Supply CHAINS Act

To establish an Office of Manufacturing Security and Resilience in the Department of Commerce, to provide for a Department of Commerce assessment and strategy to counter threats to critical supply chains, and for other purposes. 1. Short title; table of contents (a) Short title This Act may be cited as the Supply Chain Health And Integrity for the Nation’s Success Act Supply CHAINS Act (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Office of Manufacturing Security and Resilience. Sec. 3. Department of Commerce assessment and strategy to counter threats to critical supply chains. Sec. 4. Critical supply chain monitoring program. Sec. 5. Manufacturing security and resilience program. Sec. 6. Critical supply chain innovation and best practices. Sec. 7. Program evaluation by the Inspector General of the Department of Commerce. Sec. 8. Agriculture and food system critical supply chain monitoring and assessment. Sec. 9. Department of Commerce capability assessment. Sec. 10. Definitions. 2. Office of Manufacturing Security and Resilience (a) Establishment Not later than 180 days after the date of the enactment of this Act, the Secretary shall establish or designate an Office of Manufacturing Security and Resilience. (b) Mission The mission of the Office shall be the following: (1) Help to promote the leadership of the United States with respect to critical industries and critical supply chains that— (A) strengthen the national security of the United States; and (B) have a significant effect on the economic security of the United States. (2) Encourage partnerships and collaboration with the private sector, labor organizations, the governments of countries that are allies or key international partner nations of the United States, States or political subdivisions thereof, and Tribal governments in order to— (A) promote the resilience of critical supply chains; and (B) identify, prepare for, and respond to supply chain shocks to— (i) critical industries; and (ii) critical supply chains. (3) Monitor the resilience, diversity, security, and strength of critical supply chains and critical industries. (4) Support the availability of critical goods from domestic manufacturers, domestic enterprises, and manufacturing operations in the United States and in countries that are allies or key international partner nations. (5) Assist the Federal Government in preparing for and responding to critical supply chain shocks, including by improving the flexible manufacturing capacities and capabilities in the United States. (6) Consistent with United States obligations under international agreements, encourage and incentivize the reduced reliance of domestic entities and domestic manufacturers on critical goods from countries of concern. (7) Encourage the relocation of manufacturing facilities that manufacture critical goods from countries of concern to the United States and countries that are allies and key international partner nations to strengthen the resilience, diversity, security, and strength of critical supply chains. (8) Support the creation of jobs with competitive wages in the United States manufacturing sector. (9) Encourage manufacturing growth and opportunities in economically distressed areas and underserved communities. (10) Promote the health of the economy of the United States and the competitiveness of manufacturing in the United States. (c) Assistant secretary of the office (1) Appointment and term The head of the Office shall be the Assistant Secretary of Manufacturing Security and Resilience, appointed by the President, by and with the advice and consent of the Senate. (2) Pay The Assistant Secretary shall be compensated at the rate in effect for level IV of the Executive Schedule under section 5315 of title 5, United States Code. (3) Administrative authorities The Assistant Secretary may appoint officers and employees in accordance with chapter 51 and subchapter III of chapter 53 (4) Use of existing department personnel and resources The Assistant Secretary shall, to the extent practicable, utilize existing personnel, resources, and expertise of the Department of Commerce. (d) Expertise and staffing In executing the mission under subsection (b), the Assistant Secretary— (1) shall establish capabilities to— (A) assess the state of technology, innovation, and production capacity in the United States and other nations; and (B) conduct other activities deemed to be critical for the use of analytic capabilities, statistics, datasets, and metrics related to critical technologies and innovation; (2) may utilize external organizations, such as federally funded research and development centers and institutions of higher education, to provide independent and objective technical support; and (3) shall evaluate and implement, when available and as appropriate, recommendations from the Department of Commerce capability assessment produced under section 9. 