Mike D. Rogers
Representative for Alabama · Republican · United States
“(8) An assessment of NATO's deterrence efforts in Romania, including a description and evaluation of-- (A) United States force posture in Romania, including any new rotations to Romania intended to enhance deterrence following the 2025 decision to end the rotational presence of a United States brigade; (B) consultations with NATO allies r…”
“(8) An assessment of NATO's deterrence efforts in Romania, including a description and evaluation of-- (A) United States force posture in Romania, including any new rotations to Romania intended to enhance deterrence following the 2025 decision to end the rotational presence of a United States brigade; (B) consultations with NATO allies r…”
“(a) Requirement for Risk-based Approach.--Section 3843 of title 10, United States Code, is amended to read as follows: ``Sec. 3843. Contractor business systems: monitoring and surveillance standards ``(a) Requirement for Risk-based Approach.--The Secretary shall implement an agile, streamlined risk-based approach to surveillance of contra…”
“(a) Requirement for Risk-based Approach.--Section 3843 of title 10, United States Code, is amended to read as follows: ``Sec. 3843. Contractor business systems: monitoring and surveillance standards ``(a) Requirement for Risk-based Approach.--The Secretary shall implement an agile, streamlined risk-based approach to surveillance of contra…”
“(b) Modification of Certain Certifications and Assessments.-- (1) Certifications.--Section 1249(b) of the National Defense Authorization Act for Fiscal Year 2026 (Public Law 119-60) is amended-- (A) in the matter preceding paragraph (1), by striking ``The certification described'' and inserting following: ``(1) In general.--Except as prov…”
“(b) Objectives.--The Commander shall ensure that the Cognitive Performance Enhancement Program-- (1) improves readiness, resilience, and recovery, using evidence-based holistic and proactive high-performance brain training that has a validated ability to scale cost- effectively across the special operations forces enterprise; [[Page H4842…”
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Every one of 4,912 lines we hold for Mike D. Rogers, in date order, each linked to its source. Free to read, in full, without an account. Page 12 of 99.
“(b) Establishment and Members of Council.--Section 1322 of title 41, United States Code, is amended-- (1) in subsection (a), by striking ``executive branch'' and inserting ``Executive Office of the President''; (2) in subsection (b)-- (A) by amending paragraph (1) to read as follows: ``(1) In general.--The members of the Council shall be as follows: ``(A) The Administrator for Federal Procurement Policy. ``(B) The Deputy Director for Management of the Office of Management and Budget. ``(C) The following officials, each of whom shall occupy a position at the level of Assistant Secretary or Deputy Assistant Secretary (or equivalent): ``(i) Two officials from the Office of the Director of National Intelligence, one of which shall be from the National Counterintelligence and Security Center.”
“``(12) Source of concern.-- ``(A) In general.--The term `source of concern' means a source-- ``(i) subject to the jurisdiction, direction, or control of the government of a foreign adversary, or operates on behalf of the government of a foreign adversary; or ``(ii) that poses a risk to the national security of the United States based on collaboration with, whole or partial ownership or control by, or being affiliated with a military, internal security force, or intelligence agency of a foreign adversary. ``(B) Foreign adversary defined.--In this paragraph, the term `foreign adversary' has the meaning given the term `covered nation' in section 4872(d) of title 10.''.”
“278g-3a)).''; (2) by redesignating paragraphs (5) through (8) as paragraphs (7) through (10), respectively; (3) by inserting after paragraph (4) the following: ``(5) Covered source of concern.--The term `covered source of concern' means a source of concern that sells, produces, or is involved in the development of a covered article that is designated in section 1328(c) as a statutorily designated covered article. ``(6) Designated order.--The term `designated order' means an order described under section 1323(c)(3).''; and (4) by adding at the end the following: ``(11) Recommended order.--The term `recommended order' means an order recommended under section 1323(c)(2).”
“(a) Definition of Source of Concern, Covered Source of Concern, Recommended Order, and Designated Order.--Section 1321 of title 41, United States Code, is amended-- (1) by amending paragraph (3) to read as follows: ``(3) Covered article.--The term `covered article'-- ``(A) has the meaning given that term in section 4713; and ``(B) includes operational technology (as defined in section 3 of the Internet of Things Cybersecurity Improvement Act of 2020 (Public Law 116-207; 15 U.S.C.”
“(7) Qualification by prime contractor.--The Secretary shall, for the purposes of this subsection, establish policy for the acceptance of a determination by a prime contractor that a domestic supplier of a covered material is capable of providing such covered material in the form and quality required by the prime contractor and thus deem the domestic supplier a qualified source. (8) Definition.--In this subsection, the term ``allied nation'' means the United States or any foreign nation (other than a covered nation, as defined in section 4872 of title 10, United States Code) designated by the Secretary for purposes of this subsection. SEC. 1804. CHANGES WITH RESPECT TO THE FEDERAL ACQUISITION SECURITY COUNCIL.”
“(5) Department-wide recognition.--The Secretary shall ensure that the result of each qualification process completed under this subsection is accepted throughout the Department of Defense for the same or substantially similar applications to the maximum extent practicable. (6) Implementation.--The Secretary shall maintain a centralized record of the result of each qualification process completed under this subsection for use across the military departments and defense agencies.”
“(4) Acceptance of existing testing and qualification data.--In carrying out this subsection, the Secretary shall, to the maximum extent practicable, accept and rely on-- (A) test data, analyses, certifications, or other qualification evidence from a Government laboratory, an accredited independent laboratory, or an accredited commercial laboratory, whether located in the United States or outside the United States; (B) qualification results or approvals previously accepted by a military department, another Federal agency, an original equipment manufacturer, or another commercial qualification regime; and (C) commercial production history, first-article results, lot acceptance data, and comparable evidence of performance.”
“(d) Expedited Qualification of New Domestic and Allied- nation Sources.-- [[Page H4876]] (1) In general.--The Secretary of Defense shall establish an expedited qualification process for new domestic and allied-nation sources of covered material (as defined in section 4872 of title 10, United States Code). (2) Scope.--The process under paragraph (1) shall apply to-- (A) source qualification; (B) product qualification; and (C) platform or program qualification. (3) Deadline.--The Secretary shall ensure that, for each entity seeking to be qualified as a domestic or allied-nation source, the qualification process is completed not later than 12 months after the date on which the entity submits a materially complete qualification package in the form prescribed by the Secretary.”
“(c) Non-execution Into Current Law, and Repeal, of Amendment Prohibiting Procurement of Material Mined, Refined, or Separated in Any Covered Nation.-- (1) In general.--Section 844 of the National Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283; 134 Stat. 3766), as amended by section 848 of the National Defense Authorization Act for Fiscal Year 2026 (Public Law 119-60; 139 Stat. 978), is repealed. (2) Effective date.--The repeal made by paragraph (1) shall take effect on the earlier of December 31, 2026, or the date of the enactment of this Act.”
“(2) Regulations.--Not later than the effective date specified in paragraph (1), the Secretary of Defense shall issue regulations to implement section 4872 of title 10, United States Code, as amended by subsection (a). (3) Applicability to tier 2 materials.--Subsection (e) of section 4872, as amended by subsection (a), shall not apply to solicitations issued or contracts awarded before January 1, 2028. Until such date, a solicitation issued or contract awarded for a procurement of Tier 2 material (or covered item that contains Tier 2 material) shall be administered in accordance with section 4872 as in effect immediately before the effective date specified in paragraph (1).”
“``(13) The term `United States person' means-- ``(A) a citizen of the United States; ``(B) an alien lawfully admitted for permanent residence; or ``(C) an entity organized under the laws of the United States or a jurisdiction within the United States if the ultimate beneficial ownership and control of such entity is with persons described in subparagraph (A) or (B).''. (b) Effective Date and Applicability; Regulations.-- (1) Effective date and applicability.--The amendment made by subsection (a) shall take effect on the date (the ``effective date'') that is 180 days after the date of the enactment of this Act and shall apply to solicitations issued, and contracts entered into, on or after such effective date, except as provided in paragraph (3).”
“``(12) Subject to the authority of the Secretary under subsection (f), and excluding any material that is Tier 1 material, the term `Tier 2 material' means the following material, as set forth in categories (A) through (C): ``(A) Items comprised in whole or in part of oxides, metals, alloys (and intermediate products) of gadolinium, samarium, neodymium, praseodymium, neodymium-praseodymium, and terbium. ``(B) Items of tungsten, including-- ``(i) precursors, including tungsten ores and concentrates, ammonium paratungstate, ammonium metatungstate, tungstic acid, sodium tungstate, and tungsten oxides; and ``(ii) on and after January 1, 2029, tungsten carbide. ``(C) Items comprised in whole or in part of niobium oxides, metals, and alloys.”
