102d CONGRESS
1st Session
S. 347
AMENDMENTS
S 347 EAH1S
In the House of Representatives, U. S.,
October 10, 1991.
Resolved, That the bill from the Senate (S. 347) entitled `An Act to amend
the Defense Production Act of 1950 to revitalize the defense industrial base
of the United States, and for other purposes', do pass with the following
AMENDMENTS:
Strike out all after the enacting clause and insert:

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(a) SHORT TITLE- This Act may be cited as the `Defense Production Act
Amendments of 1991'.
(b) Table of Contents-

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Part B--Amendments to Title I of the Defense Production Act

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TITLE I

-AMENDMENTS TO THE DEFENSE PRODUCTION ACT OF 1950

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Part C--Amendments to Title III of the Defense Production Act

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for weapon systems and development programs.
Part D--Amendments to Title VII of the Defense Production Act

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Part F--Repealers and Conforming Amendments

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Part G--Reauthorization of Selected Provisions

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TITLE V

-BUY AMERICAN PROVISIONS

Section 2 of the Defense Production Act of 1950 (50 U.S.C. App. 2062)
is amended to read as follows:
`SEC. 2. DECLARATION OF POLICY.
`(a)(1) The vitality of the industrial and technology base of the United
States is a foundation of national security. It provides the industrial and
technological capabilities employed to meet national defense requirements,
in peacetime and in time of national emergency. In peacetime, the health
of the industrial and technological base contributes to the technological
superiority of our defense equipment, which is a cornerstone of our national
security strategy, and the efficiency with which defense equipment is
developed and produced. In times of crisis, a healthy industrial base will
be able to effectively provide the graduated response needed to effectively
meet the demands of the emergency.
`(2) To meet these requirements, this Act affords to the President an array
of authorities to shape defense preparedness programs and to take appropriate
steps to maintain and enhance the defense industrial and technological base.
`(b)(1) In view of continuing international problems, the Nation's
demonstrated reliance on imports of materials and components, and the need
for measures to reduce defense production lead times and bottlenecks,
and in order to provide for the national defense and national security,
our defense mobilization preparedness effort continues to require the
development of preparedness programs, domestic defense industrial base
improvement measures, as well as provision for a graduated response to
any threatening international or military situation, and the expansion of
domestic productive capacity beyond the levels needed to meet the civilian
demand. Also required is some diversion of certain materials and facilities
from civilian use to military and related purposes.
`(2) These activities are needed in order to improve domestic defense
industrial base efficiency and responsiveness, to reduce the time required
for industrial mobilization in the event of an attack on the United States
or to respond to actions occurring outside the United States which could
result in the termination or reduction of the availability of strategic
and critical materials, including energy, and which could adversely affect
national defense preparedness of the United States. In order to ensure
national defense preparedness, which is essential to national security,
it is also necessary and appropriate to assure the availability of domestic
energy supplies for national defense needs. To further assure the adequate
maintenance of the defense industrial base, to the maximum extent possible
such supplies should be augmented through reliance on renewable fuels,
such as solar, geothermal, and wind energy and ethanol and its derivatives,
and on energy conservation measures.
`(c)(1) In order to ensure productive capacity in the event of an attack
on the United States, it is the policy of the Congress to encourage the
geographical dispersal of industrial facilities in the United States to
discourage the concentration of such productive facilities within limited
geographical areas which are vulnerable to attack by an enemy of the
United States. To the maximum extent possible, such dispersal should seek
to include such economically depressed regions as urban areas with high
unemployment and poverty rates, counties in rural States with high levels
of outmigration and job loss, and Indian reservations with severe health and
employment problems. To ensure that essential mobilization requirements are
met, consideration should also be given to stockpiling strategic materials
to the extent that such stockpiling is economical and feasible.
`(2) In the construction of any Government-owned industrial facility, in
the rendition of any Government financial assistance for the construction,
expansion, or improvement of any industrial facility, and in the production
of goods and services, under this or any other Act, each department and
agency of the executive branch shall apply, under the coordination of
the Federal Emergency Management Agency, when practicable and consistent
with existing law and the desirability for maintaining a sound economy,
the principle of the geographical dispersal of such facilities in the
interest of national defense. However, nothing in this paragraph shall
preclude the use of existing industrial facilities.
`(3) To ensure the adequacy of productive capacity and supply, executive
agencies and departments responsible for defense acquisition shall
continuously assess the capability of the domestic defense industrial base to
satisfy peacetime requirements as well as increased mobilization production
requirements. Such assessments shall specifically evaluate the availability
of adequate production sources, including subcontractors and suppliers,
materials, skilled labor, and professional and technical personnel. In
this context, every effort should be made to foster cooperation between
the defense and commercial sectors for research and development and for
acquisition of materials, components, and equipment. In furtherance of this
policy and to ensure the capability of the domestic defense industrial
base, defense contractors should be allowed full recovery of the costs
of independent research and development and the preparation of bids and
proposals.
`(4) It is the policy of the Congress that plans and programs to carry out
this declaration of policy shall be undertaken with due consideration for
promoting efficiency and competition.
`(5) It is also necessary to recognize that--
`(A) the domestic defense industrial base is a component part of the core
industrial capacity of the Nation; and
`(B) much of the industrial capacity which is relied upon by the Federal
Government for military production and other defense-related purposes is
deeply and directly influenced by--
`(i) the overall competitiveness of the United States industrial economy; and
`(ii) the ability of United States industry, in general, to produce
internationally competitive products and operate profitably while maintaining
adequate research and development to preserve that competitive edge in
the future, with respect to military and civilian production.
`(6)(A) The domestic defense industrial base is developing a growing
dependency on foreign sources for critical components and materials used in
manufacturing and assembling major weapons systems for our national defense.
`(B) This dependence is threatening the capability of many critical
industries to respond rapidly to defense production needs in the event of
war or other hostilities or diplomatic confrontation.
`(C) The inability of United States industry, especially smaller
subcontractors and suppliers, to provide vital parts and components and
other materials would impair our ability to sustain our Armed Forces in
combat for more than a few months.
`(D) In the event our Armed Forces must face an adversary with a numerical
advantage, in the context of a conventional war, it is imperative to
preserve and strengthen the industrial and technological capabilities of
the United States.
`(d) Contracts awarded under provisions of this Act should be awarded to
the maximum extent possible to those firms which have not been convicted of
defense contract fraud or otherwise debarred or suspended from contracting
with the Department of Defense or its constituent agencies.'.
PART B--AMENDMENTS TO TITLE I OF THE DEFENSE PRODUCTION ACT

