HR2765-119

What This Bill Does

The SAFE Supply Chains Act is a defense procurement security bill for information and communications technology end-use hardware, including software and firmware embedded in that hardware. One year after enactment, DoD may not procure, obtain, renew, or use a covered product supplied by anyone other than the original equipment manufacturer or an authorized reseller. The Secretary of Defense may waive the restriction only for scientifically valid research or to avoid jeopardizing mission-critical functions, and must notify the armed services committees with justification, security mitigations, a plan to avoid future waivers, and a declaration that the product is not from an entity under foreign-adversary influence or control. DoD must issue guidance on becoming an authorized reseller and report annually for six years on waiver use and waiver-reduction actions.

Who Benefits and How

Original equipment manufacturers benefit because DoD procurement is directed toward OEM-sourced covered products. Authorized resellers benefit because their status becomes the safe channel for DoD ICT hardware purchases. Defense cybersecurity officials benefit from stronger controls against counterfeit, gray-market, or foreign-adversary-influenced ICT products. Congressional armed services committees benefit from waiver notices and annual reporting on noncompliant purchases.

Who Bears the Burden and How

Unauthorized ICT resellers lose access to covered DoD hardware procurement unless they become authorized resellers. DoD contracting officers must verify OEM or authorized-reseller status, process waivers, and follow new guidance. Defense contractors using covered products must trace supply chains and avoid nonauthorized reseller channels. The Secretary of Defense must submit waiver justifications, security mitigations, reseller guidance, and annual reports without new appropriations.

Key Provisions

• Bars DoD from buying, renewing, obtaining, or using covered ICT hardware from non-OEM and nonauthorized reseller sources.
• Allows waivers only for scientifically valid research or mission-critical functions.
• Requires waiver notices to Congress with justification, mitigations, future compliance plans, and foreign-adversary declarations.
• Directs DoD to issue guidance on becoming an authorized reseller.
• Requires annual waiver reports for six years and provides no additional authorization of appropriations.