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

Subtitle H — Other Matters

NDAA Section

House Conference Report 110-477

SEC. 886. ENHANCED AUTHORITY TO ACQUIRE PRODUCTS AND SERVICES PRODUCED IN IRAQ AND AFGHANISTAN.

(a) In General- In the case of a product or service to be acquired in support of military operations or stability operations in Iraq or Afghanistan (including security, transition, reconstruction, and humanitarian relief activities) for which the Secretary of Defense makes a determination described in subsection (b), the Secretary may conduct a procurement in which--

(1) competition is limited to products or services that are from Iraq or Afghanistan;

(2) procedures other than competitive procedures are used to award a contract to a particular source or sources from Iraq or Afghanistan; or

(3) a preference is provided for products or services that are from Iraq or Afghanistan.

(b) Determination- A determination described in this subsection is a determination by the Secretary that--

(1) the product or service concerned is to be used only by the military forces, police, or other security personnel of Iraq or Afghanistan; or

(2) it is in the national security interest of the United States to limit competition, use procedures other than competitive procedures, or provide a preference as described in subsection (a) because--

(A) such limitation, procedure, or preference is necessary to provide a stable source of jobs in Iraq or Afghanistan; and

(B) such limitation, procedure, or preference will not adversely affect--

(i) military operations or stability operations in Iraq or Afghanistan; or

(ii) the United States industrial base.

(c) Products, Services, and Sources From Iraq or Afghanistan- For the purposes of this section:

(1) A product is from Iraq or Afghanistan if it is mined, produced, or manufactured in Iraq or Afghanistan.

(2) A service is from Iraq or Afghanistan if it is performed in Iraq or Afghanistan by citizens or permanent resident aliens of Iraq or Afghanistan.

(3) A source is from Iraq or Afghanistan if it--

(A) is located in Iraq or Afghanistan; and

(B) offers products or services that are from Iraq or Afghanistan.

The Senate amendment contained a provision (sec. 872) that would authorize the Secretary of Defense to establish a preference for the acquisition of products and services in Iraq and Afghanistan for the purpose of providing a stable source of jobs and employment in Iraq and Afghanistan in cases where the preference will not have an adverse effect on U.S. military operations or the U.S. industrial base.

The House bill contained no similar provision.

The House recedes.

The conferees direct the Secretary of Defense to report to the congressional defense committees on the use of this authority six months after the date of the enactment of this Act and every six months thereafter until the end of fiscal year 2009. Each such report should address the dollar amounts and purposes of procurements made under the authority of this section during the preceding six-month period.

Senate Armed Services Committee Report 110-77

The committee recommends a provision that would authorize the Secretary of Defense to establish a preference for the acquisition of products and services that are produced in Iraq and Afghanistan, if the Secretary determines that: (1) the product or service is to be used by military forces, police, or other security forces in Iraq or Afghanistan; (2) the preference is necessary to provide a stable source of jobs and employment in Iraq or Afghanistan; and (3) the preference will not have an adverse effect on U.S. military operations or the U.S. industrial base.