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

Subtitle A—Acquisition Policy and Management.

P. L. 116-

House Conference Report   116-617

``(a) In General.--Any covered offeror seeking to be awarded a shipbuilding construction contract as part of a major defense acquisition program with funds from the Shipbuilding and Conversion, Navy account shall disclose along with the offer and any subsequent revisions of the offer (including the final proposal revision offer) if any part of the planned contract performance will or is expected to include foreign government subsidized performance, foreign financing, foreign financial guarantees, or foreign tax concessions.

``(b) Requirements.--A disclosure required under subsection (a) shall be made in a form prescribed by the Secretary of the Navy and shall include a specific description of the extent to which the planned contract performance will include, with or without contingencies, any foreign government subsidized performance, foreign financing, foreign financial guarantees, or foreign tax concessions.

``(c) Congressional Notification.--Not later than 5 days
after awarding a contract described under subsection (a), the
Secretary of the Navy shall notify the congressional defense
committees and summarize the disclosure provided under such
subsection.

``(d) Definitions.--In this section:

``(1) Covered offeror.--The term `covered offeror' means any offeror that requires or may reasonably be expected to require, during the period of performance on a shipbuilding construction contract described in subsection (a), a method to mitigate or negate foreign ownership under section 2004.34(f)(6) of title 32, Code of Federal Regulations.

``(2) Foreign government subsidized performance.--The term `foreign government subsidized performance' means any financial support, materiel, services, or guarantees of support, services, supply, performance, or intellectual property concessions, that may be provided to or for the covered offeror or the customer of the offeror by a foreign government or entity effectively owned or controlled by a foreign government, which may have the effect of supplementing, supplying, servicing, or reducing the cost or price of an end item, or supporting, financing in whole or in part, or guaranteeing contract performance by the offeror.

``(3) Major defense acquisition program.--The term `major defense acquisition program' has the meaning given the term in section 2430 of this title.''.

(b) Clerical Amendment.--The table of sections at the beginning of chapter 137 of title 10, United States Code, is amended by inserting after the item relating to section 2339b the following new item:

``2339c. Disclosures for offerors for certain shipbuilding major defense acquisition program contracts.''.

The Senate amendment contained a provision (sec. 864) that would require disclosures for certain shipbuilding major defense acquisition program offers.

The House bill contained no similar provision.

The House recedes with a clarifying amendment.

Senate Committee Report 116-236 to Accompanying S. 4049

Disclosures for certain shipbuilding major defense acquisition program offers (sec. 864)

The committee recommends a provision that would require disclosures for certain shipbuilding major defense acquisition program offers.

The disclosures would require a description of the extent to which the offeror's planned contract performance will include foreign government subsidized performance, financing,
financial guarantees, or tax concessions.

The committee's intent is to increase transparency in shipbuilding major defense acquisition programs.