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

Subtitle E—Provisions Relating to Supply Chain Security

P. L. 117-81

Joint Explanatory Statement

(a) Definitions.--In this section, the term ``dual-use'' has the meaning given in section 2500 of title 10, United States Code.

(b) Assessment.--The Secretary of Defense shall assess the requirements of the Department of Defense for dual-use items covered by section 2533a of title 10, United States Code.

(c) Policies.--The Secretary of Defense shall develop or revise and implement relevant policies to track and reduce fluctuations in supply chain forecasting and encourage predictable demand requirements for annual procurements of such dual-use items by the Office the Secretary of Defense, each military department, and the Defense Logistics Agency.

(d) Report and Briefings.--

(1) Assessment report.--

(A) In general.--Not later than December 31, 2022, the Secretary of Defense shall submit to the congressional defense committees a report on the findings of the assessment conducted under subsection (b).

(B) Form.--The report required by subparagraph (A) shall be submitted in an unclassified form, but may include a classified annex to the extent required to protect the national security of the United States.

(2) Quarterly briefings.--

(A) In general.--Not later than March 1, 2023, and quarterly thereafter until March 1, 2026, each Secretary of a military department and the Director of the Defense Logistics Agency shall brief the Under Secretary of Defense for Acquisition and Sustainment on the fluctuations in supply chain forecasting and demand requirements for each dual-use item covered by section 2533a of title 10, United States Code.

(B) Documentation.--Each briefing under subparagraph (A) shall be accompanied by documentation regarding the particular points of discussion for that briefing, including the fluctuations described in such subparagraph, expressed as a percentage.

The House bill contained a provision (sec. 835) that would require the Secretary of Defense, not later than 1 year after the date of the enactment of this Act, to put in place measures to identify and reduce fluctuations in supply chain forecasting and demand requirements for certain domestically-sourced items. The provision would also require the Secretaries of the military departments and the Director of the Defense Logistics Agency, not later than 15 months after the date of the enactment of this Act and quarterly thereafter, to provide to the Under Secretary of Defense for Acquisition and Sustainment a report on such fluctuations.

The Senate amendment contained a similar provision (sec. 835) that would require the Secretary of Defense to assess the Department of Defense's requirements for dual-use items covered by section 2533a of title 10, United States Code. The provision would also require the Secretary to submit a report of the Department of Defense's findings to the congressional defense committees, not later than October 1, 2022.

The agreement includes the House provision with an amendment that would encourage predictable demand requirements for annual procurements of dual-use items and require quarterly briefings on the Department’s forecasting and demand requirements for covered items.

H. R. 4350--House Report 117-118

Section 835--Reduction of Fluctuations of Supply and Demand for Certain Covered Items

This section would direct the Secretary of Defense to specify methods and processes to track fluctuations in supply chain forecasting and demand requirements for certain items and implement policies to encourage predictable demand requirements. The section would also require a quarterly report on supply chain forecasting fluctuations to the Under Secretary of Defense for Acquisition and Sustainment.

S. 2792--Senate Report117-39

Assessment of requirements for certain items to address supply chain vulnerabilities (sec. 835)

The committee recommends a provision that would require the Secretary of Defense to assess the Department of Defense's requirements for dual-use items covered by section 2533a of title 10, United States Code. The provision would also require the Secretary to submit a report of the Department's findings to the congressional defense committees not later than October 1, 2022.