[Congressional Record Volume 169, Number 120 (Thursday, July 13, 2023)]
[Senate]
[Page S2793]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 685. Ms. BALDWIN submitted an amendment intended to be proposed by
her to the bill S. 2226, to authorize appropriations for fiscal year
2024 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:
At the appropriate place in title VIII, insert the
following:
SEC. __. ENHANCED DOMESTIC CONTENT REQUIREMENT FOR NAVY
SHIPBUILDING PROGRAMS.
(a) Enhanced Domestic Content Requirement.--
(1) Contracting requirements.--Except as provided in
paragraph (2), for purposes of chapter 83 of title 41, United
States Code, manufactured articles, materials, or supplies
procured as part of a Navy shipbuilding 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 during the period beginning January 1, 2026,
and ending December 31, 2027, exceeds 65 percent of the cost
of the manufactured articles, materials, or supplies;
(B) supplied during the period beginning January 1, 2028,
and ending December 31, 2032, exceeds 75 percent of the cost
of the manufactured articles, materials, or supplies; and
(C) supplied on or after January 1, 2033, equals 100
percent of the cost of the manufactured articles, materials,
or supplies.
(2) Applicability to research, development, test, and
evaluation activities.--Contracts related to shipbuilding
programs entered into under paragraph (1) to carry out
research, development, test, and evaluation activities shall
require that these activities and the components specified
during these activities must meet the domestic content
requirements delineated under paragraph (1).
(3) 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.
(4) Waiver.--The Secretary of Defense may request a waiver
from the requirements under paragraph (1) in order to expand
sourcing to members of the national technical industrial base
(as that term is defined in section 4801 of title 10, United
States Code). Any such waiver shall be subject to the
approval of the Director of the Made in America Office and
may only be requested if it is determined that any of the
following apply:
(A) Application of the limitation would increase the cost
of the overall acquisition by more than 25 percent or cause
unreasonable delays to be incurred.
(B) Satisfactory quality items manufactured by a domestic
entity are not available or domestic production of such items
cannot be initiated without significantly delaying the
project for which the item is to be acquired.
(C) It is inconsistent with the public interest.
(5) Rulemaking.--Not later than 180 days after the date of
the enactment of this Act, the Secretary of Defense, in
concurrence with the Director of the Made in America Office,
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--
(A) the application of paragraph (1) results in an
unreasonable cost; or
(B) 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.
(6) Applicability.--The requirements of this subsection
shall apply to contracts entered into on or after January 1,
2026.
(b) Reporting on Country of Origin Manufacturing.--Not
later than one year after the date of the enactment of this
Act, and annually thereafter, the Secretary of Defense shall
submit to Congress a report on country of origin tracking and
reporting as it relates to manufactured content procured as
part of Navy shipbuilding programs, including through primary
contracts and subcontracts at the second and third tiers. The
report shall describe measures taken to ensure that the
country of origin information pertaining to such content is
reported accurately in terms of the location of manufacture
and not determined by the location of sale.
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