Defense Production Act Amendments of 1990

Summary

Defense Production Act Amendments of 1989 - Title I: Amendments to the Defense Production Act of 1950 - Part A: Declaration of Policy - Revises the declaration of policy under the Defense Production Act of 1950 to state that such Act affords the President an array of authorities to shape defense preparedness programs and to take appropriate steps to maintain and enhance the defense industrial and technology base. Part B: Amendments to Title III of the Defense Production Act - Expands the existing loan guarantee authority of the President to include providing such authority for the procurement of a critical technology for the national defense. Increases from $25,000,000 to $50,000,000 the maximum loan guarantee amount that may be made before a specific authorization by law is needed. Waives such loan guarantee requirements upon a determination by the President, on a nondelegable basis, that a specific loan guarantee is needed to avert an industrial resource or critical technology shortfall that would severely impair national defense capability. Makes the same changes identically for loans made to private business enterprises under such Act. Authorizes the President to provide for purchases or purchase commitments for an industrial resource or a critical technology (currently, such purchases or purchase commitments are permitted for the purchase of metals, minerals, and other material). Prohibits the President from executing a contract for purchase or purchase commitment unless: (1) the industrial resource or critical technology is essential to the national defense; (2) U.S. industry cannot reasonably provide such resource or technology in a timely manner; or (3) U.S. national defense demand for the resource or technology is equal to or greater than the output of domestic industrial capability determined to be available for national defense. Increases from $25,000,000 to $50,000,000 the maximum industrial resource shortfall authorized to be reached by the President before a specific authorization by law is required. Waives such purchase and purchase commitment requirements when the President determines, on a nondelegable basis, that such purchase or purchase commitment must be made promptly to avert an industrial resource or critical technology shortfall that would severely impair national defense capability. Extends the term for such purchases or purchase commitments from September 30, 1995, to a date not more than ten years from the date such purchase, commitment, or sale was initially made. Requires excess industrial resources to be sold for industrial use pursuant to other Government programs or transferred to the National Defense Stockpile. Requires such sales or transfers to be charged against, or reimbursed from, funds appropriated to such other government programs or the Stockpile to which such resources were sold or transferred. Establishes in the Treasury the Defense Production Act Fund to carry out the purposes of title III of such Act. Establishes a maximum Fund balance. Directs the Secretary of the Treasury to designate a Fund manager to manage such Fund and report to the Congress annually on Fund activities. Provides for the determination of liabilities against the Fund. Amends the Strategic and Critical Materials stock Piling Act to provide for deposit into the Fund of certain amounts received from the sale of materials in the National Defense Stockpile. Transfers a specified amount to such Fund from the National Defense Stockpile Trans-Action Fund. Requires the Department of Commerce (currently, the President) to prepare a report on the impact of offsets on the defense preparedness, industrial competitiveness, employment, and trade of the United States, as required under the Defense Production Act of 1950. Provides that if a U.S. firm enters into a contract for the sale of a weapon system or defense-related item to a foreign country or foreign firm and such contract is subject to an offset agreement exceeding $5,000,000, such firm shall furnish an offset agreement to a designated defense official and information concerning such sale. Provides for the protection of confidential information provided to such defense official. Outlines information to be included in the reports prepared by the Department of Commerce. Requires findings and recommendations contained in such reports to be considered by representatives of the United States during bilateral and multilateral negotiations aimed at minimizing the adverse effects of offsets. Part C: Amendments to Title VII of the Defense Production Act - Requires small business concerns to be given the maximum practicable opportunity to participate as contractors and subcontractors in all programs to maintain and strengthen the nation's industrial base undertaken under such Act. Requires the President to allocate a fair share of material authorized under the Act to small business concerns, especially to new concerns or individual firms facing undue hardship. Adds new definitions as required by changes made under this Act. Authorizes any agency head or officer to appoint civilian personnel to carry out any authority required under this Act. Authorizes the President to establish sanctioned industry consortia to provide industrial resources or critical technologies found to be essential for the preservation or enhancement of the industrial or technology base of the United States supporting the national defense. Prohibits criminal or civil actions to be brought under the antitr.ust laws against any participant in such a consortia for related activities. Defines a "sanctioned industry consortia" as an arrangement among two or more entities for joint research, research and development, production, marketing, or a combination of such activities in order to attain the industrial resources or critical technologies desired. Outlines provisions relating to the formation and sanctioning of industry consortia, the establishment of a consortium advisory council, and termination and regulation of such a consortium. Exempts the activities of a sanctioned industry consortium from the provisions of the Federal Advisory Committee Act. Outlines civil procedures for remedies against a sanctioned industry consortium, requiring that a person within the consortium must have failed to comply with the scope and limitations of its charter in order to grant injunctive relief or damages to a person bringing such an action. Exempts any rule, regulation, order, or amendment thereto promulgated under the authority of the Defense Production Act of 1950 from the Administrative Procedure Act. Authorizes the President to review certain mergers, acquisitions, or takeovers involving foreign