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BUSINESSES.
Title I of the Defense Production Act of 1950 (50 U.S.C. App. 2071, et
seq.) is amended by adding at the end the following new sections:
`SEC. 107. STRENGTHENING OF DOMESTIC CAPABILITY.
`(a) IN GENERAL- The President, acting through the Secretary of Defense,
shall identify critical components essential for the execution of the
national security strategy of the United States in peacetime and during
graduated mobilization, and take appropriate actions to protect against
unreliable sources for critical components.
`(b) APPROPRIATE ACTIONS- For purposes of subsection (a), appropriate
action may include--
`(1) restricting solicitation for procurement of a critical component to
domestic and reliable foreign sources only or to domestic sources only
(pursuant to this section and authorities  in section 2304(b)(1)(B)
or 2304(c)(3) of title 10, United States Code, or any other applicable
provision of statute);
`(2) stockpiling critical components;
`(3) developing substitutes for critical components; or
`(4) other similar appropriate measures.
`(c) IDENTIFICATION OF CRITICAL COMPONENTS- At a minimum, critical
components shall be identified for all items on the CINC Critical Items
List. Additionally, the Department of Defense shall take into account those
components identified as critical by a National Security Assessment or
Presidential determination as a result of a petition filed under section
232 of the Trade Expansion Act of 1962 when identifying critical components.
`SEC. 108. ASSISTANCE FOR SMALL BUSINESSES.
`(a) IN GENERAL- In providing any assistance authorized for defense
contractors and subcontractors under this Act, the President shall
provide a strong preference for contractors and subcontractors which are
small businesses, as defined by the Administrator of the Small Business
Administration. In awarding authorized contracts under this Act, the
President shall provide a strong preference for those small businesses
located in areas of high unemployment and/or areas that demonstrate a
continuing pattern of economic decline as identified by the Secretary
of Labor.
`(b) MODERNIZATION OF EQUIPMENT-
`(1) IN GENERAL- Funds authorized under title III may be set aside to
guarantee the purchase or lease of advance manufacturing equipment, and any
related services with respect to any such equipment for purposes of this Act.
`(2) SMALL BUSINESS SUBCONTRACTORS- In considering applications under
paragraph (1), the President shall provide a strong preference for smaller
subcontractors that--
`(A) have obtained the recommendation--
`(i) of an agency of the Department of Defense; or
`(ii) pursuant to the efforts of an agency described in clause (i),
of the Secretary of Commerce or the Administrator of the Small Business
Administration; and
`(B) have arranged to obtain management assistance services in connection
with the installation of the advance manufacturing equipment.'.

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Section 104 of the Defense Production Act of 1950 (50 U.S.C. App. 2074)
is amended to read as follows:
`SEC. 104. LIMITATION ON ACTIONS WITHOUT CONGRESSIONAL AUTHORIZATION.
`(a) WAGE OR PRICE CONTROLS- No provision of this Act shall be interpreted
as providing for the imposition of wage or price controls without the
prior authorization of such action by a joint resolution of Congress.
`(b) CHEMICAL OR BIOLOGICAL WEAPONS- No provision of title I of this
Act shall be exercised or interpreted to require action or compliance
by any private person to assist in any way in the production of or other
involvement in chemical or biological warfare capabilities unless authorized
by the President.'.
PART C--AMENDMENTS TO TITLE III OF THE DEFENSE PRODUCTION ACT

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(a) GUARANTEE AUTHORITY- Section 301 of the Defense Production Act of 1950
(50 U.S.C. App. 2091) is amended--
(1) in subsection (a)(1), by striking `to expedite production and deliveries
or services under Government contracts for the procurement of materials
or the performance of services for the national defense' and inserting `to
expedite or expand production and deliveries or services under Government
contracts for the procurement of industrial resources or critical technology
items essential for the national defense';
(2) by amending subsection (a)(3)(A) to read as follows:
`(A) the guaranteed contract or operation is for industrial resources or
a critical technology item which is essential to the national defense;';
(3) in subsection (a)(3)(B)--
(A) by striking `Without' and inserting `without'; and
(B) by striking `the capability for the needed material or service' and
inserting `the needed industrial resources or critical technology item';
(4) by amending subsection (a)(3)(D) to read as follows:
`(D) the combination of the United States national defense demand and
foreseeable nondefense demand is equal to, or greater than, the output of
domestic industrial capability which the President reasonably determines to
be available for national defense, including the output to be established
through the guarantee.';
(5) in subsection (e)(1)(A), by striking `Except during periods of national
emergency declared by the Congress or the President' and inserting `Except
as provided in subparagraph (D)';
(6) in subsection (e)(1)(C), by striking `$25,000,000' and inserting
`$50,000,000'; and
(7) by adding at the end of subsection (e)(1) the following new subparagraph:
`(D) The requirements of subparagraphs (A), (B), and (C) may be waived--
`(i) during periods of national emergency declared by the Congress or the
President, or
`(ii) upon a determination by the President, on a nondelegable basis,
that a specific guarantee is necessary to avert an industrial resource or
critical technology shortfall that would severely impair national defense
capability.'.
(b) LOANS TO PRIVATE BUSINESS ENTERPRISES- Section 302 of the Defense
Production Act of 1950 (50 U.S.C. App. 2092) is amended--
(1) in subsection (a), by striking `for the procurement of materials or
the performance of services for the national defense' and inserting `for
the procurement of industrial resources or a critical technology item for
the national defense';
(2) by amending subsection (b)(2)(D) to read as follows:
`(D) the combination of the United States national defense demand and
foreseeable nondefense demand is equal to, or greater than, the output of
domestic industrial capability which the President reasonably determines to
be available for national defense, including the output to be established
through the loan.';
(3) in subsection (c)(1), by striking `No such loan may be made under
this section, except during periods of national emergency declared by the
Congress or the President' and inserting `Except as provided in paragraph
(4), no loans may be made under this section';
(4) in subsection (c)(3), by striking `$25,000,000' and inserting
`$50,000,000'; and
(5) in subsection (c), by adding at the end the following new paragraph:
`(4) The requirements of paragraphs (1), (2), and (3) of this subsection
may be waived during periods of national emergency declared by Congress
or the President.'.
(c) Purchases and Purchase Commitments-
(1) Section 303(a) of the Defense Production Act of 1950 (50
U.S.C. App. 2093(a)) is amended to read as follows:
`(a)(1) To assist in carrying out the objectives of this Act, the President
may make provision--
`(A) for purchases of or commitments to purchase an industrial resource
or a critical technology item, for Government use or resale; and
`(B) for the encouragement of exploration, development, and mining of
critical and strategic materials, and other materials.
`(2) Purchases for resale under this subsection shall not include that part
of the supply of an agricultural commodity which is domestically produced
except insofar as such domestically produced supply may be purchased for
resale for industrial use or stockpiling.
`(3) 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 higher of--
`(i) the current domestic market price for such commodity; or
`(ii) the minimum sale price established for agricultural commodities
owned or controlled by the Commodity Credit Corporation as provided in
section 407 of the Agricultural Act of 1949.
`(4) No purchase or commitment to purchase any imported agricultural
commodity shall specify a delivery date which is more than one year after
the expiration of this section.
`(5) Except as provided in paragraph (7), the President may not execute
a contract under this subsection unless the President determines that--
`(A) the industrial resource or critical technology item is essential to
the national defense;
`(B) without Presidential action under authority of this section, United
States industry cannot reasonably be expected to provide the capability
for the needed industrial resource or critical technology item in a
timely manner;
`(C) purchases, purchase commitments, or other action pursuant to this
section are the most cost-effective, expedient, and practical alternative
method for meeting the need; and
`(D) the combination of the United States national defense demand and
foreseeable nondefense demand for the industrial resource or critical
technology item is equal to, or greater than, the output of domestic
industrial capability which the President reasonably determines to be
available for national defense, including the output to be established
through the purchase, purchase commitment, or other action.
`(6) Except as provided in paragraph (7), the President shall take no action
under this section unless the industrial resource shortfall which such
action is intended to correct has been identified in the Budget of the United
States or amendments thereto, submitted to the Congress and accompanied by
a statement from the President demonstrating that the budget submission is
in accordance with the provisions of the preceding sentence. Any such action
may be taken only after 60 days have elapsed after such industrial resource
shortfall has been identified pursuant to the preceding sentence. If the
taking of any action or actions under this section to correct an industrial
resource shortfall would cause the aggregate outstanding amount of all such
actions for such industrial resource shortfall to exceed $50,000,000, any
such action or actions may be taken only if specifically authorized by law.
`(7) The requirements of paragraphs (1) through (6) may be waived--
`(A) during periods of national emergency declared by Congress or the
President; or
`(B) upon a determination by the President, on a nondelegable basis,
that a specific guarantee is necessary to avert an industrial resource or
critical technology shortfall that would severely impair national defense
capability.'.
(2) Section 303(b) of the Defense Production Act of 1950 (50 U.S.C. 2093(b))
is amended by striking `September 30, 1995' and inserting `a date that is
not more than 10 years from the date such purchase, purchase commitment,
or sale was initially made'.
(d) DEVELOPING SUBSTITUTES- Section 303(g) of the Defense Production Act
of 1950 (50 U.S.C. App. 2093(g)) is amended by inserting before the period
the following: `and for the production readiness of critical technology
products and processes'.

