A tie to an entity on one of eight named lists is a ground for denial
What the document says“has a security risk connecting the small business concern to an entity, including any affiliates of the entity, or individual on-- ``(i) the UFLPA Entity List maintained by the Department of Homeland Security;”
Subsection (a)(1)(C)(vi) adds a new subparagraph (D) to the paragraph of subsection (g) that lists grounds for denial, and subsection (a)(2)(C)(vi) adds a matching subparagraph to subsection (o). The new ground reaches a connection to an entity, including any of its affiliates, or to an individual on any of eight lists: the UFLPA Entity List kept by the Department of Homeland Security, the Non-SDN Chinese Military-Industrial Complex Companies List kept by the Treasury Department's Office of Foreign Assets Control, the Section 889 Prohibition List established under section 889 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115-232) and kept by the Defense Department, the list of Chinese Military companies required under section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (10 U.S.C. 113 note) and kept by the Defense Department, the Military End User List and the Entity List kept by the Commerce Department's Bureau of Industry and Security, the List of Equipment and Services kept by the Federal Communications Commission, and the Withhold Release Orders and Findings List kept by U.S. Customs and Border Protection. The version written into subsection (o) opens with the words 'has a foreign risk' where the version written into subsection (g) says 'has a security risk'.
What the document actually says“has a security risk connecting the small business concern to an entity, including any affiliates of the entity, or individual on-- ``(i) the UFLPA Entity List maintained by the Department of Homeland Security;”
A firm can be turned down if it is tied to a listed group. The tie can be to the group or to a branch of it. The tie can also be to a person on a list.
Eight lists are named. Other parts of the government keep them. They name groups and people the United States has flagged. One list is about forced labor. Some are about arms and the Chinese army. One is about phone gear.
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