MINDS Act

I 118TH CONGRESS 1ST SESSION H. R. 3438 To require the Secretary of Defense report on the domestic content require- ments major defense acquisition programs, to establish an enhanced domestic content requirement for certain procurements, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MAY 17, 2023 Mr. NORCROSS introduced the following bill; which was referred to the Committee on Armed Services A BILL To require the Secretary of Defense report on the domestic content requirements major defense acquisition pro- grams, to establish an enhanced domestic content re- quirement for certain procurements, and for other pur- poses. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Military Industrial Na- 4 tional Defense Supply Act of 2023’’ or the ‘‘MINDS Act’’. 5 VerDate Sep 11 2014 00:49 Jun 02, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3438.IH H3438 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 3438 IH SEC. 2. ENHANCED DOMESTIC CONTENT REQUIREMENT 1 FOR MAJOR DEFENSE ACQUISITION PRO- 2 GRAMS. 3 (a) ASSESSMENT REQUIRED.— 4 (1) IN GENERAL.—Not later than one year 5 after the date of the enactment of this Act, the Sec- 6 retary of Defense shall submit to the congressional 7 defense committees a report assessing the domestic 8 source content of procurements carried out in con- 9 nection with a major defense acquisition program. 10 (2) INFORMATION REPOSITORY.—The Secretary 11 of Defense shall establish an information repository 12 for the collection and analysis of information related 13 to domestic source content for products the Sec- 14 retary deems critical, where such information can be 15 used for continuous data analysis and program man- 16 agement activities. 17 (b) ENHANCED DOMESTIC CONTENT REQUIRE- 18 MENT.— 19 (1) IN GENERAL.—Except as provided in para- 20 graph (2), for purposes of chapter 83 of title 41, 21 United States Code, manufactured articles, mate- 22 rials, or supplies procured in connection with a 23 major defense acquisition program are manufactured 24 substantially all from articles, materials, or supplies 25 mined, produced, or manufactured in the United 26 VerDate Sep 11 2014 00:49 Jun 02, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3438.IH H3438 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 3438 IH States if the cost of such component articles, mate- 1 rials, or supplies— 2 (A) supplied not later than the date of the 3 enactment of this Act, exceeds 60 percent of 4 cost of the manufactured articles, materials, or 5 supplies procured; 6 (B) supplied during the period beginning 7 January 1, 2024, and ending December 31, 8 2028, exceeds 65 percent of the cost of the 9 manufactured articles, materials, or supplies; 10 and 11 (C) supplied on or after January 1, 2029, 12 exceeds 75 percent of the cost of the manufac- 13 tured articles, materials, or supplies. 14 (2) EXCLUSION FOR CERTAIN MANUFACTURED 15 ARTICLES.—Paragraph (1) shall not apply to manu- 16 factured articles that consist wholly or predomi- 17 nantly of iron, steel, or a combination of iron and 18 steel. 19 (3) RULEMAKING TO CREATE A FALLBACK 20 THRESHOLD.— 21 (A) IN GENERAL.—Not later than 180 22 days after the date of the enactment of this 23 Act, the Secretary of Defense shall issue rules 24 to determine the treatment of the lowest price 25 VerDate Sep 11 2014 00:49 Jun 02, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3438.IH H3438 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 3438 IH offered for a foreign end product for which 55 1 percent or more of the component articles, ma- 2 terials, or supplies of such foreign end product 3 are manufactured substantially all from articles, 4 materials, or supplies mined, produced, or man- 5 ufactured in the United States if— 6 (i) the application paragraph (1) re- 7 sults in an unreasonable cost; or 8 (ii) no offers are submitted to supply 9 manufactured articles, materials, or sup- 10 plies manufactured substantially all from 11 articles, materials, or supplies mined, pro- 12 duced, or manufactured in the United 13 States. 14 (B) TERMINATION.—Rules issued under 15 this paragraph shall cease to have force or ef- 16 fect on January 1, 2030. 17 (4) APPLICABILITY.—The requirements of this 18 subsection— 19 (A) shall apply to contracts entered into on 20 or after the date of the enactment of this Act; 21 and 22 (B) shall not apply to a country that is a 23 member of the national technology and indus- 24 VerDate Sep 11 2014 00:49 Jun 02, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3438.IH H3438 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 3438 IH trial base (as defined by section 4801 of title 1 10, United States Code). 2 (c) MAJOR DEFENSE ACQUISITION PROGRAM DE- 3 FINED.—The term ‘‘major defense acquisition program’’ 4 has the meaning given in section 4201 of title 10, United 5 States Code. 6 Æ VerDate Sep 11 2014 00:49 Jun 02, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H3438.IH H3438 kjohnson on DSK79L0C42PROD with BILLS