II
118THCONGRESS
1
STSESSION S. 2487
To provide for an enhanced domestic content requirement for Navy
shipbuilding programs.
IN THE SENATE OF THE UNITED STATES
JULY25, 2023
Ms. B
ALDWINintroduced the following bill; which was read twice and referred
to the Committee on Armed Services
A BILL
To provide for an enhanced domestic content requirement
for Navy shipbuilding programs.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. ENHANCED DOMESTIC CONTENT REQUIRE-3
MENT FOR NAVY SHIPBUILDING PROGRAMS. 4
(a) E
NHANCED DOMESTICCONTENTREQUIRE-5
MENT.— 6
(1) C
ONTRACTING REQUIREMENTS .—Except as 7
provided in paragraph (2), for purposes of chapter 8
83 of title 41, United States Code, manufactured ar-9
ticles, materials, or supplies procured as part of a 10
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•S 2487 IS
Navy shipbuilding program are manufactured sub-1
stantially all from articles, materials, or supplies 2
mined, produced, or manufactured in the United 3
States if the cost of such component articles, mate-4
rials, or supplies— 5
(A) supplied during the period beginning 6
January 1, 2026, and ending December 31, 7
2027, exceeds 65 percent of the cost of the 8
manufactured articles, materials, or supplies; 9
(B) supplied during the period beginning 10
January 1, 2028, and ending December 31, 11
2032, exceeds 75 percent of the cost of the 12
manufactured articles, materials, or supplies; 13
and 14
(C) supplied on or after January 1, 2033, 15
equals 100 percent of the cost of the manufac-16
tured articles, materials, or supplies. 17
(2) A
PPLICABILITY TO RESEARCH , DEVELOP-18
MENT, TEST, AND EVALUATION ACTIVITIES .—Con-19
tracts related to shipbuilding programs entered into 20
under paragraph (1) to carry out research, develop-21
ment, test, and evaluation activities shall require 22
that these activities and the components specified 23
during these activities must meet the domestic con-24
tent requirements delineated under paragraph (1). 25
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(3) EXCLUSION FOR CERTAIN MANUFACTURED 1
ARTICLES.—Paragraph (1) shall not apply to manu-2
factured articles that consist wholly or predomi-3
nantly of iron, steel, or a combination of iron and 4
steel. 5
(4) W
AIVER.—The Secretary of Defense may 6
request a waiver from the requirements under para-7
graph (1) in order to expand sourcing to members 8
of the national technical industrial base (as that 9
term is defined in section 4801 of title 10, United 10
States Code). Any such waiver shall be subject to 11
the approval of the Director of the Made in America 12
Office and may only be requested if it is determined 13
that any of the following apply: 14
(A) Application of the limitation would in-15
crease the cost of the overall acquisition by 16
more than 25 percent or cause unreasonable 17
delays to be incurred. 18
(B) Satisfactory quality items manufac-19
tured by a domestic entity are not available or 20
domestic production of such items cannot be 21
initiated without significantly delaying the 22
project for which the item is to be acquired. 23
(C) It is inconsistent with the public inter-24
est. 25
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(5) RULEMAKING.—Not later than 180 days 1
after the date of the enactment of this Act, the Sec-2
retary of Defense, in concurrence with the Director 3
of the Made in America Office, shall issue rules to 4
determine the treatment of the lowest price offered 5
for a foreign end product for which 55 percent or 6
more of the component articles, materials, or sup-7
plies of such foreign end product are manufactured 8
substantially all from articles, materials, or supplies 9
mined, produced, or manufactured in the United 10
States if— 11
(A) the application of paragraph (1) re-12
sults in an unreasonable cost; or 13
(B) no offers are submitted to supply man-14
ufactured articles, materials, or supplies manu-15
factured substantially all from articles, mate-16
rials, or supplies mined, produced, or manufac-17
tured in the United States. 18
(6) A
PPLICABILITY.—The requirements of this 19
subsection shall apply to contracts entered into on or 20
after January 1, 2026. 21
(b) R
EPORTING ONCOUNTRY OFORIGINMANUFAC-22
TURING.—Not later than one year after the date of the 23
enactment of this Act, and annually thereafter, the Sec-24
retary of Defense shall submit to Congress a report on 25
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country of origin tracking and reporting as it relates to 1
manufactured content procured as part of Navy ship-2
building programs, including through primary contracts 3
and subcontracts at the second and third tiers. The report 4
shall describe measures taken to ensure that the country 5
of origin information pertaining to such content is re-6
ported accurately in terms of the location of manufacture 7
and not determined by the location of sale. 8
Æ
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