,,ii #aafth ,,congress #b;d ,session ,s4 #dfhg ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #bd1 #bjbj ,ms4 ,baldwin introduced the following bill2 which was read twice and referred to the ,committee on ,homeland ,security and ,governmental ,affairs ,a ,,bill ,to expand domestic content requirements for certain shipboard components1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,made in ,america ,shipbuilding ,act of #bjbj4 #b4 ,domestic shipbuilding requirement 7a7 ,in general ,the head of an executive agency may not enter into a contract related to the acquisition1 construction1 or conversion of a vessel unless the vessel is to be constructed or converted in the ,united ,states4 7b7 ,executive agency defined ,in this section1 the term executive agency has the meaning given the term in section #acc of title #da1 ,united ,states ,code4 #c4 ,domestic sourcing requirement for shipboard components 7a7 ,in general ,chapter #dg of title #da1 ,united ,states ,code1 is amended by adding at the end the following new section3 #dgad4 ,domestic sourcing requirement for shipboard components 7a7 ,requirement for ,united ,states manufacture 7#a7 ,limitation on procurements ,the head of an executive agency may procure any of the following components for vessels only if the items are manufactured in the ,united ,states3 7,a7 ,in general ,the following components for vessels3 7i7 ,air circuit breakers4 7ii7 ,welded shipboard anchor and mooring chain with a diameter of four inches or less4 7iii7 ,auxiliary equipment1 including pumps1 for all shipboard services4 7iv7 ,propulsion system components1 including main propulsion engines1 hybrid drive systems1 propulsion shafting1 engine crankshafts1 reduction gears1 and propellers4 7v7 ,shipboard cranes4 7vi7 ,spreaders for shipboard cranes4 7vii7 ,power ,distribution equipment1 ,energy ,store ,systems1 energy storage_/magazine equipment4 7viii7 ,auxiliary propulsion units and systems1 including bow and tunnel thrusters1 waterjets1 dynamic positioning systems1 and hybrid propulsion systems4 7ix7 ,ship service and emergency power generation equipment 7prime movers and generators74 7x7 ,military ,qualified ,wire and ,cable and derived products4 7xi7 ,specialized ,valves for pneumatic1 fuel1 firefighting1 countermeasure wash down1 and chilled water systems4 7xii7 ,low voltage 7,,lv7 and high voltage 7,,hv7 switchgear4 7xiii7 ,power converters4 7xiv7 ,power inverters4 7xv7 ,frequency converters4 7xvi7 ,aircraft ,electrical ,starting ,stations 7,,aess74 7xvii7 ,degaussing systems4 7xviii7 ,static ,automatic ,bus ,transfer ,switches 7,s,a,b,ts74 7xix7 ,inertial navigation systems and gyrocompass4 7xx7 ,capstans4 7xxi7 ,winches4 7xxii7 ,hoists4 7xxiii7 ,outboard motors4 7xxiv7 ,windlasses4 7,b7 ,other components ,the following components of vessels1 to the extent they are unique to marine applications3 gyrocompasses1 electronic navigation chart systems1 steering controls1 pumps1 propulsion and machinery control systems1 and totally enclosed lifeboats4 7,c7 ,valves and machine tools ,items in the following categories3 7i7 ,powered and non-powered valves in ,federal ,supply ,classes #dhaj and #dhbj used in piping for naval surface ships and submarines4 7ii7 ,machine tools in the ,federal ,supply ,classes for metal-working machinery numbered #cdje1 #cdjh1 #cdaj through #cdai1 #cdbf1 #cdcc1 #cdch1 #cdda through #cddc1 #cdde1 #cddf1 #cddh1 #cddi1 #cdfj1 and #cdfa4 7#b7 ,applicability to certain items ,paragraph 7#a7 does not apply to a procurement of spare or repair parts needed to support components for vessels produced or manufactured outside the ,united ,states4 7#c7 ,waiver authority ,the head of an executive agency may waive the limitation in paragraph 7#a7 with respect to the procurement of an item listed in that paragraph if the head of the agency determines that any of the following apply3 7,a7 ,application of the limitation would increase the cost of the overall acquisition by more than #be percent or cause unreasonable delays to be incurred4 7,b7 ,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 acquired4 7,c7 ,application of the limitation would result in the existence of only one domestic source for the item4 7,d7 ,application of the limitation is not in the national security interests of the ,united ,states4 7#d7 ,implementation of waiver authority 7,a7 ,non-delegation of authority ,the head of an agency may not delegate the waiver authority under paragraph 7#c74 7,b7 ,publication ,not later than #cj days after exercising the waiver authority under paragraph 7#c71 the head of the agency shall publish in an easily identifiable location on the website of the agency information regarding the waiver1 including a detailed justification for the waiver4 7#e7 ,annual report ,not later than #ahj days after the end of each fiscal year1 the head of each executive agency that has used a waiver described in this