Purpose and intent
- HR 9073 proposes to amend section 844 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (NDAA for FY2021) as amended by section 854 of the NDAA for Fiscal Year 2024.
- The core aim is to adjust the applicability and timing of certain restrictions on the Department of Defense (DoD) acquiring specific metal products, particularly regarding the use of covered materials and the involvement of covered nations.
- The bill also requires changes to DoD’s procurement regulations to implement these amendments.
Key provisions and changes
- Amendments to subsection (b) (applicability)
- The heading is changed to “APPLICABILITY.”
- The existing requirement that the restrictions “shall take effect on” a specified date is replaced with a staged applicability:
- Contracts and other agreements would apply only with respect to those entered into on or after the earlier of:
1) January 1, 2032; or
2) the date that is 180 days after the Secretary of Defense certifies to the congressional defense committees that there is a sufficient number of commercially viable providers of covered material located outside of covered nations to meet the DoD’s needs in terms of quality and quantity.
- A new subsection (c) is added defining terms:
- “Covered material” and “covered nation” have the meanings given in section 4872(f) of title 10, United States Code, ensuring alignment with existing statutory definitions.
- Regulatory actions
- The Secretary of Defense must revise the Department of Defense Supplement to the Federal Acquisition Regulation (DFARS) to implement the amended section 844.
- This regulatory update must be completed within 120 days after enactment.
Affected parties and entities
- Department of Defense and its contractors: The applicability of the prohibitions or restrictions on acquiring certain metal products is delayed and conditioned.
- Producers and suppliers of covered materials: The timing of compliance shifts, allowing potentially more time for domestic and international suppliers outside covered nations to meet DoD needs.
- Covered nations and domestic industry: Subject to the definitions in section 4872(f) of title 10, U.S.C., which delineate what constitutes covered nations/materials for purposes of the restrictions.
Procedural and timeline aspects
- Effective date and applicability shift:
- The amendments do not immediately apply to all new contracts; they apply to contracts and other agreements entered into on or after the earlier of:
- January 1, 2032, or
- 180 days after the Secretary certifies that sufficient viable providers outside covered nations exist.
- Certification trigger:
- The DoD must certify to the congressional defense committees that there is a sufficient number of commercially viable providers outside covered nations to supply the necessary covered material in both quality and quantity.
- Implementation timeline:
- DoD must finalize regulatory changes to DFARS within 120 days after enactment to reflect the amended statute.
Summary
HR 9073 seeks to modify when the DoD’s restrictions on acquiring certain metal products (as previously established in NDAA FY2021 and amended in FY2024) take effect. The bill extends the timeline and introduces a certification-based trigger, so applicability begins either on January 1, 2032 or 180 days after a DoD certification that adequate non-covered nation suppliers exist. It also mandates a regulatory update to DFARS within 120 days of enactment to implement these changes, and it maintains the statutory definitions of “covered material” and “covered nation” as outlined in 10 U.S.C. 4872(f). The overall impact is to delay mandatory compliance with certain acquisition restrictions while tying future applicability to market readiness and supply diversification outside covered nations.
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