[House Report 117-135]
[From the U.S. Government Publishing Office]
117th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 117-135
======================================================================
HOMELAND PROCUREMENT REFORM ACT
_______
October 5, 2021.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Thompson of Mississippi, from the Committee on Homeland Security,
submitted the following
R E P O R T
[To accompany H.R. 2915]
The Committee on Homeland Security, to whom was referred
the bill (H.R. 2915) to amend the Homeland Security Act of 2002
regarding the procurement of certain items related to national
security interests for Department of Homeland Security
frontline operational components, and for other purposes,
having considered the same, reports favorably thereon with an
amendment and recommends that the bill as amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 4
Background and Need for Legislation.............................. 4
Hearings......................................................... 6
Committee Consideration.......................................... 6
Committee Votes.................................................. 6
Committee Oversight Findings..................................... 6
C.B.O. Estimate, New Budget Authority, Entitlement Authority, and
Tax Expenditures............................................... 6
Federal Mandates Statement....................................... 7
Duplicative Federal Programs..................................... 7
Statement of General Performance Goals and Objectives............ 7
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits....................................................... 7
Advisory Committee Statement..................................... 7
Applicability to Legislative Branch.............................. 7
Section-by-Section Analysis of the Legislation................... 7
Changes in Existing Law Made by the Bill, as Reported............ 8
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Homeland Procurement Reform Act'' or
the ``HOPR Act''.
SEC. 2. REQUIREMENTS TO BUY CERTAIN ITEMS RELATED TO NATIONAL SECURITY
INTERESTS ACCORDING TO CERTAIN CRITERIA.
(a) In General.--Subtitle D of title VIII of the Homeland Security
Act of 2002 (6 U.S.C. 391 et seq.) is amended by adding at the end the
following:
``SEC. 836. REQUIREMENTS TO BUY CERTAIN ITEMS RELATED TO NATIONAL
SECURITY INTERESTS.
``(a) Definitions.--In this section:
``(1) Covered item.--The term `covered item' means any of the
following:
``(A) Footwear provided as part of a uniform.
``(B) Uniforms.
``(C) Holsters and tactical pouches.
``(D) Patches, insignia, and embellishments.
``(E) Chemical, biological, radiological, and nuclear
protective gear.
``(F) Body armor components intended to provide
ballistic protection for an individual, consisting of 1
or more of the following:
``(i) Soft ballistic panels.
``(ii) Hard ballistic plates.
``(iii) Concealed armor carriers worn under a
uniform.
``(iv) External armor carriers worn over a
uniform.
``(G) Any other item of clothing or protective
equipment as determined appropriate by the Secretary.
``(2) Frontline operational component.-- The term `frontline
operational component' means any of the following organizations
of the Department:
``(A) U.S. Customs and Border Protection.
``(B) U.S. Immigration and Customs Enforcement.
``(C) The United States Secret Service.
``(D) The Transportation Security Administration.
``(E) The Coast Guard.
``(F) The Federal Protective Service.
``(G) The Federal Emergency Management Agency.
``(H) The Federal Law Enforcement Training Centers.
``(I) The Cybersecurity and Infrastructure Security
Agency.
``(b) Requirements.--
``(1) In general.--The Secretary shall ensure that any
procurement of a covered item for a frontline operational
component meets the following criteria:
``(A) To the maximum extent possible, not less than
one-third of funds obligated in a specific fiscal year
for the procurement of such covered items shall be
covered items that are manufactured or supplied in the
United States by entities that qualify as small
business concerns, as such term is described under
section 3 of the Small Business Act (15 U.S.C. 632).
``(B) Each contractor with respect to the procurement
of such a covered item, including the end-item
manufacturer of such a covered item--
``(i) is an entity registered with the System
for Award Management (or successor system)
administered by the General Services
Administration; and
``(ii) is in compliance with ISO 9001:2015 of
the International Organization for
Standardization (or successor standard) or a
standard determined appropriate by the
Secretary to ensure the quality of products and
adherence to applicable statutory and
regulatory requirements.