3. Department of Commerce assessment and strategy to counter threats to critical supply chains (a) In general In accordance with Executive Order No. 14017 (86 Fed. Reg. 11849; relating to America’s supply chains), the Assistant Secretary shall, not later than 1 year after the date of the enactment of this Act, develop a strategy for the Department of Commerce to support the resilience, diversity, security, and strength of critical supply chains. (b) Strategy The strategy required under subsection (a) shall include a plan to do the following: (1) Support sufficient access to critical goods by mitigating critical supply chain vulnerabilities, including critical supply chains concentrated in countries of concern. (2) Collaborate with other relevant Federal agencies to assist allies or key international partner nations build capacity for manufacturing critical goods. (3) Initiate and support translation research in engineering and manufacturing by entering into contracts or making other arrangements (including grants, awards, cooperative agreements, loans, and other forms of assistance) to advance that research and to assess the impact of that research on the economic well-being, climate, environment, public health, and national security of the United States. (4) Recover from supply chain shocks. (5) Identify, in coordination with other relevant Federal agencies, actions relating to critical supply chains with which the United States might— (A) raise living standards; (B) increase employment opportunities; and (C) improve response to supply chain shocks. (6) Protect against supply chain shocks from countries of concern relating to critical supply chains. (7) Provide recommendations to effectuate the strategy under this section, including recommendations to— (A) increase visibility into the networks and capabilities of suppliers and domestic manufacturers; (B) identify industry best practices; (C) evaluate how diverse supplier networks, multi-platform and multi-region production capabilities and sources, and integrated global and regional critical supply chains can— (i) enhance the resilience of critical industries and manufacturing capabilities in the United States; (ii) support and create jobs in the United States; and (iii) support access of the United States to critical goods during a supply chain shock; (D) identify and mitigate risks, including— (i) the financial and operational risks of a critical supply chain; (ii) significant vulnerabilities to critical supply chain shocks including extreme weather events, cyberattacks, pandemic and biological threats, terrorist and geopolitical attacks, and other emergencies; and (iii) exposure to gaps and vulnerabilities in domestic capacity or capabilities and sources of imports needed to sustain critical industries and critical supply chains; (E) identify enterprise resource planning systems that are— (i) compatible across critical supply chain tiers; and (ii) affordable for small and medium-sized businesses; (F) understand the total cost of ownership, total value contribution, and other best practices that encourage strategic partnerships throughout critical supply chains; (G) identify opportunities to work with allies or key international partner nations of the United States to build more resilient critical industry supply chains and mitigate risks; (H) identify opportunities to reuse and recycle critical goods, including raw materials, to increase the resilience of critical supply chains; (I) strengthen the financial and operational health of small and medium-sized businesses in critical supply chains of the United States and countries that are allies or key international partner nations of the United States to mitigate risks and ensure diverse and competitive supplier markets that are less vulnerable to failure; (J) coordinate with countries on— (i) sourcing critical goods, industrial equipment, and manufacturing technology; and (ii) developing, sustaining, and expanding production and availability of critical goods, industrial equipment, and manufacturing technology during a supply chain shock; and (K) identify such other services as the Assistant Secretary determines necessary. (c) Submission of strategy (1) In general Not later than 1 year after the date of enactment of this Act, the Assistant Secretary shall submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate, and publish on the website of the Department of Commerce, a report containing the strategy developed under subsection (a). (2) Update Not less than once every 4 years after the date on which the strategy is submitted under paragraph (1), the Assistant Secretary shall submit to Congress and publish on the website of the Department of Commerce an update to such strategy. (3) Form The report submitted under paragraph (1), and any update submitted under paragraph (2), shall be submitted in unclassified form and may include a classified annex. (d) Assessment (1) In general Not later than 1 year after the date of enactment of this Act, and not later than once every four years thereafter, the Assistant Secretary, in coordination with the head of each relevant Federal agency and relevant private sector entities, labor organizations, States and political subdivisions thereof, and territorial and Tribal governments, shall submit to the relevant committees of Congress and post on the website of the Assistant Secretary a report on critical supply chain resilience and domestic manufacturing (in this subsection referred to as the report (2) Contents of assessment The assessment shall include the following: (A) An identification of— (i) industries that are critical for the national security of the United States, considering the key technology focus areas and critical infrastructure; (ii) supply chains and critical goods designated under section 4(d); (iii) other goods, supplies, and services that are critical to the crisis preparedness of the United States; (iv) substitutes for critical goods, industrial equipment, and manufacturing technology; and (v) countries that are critical to addressing critical supply chain weaknesses and vulnerabilities. (B) A description of the matters identified and evaluated pursuant to section 4(b)(1), including— (i) the manufacturing base and critical supply chains in the United States, including the manufacturing base and critical supply chains for— (I) industrial equipment; (II) critical goods, including raw materials, semiconductors, and rare earth permanent magnets, that are essential to the production of technologies and supplies for critical industries; and (III) manufacturing technology; and (ii) the ability of the United States to— (I) maintain readiness with respect to preparing for and responding to supply chain shocks; and (II) in response to a supply chain shock— (aa) surge production in critical industries; (bb) surge production of critical goods and industrial equipment; and (cc) maintain access to critical goods, industrial equipment, and manufacturing technology. (C) An assessment and description of— (i) demand and supply of critical goods, industrial equipment, and manufacturing technology; (ii) production of critical goods, industrial equipment, and manufacturing technology by domestic manufacturers; (iii) the capability and capacity of domestic manufacturers and manufacturers in countries that are allies or key international partner nations of the United States to manufacture critical goods, industrial equipment, and manufacturing technology; and (iv) how supply chain shocks could affect rural, Tribal, and underserved communities. (D) An identification of defense, intelligence, homeland, economic, domestic labor supply, natural, geopolitical, or other contingencies and other supply chain shocks that may disrupt, strain, compromise, or eliminate critical supply chains. (E) An assessment of— (i) the resilience and capacity of the manufacturing base, critical supply chains, and workforce of the United States and allies and key international partner nations that can sustain critical industries through a supply chain shock; (ii) the flexible manufacturing capacity and capabilities available in the United States in the case of a supply chain shock; (iii) the effect innovation has on domestic manufacturing; and (iv) any single points of failure in the critical supply chains described in clause (i). (F) With respect to countries that are allies or key international partner nations of the United States, a review of the sourcing of critical goods, industrial equipment, and manufacturing technology associated with critical industries from those countries. (G) An assessment of policies, rules, and regulations that impact the operating costs of domestic manufacturers and inhibit the ability for domestic manufacturers to compete with global competitors. (3) Prohibition The report may not include— (A) critical supply chain information that is not aggregated; or (B) confidential business information of a private sector entity. (4) Collaboration The head of any Federal agency with jurisdiction over any critical supply chain shall collaborate with the Assistant Secretary and provide any information, data, or assistance that the Assistant Secretary determines to be necessary for developing the report. Such assistance may include the use of services, equipment, personnel, and facilities of other Federal agencies with or without reimbursement upon agreement between the Secretary and the head of such other Federal agency. (5) Form The report, and any update submitted thereafter, shall be submitted in unclassified form and may include a classified annex. (6) Public comment The Assistant Secretary shall provide for a period of public comment and review in developing the report. 4. Critical supply chain monitoring program (a) Establishment The Assistant Secretary shall establish in the Department of Commerce a supply chain resiliency and crisis program to carry out the following activities described in subsection (b). (b) Activities Under the program, the Assistant Secretary, shall carry out the following activities: (1) In coordination with the private sector and consultation with the coordination group established under subsection (c)— (A) map, monitor, and model the diversity, security, reliability, and strength of critical supply chains, which may include— (i) understanding the financial and operational conditions of domestic manufacturers and domestic enterprises involved in critical supply chains; (ii) modeling the impact of supply chain shocks on critical industries, critical supply chains, domestic enterprises, and domestic manufacturers; (iii) monitoring the demand for and supply of critical goods and services, industrial equipment, and manufacturing technology needed for critical supply chains, including critical goods and services, industrial equipment, and manufacturing technology obtained or purchased