To improve the amendment.

1. Adds SEC. 1055. IMPOSITION OF OFFSETS UNDER CERTAIN DEPARTMENT OF DEFENSE CONTRACTS at the end of subtitle F of title X

   Adds a section

   In S. 2400 · Placed on Calendar Senate

   "7206. Submarine safety research and development: acceptance of services of NATO naval personnel.".

   Inserted: SEC. 1055. IMPOSITION OF OFFSETS UNDER CERTAIN DEPARTMENT OF DEFENSE CONTRACTS.

   Inserted: (a) Requirement To Impose on Certain Contractors and Subcontractors.--(1) Notwithstanding any declaration of policy in section 123 of the Defense Production Act Amendments of 1992 (Public Law 102-558; 106 Stat. 4198; 50 U.S.C. App. 2099 note), the Secretary of Defense shall impose an offset on a contractor or subcontractor under a contract of the Department of Defense for defense goods or services if the preponderance of goods or services supplied by the contractor or subcontractor under the contract are produced, manufactured, grown, or extracted in a foreign country that imposes, whether by law or practice, offsets in excess of 100 percent on United States suppliers of goods or services.

   Inserted: (2) The offset imposed on a contractor or subcontractor under paragraph (1) shall be at least equal in percentage to the percentage imposed by the foreign country concerned on United States suppliers of goods and services.

   Inserted: (b) Authority To Impose on Certain Contractors and Subcontractors.--Notwithstanding any declaration of policy in such section 123, the Secretary may impose an offset on a contractor or subcontractor under a contract of the Department for defense goods or services if the preponderance of goods or services supplied by the contractor or subcontractor under the contract are produced, manufactured, grown, or extracted in a foreign country that imposes, whether by law or practice, offsets (other than offsets described in subsection (a)) on United States suppliers of goods or services under contracts in excess of $5,000,000.

   Inserted: (c) Offset Defined.--In this section, the term "offset" means any arrangement or understanding between a supplier of defense articles or defense services (as those terms are defined in the Arms Export Control Act (22 U.S.C. 2751 et seq.) and a country under which the supplier agrees to purchase or acquire, or to promote the purchase or acquisition by persons of the supplier's country of, goods or services produced, manufactured, grown, or extracted, in whole or in part, in such country in consideration for the purchase by such country of defense articles or defense services from the supplier.

   Inserted: (d) Report on Imposition of Offsets.--The Secretary shall submit to Congress a report on each imposition of offsets under this section.

   Original wording

   At the end of subtitle F of title X, add the following:

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As printed