The proposed legislation, titled the "Federal Acquisition Security Council Improvement Act of 2024," seeks to amend title 41 of the United States Code. It is designed to enhance the operations of the Federal Acquisition Security Council (FASC) by making significant changes to the definitions of crucial terms, the structure, and functions of the council, as well as introducing procedural updates to manage security risks in federal acquisitions, particularly those relating to national security.

General Summary

This bill introduces several amendments to the existing statutory framework governing the Federal Acquisition Security Council. It clarifies definitions and updates the membership composition of the council. Additionally, it proposes the establishment of a new Program Office within the Office of the National Cyber Director to support council activities. The bill places a stronger emphasis on managing national security risks associated with federal acquisitions. It also outlines the processes for issuing certain types of orders related to sources of potential security threats.

Significant Issues

The bill raises several notable concerns:

• Ambiguity in Definitions: The definitions for "source of concern" and "covered source of concern" are not clearly laid out, which may lead to confusion and inconsistent application in identifying threats to national security.

• Broad Powers and Limited Oversight: Sections 1322 and 1323 of the bill grant expansive authority to the FASC, allowing it to issue "designated orders" and "recommended orders" with potentially inadequate oversight. This could lead to concerns about accountability and abuse of power.

• Lack of Compliance Metrics: The bill does not specify clear metrics or parameters for assessing compliance with its provisions, potentially leading to difficulties in evaluating its effectiveness and ensuring consistent implementation.

• Excessive Discretion: The language describing the council's powers, such as "in the Council's sole and unreviewable discretion," suggests a significant concentration of unchecked authority, which could undermine transparency and accountability.

• Resource Allocation Changes: The shift of responsibilities from the Office of Management and Budget to the Office of the National Cyber Director lacks explanation, raising questions about the rationale, potential logistical impacts, and resource adequacy.

Impact on the Public

Broadly, this bill might impact the public by potentially enhancing the government's ability to protect against national security threats posed by certain suppliers and products involved in federal procurements. Improved definition and management of acquisition-related risks could indirectly contribute to national stability and security.

Impact on Specific Stakeholders

• Government Agencies: Agencies may face challenges associated with adjusting to new oversight and compliance requirements established by the FASC. They might also experience resource strains if adequate support is not provided.

• Technology and Procurement Industries: Businesses operating in the supply chain could face increased scrutiny and potentially burdensome compliance obligations. Clear criteria for "sources of concern" could impact market dynamics by excluding certain providers from federal contracts.

• The Public Sector Employees: Individuals working within the Office of the National Cyber Director or the FASC may experience a shift in responsibilities and require additional training to manage expanded roles effectively.

• Congress and Oversight Bodies: These entities might need to develop mechanisms to ensure the FASC remains accountable, especially given the broad powers granted to the council in the bill.

Overall, while the bill aims to bolster national security, careful consideration and potential revisions may be needed to address the outlined issues, ensuring the legislation meets its objectives without unintended negative repercussions.