“``(B) Tungsten metal powder, tungsten heavy alloy, or any finished or semi-finished component containing tungsten heavy alloy. ``(C) Neodymium oxide and metal, praseodymium oxide and metal, and neodymium-praseodymium oxide and metal, and ores and concentrates from which these oxides and metals are sourced. ``(D) Tantalum, including tantalum ores and oxides, concentrates, metal, tantalum powder, and tantalum alloys. ``(E) On and after December 18, 2027, molybdenum metals, powders, and alloys. ``(F) On and after December 18, 2027, gallium and gallium nitride. ``(G) On and after December 18, 2027, germanium.”
“``(9) A material is `sourced from, by, or through' a nation if any portion of the mining, refining, separation, melting and pouring, processing, or manufacturing of the material occurred in the nation or was performed by an entity located in the nation. ``(10) The term `sourced outside covered nations' means, with respect to a material, that the contractor has established through the certifications and documentation under this section that the material was not sourced from, by, or through a covered nation. ``(11) Subject to the authority of the Secretary under subsection (f), the term `Tier 1 material' means the following material, as set forth in categories (A) through (G): ``(A) Neodymium-iron-boron (NdFeB) and samarium-cobalt (SmCo) permanent magnets.”
“``(5) The term `covered nation' means-- ``(A) the Democratic People's Republic of North Korea; ``(B) the People's Republic of China; ``(C) the Russian Federation; and ``(D) the Islamic Republic of Iran. ``(6) The term `domestically owned entity' means an entity organized under the laws of the United States or a State and controlled by United States persons. ``(7) The term `preferred domestic manufacturer or producer' means a contractor designated as a preferred domestic manufacturer or producer under subsection (i). ``(8) The term `supply-chain stage' includes stages such as mining, concentration, refining, separation, reduction, melting, alloying, powder production, sintering, processing, and manufacturing, and any other stage that the Secretary considers appropriate.”
“``(m) Definitions.--In this section: ``(1) The term `commercially available off-the-shelf item' has the meaning given such term in section 104 of title 41. ``(2) The term `covered COTS item' means a commercially available off-the-shelf item-- ``(A) at least 50 percent of which, by weight, is covered material; or ``(B) that is a mill product, such as bar, billet, slab, wire, cube, sphere, block, blank, plate, powder, or sheet, that has not been incorporated into an end item, subsystem, assembly, or component. ``(3) The term `covered item' means an end item (as defined in section 4863 of this title), subsystem, assembly, component, or commercially available off-the-shelf item. ``(4) The term `covered material' means a Tier 1 material or a Tier 2 material.”
“``(3) The report shall be submitted in unclassified form, but may include a classified annex. ``(4) To the maximum extent practicable, the Secretary shall publish each report in a machine-readable, standardized format on a publicly accessible website of the Department. ``(l) Sale of National Defense Stockpile Materials.--The Secretary of Defense may not sell any material from the National Defense Stockpile, if the National Defense Stockpile Manager determines that such a sale is not in the national interests of the United States, to-- ``(1) any covered nation; or ``(2) any third party that the Secretary reasonably believes is acting as a broker or agent for a covered nation or an entity in a covered nation.”
“``(2) Each report shall include, for each fiscal year covered by the report, data for each category of covered material, including-- ``(A) sourcing percentages achieved; ``(B) waivers granted under subsection (g), identified by category of material and supply-chain stage, including duration and stated basis; ``(C) contractors designated as preferred domestic manufacturers and producers; ``(D) any findings, whether preliminary or not, of false certification, misconduct, or noncompliance with this section; ``(E) actions taken by the Secretary to increase the supply of Tier 1 and Tier 2 materials that meet the requirements of this section, including progress on investments in domestic capacity; and ``(F) such other information as the Secretary determines appropriate to describe implementation of this section.”
“``(k) Annual Report; Publication.--(1) Not later than March 1 of each year, the Secretary shall submit to the congressional defense committees, and publish in accordance with paragraph (3), a report on the implementation of this section. Each report shall cover the fiscal year that ended on September 30 of the preceding year and the fiscal year immediately preceding that fiscal year.”
