# Defense Production Act Amendments of 1992/Title II
## TITLE II — ADDITIONAL PROVISIONS TO IMPROVE INDUSTRIAL PREPAREDNESS
### Sec. 201. Discouraging Unfair Trade Practices.

    (a) SUSPENSION OR DEBARMENT AUTHORIZED.—
       Not later than 270 days after the date of enactment of this Act, subpart 9.4 of title 48, Code of Federal Regulations (or any successor regulation) shall be amended to specify the circumstances under which a contractor, who has engaged in an unfair trade practice, as defined in subsection (b), may be found to presently lack such business integrity or business honesty to such a degree as to seriously and directly affect the responsibility of the contractor to perform any contract awarded by the Federal Government or perform a subcontract under such a contract.
    (b) DEFINITION OF `UNFAIR TRADE PRACTICE´.—
       For purposes of this section, the term “unfair trade practice” means the commission of any of the following acts by a contractor:
          (1) UNFAIR TRADE PRACTICES.—
             An unfair trade practice, as determined by the International Trade Commission, for a violation of section 337 of the Tariff Act of 1930 (19 U.S.C. 1337).
          (2) VIOLATION OF AGREEMENTS OF COCOM.—
             A violation, as determined by the Secretary of Commerce, of any agreement of the group known as the “Coordinating Committee” for purposes of the Export Administration Act of 1979 or any similar bilateral or multilateral export control agreement.
          (3) FALSE STATEMENTS.—
             A knowingly false statement regarding a material element of a certification concerning the foreign content of an item of supply, as determined by the Secretary of the department or the head of the agency to which such certificate was furnished.

### Sec. 202. Fraudulent Use of `Made in America´ Labels.

    Not later than 270 days after the date of enactment of this Act, subpart 9.4 of title 48, Code of Federal Regulations (or any successor regulation) shall be amended to specify that any person having been determined to have intentionally affixed a label bearing a “Made in America” inscription (or any inscription having the same meaning) to a product sold in or shipped to the United States may, when such product was not made in the United States, be found to presently lack business integrity or business honesty to such a degree as to seriously and directly affect the responsibility of such person to perform any contract awarded by the Federal Government or perform a subcontract under such a contract.

