II 

108TH CONGRESS 

1ST SESSION S. 1738

To reauthorize the Defense Production Act of 1950, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 15, 2003

Mr. DODD introduced the following bill; which was read twice and referred to 

the Committee on Banking, Housing, and Urban Affairs 

A BILL

To reauthorize the Defense Production Act of 1950, 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,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Defense Production 

5 Act Reauthorization of 2003’’. 

6 SEC. 2. REAUTHORIZATION OF DEFENSE PRODUCTION ACT 

7 OF 1950. 

8 (a) IN GENERAL.—The 1st sentence of section 

9 717(a) of the Defense Production Act of 1950 (50 U.S.C. 

10 App. 2166(a)) is amended—

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1 (1) by striking ‘‘sections 708’’ and inserting 

2 ‘‘sections 707, 708,’’; and 

3 (2) by striking ‘‘September 30, 2003’’ and in4 serting ‘‘September 30, 2004’’. 

5 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

6 711(b) of the Defense Production Act of 1950 (50 U.S.C. 

7 App. 2161(b)) is amended by striking ‘‘through 2003’’ 

8 and inserting ‘‘through 2004’’. 

9 SEC. 3. RESOURCE SHORTFALL FOR RADIATION-HARD10 ENED ELECTRONICS. 

11 (a) IN GENERAL.—Notwithstanding the limitation 

12 contained in section 303(a)(6)(C) of the Defense Produc13 tion Act of 1950 (50 U.S.C. App. 2093(a)(6)(C)), the 

14 President may take actions under section 303 of the De15 fense Production Act of 1950 to correct the industrial re16 source shortfall for radiation-hardened electronics, to the 

17 extent that such Presidential actions do not cause the ag18 gregate outstanding amount of all such actions to exceed 

19 $200,000,000. 

20 (b) REPORT BY THE SECRETARY.—Before the end of 

21 the 6-month period beginning on the date of the enact22 ment of this Act, the Secretary of Defense shall submit 

23 a report to the Committee on Banking, Housing, and 

24 Urban Affairs of the Senate and the Committee on Finan25 cial Services of the House of Representatives describing—

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1 (1) the current state of the domestic industrial 

2 base for radiation-hardened electronics; 

3 (2) the projected requirements of the Depart4 ment of Defense for radiation-hardened electronics; 

5 (3) the intentions of the Department of Defense 

6 for the industrial base for radiation-hardened elec7 tronics; and 

8 (4) the plans of the Department of Defense for 

9 use of providers of radiation-hardened electronics be10 yond the providers with which the Department had 

11 entered into contractual arrangements under the au12 thority of the Defense Production Act of 1950, as of 

13 the date of the enactment of this Act. 

14 SEC. 4. CLARIFICATION OF PRESIDENTIAL AUTHORITY. 

15 Subsection (a) of section 705 of the Defense Produc16 tion Act of 1950 (50 U.S.C. App. 2155(a)) is amended 

17 by inserting after the end of the 1st sentence the following 

18 new sentence: ‘‘The authority of the President under this 

19 section includes the authority to obtain information in 

20 order to perform industry studies assessing the capabili21 ties of the United States industrial base to support the 

22 national defense.’’. 

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1 SEC. 5. CRITICAL INFRASTRUCTURE PROTECTION AND 

2 RESTORATION. 

3 Section 702 of the Defense Production Act of 1950 

4 (50 U.S.C. App. 2152) is amended—

5 (1) by redesignating paragraphs (3) through 

6 (17) as paragraphs (4) through (18), respectively; 

7 (2) by inserting after paragraph (2) the fol8 lowing new paragraph: 

9 ‘‘(3) CRITICAL INFRASTRUCTURE.—The term 

10 ‘critical infrastructure’ means any systems and as11 sets, whether physical or cyber-based, so vital to the 

12 United States that the degradation or destruction of 

13 such systems and assets would have a debilitating 

14 impact on national security, including, but not lim15 ited to, national economic security and national pub16 lic health or safety.’’; and 

17 (3) in paragraph (14) (as so redesignated by 

18 paragraph (1) of this section), by inserting ‘‘and 

19 critical infrastructure protection and restoration’’ 

20 before the period at the end of the last sentence. 

21 SEC. 6. REPORT ON CONTRACTING WITH MINORITY- AND 

22 WOMEN-OWNED BUSINESSES. 

23 (a) REPORT REQUIRED.—Before the end of the 1-

24 year period beginning on the date of the enactment of this 

25 Act, the Secretary of Defense shall submit a report to the 

26 Committee on Banking, Housing, and Urban Affairs of

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1 the Senate and the Committee on Financial Services of 

2 the House of Representatives on the extent to which con3 tracts entered into during the fiscal year ending before 

4 the end of such 1-year period under the Defense Produc5 tion Act of 1950 have been contracts with minority- and 

6 women-owned businesses. 

