The National Defense Authorization Act (NDAA) for fiscal year 2024 was signed into law late last year, and the security industry is examining the implications of the latest appropriations for the federal government’s annual defense funding.
There were hundreds of new provisions in H.R. 2670 and numerous changes to the acquisition policy, according to the Security Industry Association, Silver Spring, Md. The Act has expanded and includes provisions applicable to Artificial Intelligence (A.I.), drones, cybersecurity and supply chain issues related to China and Russia, and conflicts of interest for consulting services provided to the U.S. Department of Defense (DOD).
Approved annually, the NDAA primarily authorizes appropriations and sets policy requirements for the DOD, U.S. Department of Energy national security programs, U.S. Department of State activities, the intelligence community and other defense activities. NDAA continues to evolve since first signed into law in 2018. The FY 2024 appropriations approved more than $870 billion in funding.
NDAA expands with technology
A.I. has become a hot-button issue for businesses across the country, and it will continue to be developed in the future for national security and defense activities. In Section 350, the U.S. Navy has been designated to develop and implement strategies for the possible use of A.I. and automation in shipyards. Establishing plans, strategies and procedures for the use of A.I. will be part of a governing council established by DOD to oversee the Chief Digital and Artificial Intelligence Office—Section 1521. A Chief Artificial Intelligence Officer position will be created by the U.S. Department of State to advise on A.I.-pertinent matters (Section 6303).
In 2019, the NDAA included Section 889, a prohibition on federal agencies and federal grant recipients from procuring certain Chinese telecommunications and video surveillance equipment as part of the Federal Acquisition Regulation. Stopping the use of foreign technologies from adversaries including China and Russia in defense and national security continues to be paramount. Section 805 includes a provision, slated to take effect in June 2026, that prohibits the DOD from receiving goods, services or technologies from entities that have been listed on the annual Federal Register as “companies of concern.”
Companies working in a consultative manner with the federal government and agencies under Section 812 will be required to provide new certifications and meet other mandates to continue these relationships. Before engaging in a consulting services contract, companies will be required to certify that their company and their affiliates do not carry any contracts with the governments of Russia, China or any country identified as providing support for international terrorism.
The American Security Drone Act of 2023 prohibits the federal government and executive agencies from buying unmanned aircraft systems (UAS) manufactured or assembled by any country listed and included as a covered foreign entity detailed within Sections 1821-1833. The Office of Management and Budget, the U.S. Department of Homeland Security, the U.S. Department of Justice and the National Institute of Standards and Technology will create formal policy for UAS purchases, with those subsequent provisions slated to take effect in December 2025.
Cybersecurity initiatives of government and critical infrastructure networks in Section 1513 include a requirement for the DOD to establish a pilot program allowing the National Security Agency Cybersecurity Collaboration Center to team up with semiconductor manufacturers to improve the cybersecurity of the semiconductor supply chain.
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