S-2487 : Still Just a Bill

S. 2487, a bill introduced by Ms. Baldwin, aims to enhance domestic content requirements for Navy shipbuilding programs. Key provisions include:

• Enhanced Domestic Content Requirement: Mandates that manufactured articles, materials, or supplies procured for Navy shipbuilding be substantially made from U.S.-mined, produced, or manufactured articles, materials, or supplies. The required percentage of domestic content increases over time:
• 65% from January 1, 2026, to December 31, 2027.
• 75% from January 1, 2028, to December 31, 2032.
• 100% on or after January 1, 2033.
• Research and Development: Extends the domestic content requirements to research, development, test, and evaluation activities related to shipbuilding.
• Exclusion: Exempts manufactured articles primarily composed of iron, steel, or a combination thereof from these requirements.
• Waiver: Allows the Secretary of Defense to request waivers to expand sourcing to members of the national technical industrial base, subject to approval by the Director of the Made in America Office, under specific conditions such as increased costs, unavailability of domestic items, or inconsistency with public interest.
• Rulemaking: Requires the Secretary of Defense, in coordination with the Director of the Made in America Office, to issue rules regarding the treatment of foreign end products with at least 55% U.S. components when domestic sourcing results in unreasonable costs or a lack of offers.
• Applicability: Applies to contracts entered into on or after January 1, 2026.
• Reporting: Mandates an annual report from the Secretary of Defense to Congress on country of origin tracking and reporting for manufactured content in Navy shipbuilding programs, including primary contracts and subcontracts, ensuring accurate reporting of the location of manufacture.