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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“Such review shall include the following: (A) An identification of key weapon systems expected to be fielded by the Army for the first time during the five-year period following the date of the commencement of such review. (B) An assessment of the plans of the Army for the maintenance and repair of, and the logistics, supply chain, and other sustainment functions for, such weapon systems. (C) An assessment of the extent to which the Army is developing and investing in the sustainment functions specified in subparagraph (B) concurrent with the fielding of such weapon systems. (2) Briefing.--Not later than April 1, 2027, the Comptroller General shall provide to the congressional defense committees a briefing on preliminary observations relating to the review under paragraph (1), including on planned reporting formats and schedules.”
“``(e) Definitions.--In this section: ``(1) The term `covered Army depot' means a covered depot listed in section 2476(f)(1) of this title. ``(2) The term `organic industrial base of the Army' means each covered Army depot.''. (b) Guidance.--Not later than 180 days after the date of the enactment of this Act, the Secretary of the Army shall issue guidance to implement section 2477 of title 10, United States Code, as added by subsection (a). (c) GAO Review.-- (1) Review.--The Comptroller General of the United States shall conduct a review of plans of [[Page H4886]] the Army for sustainment with respect to the development and fielding of new weapon systems.”
“``(d) Annual Report on Certain Activities.--On an annual basis, the Secretary of the Army shall disseminate to each covered Army depot, and submit to the congressional defense committees, a report that includes-- ``(1) with respect to the year preceding the date of the submission of the report, detailed information on-- ``(A) the type and quantity of production activities and depot-level maintenance and repair activities performed by each such depot during such year; and ``(B) how such activities were coordinated with other production activities and depot-level maintenance and repair activities across the Department of Defense; and ``(2) with respect to the three-year period following the date of the submission of the report, a comprehensive plan for the production activities and depot-level maintenance and repair activities to be performed by each such depot during such period, including detailed information on-- ``(A) the type and quantity of such activities; ``(B) how such activities would be coordinated with other production activities and depot-level maintenance and repair activities across the Department of Defense; ``(C) for each fiscal year within such period, how the projected use of funds for the depot-level maintenance and repair workload of each covered Army depot would contribute to the percentage limitation under section 2466 of this title; and ``(D) the current and projected needs of the Army, the other military departments, and foreign partners, that may be addressed through such activities.”
“``(c) Reports on Modernization Efforts.--Concurrent with the submission of each plan required by section 2473 of this title, the Secretary of the Army shall submit to the congressional defense committees a report detailing, with respect to the five-year period covered by the plan, the efforts of the Army over such period to modernize covered Army depots consistent with this section, including the criteria used to allocate funds available for such modernization between such depots.”
“``(b) Limitation on Actions to Decrease Workload.--The Secretary of the Army may not carry out any action that would decrease the workload performed by any covered Army depot for a year by more than 10 percent as compared with the workload performed by that covered Army depot five years prior unless-- ``(1) the Secretary of the Army submits to the congressional defense committees a notification that includes an explanation for such decrease and a plan to shift other workload requirements of the Army to the covered Army depot, to maintain workforce capability; and ``(2) a period of 30 days has elapsed following such notification.”
“``(5) Establishing key training pipelines, and desired throughput with respect to such pipelines, necessary to support each covered Army depot in accordance with this subsection, including by identifying appropriations necessary for such support.”
“``(3) Establishing an updated resourcing model for such organic industrial base, for the purpose of-- ``(A) reducing production costs associated with each covered Army depot; and ``(B) ensuring such costs are, to the maximum extent practicable, competitive with commercial capabilities. ``(4) Ensuring the updated resourcing model established under paragraph (3)-- ``(A) details any modification to a working-capital fund of the Army necessary to achieve a purpose specified in such paragraph; and ``(B) accounts for the use of funds appropriated for the Army or relevant elements of the Department of Defense, including the Army Contracting Command, the Civilian Human Resources Agency of the Army, the Defense Finance and Accounting Service, and the Defense Information Systems Agency, or for base operating services.”
“``(2) Establishing an updated structure for the governance of such organic industrial base, under which-- ``(A) decisions regarding resourcing and site operations overseen by the Army Materiel Command shall be delineated from, and reconciled with, workload and acquisition requirements overseen by the Assistant Secretary of the Army for Acquisition, Logistics, and Technology; and ``(B) the relationship between the Army Sustainment Command and the Joint Energetics Transition Office established under section 148 of this title shall be delineated with respect to such organic industrial base.”
