Defense Production Act Amendments of 1991

Defense Production Act Amendments of 1991 - Title I: Amendments to the Defense Production Act of 1950 - Part A: Declaration of Policy - Revises the declaration of policy under the Defense Production Act of 1950 to state that such Act affords the President an array of authorities to shape defense preparedness programs and to take appropriate steps to maintain and enhance the defense industrial and technological base (the defense base).

States that domestic energy supplies used in support of the defense base should be augmented to the maximum extent possible through reliance on renewable fuels and energy conservation measures.

Provides that the geographic dispersal of U.S. industrial facilities should seek to include economically depressed areas, rural counties experiencing job loss, and Indian reservations with severe health and employment problems.

Requires executive agencies and departments responsible for defense acquisition to continuously assess the capability of the defense base to satisfy peacetime requirements as well as increased mobilization production requirements. States that plans and programs to carry out the policy stated above shall duly consider the promotion of efficiency and competition.

Expresses certain congressional findings disapproving the growing U.S. dependence on foreign sources for critical components and materials used to manufacture major weapons systems for our national defense. States that it is imperative for the United States to preserve and strengthen its industrial and technological capabilities.

Part B: Amendments to Title I of the Defense Production Act - Directs the President to: (1) identify critical components essential for the execution of the national security strategy of the United States in peacetime and during graduated mobilization; and (2) take appropriate actions to protect against unreliable sources for critical components. Requires critical components to be identified for all items on the CINC Critical Items List. Requires the Department of Defense to take into account all components identified as critical by a national security assessment or presidential determination under the Trade Expansion Act of 1962.

Directs the President, in providing assistance to authorized defense contractors and subcontractors, to provide a strong preference for small businesses: (1) as defined by the Administrator of the Small Business Administration (SBA); and (2) located in areas of high unemployment or in areas that demonstrate a continuing pattern of economic decline. Directs the President, in considering applicants for the purchase or lease of advance manufacturing equipment, to provide a strong preference for smaller subcontractors that have obtained the recommendation of: (1) an agency of the Department of Defense (DOD); or (2) the Secretary of Commerce or the Administrator of the SBA and have arranged to obtain management assistance services in connection with the installation of the equipment.

States that nothing in this Act shall be interpreted to: (1) provide for the imposition of wage or price controls without prior authorization by a joint resolution of the Congress; or (2) require action or compliance by any private person to assist in the production of, or other involvement in, chemical or biological warfare capabilities unless authorized by the President.

Part C: Amendments to Title III of the Defense Production Act - Expands the existing loan guarantee authority of the President to include providing such authority for the procurement of industrial resources or a critical technology item for the national defense. Increases from $25,000,000 to $50,000,000 the maximum loan guarantee amount that may be made before a specific authorization by law is needed. Makes the same changes for loans made to private business enterprises under such Act.

Authorizes the President to provide for purchases or purchase commitments for an industrial resource or a critical technology item for Government use or resale. (Currently, such purchases or purchase commitments are permitted for the purchase of metals, minerals, and other material.) Prohibits the President from executing a contract for purchases or purchase commitments unless: (1) the industrial resource or critical technology is essential to the national defense; (2) U.S. industry cannot reasonably provide such resource or technology in a timely manner; or (3) U.S. national defense demand and foreseeable nondefense demand for the resource or technology is equal to or greater than the output of domestic industrial capability determined to be available for national defense. Increases from $25,000,000 to $50,000,000 the maximum industrial resource shortfall authorized to be reached by the President before a specific authorization by law is required. Waives such requirements: (1) during periods of war or national emergency; or (2) upon a determination by the President that a specific guarantee is necessary to avert an industrial resource or critical technology shortfall that would severely impair national defense capability. Waives such requirements with respect to loan guarantees and loans to private business enterprises during periods of national emergency declared by the Congress or the President. Extends the term for purchases or purchase commitments from September 30, 1995, to a date not more than ten years from the date such purchase, commitment, or sale was initially made.

Authorizes the President to make provision for the development of substitutes for the production readiness of critical technology products and processes when he determines that it will aid the national defense.

Establishes in the Treasury the Defense Production Act Fund to carry out the purposes of title III of such Act. Establishes a maximum Fund balance. Directs the Secretary of the Treasury to designate a Fund manager to manage such Fund and report to the Congress annually on Fund activities. Provides for the determination of liabilities against the Fund. Transfers a specified amount to such Fund from the National Defense Stockpile Transaction Fund. Requires any individuals involved in the operation or oversight of the Fund to report annually to the Secretaries of Defense and Commerce, disclosing personal income information as well as possible conflict-of-interests information.

States that it shall be the policy of the Congress that: (1) no agency of the United States shall encourage or commit U.S. firms to any offset arrangement in connection with the sale of defense goods or services to foreign governments; (2) Government funds shall not be used to finance offsets in security assistance transactions except under specified procedures; (3) nothing in this Act shall prevent U.S. agencies from fulfilling obligations incurred through international agreements entered into prior to enactment of this Act; (4) the decision whether to engage in offsets and in negotiating and implementing offset arrangements lies with the companies involved; and (5) the President may approve exceptions to such policy after receiving the recommendation of the National Security Council. Directs the Secretary of Defense to lead an interagency team to consult with foreign nations on limiting the adverse effects of offsets on defense procurement and to report to specified congressional committees.

