HR-4075 : Still Just a Bill

The H.R. 4075, also known as the "Military Industrial National Defense Supply Act of 2023" or the "MINDS Act," aims to enhance domestic content requirements for major defense acquisition programs. Key provisions include:

• Assessment of Domestic Content: Requires the Secretary of Defense to submit a report to congressional defense committees assessing the domestic source content of procurements related to major defense acquisition programs within one year of enactment.
• Information Repository: Mandates the establishment of an information repository for the collection and analysis of data related to domestic source content for critical products.
• Enhanced Domestic Content Requirement: Increases the required percentage of domestic content in manufactured articles, materials, or supplies procured in connection with major defense acquisition programs:
  • Exceeds 60% of cost if supplied not later than the date of the enactment of this Act
  • Exceeds 65% of cost if supplied between January 1, 2024, and December 31, 2028
  • Exceeds 75% of cost if supplied on or after January 1, 2029
• Exclusion: Excludes manufactured articles consisting wholly or predominantly of iron, steel, or a combination thereof from the enhanced domestic content requirement.
• Fallback Threshold: Requires the Secretary of Defense to issue rules to determine the treatment of the lowest price offered for a foreign end product with 55% or more domestic content if application of the enhanced 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, but does not apply to articles manufactured in countries with a reciprocal defense procurement memorandum of understanding with the United States.