“Modernization of organic industrial base of Department of the Army ``(a) Modernization.--The Secretary of the Army shall take such steps as may be necessary to accelerate the modernization of the organic industrial base of the Army to meet the requirements of the Army, including by carrying out the following: ``(1) Ensuring the production of additional materials by, or the expanded use of capabilities of, such organic industrial base.”
“Accounting for certain depots: authority to write off capital expenditures ``(a) Authority.--With respect to any covered depot, the Secretary of Defense may write off, for accounting purposes, any depreciated cost or debt associated with capital that does not generate revenue as a result of a Government- directed mission change. ``(b) Delegation of Authority.--The Secretary may delegate the authority under subsection (a) to the Secretary of a military department. ``(c) Covered Depot Defined.--In this section, the term `covered depot' has the meaning given such term in section 2476 of this title.''. SEC. 1863. REFORMS RELATING TO ARMY ORGANIC INDUSTRIAL BASE. (a) Modernization.--Chapter 146 of title 10, United States Code, is amended by adding at the end the following new section: ``Sec. 2477.”
“Section 2466(d)(1) of title 10, United States Code, is amended-- (1) by striking ``each Defense Agency, the percentage'' and inserting ``each Defense Agency--'' ``(A) the percentage''; (2) in subparagraph (A), as so redesignated, by striking the period at the end and inserting ``; and''; and (3) by adding at the end the following new subparagraph: ``(B) the dollar amount of such expended and projected funds, respectively, disaggregated by covered depot.''. SEC. 1862. AUTHORITY TO WRITE OFF CAPITAL EXPENDITURES FOR CERTAIN DEPOTS OF DEPARTMENT OF DEFENSE. Chapter 146 of title 10, United States Code, is amended by inserting after section 2470 the following new section: ``Sec. 2471.”
“(c) Briefing.--Not later than 60 days after the date of the enactment of this section, the Comptroller General shall provide to the congressional defense committees a briefing on plans for any assessments required under subsection (a) and a timeline and format for delivery of the final results of such assessments. Subtitle C--Organic Industrial Base SEC. 1861. MODIFICATION TO ANNUAL REPORT ON DEPOT-LEVEL MAINTENANCE AND REPAIR WORKLOADS BY PUBLIC AND PRIVATE SECTORS.”
“(2) With respect to a procurement described in subsection (a), a determination of whether the Secretary-- (A) has sufficient understanding and data on the incentives and motivations of defense contractors necessary to negotiate a fair deal for the Department of Defense; (B) has and uses mechanisms to assess contractor performance and tools for accountability for meeting contractual obligations; (C) understands the data rights needed to maintain, sustain, and upgrade weapon systems and effectively uses contracting approaches to facilitate iterative development and to adopt commercial technologies; (D) has sufficient understanding of, and can monitor changes in, the defense industrial base, including the effect of mergers and acquisitions and tracking as new entrants; and (E) evaluates the effectiveness of efforts to reduce supply chain risks and measure the effects of available industrial policy tools.”
“SEC. 1842. COMPTROLLER GENERAL ASSESSMENT ON IMPROVING WEAPON SYSTEMS AND TECHNOLOGY PROCUREMENT. (a) Assessments.--The Comptroller General of the United States shall conduct one or more assessments of how the Secretary of Defense can improve procurement of weapon systems and technologies. (b) Elements.--Any assessment under subsection (a) shall include the following: (1) An evaluation of the extent to which the members of the acquisition workforce (as defined in section 101 of title 10, United States Code) have the knowledge, skills, and expertise necessary to negotiate a fair deal for weapon systems and technologies for the Department of Defense.”
“(b) Definitions.--In this section-- (1) the term ``major munitions program'' means-- (A) any major munitions program within the meaning given such term in section 4172 of title 10, United States Code; and (B) any munitions program that is identified as a critical munitions requirement by the Munitions Acceleration Council in the budget justification materials submitted to Congress in support of the Department of Defense budget for fiscal year 2027; and (2) the term ``low-cost, mass-produced munition'' means any munition that can be produced and delivered by a single contractor-- (A) in quantities two or more times greater than the quantities that the relevant existing munition can be produced and delivered in a single fiscal year using production capacity that is currently available to the contractor; and (B) at a cost to the Department at least 25 percent lower per unit than the relevant existing munition.”