7 (b) CONTENTS OF REPORT.—The report submitted 

8 under subsection (a) shall include the following: 

9 (1) The types of goods and services obtained 

10 under contracts with minority- and women-owned 

11 businesses under the Defense Production Act of 

12 1950 in the fiscal year covered in the report. 

13 (2) The dollar amounts of such contracts. 

14 (3) The ethnicity of the majority owners of such 

15 minority- and women-owned businesses. 

16 (4) A description of the types of barriers in the 

17 contracting process, such as requirements for secu18 rity clearances, that limit contracting opportunities 

19 for minority- and women-owned businesses, together 

20 with such recommendations for legislative or admin21 istrative action as the Secretary of Defense may de22 termine to be appropriate for increasing opportuni23 ties for contracting with minority- and women-owned 

24 businesses and removing barriers to such increased 

25 participation. 

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1 (c) DEFINITIONS.—For purposes of this section, the 

2 terms ‘‘women-owned business’’ and ‘‘minority-owned 

3 business’’ have the meanings given such terms in section 

4 21A(r) of the Federal Home Loan Bank Act, and the term 

5 ‘‘minority’’ has the meaning given such term in section 

6 1204(c)(3) of the Financial Institutions Reform, Recov7 ery, and Enforcement Act of 1989. 

8 SEC. 7. COMMERCE RESPONSIBILITIES REGARDING CON9 SULTATION WITH FOREIGN NATIONS. 

10 (a) OFFSETS IN DEFENSE PROCUREMENTS.—Sec11 tion 123(c) of the Defense Production Act Amendments 

12 of 1992 (50 U.S.C. App. 2099 note) is amended to read 

13 as follows: 

14 ‘‘(c) NEGOTIATIONS.—

15 ‘‘(1) INTERAGENCY TEAM.—It is the policy of 

16 Congress that the President shall designate the Sec17 retary of Commerce to lead, in coordination with the 

18 Secretary of State, an interagency team to negotiate 

19 with foreign nations the elimination of offset ar20 rangements, industrial participation, or similar ar21 rangements in defense procurement. The President 

22 shall transmit an annual report on the results of 

23 these negotiations to the Congress as part of the re24 port required under section 309(a) of the Defense 

25 Production Act of 1950. 

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1 ‘‘(2) RECOMMENDATIONS FOR MODIFICA2 TIONS.—Pending the elimination of the arrange3 ments described in paragraph (1), the interagency 

4 team shall submit to the Secretary of Defense any 

5 recommendations for modifications of a memo6 randum of understanding entered into under section 

7 2531 of title 10, United States Code, or a related 

8 agreement that the team considers to be an appro9 priate response to a contractual offset, industrial 

10 participation, or similar arrangement that is entered 

11 into under the policy to which section 2532 of such 

12 title applies. 

13 ‘‘(3) NOTIFICATION TO USTR REGARDING OFF14 SETS.—If the interagency team determines that a 

15 foreign country is pursuing a policy on contractual 

16 offset arrangements, industrial participation ar17 rangements, or similar arrangements in connection 

18 with the purchase of defense equipment or supplies 

19 that requires compensation for the purchase in the 

20 form of nondefense or dual-use equipment or sup21 plies in a value greater than the defense equipment 

22 or supplies, the team shall notify the United States 

23 Trade Representative of that determination. Upon 

24 receipt of the notification, the United States Trade 

25 Representative shall treat the policy and each such 

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1 arrangement as an act, policy, or practice by the for2 eign country that is unjustifiable and burdens or re3 stricts United States commerce for purposes of sec4 tion 304(a)(1) of the Trade Act of 1974 (19 U.S.C. 

5 2414(a)(1)), and shall take appropriate action under 

6 title III of such Act with respect to such country.’’. 

7 (b) REPORT ON EFFECTS OF FOREIGN CONTRACTS

8 ON DOMESTIC CONTRACTORS.—Section 309(d)(1) of the 

9 Defense Production Act of 1950 (50 U.S.C. App. 

10 2099(d)(1)) is amended—

11 (1) in subparagraph (D), by striking ‘‘and’’ at 

12 the end; and 

13 (2) in subparagraph (E), by striking the period 

14 at the end and inserting the following: ‘‘; and 

15 ‘‘(F) a compilation of data delineating—

16 ‘‘(i) the impact of foreign contracts 

17 that have been awarded through offsets, 

18 industrial participation agreements, or 

19 similar arrangements, on domestic prime 

20 contractors, and at least the first three 

21 tiers of subcontractors; and 

22 ‘‘(ii) details of contracts with foreign 

23 1st, 2nd, and 3rd tier subcontractors 

24 awarded through offsets, industrial particiVerDate jul 14 2003 22:11 Oct 16, 2003 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1738.IS S1738
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1 pation agreements, or similar arrange2 ments.’’.

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