Diversity and Inclusion Transparency in the Defense Industrial Base Act
This bill provides that the Department of Defense (DOD) must require each contractor who is awarded a major contract to submit a report on diversity and inclusion by the last day of each full fiscal year during the period of the contract. In relation to a major defense acquisition program, a major contract means each of the six largest prime, associate, or government-furnished equipment contracts that is in excess of $40 million and that is not a firm, fixed-price contract.
DOD must annually submit to Congress a report summarizing the diversity and inclusion reports. Such reports must be made publicly available on a DOD website.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7444 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 7444
To amend title 10, United States Code, to provide for diversity and
inclusion reporting requirements for certain Department of Defense
contractors, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 7, 2022
Mr. Brown of Maryland introduced the following bill; which was referred
to the Committee on Armed Services
_______________________________________________________________________
A BILL
To amend title 10, United States Code, to provide for diversity and
inclusion reporting requirements for certain Department of Defense
contractors, 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 ``Diversity and Inclusion Transparency
in the Defense Industrial Base Act''.
SEC. 2. DIVERSITY AND INCLUSION REPORTING REQUIREMENTS FOR COVERED
CONTRACTORS.
(a) In General.--Subchapter V of chapter 325 of title 10, United
States Code, is amended by inserting after section 4892 the following
new section:
``Sec. 4893. Diversity and inclusion reporting requirements for covered
contractors
``(a) Covered Contractor Reports.--
``(1) In general.--The Secretary of Defense shall require
each covered contractor awarded a major contract to submit to
the Secretary of Defense by the last day of each full fiscal
year that occurs during the period of performance of any major
contract a report on diversity and inclusion.
``(2) Elements.--Each report under paragraph (1) shall
include, for the fiscal year covered by the report--
``(A) a description of each major contract with a
period of performance during the fiscal year covered by
the report, including the period of performance,
expected total value, and value to date of each major
contract;
``(B) the total value of payments received under
all major contracts of each covered contractor during
such fiscal year;
``(C) the total number of participants in the board
of directors of each covered contractor, nominees for
the board of directors of the covered contractor, and
the senior leaders of the covered contractor,
disaggregated by demographic classifications;
``(D) with respect to employees of each covered
contractor--
``(i) the total number of such employees;
and
``(ii) the number of such employees
(expressed as a numeral and as a percentage of
the total number), identified by membership in
demographic classification and major
occupational group;
``(E) the value of first-tier subcontracts under
each major contract entered into during such fiscal
year;
``(F) with respect to employees of each covered
subcontractor--
``(i) the total number of such employees;
``(ii) the number of such employees
(expressed as a numeral and as a percentage of
the total number), identified by membership in
demographic classification and major
occupational group;
``(G) whether the board of directors of the covered
contractor has, as of the date on which the covered
contractor submits a report under this section, adopted
any policy, plan, or strategy to promote racial,
ethnic, and gender diversity among the members of the
board of directors of the covered contractor, nominees
for the board of directors of the covered contractor,
or the senior leaders of the covered contractor; and
``(H) a description of participation by the
contractor in diversity programs, to include hours
spent, funds expended in support of, and the number of
unique relationships established by each such diversity
program.
``(b) Annual Summary Report.--
``(1) Report required.--Not later than 60 days after the
first day of each fiscal year, the Secretary shall submit to
the congressional defense committees a report summarizing the
reports submitted pursuant to subsection (a).
``(2) Elements.--Each report under paragraph (1) shall
include--
``(A) an index of the reports submitted pursuant to
subsection (a);
``(B) a compilation of the data described in such
subsection, disaggregated as described in such
subsection;
``(C) an aggregation of the data provided in such
reports; and
``(D) a narrative that analyzes the information
disclosed in such reports and identifies any year-to-
year trends in such information.
``(c) Public Availability.--Each report required under this
subsection shall be posted on a single publicly available website of
the Department of Defense and made available in a machine-readable
format that is downloadable, searchable, and sortable.
``(d) Definitions.--In this section:
``(1) Covered contractor.--The term `covered contractor'
means a contractor awarded a major contract.
``(2) Covered subcontractor.--The term `covered
subcontractor' means a subcontractor performing a subcontract
that is one of the 10 highest aggregate value subcontracts
under a major contract.
``(3) Demographic classifications.--The term `demographic
classifications' means classifications by race, gender, veteran
status, or ethnicity.
``(4) Diversity program.--The term `diversity program'
means--
``(A) a program conducted under section 3904 of
this title;
``(B) a mentor-protege relationship established
under section 831 of the National Defense Authorization
Act for Fiscal Year 1991;
``(C) a program conducted under section 2192a of
this title; or
``(D) any other program designated by the Secretary
of Defense as designed to increase the diversity of the
workforce of the defense industrial base.
``(5) Major contract.--The term `major contract' has the
meaning given the term in section 4351 of this title.
``(6) Major occupational group.--The term `major
occupational group' means a major occupational group as defined
by the Bureau of Labor Statistics.
``(7) Senior leader.--The term `senior leader' means--
``(A) the president of a covered contractor;
``(B) any vice president in charge of a principal
business unit, division, or function of a covered
contractor;
``(C) any other officer of a covered contractor who
performs a policy-making function; or
``(D) an individual responsible for the direct or
indirect management of more than 200 individuals.''.
(b) Clerical Amendment.--The table of sections for subchapter V of
chapter 325 of title 10, United States Code, is amended by adding after
the item related to section 4892 the following:
``4893. Diversity and inclusion reporting requirements for covered
contractors.''.
(c) Effective Date and Applicability.--The amendments made by this
section shall take effect on July 1, 2022, and shall apply with respect
to contracts entered into on or after July 1, 2022.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Armed Services.
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