from a person outside of the United States or imported into the United States; and (iv) monitoring manufacturing, warehousing, transportation, and distribution related to critical supply chains; (B) identify high priority critical supply chain gaps and vulnerabilities, which may include single points of failure, single producers, and consolidated manufacturing, in critical industries and critical supply chains that— (i) exist as of the date of the enactment of this section; or (ii) are anticipated in the future; (C) identify potential supply chain shocks that may disrupt, strain, compromise, or eliminate a critical supply chain; (D) evaluate the capability and capacity of domestic manufacturers or manufacturers located in countries that are allies or key international partner nations to serve as sources for critical goods, industrial equipment, or manufacturing technology needed in critical supply chains; (E) evaluate the effect on the national security and economic competitiveness of the United States, including on consumer prices, job losses, and wages, that may result from the disruption, strain, compromise, or elimination of a critical supply chain; (F) evaluate the state of the manufacturing workforce, including by— (i) identifying the needs of domestic manufacturers; and (ii) identifying opportunities to create high-quality manufacturing jobs; and (G) identify investments in critical goods, industrial equipment, and manufacturing technology from non-Federal sources. (2) In coordination with the private sector, States or political subdivisions thereof, and Tribal governments, in consultation with the coordination group established under subsection (c), and, as appropriate, in cooperation with the governments of countries that are allies or key international partner nations of the United States, the following: (A) Identify opportunities to reduce critical supply chain gaps and vulnerabilities in critical industries and critical supply chains. (B) Encourage partnerships between the Federal Government and industry, labor organizations, States and political subdivisions thereof, territorial and Tribal governments, to better respond to supply chain shocks to critical industries and critical supply chains and coordinate response efforts. (C) Encourage partnerships between the Federal Government and the governments of countries that are allies or key international partner nations of the United States. (D) Develop or identify opportunities to build the capacity of the United States in critical industries and critical supply chains. (E) Develop or identify opportunities to build the capacity of countries that are allies or key international partner nations of the United States in critical industries and critical supply chains. (F) Develop coordination mechanisms to improve critical supply chain response to supply chain shocks. (3) Acting within existing authorities of the Department of Commerce and in coordination with the Secretary of State and the United States Trade Representative, work with governments of countries that are allies or key international partner nations of the United States to promote diversified and resilient critical supply chains that ensure the supply of critical goods, industrial equipment, and manufacturing technology to the United States and companies of countries that are allies or key international partner nations of the United States. (4) Coordinate with other offices and divisions of the Department of Commerce and other Federal agencies to leverage existing authorities, as of the date of the enactment of this Act, to encourage the resilience of supply chains of critical industries. (c) Coordination group (1) In general In carrying out the applicable activities under subsection (a), the Assistant Secretary shall establish a unified coordination group led by the Assistant Secretary which may include, as appropriate, private sector partners, labor organizations, and federally funded research and development centers, to serve as a body for consultation and coordination between and among Federal agencies described under subsection (f) to plan for and respond to supply chain shocks and support the resilience, diversity, security, and strength of critical supply chains. (2) Implementation Through the unified coordination group established under paragraph (1), the Assistant Secretary shall do the following: (A) Acquire on a voluntary basis technical, engineering, and operational critical supply chain information from the private sector in a manner that ensures any critical supply chain information provided by the private sector is kept confidential and is exempt from disclosure under section 552(b)(3) of title 5, United States Code (commonly known as the Freedom of Information Act (B) Study the critical supply chain information acquired under subparagraph (A) to assess critical supply chain resilience and inform planning. (C) Convene with relevant private sector entities to share best practices, planning, and capabilities to respond to potential supply chain shocks. (D) Develop contingency plans and coordination mechanisms to ensure an effective and coordinated response to potential supply chain shocks. (3) Subgroups In carrying out the activities described in paragraph (2), the Assistant