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

This EO directs the Secretary of War and the Secretaries of the military departments to cease issuing waivers under 10 U.S.C. 4872(c)(1) for acquisition of covered materials beginning January 1, 2027, except where a prime contractor or subcontractor submits an accepted mitigation plan for removing non-compliant material from its supply chains. It further directs the Secretary of War, within 180 days, to develop guidance requiring contractors at all tiers to map critical supply chains, submit indentured Bills of Materials, vet suppliers for financial, foreign ownership, and manufacturing risks, and avoid "unreliable foreign supplier" sources, and to initiate regulatory action requiring contractors to qualify alternative sources. The Secretary must report to the Assistant to the President for National Security Affairs every 6 months until January 1, 2028, and the order exempts Project Vault and U.S.-financed foreign critical mineral projects from its restrictions.

Prime contractors and subcontractors seeking waivers to Submit a formal mitigation plan to the Secretary of War identifying the non-compliant covered material source, documenting exhaustive efforts to acquire compliant material, describing steps to remove the non-compliant material from supply chains, and establishing a strict implementation timeline, in order to obtain a waiver under 10 U.S.C. 4872(c)(1) or (e) (unclear). Prime contractors and subcontractors at any tier on covered Department of War acquisitions to Submit to the Department of War a complete indentured Bill of Materials tracing all components, parts, equipment, software, and materials back to the origin of raw materials, pursuant to forthcoming regulations (unclear). Prime contractors and subcontractors at any tier on covered Department of War acquisitions to Establish and implement written procedures to proactively vet all suppliers and subcontractors supporting the critical supply chain for financial, foreign ownership/control/influence, and manufacturing and supply risks, and refrain from utilizing covered material supplied by an unreliable foreign supplier, pursuant to forthcoming regulations (unclear). Contractors subject to the forthcoming supply chain regulations to Notify the Department of War of any significant supply chain risks identified by vetting activities (Within 15 days of completing vetting activities). Contractors subject to the forthcoming supply chain regulations to Submit a written, confidential corrective action plan detailing implemented mitigations and a strict projected implementation timeline (Within 45 days of completing vetting activities). Contractors subject to the forthcoming supply chain regulations to Submit a closeout report upon completing the corrective action plan, and track active mitigation actions until closure (Upon completion of the corrective action plan). Contractors delivering Department of War acquisitions identified by the Secretary as supporting national security to Qualify and utilize an alternative source for material or components supplied by an unreliable foreign supplier in identified national security acquisitions, except where no alternative source is available; failure to do so may result in suspension or termination of task orders, non-exercise of contract options, or contract termination (As soon as possible, consistent with law, safety, mission requirements, and existing contract requirements).

No known legal challenges.