[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2487 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                S. 2487

   To provide for an enhanced domestic content requirement for Navy 
                         shipbuilding programs.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 25, 2023

  Ms. Baldwin introduced the following bill; which was read twice and 
              referred to the Committee on Armed Services

_______________________________________________________________________

                                 A BILL


 
   To provide for an enhanced domestic content requirement for Navy 
                         shipbuilding programs.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. 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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