“(a) Requirement.--In meeting the requirements of the Department of Defense for major munitions programs, the Secretary of Defense shall consider alternative designs, including designs such as low-cost, mass-produced munitions or other capabilities that could complement existing munitions capabilities.”
“(f) Condition for Out-year Contract Payments.--A multiyear contract entered into under subsection (a) shall provide that any obligation of the United States to make a payment [[Page H4885]] under the contract for a fiscal year after fiscal year 2027 is subject to the availability of appropriations for that purpose for such later fiscal year. (g) Definition.--In this section, the term ``head of an agency'' means-- (1) the Secretary of Defense; (2) the Secretary of the Army; (3) the Secretary of the Navy; or (4) the Secretary of the Air Force. SEC. 1841. MANAGING AND MITIGATING RISKS IN MAJOR MUNITIONS PROGRAMS.”
“(7) That during the fiscal year in which the contract is to be awarded, sufficient funds will be available to perform the contract in such fiscal year, and the future-years defense program (as defined in section 221 of title 10, United States Code) for such fiscal year will include the funding required to execute the program without cancellation. (e) Authority for Advance Procurement.--The head of an agency may enter into one or more contracts for advance procurement associated with a program for which authorization to enter into a multiyear contract is provided under subsection (a) and for systems and subsystems associated with such program, in economic order quantities when cost savings are achievable.”
“(2) That the use of such a contract will result in-- (A) savings of the total anticipated costs of carrying out the program through annual contracts; or (B) necessary defense industrial base stability not otherwise achievable through annual contracts. (3) That there is a reasonable expectation that throughout the contemplated contract period the head of the agency will request funding for the contract at the level required to avoid contract cancellation. (4) That there is a stable design for the property to be acquired and the technical risks associated with such property are not excessive. (5) That the estimates of both the cost of the contract and the anticipated cost avoidance through the use of a such a contract are realistic. (6) That the use of such a contract will promote the national security of the United States.”
“(c) Limited Applicability of Other Law.--In applying section 3501 of title 10, United States Code, to subsection (a), only the following provisions of that section shall apply: (1) Subsection (f). (2) Subsection (g), in which the term ``contract described in subsection (a)'' shall mean a contract awarded pursuant to the authority of this section. (3) Subsection (i)(1). (4) Subsection (l)(3). (d) Certification to Congressional Defense Committees Required.--The head of an agency may enter into a multiyear contract under subsection (a) only if the head of the agency certifies to the congressional defense committees in writing, not less than 7 days before entry into the contract, each of the following: (1) That the use of such a contract is consistent with the projected force structure requirements for the respective program.”
“(8) Integrated Battle Command System (IBCS). (9) Air-Launched Rapid Response Weapon Increment 1 (ARRW Inc 1). (10) Army/Navy Transportable Radar Surveillance (TPY-2). (11) Javelin CLU (Command Launch Unit). (12) FGM-148 Javelin. (13) Coyote Block 2C (C-UAS interceptor). (14) Sonobuoys (SSQ-36, SSQ-53, SSQ-62, SSQ-101, SSQ-125). (15) RIM-162 Evolved Sea Sparrow Missile (ESSM). (16) RIM-116 Rolling Airframe Missile (RAM). (17) Remote Modular Terminal (RMT). (18) Counter Communications System (CCS). (b) Procurement in Conjunction With Existing Contracts.-- The systems authorized to be procured under subsection (a) may be procured as additions to existing contracts covering such systems.”
“(a) Authority.--Subject to the provisions of section 3501 of title 10, United States Code, specified in subsection (c), the head of an agency may enter into one or more multiyear contracts for more than one but not more than seven program years, beginning in fiscal year 2027, for the procurement of the following systems (including items, services, and logistics support associated with those systems and their subsystems): (1) Guided Multiple Launch Rocket System (GMLRS). (2) 6.8mm ammunition. (3) Advanced Precision Kill Weapon System (APKWS) (AGR-20 A/B), II / Fixed-Wing, Air Launched, Counter-Unmanned [Aircraft Systems] Ordnance (FALCO) (AGR-20F). (4) Lower Tier Air and Missile Defense Sensor (LTAMDS). (5) Small Diameter Bomb II (SDB II). (6) Air Intercept Missile-9X (AIM-9X). (7) Patriot Guidance Enhanced Missile-Tactical (GEM-T).”
