Combat tracked vehicle drivetrain reciprocity and supply chain security

(a) Limitation On or after the date of the enactment of this section, the Secretary of Defense may not procure, directly or through a prime contractor, original equipment manufacturer, lead systems integrator, or subcontractor at any tier, a drivetrain system for use in an advanced combat tracked vehicle of the Department of the Army currently in development if such system is— (1) manufactured in a foreign country; or (2) manufactured in the United States by a manufacturer that is directly or indirectly owned or controlled by a parent entity headquartered in a foreign country, unless United States firms that manufacture such drivetrain systems are permitted to compete on substantially equal terms for the sale of such systems in— (A) that foreign country; or (B) the foreign country in which the parent entity is headquartered. (b) Waiver authority The Secretary may waive the limitation in subsection (a) if the Secretary— (1) determines that procurement of a drivetrain system under such subsection is in the national security interests of the United States; (2) determines that the benefits outweigh any risks to long-term sustainment or supply-chain continuity that may result from such procurement; and (3) submits a written justification for issuing such waiver to the congressional defense committees not later than 120 days before the date on which the Secretary procures a drivetrain system that, but for the waiver, would otherwise be prohibited under subsection (a). (c) Rule of construction Nothing in this section shall be construed to prohibit the Department of Defense from awarding or maintaining a contract with an original equipment manufacturer, prime contractor, or lead systems integrator for an advanced combat tracked vehicle. Nothing in this subsection shall be construed to authorize the procurement of a drivetrain system that does not comply with subsection (a) and is not covered by a waiver under subsection (b). (d) Compliance flexibility In implementing the requirements of this section with respect to an advanced combat tracked vehicle, the Secretary of Defense may use such program management and acquisition tools as the Secretary determines are appropriate, including supplier substitution, second sourcing, directed sourcing, licensing arrangements, teaming arrangements, domestic production arrangements, and technical-data or sustainment-access arrangements, to enable the continued use of an original equipment manufacturer, prime contractor, or lead systems integrator with respect to such vehicle while ensuring that the drivetrain system procured for use in such vehicle complies with subsection (a) or is covered by a waiver issued under subsection (b). (e) Applicability The prohibition in subsection (a) shall apply with respect to contracts or other agreements to procure a drivetrain system entered into on or after the date of the enactment of this section. (f) Definitions In this section: (1) The term advanced combat tracked vehicle means a combat tracked vehicle of the Department of the Army that has entered, but not yet completed, the engineering and manufacturing development phase of the defense acquisition process. (2) The term drivetrain system means a transmission, cross-drive assembly, final drive, drivetrain module, hybrid-electric drive module, or other mechanical or electro-mechanical system that transfers power from a propulsion source to the tracks of a combat tracked vehicle, but does not include engines. (3) The term headquartered, with respect to an entity, means— (A) such entity is organized under the laws of a country; or (B) the principal place of business of such entity is located in a country. (4) The term lead systems integrator has the meaning given in section 802 of the National Defense Authorization Act for Fiscal Year 2008 (10 U.S.C. 4292 note). (5) The term long-term sustainment or supply-chain continuity risk includes resilience against foreseeable geopolitical or trade-policy volatility over the expected service life of the drivetrain system. (6) The term United States firm has the meaning given in section 4852(d)(1) of title 10, United States Code.