A bill to amend the Buy American Act to increase the requirement for American-made content, to tighten the waiver provisions, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Buy American Improvement Act of 
2003''.

SEC. 2. REQUIREMENTS FOR WAIVERS.

    (a) In General.--Section 2 of the Buy American Act (41 U.S.C. 10a) 
is amended--
            (1) by striking ``Notwithstanding'' and inserting the 
        following:
     ``(a) In General.--Notwithstanding''; and
            (2) by adding at the end the following:
    ``(b) Special Rules.--The following rules shall apply in carrying 
out the provisions of subsection (a):
            ``(1) Public interest waiver.--A determination that it is 
        not in the public interest to enter into a contract in 
        accordance with this Act may not be made after a notice of 
        solicitation of offers for the contract is published in 
        accordance with section 18 of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 416) and section 8(e) of the Small 
        Business Act (15 U.S.C. 637(e)).
            ``(2) Domestic bidder.--A Federal agency entering into a 
        contract shall give preference to a company submitting an offer 
        on the contract that manufactures in the United States the 
        article, material, or supply for which the offer is solicited, 
        if--
                    ``(A) that company's offer is substantially the 
                same as an offer made by a company that does not 
                manufacture the article, material, or supply in the 
                United States; or
                    ``(B) that company is the only company that 
                manufactures in the United States the article, 
                material, or supply for which the offer is solicited.
            ``(3) Use outside the united states.--
                    ``(A) In general.--Subsection (a) shall apply 
                without regard to whether the articles, materials, or 
                supplies to be acquired are for use outside the United 
                States if the articles, materials, or supplies are not 
                needed on an urgent basis or if they are acquired on a 
                regular basis.
                    ``(B) Cost analysis.--In any case where the 
                articles, materials, or supplies are to be acquired for 
                use outside the United States and are not needed on an 
                urgent basis, before entering into a contract an 
                analysis shall be made of the difference in the cost 
                for acquiring the articles, materials, or supplies from 
                a company manufacturing the articles, materials, or 
                supplies in the United States (including the cost of 
                shipping) and the cost for acquiring the articles, 
                materials, or supplies from a company manufacturing the 
                articles, materials, or supplies outside the United 
                States (including the cost of shipping).
            ``(4) Domestic availability.--The head of a Federal agency 
        may not make a determination under subsection (a) that an 
        article, material, or supply is not mined, produced, or 
        manufactured, as the case may be, in the United States in 
        sufficient and reasonably available commercial quantities and 
        of satisfactory quality, unless the head of the agency has 
        conducted a study and, on the basis of such study, determined 
        that--
                    ``(A) domestic production cannot be initiated to 
                meet the procurement needs; and
                    ``(B) a comparable article, material, or supply is 
                not available from a company in the United States.
    ``(c) Reports.--
            ``(1) In general.--Not later than 60 days after the end of 
        each fiscal year, the head of each Federal agency shall submit 
        to Congress a report on the amount of the acquisitions made by 
        the agency from entities that manufacture the articles, 
        materials, or supplies outside the United States in that fiscal 
        year.
            ``(2) Content of report.--The report required by paragraph 
        (1) shall separately indicate the following information:
                    ``(A) The dollar value of any articles, materials, 
                or supplies for which this Act was waived.
                    ``(B) An itemized list of all waivers granted with 
                respect to such articles, materials, or supplies under 
                this Act.
                    ``(C) A list of all articles, materials, and 
                supplies acquired, their source, and the amount of the 
                acquisitions.
            ``(3) Public availability.--The head of each Federal agency 
        submitting a report under paragraph (1) shall make the report 
        publicly available by posting on an Internet website.''.
    (b) Definitions.--Section 1 of the Buy American Act (41 U.S.C. 10c) 
is amended--
            (1) by striking subsection (c) and inserting the following:
    ``(c) Federal Agency.--The term `Federal agency' means any 
executive agency (as defined in section 4(1) of the Federal Procurement 
Policy Act (41 U.S.C. 403(1))) or any establishment in the legislative 
or judicial branch of the Government (except the Senate, the House of 
Representatives, and the Architect of the Capitol and activities under 
the Architect's direction).''; and
            (2) by adding at the end the following:
    ``(d) Substantially All.--Articles, materials, or supplies shall be 
treated as made substantially all from articles, materials, or supplies 
mined, produced, or manufactured, as the case may be, in the United 
States, if the cost of the domestic components of such articles, 
materials, or supplies exceeds 75 percent.''.
    (c) Conforming Amendments.--
            (1) Section 2 of the Buy American Act (41 U.S.C. 10a) is 
        amended by striking ``department or independent establishment'' 
        and inserting ``Federal agency''.
            (2) Section 3 of such Act (41 U.S.C. 10b) is amended--
                  (A) by striking ``department or independent 
                establishment'' in subsection (a), and inserting 
                ``Federal agency''; and
                  (B) by striking ``department, bureau, agency, or 
                independent establishment'' in subsection (b) and 
                inserting ``Federal agency''.
            (3) Section 633 of the National Military Establishment 
        Appropriations Act, 1950 (41 U.S.C. 10d) is amended by striking 
        ``department or independent establishment'' and inserting 
        ``Federal agency''.

