[Congressional Record Volume 170, Number 115 (Thursday, July 11, 2024)]
[Senate]
[Pages S4861-S4863]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2532. Mr. COTTON submitted an amendment intended to be proposed by 
him to the bill S. 4638, to authorize appropriations for fiscal year 
2025 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 end of subtitle C of title VIII, add the following:

     SEC. 855. MATTERS RELATING TO DEFENSE MANUFACTURING.

       (a) Authorities of Department of Defense to Increase 
     Domestic Defense Manufacturing.--
       (1) In general.--Subpart I of part V of subtitle A of title 
     10, United States Code, is amended by adding at the end the 
     following new chapter:

                  ``CHAPTER 390--DEFENSE MANUFACTURING

``Sec.
``5001. Definitions.
``5002. Incentivizing expansion of essential defense industrial base 
              capabilities.
``5003. Defense Industrial Base Fund.

     ``Sec. 5001. Definitions

       ``In this chapter:
       ``(1) Critical component.--
       ``(A) In general.--The term `critical component' includes 
     such components, subsystems, systems, and related special 
     tooling and test equipment essential to the production, 
     repair, maintenance, or operation of weapon systems or other 
     items of equipment identified by the Secretary as being 
     essential to the execution of the national security strategy 
     of the United States.
       ``(B) Inclusion of certain components.--Components 
     identified as critical by a National Security Assessment 
     conducted pursuant to section 113(i) of this title, or by a 
     Presidential determination as a result of a petition filed 
     under section 232 of the Trade Expansion Act of 1962 (19 
     U.S.C. 1862), shall be designated as critical components for 
     purposes of this chapter, unless the President determines 
     that the designation is unwarranted.
       ``(2) Critical technology.--The term `critical technology' 
     includes any technology designated by the Secretary to be 
     essential to the national defense.
       ``(3) Critical technology item.--The term `critical 
     technology item' means materials directly employing, derived 
     from, or utilizing a critical technology.
       ``(4) Domestic industrial base.--The term `domestic 
     industrial base' means domestic sources which are providing, 
     or which would be reasonably expected to provide, materials 
     or services to meet national defense requirements during 
     peacetime, national emergency, or war.
       ``(5) Domestic source.--The term `domestic source' means a 
     business concern--
       ``(A) that performs in the United States, Canada, 
     Australia, New Zealand, or the United Kingdom substantially 
     all of the research and development, engineering, 
     manufacturing, and production activities required of such 
     business concern under a contract with the United States 
     relating to a critical component or a critical technology 
     item; and
       ``(B) that procures from business concerns described in 
     subparagraph (A) substantially all of any components and 
     assemblies required under a contract with the United States 
     relating to a critical component or critical technology item.
       ``(6) Facilities.--The term `facilities' includes all types 
     of buildings, structures, or other improvements to real 
     property (but excluding farms, churches or other places of 
     worship, and private dwelling houses), and services relating 
     to the use of any such building, structure, or other 
     improvement.
       ``(7) Industrial resources.--The term `industrial 
     resources' means materials, services, processes, or 
     manufacturing equipment (including the processes, 
     technologies, and ancillary services for the use of such 
     equipment) needed to establish or maintain an efficient and 
     modern national defense industrial base.
       ``(8) Materials.--The term `materials' includes--
       ``(A) any raw materials (including minerals, metals, and 
     advanced processed materials), commodities, articles, 
     components (including critical components), products, and 
     items of supply; and
       ``(B) any technical information or services ancillary to 
     the use of any such materials,

[[Page S4862]]

     commodities, articles, components, products, or items.
       ``(9) National defense.--The term `national defense' has 
     the meaning given that term in section 4818(f) of this title.
       ``(10) Person.--The term `person' includes an individual, 
     corporation, partnership, association, or any other organized 
     group of persons, or legal successor or representative 
     thereof, or any State or local government or agency thereof.
       ``(11) Services.--The term `services' includes any effort 
     that is needed for or incidental to--
       ``(A) the development, production, processing, 
     distribution, delivery, or use of an industrial resource or a 
     critical technology item;
       ``(B) the construction of facilities;
       ``(C) the movement of individuals and property by all modes 
     of civil transportation; or
       ``(D) other national defense programs and activities.
       ``(12) Secretary.--The term `Secretary' means the Secretary 
     of Defense.