Secretary may establish subgroups of the unified coordination group established under paragraph (1) led by the head of an appropriate Federal agency. (4) International cooperation The Secretary, in consultation with other relevant Federal agencies, may cooperate or enter into agreements with governments of countries that are allies or key international partner nations of the United States relating to enhancing the security and resilience of critical supply chains in response to supply chain shocks. (d) Designations The Assistant Secretary shall— (1) not later than 270 days after the date of the enactment of this Act, designate— (A) critical industries; (B) supply chains; and (C) critical goods; (2) provide for a period of public comment and review in carrying out paragraph (1); and (3) update the designations made under paragraph (1) not less frequently than once every four years. (e) Report to congress Concurrent with the annual submission by the Secretary of the budget under section 1105 of title 31, United States Code, the Secretary shall submit to the relevant committees of Congress and post on the website of the Assistant Secretary a report that contains a summary of the activities carried out under this section during the fiscal year covered by the report. Such report shall be submitted in unclassified form and may include a classified annex. (f) Coordination (1) In general In implementing the requirements under this section, the Assistant Secretary shall, as appropriate coordinate with— (A) the heads of appropriate Federal agencies, including— (i) the Secretary of State; and (ii) the United States Trade Representative; and (B) the Attorney General and the Federal Trade Commission with respect to— (i) advice on the design and activities of the unified coordination group described in subsection (c)(1); and (ii) ensuring compliance with Federal antitrust law. (2) Specific coordination In carrying out the requirements under this section, with respect to critical supply chains involving specific sectors, the Assistant Secretary shall, as appropriate, coordinate with— (A) the Secretary of Defense; (B) the Secretary of Homeland Security; (C) the Secretary of the Treasury; (D) the Secretary of Energy; (E) the Secretary of Transportation; (F) the Secretary of Agriculture; (G) the Director of National Intelligence; (H) the Secretary of Health and Human Services; (I) the Small Business Administration; (J) the Secretary of Labor; and (K) the head of any other relevant Federal agency, as appropriate. (g) Rule of construction Nothing in this section shall be construed to require any private entity— (1) to share information with the Secretary or Assistant Secretary; (2) to request assistance from the Secretary or Assistant Secretary; or (3) that requests assistance from the Secretary or Assistant Secretary to implement any measure or recommendation suggested by the Secretary or Assistant Secretary. (h) Protections (1) In general (A) Protections Subsections (a)(1), (b), and (d) of section 2224 of the Homeland Security Act of 2002 ( 6 U.S.C. 673 (B) References For the purpose of this subsection, with respect to section 2224 of the Homeland Security Act of 2002 ( 6 U.S.C. 673 (i) the express statement described in subsection (a)(1) of that section shall be deemed to refer to the express statement described in paragraph (2) of this subsection; (ii) references in the subsections described in subparagraph (A) to this subtitle (iii) the reference to protecting critical infrastructure or protected systems (iv) the reference to critical infrastructure information (2) Express statement The express statement described in this paragraph, with respect to information or records, is— (A) in the case of written information or records, a written marking on the information or records substantially similar to the following: This information is voluntarily submitted to the Federal Government in expectation of protection from disclosure as provided by the provisions of section 4(h) of the Supply Chain Health And Integrity for the Nation’s Success Act (B) in the case of oral information, a written statement similar to the statement described in subparagraph (A) submitted within a reasonable period following the oral communication. (3) Inapplicability to semiconductor incentive program This subsection shall not apply to the voluntary submission of critical supply chain information by a private entity in an application for Federal financial assistance under section 9902 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 ( Public Law 116–283 (i) Protections savings clause Nothing in subsection (h) shall be construed to limit or otherwise affect the ability of a State, local, or Federal Government entity, agency, or authority, or any third party, under applicable law, to obtain supply chain information in a manner not covered by subsection (h), including any information lawfully and properly disclosed generally or broadly to the public and to use such information in any manner permitted by law. For purposes of subsection (h), a permissible use of independently obtained supply chain information includes the disclosure of such information under section 2302(b)(8) of title 5, United States Code. (j) Consistency with international agreements This section shall be applied in a manner consistent with United States obligations under international agreements. 