Sponsors (2)
Introduced April 9, 2025 by John Cornyn · Last progress April 9, 2025
The bill tightens DoD ICT supply-chain security and transparency by requiring OEM/authorized-reseller sourcing and annual waiver reporting, but does so at the cost of higher procurement expenses, added administrative burden, and potential operational delays if supply or authorization is constrained.
Military personnel and DoD networks will face lower risk from compromised or counterfeit ICT components because DoD systems must use OEM- or authorized-reseller-sourced hardware, improving mission security and resilience.
Taxpayers and Congress gain greater oversight and transparency of DoD supply-chain waivers because DoD must report annually on waivers and steps taken to reduce them.
Government contractors and small businesses get procurement guidance to become authorized resellers, easing compliance and helping preserve supplier options over time.
Taxpayers and contractors may face higher costs and less competition because restricting purchases to OEMs or authorized resellers can raise prices for DoD procurement.
Military operations and federal programs could face delays or operational risk if short supply or slow authorization forces waivers for mission‑critical equipment while DoD issues notices and implements mitigations.
DoD contracting offices and vendors may incur extra administrative burden and compliance costs because of new reporting and notice requirements, potentially slowing procurement.
Based on analysis of 2 sections of legislative text.
Requires DoD to prohibit procurement or use of covered ICT hardware unless sourced from the OEM or an authorized reseller, with limited waivers and reporting.
Requires the Department of Defense to ban buying, renewing contracts for, or using covered information and communications technology (ICT) hardware products and components unless they come directly from the original equipment manufacturer (OEM) or an authorized reseller. The Secretary of Defense may grant narrow waivers for scientifically valid research or to avoid harming mission-critical operations, but each waiver must be justified in a notice to congressional defense committees and include security mitigations and a plan to prevent future waivers. Also directs the Department of Defense to publish procurement guidance to help firms become authorized resellers, and to provide annual unclassified reports (with optional classified annexes) about waivers and steps taken to reduce them for a total reporting period of six years. The measure does not provide new funding.