Defense Production Act Reauthorization of 2003
PL 108-195 (S.1680), enacted 12/19/2003

117 STAT. 2892
PUBLIC LAW 108–195—DEC. 19, 2003
Public Law 108–195
108th Congress
An Act
To reauthorize the Defense Production Act of 1950, 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 ‘‘Defense Production Act Reauthor-
ization of 2003’’.
SEC. 2. REAUTHORIZATION OF DEFENSE PRODUCTION ACT OF 1950.
(a) IN GENERAL.—The first sentence of section 717(a) of the
Defense Production Act of 1950 (50 U.S.C. App. 2166(a)) is
amended—
(1) by striking ‘‘sections 708’’ and inserting ‘‘sections 707,
708,’’; and
(2) by striking ‘‘September 30, 2003’’ and inserting ‘‘Sep-
tember 30, 2008’’.
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 711(b) of the
Defense Production Act of 1950 (50 U.S.C. App. 2161(b)) is amended
by striking ‘‘through 2003’’ and inserting ‘‘through 2008’’.
SEC. 3. RESOURCE SHORTFALL FOR RADIATION-HARDENED ELEC-
TRONICS.
(a) IN GENERAL.—Notwithstanding the limitation contained in
section 303(a)(6)(C) of the Defense Production Act of 1950 (50 U.S.C.
App. 2093(a)(6)(C)), the President may take actions under section
303 of the Defense Production Act of 1950 to correct the industrial
resource shortfall for radiation-hardened electronics, to the extent
that such Presidential actions do not cause the aggregate out-
standing amount of all such actions to exceed $200,000,000.
(b) REPORT BY THE SECRETARY.—Before the end of the 6-month
period beginning on the date of the enactment of this Act, the
Secretary of Defense shall submit a report to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Com-
mittee on Financial Services of the House of Representatives
describing—
(1) the current state of the domestic industrial base for
radiation-hardened electronics;
(2) the projected requirements of the Department of
Defense for radiation-hardened electronics;
(3) the intentions of the Department of Defense for the
industrial base for radiation-hardened electronics; and
(4) the plans of the Department of Defense for use of
providers of radiation-hardened electronics beyond the pro-
viders with which the Department had entered into contractual
Deadline.
50 USC app.
2093 note.
50 USC app.
2061 note.
Defense
Production Act
Reauthorization
of 2003.
Dec. 19, 2003
[S. 1680]
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117 STAT. 2893
PUBLIC LAW 108–195—DEC. 19, 2003
arrangements under the authority of the Defense Production
Act of 1950, as of the date of the enactment of this Act.
SEC. 4. CLARIFICATION OF PRESIDENTIAL AUTHORITY.
Subsection (a) of section 705 of the Defense Production Act
of 1950 (50 U.S.C. App. 2155(a)) is amended by inserting after
the end of the first sentence the following new sentence: ‘‘The
authority of the President under this section includes the authority
to obtain information in order to perform industry studies assessing
the capabilities of the United States industrial base to support
the national defense.’’.
SEC. 5. CRITICAL INFRASTRUCTURE PROTECTION AND RESTORATION.
Section 702 of the Defense Production Act of 1950 (50 U.S.C.
App. 2152) is amended—
(1) by redesignating paragraphs (3) through (17) as para-
graphs (4) through (18), respectively;
(2) by inserting after paragraph (2) the following new para-
graph:
‘‘(3) CRITICAL INFRASTRUCTURE.—The term ‘critical infra-
structure’ means any systems and assets, whether physical
or cyber-based, so vital to the United States that the degrada-
tion or destruction of such systems and assets would have
a debilitating impact on national security, including, but not
limited to, national economic security and national public health
or safety.’’; and
(3) in paragraph (14) (as so redesignated by paragraph
(1) of this section), by inserting ‘‘and critical infrastructure
protection and restoration’’ before the period at the end of
the last sentence.
SEC. 6. REPORT ON CONTRACTING WITH MINORITY- AND WOMEN-
OWNED BUSINESSES.
(a) REPORT REQUIRED.—Before the end of the 1-year period
beginning on the date of the enactment of this Act, the Secretary
of Defense shall submit a report to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee
on Financial Services of the House of Representatives on the extent
to which contracts entered into during the fiscal year ending before
the end of such 1-year period under the Defense Production Act
of 1950 have been contracts with minority- and women-owned
businesses.
(b) CONTENTS OF REPORT.—The report submitted under sub-
section (a) shall include the following:
(1) The types of goods and services obtained under contracts
with minority- and women-owned businesses under the Defense
Production Act of 1950 in the fiscal year covered in the report.
(2) The dollar amounts of such contracts.
(3) The ethnicity of the majority owners of such minority-
and women-owned businesses.
(4) A description of the types of barriers in the contracting
process, such as requirements for security clearances, that limit
contracting opportunities for minority- and women-owned
businesses, together with such recommendations for legislative
or administrative action as the Secretary of Defense may deter-
mine to be appropriate for increasing opportunities for con-
tracting with minority- and women-owned businesses and
removing barriers to such increased participation.
Deadline.