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Section 304 of the Defense Production Act of 1950 (50 U.S.C. App. 2094)
is amended to read as follows:
`SEC. 304. DEFENSE PRODUCTION ACT FUND.
`(a) ESTABLISHMENT OF FUND- There is established in the Treasury of the
United States a separate fund to be known as the Defense Production Act Fund
(hereafter in this section referred to as `the Fund').
`(b) MONEYS IN FUND- The following moneys shall be credited to the Fund:
`(1) All moneys appropriated after September 30, 1991, for the Fund,
as authorized by section 711(c).
`(2) All moneys received after September 30, 1991, on transactions entered
into pursuant to section 303.
`(c) USE OF FUND- The Fund shall be available to carry out the provisions
and purposes of this title, subject to the limitations set forth in this
Act and in appropriations Acts.
`(d) DURATION OF FUND- Moneys in the Fund shall remain available until
expended.
`(e) FUND BALANCE- The Fund balance at the close of each fiscal year
shall not exceed $400,000,000, excluding any moneys appropriated to the
Fund during that fiscal year or obligated funds. If at the close of any
fiscal year the Fund balance exceeds such amount, the amount in excess of
$400,000,000 shall be paid into the general fund of the Treasury.
`(f) FUND MANAGER- The Secretary of Defense shall designate a Fund
manager. The duties of the Fund manager shall include--
`(1) determining the liability of the Fund in accordance with subsection (g);
`(2) ensuring the visibility and accountability of transactions engaged
in through the Fund to the Secretaries of Defense, Treasury, and Commerce,
and to the Congress; and
`(3) reporting to Congress each year regarding fund activities during the
previous fiscal year.
`(g) LIABILITIES AGAINST FUND- When any agreement entered into pursuant
to this title after December 31, 1991, imposes contingent liabilities
upon the United States, such liability shall be considered an obligation
against the Fund.
`(h) Any individual involved in the operation and/or oversight of the Fund
shall submit to the Secretary of Defense and the Secretary of Commerce
annually during such individual's tenure in such positions--
`(1) a statement disclosing personal income and finances which shall be
consistent with Federal financial disclosure laws relating to Federal
employees; and
`(2) a statement certifying that no conflict of interest exists with the
position occupied by such individual and describing any circumstances
that may reasonably be perceived as a conflict of interest, which shall
be consistent with Federal laws relating to conflict of interest.

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(a) IN GENERAL- Recognizing that certain offsets for military exports
are economically inefficient and market distorting, and mindful of the
need to minimize the adverse effects of offsets in military exports while
ensuring that the ability of United States firms to compete for military
export sales is not undermined, it is the policy of the Congress that--
(1) no agency of the United States Government shall encourage, enter
directly into, or commit United States firms to any offset arrangement in
connection with the sale of defense goods or services to foreign governments;
(2) United States Government funds shall not be used to finance offsets
in security assistance transactions except in accordance with policies
and procedures that were in existence as of September 30, 1991;
(3) nothing in this section shall prevent agencies of the United States
Government from fulfilling obligations incurred through international
agreements entered into before September 30, 1991; and
(4) the decision whether to engage in offsets, and the responsibility
for negotiating and implementing offset arrangements, resides with the
companies involved.
(b) PRESIDENTIAL APPROVAL OF EXCEPTIONS- It is the policy of the Congress
that the President may approve an exception to the policy stated by
subsection (a) after receiving the recommendation of the National Security
Council.
(c) CONSULTATION- It is the policy of the Congress that the President shall
designate the Secretary of Defense, in coordination with the Secretary
of State, to lead an interagency team to consult with foreign nations on
limiting the adverse effects of offsets in defense procurement. The President
shall transmit an annual report on the results of these consultations to
the Congress as part of the report required under section 309(a) of the
Defense Production Act of 1950 (50 U.S.C. App. 2099(a)).

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Section 309 of the Defense Production Act of 1950 (50 U.S.C. App. 2099)
(as amended by section 123 of this Act) is amended--
(1) in subsection (b) (as so redesignated by section 123(1) of this part)--
(A) by striking `(b) REPORT REQUIRED- Not later' and inserting: `(b)
Annual Report on Impact of Offsets-
`(1) REPORT REQUIRED- Not later';
(B) by striking the second sentence; and
(C) by adding at the end the following new paragraph:
`(2) DUTIES OF THE SECRETARY OF COMMERCE- The Secretary of Commerce shall--
`(A) prepare the report required by paragraph (1);
`(B) consult with the Secretary of Defense, the Secretary of the Treasury,
the Secretary of State, and the United States Trade Representative in
connection with the preparation of such report; and
`(C) function as the President's Executive Agent for carrying out the
requirements of this section.';
(2) by amending subsection (c) (as so redesignated by section 123(1)
of this part) to read as follows:
`(c) Interagency Studies and Related Data-
`(1) PURPOSE OF REPORT- Each report required under subsection (b) shall
identify the cumulative effects (indirect as well as direct) of offset
agreements on--
`(A) the full range of domestic defense productive capability (with
special attention to the firms serving as lower-tier subcontractors or
suppliers); and
`(B) the domestic defense technology base as a consequence of the technology
transfers associated with such offset agreements.
`(2) USE OF DATA- Data developed or compiled by any agency while conducting
any interagency study or other independent study or analysis shall be
made available to the Secretary of Commerce to facilitate the Secretary
in executing the Secretary's responsibilities with respect to trade offset
and countertrade policy development.'; and
(3) by adding at the end the following new subsections:
`(d) Notice of Offset Agreements-
`(1) IN GENERAL- If a United States firm enters into a contract for the
sale of a weapon system or defense-related item to a foreign country or
foreign firm and such contract is subject to an offset agreement exceeding
$5,000,000 in value, such firm shall furnish to the official designated
in the regulations promulgated pursuant to paragraph (2) information
concerning such sale.
`(2) REGULATIONS- The information to be furnished shall be prescribed in
regulations promulgated by the Secretary of Commerce. Such regulations
shall provide protection from public disclosure for such information,
unless public disclosure is subsequently specifically authorized by the
firm furnishing the information.
`(e) Contents of Report-
`(1) In general- Each report under subsection (b) shall include--
`(A) a net assessment of the elements of the industrial base and technology
base covered by the report;
`(B) recommendations for appropriate remedial action under the authorities
provided by this Act, or other law or regulations;
`(C) a summary of the findings and recommendations of any interagency
studies conducted during the reporting period under subsection (c);
`(D) a summary of offset arrangements concluded during the reporting period
for which information has been furnished pursuant to subsection (d); and
`(E) a summary and analysis of any bilateral and multilateral negotiations
relating to use of offsets completed during the reporting period.
`(2) ALTERNATIVE FINDINGS OR RECOMMENDATIONS- Each report shall include
any alternative findings or recommendations offered by any departmental
Secretary, agency head, or the United States Trade Representative to the
Secretary of Commerce.
`(f) Utilization of Annual Report in Negotiations- The findings and
recommendations of the reports required by subsection (b), and any
interagency reports and analyses shall be considered by representatives
of the United States during bilateral and multilateral negotiations to
minimize the adverse effects of offsets.'.