``(C) Each supplier of such a covered item with an
insignia (such as any patch, badge, or emblem) and each
supplier of such an insignia, if such covered item with
such insignia or such insignia, as the case may be, is
not produced, applied, or assembled in the United
States, shall--
``(i) store such covered item with such
insignia or such insignia in a locked area;
``(ii) report any pilferage or theft of such
covered item with such insignia or such
insignia occurring at any stage before delivery
of such covered item with such insignia or such
insignia; and
``(iii) destroy any such defective or
unusable covered item with insignia or insignia
in a manner established by the Secretary, and
maintain records, for three years after the
creation of such records, of such destruction
that include the date of such destruction, a
description of the covered item with insignia
or insignia destroyed, the quantity of the
covered item with insignia or insignia
destroyed, and the method of destruction.
``(2) Waiver.--
``(A) In general.--In the case of a national
emergency declared by the President under the National
Emergencies Act (50 U.S.C. 1601 et seq.) or a major
disaster declared by the President under section 401 of
the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5170), the Secretary may
waive a requirement in subparagraph (A), (B) or (C) of
paragraph (1) if the Secretary determines there is an
insufficient supply of a covered item that meets the
requirement.
``(B) Notice.--Not later than 60 days after the date
on which the Secretary determines a waiver under
subparagraph (A) is necessary, the Secretary shall
provide to the Committee on Homeland Security and
Governmental Affairs and the Committee on
Appropriations of the Senate and the Committee on
Homeland Security, the Committee on Oversight and
Reform, and the Committee on Appropriations of the
House of Representatives notice of such determination,
which shall include--
``(i) identification of the national
emergency or major disaster declared by the
President;
``(ii) identification of the covered item for
which the Secretary intends to issue the
waiver; and
``(iii) a description of the demand for the
covered item and corresponding lack of supply
from contractors able to meet the criteria
described in subparagraph (B) or (C) of
paragraph (1).
``(c) Pricing.--The Secretary shall ensure that covered items are
purchased at a fair and reasonable price, consistent with the
procedures and guidelines specified in the Federal Acquisition
Regulation.
``(d) Report.--Not later than 1 year after the date of enactment of
this section and annually thereafter, the Secretary shall provide to
the Committee on Homeland Security, the Committee on Oversight and
Reform, and the Committee on Appropriations of the House of
Representatives, and the Committee on Homeland Security and
Governmental Affairs and the Committee on Appropriations of the Senate
a briefing on instances in which vendors have failed to meet deadlines
for delivery of covered items and corrective actions taken by the
Department in response to such instances.
``(e) Effective Date.--This section applies with respect to a
contract entered into by the Department or any frontline operational
component on or after the date that is 180 days after the date of
enactment of this section.''.
(b) Study.--
(1) In general.--Not later than 18 months after the date of
enactment of this Act, the Secretary of Homeland Security shall
submit to the Committee on Homeland Security and Governmental
Affairs of the Senate and the Committee on Homeland Security of
the House of Representatives a study of the adequacy of uniform
allowances provided to employees of frontline operational
components (as defined in section 836 of the Homeland Security
Act of 2002, as added by subsection (a)).
(2) Requirements.--The study conducted under paragraph (1)
shall--
(A) be informed by a Department-wide survey of
employees from across the Department of Homeland
Security who receive uniform allowances that seeks to
ascertain what, if any, improvements could be made to
the current uniform allowances and what, if any,
impacts current allowances have had on employee morale
and retention;
(B) assess the adequacy of the most recent increase
made to the uniform allowance for first year employees;
and
(C) consider increasing by 50 percent, at minimum,
the annual allowance for all other employees.
(c) Additional Report.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Homeland Security shall
provide a report with recommendations on how the Department of
Homeland Security could procure additional items from domestic
sources and bolster the domestic supply chain for items related
to national security to--
(A) the Committee on Homeland Security and
Governmental Affairs and the Committee on
Appropriations of the Senate; and
(B) the Committee on Homeland Security, the Committee
on Oversight and Reform, and the Committee on
Appropriations of the House of Representatives.
(2) Contents.--The report required under paragraph (1) shall
include the following:
(A) A review of the compliance of the Department of
Homeland Security with the requirements under section
604 of title VI of division A of the American Recovery
and Reinvestment Act of 2009 (6 U.S.C. 453b) to buy
certain items related to national security interests
from sources in the United States.
(B) An assessment of the capacity of the Department
of Homeland Security to procure the following items
from domestic sources:
(i) Personal protective equipment and other
items necessary to respond to a pandemic such
as that caused by COVID-19.
(ii) Helmets that provide ballistic
protection and other head protection and
components.
(iii) Rain gear, cold weather gear, and other
environmental and flame resistant clothing.
