S1362-119

1. Short title This Act may be cited as the Securing America’s Federal Equipment Supply Chains Act or the SAFE Supply Chains Act.

2. Agency use of IT products In this section: The term authorized reseller means a reseller, after market manufacturer, supplier, or distributor of a covered product with a direct or prime contractual arrangement with, or the express written authority of, the original equipment manufacturer of the covered product to manufacture, buy, stock, repackage, sell, resell, repair, service, otherwise support, or distribute the covered product. The term covered product— means an information and communications technology end-use hardware product or component, including software and firmware that comprise the end-use hardware product or component; and does not include— other software; or an end-use hardware product— in which there is embedded information and communications technology; and the principal function of which is not the creation, manipulation, storage, display, receipt, or transmission of electronic data and information. The term end-use product means a product ready for use by the maintainer, integrator, or end user of the product. The term information and communications technology— has the meaning given the term in section 4713 of title 41, United States Code; and includes information and communications technologies covered by definitions contained in the Federal Acquisition Regulation, including definitions added after the date of the enactment of this Act by the Federal Acquisition Regulatory Council pursuant to notice and comment. The term original equipment manufacturer means a company that manufactures a covered product that the company— designed from self-sourced or purchased components; and sells under the name of the company. Subject to subsection (c) and notwithstanding sections 1905 through 1907 of title 41, United States Code, the Secretary of Defense may not procure or obtain, renew a contract to procure or obtain, or use a covered product that is procured from an entity other than— an original equipment manufacturer; or an authorized reseller. Upon notice to congressional defense committees, the Secretary of Defense may waive the prohibition under subsection (b) with respect to a covered product if the Secretary determines that procuring, obtaining, or using the covered product is necessary— for the purpose of scientifically valid research (as defined in section 102 the Education Sciences Reform Act of 2002 (20 U.S.C. 9501)); or to avoid jeopardizing the performance of mission critical functions. The notice described in paragraph (1)— shall— specify, with respect to the waiver under paragraph (1)— the justification for the waiver; any security mitigations that have been implemented; and with respect to a waiver that necessitates a security mitigation, the plan of action and milestones to avoid future waivers for subsequent similar purchases; provide a declaration that covered product is not being purchased from an entity that is under the influence or control of a foreign adversary; and be submitted in an unclassified form; and may include a classified annex. With respect to a waiver for the purpose of research, as described in paragraph (1)(A), the waiver shall be effective for the duration of the research identified in the waiver. The Secretary of Defense shall establish procurement guidance to provide assistance to entities that are not eligible for procurements of covered products due to the prohibition under subsection (b) on the process of becoming an authorized reseller for covered products. Not later than 1 year after the date of enactment of this Act, and annually thereafter until the date that is 6 years after the date of enactment of this Act, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report that provides— the number and types of covered products for which a waiver under subsection (c)(1) was granted during the 1-year period preceding the date of the submission of the report; the legal authority under which each waiver described in subparagraph (A) was granted, such as whether the waiver was granted pursuant to subparagraph (A) or (B) of subsection (c)(1); and any actions taken by the Secretary to reduce the number of waivers issued by the Department of Defense under subsection (c)(1) with the goal of achieving full compliance with the prohibition under subsection (b). Each report submitted under this subsection— shall be submitted in unclassified form; and may include a classified annex that contains the information described in paragraph (1)(B). No additional amounts are authorized to be appropriated for the purpose of carrying out this Act. This section shall take effect on the date that is 1 year after the date of enactment of this Act.