342
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘Agreement on Subsidies and 
Countervailing Measures’’ means the agreement de-
scribed in section 101(d)(12) of the Uruguay Round 
Agreements Act (19 U.S.C. 3501(d)(12)). 
(2) The term ‘‘foreign person’’ means—
(A) an individual who is not a United 
States person or an alien lawfully admitted for 
permanent residence into the United States; or 
(B) a corporation, partnership, or other 
nongovernmental entity which is not a United 
States person. 
(3) The term ‘‘United States person’’ means—
(A) a natural person who is a citizen of the 
United States or who owes permanent alle-
giance to the United States; and 
(B) a corporation or other legal entity 
which is organized under the laws of the United 
States, any State or territory thereof, or the 
District of Columbia, if natural persons de-
scribed in subparagraph (A) own, directly or in-
directly, more than 50 percent of the out-
standing capital stock or other beneficial inter-
est in such legal entity. 
(e) APPLICABILITY.—
343
(1) PROGRAMS WITH MILESTONE B APPROVAL 
NOT
COVERED.—The prohibition under subsection 
(a) shall not apply to any contract under a major 
defense acquisition program that has received Mile-
stone B approval as of the date of the enactment of 
this Act. 
(2) DEFINITIONS.—In this subsection: 
(A) The term ‘‘major defense acquisition 
program’’ means a Department of Defense ac-
quisition program that is a major defense ac-
quisition program for purposes of section 2430 
of title 10, United States Code. 
(B) The term ‘‘Milestone B approval’’ has 
the meaning provided that term in section 
2366(e)(7) of such title. 
SEC. 818. BUY AMERICAN REQUIREMENT FOR PROCURE-
MENTS 
OF 
GOODS 
CONTAINING 
COMPO-
NENTS. 
(a) REQUIREMENT.—Notwithstanding any agree-
ment described in subsection (b), with respect to any man-
ufactured end product procured by the Department of De-
fense—
(1) the end product shall be manufactured in 
the United States; and
344
(2) the cost of components of the end product 
that are mined, produced, or manufactured inside 
the United States shall exceed 50 percent of the cost 
of all components of the end product. 
(b) AGREEMENT DESCRIBED.—An agreement re-
ferred to in subsection (a) is any reciprocal defense pro-
curement memorandum of understanding between the 
United States and a foreign country pursuant to which 
the Secretary of Defense has prospectively waived the Buy 
American Act (41 U.S.C. 10a et seq.) for certain products 
in that country. 
SEC. 819. DOMESTIC SOURCE RESTRICTION FOR LITHIUM 
ION CELLS AND BATTERIES. 
Section 2534(a) of title 10, United States Code, is 
amended by adding at the end the following new para-
graph: 
‘‘(6) LITHIUM ION CELLS AND BATTERIES.—
Lithium ion cells and batteries and manufacturing 
technology for lithium ion cells and batteries.’’. 
SEC. 820. PROHIBITION ON DEFENSE CONTRACTORS RE-
QUIRING LICENSES OR FEES FOR USE OF 
MILITARY LIKENESSES AND DESIGNATIONS. 
(a) IN GENERAL.—The Secretary of Defense shall re-
quire that any contract entered into by the Department 
of Defense include a provision prohibiting the contractor
345
from requiring toy and hobby manufacturers, distributors, 
or merchants to obtain licenses from or pay fees to the 
contractor for the use of military likenesses or designa-
tions on items provided under the contract. 
(b) LIMITATION TO UNITED STATES COMPANIES.—
Subsection (a) applies only with respect to toy and hobby 
manufacturers, distributors, or merchants incorporated in 
or organized under the laws of the United States. 
SEC. 820A. ESTABLISHMENT OF EVALUATION FACTOR FOR 
DEFENSE 
CONTRACTORS 
EMPLOYING 
OR 
SUBCONTRACTING WITH MEMBERS OF THE 
SELECTED RESERVE OF THE RESERVE COM-
PONENTS OF THE ARMED FORCES. 
(a) DEFENSE CONTRACTS.—In awarding any con-
tract for the procurement of goods or services, the Depart-
ment of Defense, when considering source selection cri-
teria, shall use as an evaluation factor whether entities 
intend to carry out the contract using employees or indi-
vidual subcontractors for goods and services who are mem-
bers of the Selected Reserve of the reserve components of 
the Armed Forces. 
(b) DOCUMENTATION OF SELECTED RESERVE-RE-
LATED EVALUATION FACTOR.—Any entity claiming intent 
to carry out a contract using employees or individual sub-
contractors for goods and services who are members of
346
the Selected Reserve of the reserve components of the 
Armed Forces shall be required to document to the De-
partment of Defense the number (and names, if re-
quested) of such members of the Selected Reserve that the 
entity will employ, or execute personal services contracts 
with, for the contract in question. 
(c) NATIONAL SECURITY WAIVER.—The Secretary of 
the military department concerned, or, in the case of con-
tracts which are not negotiated by a military department, 
the Secretary of Defense, may waive the requirement in 
subsection (a) with respect to a contract if the Secretary 
concerned determines that the waiver is necessary for rea-
sons of national security. 
(d) REGULATIONS.—The Federal Acquisition Regula-
tion shall be revised as necessary to implement this sec-
tion. 
Subtitle C—Amendments to Gen-
eral 
Contracting 
Authorities, 
Procedures, and Limitations 
SEC. 821. INCREASED FLEXIBILITY FOR DESIGNATION OF 
CRITICAL ACQUISITION POSITIONS IN DE-
FENSE ACQUISITION WORKFORCE. 
Subparagraph (A) of section 1733(b)(1) of title 10, 
United States Code, is amended to read as follows: