672 
trolled by partner countries or allies of the United 
States. 
(3) COVERED SUPPLIES AND MATERIALS.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘‘covered supplies 
and materials’’— 
(i) means— 
(I) critical safety systems and 
subsystems; 
(II) assemblies and subassemblies 
integral to a system or subsystem; and 
(III) repair, maintenance, logis-
tics support, and overhaul services for 
systems, subsystems, assemblies, sub-
assemblies, and parts integral to a sys-
tems; and 
(ii) includes systems, subsystems, as-
semblies, subassemblies, and parts described 
in clause (i) acquired with respect to com-
mercial items (as defined under section 
2.101 of title 48, Code of Federal Regula-
tions) and non-commercial items. 
(B) CERTAIN STRATEGIC AND CRITICAL MA-
TERIALS
EXCLUDED.—The term ‘‘covered sup-
plies and materials’’ does not include any stra-
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tegic and critical materials (as defined under 
section 12 of the Strategic and Critical Materials 
Stock Piling Act (50 U.S.C. 98h-3)) with respect 
to which the Secretary includes an appropriate 
reduction plan in a report required under sec-
tion 14 of such Act (50 U.S.C. 98h-5). 
(4) FOREIGN
ADVERSARY.—The term ‘‘foreign 
adversary’’ has the meaning given such term in sec-
tion 8(c) of the Secure and Trusted Communications 
Networks Act of 2019 (47 U.S.C. 1607(c)). 
(5) MAJOR END ITEM.—The term ‘‘major end 
item’’ means an item subject to a unique item-level 
traceability requirement at any time in the life cycle 
of such item under Department of Defense Instruction 
8320.04, titled ‘‘Item Unique Identification (IUID) 
Standards for Tangible Personal Property’’ and dated 
September 3, 2015, or any successor instruction. 
SEC. 834. ENHANCED DOMESTIC CONTENT REQUIREMENT 
FOR MAJOR DEFENSE ACQUISITION PRO-
GRAMS. 
(a) ASSESSMENT REQUIRED.— 
(1) IN GENERAL.—Not later than one year after 
the date of the enactment of this Act, the Secretary of 
Defense shall submit to the congressional defense com-
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mittees a report assessing the domestic source content 
of any procurement. 
(2) INFORMATION REPOSITORY.—The Secretary 
of Defense shall establish an information repository 
for the collection and analysis of information related 
to domestic source content that can be used for contin-
uous data analysis and program management activi-
ties. 
(b) ENHANCED DOMESTIC CONTENT REQUIREMENT.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), for purposes of chapter 83 of title 41, 
United States Code, manufactured articles, materials, 
or supplies procured are manufactured substantially 
all from articles, materials, or supplies mined, pro-
duced, or manufactured in the United States if the 
cost of such component articles, materials, or sup-
plies— 
(A) supplied not later than the date of the 
enactment of this Act, exceeds 60 percent of cost 
of the manufactured articles, materials, or sup-
plies procured; 
(B) supplied during the period beginning 
January 1, 2024, and ending December 31, 
2028, exceeds 65 percent of the cost of the manu-
factured articles, materials, or supplies; and 
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(C) supplied on or after January 1, 2029, 
exceeds 75 percent of the cost of the manufac-
tured articles, materials, or supplies. 
(2) EXCLUSION
FOR
CERTAIN
MANUFACTURED 
ARTICLES.—Paragraph (1) shall not apply to manu-
factured articles that consist wholly or predominantly 
of iron, steel, or a combination of iron and steel. 
(3) RULEMAKING.— 
(A) IN GENERAL.—Not later than 180 days 
after the date of the enactment of this Act, the 
Secretary of Defense shall issue rules to deter-
mine the treatment of the lowest price offered for 
a foreign end product for which 55 percent or 
more of the component articles, materials, or 
supplies of such foreign end product are manu-
factured substantially all from articles, mate-
rials, or supplies mined, produced, or manufac-
tured in the United States if— 
(i) the application paragraph (1) re-
sults in an unreasonable cost; or 
(ii) no offers are submitted to supply 
manufactured articles, materials, or sup-
plies manufactured substantially all from 
articles, materials, or supplies mined, pro-
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duced, or manufactured in the United 
States. 
(B) TERMINATION.—Rules issued under this 
paragraph shall cease to have force or effect on 
January 1, 2030. 
(4) APPLICABILITY.—The requirements of this 
subsection shall apply to contracts entered into on or 
after the date of the enactment of this Act. 
SEC. 835. REDUCTION OF FLUCTUATIONS OF SUPPLY AND 
DEMAND FOR CERTAIN COVERED ITEMS. 