SEC. 3. GAO REPORT AND RECOMMENDATIONS.

    (a) Scope of Waivers.--Not later than 6 months after the date of 
enactment of this Act, the Comptroller General of the United States 
shall report to Congress recommendations for determining, for purposes 
of applying the waiver provision of section 2(a) of the Buy American 
Act--
            (1) unreasonable cost; and
            (2) inconsistent with the public interest.
The report shall include recommendations for a statutory definition of 
unreasonable cost and standards for determining inconsistency with the 
public interest.
    (b) Waiver Procedures.--The report described in subsection (a) 
shall also include recommendations for establishing procedures for 
applying the waiver provisions of the Buy American Act that can be 
consistently applied.

SEC. 4. DUAL-USE TECHNOLOGIES.

    The head of a Federal agency (as defined in section 1(c) of the Buy 
American Act (as amended by section 2) may not enter into a contract, 
nor permit a subcontract under a contract of the Federal agency, with a 
foreign entity that involves giving the foreign entity plans, manuals, 
or other information that would facilitate the manufacture of a dual-
use item on the Commerce Control List unless approval for providing 
such plans, manuals, or information has been obtained in accordance 
with the provisions of the Export Administration Act of 1979 (50 U.S.C. 
App. 2401 et seq.) and the Export Administration Regulations (15 C.F.R. 
part 730 et seq.).

Summary: Buy American Improvement Act of 2003 - Amends the Buy American Act to: (1) prohibit Federal agencies from making a determination that it would not be in the public interest to enter into a contract subject to Buy American requirements after a procurement notice for such contract is published; and (2) provide that Buy American requirements shall apply without regard to whether products are acquired for use outside the United States if they are not needed on an urgent basis or if they are acquired on a regular basis (but requires an analysis of the difference in costs of such products from manufacturers inside and outside the United States before a contract is entered).

Requires Federal agencies to: (1) give preference in the procurement process to a company that manufactures the solicited product in the United States if such company's bid is substantially the same as a bid made by a non-U.S. manufacturer or such company is the only company that manufactures the product in the United States; and (2) report annually on agency acquisitions from entities that manufacture products outside the United States.

 Prohibits an agency head from making any determination that articles to be procured are not available from domestic sources without conducting a study that determine that domestic production cannot be initiated to meet procurement needs and that a comparable product is not available from a company in the United States.

Defines a product as made "substantially all" from domestic components when the cost of such components exceeds 75 percent.

Requires the Comptroller General to report to Congress with recommendations for defining "unreasonable cost" and "inconsistent with the public interest" for purposes of applying waivers of Buy American requirements.

Prohibits an agency from entering a contract with a foreign entity that involves giving such entity information that would facilitate the manufacture of a dual-use item on the Commerce Control List unless approval has been obtained in accordance with the Export Administration Act of 1979.