50 USC app.
2062 note.
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117 STAT. 2894
PUBLIC LAW 108–195—DEC. 19, 2003
(c) DEFINITIONS.—For purposes of this section, the terms
‘‘women-owned business’’ and ‘‘minority-owned business’’ have the
meanings given such terms in section 21A(r) of the Federal Home
Loan Bank Act, and the term ‘‘minority’’ has the meaning given
such term in section 1204(c)(3) of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989.
SEC. 7. REPORT ON IMPACT OF OFFSETS ON DOMESTIC CONTRACTORS
AND LOWER TIER SUBCONTRACTORS.
(a) EXAMINATION OF IMPACT REQUIRED.—
(1) IN GENERAL.—As part of the annual report required
under section 309(a) of the Defense Production Act of 1950
(50 U.S.C. App. 2099(a)), the Secretary of Commerce (in this
section referred to as the ‘‘Secretary’’) shall—
(A) detail the number of foreign contracts involving
domestic contractors that use offsets, industrial participa-
tion agreements, or similar arrangements during the pre-
ceding 5-year period;
(B) calculate the aggregate, median, and mean values
of the contracts and the offsets, industrial participation
agreements, and similar arrangements during the pre-
ceding 5-year period; and
(C) describe the impact of international or foreign sales
of United States defense products and related offsets,
industrial participation agreements, and similar arrange-
ments on domestic prime contractors and, to the extent
practicable, the first 3 tiers of domestic contractors and
subcontractors during the preceding 5-year period in terms
of domestic employment, including any job losses, on an
annual basis.
(2) USE OF INTERNAL DOCUMENTS.—To the extent that the
Department of Commerce is already in possession of relevant
data, the Department shall use internal documents or existing
departmental records to carry out paragraph (1).
(3) INFORMATION FROM NON-FEDERAL ENTITIES.—
(A) EXISTING INFORMATION.—In carrying out paragraph
(1), the Secretary shall only require a non-Federal entity
to provide information that is available through the existing
data collection and reporting systems of that non-Federal
entity.
(B) FORMAT.—The Secretary may require a non-Federal
entity to provide information to the Secretary in the same
form that is already provided to a foreign government
in fulfilling an offset arrangement, industrial participation
agreement, or similar arrangement.
(b) REPORT.—
(1) IN GENERAL.—Before the end of the 8-month period
beginning on the date of enactment of this Act, the Secretary
shall submit to Congress a report containing the findings and
conclusions of the Secretary with regard to the examination
made pursuant to subsection (a).
(2) COPIES OF REPORT.—The Secretary shall also transmit
copies of the report prepared under paragraph (1) to the United
States Trade Representative and the interagency team estab-
lished pursuant to section 123(c) of the Defense Production
Act Amendments of 1992 (50 U.S.C. App. 2099 note).
Deadline.
50 USC app.
2062 note.
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117 STAT. 2895
PUBLIC LAW 108–195—DEC. 19, 2003
LEGISLATIVE HISTORY—S. 1680:
SENATE REPORTS: No. 108–156 (Comm. on Banking, Housing, and Urban Af-
fairs).
CONGRESSIONAL RECORD, Vol. 149 (2003):
Sept. 30, considered and passed Senate.
Oct. 15, considered and passed House, amended.
Nov. 21, Senate concurred in House amendment with an amendment.
Dec. 8, House concurred in Senate amendment.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 39 (2003):
Dec. 19, Presidential statement.
(c) RESPONSIBILITIES REGARDING CONSULTATION WITH FOREIGN
NATIONS.—Section 123(c) of the Defense Production Act Amend-
ments of 1992 (50 U.S.C. App. 2099 note) is amended to read
as follows:
‘‘(c) NEGOTIATIONS.—
‘‘(1) INTERAGENCY TEAM.—
‘‘(A) IN GENERAL.—It is the policy of Congress that
the President shall designate a chairman of an interagency
team comprised of the Secretary of Commerce, Secretary
of Defense, United States Trade Representative, Secretary
of Labor, and Secretary of State to consult with foreign
nations on limiting the adverse effects of offsets in defense
procurement without damaging the economy or the defense
industrial base of the United States or United States
defense production or defense preparedness.
‘‘(B) MEETINGS.—The President shall direct the inter-
agency team to meet on a quarterly basis.
‘‘(C) REPORTS.—The President shall direct the inter-
agency team to submit to Congress an annual report, to
be included as part of the report required under section
309(a) of the Defense Production Act of 1950 (50 U.S.C.
App. 2099(a)), that describes the results of the consultations
of the interagency team under subparagraph (A) and the
meetings of the interagency team under subparagraph (B).
‘‘(2) RECOMMENDATIONS
FOR
MODIFICATIONS.—The inter-
agency team shall submit to the President any recommenda-
tions for modifications of any existing or proposed memorandum
of understanding between officials acting on behalf of the
United States and one or more foreign countries (or any
instrumentality of a foreign country) relating to—
‘‘(A) research, development, or production of defense
equipment; or
‘‘(B) the reciprocal procurement of defense items.’’.
Approved December 19, 2003.
President.
Establishment.
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