II 118th CONGRESS 2d Session S. 4566 IN THE SENATE OF THE UNITED STATES June 18, 2024 Mr. Grassley (for himself and Ms. Warren ) introduced the following bill; which was read twice and referred to the Committee on Armed Services A BILL To require the Secretary of the Navy, the Secretary of the Air Force, and the Secretary of the Army to carry out a pilot program on producing parts through reverse engineering, and for other purposes.

1. Findings Congress makes the following findings: (1) Reverse Engineering should be used by the Department of Defense, the Defense Logistics Agency, the Department of the Navy, the Department of the Army, and the Department of the Air Force to ensure that the Department of Defense receives the best price for spare parts and increases competition in the marketplace. (2) The findings of the July 2019 report by the Comptroller General of the United States that was submitted to the Committee on Armed Services of the Senate, entitled Defense Logistics Agency Small Businesses Participate in Reverse Engineering of Spare Parts , demonstrates that reverse engineering results in lowered prices and cost savings of spare parts and increased competition in the spare parts marketplace. The same report found small businesses did not identify concerns with how the Defense Logistics Agency handles intellectual property and that the Defense Logistics Agency had not received any complaints about their intellectual property being used inappropriately. (3) The Naval Air Systems Command’s Advanced Laser Data Acquisition Center, the Air Force’s Tinker Reverse Engineering and Critical Tooling Lab, and the Army’s Cyber Command’s reverse engineering of Internet of Things devices, demonstrates there is precedent for the Department of the Navy, the Department of the Army, and the Department of the Air Force to conduct reverse engineering programs. (4) Intellectual property rights can help spur innovation and strengthen the economy of the United States. The Secretary of the Army, the Secretary of the Navy, and the Secretary of the Air Force should consult with the Defense Logistics Agency and utilize the best practices to protect intellectual property rights as described in the report described in paragraph (2). (5) Reverse Engineering ensures efficiency in the manufacturing processes of military equipment ensuring timely delivery and development of military equipment. 2. Pilot program on use of reverse engineering for production of parts (a) Pilot program required Not later than 2 years after the date of the enactment of this Act and notwithstanding any other provision of law, the Secretary of the Navy, the Secretary of the Air Force, and the Secretary of the Army shall jointly, in consultation with the Secretary of Defense and the Director of the Defense Logistics Agency, complete a pilot program to assess the feasibility and advisability of producing parts through reverse engineering. (b) Identification of parts In carrying out the pilot program required by subsection (a), the Secretary of the Navy, the Secretary of the Air Force, and the Secretary of the Army shall each identify parts, especially those procured on a sole source basis, that can be produced and competed through reverse engineering. (c) Production of parts through reverse engineering In carrying out the pilot program, the secretaries described in subsection (b) shall each, notwithstanding any other provision of law, produce not fewer than 50 parts, identified under such subsection, through reverse engineering. (d) Identification of savings In carrying out the pilot program required by subsection (a), the secretaries described in subsection (b) shall each identify savings that were obtained through the use of reverse engineering for the production of the parts under the pilot program. (e) Interim report (1) In general Not later than one year after the date of the enactment of this Act, the secretaries described in subsection (b) shall, in consultation with the Secretary of Defense, submit to the congressional defense committees an initial report on the pilot program carried out under subsection (a). (2) Contents The report submitted pursuant to paragraph (1) shall include the following: (A) The initial findings of the secretaries with respect to the matters identified under subsections (b) and (c). (B) Such recommendations as the secretaries may have for Department of Defense contracting guidance and procedures. (f) Final report (1) In general Not later than two years after the date of the enactment of this Act, the secretaries described in subsection (b) shall, in consultation with the Secretary of Defense, submit to the congressional defense committees and make available to the public a final report on the pilot program completed under subsection (a). (2) Contents The report submitted pursuant to paragraph (1) shall include the following: (A) The findings of the secretaries with respect to the matters identified under subsections (b) and (c). (B) Such recommendations as the secretaries may have for Department of Defense contracting guidance and procedures. (C) A description of the lessons learned by the secretaries in carrying out the pilot program. (g) Definition of congressional defense committees In this section, the term congressional defense committees has the meaning given such term in section 101(a) of title 10, United States Code.