328
stages due to loss of program corporate knowl-
edge of ongoing program activities.’’. 
(b) CIVILIAN AGENCY CONTRACTS.—Section 303I(b) 
of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 253i) is amended—
(1) by inserting ‘‘(1)’’ before ‘‘The period’’; 
(2) by inserting before the period the following: 
‘‘or a waiver is issued under paragraph (2)’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2) An executive agency may issue a waiver to ex-
tend a task order contract entered into under this section 
for a period not exceeding 10 years, through five one-year 
options, if the head of the agency determines in writing—
‘‘(A) that the contract provides engineering or 
technical services of such a unique and substantial 
technical nature that award of a new contract would 
be harmful to the continuity of the program for 
which the services are performed; 
‘‘(B) that award of a new contract would create 
a large disruption in services provided to the execu-
tive agency; and 
‘‘(C) the executive agency would endure pro-
gram risk during critical program stages due to loss
329
of program corporate knowledge of ongoing program 
activities.’’. 
(c) REPORT.—Not later than April 1, 2007, the Sec-
retary of Defense shall submit to the Committees on 
Armed Services of the Senate and the House of Represent-
atives a report on advisory and assistance services. The 
report shall include the following information: 
(1) The methods used by the Department of 
Defense to identify a contract as an advisory and as-
sistance services contract, as defined in section 
2304b of title 10, United States Code. 
(2) The number of such contracts awarded by 
the Department during the five-year period pre-
ceding the date of enactment of this Act. 
(3) The average annual expenditures by the De-
partment for such contracts. 
(4) The average length of such contracts. 
(5) The number of such contracts recompeted 
and awarded to the previous award winner. 
(6) The number of contractors performing such 
contracts that previously qualified as a small busi-
ness but no longer qualify as a small business for a 
recompetition. 
(7) The number of such contracts required for 
a period of greater than five years and a justifica-
330
tion of why those services are required for greater 
than five years, including the rationale for not per-
forming the services inside the Department of De-
fense. 
(8) The percentage of such contracts awarded 
by the Department during the five-year period pre-
ceding the date of the enactment of this Act for as-
sistance in the introduction and transfer of engineer-
ing and technical knowledge for fielded systems, 
equipment, and components. 
(9) The actions taken by the Department to 
prevent organizational conflicts of interest in the use 
of such contracts. 
(d) PROHIBITION ON USE OF AUTHORITY BY DE-
PARTMENT OF DEFENSE IF REPORT NOT SUBMITTED.—
The head of an agency may not issue a waiver under 
2304b(b)(2) of title 10, United States Code, as added by 
subsection (a), if the report required by subsection (c) is 
not submitted by the date set forth in that subsection. 
SEC. 825. ENHANCED ACCESS FOR SMALL BUSINESS. 
Section 9(a) of the Contract Disputes Act of 1978 
(41 U.S.C. 608) is amended by striking the period at the 
end of the first sentence and inserting the following: ‘‘or, 
in the case of a small business concern (as defined in the
331
Small Business Act and regulations under that Act), 
$150,000 or less.’’. 
SEC. 826. PROCUREMENT GOAL FOR HISPANIC-SERVING IN-
STITUTIONS. 
Section 2323 of title 10, United States Code, is 
amended—
(1) in subsection (a)(1)—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (B); 
(B) by striking the period at the end of 
subparagraph (C) and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(D) Hispanic-serving institutions, as des-
ignated by the Department of Education.’’; 
(2) in subsection (a)(2)—
(A) by inserting after ‘‘historically Black 
colleges and universities’’ the following: ‘‘, His-
panic-serving institutions,’’; and 
(B) by inserting after ‘‘such colleges and 
universities’’ the following: ‘‘and institutions’’; 
(3) in subsection (c)(1), by inserting after ‘‘his-
torically Black colleges and universities’’ the fol-
lowing: ‘‘, Hispanic-serving institutions,’’; and
332
(4) in subsection (c)(3), by inserting after ‘‘his-
torically Black colleges and universities’’ the fol-
lowing: ‘‘, to Hispanic-serving institutions,’’. 
SEC. 827. PROHIBITION ON DEFENSE CONTRACTORS RE-
QUIRING LICENSES OR FEES FOR USE OF 
MILITARY LIKENESSES AND DESIGNATIONS. 
