‘‘(B) owes the Federal Government for any 
payment of any delinquent tax. 
‘‘(2) FAILURE OF CERTIFICATION.—Nothing in 
this section shall prevent the Department from 
awarding a contract to an offeror based solely on the 
offeror’s certification.’’. 
(b) CLERICAL AMENDMENT.—The table of contents in 
section 1(b) of such Act is further amended by adding at 
the end of the items relating to such subtitle the following: 
‘‘Sec. 838. Integrity in contracting.’’. 
SEC. 406. SMALL BUSINESS UTILIZATION REPORT. 
(a) REPORT.—Not later than 360 days after the date 
of the enactment of this Act, the Chief Procurement Officer 
of the Department of Homeland Security shall submit to 
the Secretary of Homeland Security, the Committee on 
Homeland Security of the House of Representatives, and 
the Committee on Homeland Security and Governmental 
Affairs of the Senate a report that— 
(1) identifies each component of the Department 
for which the aggregate value of contracts awarded in 
fiscal year 2006 by the component to qualified 
HUBZone small business concerns and small business 
concerns owned and controlled by service-disabled vet-
erans was less than 3 percent of the total value of all 
contracts awarded under the component for that fiscal 
year; and 
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(2) identifies each component of the Department 
for which the aggregate value of contracts awarded in 
fiscal year 2006 by the component to socially or eco-
nomically disadvantaged small business concerns, in-
cluding 8(a) small business concerns, and small busi-
ness concerns owned and controlled by women was 
less than 5 percent of the total value of all contracts 
awarded by the component for that fiscal year. 
(b) ACTION PLAN.— 
(1) ACTION PLAN REQUIRED.—Not later than 90 
days after the date of the submission of the report re-
quired under subsection (a), the Chief Procurement 
Officer, in consultation with Office of Small and Dis-
advantaged Businesses Utilization of the Department, 
shall for each component identified under subsection 
(a)(1) and (a)(2), develop, submit to the Committees 
referred to in subsection (a), and begin implementing 
an action plan for achieving the objective described in 
subsection (b)(2). An action plan is not required if 
the component meets or exceeds the objective described 
in subsection (b)(2). 
(2) IDENTIFICATION OF BARRIERS.—Each action 
plan shall identify and describe any barriers to 
achieving the objectives of awarding by the compo-
nent, for a fiscal year, contracts having an aggregate 
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value of at least 3 percent of the total value of all con-
tracts awarded by the component for the fiscal year 
to small business concerns identified under subsection 
(a)(1) and 5 percent of the total value of all contracts 
awarded by the component for the fiscal year to small 
business concerns identified under subsection (a)(2). 
(3) 
PERFORMANCE
MEASURES
AND
TIME-
TABLE.—Each action plan submitted under para-
graph (1) shall include performance measures and a 
timetable for compliance and achievement of the objec-
tives described in paragraph (2). 
(c) PRIORITY CONSIDERATION.— 
(1) IN GENERAL.—The Chief Procurement Offi-
cer may give priority consideration to small business 
concerns for all open market procurements exceeding 
the simplified acquisition threshold prior to initiating 
full and open, or unrestricted, competition. 
(2) ORDER OF PRIORITY.—In proceeding with 
priority consideration under paragraph (1), the Chief 
Procurement Officer shall consider contracting pro-
posals in the following order: 
(A) Proposals submitted by 8(a) small busi-
ness concerns or HUBZone small business con-
cerns; service-disabled veteran owned small busi-
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ness concerns; or women owned small business 
concerns. 
(B) Proposals submitted by other small 
business concerns. 
(C) Proposals submitted under full and 
open competition. 
(3) For purposes of carrying out paragraph (2) 
with respect to proposals submitted by small business 
concerns described in the same subparagraph of para-
graph (2), the Chief Procurement Officer shall select 
the appropriate category of concern based on market 
research, historical data, and progress toward achiev-
ing the objective described in subsection (b)(2). 
