Executive Order Bars Waivers for Non-Domestic Defense Materials Starting Jan 1 2027
The order binds the Secretary of War, military department secretaries, and all defense contractors, with key compliance deadlines within 180 days.
Effective Jan 1, 2027, the Secretary of War and the Secretaries of the military departments must cease issuing waivers under 10 U.S.C. 4872(c)(1) for acquisition of covered materials, except as provided in subsection (b) of Section 2. The restriction applies to all prime contractors and subcontractors supplying the Department of War.
Waivers may be issued only if the contractor submits a formal mitigation plan that (i) identifies the non-compliant source, (ii) documents exhaustive efforts to obtain a compliant source or shows non-availability, (iii) describes steps to remove the non-compliant material, and (iv) establishes a strict projected timeline. The Secretary or his designee must accept the plan before a waiver can be granted.
Within 180 days, the Secretary must provide the Assistant to the President for National Security Affairs a list of available actions and contractual remedies for non-compliance, and develop policy and implementation guidance requiring all tiers of contractors to map critical supply chains for Department of War acquisitions. Implementing regulations must be promulgated within 90 days of completing the mapping guidance.
Contractors must submit an indentured Bill of Materials tracing all components to raw-material origins, establish written vetting procedures covering financial, foreign ownership, control, or influence, and manufacturing risks, and, subject to an exception, prohibit use of unreliable foreign suppliers. After vetting, contractors must notify the Department of War of significant risks within 15 days, submit a confidential corrective action plan within 45 days, and provide a closeout report upon completion.
The Secretary must, also within 180 days, identify all acquisitions that support national security and require contractors relying on unreliable foreign suppliers to qualify and use alternative sources as soon as possible. Failure to qualify an alternative source constitutes grounds for the Secretary to consider suspending or terminating task orders, declining contract options, or terminating the contract.