(d) Clerical Amendment.--The table of contents in section 1(b) of the
Homeland Security Act of 2002 (Public Law 107-296; 116 Stat. 2135) is
amended by inserting after the item relating to section 835 the
following:
``Sec. 836. Requirements to buy certain items related to national
security interests.''.
Purpose and Summary
H.R. 2915, the ``Homeland Procurement Reform Act'' or the
``HOPR Act,'' would reform the way the Department of Homeland
Security (DHS) procures uniforms and related gear (e.g., body
armor) for its operational components. It seeks to ensure that
the Department issues high-quality uniforms and gear to
frontline personnel by encouraging the procurement of
domestically sourced items. Under the Act, the Secretary of
Homeland Security is required to ensure, to the maximum extent
possible, that at least one-third of the funds obligated for
the procurement of uniforms and gear be used to purchase goods
manufactured or supplied by entities that qualify as a U.S.
small business. Moreover, the bill requires DHS to study
whether uniform allowances provided to personnel are adequate
and to also report on opportunities to procure additional
items, such as personal protective equipment (PPE), from
domestic sources. Lastly, the bill strengthens supply chain
security by mandating locked storage, reports of stolen goods,
and the destruction of defective or unusable items bearing
official DHS insignia not manufactured in the United States.
Background and Need for Legislation
Supporting the needs of DHS's frontline employees is a
priority of this Committee. It is imperative that these
employees are equipped with quality uniforms and related safety
gear at a reasonable price. In 2017, the Government
Accountability Office found that less than half of the
Department's uniforms were manufactured in the United States
with 58 percent of the funds allocated for the current DHS
uniform contract being spent on imported items.\1\ While DHS
has incorporated restrictions in its procurement policies and
practices pursuant to the Kissell Amendment (6 U.S.C.
Sec. 453b)--which intended to restrict Federal agencies to
procuring uniforms and other textiles from U.S. manufactures--
exceptions for international trade agreements have caused this
provision to have little effect.
---------------------------------------------------------------------------
\1\U.S. Government Accountability Office, Government Procurement:
Effect of Restriction on DHS's Purchasing of Foreign Textiles Is
Limited, (Nov. 21, 2017), available at https://www.gao.gov/products/
gao-18-116.
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H.R. 2915 seeks to enable DHS to acquire quality, American-
made products for DHS frontline personnel by ensuring that at
least 33 percent of funding spent on uniforms and related gear
is provided to American small businesses and new controls are
placed around uniforms and gear with DHS insignia not produced
in the U.S. Since the intent of H.R. 2915 is to support
domestic manufacturing, the Committee expects DHS to prioritize
purchasing uniforms and related gear from American small
businesses that manufacture, produce, or assemble goods. The
Committee expects DHS to only purchase items from American
small businesses that serve as a pass through to supply
foreign-manufactured goods when domestic manufacturing does not
meet all the criteria identified in the bill. The Committee
will carry out ongoing oversight of the implementation of this
Act and, to that end, would seek reporting within 60 days of
DHS awarding a contract, pursuant to this Act, for covered
items procured for a covered component that are supplied by a
U.S. small business but manufactured by a foreign manufacturer
together with any market research conducted by the Department
within the previous 180 days confirming that the items to be
procured are unavailable in the quality or quantity, or at a
fair and reasonable price, from any U.S. manufacturer and/or
small business.
The Committee also seeks to address concerns from uniformed
DHS personnel regarding the delivery of uniform items and the
adequacy of uniform allowances. Regarding delivery, the
Committee has been told that basic items such as duty shirts,
belts, and socks are not always delivered in a timely fashion,
forcing personnel to go without. Regarding the uniform
allowance, the National Border Patrol Council and the
Department have shared with the Committee that about 94 percent
of Border Patrol Agents exhaust their annual uniform allowance
as their uniforms are often subject to intense wear and tear in
the field.
The HOPR Act gives attention to questions about delivery
issues and the adequacy of uniform allowances by directing the
Secretary to (1) brief Congress annually on instances in which
vendors have failed to meet deadlines for delivery of DHS
uniform items and the corrective actions taken by the
Department in response to such instances, and (2) study the
adequacy of uniform allowances provided to Department frontline
personnel to determine what improvements can be made to current
stipends to limit what law enforcement personnel spend out-of-
pocket. When briefing Congress about delivery issues, the
Department shall sufficiently detail the reasons for the
vendor's failure to meet deadlines and the extent to which the
items are manufactured in the U.S.