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Title III of the Defense Production Act of 1950 is amended by adding at
the end the following new section:
`SEC. 310. CIVIL-MILITARY INTEGRATION.
`An important purpose of this title is the creation of production capacity
that will remain economically viable after guarantees and other assistance
provided under this title have expired.'.

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FOR WEAPON SYSTEMS AND DEVELOPMENT PROGRAMS.
Title III of the Defense Production Act of 1950 (50 U.S.C. App. 2091 et
seq.) is amended by adding at the end the following new section:
`SEC. 311. TESTING, QUALIFICATION, AND INCORPORATION OF MATERIALS FOR USE
FOR WEAPON SYSTEMS AND DEVELOPMENT PROGRAMS.
`The President shall, within 12 months after the date of the enactment
of the Defense Production Act Amendments of 1950, take those measures
necessary to ensure--
`(1) that all materials manufactured with assistance provided under sections
301, 302, or 303 are tested for qualification for use in the production
of existing and future weapon systems and existing and future development
programs, and
`(2) that all materials manufactured with assistance provided under
sections 301, 302, or 303 and qualified under paragraph (1) are used and
incorporated into the production of existing and future weapon systems
and existing and future development programs.'.
PART D--AMENDMENTS TO TITLE VII OF THE DEFENSE PRODUCTION ACT

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Section 701 of the Defense Production Act of 1950 (50 U.S.C. App. 2151)
is amended to read as follows:
`SEC. 701. SMALL BUSINESS.
`(a) PARTICIPATION- Small business concerns, including businesses owned
by women and business owned by minorities, shall be given the maximum
practicable opportunity to participate as contractors, and subcontractors
at various tiers, in all programs to maintain and strengthen the Nation's
industrial base and technology base undertaken pursuant to this Act.
`(b) ADMINISTRATION OF ACT- In administering the programs, implementing
regulations, policies, and procedures under this Act, requests, applications,
or appeals from small business concerns, including business concerns
owned by women and minorities, shall, to the maximum extent practicable,
be expeditiously handled.
`(c) ADVISORY COMMITTEE PARTICIPATION- Representatives of small business
concerns, including business concerns owned by women and minorities,
shall be afforded the maximum opportunity to participate in such advisory
committees as may be established pursuant to the provisions of this Act.
`(d) INFORMATION- Information about the Act and activities under the Act
shall be made available to small business concerns, including business
concerns owned by women and minorities.
`(e) ALLOCATIONS UNDER SECTION 101- Whenever the President makes a
determination to exercise any authority to allocate any material pursuant
to section 101 of this Act, small business concerns, including business
concerns owned by women and minorities, shall be accorded, so far as
practicable, a fair share of such material, in proportion to the share
received by such business concerns under normal conditions, giving such
special consideration as may be possible to new small business concerns,
including business concerns owned by women and minorities, or individual
firms facing undue hardship.'.

09f619497d833a08a8b21235e33907e865cb23b66388e49f47fe11aef70ffeca

Section 702 of the Defense Production Act of 1950 (50 U.S.C. App. 2152)
is amended to read as follows:
`SEC. 702. DEFINITIONS.
`As used in this Act--
`(1) CRITICAL COMPONENT- 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 military equipment as are identified by the
Secretary of Defense as being essential to the execution of the national
security strategy of the United States. Additionally, the Secretary shall
take into account those components identified as critical by a National
Security Assessment or Presidential determination as a result of a petition
filed under section 232 of the Trade Expansion Act of 1962 when identifying
critical components.
`(2) CRITICAL INDUSTRY FOR NATIONAL SECURITY- The term `critical industry
for national security' means any industry (or industry sector) identified
pursuant to section 2503(6) of title 10, United States Code, and such other
industries or industry sectors as may be designated by the President as
essential to provide industrial resources required for the execution of
the national security strategy of the United States.
`(3) CRITICAL TECHNOLOGY- The term `critical technology' includes any
technology that is included in 1 or more of the plans submitted pursuant to
section 2508 of title 10, United States Code (unless subsequently deleted),
or such other emerging or dual use technology as may be designated by
the President.
`(4) CRITICAL TECHNOLOGY ITEM- The term `critical technology item' shall
mean materials directly employing, derived from, or utilizing a critical
technology.
`(5) DEFENSE CONTRACTOR- The term `defense contractor' means any person
who enters into a contract with the United States to furnish materials,
industrial resources, or a critical technology, or to perform services
for the national defense.
`(6) DOMESTIC DEFENSE INDUSTRIAL BASE- The term `domestic defense 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 war or national emergency.
`(7) DOMESTIC SOURCE- The term `domestic source' means a business entity--
`(A) that performs in the United States or Canada substantially all of
the research and development, engineering, manufacturing, and production
activities required of such firm under a contract with the United States
relating to a critical component or a critical technology item, and
`(B) that procures from entities described in subparagraph (A) substantially
all of the components and assemblies required under a contract with the
United States relating to a critical component or critical technology item.
`(8) ESSENTIAL WEAPON SYSTEM- The term `essential weapon system' shall mean
a major weapon system and other items of military equipment identified
by the Secretary of Defense as being essential to the execution of the
national security strategy of the United States.
`(9) 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.
`(10) FOREIGN SOURCE- The term `foreign source' means a business entity
other than a `domestic source'.
`(11) 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 capacity.
`(12) 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, commodities, articles, components, products, or items.
`(13) NATIONAL DEFENSE- The term `national defense' means programs for
military and energy production or construction, military assistance to
any foreign nation, stockpiling, space, and any directly related activity.
`(14) 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.
`(15) SERVICES- The term `services' includes any effort that is needed or
incidental to--
`(A) the development, production, processing, distribution, delivery,
or use of an industrial resource or a critical technology item, or
`(B) the construction of facilities.'.

dc2f6db089f9ebd861b3e8ce8aa8ac73964dd374071cc0c631f6583784984985

Section 704 of the Defense Production Act of 1950 (50 U.S.C. App. 2154)
is amended to read as follows:
`SEC. 704. REGULATIONS AND ORDERS.
`(a) IN GENERAL- Subject to section 709 and subsection (b), the President
may prescribe such regulations and issue such orders  as the President
may determine to be appropriate to carry out the provisions of this Act.
`(b) LIMITATIONS- The President may not prescribe any regulation, or issue
any order, to carry out the provisions of this Act that is inconsistent
with or conflicts with the Federal Acquisition Regulation issued pursuant
to section 25 of the Office of Federal Procurement Policy Act.'.

