§2523. Manufacturing extension programs

(a) Use of Programs.-The Secretary of Defense, acting through the Under Secretary of Defense for Acquisition and Technology, and in coordination with the Secretary of Commerce and the Secretary of Energy, shall promote the improvement of the subtier defense industry through use of manufacturing extension programs. Manufacturing extension programs so used shall include programs carried out by the Secretary of Commerce pursuant to section 25 and section 26 of the Act of March 3, 1901 (15 U.S.C. 278k and 278l) and section 5121(b) of the Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C. 278l note).

(b) Program Requirements.-(1) The Secretary of Defense, in consultation with the Secretary of Commerce, shall, in order to further the national security objectives set forth in section 2501(a) of this title, establish a program-

(A) to support existing manufacturing extension programs of regions, States, local governments, and private, nonprofit organizations;

(B) to promote the development of a broad range of such programs that will benefit both the national security and the economic prosperity of the United States; and

(C) to increase the involvement of appropriate segments of the private sector in activities that improve the manufacturing quality, productivity, and performance of United States-based small manufacturing firms.

(2) In awarding financial assistance under the program, the Secretary, on the basis of merit pursuant to a competitive selection process, shall select manufacturing extension programs that demonstrate evidence of the following:

(A) Comprehensive and high quality services, including staff with significant experience in industrial manufacturing.

(B) Significant involvement by, and support from, private industry.

(C) The potential for assisting a significant number of United States-based small manufacturing firms with a limited expenditure of Federal funds.

(3)(A) The Secretary shall ensure that the amount of financial assistance furnished by the Federal Government to a manufacturing extension program under this subsection may not exceed 50 percent of the total cost of the program. Financial assistance shall be provided to a recipient program for a period of five years unless such financial assistance is earlier terminated for good cause. Recipients of such financial assistance shall be required to report to the Secretary annually beginning one year after the date that such financial assistance is initiated. Such report shall include a description of the progress of the recipient program in meeting the objectives set out in paragraph (1).

(B) The Secretary of Defense shall require a major evaluation of each manufacturing extension program receiving financial assistance under this subsection. The evaluation shall be conducted during the third year that such program receives such financial assistance. If, on the basis of such evaluation, the Secretary finds that the financial assistance to the extension program should be terminated for good cause, the Secretary shall provide sufficient financial assistance to terminate that program. The amount of that assistance may not exceed the amount that would otherwise have been provided for continuing the financial assistance to the recipient program through the end of the fourth year.

(C) Subparagraphs (A) and (B) do not prohibit a recipient program from reapplying for financial assistance under this subsection upon the expiration or termination of the furnishing of financial assistance under this subsection. The application for additional financial assistance shall be subject to the requirements and procedures set out in this subsection in the same manner and to the same extent as initial applications for financial assistance under this subsection.

(D) The Secretary may prescribe regulations to provide for consideration of in-kind contributions by non-Federal Government participants in a manufacturing extension program for the purpose of calculating the share of the costs that has been or is being undertaken by such participants. In such regulations, the Secretary may authorize a participant that is a small business concern to use funds received under the Small Business Innovation Research Program or the Small Business Technology Transfer Program to help pay the costs of the program. Any such funds so used may be considered in calculating the amount of the financial commitment undertaken by the non-Federal Government participants unless the Secretary determines that the small business concern has not made a significant equity percentage contribution in the program from non-Federal sources.

(4) The Secretary of Defense and the Secretary of Commerce shall enter into an agreement for carrying out the program established pursuant to this subsection. The agreement shall include procedures to ensure that the program is fully coordinated with related manufacturing programs of the Department of Commerce.

(Added Pub. L. 101–510, div. A, title VIII, §823(a)(3), Nov. 5, 1990, 104 Stat. 1602 , §2517; amended Pub. L. 102–190, div. A, title VIII, §824(a), Dec. 5, 1991, 105 Stat. 1436 ; renumbered §2523 and amended Pub. L. 102–484, div. D, title XLII, §4233(a), (b), Oct. 23, 1992, 106 Stat. 2687 ; Pub. L. 103–160, div. A, title IX, §904(d)(1), title XI, §1182(b)(2), title XIII, §1315(d), Nov. 30, 1993, 107 Stat. 1728 , 1772, 1787.)

References in Text

Section 5121(b) of the Omnibus Trade and Competitiveness Act of 1988 [Pub. L. 100–418], referred to in subsec. (a), is set out as a note under section 278l of Title 15, Commerce and Trade.

Prior Provisions

A prior section 2523, added Pub. L. 102–190, div. A, title VIII, §821(a), Dec. 5, 1991, 105 Stat. 1427 , related to defense dual-use critical technology partnerships, prior to repeal and restatement in section 2511 of this title by Pub. L. 102–484, §§4202(a), 4221(a).

Amendments

1993-Subsec. (a). Pub. L. 103–160, §1182(b)(2)(A), inserted heading.

Pub. L. 103–160, §904(d)(1), substituted "Under Secretary of Defense for Acquisition and Technology" for "Under Secretary of Defense for Acquisition".

Subsec. (b). Pub. L. 103–160, §1182(b)(2)(B), inserted heading.

Subsec. (b)(3)(A). Pub. L. 103–160, §1315(d)(1), substituted "The Secretary shall ensure that the amount of financial assistance furnished by the Federal Government to a manufacturing extension program under this subsection may not exceed 50 percent of the total cost of the program" for "The amount of financial assistance furnished to a manufacturing extension program under this subsection may not exceed the total amount provided by non-Federal Government participants in the program for the period for which the assistance is to be provided".

Subsec. (b)(3)(D). Pub. L. 103–160, §1315(d)(2), added subpar. (D).

1992-Pub. L. 102–484, §4233(a), renumbered section 2517 of this title as this section.

Subsec. (b)(1). Pub. L. 102–484, §4233(b), inserted ", in order to further the national security objectives set forth in section 2501(a) of this title," after "shall".

1991-Pub. L. 102–190 designated existing provisions as subsec. (a), struck out before period at end of first sentence "and other existing organizations chartered to help small manufacturers for the purpose of disseminating such Department of Defense manufacturing concepts as best manufacturing practices, product data exchange specification, computer-aided acquisition and logistics support, and rapid acquisition of manufactured parts", inserted "and section 26" after "section 25" and "and 278l" after "278k" in second sentence, and added subsec. (b).

Application of 1993 Amendments to Existing Technology Reinvestment Projects

Amendment by section 1315(d) of Pub. L. 103–160 not to alter financial commitment requirements in effect on the day before Nov. 30, 1993, for non-Federal Government participants in a project funded under section 2511, 2512, 2513, 2523, or 2524 of this title, using funds appropriated for a fiscal year beginning before Oct. 1, 1993, see section 1315(g) of Pub. L. 103–160, set out as a note under section 2511 of this title.