“(f) Condition for Out-year Contract Payments.--A multiyear contract entered into under subsection (a) shall provide that any obligation of the United States to make a payment under the contract for a fiscal year after fiscal year 2027 is subject to the availability of appropriations for that purpose for such later fiscal year. (g) Definition.--In this section, the term ``head of an agency'' means-- (1) the Secretary of Defense; (2) the Secretary of the Army; (3) the Secretary of the Navy; or (4) the Secretary of the Air Force. SEC. 1840. MULTIYEAR PROCUREMENT AUTHORITY FOR PLATFORMS AND COMPONENTS SYSTEMS.”
“(7) That during the fiscal year in which the contract is to be awarded, sufficient funds will be available to perform the contract in such fiscal year, and the future-years defense program (as defined in section 221 of title 10, United States Code) for such fiscal year will include the funding required to execute the program without cancellation. (e) Authority for Advance Procurement.--The head of an agency may enter into one or more contracts for advance procurement associated with a program for which authorization to enter into a multiyear contract is provided under subsection (a) and for systems and subsystems associated with such program, in economic order quantities when cost savings are achievable.”
“(3) That there is a reasonable expectation that throughout the contemplated contract period the head of the agency will request funding for the contract at the level required to avoid contract cancellation. (4) That there is a stable design for the property to be acquired and the technical risks associated with such property are not excessive. (5) That the estimates of both the cost of the contract and the anticipated cost avoidance through the use of a such a contract are realistic. (6) That the use of such a contract will promote the national security of the United States.”
“(2) Subsection (g), applied by substituting ``contract awarded pursuant to the authority of this section'' for ``contract described in subsection (a)'' each place it appears. (3) Subsection (i)(1). (4) Subsection (1)(3). (d) Certification to Congressional Defense Committees Required.--The head of an agency may enter into a multiyear contract under subsection (a) only if the head of the agency certifies to the congressional defense committees in writing, not later than seven days before entering into such a contract, each of the following: (1) That the use of such a contract is consistent with the projected force structure requirements for the applicable program. (2) That the use of such a contract will result in significant savings compared to the total anticipated costs of carrying out the program through annual contracts.”
“(9) Terminal High Altitude Area Defense (THAAD) systems. (10) Patriot Advanced Capability-3 (PAC-3) Missile Segment Enhancement (MSE) systems. (11) Low-cost hypersonic strike systems. (12) Family of Affordable Mass Munitions (FAMM), Extended- Range Attack Munition (ERAM), Enterprise Test Vehicle (ETV), and ground-launched low-cost cruise missile systems. (13) Joint Advanced Tactical Missiles (JATM). (b) Procurement in Conjunction With Existing Contracts.-- The systems authorized to be procured under subsection (a) may be procured as an addition to an existing contract relating to such systems. (c) Limited Applicability of Other Law.--The provisions of section 3501 of title 10, United States Code, specified in this subsection are as follows: (1) Subsection (f).”
“(a) Authority.--Subject to the provisions of section 3501 of title 10, United States Code, specified in subsection (c), the head of an agency may enter into one or more multiyear contracts for more than one but not more than seven program years, beginning in fiscal year 2027, for the procurement of the following systems (including items, services, and logistics support associated with those systems and their subsystems): (1) Standard Missile-3 (SM-3) Block IB missile systems. (2) Standard Missile-3 (SM-3) Block IIA missile systems. (3) Precision Strike Missiles (PrSM). (4) Standard Missile-6 Missiles (SM-6). (5) Advanced Medium-Range Air-to-Air Missiles (AMRAAM). (6) Joint Air-to-Surface Standoff Missiles (JASSM). (7) Long Range Anti-Ship Missiles (LRASM). (8) Tomahawk Land Attack Missile (TLAM) and Maritime Strike Tomahawk (MST).”