(a) SUPPLY AND DEMAND REQUIREMENTS.—Not later 
than one year after the date of the enactment of this Act, 
the Secretary of Defense shall— 
(1) specify methods and processes to track and 
reduce fluctuations in supply chain forecasting and 
demand requirements of the Office of the Secretary of 
Defense, each military department, and the Defense 
Logistics Agency for covered items; and 
(2) implement policies to encourage predictable 
demand requirements for covered items for the Office 
of the Secretary of Defense, each military department, 
and the Defense Logistics Agency. 
(b) REPORT.—Not later than 15 months after the date 
of the enactment of this Act, and quarterly thereafter, each 
Secretary of a military department and the Director of the 
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Defense Logistics Agency shall submit to the Under Sec-
retary of Defense for Acquisition and Sustainment a report 
on the fluctuations in supply chain forecasting and demand 
requirements for each covered item, expressed as a percent-
age. 
(c) COVERED ITEM DEFINED.—In this section, the 
term ‘‘covered item’’ means a covered item described in sub-
paragraph (B), (C), or (E) of subsection (b)(1) or subsection 
(b)(2) of section 2533a of title 10, United States Code. 
SEC. 836. PROHIBITION ON CERTAIN PROCUREMENTS 
FROM THE XINJIANG UYGHUR AUTONOMOUS 
REGION. 
(a) PROHIBITION ON THE AVAILABILITY OF FUNDS 
FOR CERTAIN PROCUREMENTS FROM XUAR.—None of the 
funds authorized to be appropriated by this Act or otherwise 
made available for fiscal year 2022 for the Department of 
Defense may be obligated or expended to procure any prod-
ucts mined, produced, or manufactured wholly or in part 
by forced labor from XUAR or from an entity that has used 
labor from within or transferred from XUAR as part of 
a ‘‘poverty alleviation’’ or ‘‘pairing assistance’’ program. 
(b) RULEMAKING.—The Secretary of Defense shall 
issue rules not later than 90 days after the date of the enact-
ment of this Act to require a certification from offerors for 
contracts with the Department of Defense stating the offeror 
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has made a good faith effort to determine that forced labor 
from XUAR, as described in subsection (a), was not or will 
not be used in the performance of such contract. 
(c) DEFINITIONS.—In this section: 
(1) FORCED LABOR.—The term ‘‘forced labor’’ 
means all work or service which is exacted from any 
person under the menace of any penalty for its non-
performance and for which the worker does not offer 
himself voluntarily. 
(2) PERSON.—The term ‘‘person’’ means— 
(A) a natural person, corporation, com-
pany, business association, partnership, society, 
trust, or any other nongovernmental entity, or-
ganization, or group; or 
(B) any successor, subunit, parent entity, or 
subsidiary of, or any entity under common own-
ership or control with, any entity described in 
subparagraph (A). 
(3) XUAR.—The term ‘‘XUAR’’ means the 
Xinjiang Uyghur Autonomous Region of the People’s 
Republic of China. 
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Subtitle D—Industrial Base Matters 
SEC. 841. MODIFICATION OF PILOT PROGRAM FOR DEVEL-
OPMENT OF TECHNOLOGY-ENHANCED CAPA-
BILITIES 
WITH 
PARTNERSHIP 
INTER-
MEDIARIES. 
Section 851 of the National Defense Authorization Act 
for Fiscal Year 2020 (Public Law 116–92; 133 Stat. 1510; 
10 U.S.C. 2283 note) is amended to read as follows: 
‘‘SEC. 851. PILOT PROGRAM FOR DEVELOPMENT OF TECH-
NOLOGY-ENHANCED 
CAPABILITIES 
WITH 
PARTNERSHIP INTERMEDIARIES. 
‘‘(a) ESTABLISHMENT.—The Secretary of Defense may 
authorize the Commander of the United States Special Op-
erations Command to use funds described in subsection (b) 
for a pilot program under which the Commander shall 
make, through the use of a partnership intermediary, cov-
ered awards to small business concerns to develop tech-
nology-enhanced capabilities for special operations forces. 
‘‘(b) FUNDS.— 
‘‘(1) IN GENERAL.—The funds described in this 
subsection are funds transferred to the Commander of 
the United States Special Operations Command to 
carry out the pilot program established under this 
section from funds available to be expended by each 
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covered entity pursuant to section 9(f) of the Small 
Business Act. 
‘‘(2) LIMITATIONS.— 
‘‘(A) FISCAL YEAR.—A covered entity may 
not transfer to the Commander an amount great-
er than 10 percent of the funds available to be 
expended by such covered entity pursuant to sec-
tion 9(f) of the Small Business Act for a fiscal 
year. 
‘‘(B) AGGREGATE AMOUNT.—The aggregate 
amount of funds to be transferred to the Com-
mander may not exceed $20,000,000. 
