Fair Defense Competition Act

Fair Defense Competition Act - Directs the Secretary of Defense (DOD), in awarding a contract for any major defense acquisition program and conducting the cost or price evaluation of any proposal for that contract, to take into account any final panel report that concludes that an illegal subsidy (inconsistent with the Agreement on Subsidies and Countervailing Measures) has been provided with respect to: (1) any merchandise or major component of such program; or (2) the development of any merchandise or major component thereof.

Requires the Secretary, if the illegal subsidy has not been withdrawn, to increase the cost or price of the proposal by the amount of the subsidy.

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5298 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 5298

To require the Secretary of Defense to take illegal subsidization into 
    account in evaluating proposals for contracts for major defense 
             acquisition programs, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 13, 2010

  Mr. Tiahrt (for himself, Mr. Larsen of Washington, Mr. Inslee, Mr. 
Blunt, Mr. Smith of Texas, Mr. Moran of Kansas, Mrs. Emerson, Mr. Clay, 
   Mr. Luetkemeyer, Mr. Carnahan, Ms. Jenkins, Mrs. Napolitano, Mr. 
 Manzullo, Mr. Foster, Mr. McMahon, Mr. Loebsack, Mr. Wilson of South 
   Carolina, Mr. Brown of South Carolina, Mr. Davis of Illinois, Mr. 
     Calvert, Ms. DeLauro, Mr. Baca, Mr. Costello, Mr. Hastings of 
   Washington, Mr. Gerlach, Mr. Rothman of New Jersey, Mr. Rush, Mr. 
   Lipinski, and Mr. Hare) introduced the following bill; which was 
              referred to the Committee on Armed Services

_______________________________________________________________________

                                 A BILL


 
To require the Secretary of Defense to take illegal subsidization into 
    account in evaluating proposals for contracts for major defense 
             acquisition programs, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fair Defense Competition Act''.

SEC. 2. ACCOUNTING FOR ILLEGAL SUBSIDIZATION IN EVALUATION OF PROPOSALS 
              FOR CONTRACTS FOR MAJOR DEFENSE ACQUISITION PROGRAMS.

    (a) Requirement.--
            (1) In general.--In awarding a contract for any major 
        defense acquisition program, the Secretary of Defense shall, in 
        conducting the cost or price evaluation of any proposal for 
        that contract, take into account any final panel report 
        described in paragraph (2) and take the action described in 
        paragraph (3).
            (2) Final panel report described.--A final panel report 
        described in this paragraph is the final report of a dispute 
        settlement panel of the World Trade Organization, submitted to 
        the parties to a dispute pursuant to article 4.6 or 7.4 of the 
        Agreement on Subsidies and Countervailing Measures, that either 
        a prohibited or actionable subsidy has been provided with 
        respect to any merchandise or major component thereof, or the 
        development of any merchandise or major component thereof, if 
        that merchandise or component is part of a proposal described 
        in paragraph (1).
            (3) Action described.--If the subsidy found to be 
        prohibited or actionable in the final panel report has not been 
        withdrawn pursuant to article 4.7 or 7.8 of the Agreement on 
        Subsidies and Countervailing Measures, the action described in 
        this paragraph is, in conducting the cost or price evaluation 
        of a proposal, the Secretary shall increase the cost or price 
        of the proposal by the amount of the subsidy found to be 
        prohibited or actionable in the final panel report described in 
        paragraph (2), as calculated jointly by the Secretary of 
        Commerce and the United States Trade Representative after 
        notification is made by the Secretary of Defense for the need 
        for such a calculation.
    (b) Definitions.--In this section:
            (1) Agreement on subsidies and countervailing measures.--
        The term ``Agreement on Subsidies and Countervailing Measures'' 
        means the Agreement on Subsidies and Countervailing Measures 
        described in section 101(d)(12) of the Uruguay Round Agreements 
        Act (19 U.S.C. 3511(d)(12)).
            (2) Cost or price evaluation.--The term ``cost or price 
        evaluation'' means an evaluation conducted by a source 
        selection authority pursuant to subpart 15.305(a)(1) of the 
        Federal Acquisition Regulation.
            (3) Major defense acquisition program.--The term ``major 
        defense acquisition program'' has the meaning given that term 
        in section 2430 of title 10, United States Code.
            (4) Prohibited or actionable subsidy.--The term 
        ``prohibited or actionable subsidy'' means a subsidy that is 
        inconsistent with the Agreement on Subsidies and Countervailing 
        Measures because the subsidy is a prohibited or actionable 
        subsidy under the Agreement.
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