I 
111TH CONGRESS 
2D SESSION 
H. R. 5298 
To require the Secretary of Defense to take illegal subsidization into account 
in evaluating proposals for contracts for major defense acquisition pro-
grams, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 13, 2010 
Mr. TIAHRT (for himself, Mr. LARSEN of Washington, Mr. INSLEE, Mr. 
BLUNT, Mr. SMITH of Texas, Mr. MORAN of Kansas, Mrs. EMERSON, 
Mr. CLAY, Mr. LUETKEMEYER, Mr. CARNAHAN, Ms. JENKINS, Mrs. 
NAPOLITANO, Mr. MANZULLO, Mr. FOSTER, Mr. MCMAHON, Mr. 
LOEBSACK, Mr. WILSON of South Carolina, Mr. BROWN of South Caro-
lina, Mr. DAVIS of Illinois, Mr. CALVERT, Ms. DELAURO, Mr. BACA, Mr. 
COSTELLO, Mr. HASTINGS of Washington, Mr. GERLACH, Mr. ROTHMAN 
of New Jersey, Mr. RUSH, Mr. LIPINSKI, and Mr. HARE) introduced the 
following bill; which was referred to the Committee on Armed Services 
A BILL 
To require the Secretary of Defense to take illegal subsidiza-
tion into account in evaluating proposals for contracts 
for major defense acquisition programs, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Fair Defense Competi-
tion Act’’. 
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SEC. 2. ACCOUNTING FOR ILLEGAL SUBSIDIZATION IN 
EVALUATION 
OF 
PROPOSALS 
FOR 
CON-
TRACTS FOR MAJOR DEFENSE ACQUISITION 
PROGRAMS. 
(a) REQUIREMENT.— 
(1) IN GENERAL.—In awarding a contract for 
any major defense acquisition program, the Sec-
retary of Defense shall, in conducting the cost or 
price evaluation of any proposal for that contract, 
take into account any final panel report described in 
paragraph (2) and take the action described in para-
graph (3). 
(2) FINAL PANEL REPORT DESCRIBED.—A final 
panel report described in this paragraph is the final 
report of a dispute settlement panel of the World 
Trade Organization, submitted to the parties to a 
dispute pursuant to article 4.6 or 7.4 of the Agree-
ment on Subsidies and Countervailing Measures, 
that either a prohibited or actionable subsidy has 
been provided with respect to any merchandise or 
major component thereof, or the development of any 
merchandise or major component thereof, if that 
merchandise or component is part of a proposal de-
scribed in paragraph (1). 
(3) ACTION DESCRIBED.—If the subsidy found 
to be prohibited or actionable in the final panel re-
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port has not been withdrawn pursuant to article 4.7 
or 7.8 of the Agreement on Subsidies and Counter-
vailing Measures, the action described in this para-
graph is, in conducting the cost or price evaluation 
of a proposal, the Secretary shall increase the cost 
or price of the proposal by the amount of the sub-
sidy found to be prohibited or actionable in the final 
panel report described in paragraph (2), as cal-
culated jointly by the Secretary of Commerce and 
the United States Trade Representative after notifi-
cation is made by the Secretary of Defense for the 
need for such a calculation. 
(b) DEFINITIONS.—In this section: 
(1) AGREEMENT ON SUBSIDIES AND COUNTER-
VAILING MEASURES.—The term ‘‘Agreement on Sub-
sidies and Countervailing Measures’’ means the 
Agreement on Subsidies and Countervailing Meas-
ures described in section 101(d)(12) of the Uruguay 
Round Agreements Act (19 U.S.C. 3511(d)(12)). 
(2) COST OR PRICE EVALUATION.—The term 
‘‘cost or price evaluation’’ means an evaluation con-
ducted by a source selection authority pursuant to 
subpart 15.305(a)(1) of the Federal Acquisition 
Regulation. 
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(3) MAJOR DEFENSE ACQUISITION PROGRAM.— 
The term ‘‘major defense acquisition program’’ has 
the meaning given that term in section 2430 of title 
10, United States Code. 
(4) PROHIBITED OR ACTIONABLE SUBSIDY.— 
The term ‘‘prohibited or actionable subsidy’’ means 
a subsidy that is inconsistent with the Agreement on 
Subsidies and Countervailing Measures because the 
subsidy is a prohibited or actionable subsidy under 
the Agreement. 
Æ 
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