§2501. Congressional defense policy concerning national technology and industrial base, reinvestment, and conversion
(a)
(1) Supplying and equipping 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. 404a);
(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, and logistics for 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 and produce 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) Furthering the missions of the Department of Defense through the support of policy objectives and programs relating to the defense reinvestment, diversification, and conversion objectives specified in subsection (b).
(b)
(1) promote economic growth in high-wage, high-technology industries and preserve the industrial and technical skill base;
(2) promote economic growth through further reduction of the Federal budget deficit that, by reducing the public sector demand for capital, increases the amount of capital available for private investment and job creation in the civilian sector;
(3) bolster the national technology base, including support and exploitation of critical technologies with both military and civilian application;
(4) support retraining of separated military, defense civilian, and defense industrial personnel for jobs in activities important to national economic growth and security;
(5) assist those activities being undertaken at the State and local levels to support defense economic reinvestment, conversion, adjustment, and diversification activities; and
(6) assist small businesses adversely affected by reductions in defense expenditures.
(c)
(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.
(Added
Prior Provisions
A prior section 2501, added
Another prior section 2501 was renumbered section 2533 of this title.
Amendments
1993-Subsec. (a)(1)(A).
Subsec. (a)(5).
Subsec. (b)(2).
Documentation for Awards for Cooperative Agreements or Other Transactions Under Defense Technology Reinvestment Programs
Reports on Defense Conversion, Reinvestment, and Transition Assistance Programs
Section 1303 of
"(a)
"(b)
"(1) The status of the obligation of appropriated funds for each defense conversion, reinvestment, and transition assistance program.
"(2) With respect to each component of the dual-use partnership program element specified in paragraphs (1) through (10) of section 1311(b) [
"(A) the extent to which the component meets the objectives set forth in section 2501 of title 10, United States Code;
"(B) the technology benefits of the component to the national technology and industrial base;
"(C) any evidence of commercialization of technologies developed under the component;
"(D) the extent to which the investments under the component have affected levels of employment;
"(E) the number of defense firms participating in cooperative agreements or other arrangements under the component;
"(F) the extent to which matching fund requirements of the component were met by cash contributions by the non-Federal Government participants;
"(G) the extent to which defense technology reinvestment projects under the component have met milestones and financial and technical requirements;
"(H) the extent to which the component is integrated with technology programs conducted by other Federal agencies; and
"(I) the number of proposals under the component that were received from small business concerns and the number of awards made to small business concerns.
"(3) With respect to each personnel assistance program conducted under subtitle C of this title [subtitle C, §§1331–1339 of title XIII of div. A of
"(A) the extent to which the program meets the objectives set forth in section 2501(b) of title 10, United States Code;
"(B) the number of individuals eligible for transition assistance under the program;
"(C) the number of individuals directly receiving transition assistance under the program and the projected number of individuals who will directly receive transition assistance;
"(D) in the case of a job training program, an estimate of the number of individuals who have secured permanent employment as a result of participation in the program; and
"(E) the extent to which the transition assistance activities under the program duplicated other transition assistance provided or administered outside the Department of Defense.
"(c)
National Shipbuilding Initiative
Sections 1351 to 1354 of
"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 ADVANCED RESEARCH PROJECTS AGENCY.
"The Secretary of Defense shall designate the 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. ADVANCED RESEARCH PROJECTS AGENCY FUNCTIONS AND MINIMUM FINANCIAL COMMITMENT OF NON-FEDERAL GOVERNMENT PARTICIPANTS.
"(a) ARPA
"(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 Advanced Research Projects Agency into the National Shipbuilding Initiative to effect full defense conversion potential.
"(b)
"(1)
"(2)
Armament Retooling and Manufacturing Support Initiative
Subtitle H of title I of div. A of
"SEC. 191. SHORT TITLE.
"This subtitle may be cited as the 'Armament Retooling and Manufacturing Support Act of 1992'.
"SEC. 192. POLICY.
