Skip to main content

Oversight of specialty metals procurements under exception relating to agreements with foreign governments

Division A · Title XVIII: Revitalization of the Defense Industrial Base · Subtitle A: Provisions to Protect and Strengthen Supply Chains

Plain-language summaryAI

The section limits the value of specialty metals the Department of Defense can acquire under an exception for agreements with foreign governments to no more than 30 percent of all specialty metals procured each year. It requires the Secretary of Defense to report annually on compliance with this limit and allows for a national security waiver with justification. Additionally, the Secretary must submit a detailed report within one year assessing the use of this exception, including data on procurement values, involved countries, supply chain analysis, and risks to the defense industrial base.

AI-generated from this section’s text — a quick orientation, not a substitute for the full text below. Not legal advice.

Section Text · Sec. 1802.
Source →PrevNext

(a) Limitation on use of exception relating to agreements with foreign governments

Section 4863 of title 10, United States Code, is amended by adding at the end the following new subsection:

(o) Limitation on procurements under exception relating to agreements with foreign governments

(1)

For any fiscal year, the total value of specialty metals acquired, including specialty metals incorporated into end items, pursuant to the exception under subsection (d), may not exceed 30 percent of the total value of specialty metals procured by the Department of Defense during such fiscal year.

(2)

In calculating the total value under paragraph (1), the Secretary of Defense shall include specialty metals directly procured by the Department and specialty metals incorporated into articles, materials, and supplies furnished by contractors and subcontractors to the Department.

(3)

Not later than 120 days after the last day of each fiscal year, the Secretary of Defense shall submit to the congressional defense committees a certification described compliance of the Secretary with the requirements of this subsection, including a description of the the methodology used to calculate the total value under paragraph (1).

(4)

The Secretary of Defense may waive the requirements of this subsection if the Secretary determines that such waiver is necessary in the interest of national security and submits to the congressional defense committees a written justification for the waiver not later than 30 days after exercising such authority.

(b) Report

(1) In general

Not later than one year after the date of enactment of this section, the Secretary of Defense shall submit to the congressional defense committees a report regarding the use of the exception under section 4863(d) of title 10, United States Code relating to agreements with foreign governments.

(2) Content

The report required under paragraph (1) shall include—

(A)

an assessment of the frequency with which the Department of Defense, including prime contractors and subcontractors performing contracts for the Department, utilizes the exception under such subsection (d);

(B)

the total value and percentage of procurements to which such exception applied during each of the five fiscal years preceding the date of the report;

(C)

a list of each foreign country with which the United States has entered into a reciprocal defense procurement memorandum of understanding or other defense procurement agreement for purposes of qualifying for the exception under such subsection (d);

(D)

a supply chain analysis of each country described in subparagraph (C);

(E)

an assessment of the extent to which specialty metals incorporated into articles, materials, or supplies acquired pursuant to the exception in section 4863(d) of title 10, United States Code, originate from countries that are not parties to a defense procurement memorandum of understanding or other defense procurement agreement;

(F)

an identification of any secondary dependencies on specialty metals sourced from countries that are not parties to a defense procurement memorandum of understanding or other defense procurement agreement; and

(G)

an assessment of risks to the defense industrial base arising from such dependencies.