     ``Sec. 5002. Incentivizing expansion of essential defense 
       industrial base capabilities

       ``(a) Incentives.--
       ``(1) In general.--To create, maintain, protect, expand, or 
     restore domestic industrial base capabilities essential for 
     the national defense, the Secretary may make provision--
       ``(A) for purchases of or commitments to purchase an 
     industrial resource or a critical technology item for 
     Department of Defense use or resale;
       ``(B) for the encouragement of exploration, development, 
     and mining of critical and strategic materials, and other 
     materials;
       ``(C) for the development of production capabilities; and
       ``(D) for the increased use of emerging technologies in 
     security program applications and the rapid transition of 
     emerging technologies--
       ``(i) from government-sponsored research and development to 
     commercial applications; and
       ``(ii) from commercial research and development to national 
     defense applications.
       ``(2) Terms of sales.--No commodity purchased under this 
     subsection shall be sold at less than--
       ``(A) the established ceiling price for such commodity, 
     except that minerals, metals, and materials shall not be sold 
     at less than the established ceiling price, or the current 
     domestic market price, whichever is lower; or
       ``(B) if no ceiling price has been established, the current 
     domestic market price for such commodity.
       ``(3) Determinations required.--The Secretary may not 
     execute a contract under this subsection unless the Secretary 
     determines, with appropriate explanatory material and in 
     writing, that--
       ``(A) the industrial resource, material, or critical 
     technology item is essential to the national defense; and
       ``(B) without action by the Secretary under this section, 
     United States industry cannot reasonably be expected to 
     provide the capability for the needed industrial resource, 
     material, or critical technology item in a timely manner.
       ``(b) Exemption for Certain Limitations.--Subject to the 
     limitations in subsection (a), purchases and commitments to 
     purchase and sales under subsection (a) may be made without 
     regard to the limitations of existing law for such 
     quantities, and on such terms and conditions, including 
     advance payments, and for such periods, but not extending 
     beyond a date that is not more than 10 years from the date on 
     which such purchase, purchase commitment, or sale was 
     initially made, as the Secretary deems necessary.
       ``(c) Incidental Authority.--The procurement power granted 
     to the Secretary by this section shall include the power to 
     transport and store and have processed and refined any 
     materials procured under this section.
       ``(d) Installation of Equipment in Industrial Facilities.--
       ``(1) Installation authorized.--If the Secretary determines 
     that such action will aid the national defense, the Secretary 
     is authorized--
       ``(A) to procure and install additional equipment, 
     facilities, processes, or improvements to plants, factories, 
     and other industrial facilities owned by the Department of 
     Defense;
       ``(B) to procure and install equipment owned by the 
     Department in plants, factories, and other industrial 
     facilities owned by private persons;
       ``(C) to provide for the modification or expansion of 
     privately owned facilities, including the modification or 
     improvement of production processes; and
       ``(D) to sell or otherwise transfer equipment owned by the 
     Department and installed under this subsection to the owners 
     of such plants, factories, or other industrial facilities.
       ``(2) Indemnification.--The owner of any plant, factory, or 
     other industrial facility that receives equipment owned by 
     the Federal Government under this section shall agree--
       ``(A) to waive any claim against the United States under 
     section 107 or 113 of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9607 and 9613);
       ``(B) to indemnify the United States against any claim 
     described in paragraph (1) made by a third party that arises 
     out of the presence or use of equipment owned by the Federal 
     Government; and
       ``(C) to indemnify the contractor, if any, in accordance 
     with Public Law 85-804 (50 U.S.C. 1431 et seq.) and Executive 
     Order 10789 (50 U.S.C. 1431 note; relating to authorizing 
     agencies of the Government to exercise certain contracting 
     authority in connection with national-defense functions and 
     prescribing regulations governing the exercise of such 
     authority), as implemented by part 50 of the Federal 
     Acquisition Regulation.
       ``(e) Transfer to National Defense Stockpile of Excess 
     Metals, Minerals, and Materials.--
       ``(1) In general.--Notwithstanding any other provision of 
     law to the contrary, metals, minerals, and materials acquired 
     pursuant to this section that, in the judgment of the 
     Secretary, are excess to the needs of programs under this 
     chapter, shall be transferred to the National Defense 
     Stockpile established by the Strategic and Critical Materials 
     Stock Piling Act (50 U.S.C. 98 et seq.), when the Secretary 
     deems such action to be in the public interest.
       ``(2) Transfers at no charge.--Transfers made pursuant to 
     this subsection shall be made without charge against or 
     reimbursement from funds appropriated for the purposes of the 
     Strategic and Critical Materials Stock Piling Act ( 50 U.S.C. 
     98 et seq.), except that costs incident to such transfer, 
     other than acquisition costs, shall be paid or reimbursed 
     from such funds.
       ``(f) Development of Substitutes.--When, in the judgment of 
     the Secretary it will aid the national defense, the Secretary 
     may make provision for the development of substitutes for 
     strategic and critical materials, critical components, 
     critical technology items, and other industrial resources.