‘‘(c) PARTNERSHIP INTERMEDIARIES.— 
‘‘(1) AUTHORIZATION.—The Commander may 
modify an existing agreement with a partnership 
intermediary to assist the Commander in carrying 
out the pilot program under this section, including 
with respect to the award of contracts and agreements 
to small business concerns. 
‘‘(2) LIMITATION.—None of the funds described 
in subsection (b) may be used to pay a partnership 
intermediary for any costs associated with the pilot 
program. 
‘‘(3) DATA.—With respect to a covered award 
made under this section, the Commander shall gather 
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data on the role of the partnership intermediary to 
include the— 
‘‘(A) staffing structure; 
‘‘(B) funding sources; and 
‘‘(C) methods for identifying and evaluating 
small business concerns eligible for a covered 
award. 
‘‘(d) REPORT.— 
‘‘(1) ANNUAL REPORT.—Not later than October 1 
of each year until October 1, 2026, the Commander 
of the United States Special Operations Command, in 
coordination with the Under Secretary of Defense for 
Research and Engineering, shall submit to the con-
gressional defense committees, the Committee on 
Small Business of the House of Representatives, and 
the Committee on Small Business and Entrepreneur-
ship of the Senate a report including— 
‘‘(A) a description of each agreement with a 
partnership intermediary entered into pursuant 
to this section; 
‘‘(B) for each covered award made under 
this section— 
‘‘(i) a description of the role served by 
the partnership intermediary; 
‘‘(ii) the amount of funds obligated; 
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‘‘(iii) an identification of the small 
business concern that received such covered 
award; 
‘‘(iv) a description of the use of such 
covered award; 
‘‘(v) a description of the role served by 
the program manager (as defined in section 
1737 of title 10, United States Code) of the 
covered entity with respect to the small 
business concern that received such covered 
award, including a description of inter-
actions and the process of the program 
manager in producing a past performance 
evaluation of such concern; and 
‘‘(vi) the benefits achieved as a result 
of the use of a partnership intermediary for 
the pilot program established under this sec-
tion as compared to previous efforts of the 
Commander to increase participation by 
small business concerns in the development 
of technology-enhanced capabilities for spe-
cial operations forces; and 
‘‘(C) a plan detailing how each covered en-
tity will apply lessons learned from the pilot 
program to improve processes for directly work-
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ing with and supporting small business concerns 
to develop technology-enhanced capabilities for 
special operations forces. 
‘‘(2) FINAL REPORT.—The final report required 
under this subsection shall include, along with the re-
quirements of paragraph (1), a recommendation re-
garding— 
‘‘(A) whether and for how long the pilot 
program established under this section should be 
extended; and 
‘‘(B) whether to increase funding for the 
pilot program, including a justification for such 
an increase. 
‘‘(e) TERMINATION.—The authority to carry out a 
pilot program under this section shall terminate on Sep-
tember 30, 2025. 
‘‘(f) DEFINITIONS.—In this section: 
‘‘(1) The term ‘covered award’ means an award 
made under the Small Business Innovation Research 
Program. 
‘‘(2) The term ‘covered entity’ means— 
‘‘(A) the Army; 
‘‘(B) the Navy; 
‘‘(C) the Air Force; 
‘‘(D) the Marine Corps; 
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(1) IN GENERAL.—The Secretary of Defense and 
the covered Secretaries concerned shall each establish 
and carry out a pilot program to more effectively 
transition projects that have completed a Phase II 
SBIR or STTR award and that present the potential 
to meet operational needs of elements of the Depart-
ment of Defense to Phase III by designating eligible 
programs as Entrepreneurial Innovation Projects. 
(2) DESIGNATION.—Not later than one year after 
the date of the enactment of this section, and annu-
ally thereafter, not less than five eligible programs 
shall be designated as Entrepreneurial Innovation 
Projects by— 
(A) each covered Secretary concerned, in 
consultation with each chief of a covered Armed 
Force under the jurisdiction of the Secretary con-
cerned; and 
(B) the Secretary of Defense for each cov-
ered element of the Department. 
(b) SELECTION REQUIREMENTS.— 
(1) FUTURE YEARS DEFENSE PROGRAM INCLU-
SION.—The Secretary of Defense shall include the esti-
mated expenditures of each designated program in the 
first future-years defense program submitted to Con-
gress under section 221 of title 10, United States 
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Code, after such designated program is designated 
under subsection (a)(2). 
(2) PPBE COMPONENT.—Each designated pro-
gram shall be considered by the designating Secretary 
as an integral part of the planning, programing, 
budgeting, and execution process of the Department of 
Defense. 
