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United States defense industry opportunities in domestic and foreign markets.
(2) Some United States contractors and subcontractors may be adversely affected by such contractual arrangements.
(3) Many contracts which provide for or are subject to offset arrangements require, in connection with such arrangements, the transfer of United States technology to foreign firms.
(4) The use of such transferred technology by foreign firms in conjunction with foreign trade practices permitted under the trade policies of the countries of such firms can give_foreign firms a competitive advantage against United States firms in world markets for products using such technology.
(5) A purchase of defense equipment pursuant to an offset arrangement may increase the cost of the defense equipment to the purchasing country and may reduce the amount of defense equipment that a country may purchase.
(6) The exporting of defense equipment produced in the United States is important to maintain the defense industrial base of the United States, lower the unit cost of such equipment to the Department of Defense, and encourage the standardized utilization of United States equipment by the allies of the United States.
(b) AMENDMENT TO TITLE 10.-[Added section 2505 to title 10. [Such section 2505 was redesignated as section 2532 by section 4202(a) of Public Law 102-484.]]
(c) NEGOTIATIONS.-(1) The President shall enter into negotiations with foreign countries that have a policy of requiring an offset arrangement in connection with the purchase of defense equipment or supplies from the United States. The negotiations should be conducted with a view to achieving an agreement with the countries concerned that would limit the adverse effects that such arrangements have on the defense industrial base of each such country. Every effort shall be made to achieve such agreements within two years after September 29, 1988.
(2) In the negotiation or renegotiation of any memorandum of understanding between the United States and one or more foreign countries relating to the reciprocal procurement of defense equipment and supplies or research and development, the President shall make every effort to achieve an agreement with the country or countries concerned that would limit the adverse effects that offset arrangements have on the defense industrial base of the United States.
(d) REPORTS. (1) Not later than November 15, 1988, the President shall submit to Congress a comprehensive report on contractual offset arrangements required of United States firms for the supply of weapon systems or defense-related items to foreign countries or foreign firms. Such report shall include, at a minimum, the following:
(A) An analysis of the amount and type of contractual offsets required of United States firms by the governments of foreign countries or by foreign firms.
(B) An assessment of the benefits for and costs to United States manufacturers of defense products at all tiers that re
sult from requirements of foreign governments for contractual offset arrangements in the case of products procured from United States firms.
(C) An assessment of the benefits for and the costs to United States manufacturers of defense products at all tiers that would result from restriction of the ability of foreign governments or foreign firms to require contractual offsets in the case of defense products procured from United States firms.
(D) An assessment of the benefits and costs of a United States policy that requires reciprocal offsets in the procurement of defense products from those countries whose governments have a policy of requiring contractual offsets in the case of defense products procured from United States firms.
(E) An assessment of the impact that elimination of contractual offset requirements in international sales of defense products would have on the national security of the United States.
(F) Recommendations for a national policy with respect to contractual offset arrangements.
(G) A preliminary discussion of the actions referred to in paragraph (2).
(2) Not later than March 15, 1990, the President shall transmit to Congress a report containing a discussion of appropriate actions to be taken by the United States with respect to purchases from United States firms by a foreign country (or a firm of that country) when that country or firm requires an offset arrangement in connection with the purchase of defense equipment or supplies in favor of such country. The report shall include a discussion of the following possible actions:
(A) A requirement for an offset in favor of the United States or United States firms in any case in which the Department of Defense or any other department or agency of the United States purchases goods from such foreign country or a firm of such country.
(B) A demand for offset credits from such foreign country to be used, to the extent practicable, to meet offset obligations of United States firms to such foreign country or to a firm of such country.
(C) A reduction in assistance furnished such foreign country by the United States.
(D) A requirement for alternative equivalent advantages in the case of any such foreign country or a firm of such country if the United States does not purchase a sufficient volume of goods from such country or firm for a requirement described in subparagraph (A) to be effective.
(3) The President shall report to Congress at least once each year, for a period of 4 years, on the progress of the negotiations referred to in subsection (c). The first such report shall be submitted not later than one year after the date of the enactment of this Act [September 29, 1988].
(4) In this subsection, the terms "United States firm" and "foreign firm" have the same meanings as are provided in section 2505(d) of title 10, United States Code, as added by subsection (b).
SEC. 843. [44 U.S.C. 502 note] CONTRACT GOAL FOR DISADVANTAGED SMALL BUSINESSES IN PRINTING-RELATED SERVICES.
(a) TEST PROGRAM.-The Public Printer shall establish and carry out a test program for increasing its award of contracts to small and disadvantaged businesses for the printing, binding, and related services needed by the Department of Defense. The program shall have a goal of procuring in each such fiscal year from such businesses printing, binding, and relating services equivalent to not more than 5 percent of the value of the printing, binding, and related services which were procured in the preceding fiscal year by the Government Printing Office from non-Government sources for the Department of Defense. The Public Printer may use such procurement procedures as he considers necessary to facilitate achievement of such goal.
(b) COVERED ENTITIES.-In this section, the term "small and disadvantaged businesses" means the small business concerns, historically Black colleges and universities, and minority institutions described in section 2323(a)1 of title 10, United States Code.
(c) ENFORCEMENT.-Any person who, for the purpose of securing a contract under subsection (a), misrepresents the status of any concern or person as a small business concern referred to in subsection (b), is subject to the penalties set forth in section 2323(f) of title 10, United States Code.
(d) DEPARTMENT OF DEFENSE GOALS.-For the purpose of determining whether the Department of Defense has attained the goals set forth in section 2323 of title 10, United States Code, the Secretary of Defense may count any procurements by the Public Printer in the program established under subsection (a).
(e) DURATION OF TEST.-The test program established by subsection (a) shall not apply to solicitations issued on or after October 1, 2000.
1 Section 2323 of title 10, United States Code, was formerly section 1207 of Public Law 99661. Such section 1207 was codified into title 10 by section 801 of Public Law 102-484.
DEPARTMENT OF DEFENSE AUTHORIZATION ACT, 1986
(P.L. 99–145, approved Nov. 8, 1985)
TITLE IX-PROCUREMENT POLICY REFORM AND OTHER PROCUREMENT MATTERS
SEC. 901. [10 U.S.C. 2301 note] SHORT TITLE
This title may be cited as the "Defense Procurement Improvement Act of 1985".
PART A-PROGRAM MANAGEMENT MATTERS
SEC. 913. [10 U.S.C. 2301 note] MINIMUM PERCENTAGE OF COMPETITIVE PROCUREMENTS
(a) ANNUAL GOAL.-The Secretary of Defense shall establish for each fiscal year a goal for the percentage of defense procurements to be made during that year (expressed in total dollar value of contracts entered into) that are to be competitive procurements.
(b) DEFINITION.-For the purposes of this section, the term "competitive procurements" means procurements made by the Department of Defense through the use of competitive procedures, as defined in section 2304 of title 10, United States Code.
PART C-FALSE CLAIMS, DEBARMENT, BURDEN OF PROOF, AND RELATED MATTERS
SEC. 931. [18 U.S.C. 287 note] INCREASED PENALTIES FOR FALSE CLAIMS IN DEFENSE PROCUREMENT
(a) CRIMINAL FINES.-Notwithstanding sections 287 and 3623 of title 18, United States Code, the maximum fine that may be imposed under such section for making or presenting any claim upon or against the United States related to a contract with the Department of Defense, knowing such claim to be false, fictitious, or fraudulent, is $1,000,000.
(b) CIVIL PENALTIES.-Notwithstanding section 3729 of title 31, United States Code, the amount of the liability under that section in the case of a person who makes a false claim related to a contract with the Department of Defense shall be a civil penalty of $2,000, an amount equal to three times the amount of the damages the Government sustains because of the act of the person, and costs of the civil action.
(c) EFFECTIVE DATE.-Subsections (a) and (b) shall be applicable to claims made or presented on or after the date of the enactment of this Act [Nov. 8, 1985].
DEPARTMENT OF DEFENSE AUTHORIZATION ACT, 1985
(P.L. 98-525, approved Oct. 19, 1984)
TITLE XII-PROCUREMENT POLICY REFORM AND OTHER PROCUREMENT MATTERS
PART A SHORT TITLE AND CONGRESSIONAL FINDINGS
SEC. 1201. [10 U.S.C. 2301 note] This title may be cited as the "Defense Procurement Reform Act of 1984".
CONGRESSIONAL FINDINGS AND POLICY
SEC. 1202. [10 U.S.C. 2301 note] The Congress finds that recent disclosures of excessive payments by the Department of Defense for replenishment parts have undermined confidence by the public and Congress in the defense procurement system. The Secretary of Defense should make every effort to reform procurement practices relating to replenishment parts. Such efforts should, among other matters, be directed to the elimination of excessive pricing of replenishment spare parts and the recovery of unjustified payments. Specifically, the Secretary should
(1) direct that officials in the Department of Defense refuse to enter into contracts unless the proposed prices are fair and reasonable;
(2) continue and accelerate ongoing efforts to improve defense contracting procedures in order to encourage effective competition and assure fair and reasonable prices;
(3) direct that replenishment parts be acquired in economic order quantities and on a multiyear basis whenever feasible, practicable, and cost effective;
(4) direct that standard or commercial parts be used whenever such use is technically acceptable and cost effective; and
(5) vigorously continue reexamination of policies relating to acquisition, pricing, and management of replenishment parts and of technical data related to such parts.
PART E-TEMPORARY PROVISIONS, REPORTS, AND EFFECTIVE DATES
PLANS FOR MANAGEMENT OF TECHNICAL DATA AND COMPUTER CAPABILITY IMPROVEMENTS
SEC. 1252. [10 U.S.C. 2431 note] (a)(1) Not later than one year after the date of the enactment of this Act [October 19, 1984], the