To provide for the applicability of certain requirements to the acquisition of certain specialty metals.

1. Rewrites section 822

   Replaces

   In S. 2766 · Placed on Calendar Senate

   SEC. 822. [struck: SUBSTITUTION][inserted: APPLICABILITY] OF [struck: SPECIALTY METALS WITH TITANIUM AND NICKEL UNDER CERTAIN REQUIREMENTS][inserted: CERTAIN REQUIREMENTS REGARDING SPECIALTY METALS].

   Struck: (a) In General.--Subsection (b) of section 2533a of title 10, United States Code, as amended by section 821(a) of this Act, is further amended by striking paragraph (2) and inserting the following new paragraphs:

   Struck: "(2) Titanium.

   Struck: "(3) Nickel.".

   Struck: (b) Conforming Amendments.--Such section 2533a is further amended--

   Show 4 more struck paragraphsShow less

   Struck: (1) in subsection (c), by striking "or specialty metals (including stainless steel flatware)" and inserting ", titanium, or nickel"; and

   Struck: (2) in subsection (e)--

   Struck: (A) in the subsection caption, by striking "Specialty Metals" and inserting "Titanium, Nickel,"; and

   Struck: (B) in the matter preceding paragraph (1), by striking "specialty metals" and inserting "titanium, nickel,".

   Inserted: (a) Exemption for Certain Commercial Items.--Subsection (i) of section 2533a of title 10, United States Code, is amended--

   Inserted: (1) by inserting ", Dual-Use Items, and Electronic Components" after "Commercial Items";

   Inserted: (2) by inserting "(1)" before "this section";

   Inserted: (3) in paragraph (1), as so designated, by inserting "described in subsection (b)(1)" after "commercial items"; and

   Inserted: (4) by adding at the end the following new paragraphs:

   Inserted: "(2) This section is not applicable to--

   Inserted: "(A) a contract or subcontract for the procurement of a commercial item containing specialty metals described in subsections (b)(2) and (b)(3); or

   Inserted: "(B) specialty metals that are incorporated into an electronic component, where the value of the specialty metal used in the component is de minimis in relation to the value of the electronic component.

   Inserted: "(3) For purposes of paragraph (2)(A), a commercial item does not include--

   Inserted: "(A) any item that contains noncommercial modifications that cost or are expected to cost, in the aggregate, more than 5 percent of the total price of such item;

   Inserted: "(B) any item that would not be considered to be a commercial item, but for sales to government entities or inclusion in items that are sold to government entities;

   Inserted: "(C) forgings or castings for military unique end items;

   Show 13 more inserted paragraphsShow less

   Inserted: "(D) fasteners other than commercial off-the-shelf items (as defined in section 35(c) of the Office of Federal Procurement Policy Act (41 U.S.C. 431(c)); or

   Inserted: "(E) specialty metals.".

   Inserted: (b) Exception for Certain Dual-Use Items To Facilitate Civil-Military Integration.--Such section is further amended by adding at the end the following new subsection:

   Inserted: "(k) Exception for Certain Dual-Use Items To Facilitate Civil-Military Integration.--Subsection (a) does not apply to the procurement of an item from a contractor or a first-tier subcontractor if the Secretary of Defense or the Secretary of a military department determines that--

   Inserted: "(1) the item is or will be produced using the same production facilities, a common supply chain, and the same or similar production processes that are used for the production of similar items delivered to non-defense customers; and

   Inserted: "(2) the contractor or subcontractor has made a contractual commitment to purchase a quality, grade, and amount of domestically-melted specialty metals for use by the purchaser during the period of contract performance in the production of the item and other similar items delivered to non-defense customers that is not less that the greater of--

   Inserted: "(A) the amount of specialty metals that is purchased by the contractor for use in the item delivered to the Department of Defense; or

   Inserted: "(B) 40 percent of the amount of specialty metals purchased by the contractor or subcontractor for use during such period in the production of the item and similar items delivered to non-defense contractors.".

   Inserted: (c) De Minimis Standard for Specialty Metals.--Such section is further amended by adding at the end the following new subsection:

   Inserted: "(l) Minimum Threshold for Specialty Metals.--Notwithstanding the requirements of subsection (a), the Secretary of Defense or the Secretary of a military department may accept delivery of an item containing specialty metals that were not grown, reprocessed, reused, or produced in the United States if the total amount of noncompliant specialty metals in the item does not exceed 2 percent of the total amount of specialty metals in the item.".

   Inserted: (d) Effective Date.--

   Inserted: (1) In general.--The amendments made by subsections (a) and (c) shall take effect on the date of the enactment of this Act, and shall apply with respect to items accepted for delivery on or after that date.

   Inserted: (2) Civil-military integration.--The amendment made by subsection (b) shall take effect on the date of the enactment of this Act, and shall apply to contracts entered into on or after that date.

   Original wording

   Strike section 822 and insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed