; (2) the term Department means the Department of Homeland Security; and (3) the term Secretary means the Secretary of Homeland Security. 324. Requirements to buy certain items related to national security interests according to certain criteria (a) Requirement The Secretary shall ensure that any procurement of covered items for a frontline operational component meets the following criteria: (1) To the maximum extent possible, not less than one-third of funds obligated in a specific fiscal year for the procurement of such covered items shall be covered items that are manufactured in part or provided in the United States by entities that qualify as small business concerns (as such term is described under section 3 of the Small Business Act ( 15 U.S.C. 632 )). (2) Each prime contractor, with respect to the procurement of such covered items, shall ensure, to the maximum extent practicable, the following: (A) Each first-tier subcontractor and end item manufacturer complies with the contractor code of business ethics and conduct under section 3509 of title 41, United States Code, and the Federal Acquisition Regulation. (B) Each first-tier subcontractor and end-item manufacturer is in compliance with a standard identified by the Secretary as appropriate for quality, such as ISO 9001:2015 of the International Organization for Standardization. (C) The ability of a first-tier subcontractor to fulfill the terms of the contract is verified. (3) Each supplier of such a covered item with an insignia (such as any patch, badge, or emblem) and each supplier of such an insignia, if such covered item with such insignia or such insignia, as the case may be, is not produced, applied, or assembled in the United States, shall— (A) store such covered item with such insignia or such insignia in a locked area; (B) report any pilferage or theft of such covered item with such insignia or such insignia occurring at any stage before delivery of such covered item with such insignia or such insignia