INTERIM NATIONAL SECURITY WAIVERS FOR SUPPLY CHAIN ILLUMINATION EFFORTS.

SEC. 833. INTERIM NATIONAL SECURITY WAIVERS FOR SUPPLY CHAIN ILLUMINATION EFFORTS. (a) Eligibility for Interim National Security Waiver.— (1) In general.—If a contractor, through the use of supply chain illumination efforts, discovers a noncompliant item in a supply chain and promptly discloses that discovery to the program manager responsible for such supply chain, the contractor shall be eligible for a waiver described in subsection (b) to deliver an end item subject to the requirements of this section. (2) Disclosures.—A disclosure described in paragraph (1) may include a disclosure resulting from supply chain illumination efforts conducted by the contractor, a subcontractor, or by a third-party entity acting on behalf of the contractor or subcontractor to increase supply chain transparency. Discoveries of non-compliance by the United States Government is not a disclosure described under paragraph (1). (b) Interim National Security Waiver.— (1) In general.—The Secretary of Defense or the Secretary concerned (as defined in section 101 of title 10, United States Code) may issue an interim national security waiver under this section to allow a contractor to— (A) accept delivery of an end item that contains a noncompliant item if the program manager determines the noncompliant item does not represent a security, safety, or flight risk; and (B) make payment for the delivery of the end item. (2) Delegation.—The authority to issue a waiver under paragraph (1) may be delegated— (A) to the service acquisition executive of the military department responsible for the acquisition program concerned; or (B) if the end item is used in acquisition programs of more than one military department, to the Deputy Secretary of Defense or the Under Secretary of Defense for Acquisition and Sustainment. (c) Requirements for Interim National Security Waivers.— (1) Written determination.—An interim national security waiver issued under this section shall be include written determination with the following: (A) The preliminary facts and circumstances regarding the identified noncompliant item and the likely cause for noncompliance. (B) The types of end items to which the waiver applies, including any additional items currently being evaluated for potential noncompliance with statutes listed in subsection (g). (C) A determination that any identified noncompliant items in an end item to which the waiver applies and any additional item being evaluated for potential noncompliance do not represent a security, safety, or flight risk. (D) An assessment of program risk due to the acceptance and use of an end item that contains a noncompliant item to be procured under the waiver. (2) Submission to congress.—A written determination under this subsection shall be submitted to the congressional defense committees not later than five days after the date on which a waiver is issued for the end item that is the subject of such determination. (d) Contractor Responsibility.—A contractor receiving a waiver under this section shall develop and implement a corrective plan to ensure future compliance and demonstrate procurement of the noncompliant item was neither willful nor knowing, as determined by the program manager described in subsection (a). With respect to future deliveries of an end item for which a waiver was granted under this section, the contractor shall use reasonably expedient means to qualify an alternative compliant supplier, where available, for noncompliant items contained in such end item. (e) Termination; Applicability.—The authority to issue an interim national security waiver under this section shall expire on January 1, 2028. A waiver issued before such date shall apply with respect to any contract for procurement of an end item entered into one or before such date. (f) Briefings.—Not later than April 1, 2026, and April 1, 2027, the Under Secretary of Defense for Acquisition and Sustainment shall provide to the Committees on Armed Services of the Senate and House of Representatives a briefing on waivers issued under this section and corrective action plans of contractors to ensure future compliance with existing authorities. (g) Noncompliant Item Defined.—In this section, the term “noncompliant item” means an item covered by one or more of the following provisions of law: (1) Section 4863 of title 10, United States Code, relating to a requirement to buy strategic materials critical to national security from American sources. (2) Section 4872 of title 10, United States Code, relating to a prohibition on acquisition of sensitive materials from non-allied foreign nations. (3) Section 4873 of title 10, United States Code, relating to additional requirements pertaining to printed circuit boards. (4) Section 1211 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 10 U.S.C. 4651note prec.), relating to a prohibition on procurements from Chinese military companies. (5) Section 805 of the National Defense Authorization Act for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. 4651note prec.), relating to a prohibition on procurements related to entities identified as Chinese military companies operating in the United States. (6) Section 154 of the National Defense Authorization Act for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. 4651note prec.), relating to a prohibition on availability of funds for procurement of certain batteries. (7) Section 244 of the National Defense Authorization Act for Fiscal Year 2024 (Public Law 118-31; 10 U.S.C. 4651note prec.), relating to a limitation on sourcing chemical materials for munitions from certain countries.