HR-3438 : Still Just a Bill

The Military Industrial National Defense Supply Act of 2023, also known as the MINDS Act (H.R. 3438), aims to strengthen domestic sourcing in major defense acquisition programs. Key provisions include:

• Assessment of Domestic Content: Requires the Secretary of Defense to report to Congress within one year on the domestic source content of procurements related to major defense acquisition programs.
• Information Repository: Mandates the establishment of an information repository for the collection and analysis of data related to domestic source content for critical products. This repository will be used for continuous data analysis and program management.
• Enhanced Domestic Content Requirement: Increases the required percentage of domestic content in manufactured articles, materials, or supplies procured for major defense acquisition programs:
  • Exceeds 60% of the cost of the manufactured articles, materials, or supplies procured not later than the date of the enactment of this Act,
  • Exceeds 65% of the cost of the manufactured articles, materials, or supplies procured during the period beginning January 1, 2024, and ending December 31, 2028
  • Exceeds 75% of the cost of the manufactured articles, materials, or supplies procured on or after January 1, 2029
• Exclusion for Certain Materials: Excludes manufactured articles predominantly made of iron, steel, or a combination of both from the enhanced domestic content requirement.
• Fallback Threshold Rulemaking: Requires the Secretary of Defense to issue rules within 180 days to address situations where the domestic content requirement results in unreasonable costs or a lack of offers. These rules will cease to be effective on January 1, 2030.
• Applicability: Applies to contracts entered into on or after the date of enactment and does not apply to countries that are members of the national technology and industrial base.