0aee4dfdbee41cbe5fbc49018ece07b050bc34881d28d7bcda5b635f4efbc536

The Defense Production Act of 1950 (50 U.S.C. App. 2061 et seq.) is amended
by adding at the end the following new section:
`SEC. 722. DEFENSE INDUSTRIAL BASE INFORMATION SYSTEM.
`(a) Establishment Required-
`(1) IN GENERAL- The President, acting through the Secretary of Defense and
the heads of such other Federal agencies as the President may determine
to be appropriate, shall provide for the establishment of an information
system on the domestic defense industrial base which--
`(A) meets the requirements of this section; and
`(B) includes a systematic continuous procedure to collect and analyze
information necessary to evaluate--
`(i) the adequacy of domestic industrial capacity and capability in critical
components, technologies, and technology items essential to the national
security of the United States;
`(ii) dependence on foreign sources for industrial parts, components,
and technologies essential to defense production; and
`(iii) the reliability of foreign source supply of critical components
and technologies.
`(2) INCORPORATION OF DINET- The defense information network (DINET),
as established and maintained by the Secretary of Defense on the date of
the enactment of the Defense Production Act Amendments of 1991, shall be
incorporated into the system established pursuant to paragraph (1).
`(3) USE OF INFORMATION- Information collected and analyzed under the
procedure established pursuant to paragraph (1) shall constitute a basis
for making any determination to exercise any authority under this Act
and a procedure for using such information shall be integrated into the
decisionmaking process with regard to the exercise of any such authority.
`(b) SOURCES OF INFORMATION-
`(1) FOREIGN DEPENDENCE-
`(A) SCOPE OF INFORMATION REVIEW- The procedure established to meet the
requirement of subsection (a)(1)(B)(ii) shall address defense production
with respect to the operations of prime contractors and at least the first
2 tiers of subcontractors, or when a critical component (as that term is
defined by section 702(1)) is identified at a lower tier.
`(B) USE OF EXISTING DATA COLLECTION AND REVIEW CAPABILITIES- To the extent
feasible and appropriate, the President shall build upon existing methods
of data collection and analysis and shall integrate information available
from intelligence agencies with respect to industrial and technological
conditions in foreign countries.
`(C) INITIAL EMPHASIS ON PRIORITY LISTS- In establishing the procedure
referred to in subparagraph (A), the Secretary may place initial emphasis
on the production of parts and components relating to priority lists such as
the Commanders' in Chief Critical Items List, those components identified as
critical by a National Security Assessment or Presidential determination as
a result of a petition filed under section 232 of the Trade Expansion Act
of 1962, and the technologies identified as critical in the annual defense
critical technologies plan submitted pursuant to section 2508 of title 10,
United States Code.
`(2) Production base analysis-
`(A) TOP-TO-BOTTOM REVIEW- Effective on or after October 1, 1991, the
analysis of the production base for any major procurement project which
is included in the information system maintained pursuant to subsection
(a) shall, in addition to any information and analyses the President
may require--
`(i) include a review of all levels of acquisition and production, beginning
with any raw material, special alloy, or composite material involved in
the production and ending with the completed product;
`(ii) identify each contractor and subcontractor at each level of acquisition
and production with respect to such project which represents a potential
for delaying or preventing the production and acquisition, including the
identity of each contractor or subcontractor whose contract qualifies as a
foreign source or sole source contract and any supplier which is a foreign
or sole source for any item required in the production, including critical
components (as that term is defined by section 702(1)); and
`(iii) include information to permit appropriate management of accelerated
or surge production.
`(B) INITIAL REQUIREMENT FOR STUDY OF PRODUCTION BASES FOR NOT MORE THAN 6
MAJOR WEAPON SYSTEMS- In establishing the information system under subsection
(a), the President, acting through the Secretary of Defense, shall require
an analysis of the production base for not more than 2 weapons of each
military department which are major systems (as defined in section 2302(5)
of title 10, United States Code). Each major system study shall include
in the analysis a determination of critical components of that system.
`(3) CONSULTATION REGARDING THE CENSUS OF MANUFACTURERS-
`(A) IN GENERAL- The Secretary of Commerce, acting through the Bureau of
the Census, shall consult with the Secretary of Defense and the Director
of the Federal Emergency Management Agency with a view to improving the
application of information derived from the Census of Manufacturers to
the purposes of this section.
`(B) ISSUES TO BE ADDRESSED- Such consultations shall address improvements
in the level of detail, timeliness, and availability of input and output
analyses derived from the Census of Manufacturers necessary to facilitate
the purposes of this section.
`(c) STRATEGIC PLAN FOR DEVELOPING COMPREHENSIVE SYSTEM-
`(1) PLAN REQUIRED- Not later than December 31, 1992, the President shall
provide for the establishment of and report to Congress on a strategic plan
for developing a cost-effective, comprehensive information system capable of
identifying on a timely, ongoing basis vulnerability in critical components,
technologies, and technology items.
`(2) ASSESSMENT OF CERTAIN PROCEDURES- In establishing plan under paragraph
(1), the President shall assess the performance and cost-effectiveness of
procedures implemented under subsection (b) and shall seek to build upon
such procedures as appropriate.
`(d) CAPABILITIES OF SYSTEM-
`(1) IN GENERAL- In connection with the establishment of the information
system under subsection (a), the President shall direct the Secretary of
Defense, the Secretary of Commerce, and the heads of such other Federal
agencies as the President may determine to be appropriate to--
`(A) consult with each other and provide such information, assistance, and
cooperation as may be necessary to establish and maintain the information
system in a manner which allows the coordinated and efficient entry
of information on the domestic defense industrial base into, and the
withdrawal, subject to the protection of proprietary data, of information
on the domestic defense industrial base from the system on an on-line
interactive basis by the Department of Defense;
`(B) assure access to the information on the system, as appropriate,
by all participating Federal agencies, including each military department;
`(C) coordinate standards, definitions, and specifications for information
on defense production which is collected by the Department of Defense and
the military departments so that such information can be used by any Federal
agency or department which the President determines to be appropriate; and
`(D) assure that the information in the system is updated, as appropriate,
with the active assistance of the private sector.
`(2) TASK FORCE ON MILITARY-CIVILIAN PARTICIPATION- Upon the establishment
of the information system under subsection (a), the President shall convene
a task force consisting of the Secretary of Defense, the Secretary of
Commerce, the Secretary of each military department, and the heads of such
other Federal agencies and departments as the President may determine to
be appropriate to establish guidelines and procedures to ensure that all
Federal agencies and departments which acquire information with respect to
the domestic defense industrial base are fully participating in the system,
unless the President determines that all appropriate Federal agencies and
departments, including each military department, are voluntarily providing
information which is necessary for the system to carry out the purposes
of this Act and chapter 148 of title 10, United States Code.
`(e) REPORT ON SUBCONTRACTOR AND SUPPLIER BASE-
`(1) REPORT REQUIRED- At the times required under paragraph (4), the
President shall issue a report which includes--
`(A) a list of critical components, technologies, and technology items
for which there is found to be inadequate domestic industrial capacity or
capability; and
`(B) an assessment of those subsectors of the economy of the United
States which--
`(i) support production of any component, technology, or technology item
listed pursuant to paragraph (1); or
`(ii) have been identified as being critical to the development and
production of components required for the production of weapons, weapon
systems, and other military equipment essential to the national defense.
`(2) MATTERS TO BE CONSIDERED- The assessment made under paragraph (1)(B)
shall consider--
`(A) the capacity of domestic sources, especially commercial firms, to
fulfill peacetime requirements and graduated mobilization requirements
for various items of supply and services;
`(B) any trend relating to the capabilities of domestic sources to meet
such peacetime and mobilization requirements;
`(C) the extent to which the production or acquisition of various items
of military material is dependent on foreign sources; and
`(D) any reason for the decline of the capabilities of selected sectors
of the United States economy necessary to meet peacetime and mobilization
requirements, including stability of defense requirements, acquisition
policies, vertical integration of various segments of the industrial base,
superiority of foreign technology and production efficiencies, foreign
government support of nondomestic sources, and offset arrangements.
`(3) POLICY RECOMMENDATIONS- The report may provide specific policy
recommendations to correct deficiencies identified in the assessment,
which would help to strengthen domestic sources.
`(4) TIME FOR ISSUANCE- The report required by paragraph (1) shall be issued
not later than July 1 of each odd-numbered year which begins after 1991,
based upon data from the prior fiscal year and such prior fiscal years as
may be appropriate.
`(5) RELEASE OF UNCLASSIFIED REPORT- The report required by this subsection
may be classified. An unclassified version of the report shall be available
to the public.
`(f) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
to the President for purposes of this section not more than $10,000,000,
to remain available until expended, of which not more than $3,000,000
shall be available for the purposes of subsection (b)(2).'.