“(b) Triennial Report.--Not later than December 31, 2027, and triennially thereafter, the Assistant Secretary of Defense for Industrial Base Policy shall submit to the congressional defense committees a report on the findings of the review conducted for the previous three fiscal years, including a description of the effects of completed mergers and acquisitions on the health of the defense industrial base and actions taken to mitigate any risks identified. SEC. 1839. MULTIYEAR PROCUREMENT AUTHORITY FOR CERTAIN MUNITIONS.”
“(a) Triennial Review.--The Assistant Secretary of Defense for Industrial Base Policy shall triennially review merger and acquisition activity associated with major defense suppliers, including assessing the resulting financial health of such suppliers and whether resulting mergers and acquisitions have affected the supply of an essential good or service needed to support the Department of Defense's mission to provide national security and defense.”
“4201) is amended-- (1) in paragraph (4)(B), by inserting ``except as provided in paragraph (5),'' before ``shall not apply''; and (2) by adding at the end the following new paragraph: ``(5) Exclusion for shipbuilding programs.--Paragraph (4)(B) shall not apply to manufactured articles procured in connection with a shipbuilding program.''. SEC. 1838. TRIENNIAL REVIEW OF MERGER AND ACQUISITION ACTIVITY ASSOCIATED WITH MAJOR DEFENSE SUPPLIERS.”
“4841 note) is amended-- (1) by striking ``September 30, 2027'' and inserting ``February 28, 2027''; (2) in subparagraph (F), by striking ``and'' at the end; (3) in subparagraph (G)(ii), by striking the period at the end and inserting a semicolon; and (4) by adding at the end the following: [[Page H4884]] ``(H) a methodology for establishing common part numbering system for AM materials, processes, and parts; and ``(I) a methodology for qualification testing for small run critical parts.''. SEC. 1837. ENHANCED DOMESTIC CONTENT REQUIREMENT FOR SHIPBUILDING PROGRAMS. Section 835(b) of the National Defense Authorization Act for Fiscal Year 2023 (Public Law 118-31; 137 Stat. 338; 10 U.S.C. note prec.”
“Section 1846(b)(2) of the National Defense Authorization Act for Fiscal Year 2026 (Public Law 119-60) is amended-- (1) in subparagraph (F), by striking the word ``and''; (2) in subparagraph (G)(ii), by striking the period and inserting ``; and''; and (3) by adding the following new subparagraph: ``(H) risk-based policies and best practices to prevent the dissemination of information or capabilities that enable influence of entities located in China, Russia, Iran, or North Korea over the production of parts, including a preference for the use of parts produced through secure, domestic advanced manufacturing processes.''. SEC. 1836. MODIFICATIONS TO ADVANCED MANUFACTURING POLICY REVIEW AND GUIDANCE. Section 1846(b)(2) of the National Defense Authorization Act for Fiscal Year 2026 (Public Law 119-60; 10 U.S.C.”
“``(2) Notation.--Not later than 60 days after receipt of the plan described in paragraph (1), the Director of the Defense Logistics Agency shall update the No Bid Solicitation List to include a notation for items that have been identified under subsection (a)(1) as critical readiness items of supply.''; and (2) in subsection (e), by adding at the end the following new paragraphs: ``(3) The term `No Bid Solicitation List' means the list maintained by the Defense Logistics Agency identifying solicitations that have received no bids or no responsive offers within required procurement timelines. ``(4) The term `covered system' has the meaning given in section 4324 of title 10, United States Code.''. SEC. 1835. ADDITIONAL GUIDANCE RELATED TO ADVANCED MANUFACTURING.”
“``(d) Implementation.-- ``(1) Working group.--Following receipt of the plan described in paragraph (1), members of the collaborative forum established under such section 1844 shall establish a working group (or other appropriate organization) to implement such plan by developing or identifying advanced manufacturing solutions to increase the production of critical readiness items of supply identified under subsection (a)(1), where such solutions are likely ensure the production of such items not later than 24 months after the date of the establishment of the working group.”
“Section 1842 of the National Defense Authorization Act of Fiscal Year 2026 (Public Law 119-60) is amended-- (1) by inserting after subsection (b) the following new subsections: ``(c) Report.--Not later than 180 days after the date of the enactment of this subsection, the Under Secretary of Defense for Acquisition and Sustainment shall submit the plan required by subsection (a) to-- ``(1) the collaborative forum established under section 1844 of this Act (Public Law 119-60; 10 U.S.C. 4811 note); ``(2) the Defense Logistics Agency; and ``(3) the congressional defense committees.”