Additionally, given the Department's critical mission, DHS
employees have worked on the frontlines throughout the COVID-19
pandemic. The Committee learned that DHS's operational
components did not consistently provide frontline workers with
adequate PPE or access to testing. Limited domestic production
and high global demand for PPE, such as N-95 masks and gloves,
led to persistent shortages for these critical supplies
nationwide. As of July 2, 2021, more than 25,000 DHS employees
had tested positive for COVID-19 and 45 had passed away.
To further bolster the domestic supply chain for other
national security items, the HOPR Act directs the Secretary to
report to Congress on the Department's compliance with the
Kissell Amendment and assess DHS's capacity to procure other
safety gear for frontline operators from domestic sources. This
includes PPE and other items necessary to respond to a
pandemic, such as that caused by COVID-19. While not included
in the list of items for which the Department is expected to
spend at least one-third of funding with American small
businesses, DHS shall endeavor to purchase PPE and other
specified safety gear for frontline operators from such
domestic manufacturers to the maximum extent possible.
Hearings
For the purposes of clause 3(c)(6) of rule XIII of the
Rules of the House of Representatives, the following hearings
were used to develop H.R. 2915:
The Committee did not hold a legislative hearing on H.R.
2915 in the 117th Congress. However, the legislation was
informed by a hearing held in the 116th Congress where
frontline employees' access to PPE and testing during the
COVID-19 pandemic was discussed. On June 16, 2020, the
Subcommittee on Oversight, Management, and Accountability held
a hearing entitled, ``Business as Usual? Assessing How DHS Can
Resume Operations Safely.'' The Subcommittee received testimony
from Dr. Everett Kelley, National President, American
Federation of Government Employees, AFL-CIO; Mr. Anthony M.
Reardon, National President, National Treasury Employees Union;
and Mr. Brandon Judd, National President, National Border
Patrol Council.
Committee Consideration
The Committee met on July 28, 2021, a quorum being present,
to consider H.R. 2915 and ordered the measure to be favorably
reported to the House, with amendment, by voice vote.
Committee Votes
Clause 3(b) of rule XIII requires the Committee to list the
recorded votes on the motion to report legislation and
amendments thereto.
No recorded votes were requested during consideration of
H.R. 2915.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII, the
Committee advises that the findings and recommendations of the
Committee, based on oversight activities under clause 2(b)(1)
of rule X, are incorporated in the descriptive portions of this
report.
Congressional Budget Office Estimate, New Budget Authority, Entitlement
Authority, and Tax Expenditures
With respect to the requirements of clause 3(c)(2) of rule
XIII and section 308(a) of the Congressional Budget Act of
1974, and with respect to the requirements of clause 3(c)(3) of
rule XIII and section 402 of the Congressional Budget Act of
1974, the Committee has requested but not received from the
Director of the Congressional Budget Office a statement as to
whether this bill contains any new budget authority, spending
authority, credit authority, or an increase or decrease in
revenues or tax expenditures.
Federal Mandates Statement
An estimate of Federal mandates prepared by the Director of
the Congressional Budget Office pursuant to section 423 of the
Unfunded Mandates Reform Act was not made available to the
Committee in time for the filing of this report. The Chairman
of the Committee shall cause such estimate to be printed in the
Congressional Record upon its receipt by the Committee.
Duplicative Federal Programs
Pursuant to clause 3(c) of rule XIII, the Committee finds
that H.R. 2915 does not contain any provision that establishes
or reauthorizes a program known to be duplicative of another
Federal program.
Statement of General Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII, the objective of
H.R. 2915 is to reform how DHS procures uniforms and related
gear for its components to ensure that high-quality, American-
made uniforms and gear are issued to Department frontline
personnel.
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits
In compliance with rule XXI, this bill, as reported,
contains no congressional earmarks, limited tax benefits, or
limited tariff benefits as defined in clause 9(d), 9(e), or
9(f) of rule XXI.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to Legislative Branch
The Committee finds that H.R. 2915 does not relate to the
terms and conditions of employment or access to public services
or accommodations within the meaning of section 102(b)(3) of
the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
Section 1. Short Title.
This section states that the Act may be cited as the
``Homeland Procurement Reform Act'' or the ``HOPR Act''.
Sec. 2. Requirements to Buy Certain Items Related to
National Security Interests According to Certain Criteria.
