Domestic preference in the procurement of professional services

(a) Establishment of preference Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall revise the Department of Defense Supplement to the Federal Acquisition Regulation to ensure that with respect to contracts for the procurement of professional services, a contracting officer— (1) shall establish a preference for offerors that are United States companies, to the maximum extent practicable and consistent with the interests of national security; and (2) may elect not to apply such preference if the contracting officer provides documentation, including a rationale, for not applying the preference, which may include evidence— (A) that the Secretary of Defense prioritized the urgency of the procurement or delivery of professional services over such preference; (B) that no United States company is capable of fulfilling the requirements of the contract in a timely or cost-effective manner; or (C) of other circumstances determined by the Secretary. (b) Relationship to other preferences The preference established under subsection (a) shall not take priority over any preference for procurement from the procurement list established pursuant to section 8503 of title 41, United States Code, the Federal Prison Industries catalog described under section 4124(d) of title 18, United States Code, or under the Small Business Act (15 U.S.C. 631 et seq.). (c) Reports Beginning on March 1, 2028, and annually thereafter through March 1, 2031, the Secretary of Defense shall submit to the congressional defense committees a report that includes— (1) a description of the effectiveness of the preference described in subsection (a) in improving acquisition outcomes in the procurement of professional services; (2) the effect of such preference on the number of domestic entities providing professional services to the Department of Defense; and (3) a summary of instances during the calendar year preceding the date of submission of the report where such preference was not applied, along with rationale for not applying such preference. (d) Definitions In this section: (1) The term foreign entity has the meaning given in section 225.772–1 of the Department of Defense Supplement to the Federal Acquisition Regulation (or a successor regulation). (2) The term United States company — (A) means a business entity that— (i) is organized under the laws of a State, the District of Columbia, or a territory or possession of the United States; (ii) has its principal place of business located in the United States, the District of Columbia, or a territory or possession of the United States; and (iii) is not directly or indirectly owned and controlled by a foreign entity; and (B) includes a joint venture for which a business entity described in subparagraph (A) holds an ownership interest greater than or equal to 50 percent. (3) The term professional services includes one or more of the following services: (A) Engineering. (B) Architecture. (C) Design. (D) Environmental consulting. (E) Financial consulting. (F) Program management. (G) Legal.