ADDITION OF CERTAIN ITEMS TO DOMESTIC SOURCE LIMITATION.

SEC. 806. ADDITION OF CERTAIN ITEMS TO DOMESTIC SOURCE LIMITATION. (a) Limitation.— (1) Paragraph (3) of section 2534(a) of title 10, United States Code, is amended to read as follows: “(3) Components for naval vessels.— (A) The following components: “(i) Air circuit breakers. “(ii) Welded shipboard anchor and mooring chain with a diameter of four inches or less. “(iii) Vessel propellers with a diameter of six feet or more. “(B) The following components of vessels, to the extent they are unique to marine applications: gyrocompasses, electronic navigation chart systems, steering controls, pumps, propulsion and machinery control systems, and totally enclosed lifeboats.”. (2) Subsection (b) of section 2534 of such title is amended by adding at the end the following: “(3) Manufacturer of vessel propellers.— In the case of a procurement of vessel propellers referred to in subsection (a)(3)(A)(ii), the manufacturer of the propellers meets the requirements of this subsection only if— “(A) the manufacturer meets the requirements set forth in paragraph (1); and 110 STAT. 391 “(B) all castings incorporated into such propellers are poured and finished in the United States.”. (3) Paragraph (1) of section 2534(c) of such title is amended to read as follows: “(1) Components for naval vessels.— Subsection (a) does not apply to a procurement of spare or repair parts needed to support components for naval vessels produced or manufactured outside the United States.”. (4) Section 2534 of such title is amended by adding at the end the following new subsection: “(h) Implementation of Naval Vessel Component Limitation.— In implementing subsection (a)(3)(B), the Secretary of Defense— “(1) may not use contract clauses or certifications; and “(2) shall use management and oversight techniques that achieve the objective of the subsection without imposing a significant management burden on the Government or the contractor involved.”. (5) Subsection (a)(3XB) of section 2534 of title 10, United States Code, as amended by paragraph (1), shall apply only to contracts entered into after March 31, 1996. (b) Extension of Limitation Relating to Ball Bearings and Roller Bearings.— Section 2534(c)(3) of such title is amended by striking out “October 1, 1995” and inserting in lieu thereof “October 1, 2000”. (c) Termination of Vessel Propeller Limitation.— Section 2534(c) of such title is arrfended by adding at the end the following new paragraph: “(4) Vessel propellers.— Subsection (a)(3)(A)(iii) and this paragraph shall cease to be effective on the date occurring two years after the date of the enactment of the National Defense Authorization Act for Fiscal Year 1996.”. (d) Inapplicability of Simplified Acquisition Limitation to Contracts for Ball Bearings and Roller Bearings.— Section 2534(g) of title 10, United States Code, is amended— (1) by inserting “(1)” before ‘“This section”; and (2) by adding at the end the following new paragraph: “(2) Paragraph (1) does not apply to contracts for items described in subsection (a)(5) (relating to ball bearings and roller bearings), notwithstanding section 33 of the Office of Federal Procurement Policy Act (41 U.S.C. 429).”.