“(b) Life-cycle Sustainment Plan.--Section 4324(b)(1)(C) of title 10, United States Code, is amended by inserting before the period at the end the following: ``, where such considerations shall include the application of alternative methods to support sustainment, including reverse engineering, reengineering, and advanced manufacturing (as defined in section 4841 of this title)''. SEC. 1834. REPORT AND IMPLEMENTATION OF PLAN FOR ADVANCED MANUFACTURING FOR CERTAIN CRITICAL READINESS ITEMS OF SUPPLY.”
“(b) Limitation on Use of Certain Amounts.--The Secretary of Defense may not use amounts made available before the date of the enactment of this Act to carry out activities under the authority of subparagraph (Q) of section 4817(g)(1) of title 10, United States Code, as added by this section. SEC. 1833. DEVELOPMENT AND APPLICATION OF ALTERNATIVE MATERIAL SOURCES. (a) Defense Modernization Account.--Section 3136(d) of title 10, United States Code, is amended by adding at the end the following new paragraph: ``(7) For developing alternative material sources, through technologies including reverse engineering, reengineering, and advanced manufacturing (as defined in section 4841 of this title), to meet operational requirements.''.”
“(b) Limitation on Use of Certain Funds.--The Secretary of Defense may not use funds made available before the date of the enactment of this Act to carry out activities under the authority of subsection (g)(1)(L) or (g)(1)(P) of section 4817 of title 10, United States Code, as added by this Act. SEC. 1832. INCLUSION OF BIOTECHNOLOGY IN USES OF THE INDUSTRIAL BASE FUND. (a) In General.--Section 4817(g)(1) of title 10, United States Code, as amended by section 1831, is further amended by adding at the end the following new subparagraph: ``(Q) Biotechnology and biomanufacturing.''.”
“(a) In General.--Section 4817(g)(1) of title 10, United States Code, as added by section 867 of the National Defense Authorization Act for Fiscal Year 2026 (Public Law 119-60), is amended-- (1) by amending subparagraph (L) to read as follows: ``(L) Ships or submarines, including technologies and capabilities supporting the assembly or automation of ships or submarines, new or modernized infrastructure for the construction of ships or submarines, and infrastructure or capabilities for the maintenance, sustainment, or battle- damage repair of ships or submarines (including private- sector drydock and ship repair infrastructure components and systems).''; and (2) by adding at the end the following new subparagraph: ``(P) Advanced microelectronics packaging, including substrates, interposers, heterogeneous integration, and related manufacturing capability and capacity.''.”
“(b) Form.--The report required by subsection (a) shall be submitted in unclassified form and may include a classified annex. Subtitle B--Provisions Relating to Defense Industrial Base Manufacturing SEC. 1831. CLARIFICATION OF ELIGIBLE USES OF DEFENSE INDUSTRIAL BASE FUND.”
“(a) Report Required.--Not later than 270 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report on the following: (1) The feasibility of including requirements for Bills of Materials, including software, hardware, artificial intelligence, and cryptography, within DoD Instruction 5000.87 and the Software Acquisition Pathway. (2) The expected value of the information gained through Bills of Materials as it relates to risk management and supply chain integrity. (3) The necessity of establishing a new system or consolidating existing systems to perform asset management within the Department to house the information in Bills of Materials as it relates to weapon system components currently in use across the Armed Forces.”
“(4) Decisions of the Secretary regarding production rate increases and capacity expansion of defense articles (as defined in section 644 of the Foreign Assistance Act of 1961 (22 U.S.C. 2403)). (b) Objectives.--In carrying out subsection (a), the Secretary shall seek to achieve the following objectives with respect to the defense industrial base: (1) Expand production capacity. (2) Stabilize critical suppliers and of the defense industrial base. (3) Incentivize capital investment in critical production lines. SEC. 1818. REPORT ON THE FEASIBILITY OF REQUIRING BILLS OF MATERIALS FOR DEFENSE ACQUISITION.”
