Page:United States Statutes at Large Volume 102 Part 1.djvu/893

 PUBLIC LAW 100-370—JULY 19, 1988

102 STAT. 855

SEC. 3. CODIFICATION OF DEFENSE-RELATED BUY AMERICAN LAWS.

(a) CoNSOUDATiON AND CODIFICATION.—(1) Part IV of Subtitle A of title 10, United States Code, is amended by inserting after chapter 147 the following new chapter: "CHAPTER 148—BUY AMERICAN REQUIREMENTS "Sec. "2501. Limitation on use of funds: procurement of goods which are other than American goods. "2502. Miscellaneous procurement limitations. v:

"§ 2501. Limitation on use of funds: procurement of goods which 10 USC 2501. are other than American goods "(a) Funds appropriated to the Department of Defense may not be obligated under a contract for procurement of goods which are other than American goods (as defined in subsection (c)) unless adequate consideration is given to the following: "(1) The bids or proposals of firms located in labor surplus areas in the United States (as designated by the Department of Labor) which have offered to furnish American goods. "(2) The bids or proposals of small business firms in the United States which have offered to furnish American goods. "(3) The bids or proposals of all other firms in the United States which have offered to furnish American goods. "(4) The United States balance of payments. "(5) The cost of shipping goods which are other than American goods. "(6) Any duty, tariff, or surcharge which may enter into the cost of using goods which are other than American goods. "(h) Consideration of the matters referred to in paragraphs (1) through (6) of subsection (a) shall be given under regulations of the Secretary of Defense and subject to the determinations and exceptions contained in title III of the Act of March 3, 1933 (41 U.S.C. 10a, 10b), popularly known as the 'Buy American Act'. "(c) In this section, the term goods which are other than American goods' means— "(1) an end product that is not mined, produced, or manufactured in the United States; or "(2) an end product that is manufactured in the United States but which includes components mined, produced, or manufactured outside the United States the aggregate cost of which exceeds the aggregate cost of the components of such end product that are mined, produced, or manufactured in the United States.". (2) The tables of chapters at the beginning of subtitle A, and at the beginning of part IV of subtitle A, of such title are amended by inserting after the item relating to chapter 147 the following new item: "148. Buy American Requirements (b) TRANSFER OF SECTION.—(1)

2501".

Section 2400 of such title is transferred to the end of chapter 148 of such title (as added by subsection (a)), redesignated as section 2502, and amended in the second sentence of subsection (a) by striking out "this section" and inserting in lieu thereof "this subsection". (2) The table of sections at the beginning of chapter 141 of such title is amended by striking out the item relating to section 2400.

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