5. Manufacturing security and resilience program (a) In general Not later than 270 days after the date of enactment of this Act, the Secretary shall enter into a contract with an independent entity to conduct a study evaluating the economic and national security benefits and detriments of establishing a program within the Office to provide and incentivize, as applicable, grants, loans, loan guarantees, and equity investment to support the resilience, diversity, security, and strength of supply chains. (b) Report Not later than 2 years after the date of enactment of this Act, the Secretary shall submit to the Committee on Commerce, Science, and Transportation of the Senate, the Committee on Energy and Commerce of the House of Representatives, and publish on the website of the Office, a report that contains the results of the study conducted by the entity described under subsection (a). 6. Critical supply chain innovation and best practices (a) In general Subject to the availability of appropriations, the Assistant Secretary, in consultation with the Director of the National Institute of Standards and Technology, shall, on an ongoing basis, facilitate and support the development and dissemination of a voluntary set of standards, guidelines, best practices, management strategies, methodologies, procedures, and processes for domestic manufacturers and entities manufacturing, purchasing, or using a critical good to— (1) measure the resilience, diversity, security, and strength of the critical supply chains of such manufacturers and entities; (2) quantify the value of improved resilience, diversity, security, and strength of critical supply chains to such manufacturers and entities; and (3) design and implement measures to reduce the risks of disruption, strain, compromise, or elimination of critical supply chains of such manufacturers and entities. (b) Requirements In carrying out subsection (a), the Assistant Secretary shall do the following: (1) Coordinate closely and regularly with relevant private sector personnel and entities, manufacturing extension centers established as part of the Hollings Manufacturing Extension Partnership, Manufacturing USA institutes as described in section 34(d) of the National Institute of Standards and Technology Act ( 15 U.S.C. 278s(d) (2) Consult with the head of any relevant Federal agency, including those with jurisdiction over critical supply chains, States, local governments, Tribal governments, the governments of other nations, and international organizations, as necessary. (3) Collaborate with private sector stakeholders to identify prioritized, flexible, repeatable, performance-based, and cost-effective critical supply chain resilience approaches that may be voluntarily adopted by domestic manufacturers and entities purchasing or using a critical good to achieve the goals of subsection (a). (4) Facilitate the design of— (A) voluntary processes for selecting suppliers that support the resilience, diversity, security, and strength of critical supply chains; and (B) methodologies to identify and mitigate the effects of a disruption, strain, compromise, or elimination of a critical supply chain. (5) Disseminate research and information to assist domestic manufacturers redesign products, expand domestic manufacturing capacity, and improve other capabilities as required to improve the resilience, diversity, security, and strength of critical supply chains. (6) Incorporate relevant voluntary standards and industry best practices. (7) Consider small business concerns. (8) Leverage existing mechanisms for the Federal Government to provide critical supply chain solutions, including manufacturing technology, to include providing products, tools, and workforce development solutions related to critical supply chain resilience to small and medium-sized manufacturers. 7. Program evaluation by the Inspector General of the Department of Commerce (a) Program evaluation Not later than 4 years after the date of the enactment of this Act, and every 4 years thereafter, the Inspector General of the Department of Commerce shall conduct an audit of the Office to— (1) evaluate the extent to which the requirements under this Act are met; and (2) provide recommendations on any proposed changes to improve the effectiveness of the Office on meeting the mission described under section 2(b). (b) Authorization of Appropriations There is authorized to be appropriated to the Inspector General of the Department of Commerce $5,000,000 for fiscal years 2024 through 2028, to remain available until expended, to carry out subsection (a). 