To require agencies to use information and communications technology products obtained from original equipment manufacturers or authorized resellers, and for other purposes.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
This bill prohibits federal agencies from purchasing information and communications technology (ICT) products—such as computer hardware, components, software, and firmware—from any source other than original equipment manufacturers (OEMs) or their authorized resellers. The goal is to prevent counterfeit or compromised IT equipment from entering government supply chains, which could pose security risks.
Who Benefits and How
Original equipment manufacturers (like Dell, HP, Cisco, Apple) and their authorized distribution partners benefit significantly because federal agencies must buy directly from them or their approved channels. This eliminates competition from gray market sellers and unauthorized resellers, protecting OEM market share and profit margins in the lucrative federal IT procurement market.
Who Bears the Burden and How
Unauthorized IT resellers and gray market distributors are excluded from federal contracts entirely, losing access to government sales. Federal agencies face reduced procurement flexibility and potentially higher costs, as they cannot shop for better prices from non-authorized sources. The Office of Management and Budget must track and report on waivers, adding administrative burden.
Key Provisions
- Agencies prohibited from procuring ICT products from sources other than OEMs or authorized resellers
- Waivers available for national security, scientific research, or mission-critical functions
- Annual reporting to Congress on waivers granted for 6 years
- Agencies must help non-authorized resellers become authorized if they want to sell to government
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Requires federal agencies to procure information and communications technology (ICT) products only from original equipment manufacturers (OEMs) or authorized resellers to enhance supply chain security and product authenticity
Key Policy Areas
Federal Procurement, Information Technology, Cybersecurity, Supply Chain Security
Primary Purpose
Requires federal agencies to procure information and communications technology (ICT) products only from original equipment manufacturers (OEMs) or authorized resellers to enhance supply chain security and product authenticity
Policy Domains
Section 2 - Agency use of IT products
Identified Gains
Contextual inference, no direct clause citation- Original equipment manufacturers (OEMs)
- Authorized IT resellers and distributors
- Federal cybersecurity posture
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Unauthorized IT resellers and gray market distributors
- Federal agencies (reduced procurement flexibility)
- Office of Management and Budget (reporting requirements)
Contextual inference, no direct clause citation
Sponsors
Legislative Progress
ReportedReported by Mr. Peters, with an amendment
Mr. Cornyn (for himself, Mr. Peters, and Mr. Ossoff) introduced …
Mr. Cornyn (for himself and Mr. Peters) introduced the following …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Authorized IT resellers and distributors with OEM agreements, Unauthorized IT resellers and gray market distributors, Unauthorized IT resellers seeking to become authorized
Positive-direction: Authorized IT resellers and distributors with OEM agreements
Negative-direction: Unauthorized IT resellers and gray market distributors, Unauthorized IT resellers seeking to become authorized
Federal agencies procuring IT equipment, Office of Management and Budget
Original equipment manufacturers (OEMs) of IT hardware and components
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "agency_head"
- → Head of each federal agency
- "omb_director"
- → Director of the Office of Management and Budget
- "appropriate_committees"
- → Senate Homeland Security and Governmental Affairs Committee; House Oversight and Accountability Committee
Key Definitions
Terms defined in this bill
Has the meaning given in section 3502 of title 44, United States Code (federal executive agencies)
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
An information and communications technology end-use hardware product or component, including software and firmware that comprise the end-use hardware product; excludes standalone software and hardware where ICT is embedded but not the principal function
Has the meaning given in section 4713 of title 41, USC, including definitions in the Federal Acquisition Regulation
A company that manufactures a covered product that it designed from self-sourced or purchased components and sells under its own name
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology