§4811. National security strategy for national technology and industrial base
(a)
(1) Supplying, equipping, and supporting the force structure of the armed forces that is necessary to achieve-
(A) the objectives set forth in the national security strategy report submitted to Congress by the President pursuant to section 108 of the National Security Act of 1947 (50 U.S.C. 3043);
(B) the policy guidance of the Secretary of Defense provided pursuant to section 113(g) of this title; and
(C) the future-years defense program submitted to Congress by the Secretary of Defense pursuant to section 221 of this title.
(2) Sustaining production, maintenance, repair, logistics, and other activities in support of military operations of various durations and intensity.
(3) Maintaining advanced research and development activities to provide the armed forces with systems capable of ensuring technological superiority over potential adversaries.
(4) Reconstituting within a reasonable period the capability to develop, produce, and support supplies and equipment, including technologically advanced systems, in sufficient quantities to prepare fully for a war, national emergency, or mobilization of the armed forces before the commencement of that war, national emergency, or mobilization.
(5) Providing for the development, manufacture, and supply of items and technologies critical to the production and sustainment of advanced military weapon systems within the national technology and industrial base.
(6) Providing for the generation of services capabilities that are not core functions of the armed forces and that are critical to military operations within the national technology and industrial base.
(7) Providing for the development, production, and integration of information technology within the national technology and industrial base.
(8) Maintaining critical design skills to ensure that the armed forces are provided with systems capable of ensuring technological superiority over potential adversaries.
(9) Ensuring reliable sources of services, supplies, and materials that are critical to national security, such as specialty metals, essential minerals, armor plate, and rare earth elements, including by reducing reliance on potential adversaries for such services, supplies, and materials to the maximum extent practicable.
(10) Reducing, to the maximum extent practicable, the presence of counterfeit parts in the supply chain and the risk associated with such parts.
(11) Providing for the provision of drugs, biological products, vaccines, and critical medical supplies required to enable combat readiness and protect the health of the armed forces.
(b)
(1) Relying, to the maximum extent practicable, upon the commercial national technology and industrial base that is required to meet the national security needs of the United States.
(2) Reducing the reliance of the Department of Defense on technology and industrial base sectors that are economically dependent on Department of Defense business.
(3) Reducing Federal Government barriers to the use of commercial products, processes, and standards.
(c)
(1)
(2)
(Added
Editorial Notes
Codification
The text of subsecs. (a) and (b) of section 2506 of this title, which were transferred to this section and redesignated as pars. (1) and (2), respectively, of subsec. (c), by
Amendments
2023-Subsec. (a).
Subsec. (a)(9).
2021-
Subsec. (a)(11).
Subsec. (c).
Subsec. (c)(1).
Subsec. (c)(2).
2019-Subsec. (a).
2016-Subsec. (b).
2014-Subsec. (a)(1)(A).
2013-
Subsec. (a).
Subsec. (a)(9), (10).
2011-Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (a)(4).
Subsec. (a)(6) to (8).
2009-Subsec. (a)(6).
1996-
Subsec. (a).
Subsec. (a)(5).
Subsecs. (b), (c).
1993-Subsec. (a)(1)(A).
Subsec. (a)(5).
Subsec. (b)(2).
Statutory Notes and Related Subsidiaries
Effective Date of 2021 Amendment
Amendment by section 1867(b), (c)(1) of
Acceptance of Civil Aviation Authority Certification
"(1)
"(A) a written justification for such additional review and approval process is approved by the commander of a systems command of a military service; and
"(B) the Secretary submits such justification to the congressional defense committees [Committees on Armed Services and Appropriations of the Senate and the House of Representatives].
"(2)
Acceleration of Qualification of Compliant Sources
"(a)
"(1)
"(A) the Secretary of Defense shall establish in the collaborative forum described in section 1844(a) of this Act [section 1844(a) of div. A of
"(B) such working group shall develop recommendations for-
"(i) enhancing the exchange of information between the Department of Defense and contractors of the defense industrial base about compliant materials; and
"(ii) accelerating the qualification of such materials for use by the Department of Defense and the integration of such materials into the supply chains of contractors of the Department of Defense.
"(2)
"(A) identify processes for exchanging information about compliant materials between the Department of Defense and contractors of the defense industrial base while maintaining appropriate safeguards of commercially proprietary information;
"(B) identify processes and procedures to streamline the identification, testing, and qualification of compliant sources and compliant materials;
"(C) seek to reduce the unnecessary application of requirements that are specific to a single Armed Force for identification, testing, and qualification of compliant sources and compliant material;
"(D) provide a forum for the Army, Navy, Air Force, Marine Corps, and Space Force and other elements of the Department of Defense to share technical and supply chain data related to requirements for covered materials;
"(E) identify compliant sources at each step of the supply chain, to the extent that such supply chains are subject to subchapter III of chapter 385 of title 10, United States Code;
"(F) at least once a quarter, publish for the members of the working group and for the Under Secretary of Defense for Acquisition and Sustainment, a list of compliant sources for each critical material, including a general description of what step of the supply chain in which each compliant source is participating, if any;
"(G) develop and recommend processes to enable the Department of Defense to rapidly identify, qualify, and integrate compliant materials into programs of the Department at scale;
"(H) seek to reduce future requirements for critical materials in defense systems by encouraging contractors of the Department of Defense to design and develop systems that use commercially available critical materials, when such materials are capable of meeting mission needs;
"(I) seek input from small and nontraditional contractors and ensure the working group considers the unique attributes of such businesses in carrying out the responsibilities of the working group under this subsection;
"(J) develop and provide recommendations to reduce impediments or disincentives for a supplier of an end item to the Department of Defense to revise a supply chain agreement or other arrangement to eliminate the reliance of the supplier on noncompliant sources;
"(K) any other matters assigned to the working group by the Secretary; and
"(L) provide the Secretary with timely recommendations developed pursuant to this section.
"(b)
"(1) The term 'compliant source' means an entity engaged in the production, manufacture, or distribution of a critical material that is compliant with the requirements of subchapter III of chapter 385 of title 10, United States Code.
"(2) The term 'compliant material' means critical material that is sourced from a compliant source.
"(3) The term 'critical material' means a material subject to sourcing restrictions under subchapter III of chapter 385 of title 10, United States Code.
"(4) The term 'end item' has the meaning given such term in section 4863 of title 10, United States Code."
Improving the Domestic Textile and Industrial Base
"(a)
"(1)
"(2)
"(A) recapitalization of facilities related to domestic textile and footwear development or production;
"(B) efficient vertical integration of such existing facilities;
"(C) expanding domestic production capacity of textiles or footwear;
"(D) implementing technological advancements to improve efficiency and quality assurance of domestic textiles or footwear; and
"(E) any other investment that would encourage the maturation and qualification of domestic sources of textiles or footwear-
"(i) to ensure competition and reduce the reliance of the Department of Defense on textiles and footwear from foreign manufacturers for which an exception granted under section 4862(c) of title 10, United States Code, applies; or
"(ii) that the Assistant Secretary of Defense for Industrial Base Policy determines necessary for the health of the industrial base.
"(b)
"(1)
"(2)
"(A) Not later than April 1, 2026, the Secretary of Defense shall provide to the Committees on Armed Services of the Senate and House of Representatives a briefing on the plan of the Department of Defense to ensure that the Defense Contract Management Agency has the necessary resources, including personnel, to carry out the duties of the Defense Contract Management Agency with respect to oversight travel of existing contracts of the Department and prioritize oversight over the compliance with section 4862 of title 10, United States Code.
"(B) The plan described in subparagraph (A) shall include-
"(i) to the extent available, an analysis from a federally funded research and development center on the resources, including personnel, required for the Defense Contract Management Agency to enable the Defense Contract Management Agency to carry out the duties of the Defense Contract Management Agency with respect to the oversight of contracts of the Department of Defense; and
"(ii) a plan to ensure that, not later than September 30, 2030, the Defense Contract Management Agency has the required resources, including personnel, to effectively oversee the compliance of the Department of Defense with section 4862 of title 10, United States Code.
"(c)
"(1) The Director of the Defense Logistics Agency in coordination with the Secretary concerned for each covered Armed Force, shall develop a strategy to maximize the use of annual or, where applicable, multi-year contracts by the Department of Defense for acquisitions involving the domestic textile or footwear industries to ensure the long-term stability and predictability of the requirements of the Department with respect to the goods or services acquired from such industries.
"(2) The Secretary concerned for each covered Armed Force shall, on an annual basis, submit to the Director of the Defense Logistics Agency the requirements of such covered Armed Force for textiles and footwear for the year and the funding necessary to meet such requirements, subject to the availability of funds authorized for such purpose.
"(3)(A) The Secretary concerned for each covered Armed Force shall aggregate data on the annual requirement of each covered Armed Force for common items, to ensure the Director of the Defense Logistics Agency can maximize efficiency and cost effectiveness in the acquisition of such common items.
"(B) The data the Secretary concerned for a covered Armed Force is required to aggregate under subparagraph (A) shall include the requirements of the covered Armed Force concerned for the upcoming fiscal year for common items.
"(C) The Secretary concerned for each covered Armed Force shall aggregate the annual requirement of each covered Armed Force common items and incorporate such aggregate requirement into the next fiscal years program objective memorandum process of such Armed Force.
"(4)(A) The Director of the Defense Logistics Agency shall, to the maximum extent practicable, use the aggregate data described in paragraph (3)(A) to execute annual contracts for common items and textiles and footwear required by only one of the covered Armed Forces to support the long-term stability of the domestic textile and footwear industries.
"(B)(i) If the Director of the Defense Logistics Agency does not receive the requirements and funding described in paragraph (2) for a covered Armed Force for a year, or such other information required for the Director to acquire textiles and footwear meeting such requirements for such year, the Director may waive subparagraph (A) of this paragraph with respect to such requirements.
"(ii) Not later than 30 days after the date on which the Director of the Defense Logistics Agencies issues a waiver under clause (i), the Director shall submit to the Committees on Armed Services of the Senate and House of Representatives a notice of such waiver, including an explanation of the rational for granting such waiver.
"(5) In this section-
"(A) the term 'covered Armed Force' means the Army, Navy, Air Force, Marine Corps, or Space Force;
"(B) the term 'common item' mean a textile or footwear required by more by than one of the covered Armed Forces; and
"(C) the term 'Secretary concerned' has the meaning given such term in section 101(a) of title 10, United States Code.
"(d)
"(1)
"(2)
"(A) An identification of the textile and footwear goods supplied to the Department of Defense by a single source.
"(B) Data pertaining to past delays in the delivery of textiles and footwear resulting from rigidity in the supply chains of the domestic textile and footwear industrial base, including an assessment of any challenges related to the capacity of the domestic textile and footwear industrial base to meet any surge or contingency requirements of the Department of Defense for textiles or footwear.
"(C) An analysis of the capability of the domestic textile and footwear industrial base to mitigate the risk posed by rigidity in the supply chains of the domestic textile and footwear industrial base and the challenges to the domestic textile and footwear industrial base meeting the surge and contingency requirements of the Department of Defense for textiles or footwear, including-
"(i) opportunities for public-private partnerships to enable recapitalization of manufacturing lines or vertical integration;
"(ii) opportunities for increased flexibility in production, including adjustments to accommodate both increases in requirements for textiles or footwear and manufacturing of new or different textiles or footwear; and
"(iii) an assessment of any ongoing research and development initiatives by either the Department of Defense or domestic industry to meet any requirements for textiles or footwear that are currently covered by a waiver under section 4862(c) of title 10, United States Code.
"(D) An identification of any regulations or processes of the Department of Defense impeding the supply chain resilience of the domestic textile and footwear industries.
"(E) An identification of opportunities for the Department of Defense to make additional investments into the domestic textile and footwear industries to increase production capacity such industries, facilitate greater competition, and reduce the reliance of the Department on textiles and footwear from foreign manufacturers for which an exception granted under section 4862(c) of title 10, United States Code, applies.
"(e)
"(1)
"(2)
"(A) an explanation of the progress made in carrying out the requirements under subsections (a) through (d);
"(B) a timeline for completion of each such requirement; and
"(C) an identification of any barriers, including any legislative authorities, policies, and resource deficiencies, to carrying out such requirements.
"(f)
"(1)
"(2)
"(A) The Secretary concerned for each covered Armed Force shall conduct a study assessing the service requirements for combat boots for such covered Armed Force to determine the requirements for certifying combat boots under the program established in such covered Armed Force under paragraph (1) as meeting uniform regulations regarding durability, quality, and uniform standards.
"(B) The study required under subparagraph (A) shall include an identification of-
"(i) general requirements for wear, durability and quality;
"(ii) specialty-specific requirements based on the duties and operating environments of members of Armed Forces; and
"(iii) minimum requirements for biomechanics for the health and readiness of such members.
"(3)
Small-UAS Industrial Base Working Group
"(a)
"(b)
"(1) The Deputy Secretary of Defense.
"(2) The Assistant Secretary of Defense for Industrial Base Policy.
"(3) The Director of the Defense Autonomous Warfare Group.
"(4) One or more representatives of the Defense Innovation Unit.
"(5) The service acquisition executive of each military department.
"(6) One or more representatives from the Army Materiel Command.
"(7) One or more representatives from the United States Special Operations Command.
"(8) Such other members as the Deputy Secretary of Defense determines appropriate.
"(c)
"(d)
"(1) Analyzing the current capacity of the sUAS industrial base, including manufacturers of complete sUAS systems and suppliers of components for such systems.
"(2) Identifying likely investments by entities in the sUAS industrial base to remediate fragile supply chains and supply chains for systems or components for which there are limited or no domestic suppliers, taking into account reasonable estimates of Federal Government and commercial demand and ensuring that private investment is leveraged to the greatest extent practicable.
"(3) Developing plans for investments and other actions to remediate fragile or non-U.S. suppliers, including the following:
"(A) Continued Federal Government purchases of significant numbers of sUAS systems.
"(B) Partnerships between entities in the sUAS industrial base and the Federal Government, including-
"(i) the SkyFoundry initiative of the Army Materiel Command;
"(ii) arrangements for companies in the sUAS industrial base to operate commercially-owned, commercially-operated production facilities on sites within the United States organic industrial base;
"(iii) arrangements for the establishment of Government-owned, contractor-operated sUAS component production facilities on such sites; and
"(iv) arrangements for the establishment of Government-owned, Government-operated sUAS component production facilities on such sites.
"(C) Identifying sUAS capabilities that are required by the Army, Navy, Air Force, Marine Corps, and Space Force, but which commercial industry cannot or is not expected to fulfill.
"(D) Identifying opportunities for public-private partnerships to support the incubation and innovation of sUAS technology.
"(4) Identifying potential changes in qualification processes for sUAS components that could enable greater commercial production of such components and sUAS systems.
"(e)
"(1)
"(A) an initial assessment of the sUAS industrial base;
"(B) a summary of the aggregate demand signal made by the Federal Government for sUAS production as of the date of the report;
"(C) a summary of the future projected demand signal by the Federal Government for sUAS production;
"(D) a description of the likely investments in the sUAS component supplier base by commercial industry over the period of 18 months following the date of the report;
"(E) recommendations for investments or other actions to strengthen the sUAS industrial base to optimally meet aggregate Federal Government and commercial demand; and
"(F) an assessment of the Sky Foundry initiative of the Army to determine how that initiative is expected to-
"(i) assist the Army in meeting its sUAS requirements at a competitive cost; and
"(ii) materially impact the health of the sUAS industrial base.
"(2)
"(f)
"(1) the Working Group has submitted the initial report required under subsection (e)(1) to the congressional defense committees; and
"(2) the Deputy Secretary of Defense certifies to such committees that the SkyFoundry program-
"(A) will improve the ability of the Army to rapidly field sUAS systems at a competitive cost; and
"(B) will not negatively impact the commercial sUAS industrial base.
"(g)
"(1) The term 'small-UAS' or 'sUAS' means an unmanned aircraft system designated as Group 1, Group 2, or Group 3 in the Unmanned Aircraft Systems Categorization Chart set forth in chapter III of the Department of Defense Joint Publication 3-30 (relating to 'Joint Air Operations'), or any successor to such categorization system.
"(2) The term 'sUAS component' means any of following components for sUAS systems:
"(A) Brushless motors.
"(B) Batteries.
"(C) Antennae.
"(D) Flight controllers, including printed circuit boards.
"(E) Wiring harnesses.
"(F) Rotors.
"(G) Blades and propellers.
"(H) Chassis, bodies, and frames.
"(I) Sensors, including electro-optical and infra-red sensors, GPS, and other such sensors."
Partnership for Indo-Pacific Industrial Resilience
"(a)
"(b)
"(1) To enable the production and supply of the material necessary for equipping the Armed Forces of the United States and the military forces of allied and partner countries to achieve-
"(A) the objectives set forth in the most recent national security strategy report submitted to Congress by the President pursuant to section 108 of the National Security Act of 1947 (50 U.S.C. 3043);
"(B) the policy guidance of the Secretary of Defense provided pursuant to section 113(g) of title 10, United States Code; and
"(C) the future-years defense program submitted to Congress by the Secretary of Defense pursuant to section 221 of title 10, United States Code.
"(2) To strengthen the collective defense industrial base by expanding industrial base capability, capacity, and workforce, including with respect to enhanced supply chain security, interoperability, and resilience among participating countries.
"(3) To identify and mitigate industrial base vulnerabilities across partner countries.
"(4) To advance research and development activities to provide the Armed Forces of the United States and the military forces of allied and partner countries with systems capable of ensuring technological superiority over potential adversaries.
"(5) To promote co-development, co-production, and procurement collaboration in key defense sectors.
"(6) To promote defense innovation, improve information sharing, encourage standardization, reduce barriers to cooperation, and otherwise mitigate potential vulnerabilities and facilitate collaboration.
"(7) Any other matter the Secretary of Defense considers appropriate.
"(c)
"(1)
"(2)
"(d)
"(e)
"(1) Enter into agreements and memoranda of understanding with appropriate counterparts from participating countries.
"(2) Establish working groups and technical exchanges.
"(3) Provide technical assistance and capacity-building support to partner countries using authorities available to the Secretary under title 10, United States Code.
"(4) Engage with industry, capital providers, academia, and any other stakeholders necessary to advance the objectives described in subsection (b).
"(f)
"(1)
"(A)
"(B)
"(i) An assessment of shared industrial base vulnerabilities.
"(ii) An overview of efforts among participating countries to enhance supply chain integrity and resilience.
"(iii) A description of any joint defense production or co-development initiative, including any such initiative involving sensitive or classified technologies.
"(iv) An articulation of priority initiatives for the upcoming fiscal year.
"(v) Recommendations for legislative, regulatory, policy, or resourcing changes to achieve the objectives described in subsection (b).
"(vi) Any other matter the Secretary of Defense considers appropriate.
"(2)
"(g)
Civil Reserve Manufacturing Network
"(a)
"(1)
"(2)
"(A) identify laws, regulations, and policies impeding the establishment of the CRMN;
"(B) develop recommendations for the establishment and the operation of the CRMN, including-
"(i) incentives for manufacturers to participate in the CRMN;
"(ii) incentives or other considerations to address the risk of loss of manufacturing to the commercial customers of manufacturers participating in the CRMN if the Secretary of Defense activates the CRMN;
"(iii) producing a registry, to be known as the 'National Manufacturing Registry', to inventory the manufacturing capabilities of the United States to inform and support the development of the CRMN; and
"(iv) creating an index, to be known as the 'Materiel Compatibility Index', to identify where existing equipment, capabilities, and skill sets of commercial manufacturing could be converted to support requirements of the Department of Defense; and
"(C) submit to the Secretary a list of the laws, regulations, and policies identified under subparagraph (A) and the recommendations developed under subparagraph (B).
"(b)
"(1)
"(A) a strategy to leverage government-owned manufacturing capabilities in partnership with the CRMN to support the requirements of the Department of Defense;
"(B) a plan, informed by the Material Compatibility Index, to develop a network of commercial manufacturing capabilities or facilities that can rapidly convert from commercial manufacturing or production to Department of Defense-directed manufacturing or production upon activation of the CRMN;
"(C) an identification of laws, regulations, and policies impeding the establishment of the CRMN, with recommendations to streamline such establishment;
"(D) an identification and assessment of existing public-private partnership authorities suitable for use by manufacturers participating in the CRMN to broaden domestic manufacturing capability and capacity in the defense industrial base, along with recommendations to expand such authorities to enable the integration of commercial advanced manufacturing systems, materials, and practices with organic industrial base requirements;
"(E) a list of existing Centers of Industrial and Technical Excellence designated pursuant to section 2474 of title 10, United States Code, and compatible maintenance and repair capability for potential CRMN integration; and
"(F) recommendations for the official or officials of the Department who should be authorized to activate the CRMN and criteria for activating the CRMN, including recommendations related to a phased activation of the CRMN reflecting stages of competition and conflict.
"(2)
"(c)
"(1) Upon the submission of the plan required under subsection (b)(1), the Secretary shall-
"(A) establish a program under which the Secretary shall manage and operate the CRMN; and
"(B) initiate the establishment of the CRMN.
"(2) Each participant shall enter into an agreement with the Secretary to rapidly convert, on such terms as agreed to by the Secretary and the participant, production facilities to Department of Defense-directed manufacturing or production upon the activation of the CRMN.
"(3) Not later than 540 days after the date of enactment of this Act, the Secretary shall seek to enter into agreements with not fewer than two manufacturers, including advanced manufacturers, to participate in the CRMN.
"(4) Each participant shall be eligible for-
"(A) the use of the expedited procedures for qualification, certification, and testing of the products and services of such participant under section 865 of the Servicemember Quality of Life National Defense Authorization Act for Fiscal Year 2025 (
"(B) subject to the availability of appropriations, awards under the program established under paragraph (1) for-
"(i) costs associated with expedited qualification and testing of goods manufactured by participants using an advanced manufacturing crisis qualification framework established under section 3243(e) of title 10, United States Code; and
"(ii) costs associated with non-recurring engineering activities required to convert traditional product specifications for use in advanced manufacturing.
"(5) In carrying out the program established under paragraph (1), the Secretary shall encourage participants to prioritize converting existing commercial or dual-use manufacturing capabilities or facilities to Department of Defense-directed manufacturing or production pursuant to the activation of the CRMN.
"(6) None of the funds made available to a participant under the program established under paragraph (1) may be used for planning, design, or construction of a new advanced manufacturing facility.
"(7) The Secretary shall require each participant that receives an award under the program established under paragraph (1) to certify to the Secretary, at the time such award is made and annually thereafter, that none of the amounts of such award have been used for the planning, design, or construction of a new advanced manufacturing facility.
"(8) For the purposes of this section, the Secretary, or such other person authorized to activate the CRMN, activates the CRMN when the Secretary or such other person issues a notice to the participants that the Secretary or such other person that the CRMN is being activated.
"(d)
"(1) a report on progress of establishing the CRMN, including-
"(A) an assessment of a factory-as-a-service model to enable CRMN establishment, reduce the Government costs, minimize obsolescence of participating manufacturing capabilities, and enable rapid scaling;
"(B) an analysis of opportunities for improved efficiency and reductions in costs through the use of advanced manufacturing and value engineering, without sacrificing performance, reliability, quality, or safety;
"(C) any additional findings by the Secretary related to laws, regulations, or policies constraining participation in, or the operations or effectiveness of, the CRMN, and recommendations to streamline the management, oversight, and execution of the CRMN; and
"(D) an assessment of the effectiveness of any incentive structure implemented to mitigate the risk described in section (a)(2)(B)(ii); and
"(2) a strategy to transition castings or forgings capabilities used to meet the needs of the Department of Defense that are experiencing delays or cost overruns to advanced manufacturing under the CRMN.
"(e)
"(1) The term 'advanced manufacturer' means a manufacturer that uses advanced or adaptive manufacturing.
"(2) The term 'advanced manufacturing' has the meaning given such term in section 4841(f) of title 10, United States Code, as added by this section.
"(3) The term 'Civil Reserve Manufacturing Network' means a network of manufacturers partnering with the Secretary to rapidly convert commercial manufacturing capabilities or facilities from commercial manufacturing or production to Department of Defense-directed manufacturing or production.
"(4) The term 'collaborative forum' means the collaborative forum described in section 1844(a) of this Act.
"(5) The term 'factory-as-a-service' means a scalable, flexible manufacturing framework providing rapid reconfiguration of production and real-time collaboration across dispersed facilities.
"(6) The term 'participant' means a manufacturer, including an advanced manufacturer, participating in the CRMN.
"(7) The term 'Secretary' means the Secretary of Defense."
Working Group on the Advanced Manufacturing Workforce
"(a)
"(b)
"(c)
"(1) identify estimated workforce shortages in advanced manufacturing career fields in the defense industrial base, including such workforce shortages in the Department of Defense organic industrial base;
"(2) identify career fields in advanced manufacturing and the associated skills and abilities that are required for such fields; and
"(3) develop recommendations for-
"(A) training, education, and career development programs, including mid-career programs, apprenticeships, internships, and summer camps, to prepare individuals for careers in advanced manufacturing;
"(B) the establishment of public-private partnerships to provide workforce development activities, including identifying incentives for such partnerships for success in recruiting, training, and retaining individuals in careers in advanced manufacturing; and
"(C) any policy changes needed to further the participation of individuals in the advanced manufacturing workforce of the defense industrial base.
"(d)
"(1) a summary of recommendations developed by the working group under subsection (c)(3); and
"(2) actions taken by the Secretary to implement recommendations provided by such working group; and
"(3) actions taken by the Secretary to provide training to enhance the knowledge and experience of the workforce of the Department of Defense, including-
"(A) the benefits, limitations, and commercial best practices and business models for designing, developing, and using products manufactured using advanced manufacturing; and
"(B) recommended approaches for qualifying advanced manufacturing processes and test and evaluation procedures using processes established in section 865 of the National Defense Authorization Act for Fiscal Year 2025 [section 865 of
"(4) a recommendation whether to continue or terminate the working group.
"(e)
Collaborative Forum To Address Challenges to and Limitations of the Defense Industrial Base
"(a)
"(b)
"(1) Eliminating barriers to a resilient and robust defense industrial base, including-
"(A) policies and procedures that impede businesses of all types and sizes from doing business with the Department of Defense;
"(B) policies, procedures, guidance, or workforce training that result in the application of contract requirements or clauses that should not apply to the acquisition of a commercial product or commercial service; and
"(C) impediments to transitioning technology from research, development, testing, and evaluation activities to acquisition programs that are approved and funded.
"(2) Assessing supply chain fragility, including-
"(A) assessing vulnerabilities from reliance on sole source dependencies and overreliance on countries that are not allies or partners of the United States; and
"(B) proposing mitigation measures to diversify sources of supply and to develop alternative sources supply to enhance resilience in the supply chains of the Department.
"(3) Expanding domestic manufacturing and industrial capacity, including-
"(A) public-private partnerships with the organic industrial base, commercial manufacturers, and other industrial entities;
"(B) modernization of the defense industrial base and supply chains by fostering the adoption of advanced manufacturing, automation, and other emerging capabilities;
"(C) integrate commercial approaches to information technology, software, cloud-based services, data management, and artificial intelligence; and
"(D) recommend financial incentives and business models to encourage private-sector investment efforts to expand domestic manufacturing and industrial capacity.
"(4) Developing and training a skilled workforce, including-
"(A) adopting industry-leading programs or other approaches to develop workforce skills in advanced manufacturing, tailored for defense capabilities; and
"(B) creating opportunities for public-private talent exchanges and skill-building initiatives in advanced manufacturing, supply chain management, and risk management.
"(c)
"(d)
"(1) a summary of the implementation of this section;
"(2) a summary of any work products and recommendations provided to the Secretary under subsection (c); and
"(3) any recommendations for actions by Congress to address the challenges to and limitations of the defense industrial base.
"(e)
"(1) The term 'advanced manufacturing' has the meaning given in section 4841(f) of title 10, United States Code, as added by section 1841 of this Act.
"(2) The term 'organic industrial base' has the meaning given in section 2476(f) of title 10, United States Code."
Qualification of Industrial Capabilities
"(a)
"(b)
"(1) produce energetic materials, solid rocket motors, unmanned systems, space systems, or electrical components;
"(2) supply castings and forgings;
"(3) produce all critical readiness items of supply, including those identified as having sole-source dependencies, excessive lead times, unreasonable pricing, or other supply chain deficiencies; and
"(4) use additive or other advanced manufacturing techniques.
"(c)
"(d)
"(1) not later than 180 days after the date of the enactment of this Act [Dec. 23, 2024], policies implementing such process are established to encourage and support the delegation of material review board authorities, processes, and approvals to the contractor or subcontractor (at any tier) with respect to non-safety critical items for industrial capabilities covered in subsection (b);
"(2) commercial processes and procedures for the evaluation and qualification of vendors, including manufacturers and distributors, that are part of the process required by subsection (a) are examined and implemented where feasible and advisable, including forms and templates such as Sources Approval Requests and Alternative Offers;
"(3) the process required by subsection (a) includes processes that are implemented and, if necessary, military specifications or other similar requirements documents are developed to pre-qualify vendors to supply safety critical items or mission critical items for industrial capabilities based on-
"(A) an assessment of the vendor's material and process controls to assure conformance to specification and contractual requirements; and
"(B) audit and inspection requirements of the Department of Defense;
"(4) test reports are reviewed and notice of an approval decision is provided to requesting member of the acquisition workforce (as defined in section 101 of title 10, United States Code) not later than 45 days after the date on which a test is completed;
"(5) processes for qualification of safety critical or flight critical end items produced through advanced processes and technologies, such as additive manufacturing, are established;
"(6) alternative material types that could be a viable replacement or an interchangeable source of material are considered for evaluation and qualification using streamlined requirements to streamline qualification requirements;
"(7) processes are developed, where appropriate, for qualification of a system or subsystem by a designated approval authority within a military department to avoid the need for qualification of individual parts while ensuring the performance of parts and the interactions of the parts in the system or subsystem; and
"(8) pathways are developed to streamline and consolidate the approval authority of the process established in subsection (a).
"(e)
"(1) to the maximum extent practicable, reduce the need for military-unique specification and test procedures;
"(2) develop a process to streamline and expedite the drafting and approval of military specifications (including military performance specifications) and technical publications that-
"(A) details the performance or functions required by the industrial capabilities described in subsection (b) or the weapon system described in subsection (c) and do not constrain implementation of such process;
"(B) is completed, upon request by a member of the acquisition workforce-
"(i) not later than 30 days after the date of such request, for unmanned items, non-safety critical items, or non-mission critical items; and
"(ii) not later than 180 days after the date of such request, for safety critical items or mission critical items; and
"(C) accounts for resource constraints by prioritizing requests for inclusion in the process established in subsection (a); and
"(3) develop a process to develop, produce, and test parts described in subsection (b), and may test through failure, to create data to support the drafting of specifications and test procedures.
"(f)
"(1) Each Secretary of a military department shall establish an Expedited Qualification Panel within the military department under the jurisdiction of that Secretary. Each Expedited Qualification Panel shall-
"(A) develop standardized templates for expedited Source Approval Requests; and
"(B) not later than 14 days after receiving an expedited Source Approval Request-
"(i) review the request; and
"(ii) based on tiered risk criteria, make a determination with respect to the request which shall consist of-
"(I) conditional approval, which may be valid for up to 12 months;
"(II) full approval; or
"(III) disapproval of the request.
"(2) In reviewing and making determinations with respect to Source Approval Requests under paragraph (1), an Expedited Qualification Panel may use the services of designated engineering representatives or equivalent third-party certified engineers when appropriate.
"(g)
"(1) shall be exempt from Class A and Class B mishap investigations, as defined by the Secretary of Defense; and
"(2) shall be subject to streamlined investigation procedures, as determined by the Secretary of Defense, with respect to a mishap.
"(h)
"(i)
"(j)
"(k)
"(l)
"(1) The term 'critical readiness items of supply' has the meaning given the term in section 1733 of title 10, United States Code.
"(2) The term 'non-safety critical items, or non-mission critical items' includes the following items:
"(A) Major risk parts or systems the failure of which is likely to cause structural damage or significant mission degradation and requires finite element modeling, fracture analysis, comparison to similar parts, or similar methods.
"(B) Minor risk parts and systems that only have form, fit, and function requirements verified by dimensional coordinate measuring machines, go/no-go gauges, or similar methods.
"(C) Low risk parts and systems that are consumable or non-critical, requiring material certification, visual inspections, or similar methods.
"(3) The term 'safety critical items or mission critical items' means parts or systems the failure of which is likely to cause loss of control, catastrophic failure, or loss of life, and require full qualification, simulation, and physical testing with Engineering Support Activity witnessing."
Defense Industrial Base Workforce Development Strategy
"(a)
"(b)
"(1)
"(2)
"(c)
"(1) The term 'national technology and industrial base' has the meaning given that term in section 4801 of title 10, United States Code.
"(2) The term 'nuclear security enterprise' has the meaning given that term in section 6101 of title 10, United States Code."
Recovery of Rare Earth Elements and Other Strategic and Critical Materials Through End-Of-Life Equipment Recycling
"(1) identify end-of-life equipment of the Department of Defense that contains rare earth elements and other materials determined pursuant to section 3(a) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98b(a)) to be strategic and critical materials; and
"(2) recover such materials from such equipment for the purposes of reuse by the Department of Defense."
Pilot Program on Capital Assistance To Support Defense Investment in the Industrial Base
Critical Mineral Independence
"(a)
"(1)
"(A) the Committee on Armed Services of the Senate; and
"(B) the Committee on Armed Services of the House of Representatives.
