Page:United States Statutes at Large Volume 100 Part 5.djvu/470

 100 STAT. 3944

PUBLIC LAW 99-661—NOV. 14, 1986

"2406. Availability of cost and pricing records.".

10 USC 2406 note.

10 USC 2406 "°**-

(b) APPLICABILITY OF SECTION.—Section 2406 of title 10, United States Code, as amended by subsection (a), shall apply with respect to— (1) contracts entered into on or after the date of the enactment of this Act; and (2) contracts entered into before such date that are not completed before such date. (c) DEADLINE FOR REGULATIONS.—The Secretary of Defense shall prescribe regulations as required by section 2406(e) of title 10, United States Code (as amended by subsection (a)(1)), not later than the end of the 180-day period beginning on the date of the enactment of this Act. PART E—MISCELLANEOUS

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SEC. 951. CONTRACTING WITH FIRMS OWNED OR CONTROLLED BY

GOVERNMENTS THAT SUPPORT TERRORISM (a) CONSIDERATION OF NATIONAL INTERESTS WITH RESPECT TO DEFENSE CONTRACTS.—(1) Chapter 137 of title 10, United States

Code, is amended by adding after the item relating to section 2326 (as added by section 908) the following new section: 10 USC 2327.

"§ 2327. Contracts: consideration of national security objectives "(a) DISCLOSURE OF OWNERSHIP OR CONTROL BY A FOREIGN GOVERN-

MENT.—The head of an agency shall require a firm or a subsidiary of a firm that submits a bid or proposal in response to a solicitation issued by the Department of Defense to disclose in that bid or proposal any significant interest in such firm or subsidiary (or, in the case of a subsidiary, in the firm that owns the subsidiary) that is owned or controlled (whether directly or indirectly) by a foreign government or an agent or instrumentality of a foreign government, if such foreign government is the government of a country that the Secretary of State determines under section 6(j)(l)(A) of the Export Administration Act of 1979 (50 U.S.C. 24050")(1)(A)) has repeatedly provided support for acts of international terrorism. "(b) PROHIBITION ON ENTERING INTO CONTRACTS AGAINST THE INTERESTS OF THE UNITED STATES.—Except as provided in subsection

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(c), the head of an agency may not enter into a contract with a firm or a subsidiary of a firm if— "(1) a foreign government owns or controls (whether directly or indirectly) a significant interest in such firm or subsidiary (or, in the case of a subsidiary, in the firm that owns the subsidiary); and "(2) such foreign government is the government of a country that the Secretary of State determines under section 6(j)(l)(A) of the Export Administration Act of 1979 (50 U.S.C. 2405(j)(l)(A)) has repeatedly provided support for acts of international terrorism. "(c) WAIVER.—dXA) 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:

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