PROHIBITION ON AWARD OF CERTAIN DEPARTMENT OF DEFENSE AND DEPARTMENT OF ENERGY CONTRACTS TO COMPANIES OWNED BY AN ENTITY CONTROLLED BY A FOREIGN GOVERNMENT.

SEC. 836. PROHIBITION ON AWARD OF CERTAIN DEPARTMENT OF DEFENSE AND DEPARTMENT OF ENERGY CONTRACTS TO COMPANIES OWNED BY AN ENTITY CONTROLLED BY A FOREIGN GOVERNMENT. (a) In General.—(1) Subchapter V of chapter 148 of title 10, United States Code, as added by section 4202(b), is further amended by adding at the end the following new section: “§ 2536. Prohibition on award of certain Department of Defense and Department of Energy contracts to companies owned by an entity controlled by a foreign government. “(a) In General.—A Department of Defense contract or Department of Energy contract under a national security program may not be awarded to a company owned by an entity controlled by 106 STAT. 2463a foreign government if it is necessary for that company to be given access to information in a proscribed category of information in order to perform the contract. “(b) Waiver Authority.—The Secretary concerned may waive the application of subsection (a) to a contract award if the Secretary concerned determines that the waiver is essential to the national security interests of the United States. “(c) Definitions.—In this section: “(1) The term ‘entity controlled by a foreign government’ includes— “(A) any domestic or foreign organization or corporation that is effectively owned or controlled by a foreign government; and “(B) any individual acting on behalf of a foreign government, as determined by the Secretary concerned. “(2) The term ‘proscribed category of information’ means a category of information that— “(A) with respect to Department of Defense contracts— “(i) includes special access information; “(ii) is determined by the Secretary of Defense to include information the disclosure of which to an entity controlled by a foreign government is not in the national security interests of the United States; and “(iii) is defined in regulations prescribed by the Secretary of Defense for the purposes of this section; and “(B) with respect to Department of Energy contracts— “(i) is determined by the Secretary of Energy to include information described in subparagraph (A)(ii); and “(ii) is defined in regulations prescribed by the Secretary of Energy for the purposes of this section. “(3) The term ‘Secretary concerned’ means— “(A) the Secretary of Defense, with respect to Department of Defense contracts; and “(B) the Secretary of Energy, with respect to Department of Energy contracts.”. (2) The table of sections at the beginning of such subchapter is amended by adding at the end the following new item: “2536. Prohibition on award of certain Department of Defense and Department of Energy contracts to companies owned by an entity controlled by a foreign government.”. (b) Effective Date.—Section 2536 of title 10, United States Code, as added by subsection (a), shall apply with respect to contracts entered into after the expiration of the 90-day period beginning on the date of the enactment of this Act.