Securing America's Defense Supply Chains and Ensuring Domestic Acquisition of Critical Materials

What it does

• •Prohibits the Department of War from issuing waivers for non-compliant covered materials under 10 U.S.C. 4872 starting January 1, 2027, except when contractors submit and the Secretary accepts a formal mitigation plan identifying the non-compliant source, documenting exhaustive efforts to find compliant alternatives, and establishing a timeline for removal.
• •Requires all prime contractors and subcontractors to map and submit complete bills of materials tracing supply chains from raw materials to finished products, establish written vetting procedures for suppliers and subcontractors, and prohibit use of materials from unreliable foreign suppliers.
• •Mandates contractors to complete supply chain vetting within specified timeframes, notify the Department of War of significant risks within 15 days, submit confidential corrective action plans within 45 days, and implement mitigation actions to address identified vulnerabilities.
• •Directs the Secretary to identify existing acquisitions relying on unreliable foreign suppliers and require contractors to qualify alternative domestic sources, with contractor failure to do so constituting grounds for contract action.

Why it matters

• •The order aims to strengthen military supply chain resilience against physical, cyber, and economic threats by reducing reliance on materials from geopolitical adversaries and ensuring critical defense materials are sourced domestically or from allied nations.
• •By requiring comprehensive supply chain mapping and risk assessment using tools including artificial intelligence, the Department of War can identify national security vulnerabilities, bottlenecks, and single points of failure in defense procurement.

Who is affected

• •Defense contractors and subcontractors at all tiers supplying the Department of War with materials, components, equipment, and software for national security-related acquisitions.
• •Small businesses, non-traditional defense companies, and new entrant firms are specifically noted as entities the implementing regulations shall attempt not to unduly burden.

What happens next

The Secretary of War must develop policy and implementation guidance within 180 days and promulgate implementing regulations within 90 days thereafter; the Secretary must also initiate regulatory action within 180 days to identify acquisitions relying on unreliable foreign suppliers and require qualification of alternative sources.