In the Senate of the United States,

November 21, 2003.

Resolved, That the Senate agree to the amendment of

the House of Representatives to the bill (S. 1680) entitled

‘‘An Act to reauthorize the Defense Production Act of 1950,

and for other purposes.’’ with the following

SENATE AMENDMENT TO HOUSE AMENDMENT:

1 Page 6, strike line 1 and all that follows over to and

2 including line 2 on page 7, of the House engrossed amend3 ment, and insert:

4 SEC. 7. REPORT ON IMPACT OF OFFSETS ON DOMESTIC

5 CONTRACTORS AND LOWER TIER SUB6 CONTRACTORS.

7 (a) EXAMINATION OF IMPACT REQUIRED.—

8 (1) IN GENERAL.—As part of the annual report

9 required under section 309(a) of the Defense Produc10 tion Act of 1950 (50 U.S.C. App. 2099(a)), the Sec11 retary of Commerce (in this section referred to as the

12 ‘‘Secretary’’) shall—
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1 (A) detail the number of foreign contracts

2 involving domestic contractors that use offsets,

3 industrial participation agreements, or similar

4 arrangements during the preceding 5-year pe5 riod;

6 (B) calculate the aggregate, median, and

7 mean values of the contracts and the offsets, in8 dustrial participation agreements, and similar

9 arrangements during the preceding 5-year pe10 riod; and

11 (C) describe the impact of international or

12 foreign sales of United States defense products

13 and related offsets, industrial participation

14 agreements, and similar arrangements on domes15 tic prime contractors and, to the extent prac16 ticable, the first 3 tiers of domestic contractors

17 and subcontractors during the preceding 5-year

18 period in terms of domestic employment, includ19 ing any job losses, on an annual basis.

20 (2) USE OF INTERNAL DOCUMENTS.—To the ex21 tent that the Department of Commerce is already in

22 possession of relevant data, the Department shall use

23 internal documents or existing departmental records

24 to carry out paragraph (1).
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1 (3) INFORMATION FROM NON-FEDERAL ENTI2 TIES.—

3 (A) EXISTING INFORMATION.—In carrying

4 out paragraph (1), the Secretary shall only re5 quire a non-Federal entity to provide informa6 tion that is available through the existing data

7 collection and reporting systems of that non-Fed8 eral entity.

9 (B) FORMAT.—The Secretary may require a

10 non-Federal entity to provide information to the

11 Secretary in the same form that is already pro12 vided to a foreign government in fulfilling an

13 offset arrangement, industrial participation

14 agreement, or similar arrangement.

15 (b) REPORT.—

16 (1) IN GENERAL.—Before the end of the 8-month

17 period beginning on the date of enactment of this Act,

18 the Secretary shall submit to Congress a report con19 taining the findings and conclusions of the Secretary

20 with regard to the examination made pursuant to

21 subsection (a).

22 (2) COPIES OF REPORT.—The Secretary shall

23 also transmit copies of the report prepared under

24 paragraph (1) to the United States Trade Representa25 tive and the interagency team established pursuant to
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1 section 123(c) of the Defense Production Act Amend2 ments of 1992 (50 U.S.C. App. 2099 note).

3 (c) RESPONSIBILITIES REGARDING CONSULTATION

4 WITH FOREIGN NATIONS.—Section 123(c) of the Defense

5 Production Act Amendments of 1992 (50 U.S.C. App. 2099

6 note) is amended to read as follows:

7 ‘‘(c) NEGOTIATIONS.—

8 ‘‘(1) INTERAGENCY TEAM.—

9 ‘‘(A) IN GENERAL.—It is the policy of Con10 gress that the President shall designate a chair11 man of an interagency team comprised of the

12 Secretary of Commerce, Secretary of Defense,

13 United States Trade Representative, Secretary of

14 Labor, and Secretary of State to consult with

15 foreign nations on limiting the adverse effects of

16 offsets in defense procurement without damaging

17 the economy or the defense industrial base of the

18 United States or United States defense produc19 tion or defense preparedness.

20 ‘‘(B) MEETINGS.—The President shall di21 rect the interagency team to meet on a quarterly

22 basis.

23 ‘‘(C) REPORTS.—The President shall direct

24 the interagency team to submit to Congress an

25 annual report, to be included as part of the re-
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1 port required under section 309(a) of the Defense

2 Production Act of 1950 (50 U.S.C. App.

3 2099(a)), that describes the results of the con4 sultations of the interagency team under sub5 paragraph (A) and the meetings of the inter6 agency team under subparagraph (B).

7 ‘‘(2) RECOMMENDATIONS FOR MODIFICATIONS.—

8 The interagency team shall submit to the President

9 any recommendations for modifications of any exist10 ing or proposed memorandum of understanding be11 tween officials acting on behalf of the United States

12 and 1 or more foreign countries (or any instrumen13 tality of a foreign country) relating to—

14 ‘‘(A) research, development, or production of

15 defense equipment; or

16 ‘‘(B) the reciprocal procurement of defense

17 items.’’.

Attest:

Secretary.
108TH CONGRESS

1ST SESSION S. 1680

SENATE AMENDMENT TO

HOUSE AMENDMENT