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

Subtitle C--Domestic Sourcing Requirements

P. L. 118-31

SEC. 832. REQUIREMENT FOR FULL DOMESTIC PRODUCTION OF FLAGS OF THE UNITED STATES ACQUIRED BY THE DEPARTMENT OF DEFENSE.

(a) In General.--Section 4862 of title 10, United States Code, is amended--

(1) in subsection (b), by adding at the end the following new paragraph:
``(5) A flag of the United States.''; and

(2) in subsection (h)--

(A) in paragraph (1), by striking ``Subsection (a)'' and inserting ``Except with respect to purchases of flags of the United States, subsection (a)'';

(B) by redesignating paragraph (2) as paragraph (3); and

(C) by inserting after paragraph (1) the following new paragraph:

``(2)(A)(i) Except as provided by subparagraph (B), subsection (a) does not apply to purchases of flags of the United States for amounts not greater than $10,000.

``(ii) A proposed procurement in an amount greater than $10,000 may not be divided into several purchases or contracts for lesser amounts in order to qualify for the exception under clause (i).

``(B) The Secretary of Defense may waive subsection (a) with respect to a purchase of flags of the United States in an amount greater than $10,000 if the Secretary of Defense determines such waiver appropriate.

``(C) This section is applicable to contracts and subcontracts for the procurement of flags of the United States.''.

(b) Applicability.--The amendments made by subsection (a) shall apply only with respect to agreements entered into on or after the date of the enactment of this Act.

Sec. 832--Requirement for full domestic production of flags of the United States acquired by the Department of Defense

The House bill contained a provision (sec. 841) that would require full domestic production of U.S. flags acquired by the Department of Defense.

The Senate amendment contained no similar provision.

The Senate recedes with a clarifying amendment.

H. Rept. 118-125