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106TH CONGRESS

1ST SESSION H. R. 867

To amend title 10, United States Code, to require, in the evaluation of

bids and proposals for a contract for the procurement by the Department

of Defense of property or services, the consideration of the percentage

of work under the contract planned to be performed in the United

States, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 25, 1999

Ms. KAPTUR introduced the following bill; which was referred to the

Committee on Armed Services

A BILL

To amend title 10, United States Code, to require, in the

evaluation of bids and proposals for a contract for the

procurement by the Department of Defense of property

or services, the consideration of the percentage of work

under the contract planned to be performed in the

United States, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. REQUIREMENTS RELATING TO CONTRACT PER2 FORMANCE IN THE UNITED STATES.

3 (a) IN GENERAL.—(1) Chapter 141 of title 10,

4 United States Code, is amended by adding at the end the

5 following new section:

6 ‘‘§ 2410n. Requirements relating to contract perform7 ance in the United States

8 ‘‘(a) CONSIDERATION OF PERCENTAGE OF WORK

9 PERFORMED IN THE UNITED STATES.—In the evaluation

10 of sealed bids and competitive proposals submitted in re11 sponse to a solicitation for a contract for the procurement

12 of property or services, the head of an agency—

13 ‘‘(1) shall include, as a factor in the statement

14 required by section 2305(a)(2)(A)(i) of this title of

15 significant factors expected to be considered in such

16 evaluation, the percentage of work under the con17 tract that the bidder or offeror plans to perform in

18 the United States; and

19 ‘‘(2) shall assign a high importance to such fac20 tor.

21 ‘‘(b) BREACH OF CONTRACT FOR TRANSFERRING

22 WORK OUTSIDE THE UNITED STATES.—The head of an

23 agency shall include in each contract for the procurement

24 of property or services a clause providing that the contrac25 tor is deemed to have breached the contract if the contrac26 tor performs less work in the United States than the con-
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1 tractor stated, in its response to the solicitation for the

2 contract, that it planned to perform in the United States.

3 ‘‘(c) INELIGIBILITY FOR CONTRACT RENEWAL.—The

4 head of an agency may not renew a contract made pursu5 ant to a solicitation referred to in subsection (a) if the

6 amount of work performed outside the United States

7 under the contract exceeds the maximum amount of work

8 that the contractor was expected to perform outside the

9 United States, based on the amount of work that the con10 tractor stated, in its response to the solicitation for the

11 contract, that it planned to perform inside the United

12 States.

13 ‘‘(d) WAIVER.—The head of an agency may waive

14 subsection (a), (b), or (c) on a case-by-case basis upon

15 a determination that an emergency situation or the na16 tional security interests of the United States requires such

17 a waiver.

18 ‘‘(e) SCOPE OF COVERAGE.—This section applies—

19 ‘‘(1) to any contract for any amount greater

20 than the simplified acquisition threshold (as speci21 fied in section 2302(7) of title 10, United States

22 Code); and

23 ‘‘(2) to any contract for items described in sec24 tion 2534(a)(5) of this title.
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1 ‘‘(f) CONSTRUCTION.—Subsections (a), (b), and (c)

2 may not be construed to diminish the primary importance

3 of considerations of quality in the procurement of defense4 related property or services.

5 ‘‘(g) DEFINITION.—In this section, the term ‘head of

6 an agency’ has the meaning provided by section 2302(1)

7 of this title.’’.

8 (2) The table of sections at the beginning of such

9 chapter is amended by adding at the end the following

10 new item:

‘‘2410n. Requirements relating to contract performance in the United States.’’.

11 (b) EFFECTIVE DATE.—Section 2410n of title 10,

12 United States Code, as added by subsection (a), shall

13 apply with respect to contracts entered into on or after

14 the date that is 60 days after the date of the enactment

15 of this Act.

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