(5) Any duty, tariff, or surcharge which may enter into the cost of using goods which are other than American goods. (6) A need to ensure that the Department of Defense has access to advanced, state-of-the-art commercial technology. (7) The need to protect the national technology and industrial base, to preserve and enhance the national technology employment base, and to provide for a defense mobilization base. (8) A need to ensure that application of different rules of origin for United States end items and foreign end items does not result in an award to a firm other than a firm providing a product produced in the United States. (9) Any need (A) to maintain the same source of supply for spare and replacement parts for an end item that qualifies as an American good; or (B) to maintain the same source of supply for spare and replacement parts in order not to impair integration of the military and commercial industrial base. (10) The national security interests of the United States. (b) In this section, the term "goods which are other than American goods" means (1) an end product that is not mined, produced, or manufactured in the United States; or (2) an end product that is manufactured in the United States but which includes components mined, produced, or manufactured outside the United States the aggregate cost of which exceeds the aggregate cost of the components of such end product that are mined, produced, or manufactured in the United States. (Added as § 2501 P.L. 100-370, 83(a)(1), July 19, 1988, 102 Stat. 855; redesignated $2506 P.L. 100-456, 8821(b)(1XA), Sept. 29, 1988, 102 Stat. 2014; redesignated $2533 P.L. 102-484, § 4202(a), Oct. 23, 1992, 106 Stat. 2659; amended P.L. 103-337, §812(a), (b)(1), Oct. 5, 1994, 108 Stat. 2815, 2816.) § 2534. Miscellaneous limitations on the procurement of goods other than United States goods 8 (a) LIMITATION ON CERTAIN PROCUREMENTS.-The Secretary of Defense may procure any of the following items only if the manufacturer of the item satisfies the requirements of subsection (b): 8 Section 832 of the National Defense Authorization Act for Fiscal Years 1992 and 1993 (P.L. 102-190, 105 Stat. 1446; 10 U.S.C. 113 note) provides: SEC. 832. REQUIREMENTS RELATING TO EUROPEAN MILITARY PROCUREMENT PRACTICES. (a) EUROPEAN PROCUREMENT PRACTICES.-The Secretary of Defense shall (1) compute the total value of American-made military goods and services procured each year by European governments or companies; (2) review defense procurement practices of European governments to determine what factors are considered in the selection of contractors and to determine whether American firms are discriminated against in the selection of contractors for purchases by such governments of military goods and services; and (3) establish a procedure for discussion with European governments about defense contract awards made by them that American firms believe were awarded unfairly. (b) DEFENSE TRADE AND COOPERATION WORKING GROUP.-The Secretary of Defense shall establish a defense trade and cooperation working group. The purpose of the group is to evaluate the impact of, and formulate United States positions on, European initiatives that affect United States defense trade, cooperation, and technology security. In carrying out the responsibilities of the working group, members of the group shall consult, as appropriate, with personnel in the Departments of State and Commerce and in the Office of the United States Trade Representative. (c) [omitted] (1) BUSES.-Multipassenger motor vehicles (buses). (2) CHEMICAL WEAPONS ANTIDOTE.-Chemical weapons antidote contained in automatic injectors (and components for such injectors). (3) AIR CIRCUIT BREAKERS.-Air circuit breakers for naval vessels. (4) VALVES AND MACHINE TOOLS.-Items in the following categories: (A) Powered and non-powered valves in Federal Supply Classes 4810 and 4820 used in piping for naval surface ships and submarines. (B) Machine tools in the Federal Supply Classes for metal-working machinery numbered 3405, 3408, 3410 through 3419, 3426, 3433, 3438, 3441 through 3443, 3445, 3446, 3448, 3449, 3460, and 3461. (5) BALL BEARINGS AND ROLLER BEARINGS.-Ball bearings and roller bearings, in accordance with subpart 225.71 of part 225 of the Defense Federal Acquisition Regulation Supplement, as in effect on October 23, 1992. (b) MANUFACTURER IN THE NATIONAL TECHNOLOGY AND INDUSTRIAL BASE. (1) GENERAL REQUIREMENT.-A manufacturer meets the requirements of this subsection if the manufacturer is part of the national technology and industrial base. (2) MANUFACTURERS OF CHEMICAL WEAPONS ANTIDOTE.—In the case of a procurement of chemical weapons antidote referred to in subsection (a)(2), a manufacturer meets the requirements of this subsection only if the manufacturer (A) meets the requirement set forth in paragraph (1); (B) is an existing producer under the industrial preparedness program at the time the contract is awarded; (C) has received all required regulatory approvals; and (D) when the contract for the procurement is awarded, has in existence in the national technology and industrial base the plant, equipment, and personnel necessary to perform the contract. (c) APPLICABILITY TO CERTAIN ITEMS.— (1) AIR CIRCUIT BREAKERS.-Subsection (a) does not apply to a procurement of spares or repair parts needed to support air circuit breakers produced or manufactured outside the United States. (2) VALVES AND MACHINE TOOLS. (A) Contracts to which subsection (a) applies include the following contracts for the procurement of items described in paragraph (4) of such subsection: (i) A contract for procurement of such an item for use in property under the control of the Department of Defense, including any Government-owned, contractor-operated facility. (ii) A contract that is entered into by a contractor on behalf of the Department of Defense for the purpose of pro viding such an item to another contractor as Governmentfurnished equipment. (B) In any case in which a contract for items described in subsection (a)(4) includes the procurement of more than one Federal Supply Class of machine tools or machine tools and accessories, each supply class shall be evaluated separately for purposes of determining whether the limitation in subsection (a) applies. (C) Subsection (a)(4) and this paragraph shall cease to be effective on October 1, 1996. (3) BALL BEARINGS AND ROLLER BEARINGS.-Subsection (a)(5) and this paragraph shall cease to be effective on October 1, 1995. (d) WAIVER AUTHORITY.-The Secretary of Defense may waive the limitation in subsection (a) with respect to the procurement of an item listed in that subsection if the Secretary determines that any of the following apply: (1) Application of the limitation would cause unreasonable costs or delays to be incurred. (2) United States producers of the item would not be jeopardized by competition from a foreign country, and that country does not discriminate against defense items produced in the United States to a greater degree than the United States discriminates against defense items produced in that country. (3) Application of the limitation would impede cooperative programs entered into between the Department of Defense and a foreign country, and that country does not discriminate against defense items produced in the United States to a greater degree than the United States discriminates against defense items produced in that country. (4) Satisfactory quality items manufactured by an entity that is part of the national technology and industrial base (aз defined in section 2491(1) of this title) are not available. (5) Application of the limitation would result in the existence of only one source for the item that is an entity that is part of the national technology and industrial base (as defined in section 2491(1) of this title). (6) The procurement is for an amount less than the simplified acquisition threshold and simplified purchase procedures are being used. (7) Application of the limitation is not in the national security interests of the United States. (8) Application of the limitation would adversely affect a United States company. (e) SONOBUOYS. (1) LIMITATION.-The Secretary of Defense may not procure a sonobuoy manufactured in a foreign country if United States firms that manufacture sonobuoys are not permitted to compete on an equal basis with foreign manufacturing firms for the sale of sonobuoys in that foreign country. (2) WAIVER AUTHORITY.-The Secretary may waive the limitation in paragraph (1) with respect to a particular procurement of sonobuoys if the Secretary determines that such pro curement is in the national security interests of the United States. (3) DEFINITION.-In this subsection, the term "United States firm" has the meaning given such term in section 2532(d)(1) of this title. (f) PRINCIPLE OF CONSTRUCTION WITH FUTURE LAWS.-A provision of law may not be construed as modifying or superseding the provisions of this section, or as requiring funds to be limited, or made available, by the Secretary of Defense to a particular domestic source by contract, unless that provision of law (1) specifically refers to this section; (2) specifically states that such provision of law modifies or supersedes the provisions of this section; and (3) specifically identifies the particular domestic source involved and states that the contract to be awarded pursuant to such provision of law is being awarded in contravention of this section. (g) INAPPLICABILITY TO CONTRACTS UNDER SIMPLIFIED ACQUISITION THRESHOLD.