(d) DEFINITIONS.—For purposes of this section, the 
terms ‘‘small business concern’’, ‘‘socially or economically 
disadvantaged small business concern’’, ‘‘women owned 
small business concern’’, ‘‘small business concern owned and 
controlled by service-disabled veterans’’, ‘‘8(a) small busi-
ness concerns’’, and ‘‘qualified HUBZone small business 
concern’’ have the meanings given such terms under the 
Small Business Act (15 U.S.C. 631 et seq.). 
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SEC. 407. REQUIREMENT THAT UNIFORMS, PROTECTIVE 
GEAR, BADGES, AND IDENTIFICATION CARDS 
OF HOMELAND SECURITY PERSONNEL BE 
MANUFACTURED IN THE UNITED STATES. 
(a) IN GENERAL.—Subtitle D of title VIII of the 
Homeland Security Act of 2002 (6 U.S.C. 391 et seq.) is 
further amended by adding at the end the following new 
section: 
‘‘SEC. 839. REQUIREMENT THAT CERTAIN ARTICLES PRO-
CURED FOR DEPARTMENT PERSONNEL BE 
MANUFACTURED IN THE UNITED STATES. 
‘‘(a) REQUIREMENT.—Except as provided in section 
(c), funds appropriated or otherwise available to the De-
partment may not be used for the procurement of an article 
described in section (b) if the item is not manufactured in 
the United States. 
‘‘(b) COVERED ARTICLES.—An article referred to in 
subsection (a) is any of the following articles procured for 
personnel of the Department: 
‘‘(1) Uniforms. 
‘‘(2) Protective gear. 
‘‘(3) Badges or other insignia indicating the 
rank, office, or position of personnel. 
‘‘(4) Identification cards. 
‘‘(c) AVAILABILITY EXCEPTION.—Subsection (a) does 
not apply to the extent that the Secretary determines that 
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satisfactory quality and sufficient quantity of the article 
cannot be procured as and when needed at United States 
market prices. If such a determination is made with respect 
to an article, the Secretary shall— 
‘‘(1) notify the Committee on Homeland Security 
of the House of Representatives and the Committee on 
Homeland Security and Governmental Affairs of the 
Senate within 7 days after making the determination; 
and 
‘‘(2) include in that notification a certification 
that manufacturing the article outside the United 
States does not pose a risk to the national security of 
the United States, as well as a detailed explanation 
of the steps any facility outside the United States that 
is manufacturing the article will be required to take 
to ensure that the materials, patterns, logos, designs, 
or any other element used in or for the article are not 
misappropriated. 
‘‘(d) OTHER EXCEPTIONS.—Subsection (a) does not 
apply— 
‘‘(1) to acquisitions at or below the micro-pur-
chase threshold (as defined in section 32 of the Office 
of Federal Procurement Policy Act (41 U.S.C. 428)); 
and 
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‘‘(2) to acquisitions outside the United States for 
use outside of the United States. 
‘‘(e) USE OF DOMESTIC TEXTILES.—For fiscal year 
2008 and each subsequent fiscal year, the Secretary shall 
take all available steps to ensure that, to the maximum ex-
tent practicable, the items described in subsection (b) pro-
cured by the Department are manufactured using domestic 
textiles. 
‘‘(f) RELATIONSHIP
TO
WAIVER
UNDER
TRADE 
AGREEMENTS ACT OF 1979.—Subsection (a) shall apply 
notwithstanding any waiver under section 301 of the Trade 
Agreements Act of 1979 (19 U.S.C. 2511).’’. 
(b) CONFORMING AMENDMENT.—The table of contents 
in section 1(b) of the Homeland Security Act of 2002 is 
amended by adding at the end of the items relating to such 
subtitle the following new item: 
‘‘Sec. 839. Requirement that certain articles procured for Department personnel 
be manufactured in the United States.’’. 
(c) APPLICABILITY.—The amendments made by this 
section take effect 120 days after the date of the enactment 
of this Act and apply to any contract entered into on or 
after that date for the procurement of items to which such 
amendments apply. 
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