Defense Authorization Conferees Refuse to Blacklist Iran-Syria Nonproliferation Act Violators

Special thanks to my colleague Travis Sharp for sending this information he dug up in the Conference Report of the Fiscal Year 2008 Defense Authorization Act.

On December 7, House and Senate conferees agreed on the conference report for the Fiscal Year 2008 Defense Authorization bill. The bill is likely to pass before Congress is scheduled to adjourn for the year on December 21.

The House version of the FY ‘08 Defense Authorization contained a provision which would have prohibited the Department of Defense from procuring goods or services from companies in violation of the Iran-Syria Nonproliferation Act (Public Law 106–178; 50 U.S.C. 1701).

However, the FY ’08 Defense Authorization Act conference report refused to blacklist violators of the Iran-Syria Nonproliferation. According to the Conference report:

Prohibition on procurement from companies in violation of the Iran and Syria Nonproliferation Act (pp. 966)

The House bill contained a provision (sec. 805) that would prohibit the use of funds for the procurement of goods or services at a prime contract or subcontract level from any source that is owned or controlled by an entity that is subject to sanctions for violations of the Iran and Syria Nonproliferation Act (Public Law 106–178). The Senate amendment contained no similar provision. The House recedes.


The text of the original House version of the FY ’08 bill that was stripped from the Conference Report reads:

SEC. 805. PROHIBITION ON PROCUREMENT FROM COMPANIES IN VIOLATION OF THE IRAN AND SYRIA NONPROLIFERATION ACT. (pp. 393-94)

(a) PROHIBITION.—Except as provided in subsection (c), funds appropriated or otherwise available to the Department of Defense may not be used for the procurement of goods or services from a source subject to sanctions for violations of the Iran and Syria Nonproliferation Act (Public Law 106–178; 50 U.S.C. 1701 note) or from any source that is owned or controlled by a sanctioned entity.

(b) CONTRACTS COVERED.—This section applies to prime contracts and subcontracts at any tier under such contracts.

(c) EXCEPTION.—

(1) IN GENERAL.—Subsection (a) does not apply in any case in which the Secretary of Defense determines that there is a compelling reason to solicit an offer from, award a contract or subcontract to, or extend a contract or subcontract with a source described in that subsection. The exception in the preceding sentence may not be used if the same or reasonably equivalent products or services are available from a non-sanctioned source.

(2) NOTICE TO CONGRESS.—The Secretary shall transmit to the Committees on Armed Services of the Senate and the House of Representatives a notice of any determination made under paragraph (1) at the time of the determination.