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

Subtitle C--Amendments to General Contracting Authorities, Procedures, and Limitations

P. L. 111-

Joint Explanatory Statement of the Committees on Armed Services of the U. S. Senate and House of Representatives on H. R. 6523

From H. R. 6523

SEC. 822. REPEAL OF REQUIREMENT FOR CERTAIN PROCUREMENTS FROM FIRMS IN THE SMALL ARMS PRODUCTION INDUSTRIAL BASE.

(a) Repeal- Section 2473 of title 10, United States Code, is repealed.

(b) Clerical Amendment- The table of sections at the beginning of chapter 146 of such title is amended by striking the item relating to section 2473.

From H.R. 5136:  National Defense Authorization Act for Fiscal Year 2011

SEC. 812. SMALL ARMS PRODUCTION INDUSTRIAL BASE MATTERS.

Section 2473 of title 10, United States Code, is amended--

(1) in subsection (b), by striking `subsection (d)' and inserting `subsection (c)';

(2) by striking subsection (c);

(3) by redesignating subsections (d) and (e) as subsections (c) and (d), respectively; and

(4) by adding at the end the following new subsection (e):

`(e) Competitive Procedures- If the Secretary determines under subsection (a) that the requirement to procure property or services described in subsection (b) for the Department of Defense from a firm in the small arms production industrial base is not necessary to preserve such industrial base, any such procurement shall be awarded through the use of competitive procedures that afford such industrial base a fair opportunity to be considered for such procurement.'.

From S. 3454, National Defense Authorization Act for Fiscal Year 2011

SEC. 817. REPEAL OF REQUIREMENT FOR CERTAIN PROCUREMENTS FROM FIRMS IN THE SMALL ARMS PRODUCTION INDUSTRIAL BASE.

(a) Repeal- Section 2473 of title 10, United States Code, is repealed.

(b) Clerical Amendment- The table of sections at the beginning of chapter 146 of such title is amended by striking the item relating to section 2473.

The House bill contained a provision (sec. 812) that would amend section 2473 of title 10, United States Code.

The Senate committee-reported bill contained a provision (sec. 817) that would repeal section 2473 of title 10, United States Code.

The agreement includes the Senate provision.

From H. Rpt. 111-491, accompanying H. R. 5136, the NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2011

SECTION 812--SMALL ARMS PRODUCTION INDUSTRIAL BASE MATTERS

This section would strike subsection (c) of section 2473 of title 10, United States Code, which narrowly defines the small arms production industrial base as consisting of only three manufacturers. This section would also require full and open competition for any small arms parts procurement program.

The committee is concerned about the potential atrophy of the existing qualified military specification producers currently comprising the small arms production industrial base as well as respective vendors' industrial capacity, and believes this could create an undue risk to warfighters in the event a production surge would be needed to meet requirements. The committee recognizes the need to preserve the critical elements of the small arms production industrial base and notes the benefits full and open competition could provide, particularly in the areas of small arms technological innovation and more competitive pricing in small arms and critical small arms parts manufacturing. The committee expects the Secretary of Defense to maintain stewardship of the established small arms production industrial base, which has demonstrated high quality and performance.

From S. Rpt. 111-201, to accompany S. 3454, NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2011

Repeal of requirement for certain procurements from firms in the small arms production industrial base (sec. 817)

The committee recommends a provision that would repeal section 2473 of title 10, United States Code, and eliminate the restriction on the Department of Defense to procure small arms parts only from certain manufacturers.

Section 2473 was the result of an Army Science Board study in 1994 determining that, in order to preserve the domestic small arms industry, weapons parts procurement contracts should be limited to three of the largest manufacturers at that time. The committee understands that the health of the U.S. small arms industrial base has significantly improved over the last 15 years. The committee has consistently supported policies and programs that encourage technological competition, industrial innovation, and competitive pricing. Accordingly, the committee recommends repeal of section 2473 of title 10, United States Code.