9a81294ab4a038f3f0a684e32f9ce6a5c674bd4633b18d5b2febf149abe8dee0

(a) IN GENERAL- Section 709 of the Defense Production Act of 1950 (50
U.S.C. 2159) is amended to read as follows:
`SEC. 709. PUBLIC PARTICIPATION IN RULEMAKING.
`(a) EXEMPTION FROM THE ADMINISTRATIVE PROCEDURE ACT- Any regulation
prescribed or order issued under this Act shall not be subject to sections
551 through 559 of title 5, United States Code.
`(b) OPPORTUNITY FOR NOTICE AND COMMENT-
`(1) IN GENERAL- Except as provided in subsection (c), any regulation
prescribed or order issued under this Act shall be published in the
Federal Register and opportunity for public comment shall be provided for
not less than 30 days, consistent with the requirements of section 553(b)
of title 5, United States Code.
`(2) WAIVER FOR TEMPORARY PROVISIONS- The requirements of paragraph (1)
may be waived, if--
`(A) the officer authorized to prescribe the regulation or issue the order
finds that urgent and compelling circumstances make compliance with such
requirements impracticable;
`(B) the regulation is prescribed or order is issued on a temporary
basis; and
`(C) the publication of such temporary regulation or order is accompanied by
the finding made under clause (A) (and a brief statement of the reasons for
such finding) and an opportunity for public comment is provided for not less
than 30 days of public comment before any regulation or order becomes final.
`(3) All comments received during the public comment period specified
pursuant to paragraph (1) or (2) shall be considered and the publication
of the final regulation or order shall contain written responses to such
comments.
`(c) PUBLIC COMMENT ON PROCUREMENT REGULATIONS- Any procurement policy,
regulation, procedure, or form (including any amendment or modification of
any such policy, regulation, procedure, or form) issued under this Act shall
be subject to section 22 of the Office of Federal Procurement Policy Act.'.
(b) SCOPE OF APPLICATION- Section 709 of the Defense Production Act of
1950 (50 U.S.C. App. 2159), as amended by subsection (a) of this section,
shall not apply to any regulation prescribed or order issued in proposed
or final form on or before the date of enactment of this Act.
PART E--TECHNICAL AMENDMENTS

cc913337f383984bf3f1f445b443fc237a28af48788e658dc46bc11c43655cf0

Section 301(e)(2)(B) of the Defense Production Act of 1950 (50
U.S.C. App. 2091(e)(2)(B)) is amended by striking `and to the Committees
on Banking and Currency of the respective Houses' and inserting `and
to the Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Banking, Finance and Urban Affairs of the House of
Representatives'.

0327817ff451357748a3fe1b7ed5c09bc573883ad790de846dfa3be4e7010675

Section 705 of the Defense Production Act of 1950 (50 U.S.C. App. 2155)
is amended--
(1) in subsection (a), by striking `subpena' and inserting `subpoena';
(2) by redesignating subsections (c), (d), (e), and (f) as subsections (b),
(c), (d), and (e), respectively;
(3) in subsection (c) (as redesignated by paragraph (2)), by striking
`$1,000' and inserting `$10,000'; and
(4) in subsection (d) (as redesignated by paragraph (2)), by striking all
after the first sentence.

a83c3d7fcd121f6a32f9516c7ce6dd58a45ab357a41acaec20f7955143385f46

(a) NOTICE OF APPOINTMENT AND FINANCIAL DISCLOSURE FOR EMPLOYEES SERVING
WITHOUT COMPENSATION- Section 710(b)(6) of the Defense Production Act of
1950 (50 U.S.C. App. 2160(b)(6)) is amended to read as follows:
`(6) NOTICE AND FINANCIAL DISCLOSURE REQUIREMENTS-
`(A) PUBLIC NOTICE OF APPOINTMENT- The head of any department or agency who
appoints any individual under this subsection shall publish a notice of such
appointment in the Federal Register, including the name of the appointee,
the employing department or agency, the title of the appointee's position,
and the name of the appointee's private employer.
`(B) FINANCIAL DISCLOSURE- Any individual appointed under this subsection who
is not required to file a financial disclosure report pursuant to section
101 of the Ethics in Government Act of 1978, shall file a confidential
financial disclosure report pursuant to section 107 of such Act with the
appointing department or agency.'.
(b) TECHNICAL AMENDMENTS- Section 710(b) of the Defense Production Act of
1950 (50 U.S.C. App. 2160(b)) is amended--
(1) in paragraph (7)--
(A) by striking `Chairman of the United States Civil Service Commission'
and inserting `Director of the Office of Personnel Management'; and
(B) by striking `and the Joint Committee on Defense Production'; and
(2) in paragraph (8), by striking `transportation and not to exceed $15 per
diem in lieu of subsistence while away from their homes and regular places
of business pursuant to such appointment' and inserting `reimbursement
for travel, subsistence, and other necessary expenses incurred by them
in carrying out the functions for which they were appointed in the same
manner as persons employed intermittently in the Federal Government are
allowed expenses under section 5703 of title 5, United States Code'.

