10 U.S.C. § 4874: Award of certain contracts to entities controlled by a foreign government: prohibition

A Department of Defense contract or Department of Energy contract under a national security program may not be awarded to an entity controlled by a foreign government if it is necessary for that entity to be given access to information in a proscribed category of information in order to perform the contract. the Secretary concerned determines that the waiver is essential to the national security interests of the United States; or the Secretary concerned determines that the waiver will advance the environmental restoration, remediation, or waste management objectives of the department concerned and will not harm the national security interests of the United States; and the entity to which the contract is awarded is controlled by a foreign government with which the Secretary concerned is authorized to exchange Restricted Data under section 144 c. of the Atomic Energy Act of 1954 ( 42 U.S.C. 2164(c) ). The Secretary concerned shall notify Congress of any decision to grant a waiver under paragraph (1)(B) with respect to a contract. The contract may be awarded only after the end of the 45-day period beginning on the date the notification is received by the committees. any domestic or foreign organization or corporation that is effectively owned or controlled by a foreign government; and any individual acting on behalf of a foreign government, includes special access information; is determined by the Secretary of Defense to include information the disclosure of which to an entity controlled by a foreign government is not in the national security interests of the United States; and is defined in regulations prescribed by the Secretary of Defense for the purposes of this section; and is determined by the Secretary of Energy to include information described in subparagraph (A)(ii); and is defined in regulations prescribed by the Secretary of Energy for the purposes of this section. the Secretary of Defense, with respect to Department of Defense contracts; and the Secretary of Energy, with respect to Department of Energy contracts. Effective October 1, 2020 , a covered NTIB entity operating under a special security agreement pursuant to the National Industrial Security Program shall not be required to obtain a national interest determination as a condition for access to proscribed information. a demonstrated successful record of compliance with the National Industrial Security Program; and previously been approved for access to proscribed information. for which the ultimate parent company and any intermediate parent companies of such subsidiary are located in a country that is part of the national technology and industrial base (as defined in section 2500 of title 10 , United States Code [now 10 U.S.C. 4801 ]); and that is subject to the foreign ownership, control, or influence requirements of the National Industrial Security Program. classified at the level of top secret; communications security information (excluding controlled cryptographic items when un-keyed or utilized with unclassified keys); restricted data (as defined in section 11 of the Atomic Energy Act of 1954 ( 42 U.S.C. 2014 )); special access program information under section 4.3 of Executive Order No. 13526 (75 Fed. Reg. 707; 50 U.S.C. 3161 note) or successor order; or designated as sensitive compartmented information.” The Secretary of Defense, with the concurrence of the Secretary of State and after consultation with the Director of the Information Security Oversight Office, shall review whether organizations whose ownership or majority control is based in a country that is part of the national technology and industrial base should be exempted from one or more of the foreign ownership, control, or influence requirements of the National Industrial Security Program. Under a program established under this subsection, the Secretary, with the concurrence of the Secretary of State and after consultation with the Director of the Information Security Oversight Office, shall maintain a list of organizations owned or controlled by a country that is part of the national technology and industrial base that are eligible for exemption from the requirements described under such subsection. is beneficial to improving collaboration within countries that are a part of the national technology and industrial base; is in the national security interest of the United States; and will not result in a greater risk of the disclosure of classified or sensitive information consistent with the National Industrial Security Program. the date that is 60 days after the Secretary of Defense, in consultation with the Secretary of State and the Director of the Information Security Oversight Office, submits to the appropriate congressional committees a report summarizing the review conducted under subsection (a); and the date that is 30 days after the Secretary of Defense, in consultation with the Secretary of State and the Director of the Information Security Oversight Office, submits to the appropriate congressional committees a written notification of a determination made under paragraph (2), including a discussion of the issues related to the foreign ownership or control of the organization that were considered as part of the determination. The term ‘appropriate congressional committees’ has the meaning given the term in section 301 of title 10 , United States Code. the [sic] term ‘national technology and industrial base’ has the meaning given the term in section 4801 of title 10 , United States Code.”