The Secretary of Defense shall require that any con-
tract entered into or renewed by the Department of De-
fense include a provision prohibiting the contractor from 
requiring toy and hobby manufacturers, distributors, or 
merchants to obtain licenses from or pay fees to the con-
tractor for the use of military likenesses or designations 
on items provided under the contract. 
Subtitle D—United States Defense 
Industrial Base Provisions 
SEC. 831. PROTECTION OF STRATEGIC MATERIALS CRIT-
ICAL TO NATIONAL SECURITY. 
(a) REQUIREMENT
TO
BUY
FROM
AMERICAN 
SOURCES.—
(1) IN
GENERAL.—Chapter 148 of title 10, 
United States Code, is amended by inserting after 
section 2533a the following new section:
333
‘‘§ 2533b. Requirement to buy strategic materials crit-
ical to national security from American 
sources; exceptions 
‘‘(a) REQUIREMENT.—Except as provided in sub-
sections (c) through (h), funds appropriated or otherwise 
available to the Department of Defense may not be used 
for the procurement of an item described in subsection (b) 
if the item is not reprocessed, reused, or produced in the 
United States. 
‘‘(b) COVERED ITEMS.—An item referred to in sub-
section (a) is any of the following: 
‘‘(1) A specialty metal. 
‘‘(2) An item critical to national security, as de-
termined by the Strategic Materials Protection 
Board. 
‘‘(c) AVAILABILITY
EXCEPTION.—Subsection (a) 
does not apply to the extent that the Secretary of Defense 
or the Secretary of the military department concerned de-
termines that satisfactory quality and sufficient quantity 
of any item described in subsection (b) cannot be procured 
as and when needed. 
‘‘(d) EXCEPTION FOR CERTAIN PROCUREMENTS.—
Subsection (a) does not apply to the following: 
‘‘(1) Procurements outside the United States in 
support of combat operations or in support of con-
tingency operations.
334
‘‘(2) Procurements by vessels in foreign waters 
for use of the item. 
‘‘(3) Procurements for which the use of proce-
dures other than competitive procedures has been 
approved on the basis of section 2304(c)(2) of this 
title, relating to unusual and compelling urgency of 
need. 
‘‘(e) EXCEPTION RELATING TO AGREEMENTS WITH 
FOREIGN GOVERNMENTS.—Subsection (a) does not pre-
clude the procurement of an item described in subsection 
(b) if—
‘‘(1) the procurement is necessary—
‘‘(A) to comply with agreements with for-
eign governments requiring the United States 
to purchase supplies from foreign sources for 
the purposes of offsetting sales made by the 
United States Government or United States 
firms under approved programs serving defense 
requirements; or 
‘‘(B) in furtherance of agreements with 
foreign governments in which both such govern-
ments agree to remove barriers to purchases of 
supplies produced in the other country or serv-
ices performed by sources of the other country;
335
‘‘(2) any such agreement with a foreign govern-
ment complies, where applicable, with the require-
ments of section 36 of the Arms Export Control Act 
(22 U.S.C. 2776) and with section 2457 of this title; 
and 
‘‘(3) the item is grown, produced, or manufac-
tured in the United States or in the country from 
which it is procured. 
‘‘(f) EXCEPTION FOR COMMISSARIES, EXCHANGES, 
AND OTHER NONAPPROPRIATED FUND INSTRUMENTAL-
ITIES.—Subsection (a) does not apply to items purchased 
for resale purposes in commissaries, exchanges, and non-
appropriated fund instrumentalities operated by the De-
partment of Defense. 
‘‘(g) EXCEPTION
FOR SMALL PURCHASES.—Sub-
section (a) does not apply to procurements in amounts not 
greater than the simplified acquisition threshold referred 
to in section 2304(g) of this title. 
‘‘(h) APPLICABILITY TO PROCUREMENTS OF COM-
MERCIAL ITEMS.—This section applies to procurements of 
commercial items notwithstanding section 34 of the Office 
of Federal Procurement Policy Act (41 U.S.C. 430). 
‘‘(i) APPLICABILITY TO SUBCONTRACTS.—This sec-
tion applies to subcontracts at any tier under a prime con-
tract.
