
‘‘(A) information technology, as defined in section 11101 
of title 40, including cloud computing services of all types; 
‘‘(B) telecommunications equipment or telecommuni-
cations service, as those terms are defined in section 3 
of the Communications Act of 1934 (47 U.S.C. 153); 
‘‘(C) the processing of information on a Federal or 
non-Federal information system, subject to the require-
ments of the Controlled Unclassified Information program; 
or 
‘‘(D) hardware, systems, devices, software, or services 
that include embedded or incidental information tech-
nology. 
‘‘(3) COVERED PROCUREMENT.—The term ‘covered procure-
ment’ means— 
‘‘(A) a source selection for a covered article involving 
either a performance specification, as provided in sub-
section (a)(3)(B) of section 3306 of this title, or an evalua-
tion factor, as provided in subsection (b)(1)(A) of such sec-
tion, relating to a supply chain risk, or where supply chain 
risk considerations are included in the agency’s determina-
tion of whether a source is a responsible source as defined 
in section 113 of this title; 
‘‘(B) the consideration of proposals for and issuance 
of a task or delivery order for a covered article, as provided 
in section 4106(d)(3) of this title, where the task or delivery 
order contract includes a contract clause establishing a 
requirement relating to a supply chain risk; 
‘‘(C) any contract action involving a contract for a 
covered article where the contract includes a clause estab-
lishing requirements relating to a supply chain risk; or 
‘‘(D) any other procurement in a category of procure-
ments determined appropriate by the Federal Acquisition
H. R. 7327—20 
Regulatory Council, with the advice of the Federal Acquisi-
tion Security Council. 
‘‘(4) COVERED PROCUREMENT ACTION.—The term ‘covered 
procurement action’ means any of the following actions, if the 
action takes place in the course of conducting a covered procure-
ment: 
‘‘(A) The exclusion of a source that fails to meet quali-
fication requirements established under section 3311 of 
this title for the purpose of reducing supply chain risk 
in the acquisition or use of covered articles. 
‘‘(B) The exclusion of a source that fails to achieve 
an acceptable rating with regard to an evaluation factor 
providing for the consideration of supply chain risk in 
the evaluation of proposals for the award of a contract 
or the issuance of a task or delivery order. 
‘‘(C) The determination that a source is not a respon-
sible source as defined in section 113 of this title based 
on considerations of supply chain risk. 
‘‘(D) The decision to withhold consent for a contractor 
to subcontract with a particular source or to direct a con-
tractor to exclude a particular source from consideration 
for a subcontract under the contract. 
‘‘(5) INFORMATION
AND
COMMUNICATIONS
TECHNOLOGY.— 
The term ‘information and communications technology’ means— 
‘‘(A) information technology, as defined in section 11101 
of title 40; 
‘‘(B) information systems, as defined in section 3502 
of title 44; and 
‘‘(C) telecommunications equipment and telecommuni-
cations services, as those terms are defined in section 3 
of the Communications Act of 1934 (47 U.S.C. 153). 
‘‘(6) SUPPLY
CHAIN
RISK.—The term ‘supply chain risk’ 
means the risk that any person may sabotage, maliciously 
introduce unwanted function, extract data, or otherwise 
manipulate the design, integrity, manufacturing, production, 
distribution, installation, operation, maintenance, disposition, 
or retirement of covered articles so as to surveil, deny, disrupt, 
or otherwise manipulate the function, use, or operation of the 
covered articles or information stored or transmitted on the 
covered articles. 
‘‘(7) 
EXECUTIVE
AGENCY.—Notwithstanding 
section 
3101(c)(1), this section applies to the Department of Defense, 
the Coast Guard, and the National Aeronautics and Space 
Administration.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of chapter 47 of such title is amended by adding at the 
end the following new item: 
‘‘4713. Authorities relating to mitigating supply chain risks in the procurement of 
covered articles.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on the date that is 90 days after the date of 
the enactment of this Act and shall apply to contracts that are 
awarded before, on, or after that date. 
SEC. 204. FEDERAL INFORMATION SECURITY MODERNIZATION ACT. 
(a) IN GENERAL.—Title 44, United States Code, is amended—
H. R. 7327—21 
(1) in section 3553(a)(5), by inserting ‘‘and section 1326 
of title 41’’ after ‘‘compliance with the requirements of this 
subchapter’’; and 
(2) in section 3554(a)(1)(B)— 
(A) by inserting ‘‘, subchapter III of chapter 13 of 
title 41,’’ after ‘‘complying with the requirements of this 
subchapter’’; 
(B) in clause (iv), by striking ‘‘; and’’ and inserting 
a semicolon; and 
(C) by adding at the end the following new clause: 
‘‘(vi) responsibilities relating to assessing and 
avoiding, mitigating, transferring, or accepting supply 
chain risks under section 1326 of title 41, and com-
plying with exclusion and removal orders issued under 
section 1323 of such title; and’’. 
(b) RULE OF CONSTRUCTION.—Nothing in this title shall be 
construed to alter or impede any authority or responsibility under 
section 3553 of title 44, United States Code. 
SEC. 205. EFFECTIVE DATE. 
This title shall take effect on the date that is 90 days after 
the date of the enactment of this Act. 
Speaker of the House of Representatives. 
Vice President of the United States and
President of the Senate.