(a) Annual reports
(1) In general
Not later than March 1, 2028, and annually thereafter until 2032, the Secretary of Defense shall submit to the appropriate congressional committees an unclassified report with a classified annex that assesses, during the year preceding the date of the report, the extent to which the supply chains for biotechnology equipment and services obtained or funded by the Department of Defense through covered transactions contain critical supply dependencies.
(2) Report contents
The unclassified report required under paragraph (1) shall, for biotechnology equipment and services described in such paragraph—
describe the supply chains for such biotechnology equipment and services, including an analysis of critical supply dependencies for such supply chains and the overall vulnerability of such supply chains to geopolitical risk stemming from critical supply dependencies;
identify the value of such biotechnology equipment and services, both in absolute numbers and as a percentage of the total value of such biotechnology equipment and services, where the supply chain for such biotechnology equipment or service contained at least one critical supply dependency;
list the types of such biotechnology equipment or services with critical supply dependencies in defense industrial base supply chains that, if compromised, would cause significant potential disruption to military readiness; and
identify the top five percent of covered transactions for biotechnology equipment and services, as measured by the total expected value over the life of the transaction for biotechnology equipment or services obtained or funded by the Department of Defense for which the supply chains contain at least one critical supply dependency.
(3) Annex contents
The classified annex required under paragraph (1) shall, for biotechnology equipment and services described in paragraph (1)—
identify any covered foreign entities analyzed in the report that the Secretary of Defense has recommended or is considering recommending to the Office of Management and Budget for designation as a biotechnology company of concern to inform that recommendation;
describe any additional legislative authorities or resource requirements necessary to adequately assess the vulnerability of supply chains for biotechnology equipment and services that contributes to the defense industrial base, including funding, personnel, data access, and technical infrastructure; and
elaborate as necessary on the contents of the unclassified report.
(b) Definitions
In this section:
The term appropriate congressional committees means—
the Committee on Armed Services of the House of Representatives; and
the Committee on Armed Services of the Senate.
The terms biotechnology company of concern , biotechnology equipment or service , and foreign adversary have the meaning givens, respectively, in section 851 of the National Defense Authorization Act for Fiscal Year 2026 ( Public Law 119–60 ).
The term covered foreign entity means an entity including any subsidiary thereof, organized under the laws of a foreign country if either the principal place of business of such entity is in a foreign adversary or the equity securities of the entity are primarily traded on one or more exchanges based in a foreign adversary.
The term covered transaction means any Department of Defense contract, subcontract, cooperative agreement, grant, or other transaction with a value greater than $10,000,000.
The term critical supply dependency means a step in a supply chain for a biotechnology equipment or service characterized by a limited supplier base consisting entirely or almost entirely of covered foreign entities, such that disruption from a single covered foreign entity or a small set of covered foreign entities is likely to materially impair the availability of functionally interchangeable biotechnology equipment or services.