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

Subtitle C--Domestic Sourcing Requirements

P. L. 118-31

SEC. 835. ENHANCED DOMESTIC CONTENT REQUIREMENT FOR MAJOR DEFENSE ACQUISITION PROGRAMS.

(a) Assessment Required.--

(1) In general.--Not later than one year after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report assessing the domestic source content of procurements carried out in connection with a major defense acquisition program.

(2) Information repository.--The Secretary of Defense shall establish an information repository for the collection and analysis  of information related to domestic source content for products the Secretary deems critical, where such information can be used for continuous data analysis and program management activities.

(b) Enhanced Domestic Content Requirement.--

(1) In general.--Except as provided in paragraph (2), for purposes of chapter 83 of title 41, United States Code, manufactured articles, materials, or supplies procured in connection with a major defense acquisition program are manufactured substantially all from articles, materials, or supplies mined, produced, or manufactured in the United States if the cost of such component articles, materials, or supplies--

(A) supplied not later than the date of the enactment of this Act, exceeds 60 percent of cost of the manufactured articles, materials, or supplies procured;

(B) supplied during the period beginning January 1, 2024, and ending December 31, 2028, exceeds 65 percent of the cost of the manufactured articles, materials, or supplies; and

(C) supplied on or after January 1, 2029, exceeds 75 percent of the cost of the manufactured articles, materials, or supplies.

(2) Exclusion for certain manufactured articles.--Paragraph (1) shall not apply to manufactured articles that consist wholly or predominantly of iron, steel, or a combination of iron and steel.

(3) Rulemaking to create a fallback threshold.--

(A) In general.--Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall issue rules to determine the treatment of the lowest price offered for a foreign end product for which 55 percent or more of the component articles, materials, or supplies of such foreign end product are manufactured substantially all from articles, materials, or supplies mined, produced, or manufactured in the United States if--

(i) the application of paragraph (1) results in an unreasonable cost; or

(ii) no offers are submitted to supply manufactured articles, materials, or supplies manufactured substantially all from articles, materials, or supplies mined, produced, or manufactured in the United States.

(B) Termination.--Rules issued under this paragraph shall cease to have force or effect on January 1, 2031.

(4) Applicability.--The requirements of this subsection--

(A) shall apply to contracts entered into on or after the date of the enactment of this Act;

(B) shall not apply to articles manufactured in countries that have executed a reciprocal defense procurement memorandum of understanding with the United States entered into pursuant to section 4851 of title 10, United States Code; and

(C) shall not apply to a country that is a member of the national technology and industrial base (as defined by section 4801 of title 10, United States Code).

(c) Major Defense Acquisition Program Defined.--The term ``major defense acquisition program'' has the meaning given in section 4201 of title 10, United States Code.

Sec. 835--Enhanced domestic content requirement for major defense acquisition programs

The House bill contained a provision (sec. 869) that would increase domestic content requirements to support the defense industrial base and secure supply chains, and enhances trusted allies by exempting countries with a reciprocal defense procurement agreement with the Department or are in the National Technology and Industrial Base.

The Senate amendment contained no similar provision.

The Senate recedes.

H. Rept. 118-125

Section 869--Enhanced Domestic Content Requirement for Major Defense Acquisition Programs

This section would increase domestic content requirements to support the defense industrial base and secure supply chains, and enhances trusted allies by exempting countries with a reciprocal defense procurement agreement with the Department or are in the National Technology and Industrial Base.