Subsection 2(a) amends subtitle D of title VIII of the
Homeland Security Act of 2002 to add a new section that
requires the Secretary to ensure that any procurement of
covered items for a frontline operational component meet the
following criteria: (1) to the maximum extent possible, at
least one-third of the funds obligated for the procurement of
uniforms and related gear be used to purchase goods
manufactured or supplied by entities that qualify as a U.S.
small business; (2) each contractor, with respect to the
procurement of covered items, is registered in the System for
Award Management (or successor system) and is in compliance
with quality control standards deemed appropriate by the
Secretary of Homeland Security; and (3) each supplier of
covered items bearing DHS insignia that are not produced,
applied, or assembled within the U.S. secures such items in
locked storage, reports any theft of such items, and ensures
the destruction of defective or unusable items in a manner
established by the Secretary.
In the event the President declares a national emergency or
major disaster, the Secretary may waive the requirements if the
Secretary determines there is insufficient supply of covered
items to meet the requirements. If the Secretary determines a
waiver is necessary, the Secretary shall provide a notice to
Congress, not later than 60 days after making the
determination, that includes: (1) identification of the
national emergency or major disaster declared by the President;
(2) identification of the covered item for which the Secretary
intends to issue the waiver; and (3) a description of the
demand for the item and corresponding lack of supply from
contractors to meet the requirements.
This subsection also requires the Secretary to ensure that
uniform items and related gear are purchased at fair and
reasonable prices. Additionally, the Secretary is required to
brief Congress no later than 1 year after enactment of the
section, and annually thereafter, on instances in which vendors
have failed to meet deadlines for delivery of covered items and
corrective actions taken by the Department in response to such
instances. Subsection 2(a) further clarifies that the
requirements in this section apply to contracts entered into by
the Department or any of its frontline operational components
on or after a date that is 180 days after the enactment of the
section. Lastly, this subsection defines the terms ``Department
frontline operational component'' and ``covered items.''
Subsection 2(b) directs the Secretary to submit to Congress
a study of the adequacy of uniform allowances provided to
frontline personnel not later than 18 months after the
enactment of the Act. The study shall: (1) be informed by a
Department-wide survey of employees who receive uniform
allowances to determine what improvements can be made to
current uniform allowances and what impact current allowances
have had on employee morale and retention; (2) assess the
adequacy of the most recent increase to the allowance for
first-year employees; and (3) consider increasing by at least
50 percent the annual allowance for all other employees.
Subsection 2(c) directs the Secretary to submit to Congress
a report with recommendations on how the Department could
procure additional items from domestic sources and bolster the
domestic supply chain for items related to national security
not later than 180 days after the enactment of the Act. The
report shall include: (1) a review of the Department's
compliance with the requirements outlined in the Kissell
Amendment (6 U.S.C. Sec. 453b); and (2) an assessment of the
capacity of the Department to procure other specified items
from domestic sources, such as PPE, helmets that provide
ballistic protection, and rain gear, among other things.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italics and existing law in which no change is
proposed is shown in roman):
HOMELAND SECURITY ACT OF 2002
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Homeland
Security Act of 2002''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
* * * * * * *
TITLE VIII--COORDINATION WITH NON-FEDERAL ENTITIES; INSPECTOR GENERAL;
UNITED STATES SECRET SERVICE; COAST GUARD; GENERAL PROVISIONS
* * * * * * *
Subtitle D--Acquisitions
* * * * * * *
Sec. 836. Requirements to buy certain items related to national security
interests.
* * * * * * *
TITLE VIII--COORDINATION WITH NON-FEDERAL ENTITIES; INSPECTOR GENERAL;
UNITED STATES SECRET SERVICE; COAST GUARD; GENERAL PROVISIONS
* * * * * * *
Subtitle D--Acquisitions
* * * * * * *
SEC. 836. REQUIREMENTS TO BUY CERTAIN ITEMS RELATED TO NATIONAL
SECURITY INTERESTS.
(a) Definitions.--In this section:
(1) Covered item.--The term ``covered item'' means
any of the following:
(A) Footwear provided as part of a uniform.
(B) Uniforms.
(C) Holsters and tactical pouches.
(D) Patches, insignia, and embellishments.
(E) Chemical, biological, radiological, and
nuclear protective gear.
(F) Body armor components intended to
provide ballistic protection for an individual,
consisting of 1 or more of the following:
(i) Soft ballistic panels.
(ii) Hard ballistic plates.
(iii) Concealed armor carriers worn
under a uniform.
(iv) External armor carriers worn
over a uniform.
(G) Any other item of clothing or
protective equipment as determined appropriate
by the Secretary.
(2) Frontline operational component.-- The term
``frontline operational component'' means any of the
following organizations of the Department:
(A) U.S. Customs and Border Protection.
(B) U.S. Immigration and Customs
Enforcement.
(C) The United States Secret Service.
(D) The Transportation Security
Administration.
(E) The Coast Guard.
(F) The Federal Protective Service.
(G) The Federal Emergency Management
Agency.
(H) The Federal Law Enforcement Training
Centers.
(I) The Cybersecurity and Infrastructure
Security Agency.
(b) Requirements.--
(1) In general.--The Secretary shall ensure that
any procurement of a covered item for a frontline
operational component meets the following criteria:
(A) To the maximum extent possible, not
less than one-third of funds obligated in a
specific fiscal year for the procurement of
such covered items shall be covered items that
are manufactured or supplied in the United
States by entities that qualify as small
business concerns, as such term is described
under section 3 of the Small Business Act (15
U.S.C. 632).
(B) Each contractor with respect to the
procurement of such a covered item, including
the end-item manufacturer of such a covered
item--
(i) is an entity registered with
the System for Award Management (or
successor system) administered by the
General Services Administration; and
(ii) is in compliance with ISO
9001:2015 of the International
Organization for Standardization (or
successor standard) or a standard
determined appropriate by the Secretary
to ensure the quality of products and
adherence to applicable statutory and
regulatory requirements.
(C) Each supplier of such a covered item
with an insignia (such as any patch, badge, or
emblem) and each supplier of such an insignia,
if such covered item with such insignia or such
insignia, as the case may be, is not produced,
applied, or assembled in the United States,
shall--
(i) store such covered item with
such insignia or such insignia in a
locked area;
(ii) report any pilferage or theft
of such covered item with such insignia
or such insignia occurring at any stage
before delivery of such covered item
with such insignia or such insignia;
and
(iii) destroy any such defective or
unusable covered item with insignia or
insignia in a manner established by the
Secretary, and maintain records, for
three years after the creation of such
records, of such destruction that
include the date of such destruction, a
description of the covered item with
insignia or insignia destroyed, the
quantity of the covered item with
insignia or insignia destroyed, and the
method of destruction.
(2) Waiver.--
(A) In general.--In the case of a national
emergency declared by the President under the
National Emergencies Act (50 U.S.C. 1601 et
seq.) or a major disaster declared by the
President under section 401 of the Robert T.
Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5170), the Secretary
may waive a requirement in subparagraph (A),
(B) or (C) of paragraph (1) if the Secretary
determines there is an insufficient supply of a
covered item that meets the requirement.
(B) Notice.--Not later than 60 days after
the date on which the Secretary determines a
waiver under subparagraph (A) is necessary, the
Secretary shall provide to the Committee on
Homeland Security and Governmental Affairs and
the Committee on Appropriations of the Senate
and the Committee on Homeland Security, the
Committee on Oversight and Reform, and the
Committee on Appropriations of the House of
Representatives notice of such determination,
which shall include--
(i) identification of the national
emergency or major disaster declared by
the President;
(ii) identification of the covered
item for which the Secretary intends to
issue the waiver; and
(iii) a description of the demand
for the covered item and corresponding
lack of supply from contractors able to
meet the criteria described in
subparagraph (B) or (C) of paragraph
(1).
(c) Pricing.--The Secretary shall ensure that covered items
are purchased at a fair and reasonable price, consistent with
the procedures and guidelines specified in the Federal
Acquisition Regulation.
(d) Report.--Not later than 1 year after the date of
enactment of this section and annually thereafter, the
Secretary shall provide to the Committee on Homeland Security,
the Committee on Oversight and Reform, and the Committee on
Appropriations of the House of Representatives, and the
Committee on Homeland Security and Governmental Affairs and the
Committee on Appropriations of the Senate a briefing on
instances in which vendors have failed to meet deadlines for
delivery of covered items and corrective actions taken by the
Department in response to such instances.
(e) Effective Date.--This section applies with respect to a
contract entered into by the Department or any frontline
operational component on or after the date that is 180 days
after the date of enactment of this section.
* * * * * * *
[all]