Requires the Secretary of Commerce (currently, the President) to prepare a report on the impact of offsets on the defense preparedness, industrial competitiveness, employment, and trade of the United States, as required under the Defense Production Act of 1950. Provides that if a U.S. firm enters into a contract for the sale of a weapon system or defense-related item to a foreign country or foreign firm and such contract is subject to an offset agreement exceeding $5,000,000, such firm shall furnish to a designated defense official information concerning such sale. Provides for the protection of confidential information provided to such defense official. Outlines information to be included in the reports prepared by the Department of Commerce. Requires findings and recommendations contained in such reports to be considered by representatives of the United States during bilateral and multilateral negotiations aimed at minimizing the adverse effects of offsets.

States as a purpose of the Defense Production Act of 1950 the creation of production capacity that will remain economically viable after guarantees and other assistance provided under such Act have expired.

Amends such Act to direct the President to take necessary action to ensure that all materials manufactured with assistance provided under such Act: (1) are tested for qualification for use in the production of existing and future weapons systems and development programs; and (2) are used and incorporated into the production of such systems and programs.

Part D: Amendments to Title VII of the Defense Production Act - Requires small business concerns, including those owned by women and minorities, to be given the maximum practicable opportunity to participate as contractors and subcontractors in all programs to maintain and strengthen the nation's defense base under the Defense Production Act of 1950. Requires representatives of such concerns to participate in such advisory committees as may be established under such Act, and requires such concerns to be given access to appropriate information to the maximum extent practicable. Requires the President to allocate a fair share of material authorized under the Act to such concerns, especially to new concerns or individual firms facing undue hardship.

Requires the President to provide for the establishment of an information system on the domestic defense industrial base which includes a systematic and continuously-updated procedure to collect and analyze information necessary to evaluate: (1) the adequacy of domestic industrial capacity and capability in critical components, technologies, and technology items essential to national security; (2) dependence on foreign sources for industrial parts, components, and technologies essential to defense production; and (3) the reliability of foreign source supply of critical components and technologies. Requires the current defense information network to be incorporated into such information system. Provides sources of, and uses for, such information as collected and analyzed, including review and production-base analysis purposes. Directs the President to require the Secretary of each military department to incorporate in such system a complete analysis of the production base of two major weapons systems of such department. Directs the President to provide for the establishment of, and report to the Congress on, a strategic plan for developing a cost-effective, comprehensive information system capable of identifying vulnerability in critical components, technologies, and technology items. Directs the President to require the Secretaries of Defense and of Commerce, as well as the heads of other appropriate Federal agencies, to consult with one another, provide information assistance and access, and coordinate standards, definitions, and specifications for information on defense production between Federal departments and agencies.

Requires the President, upon establishment of the information system, to convene a task force to establish guidelines and procedures to ensure that all Federal departments and agencies which acquire information with respect to the domestic defense industrial base are fully participating in the system. Requires the President to report on the domestic adequacy or inadequacy of critical components, technologies, and technology items needed for the defense industrial base. Authorizes appropriations.

Exempts any regulation or order issued under the Defense Production Act of 1950 from the Administrative Procedure Act.

Part E: Technical Amendments - Increases from $1,000 to $10,000 the possible fine for the willful violation of certain information disclosure rules. Revises provisions concerning certain employment appointment procedures in connection with appointments made by the President in order to carry out the provisions of the Defense Production Act of 1950.

Part F: Repealers and Conforming Amendments - Repeals specified provisions of such Act which: (1) provide for the effective date of a synthetic fuel action sent to the Congress by the President; (2) provide for the accrual of interest on remaining funds authorized and appropriated to carry out such Act; (3) establish the Joint Committee on Defense Production; (4) disqualify certain persons for employment under such Act; (5) require a feasibility study of the application of uniform cost accounting standards under defense procurement contracts; and (6) establish the National Commission on Supplies and Shortages.

Part G: Reauthorization of Selected Provisions - Authorizes appropriations for FY 1992 through 1994 to carry out the Defense Production Act of 1950. Terminates all authority under the Act as of the end of FY 1994.

Requires the Secretary of the Treasury to report to the Congress on whether: (1) there is credible evidence of a coordinated strategy on the part of foreign countries or companies to acquire or control U.S. companies or industries involved in R&D or production of critical technologies; and (2) there are industrial espionage activities directed by foreign governments against U.S. companies in order to obtain commercial secrets related to critical technologies. Requires an unclassified version of such quadrennial report to be made available to the public.

Title II: Additional Provisions to Improve Industrial Preparedness - Directs that the Code of Federal Regulations be amended to specify the circumstances under which a contractor who has engaged in an unfair trade practice may be found to lack such business integrity or honesty that it seriously and directly affects the responsibility of the contractor to perform any contract awarded by the Government or any subcontract under such contract.

Establishes the Congressional Commission on the Evaluation of the Defense Industrial Base Policy to develop criteria for maintaining the strength of the domestic defense industrial base in support of the national security strategy. Requires the Commission to evaluate the feasibility of integrating defense research, development, production, acquisition, and other relevant contracting activities with similar activities in the commercial sector and to evaluate the degree to which such integration is being implemented by each Federal agency or department. Requires the Commission to make an interim and final report to the Congress and the President on its findings, together with recommendations. Terminates the Commission on September 30, 1994. Authorizes appropriations for FY 1992 through 1994.

Title III: Amendment to Related Laws - Amends the Geothermal Energy Research, Development, and Demonstration Act of 1974 to extend through FY 1993 provisions of such Act relating to loan guaranties and interest assistance.

Title IV: Effective Date - Declares that this Act shall take effect on September 30, 1991.

Title V: Buy American Provisions - Directs the Secretary of Defense to ensure that the requirements of the Buy American Act of 1933 are applied to all procurements made under this Act.

Provides prohibitions against any person determined to have intentionally affixed a "Made in America" label or inscription to any product sold or shipped to the United States that is not made in the United States.