"(2)
"(A) a covered nation (as defined in section 4872(d) of title 10, United States Code); and
"(B) any other country determined by the Secretary of Defense to be a strategic competitor or adversary of the United States for purposes of this section.
"(3)
"(4)
"(b)
"(1) to expand secure sources of supply of critical minerals, including rare earth elements, in the United States and in countries that are allies or partners of the United States to meet the needs of the United States defense sector so that the Department of Defense will achieve critical mineral supply chain independence from covered countries, including the People's Republic of China, the Russian Federation, the Islamic Republic of Iran, and the Democratic People's Republic of North Korea; and
"(2) that the Department of Defense will procure critical minerals and products made using supply chains involving critical minerals that are not mined or processed in or by covered countries.
"(c)
"(1)
"(2)
"(A) identify and assess significant vulnerabilities in the supply chains of contractors and subcontractors of the Department of Defense involving critical minerals that are mined or processed in or by covered countries;
"(B) identify and recommend changes to the acquisition laws, regulations, and policies of the Department of Defense to ensure contractors and subcontractors of the Department use supply chains involving critical minerals that are not mined or processed in or by covered countries to the greatest extent practicable;
"(C) evaluate the utility and desirability of leveraging the process for acquiring shortfall materials for the National Defense Stockpile under the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98 et seq.) to strengthen mining and processing capacity for critical minerals in the United States and in countries that are allies or partners of the United States;
"(D) identify areas of potential engagement and partnership with the governments of countries that are allies or partners of the United States to jointly reduce dependence on critical minerals mined or processed in or by covered countries;
"(E) identify and recommend other policy changes that may be needed to achieve critical mineral supply chain independence from covered countries for the Department;
"(F) identify and recommend measures to streamline authorities and policies with respect to critical minerals and supply chains for critical minerals; and
"(G) prioritize the recommendations made in the strategy to achieve critical mineral supply chain independence from covered countries for the Department, taking into consideration economic costs and varying degrees of vulnerability posed to the national security of the United States by reliance on different types of critical minerals.
"(3)
Department of Defense National Imperative for Industrial Skills Program
"(a)
"(b)
"(1) are innovative, lab-based, or experientially-based;
"(2) rapidly train skilled industrial workers for employment with entities in the defense industrial base faster than traditional workforce development training programs and at the scale needed to measurably reduce, as rapidly as possible, the shortages of skilled industrial workers in the defense industrial base, including modernization of required equipment and training curricula;
"(3) recruit skilled industrial workers who are manufacturing workers from underrepresented communities;
"(4) provide students and skilled industrial workers with the support needed to successfully participate in the defense industrial base;
"(5) address the specific manufacturing requirements and skills that are unique to critical industrial sectors of the defense industrial base as defined by the Secretary of Defense, such as naval shipbuilding; and
"(6) with respect to Federal workforce development training programs in existence on or before the date of the enactment of this Act [Dec. 23, 2022]-
"(A) maximize the use of such Federal workforce development training programs; or
"(B) expand on the activities of such Federal workforce development training programs."
Procurement Requirements Relating to Rare Earth Elements and Strategic and Critical Materials
"(a)
"(1)
"(A) require that any contractor that provides to the Department of Defense a system with a permanent magnet that contains rare earth elements or strategic and critical materials disclose, after undertaking a commercially reasonable inquiry and along with delivery of the system, the provenance of the magnet; and
"(B) safeguard such disclosures in accordance with applicable classification level required by the associated programs.
"(2)
"(A) any rare earth elements and strategic and critical materials used in the magnet were mined;
"(B) such elements and minerals were refined into oxides;
"(C) such elements and minerals were made into metals and alloys; and
"(D) the magnet was sintered or bonded and magnetized.
"(3)
"(A) include a description of the efforts taken by the contractor to date to make the disclosure required by paragraph (1);
"(B) take into account the possible refusal of certain foreign entities to provide the contractor the information necessary to make the disclosure required by paragraph (1); and
"(C) require the contractor to report to the Secretary the name, location, and other identifying information of any entities which refuse to provide the contractor with the information necessary to make the disclosure required by paragraph (1).
"(4)
"(A)
"(i) the continued procurement of the system is necessary to meet the demands of a national emergency declared under section 201 of the National Emergencies Act (50 U.S.C. 1621); or
"(ii) a contractor that cannot currently make the disclosure required by paragraph (1) is making significant efforts to comply with the requirements of that paragraph.
"(B)
"(C)
"(5)
"(A)
"(i) a summary of the disclosures made under this subsection;
"(ii) an assessment of the extent of reliance by the United States on foreign countries, and especially countries that are not allies of the United States, for rare earth elements and strategic and critical materials;
"(iii) a determination with respect to which systems described in paragraph (1) are of the greatest concern for interruptions of supply chains with respect to rare earth elements and strategic and critical materials; and
"(iv) any suggestions for legislation or funding that would mitigate security gaps in such supply chains.
"(B)
"(6)
"(A) not earlier than 30 months after the date of enactment of this Act [Dec. 23, 2022]; and
"(B) after the Secretary of Defense certifies to the Committees on Armed Services of the Senate and the House of Representatives that the Department has established a process to ensure that the information collection requirements of this subsection present no national security risks, or that any such risks have been fully mitigated.
"(d)
Analyses of Certain Activities for Action To Address Sourcing and Industrial Capacity
"(a)
"(1)
"(A) restricting procurement, with appropriate waivers for cost, emergency requirements, and non-availability of suppliers, including restricting procurement to-
"(i) suppliers in the United States;
"(ii) suppliers in the national technology and industrial base (as defined in section 4801 of title 10, United States Code);
"(iii) suppliers in other allied nations; or
"(iv) other suppliers;
"(B) increasing investment through use of research and development or procurement activities and acquisition authorities to-
"(i) expand production capacity;
"(ii) diversify sources of supply; or
"(iii) promote alternative approaches for addressing military requirements;
"(C) prohibiting procurement from selected sources or nations;
"(D) taking a combination of actions described under subparagraphs (A), (B), and (C); or
"(E) taking no action.
"(2)
"(b)
"(1)
"(A) a summary of the findings of the analyses undertaken for each item pursuant to subsection (a);
"(B) relevant recommendations resulting from the analyses; and
"(C) descriptions of specific activities undertaken as a result of the analyses, including schedule and resources allocated for any planned actions.
"(2)
"(A) The annual report on unfunded priorities of the national technology and industrial base required under section 4815 of such title.
"(B) Department of Defense technology and industrial base policy guidance prescribed under section 4811(c) of such title.
"(C) Activities to modernize acquisition processes to ensure the integrity of the industrial base pursuant to section 4819 of such title.
"(D) Defense memoranda of understanding and related agreements considered in accordance with section 4851 of such title.
"(E) Industrial base or acquisition policy changes.
"(F) Legislative proposals for changes to relevant statutes which the Department shall consider, develop, and submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives not less frequently than once per fiscal year.
"(G) Other actions as the Secretary of Defense determines appropriate.
"(c)
"(1) Solar components for satellites.
"(2) Satellite ground station service contracts.
"(3) Naval vessel shafts and propulsion system components (including reduction gears and propellers).
"(4) Infrastructure or equipment for a passenger boarding bridge at a military airport designated by the Secretary of Transportation under section 47118(a) of title 49, United States Code.
"(5) Flags of the United States.
"(6) Natural rubber from herbaceous plants for military applications.
"(7) Alternative proteins as sustainable and secure food sources.
"(8) Carbon fiber."
Demonstration Exercise of Enhanced Planning for Industrial Mobilization and Supply Chain Management
"(a)
"(b)
"(1) Use of a current program that is both fielded and still in production from each military department, Defense Agency, and Department of Defense Field Activity in order to model a notional plan for mobilization or supply chain management, as associated with the selected operational or contingency plans.
"(2) The exercise of processes and authorities that support the Department of Defense for industrial mobilization in support of declared hostilities or other contingency operations.
"(3) The identification of process improvements or gaps in resources, capabilities, or authorities that require remediation, including those related to government or contractor production facilities, tooling, or workforce development.
"(4) The implementation of analytical tools and processes to monitor and assess the health of the industrial base and to use near real-time data and visualization capabilities in making production and distribution decisions, with an emphasis on identifying, assessing, and demonstrating commercially available tools.
"(5) The establishment and tracking of goals and metrics to support institutionalization of defense industrial base health assessment and planning.
"(c)
"(1) an identification of the programs and use cases to be demonstrated;
"(2) a description of methodology for executing the demonstration exercise, including analytical tools or metrics identified to support the process; and
"(3) any preliminary findings.
"(d)
"(1) the programs and use cases considered in this demonstration exercise;
"(2) the outcomes of the activities required under subsection (b);
"(3) outcomes and conclusions;
"(4) lessons learned; and
"(5) any recommendations for legislative action that may be required as a result.
"(e)
Key Advanced System Development Industry Days
"(a)
"(1) collaborate with the private sector on present current and future opportunities with respect to key advanced system development areas;
"(2) raise awareness within the private sector of-
"(A) key advanced system development areas; and
"(B) capability needs and existing and potential requirements related to the key advanced system development areas; and
"(3) raise awareness within such military department of potential material solutions for capability needs and existing and potential requirements related to key advanced system development areas.
"(b) Responsibilities.-
"(1)
"(A) Identify related and potentially related existing, planned, or potential military requirements, including urgent and emergent operational needs.
"(B) Identify and describe related and potentially related needs or gaps in the capabilities of the military department to carry out the missions of the military department, including warfighting and combat support capabilities.
"(C) Identify and describe related and potentially related exercise, demonstration, or experimentation opportunities.
"(2)
"(A) Identify and describe related and potentially related existing, planned, or potential acquisition plans and strategies.
"(B) Identify and describe related and potentially related existing, planned, or potential funding opportunities, including-
"(i) broad agency announcements;
"(ii) requests for information;
"(iii) funding opportunity announcements;
"(iv) special program announcements;
"(v) requests for proposals;
"(vi) requests for quotes;
"(vii) special notices;
"(viii) transactions pursuant to sections 4004, 4021, and 4022 of title 10, United States Code;
"(ix) unsolicited proposals; and
"(x) other funding opportunities as determined appropriate by the service acquisition executive.
"(3)
"(4)
"(A)
"(i) disseminate a written review of such event as broadly as practicable within the Department of Defense; and
"(ii) make such review publicly available on a website of the military department.
"(B)
"(c)
"(1) holding the event at an unclassified security level to the extent practicable;
"(2) making the event publicly accessible through teleconference or other virtual means; and
"(3) making supporting materials for the event publicly available on a website.
"(d)
"(1)
"(2)
"(A) For the Department of the Navy-
"(i) unmanned surface vessels;
"(ii) unmanned underwater vessels;
"(iii) unmanned deployable mobile ocean systems;
"(iv) unmanned deployable fixed ocean systems; and
"(v) autonomous unmanned aircraft systems.
"(B) For the Department of the Air Force, autonomous unmanned aircraft systems.
"(C) For the Department of the Army, autonomous unmanned aircraft systems.
"(3)
"(A) the Chief of Staff of the Army, with respect to matters concerning the Department of the Army;
"(B) the Chief of Naval Operations and the Commandant of the Marine Corps, with respect to matters concerning the Department of the Navy;
"(C) the Chief of Staff of the Air Force, with respect to matters concerning the Department of the Air Force; and
"(D) the Chief of Space Operations, with respect to matters concerning the Space Force."
Demonstration Program on Domestic Production of Rare Earth Elements From Coal Byproducts
"(a)
"(b)
"(c)
"(1) The efficacy of separating rare earth elements and critical minerals from acid mine drainage.
"(2) The feasibility of bringing such technology to commercialized scale.
"(3) Domestic locations that are appropriate for the deployment of such technology.
"(4) The ability of such technology to meet the requirements of the defense industrial base to supplement the rare earth element and critical mineral needs of the Department of Defense.
"(d)
"(e)
Assessment of Requirements for Certain Items To Address Supply Chain Vulnerabilities
"(a)
"(b)
"(c)
"(d)
"(1)
"(A)
"(B)
"(2)
"(A)
"(B)
Plan and Report on Reduction of Reliance on Services, Supplies, or Materials From Covered Countries
"(a)
"(1) reduce the reliance of the United States on services, supplies, or materials obtained from sources located in geographic areas controlled by covered countries; and
"(2) mitigate the risks to national security and the defense supply chain arising from the reliance of the United States on such sources for services, supplies, or materials to meet critical defense requirements.
"(b)
"(c)
Requirement for Industry Days and Requests for Information To Be Open to Allied Defense Contractors
"(a)
"(b)
"(1)
"(2)
National Security Innovation Partnerships
"(a)
"(1) to support partnerships between the Department of Defense and academic institutions, private sector firms in defense and commercial sectors, commercial accelerators and incubators, commercial innovation hubs, public sector organizations, and nonprofit entities with missions relating to national security innovation;
"(2) to expand the national security innovation base, including through engagement with academia, defense industry, commercial industry, government organizations, and the venture capital community;
"(3) to accelerate the transition of technologies and services into acquisition programs and operational use;
"(4) to work in coordination with the Under Secretary of Defense for Personnel and Readiness, other organizations within the Office of the Secretary, and the Armed Forces to create new pathways and models of national security service that facilitate employment within the Department;
"(5) to facilitate engagement with entities described in paragraph (1) for the purpose of developing solutions to national security and defense problems articulated by entities within the Department, including through programs such as the Hacking for Defense program;
"(6) to establish physical locations throughout the United States to support partnerships with academic, government, and private sector industry partners; and
"(7) to enhance the capabilities of the Department in market research, industrial and technology base awareness, source selection, partnerships with private sector capital, and access to commercial technologies.
"(b)
"(1) Section 1599g of title 10, United States Code, relating to public-private talent exchanges.
"(2) Section 2368 of title 10, United States Code [now 10 U.S.C. 4124], relating to Centers for Science, Technology, and Engineering Partnerships.
"(3) Section 2374a of title 10, United States Code [now 10 U.S.C. 4025], relating to prizes for advanced technology achievements.
"(4) Section 2474 of title 10, United States Code, relating to Centers of Industrial and Technical Excellence.
"(5) Section 2521 of title 10, United States Code [now 10 U.S.C. 4841, 4842], relating to the Manufacturing Technology Program.
"(6) Subchapter VI of chapter 33 of title 5, United States Code, relating to assignments to and from States.
"(7) Chapter 47 of title 5, United States Code, relating to personnel research programs and demonstration projects.
"(8) Section 12 of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3710a) and section 6305 of title 31, United States Code, relating to cooperative research and development agreements.
"(9) Such other authorities as the Secretary considers appropriate.
"(c)
"(1)
"(2)
"(A)
"(B)
"(i) Plans that describe any support that will be provided for the activity by other organizations and elements of the Department of Defense under paragraph (1).
"(ii) Plans for the implementation of the activity, including plans for-
"(I) future funding and administrative support of the activity;
"(II) integration of the activity into the programming, planning, budgeting, and execution process of the Department of Defense;
"(III) integration of the activity with the other programs and initiatives within the Department that have missions relating to innovation and outreach to the academic and the private sector ; and
"(IV) performance indicators by which the activity will be assessed and evaluated.
"(iii) A description of any additional authorities the Secretary may require to effectively carry out the responsibilities under this section."
Assessment of Research and Development, Manufacturing, and Production Capabilities
Recommendations for Additional Members of the National Technology and Industrial Base
"(1)
"(2)
"(A) the national security and foreign policy impacts, costs, and benefits to the United States and allied countries of the inclusion of any such additional member countries in the national technology and industrial base;
"(B) the economic impacts, costs, and benefits to entities within the United States and allied countries of the inclusion of any such additional member countries into the national technology and industrial base, including an assessment of-
"(i) specific shortfalls in the technological and industrial capacities of current member countries of the national technology and industrial base that would be addressed by inclusion of such additional member countries;
"(ii) specific areas in the industrial bases of current member countries of the national technology and industrial base that would likely be impacted by additional competition if such additional member countries were included in the national technology and industrial base; and
"(iii) costs to reconstitute capability should such capability be lost to competition; and
"(C) other factors as determined relevant by the Secretary.
"(3)
Supply of Strategic and Critical Materials for the Department of Defense
"(a)
"(1) From sources located within the United States.
"(2) From sources located within the national technology and industrial base (as defined in section 2500 of title 10, United States Code [now 10 U.S.C. 4801]).
"(3) From other sources as appropriate.
"(b)
"(1)
"(A) Not later than January 1, 2035, ensuring access to secure sources of supply for strategic and critical materials that will-
"(i) fully meet the demands of the domestic defense industrial base;
"(ii) eliminate the dependence of the United States on potentially vulnerable sources of supply for strategic and critical materials; and
"(iii) ensure that the Department of Defense is not reliant upon potentially vulnerable sources of supply for the processing or manufacturing of any strategic and critical materials deemed essential to national security by the Secretary of Defense.
"(B) Provide incentives for the defense industrial base to develop robust processing and manufacturing capabilities in the United States, including processing of strategic and critical materials derived from recycled or reused minerals or metals, to refine strategic and critical materials for Department of Defense purposes.
