Page:United States Statutes at Large Volume 100 Part 4.djvu/770

 100 STAT. 3341-165

PUBLIC LAW 99-591—OCT. 30, 1986

"(c) WAIVER.—(1)(A) If the Secretary of Defense determines under paragraph (2) that entering into a contract with a firm or a subsidiary of a firm described in subsection (b) is not inconsistent with the national security objectives of the United States, the head of an agency may enter into a contract with such firm or subsidiary after the date on which such head of an agency submits to Congress a report on the contract. "(B) A report under subparagraph (A) shall include the following: "(i) The identity of the foreign government concerned, "(ii) The nature of the contract. "(iii) The extent of ownership or control of the firm or subsidiary concerned (or, if appropriate in the case of a subsidiary, of the firm that owns the subsidiary) by the foreign government concerned or the agency or instrumentality of such foreign government. "(iv) The reasons for entering into the contract. "(C) After the head of an agency submits a report to Congress under subparagraph (A) with respect to a firm or a subsidiary, such head of an agency is not required to submit a report before entering into any subsequent contract with such firm or subsidiary unless the information required to be included in such report under subparagraph (B) has materially changed since the submission of the previous report. "(2) Upon the request of the head of an agency, the Secretary of Defense shall determine whether entering into a contract with a firm or subsidiary described in subsection (b) is inconsistent with the national security objectives of the United States. In making such a determination, the Secretary of Defense shall consider the following: "(A) The relationship of the United States with the foreign government concerned. "(B) The obligations of the United States under international agreements. "(C) The extent of the ownership or control of the firm or subsidiary (or, if appropriate in the case of a subsidiary, of the firm that owns the subsidiary) by the foreign government or an agent or instrumentality of the foreign government. "(D) Whether payments made, or information made available, to the firm or subsidiary under the contract could be used for purposes hostile to the interests of the United States. "(d) APPLICABILITY.—This section does not apply to a contract for an amount less than $100,000. "(2) This section does not apply to the Coast Guard or the National Aeronautics and Space Administration. "(e) REGULATIONS.—The Secretary of Defense, after consultation with the Secretary of State, shall prescribe regulations to carry out this section. Such regulations shall include a definition of the term 'significant interest'.". (2) The table of sections at the beginning of such chapter is amended by adding after the item relating to section 2326 (as added by section 908) the following new item: "2327. Contracts: consideration of national security objectives.". (b) CONFORMING AMENDMENT.—Section 503 of the Military Retire-

ment Reform Act of 1986 (Public Law 99-348; 100 Stat. 708) is repealed. (c) EFFECTIVE DATE.—Section 2327 of title 10, United States Code (as added by subsection (a)(D), shall apply to contracts entered into

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