22 U.S.C. § 9224 (FOREIGN RELATIONS AND INTERCOURSE)
§ 9224. Procurement sanctions
(a) In general
Except as provided in this section, the head of an executive agency may not procure, or enter into any contract for the procurement of, any goods or services from any person designated under section 9214(a) or (g) of this title.
(b) Federal Acquisition Regulation
(1) In general
The Federal Acquisition Regulation issued pursuant to section 1303(a)(1) of title 41 shall be revised to require that each person that is a prospective contractor submit a certification that such person does not engage in any activity described in section 9214(a) or (g) of this title.
(2) Applicability
The revision required under paragraph (1) shall apply with respect to contracts for which solicitations are issued on or after the date that is 90 days after February 18, 2016.
(c) Remedies
(1) Inclusion on list
The Administrator of General Services shall include, on the List of Parties Excluded from Federal Procurement and Nonprocurement Programs maintained by the Administrator under part 9 of the Federal Acquisition Regulation, each person that is debarred, suspended, or proposed for debarment or suspension by the head of an executive agency on the basis of a determination of a false certification under subsection (b).
(2) Contract termination; suspension
If the head of an executive agency determines that a person has submitted a false certification under subsection (b) after the date on which the Federal Acquisition Regulation is revised to implement the requirements of this section, the head of such executive agency shall—
(A) terminate any contract with such person; and
(B) debar or suspend such person from eligibility for Federal contracts for a period of not longer than 2 years.
(3) Applicable procedures
Any debarment or suspension under paragraph (2)(B) shall be subject to the procedures that apply to debarment and suspension under subpart 9.4 of the Federal Acquisition Regulation.
(d) Clarification regarding certain products
The remedies specified in subsection (c) shall not apply with respect to the procurement of any eligible product (as defined in section 2518(4) of title 19 of any foreign country or instrumentality designated under section 2511(b) of title 19.
(e) Rule of construction
Nothing in this subsection may be construed to limit the use of other remedies available to the head of an executive agency or any other official of the Federal Government on the basis of a determination of a false certification under subsection (b).
(f) Executive agency defined
In this section, the term “executive agency” has the meaning given such term in section 133 of title 41.
(Pub. L. 114–122, title II, § 204, Feb. 18, 2016, 130 Stat. 107; Pub. L. 116–92, div. F, title LXXI, § 7122(b)(3), Dec. 20, 2019, 133 Stat. 2248.)
heading: Amendments
text: 2019—Subsecs. (a), (b)(1). Pub. L. 116–92 inserted “or (g)” after “section 9214(a)”.
heading: Assessment and Authority To Terminate or Prohibit Contracts for Procurement From Chinese Companies Providing Support to the Democratic People’s Republic of Korea
text: Pub. L. 115–91, div. A, title VIII, § 888, Dec. 12, 2017, 131 Stat. 1507, provided that:
“(a) Assessment Required.—
“(1) In general.—
The Secretary of Defense, in consultation with the Secretary of State, the Secretary of the Treasury, and the Director of National Intelligence, shall conduct an assessment of trade between the People’s Republic of China and the Democratic People’s Republic of Korea, including elements deemed to be important to United States national security and defense.
“(2) Elements.—
The assessment required by paragraph (1) shall—
“(A) assess the composition of all trade between China and the Democratic People’s Republic of Korea, including trade in goods and services;
“(B) identify whether any Chinese commercial entities that are engaged in such trade materially support illicit activities on the part of North Korea;
“(C) evaluate the extent to which the United States Government procures goods or services from any commercial entity identified under subparagraph (B);
“(D) provide a list of commercial entities identified under subparagraph (B) that provide defense goods or services for the Department of Defense; and
“(E) evaluate the ramifications to United States national security, including any impacts to the defense industrial base, Department of Defense acquisition programs, and Department of Defense logistics or supply chains, of prohibiting procurements from commercial entities listed under subparagraph (D).
“(3) Report.—
Not later than 180 days after the date of the enactment of this Act [Dec. 12, 2017], the Secretary of Defense shall submit to Congress a report on the assessment required by paragraph (1). The report shall be submitted in unclassified form, but may contain a classified annex.
“(b) Authority.—
The Secretary of Defense may terminate existing contracts or prohibit the award of contracts for the procurement of goods or services for the Department of Defense from a Chinese commercial entity included on the list described under subsection (a)(2)(D) based on a determination informed by the assessment required under subsection (a)(1).
“(c) Notification.—
The Secretary of Defense shall submit to the appropriate committees of Congress a notification of, and detailed justification for, any exercise of the authority in subsection (b) not less than 30 days before the date on which the authority is exercised.
“(d) Appropriate Committees of Congress Defined.—
In this section, the term ‘appropriate committees of Congress’ means—
“(1) the Committee on Armed Services and the Committee on Foreign Relations of the Senate; and
“(2) the Committee on Armed Services and the Committee on Foreign Affairs of the House of Representatives.”