“``(4) The fact that a contractor is designated as a preferred domestic manufacturer or producer may, if appropriate and consistent with law, be used by the Department for other purposes, such as in determining whether to provide credit in source selection, priority in processing of qualifications, or opportunity to participate in pilot programs. ``(j) Delegation.--The authorities in subsections (f), (g), and (i) may be delegated no lower than the senior acquisition executive of the military department concerned or, in the case of a Defense Agency, the Under Secretary of Defense for Acquisition and Sustainment.”
“In a case in which the supplier was not, in fact, a preferred domestic manufacturer or producer at the time such material or item is supplied (such as because the designation was revoked), the prime contractor shall not be accountable for a deficiency in its certifications and documentation under subsection (h) unless the contractor had actual knowledge of facts that would have caused a reasonable contractor to question whether the supplier was in fact a preferred domestic manufacturer or producer.”
“``(3) A prime contractor that is supplied covered material, or a covered item that contains covered material, from a supplier that is designated as a preferred domestic manufacturer or producer at the time such material or item is supplied may reasonably rely on that designation in making certifications and obtaining documentation under subsection (h).”
“``(i) Preferred Domestic Manufacturers and Producers; Designation and Benefits.--(1) Under regulations prescribed by the Secretary, the Secretary may designate as a preferred domestic manufacturer or producer any contractor that-- ``(A) is a manufacturer or producer within the United States of covered materials; or ``(B) is a manufacturer or producer that-- ``(i) manufactures or produces, within the United States, covered items that contain covered materials; ``(ii) manufactures or produces such items in a manner that complies with the sourcing requirements of subsections (d) and (e); and ``(iii) maintains documentation for such items in a manner that complies with subsection (h). ``(2) Under regulations prescribed by the Secretary, the Secretary may revoke such a designation.”
“``(4) The Secretary shall prescribe regulations to implement this subsection, including uniform standards for the certifications, documentation, and attestations required by this subsection and how those requirements apply to mixed materials, recycled materials, and commingled lots.”
“``(3) The documentation referred to in paragraph (1) is-- ``(A) documentation supporting the known provenance of the covered materials and covered items, together with any certifications and documentation made by subcontractors; or ``(B) if the prime contractor (or subcontractor, as applicable) is a preferred domestic manufacturer or producer, documentation identifying the supplier of the covered material and covered items, together with the attestation of the prime contractor (or subcontractor) that such supplier was also a preferred domestic manufacturer or producer and that such supplier made a certification under paragraph (2)(B) that such material and items comply with this section.”
“``(2) The certifications referred to in paragraph (1) are the following certifications, made in such form as the Secretary may prescribe: ``(A) As a condition of award or exercise of option, that the prime contractor (or subcontractor, as applicable) has a reasonable basis to expect compliance with this section. ``(B) As a condition of payment, that the covered material and covered items supplied by the prime contractor (or subcontractor, as applicable) comply with this section. ``(C) That the prime contractor (or subcontractor, as applicable) has obtained and will [[Page H4875]] maintain the documentation described in paragraph (3).”
“``(h) Contractor Certification and Records; Special Rule for Preferred Domestic Manufacturers and Producers.--(1) For each procurement of covered material or covered items that contain such material, the Secretary shall require the prime contractor to make the certifications described in paragraph (2), obtain the documentation described in paragraph (3), and maintain such certifications and documentation for not less than 10 years after the date on which the prime contractor receives final payment. The Secretary shall require each prime contractor to ensure that each subcontractor at any tier that supplies such material or items also make such certifications, obtain such documentation, and maintain such certifications and documentation for not less than 10 years after the date on which the subcontractor receives final payment.”
“``(4) A waiver or renewal under this subsection shall not take effect until the Secretary submits notice of the waiver or renewal to the congressional defense committees and a period of 30 days has elapsed or, if the Secretary certifies that there is an urgent need for the waiver or renewal, a period of 7 days has elapsed. The notice shall include the matters required by subparagraphs (A), (B), and (C) of paragraph (1) and the principal mitigation measures required by subparagraph (F)(i). ``(5) A contractor seeking a waiver under this subsection shall submit, at such time and in such manner as the Secretary may prescribe, reasonably available documentation supporting the waiver.”
“``(2) A waiver under this subsection that applies to an upstream form of material (such as an ore, concentrate, oxide, fluoride, salt, precursor, or intermediate) shall not apply to a downstream form of material (such as a metal, alloy, magnet, mill product, or component) unless the waiver expressly so provides. ``(3) A waiver under this subsection may be effective for a period of up to two years and may be renewed one or more times for another such period upon a new written determination satisfying paragraph (1). There shall be no limit on the number of waivers or renewals that may be issued under this subsection.”