"It is the policy of the United States-
"(1) to encourage, to the maximum extent practicable, nondefense commercial firms to use Government-owned, contractor-operated ammunition manufacturing facilities of the Department of the Army;
"(2) to use such facilities for supporting programs, projects, policies, and initiatives that promote competition in the private sector of the United States economy and that advance United States interests in the global marketplace;
"(3) to increase the manufacture of products inside the United States that, to a significant extent, are manufactured outside the United States;
"(4) to support policies and programs that provide manufacturers with incentives to assist the United States in making more efficient and economical use of Government-owned industrial plants and equipment for commercial purposes;
"(5) to provide, as appropriate, small businesses (including socially and economically disadvantaged small business concerns and new small businesses) with incentives that encourage those businesses to undertake manufacturing and other industrial processing activities that contribute to the prosperity of the United States;
"(6) to encourage the creation of jobs through increased investment in the private sector of the United States economy;
"(7) to foster a more efficient, cost-effective, and adaptable armaments industry in the United States;
"(8) to achieve, with respect to armaments manufacturing capacity, an optimum level of readiness of the defense industrial base of the United States that is consistent with the projected threats to the national security of the United States and the projected emergency requirements of the Armed Forces of the United States; and
"(9) to encourage facility contracting where feasible.
"SEC. 193. ARMAMENT RETOOLING AND MANUFACTURING SUPPORT INITIATIVE.
"(a)
"(b)
"(1) To encourage commercial firms, to the maximum extent practicable, to use Government-owned, contractor-operated ammunition manufacturing facilities of the Department of the Army for commercial purposes.
"(2) To increase the opportunities for small businesses (including socially and economically disadvantaged small business concerns and new small businesses) to use such facilities for those purposes.
"(3) To reduce the adverse effects of reduced Department of the Army spending that are experienced by States and communities by providing for such facilities to be used for commercial purposes that create jobs and promote prosperity.
"(4) To provide for the reemployment and retraining of skilled workers who, as a result of the closing of such facilities, are idled or underemployed.
"(5) To contribute to the attainment of economic stability in economically depressed regions of the United States where there are Government-owned, contractor-operated ammunition manufacturing facilities of the Department of the Army.
"(6) To maintain in the United States a work force having the skills in manufacturing processes that are necessary to meet industrial emergency planned requirements for national security purposes.
"(7) To be a model for future defense conversion initiatives.
"(8) To the maximum extent practicable, to allow the operation of Government-owned, contractor-operated ammunition manufacturing facilities of the Department of the Army to be rapidly responsive to the forces of free market competition.
"(9) Through the use of Government-owned, contractor-operated ammunition manufacturing facilities for commercial purposes, to encourage relocation of industrial production to the United States from outside the United States.
"(c)
"SEC. 194. FACILITIES CONTRACTS.
"(a)
"(1) to use the facility for one or more years consistent with the purposes of the ARMS Initiative; and
"(2) to enter into multiyear subcontracts for the commercial use of the facility consistent with such purposes.
"(b)
"(1) is authorized to manufacture ammunition or any component of ammunition at the facility; and
"(2) is responsible for the overall operation and maintenance of the facility for meeting planned requirements in the event of an industrial emergency.
"SEC. 195. ARMS INITIATIVE LOAN GUARANTEE PROGRAM.
"(a)
"(b)
"(c)
"(A) process applications for loan guarantees;
"(B) guarantee repayment of loans; and
"(C) provide any other services to the Secretary to administer the loan guarantee program.
"(2) Each Administrator may guarantee loans under this section to commercial firms of any size, notwithstanding any limitations on the size of applicants imposed on other loan guarantee programs that the Administrator administers.
"(3) To the extent practicable, each Administrator shall use the same procedures for processing loan guarantee applications under this section as the Administrator uses for processing loan guarantee applications under other loan guarantee programs that the Administrator administers.
"(d)
"(1) $20,000,000, with respect to any single borrower; and
"(2) $320,000,000 with respect to all borrowers.
"(e)
"(f)
"SEC. 196. REPORTING REQUIREMENT.