"(C) Maintain secure sources of supply for strategic and critical materials, including such materials derived from recycled or reused minerals or metals, required to maintain current military requirements in the event that international supply chains are disrupted.
"(2)
"(A) the development of guidance in consultation with appropriate officials of the Department of State, the Joint Staff, and the Secretaries of the military departments;
"(B) the continued and expanded use of existing programs, such as the National Defense Stockpile;
"(C) the continued use of authorities under title III of the Defense Production Act of 1950 (50 U.S.C. 4531 et seq.);
"(D) the development of cost-effective sources of supply of strategic and critical materials derived from recycled or reused minerals or metals; and
"(E) other methods, as the Secretary of Defense deems appropriate."
Analyses of Certain Activities for Action To Address Sourcing and Industrial Capacity
"(a)
"(1)
"(A) restricting procurement, with appropriate waivers for cost, emergency requirements, and non-availability of suppliers, including restricting procurement to-
"(i) suppliers in the United States;
"(ii) suppliers in the national technology and industrial base (as defined in section 2500 of title 10, United States Code [now 10 U.S.C. 4801]);
"(iii) suppliers in other allied nations; or
"(iv) other suppliers;
"(B) increasing investment through use of research and development or procurement activities and acquisition authorities to-
"(i) expand production capacity;
"(ii) diversify sources of supply; or
"(iii) promote alternative approaches for addressing military requirements;
"(C) prohibiting procurement from selected sources or nations;
"(D) taking a combination of actions described under subparagraphs (A),(B), and (C); or
"(E) taking no action.
"(2)
"(b)
"(1)
"(A) a summary of the findings of the analyses undertaken for each item pursuant to subsection (a);
"(B) relevant recommendations resulting from the analyses; and
"(C) descriptions of specific activities undertaken as a result of the analyses, including schedule and resources allocated for any planned actions.
"(2)
"(A) The annual report to Congress required under section 2504 of title 10 [now 10 U.S.C. 4814], United States Code.
"(B) The annual report on unfunded priorities of the national technology and industrial base required under section 2504a of such title [now 10 U.S.C. 4815].
"(C) Department of Defense technology and industrial base policy guidance prescribed under section 2506 of such title [now 10 U.S.C. 4811(c)].
"(D) Activities to modernize acquisition processes to ensure integrity of industrial base pursuant to section 2509 of such title [now 10 U.S.C. 4819].
"(E) Defense memoranda of understanding and related agreements considered in accordance with section 2531 of such title [now 10 U.S.C. 4851].
"(F) Industrial base or acquisition policy changes.
"(G) Legislative proposals for changes to relevant statutes which the Department shall consider, develop, and submit to the Committees on Armed Services of the Senate and House of Representatives not less frequently than once per fiscal year.
"(H) Quarterly briefings on the national technology and industrial base required under section 2504 of such title [now 10 U.S.C. 4814], as amended by section 842 of this Act.
"(I) Other actions as the Secretary of Defense determines appropriate.
"(c)
"(1) Goods and services covered under existing restrictions, where a waiver, exception, or domestic non-availability determination has been applied.
"(2) Printed circuit boards and other electronics components, consistent with the requirements of other provisions of this Act.
"(3) Pharmaceuticals, including active pharmaceutical ingredients.
"(4) Medical devices.
"(5) Therapeutics.
"(6) Vaccines.
"(7) Diagnostic medical equipment and consumables, including reagents and swabs.
"(8) Ventilators and related products.
"(9) Personal protective equipment.
"(10) Strategic and critical materials, including rare earth materials.
"(11) Natural or synthetic graphite.
"(12) Coal-based rayon carbon fibers.
"(13) Aluminum and aluminum alloys.
"(14) Beef products.
"(15) Molybdenum and molybdenum alloys.
"(16) Optical transmission equipment, including optical fiber and cable equipment.
"(17) Armor on tactical ground vehicles.
"(18) Graphite processing.
"(19) Advanced AC–DC power converters."
Support for Defense Manufacturing Communities To Support the Defense Industrial Base
"(a)
"(1)
"(2)
"(b)
"(1)
"(2)
"(A) including members from academia, defense industry, commercial industry, and State and local government organizations;
"(B) supporting efforts in geographical regions that have capabilities in key technologies or industrial base supply chains that are determined critical to national security;
"(C) optimal consortium composition and size to promote effectiveness, collaboration, and efficiency; and
"(D) complementarity with defense manufacturing institutes.
"(3)
"(4)
"(A)
"(B)
"(i) the performance of the consortium in meeting the established goals of the Program;
"(ii) the progress the consortium has made with respect to project-specific metrics, particularly with respect to those metrics that were designed to help communities track their own progress;
"(iii) whether any changes to the composition of the eligible consortium or revisions of the plan for the consortium would improve the capabilities of the defense industrial base;
"(iv) the effectiveness of coordination with defense manufacturing institutes; and
"(v) such other criteria as the Secretary considers appropriate.
"(5)
"(A) a description of the regional boundaries of the consortium, and the defense manufacturing capacity of the region;
"(B) an evidence-based plan for enhancing the defense industrial base through the efforts of the consortium;
"(C) the investments the consortium proposes and the strategy of the consortium to address gaps in the defense industrial base;
"(D) a description of the outcome-based metrics, benchmarks, and milestones that will track and the evaluation methods that will be used to gauge performance of the consortium;
"(E) how the initiatives will complement defense manufacturing institutes; and
"(F) such other matters as the Secretary considers appropriate.
"(c)
"(1)
"(2)
"(3)
"(A) equipment or facility upgrades;
"(B) workforce training, retraining, or recruitment and retention, including that of women and underrepresented minorities;
"(C) business incubators;
"(D) advanced research and commercialization, including with Federal laboratories and depots;
"(E) supply chain development; and
"(F) small business assistance.
"(d)
Enhanced Analytical and Monitoring Capability of the Defense Industrial Base
"(a)
"(1)
"(2)
"(A) Designation of a senior official responsible for overseeing the development and implementation of the process.
"(B) Development or integration of tools to support commercial due diligence and business intelligence or to otherwise analyze and monitor commercial activity to understand business relationships affecting the defense industrial base.
"(C) Development of risk profiles of products, services, or entities based on business intelligence, commercial due diligence tools and data services.
"(D) As the Secretary determines necessary, integration with intelligence sources to develop threat profiles of entities attempting transactions with a defense industrial base companies [sic].
"(E) Other matters as the Secretary deems necessary.
"(3)
"(A) Identification of the official required to be designated under paragraph (2)(A).
"(B) Identification of the tools described in paragraph (2)(B) that are currently available to [the] Department of Defense and any other tools available commercially or otherwise that might contribute to enhancing the analytic capability of the process.
"(C) Identification of, or recommendations for, any statutory changes needed to improve the effectiveness of the process.
"(D) Projected resources necessary to purchase any commercially available tools identified under subparagraph (B) and to carry out any statutory changes identified under subparagraph (C).
"(b)
"(1)
"(A)
"(i) The report required under section 721(m) of the Defense Production Act of 1950 (50 U.S.C. 4565(m)) (relating to concentrations of purchases of the defense industrial base).
"(ii) The report required under section 723(a) of the Defense Production Act of 1950 (50 U.S.C. 4568(a)) (relating to offsets in defense production).
"(iii) The report required under section 2504 of title 10, United States Code [now 10 U.S.C. 4814] (relating to annual industrial capabilities).
"(iv) Any other reports the Secretary determines appropriate.
"(B)
"(2)
"(3)
"(4)
"(A) the Committee on Armed Services, the Committee on Financial Services, the Committee on Foreign Affairs, and the Permanent Select Committee on Intelligence of the House of Representatives; and
"(B) the Committee on Armed Services, the Committee on Banking, Housing, and Urban Affairs, the Committee on Foreign Relations, and the Select Committee on Intelligence of the Senate."
[For termination, effective Dec. 30, 2021, of reporting requirements in section 1071(b)(1) of
Greater Integration of the National Technology and Industrial Base
"(a)
"(1) A description of the various components of the national technology and industrial base, including government entities, universities, nonprofit research entities, nontraditional and commercial item contractors, and private contractors that conduct commercial and military research, produce commercial items that could be used by the Department of Defense, and produce items designated and controlled under section 38 of the Arms Export Control Act [22 U.S.C. 2778] (also known as the 'United States Munitions List').
"(2) Identification of the barriers to the seamless integration of the transfer of knowledge, goods, and services among the persons and organizations of the national technology and industrial base.
