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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle H — Other Matters

P. L. 115-

House Conference Report. 115-874

(a) Process And Procedures.—The Secretary of Defense shall develop a process and procedures for limiting foreign access to technology through contracts, grants, cooperative agreements, or other transactions, when such limitation is in the interest of national security.

(b) Report.—Not later than September 1, 2019, the Secretary shall submit to the congressional defense committees a report on the process and procedures developed pursuant to subsection (a). The report shall include the following elements:

(1) An assessment of the Department of Defense's ability through existing authorities to limit foreign access to technology through contracts, grants, cooperative agreements, or other transactions.

(2) An assessment of the Department’s need to implement a process to limit foreign access to technology.

(3) Recommendations for penalties for violations of access, including intellectual property forfeiture.

(c) Considerations.—The process and procedures developed under subsection (a) shall be consistent with all existing law, including laws relating to trade agreements, individual protections, export controls, and the National Technology and Industrial Base (NTIB).

The Senate amendment contained a provision (sec. 820) that would authorize the Under Secretary of Defense for Research and Engineering to include in the terms of any contract provisions that would limit access by select persons or organizations to sensitive technology, and authorize the potential forfeit of intellectual property rights if these terms were violated.

The House bill contained no similar provision.

The House recedes with an amendment that would remove the authority to include these limitations in the terms of any contract and instead directs the Secretary of Defense to develop a process and procedures for limiting access to technology through contracts, grants, cooperative agreements, or other transactions, when such limitation is in the interest of national security.