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

Subtitle E  — Industrial Base Matters

P. L. 115-

House Conference Report. 115-874

SEC. 844. LIMITATION ON CERTAIN PROCUREMENTS APPLICATION PROCESS.

(a) In General.—Section 2534 of title 10, United States Code, is amended by adding at the end the following new subsections:

“(k) Limitation On Certain Procurements Application Process.—

“(1) IN GENERAL.—The Secretary of Defense shall administer a process to analyze and assess potential items for consideration to be required to be procured from a manufacturer that is part of the national technology and industrial base.

“(2) ELEMENTS.—The application process required under paragraph (1) shall include the following elements:

“(A) The Secretary shall designate an official within the Office of the Secretary of Defense responsible for administration of the limitation on certain procurements application process and associated policy.

“(B) A person or organization that meets the definition of national technology and industrial base under section 2500(1) of this title shall have the opportunity to apply for status as an item required to be procured from a manufacturer that is part of the national technology and industrial base. The application shall include, at a minimum, the following information:

“(i) Information demonstrating the applicant meets the criteria of a manufacturer in the national technology and industrial base under section 2500(1) of this title.

“(ii) For each item the applicant seeks to be required to be procured from a manufacturer that is part of the national technology and industrial base, the applicant shall include the following information:

“(I) The extent to which such item has commercial applications.

“(II) The number of such items to be procured by current programs of record.

“(III) The criticality of such item to a military unit’s mission accomplishment.

“(IV) The estimated cost and other considerations of reconstituting the manufacturing capability of such item, if not maintained in the national technology and industrial base.

“(V) National security regulations or restrictions imposed on such item that may not be imposed on a non-national technology and industrial base competitor.

“(VI) Non-national security-related Federal, State, and local government regulations imposed on such item that may not be imposed on a non-national technology and industrial base competitor.

“(VII) The extent to which such item is fielded in current programs of record.

“(VIII) The extent to which cost and pricing data for such item has been deemed fair and reasonable.

“(3) CONSIDERATION OF APPLICATIONS.—

“(A) RESPONSIBILITY OF DESIGNATED OFFICIAL.—The official designated pursuant to paragraph (2)(A) shall be responsible for providing complete applications submitted pursuant to this subsection to the appropriate component acquisition executive for consideration not later than 15 days after receipt of such application.

“(B) REVIEW.—Not later than 120 days after receiving a complete application, the component acquisition executive shall review such application, make a determination, and return the application to the official designated pursuant to paragraph (2)(A).

“(C) ELEMENTS OF DETERMINATION.—The determination required under subparagraph (B) shall, for each item proposed pursuant to paragraph (2)(B)(ii)—

“(i) recommend inclusion under this section;

“(ii) recommend inclusion under this section with further modifications; or

“(iii) not recommend inclusion under this section.

“(D) JUSTIFICATION.—The determination required under subparagraph (B) shall also include the rationale and justification for the determination.

“(4) RECOMMENDATIONS FOR LEGISLATION.—For applications recommended under subsection (3), the official designated pursuant to paragraph (2)(A) shall be responsible for preparing a legislative proposal for consideration by the Secretary.”.

(b) Effective Date.—This section and the amendments made by this section shall take effect one year after the date of the enactment of this Act.

Limitation on certain procurements application process (sec. 844)

The Senate amendment contained a provision (sec. 861) that would establish a process for consideration of products to be included within the scope of the National Technology and Industrial Base.

The House bill contained no similar provision.

The House recedes with a technical amendment.

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