336
‘‘(j) APPLICABILITY
TO
NONCOMPLIANT
COMPO-
NENTS.—A procurement subject to subsection (a) shall 
not be considered to be in compliance with subsection (a) 
if noncompliant components are delivered under the pro-
curement without charge to the Federal Government. In 
this subsection, the term ‘noncompliant component’ means 
a component that is not reprocessed, reused, or produced 
in the United States. 
‘‘(k) SPECIALTY METAL DEFINED.—In this section, 
the term ‘specialty metal’ means any of the following: 
‘‘(1) Steel—
‘‘(A) with a maximum alloy content ex-
ceeding one or more of the following limits: 
manganese, 1.65 percent; silicon, 0.60 percent; 
or copper, 0.60 percent; or 
‘‘(B) containing more than 0.25 percent of 
any of the following elements: aluminum, chro-
mium, cobalt, columbium, molybdenum, nickel, 
titanium, tungsten, or vanadium. 
‘‘(2) Metal alloys consisting of nickel, iron-nick-
el, and cobalt base alloys containing a total of other 
alloying metals (except iron) in excess of 10 percent. 
‘‘(3) Titanium and titanium alloys. 
‘‘(4) Zirconium and zirconium base alloys.
337
‘‘(5) A metal determined by the Strategic Mate-
rials Protection Board (established under section 
187 of this title) to be a specialty metal critical to 
national security. 
‘‘(l) ADDITIONAL DEFINITIONS.—In this section: 
‘‘(1) The term ‘United States’ includes posses-
sions of the United States. 
‘‘(2) The term ‘micropurchase’ means a pro-
curement in an amount not greater than the micro-
purchase threshold, as defined by section 32(f) of 
the Office of Federal Procurement Policy Act (41 
U.S.C. 428). 
‘‘(3) The term ‘component’ has the meaning 
provided in section 4 of such Act (41 U.S.C. 403).’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by adding at the end the following new item:
‘‘2533b. Requirement to buy strategic materials critical to national security from 
American sources; exceptions.’’.
(3) 
CONFORMING
AMENDMENTS.—Section 
2533a of title 10, United States Code, is amended—
(A) by striking paragraph (2) of subsection 
(b); 
(B) in subsection (c), by striking ‘‘or spe-
cialty metals (including stainless steel flat-
ware)’’; and
338
(C) in subsection (e)—
(i) by striking ‘‘SPECIALTY METALS 
AND’’ in the heading; and 
(ii) by striking ‘‘specialty metals or’’. 
(4) EFFECTIVE DATES.—
(A) Section 2533b of title 10, United 
States Code, as added by paragraph (1), shall 
apply with respect to contracts entered into 
after the date occurring 30 days after the date 
of the enactment of this Act. 
(B) The amendments made by paragraph 
(3) shall take effect on the date occurring 30 
days after the date of the enactment of this 
Act. 
(b) 
ONE-TIME
INADVERTENT
MICROPURCHASE 
WAIVER OF SPECIALTY METALS DOMESTIC SOURCE RE-
QUIREMENT.—
(1) NOTICE OF NONCOMPLIANCE.—In the case 
of a contract with the Department of Defense in ef-
fect before the date of the enactment of this Act 
with respect to which the contracting officer for the 
contract determines the contractor is not in compli-
ance with section 2533a of title 10, United States 
Code (as in effect before such date of enactment)
339
with respect to specialty metals, the contracting offi-
cer shall—
(A) post a notice on FedBizOpps.gov that 
the contractor is not in compliance with such 
section; 
(B) notify the contractor (and any subcon-
tractor under the prime contract that is also 
noncompliant) in writing that the contractor (or 
subcontractor) is not in compliance with such 
section; and 
(C) require the contractor and any subcon-
tractor notified under subparagraph (B) to sub-
mit to the contracting officer a compliance plan 
for becoming compliant with such section. 
(2) WAIVER AUTHORITY.—In the case of a con-
tract described in paragraph (1), the contracting of-
ficer for the contract may waive the applicability to 
the contract of section 2533a of title 10, United 
States Code (as in effect before such date of enact-
ment) with respect to specialty metals if—
(A) the procurement is a micropurchase of 
components (whether in a prime contract or a 
subcontract under such contract) and the ag-
gregate value of all such procurements in the 
prime contract and all the subcontracts under