“``(g) Authority to Waive Tier 1 or Tier 2 Sourcing Requirements.--(1) The Secretary of Defense may waive the application of a requirement in subsection (d) or (e), in whole or in part, to a procurement, or to a covered item, or to a Tier 1 or Tier 2 material, or to a supply-chain stage, or to any of the foregoing matters in combination or as a class, if the waiver is made in writing that-- ``(A) identifies with specificity the materials and other circumstances covered by the waiver; ``(B) identifies the period during which the waiver applies; ``(C) explains the factual basis for the waiver; ``(D) includes a determination that the Tier 1 material within the scope of the waiver is not produced by domestically owned entities, or the Tier 2 material within the scope of the waiver is not produced outside covered nations, in sufficient quantity, quality, or form to meet defense needs in a timely manner and on reasonable terms; ``(E) includes a determination (which may be based on or informed by a national security waiver issued under section 4863(k) of this title) that, absent the waiver, there would be a significant adverse effect on national security, defense production, readiness, sustainment, or timely contract performance; and ``(F) provides a transition plan identifying actions to reduce reliance by the Department on foreign nations (in the case of a Tier 1 material) or covered nations (in the case of a Tier 2 material), which shall include-- ``(i) mitigation measures, with quantifiable milestones and associated timelines; ``(ii) a requirement that, before the end of the period during which the waiver applies, the contractor will enter into one or more binding agreements with suppliers that will result in compliance with this section and obviate the need for a future waiver or renewal; and ``(iii) any contractual considerations the Secretary determines appropriate, such as performance security or an adjustment in performance or price.”
“``(4) To implement an addition or transfer under this subsection, the Secretary shall publish the addition or transfer in the Federal Register and on a publicly accessible website of the Department and ensure that the addition or transfer is incorporated, as appropriate, into the Department of Defense Supplement to the Federal Acquisition Regulation. ``(5) The addition or transfer shall take effect on the later of the following dates: ``(A) The date that is one year after the date on which it was published in the Federal Register. ``(B) The date specified in the Department of Defense Supplement to the Federal Acquisition Regulation.”
“``(B) The addition of a material that is not a covered material to a new or existing category of Tier 1 or Tier 2 material. ``(C) The transfer of a material from a category of Tier 2 material to a category of Tier 1 material. ``(3) In carrying out a review under paragraph (1), the Secretary may consider information from the elements and program offices of the Department and private industry sources, including prime and sub-tier contractors and critical mineral producers, as well as any other information the Secretary considers appropriate.”
“``(f) Authority of Secretary to Add and Transfer Materials on Tier 1 and Tier 2 Lists.--(1) Not less frequently than once every 6 months, the Secretary of Defense shall carry out a review of the categories of Tier 1 and Tier 2 materials. If the Secretary determines, based on the results of the review, that an addition or transfer described in paragraph (2) is warranted to protect national security, improve supply-chain resilience, reflect industrial base conditions, or account for changes in defense needs or commercial availability, the Secretary may implement the addition or transfer, subject to the requirements of this subsection. ``(2) An addition or transfer described in this paragraph is limited to one or more of the following: ``(A) The addition of a new category of Tier 1 or Tier 2 material.”
“``(C) In making the certification under paragraph (A)(i), the prime contractor-- ``(i) shall not be required to determine the country of origin of Tier 2 material that is not counted toward compliance with this subsection; ``(ii) may use a reasonable, consistently applied estimation methodology, including grade-based, weight-based, or industry-standard estimation, provided the methodology is disclosed in the certifications required under subsection (h) and supported by available documentation; and ``(iii) may rely in good faith on certifications and supporting documentation provided by subcontractors at any tier in establishing compliance with this subsection and shall not be required to independently verify a subcontractor certification absent actual knowledge of facts that would cause a reasonable contractor to question the accuracy of the certification.”
“``(B) The period referred to in subparagraph (A) shall be the annual period determined by the contractor's fiscal year or, in the case of a contract with a period of performance of less than one year, the life of the contract. Notwithstanding the preceding sentence, the Secretary may prescribe a period other than an annual period for a contract or type of contract if the Secretary determines that it would be impracticable for the prime contractor to certify and provide documentation for an annual period.”
