((a)) ** .—** The Assistant Secretary of the Air Force for Space Acquisition and Integration, acting as the service acquisition executive for the Air Force for space systems and programs, shall maintain a list of contractors with a history of poor performance on space procurement contracts.

((b)) ** .—**

((1)) The Assistant Secretary shall place a contractor, which may consist of the entire contracting entity or a specific division of the contracting entity, on the watch list based on a determination made under paragraph (2).

((2))

((A)) In considering whether to place a contractor on the watch list, the Assistant Secretary shall determine whether there is evidence of any of the following:

((i)) Poor performance on one or more space procurement contracts, or award fee scores below 50 percent.

((ii)) Inadequate management, operational or financial controls, or resources.

((iii)) Inadequate security controls or resources, including unremediated vulnerabilities arising from foreign ownership, control, or influence.

((iv)) Any other failure of controls or performance of a nature so serious or compelling as to warrant placement of the contractor on the watch list.

((B)) If the Assistant Secretary determines, based on evidence described in any of clauses (i) through (iv) of subparagraph (A), that the ability of a contractor to responsibly perform is meaningfully impaired, the Assistant Secretary shall place the contractor on the watch list.

((C)) The Assistant Secretary shall establish written policies for the consideration of contractors for placement on the watch list, including policies that require that—

((i)) contractors proposed for placement on the watch list shall be provided with notice and an opportunity to respond;

((ii)) the basis for a final determination placing a contractor on the watch list shall be documented in writing; and

((iii)) at the request of a contractor, the contractor shall be removed from the watch list if the Assistant Secretary determines that there is evidence that the issue resulting in placement on the list has been satisfactorily remediated.

((c)) ** .—**

((1)) The Assistant Secretary may not solicit an offer from, award a contract to, consent to a subcontract with, execute a grant, cooperative agreement, or other transaction with, or exercise an option on any space procurement contract with, an entity included on the watch list unless the Assistant Secretary makes a written determination that there is a compelling reason to do so.

((2)) Not later than 10 days after the Assistant Secretary makes a determination under paragraph (1), the Assistant Secretary shall notify the congressional defense committees and the Interagency Committee on Debarment and Suspension constituted under sections 4 and 5 of Executive Order 12549 (51 Fed. Reg. 6370; relating to debarment and suspension) of the determination.

((d)) ** .—** The Assistant Secretary may delegate the authority to make a determination under subsection (b)(2)(B) or subsection (c)(1) only if the following criteria are met:

((1)) The delegation is to the suspension and debarment official of the Air Force.

((2)) The delegation is made on a case-by-case basis.

((3)) Not later than seven days after the date on which such determination is made, the Assistant Secretary notifies the congressional defense committees of the delegation.

((e)) ** .—** Nothing in this section shall be construed as preventing the suspension or debarment of a contractor, but inclusion on the watch list shall not be construed as a punitive measure or de facto suspension or debarment of a contractor.

((f)) ** .—** In this section:

((1)) The term “contract” includes a grant, cooperative agreement, or other transaction.

((2)) The term “contractor” means any individual or entity that enters into a contract.

((3)) The term “watch list” means the watch list maintained under subsection (a).