section in the fiscal year shall submit to the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate and the ,committee on ,oversight and ,reform of the ,house of ,representatives a report on the total amount of waivers used and detailed information regarding and justification for the waiver4 7b7 ,components containing specialty metals 7#a7 ,limitation on procurements ,the head of an executive agency may not enter into a contract for the procurement of end items or components for ships that contain a specialty metal not melted or produced in the ,united ,states4 7#b7 ,availability exception 7,a7 ,in general ,paragraph 7#a7 does not apply to the extent that the head of an executive agency determines that compliant specialty metal of satisfactory quality and sufficient quantity1 and in the required form1 cannot be procured as and when needed4 ,for purposes of the preceding sentence1 the term compliant specialty metal means specialty metal melted or produced in the ,united ,states4 7,b7 ,applicability ,this paragraph applies to prime contracts and subcontracts at any tier under such contracts4 7#c7 ,exception for certain acquisitions ,paragraph 7#a7 does not apply to the following3 7,a7 ,acquisitions outside the ,united ,states in support of combat operations or in support of contingency operations4 7,b7 ,acquisitions for which the use of procedures other than competitive procedures has been approved on the basis of section #ccjd7;c7 of this title1 relating to unusual and compelling urgency of need4 7#d7 ,exception relating to agreements with foreign governments ,paragraph 7#a7 does not preclude the acquisition of a specialty metal if-- 7,a7 the acquisition is necessary-- 7i7 to comply with agreements with foreign governments requiring the ,united ,states to purchase supplies from foreign sources for the purposes of offsetting sales made by the ,united ,states ,government or ,united ,states firms under approved programs serving defense requirements2 or 7ii7 in furtherance of agreements with foreign governments in which both such governments agree to remove barriers to purchases of supplies produced in the other country or services performed by sources of the other country2 and 7,b7 any such agreement with a foreign government complies1 where applicable1 with the requirements of section #cf of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bggf7 and with section #bdeg of title #aj4 7#e7 ,exception for small purchases ,paragraph 7#a7 does not apply to acquisitions in amounts not greater than the simplified acquisition threshold referred to in section #acd of this title4 7#f7 ,exception for purchases of electronic components ,paragraph 7#a7 does not apply to acquisitions of electronic components1 unless the head of the agency1 with the concurrence of the ,secretary of ,defense and upon the recommendation of the ,strategic ,materials ,protection ,board pursuant to section #ahg of title #aj1 determines that the domestic availability of a particular electronic component is critical to national security4 7#g7 ,applicability to acquisitions of commercial items 7,a7 ,in general ,except as provided in subparagraphs 7,b7 and 7,c71 this section applies to acquisitions of commercial items1 notwithstanding sections #aijf and #aijg of this title4 7,b7 ,exceptions ,this section does not apply to contracts or subcontracts for the acquisition of commercially available off-the-shelf items1 as defined in section #ajd of this title1 other than-- 7i7 contracts or subcontracts for the acquisition of specialty metals1 including mill products1 such as bar1 billet1 slab1 wire1 plate and sheet1 that have not been incorporated into end items1 subsystems1 assemblies1 or components2 7ii7 contracts or subcontracts for the acquisition of forgings or castings of specialty metals1 unless such forgings or castings are incorporated into commercially available off-the-shelf end items1 subsystems1 or assemblies2 7iii7 contracts or subcontracts for commercially available high performance magnets unless such high performance magnets are incorporated into commercially available off-the-shelf end items or subsystems2 and 7iv7 contracts or subcontracts for commercially available off-the-shelf fasteners1 unless such fasteners are-- 7,i7 incorporated into commercially available off-the-shelf end items1 subsystems1 assemblies1 or components2 or 7,,ii7 purchased as provided in subparagraph 7,c74 7,c7 ,inapplicability to certain fasteners ,this subsection does not apply to fasteners that are commercial items that are purchased under a contract or subcontract with a manufacturer of such fasteners1 if the manufacturer has certified that it will purchase1 during the relevant calendar year1 an amount of domestically melted specialty metal1 in the required form1 for use in the production of such fasteners for sale to executive agencies and other customers1 that is not less than #ej percent of the