### Sec. 203. Evaluation of Domestic Defense Industrial Base Policy.

    (a) CONGRESSIONAL COMMISSION ON THE EVALUATION OF DEFENSE INDUSTRIAL BASE POLICY ESTABLISHED.—
       There is established the Congressional Commission on the Evaluation of the Defense Industrial Base Policy (hereafter in this section referred to as the “Commission”).
    (b) DUTIES OF THE COMMISSION.—
          (1) IN GENERAL.—
             The Commission shall develop criteria for maintaining the strength of the domestic defense industrial base for purposes of supporting the national security strategy of the United States.
          (2) CONSIDERATION OF AGENCY PROCEDURES AND ACTIVITIES.—
             In developing criteria under paragraph (1), the Commission shall consider, with respect to each Federal agency and department which has any responsibility for maintaining the strength of the domestic defense industrial base—
                (A) the extent to which the statutory authority, policies, regulations, organizational arrangements, plans, programs, and budgets of such agency or department are adequate for the purpose of maintaining the strength of the domestic defense industrial base; and
                (B) the degree to which such authority, policies, regulations, arrangements, plans, programs, and budgets are being effectively implemented and sufficiently coordinated (within the agency or department and with other Federal agencies and departments).
          (3) EVALUATION OF CIVIL-MILITARY INTEGRATION.—
             The Commission, in developing criteria under paragraph (1) and considering agency procedures and activities under paragraph (2), shall evaluate the feasibility of integrating defense research, development, production, acquisition, and other relevant contracting activities with similar activities in the commercial sector, and the degree to which such integration is being implemented by the agency or department.
    (c) MEMBERSHIP.—
          (1) NUMBER AND APPOINTMENT.—
             The Commission shall be composed of 9 members, including—
                (A) 3 members appointed by the Speaker of the House of Representatives (2 of whom shall be appointed upon the recommendation of the majority leader of the House of Representatives and 1 of whom shall be appointed upon the recommendation of the minority leader of the House of Representatives) from among individuals who are especially qualified to serve on the Commission by reason of their education, training, or experience;
                (B) 3 members appointed by the President pro tempore of the Senate (2 of whom shall be appointed upon the recommendation of the majority leader of the Senate and 1 of whom shall be appointed upon the recommendation of the minority leader of the Senate) from among individuals who are especially qualified to serve on the Commission by reason of their education, training, or experience; and
                (C) 3 members appointed by a majority of the members appointed under subparagraphs (A) and (B) from among individuals who are especially qualified to serve on the Commission by reason of their education, training, or experience.
          (2) TERMS.—
                (A) IN GENERAL.—
                   Each member shall be appointed for the life of the Commission.
                (B) VACANCY.—
                   A vacancy in the Commission shall be filled in the same manner in which the original appointment was made.
          (3) PROHIBITION ON COMPENSATION.—
                (A) IN GENERAL.—
                   Except as provided in subparagraph (B), members of the Commission shall serve without pay.
                (B) TRAVEL EXPENSES.—
                   Each member shall receive travel expenses, including per diem in lieu of subsistence, in accordance with sections 5702 and 5703 of title 5, United States Code.
          (4) QUORUM.—
             A majority of the members of the Commission shall constitute a quorum, but a lesser number may hold hearings.
          (5) CHAIRPERSON.—
             The Chairperson of the Commission shall be elected by the members of the Commission from among the individuals appointed under paragraph (1)(C).
          (6) MEETINGS.—
             The Commission shall meet at the call of the Chairperson or a majority of the members.
    (d) POWERS OF COMMISSION.—
          (1) HEARINGS AND SESSIONS.—
                (A) IN GENERAL.—
                   The Commission may, for the purpose of carrying out this section, hold hearings, sit and act at times and places, take testimony, and receive evidence as the Commission considers appropriate.
                (B) ADMINISTRATION OF OATHS.—
                   The Commission may administer oaths or affirmations to witnesses appearing before the Commission.
          (2) POWERS OF MEMBERS AND AGENTS.—
             Any member or agent of the Commission may, if authorized by the Commission, take any action which the Commission is authorized to take.
          (3) OBTAINING OFFICIAL DATA.—
                (A) AUTHORITY TO OBTAIN.—
                   Notwithstanding any provision of section 552a of title 5, United States Code, the Commission may secure directly from any department or agency of the United States information necessary to enable the Commission to carry out this Act.
                (B) PROCEDURE.—
                   Upon request of the Chairperson of the Commission, the head of a department or agency referred to in subparagraph (A) shall furnish the information requested to the Commission.
                (C) USE OF INFORMATION.—
                   The Commission shall be subject to the same limitations with respect to the use or disclosure of any confidential or privileged information, trade secrets, or other proprietary or business-sensitive information which is obtained from any department or agency under this subsection as are applicable to the use or disclosure of such information or secrets by such department or agency.
          (4) MAILS.—
             The Commission may use the United States mails in the same manner and under the same conditions as other departments and agencies of the United States.
          (5) ADMINISTRATIVE SUPPORT SERVICES.—
             Upon the request of the Commission, the Administrator of General Services shall provide to the Commission, on a reimbursable basis, the administrative support services necessary for the Commission to carry out its responsibilities under this section.
    (e) STAFF OF COMMISSION; EXPERTS AND CONSULTANTS.—
          (1) STAFF.—
             Subject to such regulations as the Commission may prescribe, and with the approval of the Commission, the Chairperson may appoint and fix the pay of such personnel as the Chairperson considers appropriate.
          (2) APPLICABILITY OF CERTAIN CIVIL SERVICE LAWS.—
             The staff of the Commission may be appointed without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and may be paid without regard to the provisions of chapter 51 and subchapter III of chapter 53 of that title relating to classification and General Schedule pay rates, except that an individual so appointed may not receive pay in excess of the annual rate of basic pay payable for GS-18 of the General Schedule.
          (3) EXPERTS AND CONSULTANTS.—
             Subject to such regulations as the Commission may prescribe, the Chairperson may procure temporary and intermittent services under section 3109(b) of title 5, United States Code, but at rates for individuals not to exceed the annual rate of basic pay payable for GS-18 of the General Schedule.
          (4) STAFF OF FEDERAL AGENCIES.—
             Upon request of the Chairperson, the head of any Federal department or agency may detail, on a reimbursable basis, any of the personnel of that department or agency to the Commission to assist it in carrying out its duties under this Act.
    (f) DOMESTIC DEFENSE INDUSTRIAL BASE DEFINED.—
       For the purposes of this section, the term “domestic defense industrial base” means—
          (1) the industries in the United States and Canada which at any time are providing national defense materials and services; and
          (2) the industries in the United States and Canada which reasonably would be expected to provide national defense materials and services in a time of emergency or war.
    (g) REPORTS.—
       The Commission shall submit to the Congress and the President—
          (1) an interim report at the end of the 1-year period beginning on the date the Commission first meets with a majority of members present; and
          (2) a final report not later than March 1, 1995, on the findings of the Commission under this section with respect to the domestic defense industrial base, together with such recommendations for legislative, administrative, or policy action as the Commission may determine to be appropriate.
    (h) TERMINATION.—
       The Commission shall cease to exist 60 days after the date on which the final report is submitted pursuant to subsection (g)(2).
    (i) AUTHORIZATION OF APPROPRIATIONS.—
       There is authorized to be appropriated an amount equal to not more than $500,000 to carry out this section, such sums to remain available until the termination of the Commission.