“(e) Adversarial Capital Defined.--In this section, the term ``adversarial capital'' means loans or other forms of financial assistance provided to entities in the national and technological industrial base. SEC. 1817. INTEGRATION OF DEMAND FOR FOREIGN MILITARY SALES INTO INDUSTRIAL BASE PLANNING. (a) In General.--The Secretary of Defense shall include projected demand for foreign military sales, including any foreign military sales that are in progress, in-- (1) Any industrial base assessments conducted by the Secretary. (2) Munitions production planning documents. (3) Sustainment planning for major defense acquisition programs (as defined in section 4201 of title 10, United States Code).”
“(d) Reporting Requirements.-- (1) Initial establishment.--The Secretary shall submit to the congressional defense committees a notification of the designation of an office under subsection (a) and the establishment of the Economic Security Risk Assurance tool in accordance with subsection (c). (2) Annual report.--Not later than December 1, 2027, and annually thereafter, the Secretary shall submit to the congressional defense committees an annual report analyzing the activities of the office designated under subsection (a). The report may be provided in classified form and may include any recommendations of the Secretary to reduce or further mitigate risks related to adversarial capital in the national and technological industrial base.”
“(c) Economic Security Risk Assurance Capability.--Not later than 180 days after the date of the enactment of this Act, the head of the office designated under subsection (a) shall establish and maintain a capability to be known as the ``Economic Security Risk Assurance'' capability, which shall-- (1) consolidate and analyze information related to adversarial capital flows to entities in the national and technological industrial base, supplier identifiers, links between programs of the Department of Defense and suppliers, and other information as determined by such head; (2) enable analysis and reporting to support the assessment and risk mitigation of adversarial capital in the national technology and industrial base; (3) provide visualization of the risk of adversarial capital on entities in the national and technological industrial base; (4) enable federated access by program managers, portfolio acquisition executives, and other appropriate officials of the Department of Defense to supply chain illumination efforts of the Department; and (5) enable the office to better perform the duties outlined by this subsection.”
“(6) Implementing and maintaining continuous automated monitoring of entities in the national [[Page H4883]] and technological industrial base for changes in corporate control, beneficial ownership, geographic sourcing, and supply chain structure. (7) Issuing automated alerts to appropriate members of the acquisition workforce and affected stakeholders upon detection of significant risk indicators of adversarial capital. (8) Applying corroboration protocols requiring validation of significant risk indicators of adversarial capital across not fewer than two independent data sources before forming the basis for risk-tier elevation, mitigation action, or referral to appropriate law enforcement or regulatory authorities.”
“(5) Working with stakeholders to develop and implement clear legal, contractual, and technical procedures to-- (A) support and enable identification of beneficial ownership data of subcontractors (at any tier) and suppliers in the national and technological industrial base that is relevant to national security; (B) ensure appropriate liability protections for such subcontractors and suppliers making good-faith disclosures of data described in subparagraph (A); (C) implement a voluntary risk-sharing framework under which national and technological industrial base entities may share supplier risk information and receive validated risk assessments of the supply chain of such entity in return, with safeguards for proprietary data.”
“(2) Tracing the flow of adversarial capital from its source to entities in the national and technological industrial base. (3) Identifying and monitoring dependencies of entities in the national and technological industrial base on foreign adversaries by identifying-- (A) single points of failure, critical chokepoints, and foreign adversary-controlled aspects of relevant supply chains that could vulnerable to adversarial capital; and (B) tactics, techniques, and procedures used by foreign adversaries to gain influence or control over such entities. (4) Providing specific recommendations to Secretary of Defense on actions or policies necessary to reduce adversarial capital flows for mission-critical weapons systems, technologies, and materials.”
“(b) Duties.--The Secretary shall ensure the office designated under subsection (a) is responsible for the following: (1) Facilitating collaboration among elements of the Department of Defense and with other stakeholders, including private sector entities and academia, to identify and mitigate such risks, including-- (A) by coordinating, deconflicting, and synchronizing adversarial capital risk management activities; (B) by facilitating timely sharing with entities in the national technology and industrial base of threat information, vulnerability assessments, and risk indicators; and (C) by establishing relationships, including through cooperative research and development agreements, to support shared informational understanding of the commercial and economic domain to advance the economic security interests of the Department.”