persons if it is believed that such an action may threaten to impair the national security. Part D: Technical Amendments - Limits the use of presidential authority to prioritize contracts having a bearing on national defense over other contracts or orders. Increases from $1,000 to $10,000 the possible fine for the willful violation of certain information disclosure rules. Revises provisions concerning certain employment appointment procedures in connection with appointments made by the President in order to carry out the provisions of the Defense Production Act. Part E: Repealers and Conforming Amendments - Repeals specified provisions of such Act which: (1) require the President to transmit any synthetic fuel action to both Houses of the Congress on the same day; (2) provide for voluntary agreements and plans of action for international agreements concerning the international allocation of petroleum products and related information systems; (3) provide for the accrual of interest on remaining funds authorized and appropriated to carry out such Act; (4) establish the Joint Committee on Defense Production; (5) disqualify certain persons for employment under such Act; (6) require a feasibility study of the application of uniform cost accounting standards under defense procurement contracts; and (7) establish the National Commission on Supplies and Shortages. Part F: Reauthorization of Selected Provisions - Extends through FY 1993 the authorization of appropriations to carry out such Act. Revises termination dates of specified provisions of such Act. Title II: Additional Provisions to Improve Industrial Preparedness - Part A: Industrial Capability and National Security - Directs the President to promptly establish an Industrial Capabilities Committee or other appropriate forum to exercise certain responsibilities in connection with the industrial capability of the United States as it relates to national security. Expresses the sense of the Congress that: (1) the national security of the United States would benefit from a greater integration of national economic policies with national security policies; and (2) such objective would be fostered by designating the Secretary of Defense as a member of the Economic Policy Council and establishing a Defense Working Group within such Council. Expresses the sense of the Congress that the President should conduct exercises periodically to assess the defense industry's capability to respond to increased demands for defense material and service under graduated mobilization response conditions. Part B: Encouraging Improving of the Defense Industrial Base - Directs the President, acting through the Administrator for Federal Procurement Policy, to prescribe an acquisition policy that encourages contractors to invest in advanced manufacturing technology, advanced production equipment, and advanced manufacturing processes. Directs the President to prescribe an acquisition policy which requires that the acquisition plan for any major system acquisition encourage competing offerors to acquire modern industrial facilities and production systems and other modern production equipment that increase the productivity of the offerors and reduce the costs of production. Sets forth authorized solicitation provisions to be included in such contract solicitations. Directs the President to prescribe an acquisition policy authorizing a departmental secretary or agency head to restrict to domestic sources the competition for all or a portion of a contract opportunity to fulfill the requirements for materials or items of supply that are products of, or manufactured through, the application of a critical technology. Directs the President to prescribe an acquisition policy authorizing a departmental secretary or agency head to make a noncompetitive contract award for the procurement of any critical item of supply from a domestic source in order to maintain at least one domestic source determined to be essential to national security. Provides certain subcontracting procedures in connection with the procurement of such critical items of supply through domestic sources. Directs the President, acting through the Secretary of Defense, to: (1) determine items of supply that are critical items; and (2) publish a list of such critical items in the Federal Acquisition Regulation. Part C: Unfair Foreign Competition - Directs the President to prescribe an acquisition policy for evaluating contract offers received from nondomestic sources with respect to a price advantage that a nondomestic source may have over a domestic source as a result of any unfair advantage. Requires such policy to provide for the application of price evaluation factors to the offers of nondomestic sources when necessary to counter any such unfair advantage. Provides that a finding that a contractor has engaged in an unfair trade practice shall indicate a lack of business integrity or honesty that seriously and directly affects the responsibility of the contractor to perform any Government contract. Subjects such a contractor to suspension and debarment from participation in Government contracts. Title III: Amendments to Related Laws - Amends the Federal Property and Administrative Service Act of 1949 to require the proceeds from the sale of excess industrial plant equipment and facilities to be deposited in the Treasury as miscellaneous receipts, with certain exceptions. Requires the Defense Production Act Fund to be credited in circumstances where the property transferred or disposed of was industrial plant equipment or production facilities determined to be no longer required for mobilization of the defense industrial base. Amends the Strategic and Critical Material Stock Piling Act to revise the definition of "strategic and critical materials." Title IV: Effective Dates - Sets forth effective dates for this Act.

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7 official files

• Reported to Senate (text)

  Reported to Senate · EN

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• Reference Change Senate (text)

  Reference Change Senate · EN

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• Placed on Calendar Senate (text)

  Placed on Calendar Senate · EN

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• Introduced in Senate (text)

  Introduced in Senate · EN

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• Indefinitely postponed in Senate

  summary · EN · 3 October 1990

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• Reported to Senate with amendment(s)

  summary · EN · 13 July 1990

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• Introduced in Senate

  summary · EN · 24 July 1989

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