03657e4507d0b60e7cdec62d4383c51a8e4cc8caa5c481bfe7d12e8de013693e

Section 711(a)(1) of the Defense Production Act of 1950 (50 U.S.C. App. 2161)
is amended by striking `Bureau of the Budget' and inserting `Office of
Management and Budget'.
PART F--REPEALERS AND CONFORMING AMENDMENTS

12dd5db9dc927f17a729157d6989a95964f921d0f28e7534c9404b4c76db0766

Section 307 of the Defense Production Act of 1950 (50 U.S.C. App. 2097)
is amended--
(1) in subsection (b), by striking the 2d sentence; and
(2) by striking subsection (c) and all that follows through the end of
the section.

40dcad9e8a265b11466e97e9d82b49197a9b1ebaa1df219349a2f2c7aac3806e

Section 711 of the Defense Production Act of 1950 (50 U.S.C. App. 2161)
is amended--
(1) by striking subsection (b),
(2) in subsection (a)--
(A) by striking `(a)(1) Except as provided in paragraph (2) and paragraph
(4)' and inserting `(a) Except as provided in subsection (c)',
(B) in the parenthetical by striking `and for the payment of interest
under subsection (b) of this section',
(C) by striking paragraph (2),
(D) by redesignating paragraph (3) as subsection (b), and
(E) in paragraph (4)--
(i) by striking subparagraph (B), and
(ii) by redesignating the remainder of paragraph (4) as subsection (c).

8d9066d7d083f5c6f503e8d437b3a413bff031d42f580d144a60ee4d3682551e

Section 712 of the Defense Production Act of 1950 (50 U.S.C. App. 2162)
is repealed.

e759fa34d713c36e9b9f62c6f9c88526810aae46def443f072433c1713530d18

Section 716 of the Defense Production Act of 1950 (50 U.S.C. App. 2165)
is repealed.

c5dac3bcbcbe952758ec207dfc95133dd2d94c4bbc3743b36ef418b1c2bd7a34

SUBMITTED.
Section 718 of the Defense Production Act of 1950 (50 U.S.C. App. 2167)
is repealed.

a341850bc13718db2f2eb6390c57e91640e3ddf4ac611836f96565e1ca0f8a5f

Section 720 of the Defense Production Act of 1950 (50 U.S.C. App. 2169)
is repealed.
PART G--REAUTHORIZATION OF SELECTED PROVISIONS

41939bd73b2b2d5f994e22bcc76d4ee18a0becac90b98a49199767b6283c9ceb

Section 711(c) of the Defense Production Act of 1950 (as amended by section
152 of this Act) is amended to read as follows:
`(c) There are authorized to be appropriated for each of fiscal years 1992,
1993, and 1994 not to exceed $200,000,000 to carry out the provisions of
title III of this Act.'.

b36ab42e987930bfabd589c14645804b1c8686056a51ef0653daf8191d68459f

The 1st sentence of section 717(a) of the Defense Production Act of 1950
(50 U.S.C. App. 2166(a)) is amended by striking `September 30, 1991'
and inserting `September 30, 1994'.

9d04379f1da8b73561b1bff2c4ec1ce1f5c2cece0bb75eca59787486cc3c039c

Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 2170)
is amended by adding at the end the following new subsection:
`(i) QUANDRENNIAL REPORT-
`(1) IN GENERAL- Not later than the date which is 1 year after the date of
the enactment of the Defense Production Act Amendments of 1991, and every
4 years after that date, the Secretary of the Treasury shall complete and
submit to the Congress a report which--
`(A) evaluates whether there is credible evidence of a coordinated strategy
by one or more countries or companies to acquire United States companies,
or significant control of United States industries, involved in research,
development, or production of critical technologies for which the United
States is a leading producer; and
`(B) evaluates whether there are industrial espionage activities directed
by foreign governments against private United States companies for the
purpose of obtaining commercial secrets related to critical technologies.
`(2) CLASSIFIED REPORTS-
`(A) IN GENERAL- The reports required by this subsection may be classified.
`(B) UNCLASSIFIED VERSIONS- An unclassified version of each report required
by this subsection shall be available to the public.'.

66cad97915b6a4293a885a9b4d43d196504bd3feba9ed9e2ebc397e2d7e0bd1c

(a) SUSPENSION OR DEBARMENT AUTHORIZED- Subpart 9.4 of title 48, Code of
Federal Regulations (or any successor regulation) shall be amended to
specify the circumstances under which a contractor, who has engaged in
an unfair trade practice, as defined in subsection (b), may be found to
presently lack such business integrity or business honesty that seriously
and directly affects the responsibility of the contractor to perform any
contract awarded by the Federal Government or perform a subcontract under
such a contract.
(b) DEFINITIONS- For purposes of this section, the term `unfair trade
practice' means the commission of any of the following acts by a contractor:
(1) An unfair trade practice, as determined by the International Trade
Commission, for a violation of section 337 of the Tariff Act of 1930
(19 U.S.C. 1337).
(2) A violation, as determined by the Secretary of Commerce, of any agreement
of the group known as the `Coordinating Committee' for purposes of the
Export Administration Act of 1979 or any similar bilateral or multilateral
export control agreement.
(3) A knowingly false statement regarding a material element of a
certification concerning the foreign content of an item of supply, as
determined by the Secretary of the department or the head of the agency
to which such certificate was furnished.

c0fb632f1a65fc981f4c41e565afead49dd28f790f12ce591d753b2efa39bc3d

TITLE II

-ADDITIONAL PROVISIONS TO IMPROVE INDUSTRIAL PREPAREDNESS

(a) CONGRESSIONAL COMMISSION ON THE EVALUATION OF DEFENSE INDUSTRIAL BASE
POLICY ESTABLISHED- There is hereby established a commission to be known
as the Congressional Commission on the Evaluation of the Defense Industrial
Base Policy (hereafter in this section referred to as the `Commission').
(b) DUTIES OF THE COMMISSION-
(1) IN GENERAL- The Commission shall develop criteria for maintaining the
strength of the domestic defense industrial base for purposes of supporting
the national security strategy of the President.
(2) CONSIDERATION OF AGENCY PROCEDURES AND ACTIVITIES- In developing
criteria under paragraph (1), the Commission shall consider, with respect
to each Federal agency and department which has any responsibility for
maintaining the strength of the domestic defense industrial base--
(A) the extent to which the statutory authority, policies, regulations,
organizational arrangements, plans, programs, and budgets of such agency
or department are adequate for the purpose of maintaining the strength of
the domestic defense industrial base; and
(B) the degree to which such authority, policies, regulations, arrangements,
plans, programs, and budgets are being effectively implemented and
sufficiently coordinated (within the agency or department and with other
Federal agencies and departments).
(3) EVALUATION OF CIVIL-MILITARY INTEGRATION- The Commission, in developing
criteria under paragraph (1) and considering agency procedures and
activities under paragraph (2) shall evaluate the feasibility of integrating
defense research, development, production, acquisition, and other relevant
contracting activities with similar activities in the commercial sector,
and the degree to which such integration is being implemented by the agency
or department.
(c) MEMBERSHIP-
(1) NUMBER AND APPOINTMENT- The Commission shall be composed of 9 members
as follows:
(A) 3 members appointed by the Speaker of the House of Representatives (2
of whom shall be appointed upon the recommendation of the majority leader
of the House of Representatives and 1 of whom shall be appointed upon the
recommendation of the minority leader of the House of Representatives) from
among individuals who are especially qualified to serve on the Commission
by reason of their education, training, or experience.
(B) 3 members appointed by the President pro tempore of the Senate (2 of
whom shall be appointed upon the recommendation of the majority leader of
the Senate and 1 of whom shall be appointed upon the recommendation of the
minority leader of the Senate) from among individuals who are especially
qualified to serve on the Commission by reason of their education, training,
or experience.
(C) 3 members appointed by a majority of the members appointed under
subparagraphs (A) and (B) from among individuals who are especially
qualified to serve on the Commission by reason of their education, training,
or experience.
(2) TERMS-
(A) IN GENERAL- Each member shall be appointed for the life of the
Commission.
(B) VACANCY- A vacancy in the Commission shall be filled in the manner in
which the original appointment was made.
(3) PROHIBITION ON COMPENSATION-
(A) IN GENERAL- Except as provided in subparagraph (B), members of the
Commission shall serve without pay.
(B) TRAVEL EXPENSES- Each member shall receive travel expenses, including
per diem in lieu of subsistence, in accordance with sections 5702 and 5703
of title 5, United States Code.
(4) QUORUM- A majority of the members of the Commission shall constitute
a quorum but a lesser number may hold hearings.
(5) CHAIRPERSON- The Chairperson of the Commission shall be elected by
the members of the Commission from among the individuals appointed under
paragraph (1)(C).
(6) MEETINGS- The Commission shall meet at the call of the Chairperson or
a majority of the members.
(d) POWERS OF COMMISSION-
(1) HEARINGS AND SESSIONS-
(A) IN GENERAL- The Commission may, for the purpose of carrying out this
section, hold hearings, sit and act at times and places, take testimony,
and receive evidence as the Commission considers appropriate.
(B) ADMINISTRATION OF OATHS- The Commission may administer oaths or
affirmations to witnesses appearing before the Commission.
(2) POWERS OF MEMBERS AND AGENTS- Any member or agent of the Commission may,
if authorized by the Commission, take any action which the Commission is
authorized to take.
(3) OBTAINING OFFICIAL DATA-
(A) AUTHORITY TO OBTAIN- Notwithstanding any provision of section 552a of
title 5, United States Code, the Commission may secure directly from any
department or agency of the United States information necessary to enable
the Commission to carry out this Act.
(B) PROCEDURE- Upon request of the Chairperson of the Commission, the head
of that department or agency shall furnish the information requested to
the Commission.
(C) USE OF INFORMATION- The Commission shall be subject to the same
limitations with respect to the use or disclosure of any confidential
or privileged information, trade secrets, or other proprietary or
business-sensitive information which is obtained from any department or
agency under this subsection as are applicable to the use or disclosure
of such information or secrets by such department or agency.
(4) MAILS- The Commission may use the United States mails in the same
manner and under the same conditions as other departments and agencies of
the United States.
(5) ADMINISTRATIVE SUPPORT SERVICES- Upon the request of the Commission,
the Administrator of General Services shall provide to the Commission,
on a reimbursable basis, the administrative support services necessary
for the Commission to carry out its responsibilities under this section.
(e) STAFF OF COMMISSION; EXPERTS AND CONSULTANTS-
(1) STAFF- Subject to such regulations as the Commission may prescribe
and with the approval of the Commission, the Chairperson may appoint and
fix the pay of such personnel as the Chairperson considers appropriate.
(2) APPLICABILITY OF CERTAIN CIVIL SERVICE LAWS- The staff of the Commission
may be appointed without regard to the provisions of title 5, United States
Code, governing appointments in the competitive service, and may be paid
without regard to the provisions of chapter 51 and subchapter III of chapter
53 of that title relating to classification and General Schedule pay rates,
except that an individual so appointed may not receive pay in excess of
the annual rate of basic pay payable for GS-18 of the General Schedule.
(3) EXPERTS AND CONSULTANTS- Subject to such regulations as the Commission
may prescribe, the Chairperson may procure temporary and intermittent
services under section 3109(b) of title 5, United States Code, but at
rates for individuals not to exceed the annual rate of basic pay payable
for GS-18 of the General Schedule.
(4) STAFF OF FEDERAL AGENCIES- Upon request of the Chairperson, the head
of any Federal department or agency may detail, on a reimbursable basis,
any of the personnel of that department or agency to the Commission to
assist it in carrying out its duties under this Act.
(f) DOMESTIC DEFENSE INDUSTRIAL BASE DEFINED- For the purposes of this
section, the term `domestic defense industrial base' means--
(1) the industries in the United States and Canada which at any time are
providing national defense materials and services; and
(2) the industries in the United States and Canada which reasonably would
be expected to provide national defense materials and services in a time
of emergency or war.
(g) REPORT- The Commission shall submit to the Congress and the President--
(1) an interim report at the end of the 1-year period beginning on the
date the Commission first meets with a majority of members present; and
(2) a final report not later than September 1, 1993, on the findings of the
Commission under this section with respect to the domestic defense industrial
base, together with such recommendations for legislative, administrative,
or policy action as the Commission may determine to be appropriate.
(h) TERMINATION- The Commission shall cease to exist on September 30, 1994.
(i) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated
for fiscal years 1992, 1993, and 1994 an amount not to exceed $500,000 to
carry out the purposes of this section.

7838cbf7cae784d7f15a0988fbf9ac8ff9dbb304cc4250fcd8820a006f55917a

Section 203 of the Geothermal Energy Research, Development, and Demonstration
Act of 1974 (30 U.S.C. 1143) (relating to period of guaranties and interest
assistance) is amended by striking `1990' and inserting `1993'.

7c93490b80f976c874564d5a7b563ee44e5e24339c7b18d05cc2ae34c370989f

TITLE III

-AMENDMENT TO RELATED LAWS

This Act shall take effect on September 30, 1991.

d41d03ea60e9589a6bdc99b52f4836391246dadb5019694568da2905693ca2cb

TITLE IV

-EFFECTIVE DATE

(a) The Secretary shall insure that the requirements of the Buy American
Act of 1933, as amended, apply to all procurements made under this Act.
(b) PROHIBITION AGAINST FRAUDULENT USE OF `MADE IN AMERICA' LABELS- If it
has been finally determined by a court or Federal agency that any person
intentionally affixed a label bearing a `Made in America' inscription, or
any inscription with the same meaning, to any product sold in or shipped
to the United States that is not made in the United States, that person
shall be ineligible to receive any contract or subcontract made with
funds authorized under this title pursuant to the debarment, suspension,
and ineligibility procedures in subpart 9.4 of chapter 1 of title 48,
Code of Federal Regulations.
Amend the title so as to read: `An Act to reauthorize the Defense Production
Act of 1950.'.
Attest:
Clerk.
cS 347 EAH1S----2
cS 347 EAH1S----3
cS 347 EAH1S----4
cS 347 EAH1S----5

2a7606066b4c06c15151d63e3acb0fbdb8997f0c6b4d5fb90b763fbc6dc5739a

Defense Production Act Amendments of 1991 — S. 347

Other Sections

TITLE I

TITLE V

TITLE II

TITLE III

TITLE IV

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