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‘‘§ 2539c. Domestic source or content requirements:
one-year waiver for certain countries with
reciprocal defense procurement agree-
ments with the United States
‘‘(a) WAIVER AUTHORITY.—Subject to subsection (g),
upon making a determination under subsection (b) that a
foreign country described by that subsection has not quali-
tatively or quantitatively increased exports of defense items,
as determined by the Secretary of Defense for purposes of
this section, to the People’s Republic of China during the
fiscal year in which such determination is made, the Sec-
retary of Defense may waive the application of any domes-
tic source requirement or domestic content requirement re-
ferred to in subsection (c) and thereby authorize the pro-
curement of items that are grown, reprocessed, reused, pro-
duced, or manufactured in such foreign country during the
fiscal year following the fiscal year in which such deter-
mination is made.
‘‘(b) ANNUAL DETERMINATIONS.—Not later than Sep-
tember 30 each fiscal year, the Secretary of Defense may
determine whether or not a foreign country with which the
United States had in force during such fiscal year a recip-
rocal defense procurement memorandum of understanding
or agreement qualitatively or quantitatively increased ex-
ports of defense items to the People’s Republic of China dur-
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ing such fiscal year. Each such determination shall be in
writing.
‘‘(c) COVERED REQUIREMENTS.—For purposes of this
section:
‘‘(1) A domestic source requirement is any re-
quirement under law that the Department of Defense
satisfy its requirements for an item by procuring an
item that is grown, reprocessed, reused, produced, or
manufactured in the United States or by a manufac-
turer that is a part of the national technology and in-
dustrial base (as defined in section 2500(1) of this
title).
‘‘(2) A domestic content requirement is any re-
quirement under law that the Department of Defense
satisfy its requirements for an item by procuring an
item produced or manufactured partly or wholly from
components and materials grown, reprocessed, reused,
produced, or manufactured in the United States.
‘‘(d) EFFECTIVE PERIOD OF WAIVER.—Any waiver of
the application of any domestic source requirement or do-
mestic content with respect to a foreign country under sub-
section (a) shall be effective only for the fiscal year following
the fiscal year in which is made the determination on which
such waiver is based.
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‘‘(e) LIMITATION ON DELEGATION.—The authority of
the Secretary of Defense to waive the application of domes-
tic source or content requirements under subsection (a) may
not be delegated to any officer or employee other than the
Deputy Secretary of Defense or the Under Secretary of De-
fense for Acquisition, Technology, and Logistics.
‘‘(f) CONSULTATIONS.—The Secretary of Defense may
grant a waiver of the application of a domestic source or
content requirement under subsection (a) only after con-
sultation with the United States Trade Representative, the
Secretary of Commerce, and the Secretary of State.
‘‘(g) LAWS NOT WAIVABLE.—The Secretary of Defense
may not exercise the authority under subsection (a) to
waive any domestic source or content requirement con-
tained in any of the following laws:
‘‘(1) The Small Business Act (15 U.S.C. 631 et
seq.).
‘‘(2) The Javits-Wagner-O’Day Act (41 U.S.C.
46 et seq.).
‘‘(3) Section 2533a of this title.
‘‘(4) Sections 7309 and 7310 of this title.
‘‘(h) RELATIONSHIP
TO OTHER WAIVER AUTHOR-
ITY.—The authority under subsection (a) to waive a domes-
tic source requirement or domestic content requirement is
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in addition to any other authority to waive such require-
ment.
‘‘(i) CLARIFICATION
OF RELATIONSHIP WITH BUY
AMERICAN ACT.—Nothing in this section shall be construed
to alter in any way the applicability of the Buy American
Act (41 U.S.C. 10a), or the authority of the Secretary of
Defense to waive the requirements of such Act, with respect
to the procurement of any item to which such Act would
apply without regard to this section.
‘‘(j) CONSTRUCTION WITH RESPECT TO LATER EN-
ACTED LAWS.—This section may not be construed as being
inapplicable to a domestic source requirement or domestic
content requirement that is set forth in a law enacted after
the enactment of this section solely on the basis of the later
enactment of such law.’’.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of subchapter V of such chapter is amended
by adding at the end the following new item:
‘‘2539c. Domestic source or content requirements: one-year waiver for certain
countries with reciprocal defense procurement agreements with
the United States.’’.
SEC. 813. CONSISTENCY WITH UNITED STATES OBLIGA-
TIONS UNDER TRADE AGREEMENTS.
No provision of this Act or any amendment made by
this Act shall apply to a procurement by or for the Depart-
ment of Defense to the extent that the Secretary of Defense,
in consultation with the Secretary of Commerce, the United
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States Trade Representative, and the Secretary of State, de-
termines that it is inconsistent with United States obliga-
tions under a trade agreement.
SEC. 814. RESEARCH AND DEVELOPMENT EFFORTS FOR
PURPOSES OF SMALL BUSINESS RESEARCH.
(a) IN GENERAL.—Section 9 of the Small Business Act
(15 U.S.C. 638) is amended by adding at the end the fol-
lowing:
‘‘(x) RESEARCH AND DEVELOPMENT FOCUS.—
‘‘(1) REVISION AND UPDATE OF CRITERIA AND
PROCEDURES OF IDENTIFICATION.—In carrying out
subsection (g), the Secretary of Defense shall, not less
often than once every 4 years, revise and update the
criteria and procedures utilized to identify areas of
the research and development efforts of the Depart-
ment of Defense which are suitable for the provision
of funds under the Small Business Innovation Re-
search Program and the Small Business Technology
Transfer Program.
‘‘(2) UTILIZATION OF PLANS.—The criteria and
procedures described in paragraph (1) shall be devel-
oped through the use of the most current versions of
the following plans:
‘‘(A) The joint warfighting science and tech-
nology plan required under section 270 of the