"Not later than July 1, 1993, the Secretary of the Army shall submit to the congressional defense committees a report on the ARMS Initiative. The report shall contain-
"(1) a comprehensive review of contracting of Government-owned, contractor-operated ammunition manufacturing facilities, under the ARMS Initiative; and
"(2) any recommendations the Secretary may have for changes to the ARMS Initiative."
Implementation of Requirements for Assessment, Planning, and Analysis
Section 4218 of
"(a)
"(b)
"(2) The first plan required by section 2506 of such title, as added by section 4216, shall be completed not later than December 1, 1993.
"(3) The Secretary may prescribe regulations authorizing the presentation of information in a preliminary form in the first periodic assessment and the first periodic plan to the extent that the necessary information cannot reasonably be collected, analyzed, or presented in accordance with section 2505 or 2506, respectively, of title 10, United States Code, by the dates specified in paragraphs (1) and (2).
"(c)
"(1) An identification of textile and apparel mobilization requirements of the Department of Defense that cannot be satisfied on a timely basis by domestic industries.
"(2) An assessment of the effect that any inadequacy in the textile and apparel industrial base would have on a mobilization.
"(3) Recommendations for ways to alleviate any such inadequacy that the Secretary considers critical to national defense mobilization requirements."
Industrial Diversification Planning for Defense Contractors
Section 4239 of
Notice to Contractors and Employees Upon Proposed and Actual Termination or Substantial Reduction in Major Defense Programs
Section 4471 of
"(a)
"(1) directly to each prime contractor under that program; and
"(2) by general notice through publication in the Federal Register.
"(b)
"(1) shall determine which major defense programs (if any) of the Department of Defense that were not previously identified under subsection (a) are likely to be terminated or substantially reduced as a result of the funding levels provided in that Act; and
"(2) shall provide notice of the anticipated termination of, or substantial reduction in, that program-
"(A) directly to each prime contractor under that program;
"(B) directly to the Secretary of Labor; and
"(C) by general notice through publication in the Federal Register.
"(c)
"(1) provide notice of that termination or substantial reduction to each person that is a first-tier subcontractor for that program under a contract in an amount not less than $500,000 for the program; and
"(2) require that each such subcontractor-
"(A) provide such notice to each of its subcontractors for the program under a contract in an amount in excess of $100,000; and
"(B) impose a similar notice and pass through requirement to subcontractors in an amount in excess of $100,000 at all tiers.
"(d)
"(1)(A) each representative of employees whose work is directly related to the defense contract under such program and who are employed by the defense contractor; or
"(B) if there is no such representative at that time, each such employee; and
"(2) the State dislocated worker unit or office described in section 311(b)(2) of the Job Training Partnership Act (29 U.S.C. 1661(b)(2)) and the chief elected official of the unit of general local government within which the adverse effect may occur.
"(e)
"(f)
"(1)
"(2)
"(3)
"(A) to each representative of employees whose work is directly related to the defense contract under the program and who are employed by the contractor or subcontractor or, if there is no such representative at that time, each such employee;
"(B) to the State dislocated worker unit or office described in section 311(b)(2) of the Job Training Partnership Act (29 U.S.C. 1661(b)(2)) and the chief elected official of the unit of general local government within which the adverse effect may occur; and
"(C) to each grantee under section 325(a) or 325A(a) of the Job Training Partnership Act (29 U.S.C. 1662d, 1662d–1) providing training, adjustment assistance, and employment services to an employee described in this paragraph.
"(4)
"(g)
"(1) The term 'major defense program' means a program that is carried out to produce or acquire a major system (as defined in section 2302(5) of title 10, United States Code).
"(2) The terms 'substantial reduction' and 'substantially reduced', with respect to a major defense program, mean a reduction of 25 percent or more in the total dollar value of contracts under the program."
Section Referred to in Other Sections
This section is referred to in sections 2502, 2505, 2506, 2511, 2512, 2513, 2514, 2515, 2516, 2519, 2520, 2522, 2523, 2524, 2525 of this title.