“``(5)(A) In addition to the certifications required by subsection (h), for any procurement of Tier 2 material (or covered item that contains Tier 2 material), for each category of Tier 2 material in the procurement and for each period specified in subparagraph (B) during which the prime contractor delivers such material to the Department under the contract, the Secretary shall require the prime contractor to-- ``(i) certify that it has entered into a contractual agreement, or agreements, to obtain a supply of that category of Tier 2 material (or Tier 2 material contained in a covered item, as applicable) from sources outside covered nations in amounts sufficient to ensure that the prime contractor will be able to satisfy the percentages specified in paragraph (3); and ``(ii) provide documentation in accordance with subsection (h)(4) that not less than the applicable percentage specified in paragraph (3) of that category of Tier 2 material (or Tier 2 material contained in a covered item, as applicable) was sourced outside covered nations.”
“``(4) The percentage of cost referred to in paragraph (2)-- ``(A) shall be calculated separately for each category of Tier 2 material, with the calculation for a category including all Tier 2 material within that category and excluding all Tier 2 material not within that category; ``(B) shall be calculated as a fraction (and expressed as a percentage), in which-- ``(i) the numerator is the total cost of all Tier 2 material in that category (including Tier 2 material contained in a covered item) that is sourced outside covered nations; and ``(ii) the denominator is the total cost of all Tier 2 material in that category (including Tier 2 material contained in a covered item); and ``(C) shall be calculated without including in either the numerator or denominator any Tier 2 material contained in a covered item excluded by subsection (c).”
“``(3) The periods referred to in paragraph (2), and the percentages associated with those periods, are as follows: ``(A) January 1, 2028, to December 31, 2028, 25 percent. ``(B) January 1, 2029, to December 31, 2029, 50 percent. ``(C) January 1, 2030, to December 31, 2030, 75 percent. ``(D) On and after January 1, 2031, 100 percent.”
“``(e) Tier 2 Materials -- Prohibition on Sourcing From Covered Nations; Exceptions for Certain Periods.--(1) The Secretary may not procure Tier 2 material sourced from, by, or through a covered nation, or a covered item that contains Tier 2 material sourced from, by, or through a covered nation, except as provided in this subsection or in subsection (c) or (g). ``(2) For each period specified in paragraph (3), the Secretary may procure Tier 2 material sourced from, by, or through a covered nation, or a covered item that contains Tier 2 material sourced from, by, or through a covered nation, but only if the percentage of cost of such material, as calculated under paragraph (4), that is produced outside covered nations is at least the percentage specified in paragraph (3).”
“``(3) The percentage referred to in paragraph (2)-- ``(A) shall be calculated as a fraction (and expressed as a percentage), in which-- ``(i) the numerator is the total cost of all Tier 1 material in the procurement (including Tier 1 material contained in any covered item) that is produced by any domestically owned entity; and [[Page H4874]] ``(ii) the denominator is the total cost of all Tier 1 material in the procurement (including Tier 1 material contained in any covered item); and ``(B) shall be calculated without including in either the numerator or denominator any Tier 2 material contained in a covered item excluded by subsection (c).”
“``(d) Tier 1 Materials -- Prohibition on Sourcing From Covered Nations; Requirement That a Minimum Percentage Be Sourced From United States.--(1) The Secretary may not procure Tier 1 material sourced from, by, or through a covered nation, or a covered item that contains Tier 1 material sourced from, by, or through a covered nation, except as provided in this subsection or in subsection (c) or (g). ``(2) The Secretary may procure Tier 1 material sourced outside covered nations, or covered items that contain Tier 1 material sourced outside covered nations, but only if the percentage of cost of such material, as calculated under paragraph (3), that is produced by domestically owned entities is at least 50 percent.”
“98h-1), determines that the domestic availability of a particular electronic device is critical to national security; ``(3) a neodymium-iron-boron magnet or samarium-cobalt magnet manufactured from recycled material if the milling of the recycled material and sintering of the final magnet takes place in the United States; or ``(4) tantalum, tungsten, niobium, or molybdenum produced from recycled material, if the contractor demonstrates to the Secretary that-- ``(A) the recycled material was produced outside of any covered nation; and ``(B) the melting of the recycled material and any further processing and manufacturing of the recycled material takes place in the United States or in the country of a qualifying foreign government, as defined in section 4863(m)(11) of this title.”