8. Agriculture and food system critical supply chain monitoring and assessment (a) Activities Subject to the availability of appropriations, not later than 270 days after the date of the enactment of this Act, the Assistant Secretary, in consultation with the Secretary of Agriculture, shall identify and evaluate the stability and reliability of the agriculture and food system critical supply chain, including— (1) the state of the agriculture and food system workforce and any critical supply chain vulnerabilities related to the agriculture and food system workforce; (2) transportation bottlenecks in the distribution of agricultural inputs, processed and unprocessed food and food input products, and consumer-ready food products; and (3) opportunities to create training and education programs focused on high-quality jobs in the agriculture and food system that— (A) increase the stability of the agriculture and food system; and (B) alleviate critical supply chain bottlenecks in the distribution of agricultural inputs, processed and unprocessed food and food input products, and consumer-ready food products. (b) Report to congress In carrying out subsection (a), the Assistant Secretary shall submit to the Committee on Energy and Commerce and the Committee on Agriculture of the House of Representatives and the Committee on Commerce, Science, and Transportation and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that contains the following: (1) An identification of the strengths, weaknesses, critical bottlenecks, workforce challenges and opportunities, and overall stability and reliability of the agriculture and food system critical supply chain. (2) An assessment of Federal, State, and local laws and regulations that— (A) increase the stability and reliability of the agriculture and food system critical supply chain; or (B) decrease or otherwise negatively impact, both in the present moment and in the future, the stability and reliability of the agriculture and food system critical supply chain. (3) Specific recommendations to improve the security, safety, and resilience of the agriculture and food system critical supply chain. The recommendations shall contain— (A) long-term strategies; (B) industry best practices; (C) risk mitigation actions to prevent future bottlenecks and vulnerabilities at all levels of the agriculture and food system critical supply chain; and (D) legislative and regulatory actions that would positively impact the security and resilience of the agriculture and food system critical supply chain. 9. Department of Commerce capability assessment (a) Assessment The Secretary shall, not later than one year after the date of the enactment of this Act, produce a report— (1) identifying the duties, responsibilities, resources, programs, and expertise within the offices and bureaus of the Department of Commerce relevant to critical supply chain resilience and manufacturing and industrial innovation; (2) identifying and assessing the purpose, legal authority, effectiveness, efficiency, and limitations of each office and bureau identified under paragraph (1); and (3) providing recommendations to improve the effectiveness, efficiency, and impact of the offices and bureaus identified under paragraph (1), which may include recommendations to coordinate— (A) across offices and bureaus identified under paragraph (1); and (B) with Federal agencies implementing similar activities related to critical supply chain resilience and manufacturing and industrial innovation. (b) External organization In producing the report required under subsection (a), the Secretary may contract with an appropriate external organization, such as the National Academy of Public Administration. (c) Report The Secretary shall provide the report required under subsection (a) to the appropriate committees of Congress, along with a strategy to implement, as appropriate and as determined by the Secretary, the recommendations under the report. 10. Definitions In this Act: (1) Ally or key international partner nation The term ally or key international partner nation (A) means countries that are critical to addressing critical supply chain weaknesses and vulnerabilities; and (B) does not include— (i) a country that poses a significant national security or economic security risk to the United States; or (ii) a country of concern. (2) Assistant secretary The term Assistant Secretary (3) Country of concern The term country of concern (A) that poses a significant national security or economic security threat to the United States; (B) is a covered nation (as defined under section 4872 of title 10, United States Code); or (C) whose government, or elements of such government, has proven to have, or has been credibly alleged to have, committed crimes against humanity or genocide. (4) Critical good The term critical good (A) the national security or economic security of the United States; and (B) critical infrastructure. (5) Critical industry The term critical industry (6) Critical infrastructure The term critical infrastructure 42 U.S.C. 5195c (7) Critical supply chain The term critical supply chain (8) Critical supply chain information The term critical supply chain information (A) sustaining and adapting critical supply chains during a supply chain shock; (B) critical supply chain risk mitigation and recovery planning with respect to a supply chain shock, including any planned or past assessment, projection, or estimate of a vulnerability within the critical supply chain, including testing, supplier network assessments, production flexibility, risk evaluations thereto, risk management planning, or risk audits; or (C) operational best practices, planning, and supplier partnerships that enable enhanced resilience of critical supply chains during a supply chain shock, including