"(3) Identification of current authorities that could contribute to further integration of the persons and organizations of the national technology and industrial base, and a plan to maximize the use of those authorities.
"(4) Identification of changes in export control rules, procedures, and laws that would enhance the civil-military integration policy objectives set forth in section 4811(b) of title 10, United States Code, for the national technology and industrial base to increase the access of the Armed Forces to commercial products, services, and research and create incentives necessary for nontraditional and commercial item contractors, universities, and nonprofit research entities to modify commercial products or services to meet Department of Defense requirements.
"(5) Recommendations for increasing integration of the national technology and industrial base that supplies defense articles to the Armed Forces and enhancing allied interoperability of forces through changes to the text or the implementation of-
"(A) section 126.5 of title 22, Code of Federal Regulations (relating to exemptions that are applicable to Canada under the International Traffic in Arms Regulations);
"(B) the Treaty Between the Government of the United States of America and the Government of Australia Concerning Defense Trade Cooperation, done at Sydney on September 5, 2007;
"(C) the Treaty Between the Government of the United States of America and the Government of the United Kingdom of Great Britain and Northern Ireland Concerning Defense Trade Cooperation, done at Washington and London on June 21 and 26, 2007; and
"(D) any other agreements among the countries comprising the national technology and industrial base.
"(b)
"(c)
Department of Defense Technology Offset Program To Build and Maintain the Military Technological Superiority of the United States
"(a)
"(1)
"(A) accelerating the fielding of offset technologies that would help counter technological advantages of potential adversaries of the United States, including directed energy, low-cost, high-speed munitions, autonomous systems, undersea warfare, cyber technology, and intelligence data analytics, developed using research funding of the Department of Defense and accelerating the commercialization of such technologies; and
"(B) developing and implementing new policies and acquisition and business practices.
"(2)
"(A) criteria for an application for funding by a military department, Defense Agency, or a combatant command;
"(B) the purposes for which such a department, agency, or command may apply for funds and appropriate requirements for technology development or commercialization to be supported using program funds;
"(C) the priorities, if any, to be provided to field or commercialize offset technologies developed by certain types of research funding of the Department; and
"(D) criteria for evaluation of an application for funding or changes to policies or acquisition and business practices by such a department, agency, or command for purposes of the program.
"(b)
"(1)
"(2)
"(c)
"(1)
"(2)
"(d)
"(1)
"(2)
"(e)
"(1)
"(2)
Expansion of the Industrial Base
"(a)
"(b)
"(c)
"(d)
"(e)
"(f)
Executive Agent for Printed Circuit Board Technology
"(a)
"(b)
"(1)
"(2)
"(A) Development and maintenance of a printed circuit board and interconnect technology roadmap that ensures that the Department of Defense has access to the manufacturing capabilities and technical expertise necessary to meet future military requirements regarding such technology.
"(B) Development of recommended funding strategies necessary to meet the requirements of the roadmap developed under subparagraph (A).
"(C) Assessment of the vulnerabilities, trustworthiness, and diversity of the printed circuit board supply chain, including the development of trustworthiness requirements for printed circuit boards used in defense systems, and to develop strategies to address matters that are identified as a result of such assessment.
"(D) Such other roles and responsibilities as the Secretary of Defense considers appropriate.
"(c)
"(d)
"(1) The term 'Directive 5101.1' means Department of Defense Directive 5101.1, or any successor directive relating to the responsibilities of an executive agent of the Department of Defense.
"(2) The term 'executive agent' has the meaning given the term 'DoD Executive Agent' in Directive 5101.1."
Essential Items Identification and Domestic Production Capabilities Improvement Program
"SEC. 811. CONSISTENCY WITH UNITED STATES OBLIGATIONS UNDER INTERNATIONAL AGREEMENTS.
"No provision of this subtitle [subtitle B (§§811–828) of title VIII of div. A of
"SEC. 812. ASSESSMENT AND ANNUAL REPORT OF UNITED STATES DEFENSE INDUSTRIAL BASE CAPABILITIES AND ACQUISITIONS OF ARTICLES, MATERIALS, AND SUPPLIES MANUFACTURED OUTSIDE THE UNITED STATES.
"(a)
"(A) the degree to which the United States is dependent on foreign sources of supply; and
"(B) the capabilities of the United States defense industrial base to produce military systems necessary to support the national security objectives set forth in section 4811 of title 10, United States Code.
"(2) For purposes of the assessment program, the Secretary shall use existing data, as required under subsection (b), and submit an annual report, as required under subsection (c).
"(b)
"(A) Whether the contractor is a United States or foreign contractor.
"(B) The principal place of business of the contractor and the principal place of performance of the contract.
"(C) Whether the contract was awarded on a sole source basis or after receipt of competitive offers.
"(D) The dollar value of the contract.
"(2) The Federal Procurement Data System described in section 1122(a)(4)(A) of title 41, United States Code, or any successor system, shall collect from contracts described in paragraph (1) the information specified in that paragraph.
"(3) Information obtained in the implementation of this section is subject to the same limitations on disclosure, and penalties for violation of such limitations, as is provided under section 4818 of title 10, United States Code. Such information also shall be exempt from release under section 552 of title 5, United States Code.
"(4) For purposes of meeting the requirements set forth in this section, the Secretary of Defense may not require the provision of information beyond the information that is currently provided to the Department of Defense through existing data collection systems by non-Federal entities with respect to contracts and subcontracts with the Department of Defense or any military department.
"[(c) Repealed.
"(d)
"(e)
"[SEC. 813. Repealed.
Pub. L. 111–84, div. A, title VIII, §846, Oct. 28, 2009, 123 Stat. 2420
.]
"SEC. 814. PRODUCTION CAPABILITIES IMPROVEMENT FOR CERTAIN ESSENTIAL ITEMS USING DEFENSE INDUSTRIAL BASE CAPABILITIES FUND.
"(a)
"(b)
"(c)
"(d)
"(e)
"(f)
"(1) ensuring the visibility and accountability of transactions engaged in through the Fund; and
"(2) reporting to Congress each year regarding activities of the Fund during the previous fiscal year."
Documentation for Awards for Cooperative Agreements or Other Transactions Under Defense Technology Reinvestment Programs
National Shipbuilding Initiative
"SEC. 1351. SHORT TITLE.
"This subtitle [subtitle D, §§1351–1363 of title XIII of div. A of
"SEC. 1352. NATIONAL SHIPBUILDING INITIATIVE.
"(a)
"(b)
"(1) by the Secretary of Defense, with respect to programs under the jurisdiction of the Secretary of Defense; and
"(2) by the Secretary of Transportation, with respect to programs under the jurisdiction of the Secretary of Transportation.
"(c)
"(1)
"(2)
"(3)
"(4)
"SEC. 1353. DEPARTMENT OF DEFENSE PROGRAM MANAGEMENT THROUGH DEFENSE ADVANCED RESEARCH PROJECTS AGENCY.
"The Secretary of Defense shall designate the Defense Advanced Research Projects Agency of the Department of Defense as the lead agency of the Department of Defense for activities of the Department of Defense which are part of the National Shipbuilding Initiative program. Those activities shall be carried out as part of defense conversion activities of the Department of Defense.
"SEC. 1354. DEFENSE ADVANCED RESEARCH PROJECTS AGENCY FUNCTIONS AND MINIMUM FINANCIAL COMMITMENT OF NON-FEDERAL GOVERNMENT PARTICIPANTS.
"(a) DARPA
"(1) Consultation with the Maritime Administration, the Office of Economic Adjustment, the National Economic Council, the National Shipbuilding Research Project, the Coast Guard, the National Oceanic and Atmospheric Administration, appropriate naval commands and activities, and other appropriate Federal agencies on-
"(A) development and transfer to the private sector of dual-use shipbuilding technologies, ship repair technologies, and shipbuilding management technologies;
"(B) assessments of potential markets for maritime products; and
"(C) recommendation of industrial entities, partnerships, joint ventures, or consortia for short- and long-term manufacturing technology investment strategies.
"(2) Funding and program management activities to develop innovative design and production processes and the technologies required to implement those processes.
"(3) Facilitation of industry and Government technology development and technology transfer activities (including education and training, market assessments, simulations, hardware models and prototypes, and national and regional industrial base studies).
"(4) Integration of promising technology advances made in the Technology Reinvestment Program of the Defense Advanced Research Projects Agency into the National Shipbuilding Initiative to effect full defense conversion potential.
"(b)
"(1)
"(2)
[For transfer of authorities, functions, personnel, and assets of the Coast Guard, including the authorities and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security, and for treatment of related references, see sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6.]
Industrial Diversification Planning for Defense Contractors