total amount of the specialty metal that it will purchase to carry out the production of such fasteners4 7#h7 ,exceptions for purchases of specialty metals below minimum threshold 7,a7 ,in general ,notwithstanding paragraph 7#a71 the head of an executive agency may accept delivery of an item containing specialty metals that were not melted in the ,united ,states if the total amount of noncompliant specialty metals in the item does not exceed #b percent of the total weight of specialty metals in the item4 7,b7 ,exception ,this paragraph does not apply to high performance magnets4 7#i7 ,streamlined compliance for commercial derivative military articles 7,a7 ,in general ,paragraph 7#a7 shall not apply to an item acquired under a prime contract if the head of an executive agency determines that-- 7i7 the item is a commercial derivative military article2 and 7ii7 the contractor certifies that the contractor and its subcontractors have entered into a contractual agreement1 or agreements1 to purchase an amount of domestically melted specialty metal in the required form1 for use during the period of contract performance in the production of the commercial derivative military article and the related commercial article1 that is not less than the greater of-- 7,i7 an amount equivalent to #abj percent of the amount of specialty metal that is required to carry out the production of the commercial derivative military article 7including the work performed under each subcontract72 or 7,,ii7 an amount equivalent to #ej percent of the amount of specialty metal that is purchased by the contractor and its subcontractors for use during such period in the production of the commercial derivative military article and the related commercial article4 7,b7 ,determination of amount of specialty metal required ,for the purposes of this paragraph1 the amount of specialty metal that is required to carry out the production of the commercial derivative military article includes specialty metal contained in any item1 including commercially available off-the-shelf items1 incorporated into such commercial derivative military article4 7#aj7 ,national security waiver 7,a7 ,in general ,notwithstanding paragraph 7#a71 the head of an executive agency may accept the delivery of an end item containing noncompliant materials if the head of the executive agency determines in writing that acceptance of such end item is necessary to the national security interests of the ,united ,states4 7,b7 ,requirements ,a written determination under subparagraph 7,a7-- 7i7 shall specify the quantity of end items to which the waiver applies and the time period over which the waiver applies2 and 7ii7 shall be provided to ,congress prior to making such a determination 7except that in the case of an urgent national security requirement1 such certification may be provided to ,congress up to #g days after it is made74 7,c7 ,knowing or willful noncompliance 7i7 ,determination ,in any case in which the head of an executive agency makes a determination under subparagraph 7,a71 the head of the executive agency shall determine whether or not the noncompliance was knowing and willful4 7ii7 ,not knowing or willful noncompliance ,if the head of the executive agency determines that the noncompliance was not knowing or willful1 the head of the executive agency shall ensure that the contractor or subcontractor responsible for the noncompliance develops and implements an effective plan to ensure future compliance4 7iii7 ,knowing or willful noncompliance ,if the head of the executive agency determines that the noncompliance was knowing or willful1 the head of the executive agency shall-- 7,i7 require the development and implementation of a plan to ensure future compliance2 and 7,,ii7 consider suspending or debarring the contractor or subcontractor until such time as the contractor or subcontractor has effectively addressed the issues that lead to such noncompliance4 7#aa7 ,specialty metal defined ,in this subsection1 the term specialty metal means any of the following3 7,a7 ,steel-- 7i7 with a maximum alloy content exceeding one or more of the following limits3 manganese1 #a4fe percent2 silicon1 #j4fj percent2 or copper1 #j4fj percent2 or 7ii7 containing more than #j4be percent of any of the following elements3 aluminum1 chromium1 cobalt1 columbium1 molybdenum1 nickel1 titanium1 tungsten1 or vanadium4 7,b7 ,metal alloys consisting of nickel1 iron-nickel1 and cobalt base alloys containing a total of other alloying metals 7except iron7 in excess of #aj percent4 7,c7 ,titanium and titanium alloys4 7,d7 ,zirconium and zirconium base alloys4 7#ab7 ,additional definitions ,in this subsection3 7,a7 ,the term ,united ,states includes possessions of the ,united ,states4 7,b7 ,the term component has the meaning provided in section #aje of this title4 7,c7 ,the term acquisition has the meaning provided in section #aca of this title4 7,d7 ,the term required form-- 7i7 shall not apply to end items or to their components at any tier2 and 7ii7 means in the form of mill product1 such as bar1 billet1 wire1 slab1 plate or sheet1 and in the grade appropriate for the production of-- 7,i7 a finished end item delivered to the executive agency2 or 7,,ii7 a finished component assembled into an end item delivered to the executive agency4 7,e7 ,the term commercially available off-the-shelf has the meaning provided in section #ajd of this title4 7,f7 ,the term assemblies means items forming a portion of a system or subsystem that can be provisioned and replaced as an entity and which incorporates multiple1 replaceable parts4 7,g7 ,the term commercial derivative military article means an item procured by the ,department of ,defense that is or will be produced using the same production facilities1 a common supply chain1 and the same or similar production processes that are used for the production of articles predominantly used by the general public or by nongovernmental entities for purposes other than governmental purposes4 7,h7 ,the term subsystem means a functional grouping of items that combine to perform a major function within an end item1 such as electrical power1 attitude control1 and propulsion4 7,i7 ,the term end item means the final production product when assembled or completed1 and ready for issue1 delivery1 or deployment4 7,j7 ,the term subcontract includes a subcontract at any tier4 7c7 ,use of ,united ,states steel1 iron1 aluminum1 and manufactured products 7#a7 ,in general ,the head of an executive agency may not enter into a contract related to the construction of a vessel unless the steel1 iron1 aluminum1 and manufactured products to be used in the construction of the vessel are produced in the ,united ,states4 7#b7 ,exceptions ,the provisions of paragraph 7#a7 shall not apply where the head of an executive agency finds-- 7,a7 that their application would be inconsistent with the public interest2 7,b7 that such materials and products are not produced in the ,united ,states in sufficient and reasonably available quantities and of a satisfactory quality2 or 7,c7 that inclusion of domestic material will increase the cost of the overall project contract by more than #be percent4 7#c7 ,implementation of exceptions 7,a7 ,non-delegation of authority ,the head of an agency may not delegate the authority to make a finding described in paragraph 7#b74 7,b7 ,publication ,not later than #cj days after making a finding described in paragraph 7#b71 the head of the agency shall publish in an easily identifiable location on the website of the agency information regarding the finding1 including a detailed justification for the exception4 7#d7 ,annual report ,not later than #ahj days after the end of each fiscal year1 the head of each executive agency that has made an exception finding described in paragraph 7#b7 in the fiscal year shall submit to the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate and the ,committee on ,oversight and ,reform of the ,house of ,representatives a report on the total amount of exceptions used and detailed information regarding and justification for the exceptions4 7#e7 ,calculation of component cost ,for purposes of this subsection1 in calculating components' costs1 labor costs involved in final assembly shall not be included in the calculation4 7#f7 ,intentional violations ,if it has been determined by a court or ,federal agency that any person intentionally-- 7,a7 affixed a label bearing a ,made in ,america inscription1 or any inscription with the same meaning1 to any product used in projects to which this section applies1 sold in or shipped to the ,united ,states that was not made in the ,united ,states2 or 7,b7 represented that any product used in projects to which this section applies1 sold in or shipped to the ,united ,states that was not produced in the ,united ,states1 was produced in the ,united ,states1 that person shall be debarred from contracting with the ,federal ,government for a period of not less than #e years4 4 7b7 ,clerical amendment ,the table of sections at the beginning of such chapter is amended by adding after the item relating to section #dgac the following new item3 #dgad4 ,domestic sourcing requirement for shipboard components4 4 #d4 ,conforming amendments related to ,department of ,defense provisions 7a7 ,use of ,united ,states steel1 iron1 aluminum1 and manufactured products 7#a7 ,in general ,chapter #acg of title #aj1 ,united ,states ,code1 is amended by adding at the end the following new section3 #bcci;b4 ,use of ,united ,states steel1 iron1 aluminum1 and manufactured products in shipbuilding 7a7 ,in general ,the head of an agency may not enter into a contract related to the construction of a vessel unless the steel1 iron1 aluminum1 and manufactured products to be used in the construction of the vessel are produced in the ,united ,states4 7b7 ,exceptions ,the provisions of subsection 7a7 shall not apply where the head of the agency finds-- 7#a7 that their application would be inconsistent with the public interest2 7#b7 that such materials and products are not produced in the ,united ,states in sufficient and reasonably available quantities and of a satisfactory quality2 or 7#c7 that inclusion of domestic material will increase the cost of the overall project contract by more than #be percent4 7c7 ,implementation of exceptions 7#a7 ,non-delegation of authority ,the head of an agency may not delegate the authority to make a finding described in subsection 7b74 7#b7 ,publication ,not later than #cj days after making a finding described in subsection 7b71 the head of the agency shall publish in an easily identifiable location on the website of the agency information regarding the finding1 including a detailed justification for the exception4 7d7 ,annual report ,not later than #ahj days after the end of each fiscal year1 the head of each executive agency that has made an exception finding described in subsection 7b7 in the fiscal year shall submit to the ,committees on ,armed ,services of the ,senate and the ,house of ,representatives a report on the total amount of exceptions used and detailed information regarding and justification for the exceptions4 7e7 ,calculation of component cost ,for purposes of this section1 in calculating components' costs1 labor costs involved in final assembly shall not be included in the calculation4 7f7 ,intentional violations ,if it has been determined by a court or ,federal agency that any person intentionally-- 7#a7 affixed a label bearing a ,made in ,america inscription1 or any inscription with the same meaning1 to any product used in projects to which this section applies1 sold in or shipped to the ,united ,states that was not made in the ,united ,states2 or 7#b7 represented that any product used in projects to which this section applies1 sold in or shipped to the ,united ,states that was not produced in the ,united ,states1 was produced in the ,united ,states1 that person shall be debarred from contracting with the ,federal ,government for a period of not less than #e years4 4 7#b7 ,clerical amendment ,the table of sections at the beginning of such chapter is amended by adding after the item relating to section #bcci;a the following new item3 #bcci;b4 ,use of ,united ,states steel1 iron1 aluminum1 and manufactured products in shipbuilding4 4 7b7 ,miscellaneous limitations on the procurement of goods other than ,united ,states goods 7#a7 ,in general ,section #becd7;a77#c77;,a7 of title #aj1 ,united ,states ,code1 is amended by adding at the end the following new clauses3 7i7 ,air circuit breakers4 7ii7 ,welded shipboard anchor and mooring chain with a diameter of four inches or less4 7iii7 ,auxiliary equipment1 including pumps1 for all shipboard services4 7iv7 ,propulsion system components1 including main propulsion engines1 hybrid drive systems1 propulsion shafting1 engine crankshafts1 reduction gears1 and propellers4 7v7 ,shipboard cranes4 7vi7 ,spreaders for shipboard cranes4 7vii7 ,power ,distribution equipment1 ,energy ,store ,systems1 energy storage_/magazine equipment4 7viii7 ,auxiliary propulsion units and systems1 including bow and tunnel thrusters1 waterjets1 dynamic positioning systems1 and hybrid propulsion systems4 7ix7 ,ship service and emergency power generation equipment 7prime movers and generators74 7x7 ,military ,qualified ,wire and ,cable and derived products4 7xi7 ,specialized ,valves for pneumatic1 fuel1 firefighting1 countermeasure wash down1 and chilled water systems4 7xii7 ,low voltage 7,,lv7 and high voltage 7,,hv7 switchgear4 7xiii7 ,power converters4 7xiv7 ,power inverters4 7xv7 ,frequency converters4 7xvi7 ,aircraft ,electrical ,starting ,stations 7,,aess74 7xvii7 ,degaussing systems4 7xviii7 ,static ,automatic ,bus ,transfer ,switches 7,s,a,b,ts74 7xix7 ,inertial navigation systems and gyrocompass4 7xx7 ,capstans4 7xxi7 ,winches4 7xxii7 ,hoists4 7xxiii7 ,outboard motors4 7xxiv7 ,windlasses4 4 7#b7 ,applicability of previously sunsetted provisions ,subsection 7c77#b77;,c7 of section #becd of title #aj1 ,united ,states ,code1 is amended by striking shall cease to be effective on ,october #a1 #aiif and inserting 8shall be in effect during-- 7i7 the period beginning on the date of the enactment of this paragraph and ending on ,october #a1 #aiif2 and 7ii7 the period beginning on the date of the enactment of the ,made in ,america ,shipbuilding ,act of #bjbj4 4 #e4 ,applicability ,the requirements under this ,act and the amendments made by this ,act-- 7#a7 apply to contracts entered into on or after the date of the enactment of this ,act2 and 7#b7 do not apply to-- 7,a7 contracts entered into before the date of the enactment of this ,act2 or 7,b7 options included as part of such contracts as of such date of enactment4