-This section does not apply to a contract or subcontract for an amount that does not exceed the simplified acquisition threshold. (Added as §2400 P.L. 97-295, § 1(29)(A), Oct. 12, 1982, 96 Stat. 1294, and amended P.L. 100180, §§ 124(a), (b)(1), 824(a), Dec. 4, 1987, 101 Stat. 1042, 1134; transferred, redesignated § 2502, and amended P.L. 100-370, § 3(b)(1), July 1988, 102 Stat. 855; redesignated § 2507 and amended P.L. 100-456, §§ 821(b)(1)(Á), 822, Sept. 29, 1988, 102 Stat. 2014, 2017; amended P.L. 101-510, §§ 835(a), 1421, Nov. 5, 1990, 104 Stat. 1614, 1682; P.L. 102-190, §§ 834, 835, Dec. 5, 1991, 105 Stat. 1447-1448; redesignated § 2534 and amended P.L. 102-484, §§ 831, 833(a), 1052(33), 4202(a), 4271(b)(4), Oct. 23, 1992, 106 Stat. 2460, 2461, 2501, 2659, 2696; P.L. 103-160, § 904(d), Nov. 30, 1993, 107 Stat. 1728; P.L. 103-337, §814, Oct. 5, 1994, 108 Stat. 2817; P.L. 103-355, §4102(i), Oct. 13, 1994, 108 Stat. 3341.) § 2535. Defense Industrial Reserve (a) DECLARATION OF PURPOSE AND POLICY.-It is the intent of Congress (1) to provide a comprehensive and continuous program for the future safety and for the defense of the United States by providing adequate measures whereby an essential nucleus of Government-owned industrial plants and an industrial reserve of machine tools and other industrial manufacturing equipment may be assured for immediate use to supply the needs of the Armed Forces in time of national emergency or in anticipation thereof; (2) that such Government-owned plants and such reserve shall not exceed in number or kind the minimum requirements for immediate use in time of national emergency, and that any such items which shall become excess to such requirements shall be disposed of as expeditiously as possible; (3) that to the maximum extent practicable, reliance will be placed upon private industry for support of defense production; and (4) that machine tools and other industrial manufacturing equipment may be held in plant equipment packages or in a general reserve to maintain a high state of readiness for production of critical items of defense materiel, to provide production capacity not available in private industry for defense materiel, or to assist private industry in time of national disaster. (b) POWERS AND DUTIES OF THE SECRETARY OF DEFENSE.—(1) To execute the policy set forth in this section, the Secretary is authorized and directed to (A) determine which industrial plants and installations (including machine tools and other industrial manufacturing equipment) should become a part of the defense industrial reserve; (B) designate what excess industrial property shall be disposed of; (C) establish general policies and provide for the transportation, handling, care, storage, protection, maintenance, repair, rebuilding, utilization, recording, leasing and security of such property; (D) direct the transfer without reimbursement of such property to other Government agencies with the consent of such agencies; (E) direct the leasing of any of such property to designated lessees; (F) authorize the disposition in accordance with existing law of any of such property when in the opinion of the Secretary such property is no longer needed by the Department of (G) notwithstanding title II of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 481 et seq.) and any other provision of law, authorize the transfer to a nonprofit educational institution or training school, on a nonreimbursable basis, of any such property already in the possession of such institution or school whenever the program proposed by such institution or school for the use of such property is in the public interest. (2)(A) The Secretary of a military department to which equipment or other property is transferred from the Defense Industrial Reserve shall reimburse appropriations available for the purposes of the Defense Industrial Reserve for the full cost (including direct and indirect costs) of (i) storage of such property; (ii) repair and maintenance of such property; and (B) The Secretary of Defense shall prescribe regulations establishing general policies and fee schedules for reimbursements under subparagraph (A). (c) DEFINITIONS.-In this section: (1) The term "Secretary" means Secretary of Defense. (2) The term "Defense Industrial Reserve" means (A) a general reserve of industrial manufacturing equipment, including machine tools, selected by the Secretary of Defense for retention for national defense or for other emergency use; (B) those industrial plants and installations held by and under the control of the Department of Defense in active or inactive status, including Government-owned/Government-operated plants and installations and Government-owned/contractor-operated plants and installations which are retained for use in their entirety, or in part, for production of military weapons systems, munitions, components, or supplies; (C) those industrial plants and installations under the control of the Secretary which are not required for the immediate need of any department or |