STRENGTHENING OF DOMESTIC CAPABILITY AND ASSISTANCE FOR SMALL BUSINESSES.

SEC. 111. STRENGTHENING OF DOMESTIC CAPABILITY AND ASSISTANCE FOR SMALL BUSINESSES. Title I of the Defense Production Act of 1950 (50 U.S.C. App. 2071, et seq.) is amended by adding at the end the following new sections: “SEC. 107. STRENGTHENING DOMESTIC CAPABILITY. “(a) In General.— Utilizing the authority of title III of this Act or any other provision of law, the President may provide appropriate incentives to develop, maintain, modernize, and expand the productive capacities of domestic sources for critical components, critical technology items, and industrial resources essential for the execution of the national security strategy of the United States. “(b) Critical Components and Critical Technology Items.— “(1) Identification.— “(A) In general.— The President, acting through the Secretary of Defense, shall identify critical components and critical technology items for each item on the Critical Items List of the Commanders-in-Chief of the Unified and Specified Commands and other items within the inventory of weapon systems and defense equipment. “(B) Definition.— Any component identified as critical by a National Security Assessment conducted pursuant to section 113(i) of title 10, United States Code, or by a Presidential determination as a result of a petition filed under section 232 of the Trade Expansion Act of 1962 shall be designated as a critical component for purposes106 STAT. 4202 of this Act, unless the President determines that the designation is unwarranted. “(2) Maintenance of reliable sources of supply.— The President shall take appropriate actions to assure that critical components or critical technology items are available from reliable sources when needed to meet defense requirements during peacetime, graduated mobilization, and national emergency. “(3) Appropriate action.— For purposes of this subsection, appropriate action may include— “(A) restricting contract solicitations to reliable sources; “(B) restricting contract solicitations to domestic sources pursuant to— “(i) section 2304(b)(1)(B) or section 2304(c)(3) of title 10, United States Code; “(ii) section 303(b)(1)(B) or section 303(c)(3) of the Federal Property and Administrative Services Act of 1949; or “(iii) other statutory authority; “(C) stockpiling critical components; and “(D) developing substitutes for a critical component or a critical technology item.