(3) PROGRAMMING PROPOSAL.—Each designated 
program shall be included by the designating Sec-
retary under a separate heading in any programming 
proposals submitted to the congressional defense com-
mittees. 
(4) DESIGNATION
CRITERIA.—In making des-
ignations required under subsection (a)(2), the cov-
ered Secretary concerned or the Secretary of Defense, 
as applicable, shall consider— 
(A) the potential of the eligible program 
to— 
(i) advance the national security capa-
bilities of the United States; 
(ii) provide new technologies or proc-
esses, or new applications of existing tech-
nologies, that will enable new alternatives to 
existing programs; 
(iii) provide future cost savings; and 
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(iv) significantly reduce the time to de-
liver capabilities to members of the covered 
Armed Forces; and 
(B) any other criteria that the covered Sec-
retary concerned or Secretary of Defense, as ap-
plicable, determines appropriate. 
(5) MITIGATE
CONFLICTS
OF
INTEREST.—The 
covered Secretary concerned or the Secretary of De-
fense, as applicable, shall establish procedures for the 
designation of Entrepreneurial Innovation Projects 
which will mitigate, to the greatest extent practicable, 
organizational conflicts of interests, including those 
from within Governmental organizations or programs 
that could view the designation and successful comple-
tion of an Entrepreneurial Innovation Project as a 
competing alternative to an existing or proposed pro-
gram or other activity. 
(6) APPLICATION.—The Secretary of Defense and 
each covered Secretary concerned shall establish an 
application process for eligible programs seeking des-
ignation as Entrepreneurial Innovation Projects. 
(c) REVOCATION OF DESIGNATION.—If the designating 
Secretary determines that a designated program no longer 
meets the criteria in subsection (b)(4) or that the technology 
has become irrelevant, the designating Secretary may revoke 
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the Entrepreneurial Innovation Project designation for such 
designated program. 
(d) REPORTS TO CONGRESS.— 
(1) ANNUAL REPORT.—The Secretary of Defense 
shall submit to congressional defense committees, the 
Committee on Small Business and Entrepreneurship 
of the Senate, and the Committee on Small Business 
of the House of Representatives, concurrently with the 
President’s annual budget request, an annual report 
that includes for each designated program— 
(A) a description of the designated program; 
(B) a summary of the potential of the des-
ignated program as considered under subsection 
(b)(4)(A); 
(C) the progress made towards inclusion in 
the future-years defense program; 
(D) the progress made towards delivering on 
the potential of the designated program; and 
(E) such other information that the Sec-
retary determines appropriate to inform the con-
gressional defense committees about the status of 
the pilot programs established under this section. 
(2) FINAL REPORT.—In the last report submitted 
under paragraph (1) prior to December 31, 2027, the 
Secretary of Defense shall include a recommendation 
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on whether to extend the pilot programs established 
under this section and the appropriate duration of 
such extension, if any. 
(e) EFFECTIVE DATE.—This section shall take effect on 
January 1, 2022. 
(f) TERMINATION DATE.—The pilot programs estab-
lished under this section shall terminate on December 31, 
2027. 
(g) DEFINITIONS.—In this section: 
(1) COVERED ARMED FORCES.—The term ‘‘cov-
ered Armed Forces’’ means— 
(A) the Army; 
(B) the Navy; 
(C) the Air Force; 
(D) the Marine Corps; and 
(E) the Space Force. 
(2) COVERED ELEMENT OF THE DEPARTMENT.— 
The term ‘‘covered element of the Department’’ means 
any element of the Department of Defense, other than 
an element referred to in paragraph (3), that is asso-
ciated with the Small Business Innovation Research 
or Small Business Technology Transfer programs. 
(3) COVERED
SECRETARY
CONCERNED.—The 
term ‘‘covered Secretary concerned’’ means— 
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(A) the Secretary of the Army, with respect 
to matters concerning the Department of the 
Army; 
(B) the Secretary of the Navy, with respect 
to matters concerning the Department of the 
Navy (other than matters concerning the Coast 
Guard); and 
(C) the Secretary of the Air Force, with re-
spect to matters concerning the Department of 
the Air Force. 
(4) ELIGIBLE
PROGRAM.—The term ‘‘eligible 
program’’ means a project that has completed a Phase 
II SBIR or STTR award. 
(5) DESIGNATED
PROGRAM.—The term ‘‘des-
ignated program’’ means an eligible program that has 
been designated as an Entrepreneurial Innovation 
Project under this section and for which such designa-
tion has not been revoked under subsection (c). 
(6) DESIGNATING SECRETARY.—The term ‘‘desig-
nating Secretary’’ means— 
(A) with respect to a designated program 
designated as an Entrepreneurial Innovation 
Project under this section by a covered Secretary 
concerned, such covered Secretary concerned; and 
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