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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle A--Acquisition Policy and Management

P. L. 111-

House Conference Report 111-288

    (a) In General.--In the case of a product or service to be acquired in support of military or stability operations in Afghanistan for which the Secretary of Defense makes a determination described in subsection (b), the Secretary may conduct a procurement in which--

    (1) competition is limited to products or services that are from one or more countries along a major route of supply to Afghanistan; or

    (2) a preference is provided for products or services that are from one or more countries along a major route of supply to Afghanistan.

    (b) Determination.--A determination described in this subsection is a determination by the Secretary that--

    (1) the product or service concerned is to be used--

    (A) in the country that is the source of the product or service;

    (B) in the course of efforts by the United States and the NATO International Security Assistance Force to ship goods to Afghanistan in support of military or stability operations in Afghanistan; or

    (C) by the military forces, police, or other security personnel of Afghanistan;

    (2) it is in the national security interest of the United States to limit competition or provide a preference as described in subsection (a) because such limitation or preference is necessary--

    (A) to reduce overall United States transportation costs and risks in shipping goods in support of military or stability operations in Afghanistan;

    (B) to encourage countries along a major route of supply to Afghanistan to cooperate in expanding supply routes through their territory in support of military or stability operations in Afghanistan; or

    (C) to help develop more robust and enduring routes of supply to Afghanistan; and

    (3) limiting competition or providing a preference as described in subsection (a) will not adversely affect--

    (A) military or stability operations in Afghanistan; or

    (B) the United States industrial base.

    (c) Products and Services From a Country Along a Major Route of Supply to Afghanistan.--For the purposes of this section:

    (1) A product is from a country along a major route of supply to Afghanistan if it is mined, produced, or manufactured in a covered country.

    (2) A service is from a country along a major route of supply to Afghanistan if it is performed in a covered country by citizens or permanent resident aliens of a covered country.

    (d) Covered Country Defined.--In this section, the term ``covered country'' means Georgia, Kyrgyzstan, Pakistan, Armenia, Azerbaijan, Kazakhstan, Tajikistan, Uzbekistan, or Turkmenistan.

    (e) Construction With Other Authority.--The authority provided in subsection (a) is in addition to the authority set forth in section 886 of the National Defense Authorization Act for Fiscal Year 2008 (Public Law 110-181; 122 Stat. 266; 10 U.S.C. 2302 note).

    (f) Termination of Authority.--The Secretary of Defense may not exercise the authority provided in subsection (a) on or after the date occurring three years after the date of the enactment of this Act.

    (g) Report on Authority.--Not later than April 1, 2010, the Secretary of Defense shall submit to the congressional defense committees a report on the use of the authority provided in subsection (a). The report shall address, at a minimum, the following:

    (1) The number of determinations made by the Secretary pursuant to subsection (b).

    (2) A description of the products and services acquired using the authority.

    (3) The extent to which the use of the authority has met the objectives of subparagraph (A), (B), or (C) of subsection (b)(2).

    (4) A list of the countries providing products or services as a result of a determination made pursuant to subsection (b).

    (5) Any recommended modifications to the authority.

   The House bill contained a provision (sec. 801) that would authorize the Secretary of Defense to establish a preference for the acquisition of certain products and services produced in countries along a major route of supply to Afghanistan.

   The Senate amendment contained a similar provision (sec. 831).

   The Senate recedes with an amendment clarifying the scope of the Secretary's authority.

House Report 111-166 - NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2010

This section would authorize the Secretary of Defense to limit competition or provide a preference to sources in one or more countries along a major supply route to the Islamic Republic of Afghanistan. The authority would be available upon a determination by the Secretary that the product or service being acquired was being used only by personnel that ship goods, or provide support for shipping goods, for use in operations in Afghanistan; that the Secretary determined that use of the authority would either: reduce overall U.S. transportation costs and risks in shipping goods to Afghanistan; encourage countries along a major route of supply to Afghanistan to expand that supply route; or help develop more robust and enduring routes of supply to Afghanistan; and that the use of the authority would not adversely affect operations in Afghanistan or the United States industrial base. This section would define a country along a major route of supply to Afghanistan as including Georgia, the Kyrgyz Republic, the Islamic Republic of Pakistan, the Republic of Armenia, the Republic of Azerbaijan, the Republic of Kazakhstan, the Republic of Tajikistan, the Republic of Uzbekistan, or Turkmenistan. This section would terminate the authority 18 months after the date of enactment of this Act. This section would require the Secretary of Defense to submit a report by April 1, 2010, on the use of this authority, including: (1) the number of determinations made by the Secretary of Defense; (2) a description of the products and services acquired under this authority; (3) the extent to which the use of the authority conforms to the objectives of this section; (4) the list of countries providing products or services; and (5) any recommended modifications to the authority.

Senate Report 111-035 - NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2010

The committee recommends a provision that would authorize the Secretary of Defense to establish a preference for the acquisition of products and services that are produced in Central Asia, Pakistan, and the South Caucasus. The provision would require that to exercise the authority the Secretary must determine that: (1) the product or service is to be used by military forces, police, or other security personnel of Afghanistan; or (2) the preference is in the U.S. national interest because it is necessary to improve the local market and transportation infrastructure or encourage the states of Central Asia, Pakistan, or the South Caucasus to cooperate in expanding supply routes to Afghanistan, and will not adversely affect U.S. military operations or the U.S. industrial base.