response, repair, recovery, reconstruction, insurance, or continuity. (9) Domestic enterprise The term domestic enterprise (10) Domestic manufacturer The term domestic manufacturer (11) Economically distressed area The term economically distressed area 42 U.S.C. 3161(a) (12) Federal agency The term Federal agency agency (13) Industrial equipment The term industrial equipment (14) Key technology focus areas The term key technology focus areas 42 U.S.C. 19107 Public Law 117–167 (15) Labor organization The term labor organization 29 U.S.C. 152(5) (A) any organization composed of labor organizations, such as a labor union federation or a State or municipal labor body; and (B) any organization which would be included in the definition for such term under such section 2(5) but for the fact that the organization represents— (i) individuals employed by the United States, any wholly owned Government corporation, any Federal Reserve Bank, or any State or political subdivision thereof; (ii) individuals employed by persons subject to the Railway Labor Act ( 45 U.S.C. 151 et seq. (iii) individuals employed as agricultural laborers. (16) Manufacture The term manufacture (17) Manufacturing technology The term manufacturing technology (18) Office The term Office (19) Relevant committees of congress The term relevant committees of Congress (A) The Committee on Commerce, Science, and Transportation of the Senate. (B) The Committee on Appropriations of the Senate. (C) The Committee on Finance of the Senate. (D) The Committee on Homeland Security and Governmental Affairs of the Senate. (E) The Committee on Armed Services of the Senate. (F) The Committee on Energy and Natural Resources of the Senate. (G) The Select Committee on Intelligence of the Senate. (H) The Committee on Science, Space, and Technology of the House of Representatives. (I) The Committee on Energy and Commerce of the House of Representatives. (J) The Committee on Appropriations of the House of Representatives. (K) The Committee on Ways and Means of the House of Representatives. (L) The Committee on Homeland Security of the House of Representatives. (M) The Committee on Armed Services of the House of Representatives. (N) The Permanent Select Committee on Intelligence of the House of Representatives. (O) The Committee on Agriculture of the House of Representatives. (P) The Committee on Agriculture, Nutrition, and Forestry of the Senate. (20) Resilient critical supply chain The term resilient critical supply chain (A) ensures that the United States can sustain critical industry production, critical supply chains, services, and access to critical goods, industrial equipment, and manufacturing technology during supply chain shocks; and (B) has key components of resilience that include— (i) effective private sector risk management and mitigation planning to sustain critical supply chains and supplier networks during a supply chain shock; (ii) minimized or managed exposure to supply chain shocks; and (iii) the financial and operational capacity to— (I) sustain critical supply chains during supply chain shocks; and (II) recover from supply chain shocks. (21) Secretary The term Secretary (22) Small business concern The term small business concern 15 U.S.C. 632(a) (23) State The term State (24) Supply chain shock The term supply chain shock (A) A natural disaster or extreme weather event. (B) A pandemic. (C) A biological threat. (D) A cyber attack. (E) A great power conflict. (F) A terrorist or geopolitical attack. (G) A public health emergency declared by the Secretary of Health and Human Services pursuant to section 319 of the Public Health Service Act ( 42 U.S.C. 247d (H) An event for which the President declares a major disaster or an emergency under section 401 or 501, respectively, of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170 and 5191). (I) Any other critical supply chain disruption or threat that affects the national security or economic security of the United States.

Summary: Supply Chain Health And Integrity for the Nation's Success Act or the Supply CHAINS Act This bill requires the Department of Commerce to establish an Office of Manufacturing Security and Resilience to monitor and respond to disruptions in critical industries and supply chains. Specifically, the office must (1) monitor the manufacturing, warehousing, transportation, and distribution related to critical supply chains; (2) identify high-priority supply chain gaps and vulnerabilities in critical industries, (3) identify and evaluate the effect of supply chain disruptions on U.S. economic security, and (4) collaborate with other governmental bodies and key international partners to identify opportunities to reduce supply chain gaps and vulnerabilities. The office also must establish a unified coordination group to oversee the interagency response to supply chain shocks and the office must designate certain critical industries, supply chains, and critical goods and services. Additionally, the office must develop voluntary standards and best practices to reduce the risk of critical supply chain disruption; it also must evaluate the stability and reliability of the agriculture and food system critical supply chain. The bill includes various program evaluation and reporting requirements.