Federal procurement restrictions would cover certain optical transceivers

The bill would apply federal procurement restrictions to covered optical transceivers and set rules for applying them. Covered transceivers include those made or supplied by InnoLight, Eoptolink, their related companies, certain entities tied to a foreign country of concern, and products containing those entities’ parts, software, or firmware. The text says the restrictions may not prevent agencies from procuring covered transceivers for systems that are not critical. Regulations must not rely only on vendor authentication features that block a non-covered transceiver solely because someone other than the host-equipment maker supplies it. The restrictions would take effect five years after enactment. The Federal Acquisition Regulatory Council would update related rules within three years.

The Commerce Secretary would study transceiver supply and risks, develop a supply strategy, and give the results to the Federal Acquisition Security Council. The work would examine domestic and allied production capacity, risks in federal systems, and risks in federal contractors’ and subcontractors’ supply chains, including non-federal systems. The Secretary would coordinate with defense, homeland security, intelligence, and energy officials, and use earlier analyses as much as practicable. The analysis, assessments, and strategy would be due within 180 days after enactment.

The Federal Acquisition Security Council would recommend ways to reduce transceiver supply risks and report on its work. The recommendations would address supply-chain risks related to federal acquisition of optical transceivers. The Council would consult federal officials and engage private and other non-government stakeholders. Its recommendations would weigh critical-system security, access to commercial technology, and risks in non-federal supply chains. Recommendations would be due within two years after enactment. Starting one year after enactment, the Council would report on them annually for ten years.