Peters and Rounds Introduce Bipartisan Bill to Better Address Supply Chain Threats from Foreign Adversaries ➞

WASHINGTON, DC -U.S. Senators Gary Peters (D-MI) and Mike Rounds (R-SD) introduced bipartisan legislation to address security threats to our nation's supply chain by improving the effectiveness of the Federal Acquisition Security Council (FASC) and increasing its oversight responsibilities. The federal government currently depends on technologies that are often made by companies with connections to foreign adversaries, like the Chinese government, for many products, particularly those related to communications and cybersecurity. Particularly concerning, foreign adversary governments often use private sector companies to hide or obfuscate their connections with the products, allowing potential security vulnerabilities to enter protected supply chains. Although the FASC is charged with evaluating risks in our information and communications technology supply chains and making recommendations to block the use of technologies or products that pose a threat to our national security, since its creation in 2018, the FASC has not issued a single order despite a multitude of ongoing supply chain risks. This bipartisan bill would make key changes to the membership of the FASC and strengthen its ability to review potential threats by allowing Congress to require investigations.

"Our foreign adversaries will take every opportunity to exploit the vulnerabilities in our supply chain for their own advantage, and that includes through the communications and cybersecurity technologies our federal government purchases," said Senator Peters. "This bipartisan bill will help improve the security of our supply chain and ensure our nation's critical information technology is better protected against potential threats."

"Protecting our federal supply chain is a matter of national security," said Senator Rounds. "This legislation equips the Federal Acquisition Security Council with the tools it needs to eliminate the risk posed by foreign adversaries like China who seek to infiltrate our critical infrastructure."

The Federal Acquisition Security Council Improvement Act would improve the FASC by transferring leadership responsibility from the Office of Management and Budget (OMB) to the Office of the National Cyber Director (ONCD), which is better positioned to lead efforts to address national security threats in our information and communications technology supply chain. The bill also expands FASC membership to include the State Department and the ONCD, which was created after the FASC was established.

The legislation also creates a process for Congress to issue designated orders that direct the FASC to investigate sources of concerns that Congress deems a potential threat to national security. Once the FASC investigates and if they find evidence of security concerns with an entity, they would be authorized to issue orders requiring a product or company to be banned from purchase by the federal government. Given the FASC's failure to issue orders, Congress stepped in and banned telecommunications equipment manufactured by Huawei and Chinese-made semiconductors. Congress is also working to ban certain electric grid equipment manufactured in China and Chinese manufactured connected vehicles from areas of concern such as military bases. This provision will create stronger congressional oversight over the FASC's work to ensure it is tackling its mission of limiting foreign influence and addressing the threats posed by foreign-owned or controlled products or sources in the American supply chain.

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