“``(c) Exceptions for Certain Items and Material.-- Subsection (a) shall not apply to the procurement of a covered item that is-- ``(1) a commercially available off-the-shelf item, other than a covered COTS item or product; ``(2) an electronic device, unless the Secretary of Defense, upon the recommendation of the Strategic and Critical Materials Board of Directors pursuant to section 10 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C.”
“SEC. 1803. CRITICAL MATERIALS: TIERED SOURCING RESTRICTIONS AND REQUIREMENTS. (a) In General.--Section 4872 of title 10, United States Code, is amended to read as follows: ``Sec. 4872. Critical materials: tiered restrictions on sourcing from covered nations and other foreign nations; prohibition on sales ``(a) Prohibition on Sourcing Covered Materials From Covered Nations.--Except as provided in subsections (c), (d), (e), and (g), the Secretary of Defense may not procure covered material sourced from, by, or through a covered nation, or a covered item that contains covered material sourced from, by, or through a covered nation. ``(b) Applicability.--This section applies to prime contracts and subcontracts at any tier.”
“(2) Content.--The report required under paragraph (1) shall include-- (A) an assessment of the frequency with which the Department of Defense, including prime contractors and subcontractors performing contracts for the Department, utilizes the exception under such subsection (d); (B) the total value and percentage of procurements to which such exception applied during each of the five fiscal years preceding the date of the report; (C) a list of each foreign country with which the United States has entered into a reciprocal defense procurement memorandum of understanding or other defense procurement agreement for purposes of qualifying for the exception under such subsection (d); (D) a supply chain analysis of each country described in subparagraph (C); (E) an assessment of the extent to which specialty metals incorporated into articles, materials, or supplies acquired pursuant to the exception in section 4863(d) of title 10, United States Code, originate from countries that are not parties to a defense procurement memorandum of understanding or other defense procurement agreement; (F) an identification of any secondary dependencies on specialty metals sourced from countries that are not parties to a defense procurement memorandum of understanding or other defense procurement agreement; and (G) an assessment of risks to the defense industrial base arising from such dependencies.”
“``(4) The Secretary of Defense may waive the requirements of this subsection if the Secretary determines that such waiver is necessary in the interest of national security and submits to the congressional defense committees a written justification for the waiver not later than 30 days after exercising such authority.''. (b) Report.-- (1) In general.--Not later than one year after the date of enactment of this section, the Secretary of Defense shall submit to the congressional defense committees a report regarding the use of the exception under section 4863(d) of title 10, United States Code relating to agreements with foreign governments.”
“``(2) In calculating the total value under paragraph (1), the Secretary of Defense shall include specialty metals directly procured by the Department and specialty metals incorporated into articles, materials, and supplies furnished by contractors and subcontractors to the Department. ``(3) Not later than 120 days after the last day of each fiscal year, the Secretary of Defense shall submit to the congressional defense committees a certification described compliance of the Secretary with the requirements of this subsection, including a description of the the methodology used to calculate the total value under paragraph (1).”
“(a) Limitation on Use of Exception Relating to Agreements With Foreign Governments.--Section 4863 of title 10, United States Code, is amended by adding at the end the following new subsection: ``(o) Limitation on Procurements Under Exception Relating to Agreements With Foreign Governments.--(1) For any fiscal year, the total value of specialty metals acquired, including specialty metals incorporated into end items, pursuant to the exception under subsection (d), may not exceed 30 percent of the total value of specialty metals procured by the Department of Defense during such fiscal year.”
“``(8) Non-FOCI entity.--The term `non-FOCI entity' means-- ``(A) a domestic source; or ``(B) an entity that has not been identified to be operating under foreign ownership, control, or influence pursuant to a Defense Counterintelligence and Security Agency review of such entity.''. SEC. 1802. OVERSIGHT OF SPECIALTY METALS PROCUREMENTS UNDER EXCEPTION RELATING TO AGREEMENTS WITH FOREIGN GOVERNMENTS.”
“``(3) To the greatest extent practicable, the agency shall provide an unclassified summary of the information contained in the classified annex.''; and (4) in subsection (h), as so redesignated-- (A) in paragraph (2), by adding at the end the following: ``(D) The termination of an existing contract, subcontract, agreement, or license for a covered system, in whole or in part, for the purpose of reducing supply chain risk.''; and (B) by adding at the end the following: ``(7) Domestic source.--The term `domestic source' has the meaning in section 702 of the Defense Production Act of 1950 (50 U.S.C. 4552).”