     ``Sec. 5003. Defense Industrial Base Fund

       ``(a) Establishment of Fund.--There is established in the 
     Treasury of the United States a separate fund to be known as 
     the `Defense Industrial Base Fund' (in this section referred 
     to as the `Fund').
       ``(b) Moneys in Fund.--There shall consist of amounts 
     appropriated or otherwise made available to the Fund.
       ``(c) Use of Funds.--The Fund shall be available to carry 
     out the provisions and purposes of this chapter, subject to 
     the limitations set forth in this chapter and in 
     appropriations Acts.
       ``(d) Duration of Fund.--Amounts in the Fund shall remain 
     available until expended.
       ``(e) Fund Manager.--The Secretary shall be the manager of 
     the Fund. The duties of the Fund manager shall include--
       ``(1) determining the liability of the Fund;
       ``(2) ensuring the visibility and accountability of 
     transactions engaged in through the Fund; and
       ``(3) reporting to the Congress each year regarding 
     activities of the Fund during the previous fiscal year.''.
       (2) Modifications to industrial base fund and defense 
     production act fund.--
       (A) Transfer of funds.--All amounts in the Defense 
     Production Act Fund under section 304 of the Defense 
     Production Act of 1950 (50 U.S.C. 4534) on the day before the 
     date of the enactment of this Act, other than amounts 
     appropriated to the Fund by division B of the CARES Act 
     (Public Law 116-136; 134 Stat. 505) or section 30001 of 
     Public Law 117-169 (commonly known as the ``Inflation 
     Reduction Act of 2022'') (136 Stat. 2027), shall be 
     transferred to and deposited in the Defense Industrial Base 
     Fund under section 5003 of title 10, United States Code, as 
     added by [subparagraph (B)].
       (B) Availability of amounts in industrial base fund.--
     Section 4817(d) of title 10, United States Code, is amended--
       (i) in paragraph (3), by striking ``; and'' and inserting a 
     semicolon;
       (ii) in paragraph (4), by striking the period at the end 
     and inserting ``; and''; and
       (iii) by adding at the end the following new paragraph:
       ``(5) to carry out chapter 390.''.
       (C) Amendments to defense production act fund.--
       (i) Renaming of fund.--Section 304 of the Defense 
     Production Act of 1950 (50 U.S.C. 4534) is amended--

       (I) in the section heading, by striking ``defense 
     production act fund'' and inserting ``non-defense national 
     crisis production fund''; and
       (II) in subsection (a), by striking ``Defense Production 
     Act Fund'' and inserting ``Non-Defense National Crisis 
     Production Fund''.

       (ii) References.--On and after the date of the enactment of 
     this Act, any reference in any law or regulation to the 
     Defense Production Act Fund shall be deemed to be a reference 
     to the Non-Defense National Crisis Production Fund.
       (3) Clerical amendments.--The table of chapters as the 
     beginning of subtitle A of title 10, United States Code, and 
     at the beginning of part V of such subtitle, are each amended 
     by inserting after the item relating to chapter 389 the 
     following new item:

``390. Defense Manufacturing.''.

       (b) Direct Hire Authority for Office of the Assistant 
     Secretary of Defense for Industrial Base Policy.--The 
     Secretary of Defense may appoint, without regard to the 
     provisions of subchapter I of chapter 33 (other than sections 
     3303, 3307, and 3328 of such chapter) of title 5, United 
     States Code, qualified candidates in the competitive service 
     (as defined in section 2102 of that title) of the Department 
     of Defense to any position in the Office of the Assistant 
     Secretary of Defense for Industrial Base Policy.

[[Page S4863]]

       (c) National Defense Executive Reserve.--The Secretary of 
     Defense shall establish a pilot program under which the 
     Secretary enters into voluntary agreements with senior 
     executives of traditional and nontraditional defense 
     contractors, including executives from the supplier base, to 
     advise the Secretary on the following:
       (1) Assessing the health of the defense industrial base.
       (2) Identifying critical shortages and impediments to 
     production of critical munitions and other war materials.
       (3) Identifying limiting factors for required production 
     rates for critical munitions.
       (4) Analyzing workforce issues across the defense 
     industrial base.
       (5) Assisting in deconflicting efforts of the Department of 
     Defense and the Armed Forces to improve defense industrial 
     base capacity.
       (6) Assisting the Secretary in carrying out chapter 390 of 
     title 10, as added by subsection (a).
       (d) GAO Review of Staffing Levels of MCEIP.--Not later than 
     July 1, 2025, the Comptroller General of the United States 
     shall submit to the congressional defense committees a report 
     assessing staffing levels at the Office of Manufacturing 
     Capability Expansion and Investment Prioritization.
                                 ______