Diversity and Inclusion Transparency in the Defense Industrial Base Act
Bill: H.R.7444 | Sponsor: Rep. Brown, Anthony G. (D-MD)
Policy area: Armed Forces and National Security

Summary:
Diversity and Inclusion Transparency in the Defense Industrial Base Act
This bill provides that the Department of Defense (DOD) must require each contractor who is awarded a major contract to submit a report on diversity and inclusion by the last day of each full fiscal year during the period of the contract. In relation to a major defense acquisition program, a major contract means each of the six largest prime, associate, or government-furnished equipment contracts that is in excess of $40 million and that is not a firm, fixed-price contract.
DOD must annually submit to Congress a report summarizing the diversity and inclusion reports. Such reports must be made publicly available on a DOD website.

To amend title 10, United States Code, to provide for diversity and 
  inclusion reporting requirements for certain Department of Defense 
                  contractors, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Diversity and Inclusion Transparency 
in the Defense Industrial Base Act''.

SEC. 2. DIVERSITY AND INCLUSION REPORTING REQUIREMENTS FOR COVERED 
              CONTRACTORS.

    (a) In General.--Subchapter V of chapter 325 of title 10, United 
States Code, is amended by inserting after section 4892 the following 
new section:
``Sec. 4893. Diversity and inclusion reporting requirements for covered 
              contractors
    ``(a) Covered Contractor Reports.--
            ``(1) In general.--The Secretary of Defense shall require 
        each covered contractor awarded a major contract to submit to 
        the Secretary of Defense by the last day of each full fiscal 
        year that occurs during the period of performance of any major 
        contract a report on diversity and inclusion.
            ``(2) Elements.--Each report under paragraph (1) shall 
        include, for the fiscal year covered by the report--
                    ``(A) a description of each major contract with a 
                period of performance during the fiscal year covered by 
                the report, including the period of performance, 
                expected total value, and value to date of each major 
                contract;
                    ``(B) the total value of payments received under 
                all major contracts of each covered contractor during 
                such fiscal year;
                    ``(C) the total number of participants in the board 
                of directors of each covered contractor, nominees for 
                the board of directors of the covered contractor, and 
                the senior leaders of the covered contractor, 
                disaggregated by demographic classifications;
                    ``(D) with respect to employees of each covered 
                contractor--
                            ``(i) the total number of such employees; 
                        and
                            ``(ii) the number of such employees 
                        (expressed as a numeral and as a percentage of 
                        the total number), identified by membership in 
                        demographic classification and major 
                        occupational group;
                    ``(E) the value of first-tier subcontracts under 
                each major contract entered into during such fiscal 
                year;
                    ``(F) with respect to employees of each covered 
                subcontractor--
                            ``(i) the total number of such employees;
                            ``(ii) the number of such employees 
                        (expressed as a numeral and as a percentage of 
                        the total number), identified by membership in 
                        demographic classification and major 
                        occupational group;
                    ``(G) whether the board of directors of the covered 
                contractor has, as of the date on which the covered 
                contractor submits a report under this section, adopted 
                any policy, plan, or strategy to promote racial, 
                ethnic, and gender diversity among the members of the 
                board of directors of the covered contractor, nominees 
                for the board of directors of the covered contractor, 
                or the senior leaders of the covered contractor; and
                    ``(H) a description of participation by the 
                contractor in diversity programs, to include hours 
                spent, funds expended in support of, and the number of 
                unique relationships established by each such diversity 
                program.
    ``(b) Annual Summary Report.--
            ``(1) Report required.--Not later than 60 days after the 
        first day of each fiscal year, the Secretary shall submit to 
        the congressional defense committees a report summarizing the 
        reports submitted pursuant to subsection (a).
            ``(2) Elements.--Each report under paragraph (1) shall 
        include--
                    ``(A) an index of the reports submitted pursuant to 
                subsection (a);
                    ``(B) a compilation of the data described in such 
                subsection, disaggregated as described in such 
                subsection;
                    ``(C) an aggregation of the data provided in such 
                reports; and
                    ``(D) a narrative that analyzes the information 
                disclosed in such reports and identifies any year-to-
                year trends in such information.
    ``(c) Public Availability.--Each report required under this 
subsection shall be posted on a single publicly available website of 
the Department of Defense and made available in a machine-readable 
format that is downloadable, searchable, and sortable.
    ``(d) Definitions.--In this section:
            ``(1) Covered contractor.--The term `covered contractor' 
        means a contractor awarded a major contract.
            ``(2) Covered subcontractor.--The term `covered 
        subcontractor' means a subcontractor performing a subcontract 
        that is one of the 10 highest aggregate value subcontracts 
        under a major contract.
            ``(3) Demographic classifications.--The term `demographic 
        classifications' means classifications by race, gender, veteran 
        status, or ethnicity.
            ``(4) Diversity program.--The term `diversity program' 
        means--
                    ``(A) a program conducted under section 3904 of 
                this title;
                    ``(B) a mentor-protege relationship established 
                under section 831 of the National Defense Authorization 
                Act for Fiscal Year 1991;
                    ``(C) a program conducted under section 2192a of 
                this title; or
                    ``(D) any other program designated by the Secretary 
                of Defense as designed to increase the diversity of the 
                workforce of the defense industrial base.
            ``(5) Major contract.--The term `major contract' has the 
        meaning given the term in section 4351 of this title.
            ``(6) Major occupational group.--The term `major 
        occupational group' means a major occupational group as defined 
        by the Bureau of Labor Statistics.
            ``(7) Senior leader.--The term `senior leader' means--
                    ``(A) the president of a covered contractor;
                    ``(B) any vice president in charge of a principal 
                business unit, division, or function of a covered 
                contractor;
                    ``(C) any other officer of a covered contractor who 
                performs a policy-making function; or
                    ``(D) an individual responsible for the direct or 
                indirect management of more than 200 individuals.''.
    (b) Clerical Amendment.--The table of sections for subchapter V of 
chapter 325 of title 10, United States Code, is amended by adding after 
the item related to section 4892 the following:

``4893. Diversity and inclusion reporting requirements for covered 
                            contractors.''.
    (c) Effective Date and Applicability.--The amendments made by this 
section shall take effect on July 1, 2022, and shall apply with respect 
to contracts entered into on or after July 1, 2022.
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