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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle E--Industrial Base Matters

P. L. 116-92

House Conference Report 116-333

(a) Authority to Dispose of and Acquire Materials for the National Defense Stockpile.--

(1) Disposal authority.--Pursuant to section 5(b) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98d(b)), the National Defense Stockpile Manager shall dispose of 3,000,000 pounds of tungsten ores and concentrates contained in the National Defense Stockpile (in addition to any amount previously authorized for disposal).

(2) Acquisition authority.--

(A) Authority.--Using funds available in the National Defense Stockpile Transaction Fund, the National Defense Stockpile Manager may acquire the following materials determined to be strategic and critical materials required to meet the defense, industrial, and essential civilian needs of the United States:

(i) Aerospace-grade rayon.

(ii) Electrolytic manganese metal.

(iii) Pitch-based carbon fiber.

(iv) Rare earth cerium compounds.

(v) Rare earth lanthanum compounds.

(B) Amount of authority.--The National Defense Stockpile Manager may use up to $37,420,000 in the National Defense Stockpile Transaction Fund for acquisition of the materials specified in this paragraph.

(3) Fiscal year limitation.--The authority under this subsection is available for purchases made during fiscal year 2020 through fiscal year 2024.

(b) Sense of Congress Relating to National Defense Stockpile Sales.--It is the sense of Congress that tantalum should be designated as a strategic and critical material under the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98 et seq.) required to meet the defense, industrial, and essential civilian needs of the United States.

(c) Report on Supply Chain Issues for Rare Earth Materials.--Not later than 180 days after the date of the enactment of this Act, the Administrator of the Defense Logistics Agency, in coordination with the Deputy Assistant Secretary of Defense for Industrial Policy, shall submit a report to Congress assessing issues relating to the supply chain for rare earth materials. Such report shall include the following:

(1) An assessment of the rare earth materials in the reserves held by the United States.

(2) A estimate of the needs of the United States for rare earth materials--

(A) in general; and

(B) to support a major near-peer conflict as described in war game scenarios in the 2018 National Defense Strategy.

(3) An assessment of the extent to which substitutes for rare earth materials are available.

(4) A strategy or plan to encourage the use of rare earth materials mined, refined, processed, melted, or sintered in the United States, or from trusted allies, including an assessment of the best acquisition practices (which shall include an analysis of best value contracting methods) to ensure the viability of trusted suppliers of rare earth materials to meet national security needs.

The Senate bill contained a provision (sec. 6401) that would require the Secretary of Defense, acting through the Defense Logistics Agency, to submit a report assessing issues relating to the supply chain for rare earth materials.

The House amendment contained a similar provision (sec. 807) that would require the Department of Defense to promulgate guidance on streamlined acquisition of items with rare earth materials and allows exceptions to the Joint Capabilities Integration and Development System Manual and Department of Defense Directive 5000.01. The provision would also provide authority for the disposal of tungsten ores and concentrates contained in the National Defense Stockpile and acquisition of other critical materials.

The Senate recedes with an amendment that would remove the requirement to establish guidance on streamlined acquisition of covered rare earth materials and would include an assessment of rare earth supply chain issues.

House Report 116-120

Section 807--Acquisition and Disposal of Certain Rare Earth Materials

This section would require the Department of Defense to promulgate guidance on streamlined acquisition of items with rare earth materials and allows exceptions to the Joint Capabilities Integration and Development System Manual and Department of Defense Directive 5000.01. This section would require a report on such guidance and the efforts of the Secretary of Defense to create and maintain secure supply chains for these materials within the United States and covered foreign sources 180 days after the date of the enactment of this Act. This section also would provide authority for the disposal of tungsten ores and concentrates contained in the National Defense Stockpile and acquisition of other critical materials. This section would amend section 2533b of title 10, United States Code, by prohibiting acquisition of tantalum from non-allied foreign nations. This section would amend section 2533c(a)(2) of title 10, United States Code, by striking ``covered'' before ``material''.