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Back to DHNDAA 2009 Contents

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

Subtitle G Governmentwide Acquisition Improvements

DHNDAA Section

House Armed Services Report 110-652

SEC. 1233. REVIEW OF SECURITY RISKS OF PARTICIPATION BY DEFENSE CONTRACTORS IN CERTAIN SPACE ACTIVITIES OF THE PEOPLE'S REPUBLIC OF CHINA.

(a) Review Required- The Secretary of Defense shall conduct a review to determine whether there are any security risks associated with participation by covered contractors in certain space activities of the People's Republic of China.

(b) Matters to Be Included- The review required under subsection (a) shall include, at a minimum, a review of the following:

(1) Whether there have been any incidents with respect to which a determination has been made that an improper disclosure of covered information by a covered contractor has occurred during the five-year period ending on the date of the enactment of this Act.

(2) The increase, if any, in the number of covered contractors expected to occur during the 5-year period beginning on the date of the enactment of this Act.

(3) The extent to which the policies and procedures of the Department of Defense are sufficient to protect against the improper disclosure of covered information by a covered contractor during the 5-year period beginning on the date of the enactment of this Act.

(4) The Secretary's conclusions regarding awards of contracts by the Department of Defense to covered contractors after the date of the enactment of this Act.

(5) Any other matters that the Secretary determines to be appropriate to include in the review.

(c) Cooperation From Other Departments and Agencies- The Secretary of State, the Director of National Intelligence, and the head of any other United States Government department or agency shall cooperate in a complete and timely manner to provide the Secretary of Defense with data and other information necessary for the Secretary of Defense to carry out the review required under subsection (a).

(d) Report-

(1) IN GENERAL- Not later than March 1, 2009, the Secretary of Defense shall submit to the congressional defense committees a report on the review required under subsection (a).

(2) FORM- The report required under this subsection shall include a summary in unclassified form to the maximum extent practicable.

(e) Definitions- In this section:

(1) CERTAIN SPACE ACTIVITIES OF THE PEOPLE'S REPUBLIC OF CHINA- The term `certain space activities of the People's Republic of China' means--

(A) the development or manufacture of satellites for launch from the People's Republic of China; and

(B) the launch of satellites from the People's Republic of China.

(2) COVERED CONTRACTOR- The term `covered contractor' means a contractor of the Department of Defense, and any subcontractor (at any tier) of the contractor, that--

(A) has access to covered information; and

(B) participates, or is part of a joint venture that participates, or whose parent, sister, subsidiary, or affiliate company participates, in certain space activities in the People's Republic of China.

(3) COVERED INFORMATION- The term `covered information' means classified information and sensitive controlled unclassified information obtained under contracts (or subcontracts of such contracts) of the Department of Defense.

SECTION 1223--STUDY OF LIMITATION ON CLASSIFIED CONTRACTS WITH FOREIGN COMPANIES ENGAGED IN SPACE BUSINESS WITH CHINA

This section would require the Secretary of Defense to study the implications of prohibiting the Department of Defense from obligating or expending funds in fiscal year 2009, or any subsequent fiscal year, on contracts for classified work with a foreign-owned company that is engaged with the People's Republic of China in the development, manufacture, or launch of certain satellites. The prohibition would apply to companies engaged in work involving satellites which are not covered by the International Traffic in Arms Regulations (ITAR). This section would allow the Secretary of Defense to waive the prohibition on the use of funds if doing so is necessary to protect national security.

This section would require that the Secretary's study be completed within 60 days of the date of enactment of this Act. This section would further authorize and require the Secretary to apply the prohibition on funding if the Secretary determines after performing the study that doing so promotes the national interest. This section would also require the Secretary to submit a report to the Senate Committee on Armed Services and the House Committee on Armed Services on the results of the study and the Secretary's determination.

 

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