To clarify an exception to conflict of interest requirements applicable to contracts for systems engineering and technical assistance functions.

1. Inserts “for special security agreements” after “to those required”

   InsertsPage 63, line 11Printed page

   In S. 454 · Reported to Senate

   (2) require that a contract for the performance of systems engineering and technical assistance (SETA) functions with regard to a major weapon system contains a provision prohibiting the contractor or any affiliate of the contractor from having a direct financial interest in the development or construction of the weapon system or any component thereof;

   (3) provide for an exception to the requirement in paragraph (2) for an affiliate that is separated from the contractor by structural mechanisms, approved by the Secretary of Defense, that are similar to those required [inserted: for special security agreements ]under rules governing foreign ownership, control, or influence over United States companies that have access to classified information, including, at a minimum--

   (A) establishment of the affiliate as a separate business entity, geographically separated from related entities, with its own employees and management and restrictions on transfers for personnel;

   Original wording

   On page 63, line 11, insert “for special security agreements” after “to those required”.

Read automatically from the Congressional Record. Check the original before relying on it.

As printed