§2501. National security objectives concerning national technology and industrial base

(a) National Security Objectives for National Technology and Industrial Base.-It is the policy of Congress that the national technology and industrial base be capable of meeting the following national security objectives:

(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) 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.

(b) Civil-Military Integration Policy.-It is the policy of Congress that the United States attain the national technology and industrial base objectives set forth in subsection (a) through acquisition policy reforms that have the following objectives:

(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 Pub. L. 102–484, div. D, title XLII, §4211, Oct. 23, 1992, 106 Stat. 2662 ; amended Pub. L. 103–35, title II, §201(c)(7), May 31, 1993, 107 Stat. 98 ; Pub. L. 103–160, div. A, title XI, §1182(a)(10), title XIII, §1313, Nov. 30, 1993, 107 Stat. 1771 , 1786; Pub. L. 104–106, div. A, title X, §1081(a), Feb. 10, 1996, 110 Stat. 452 ; Pub. L. 104–201, div. A, title VIII, §829(a), Sept. 23, 1996, 110 Stat. 2612 .)

Prior Provisions

A prior section 2501, added Pub. L. 100–456, div. A, title VIII, §821(b)(1)(B), Sept. 29, 1988, 102 Stat. 2014 , related to centralized guidance, analysis, and planning, prior to repeal by Pub. L. 102–484, §4202(a).

Another prior section 2501 was renumbered section 2533 of this title.

Amendments

1996-Pub. L. 104–106, §1081(a)(2), substituted "National security objectives concerning national technology and industrial base" for "Congressional defense policy concerning national technology and industrial base, reinvestment, and conversion" as section catchline.

Subsec. (a). Pub. L. 104–106, §1081(a)(1)(A)(i), substituted "National Security" for "Defense Policy" in heading.

Subsec. (a)(5). Pub. L. 104–201 added par. (5).

Pub. L. 104–106, §1081(a)(1)(A)(ii), struck out par. (5) which read as follows: "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)."

Subsecs. (b), (c). Pub. L. 104–106, §1081(a)(1)(B), (C), redesignated subsec. (c) as (b) and struck out former subsec. (b) which stated policy objectives of Congress relating to defense reinvestment, diversification, and conversion.

1993-Subsec. (a)(1)(A). Pub. L. 103–35 substituted "section 108" for "section 104".

Subsec. (a)(5). Pub. L. 103–160, §1313, added par. (5).

Subsec. (b)(2). Pub. L. 103–160, §1182(a)(10), substituted "that, by reducing the public sector demand for capital, increases the amount of capital available" for "and thereby free up capital".

Requirement for Separate Reports on Technology Area Review and Assessment Summaries

Pub. L. 109–163, div. A, title II, §253(c), Jan. 6, 2006, 119 Stat. 3180 , provided that: "Whenever the Secretary of Defense provides for the conduct of a study referred to as a Technology Area Review and Assessment, the Secretary shall, not later than March 1 of the year following the year in which that study is conducted, submit to the congressional defense committees [Committees on Armed Services and Appropriations of the Senate and the House of Representatives] a report containing a summary of each such Technology Area Review and Assessment conducted during that year."

Essential Items Identification and Domestic Production Capabilities Improvement Program

Pub. L. 108–136, div. A, title VIII, subtitle B, part I, Nov. 24, 2003, 117 Stat. 1542 , as amended by Pub. L. 109–364, div. A, title VIII, §841, Oct. 17, 2006, 120 Stat. 2335 , provided that:

"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 Pub. L. 108–136, enacting section 2436 of this title, amending sections 2533a and 2534 of this title, and enacting provisions set out as notes under sections 2436, 2505, 2521, and 2534 of this title] or any amendment made by this subtitle shall apply to the extent the Secretary of Defense, in consultation with the Secretary of Commerce, the United States Trade Representative, and the Secretary of State, determines that it is inconsistent with United States obligations under an international agreement.

"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) Assessment Program.-(1) The Secretary of Defense shall establish a program to assess-

"(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 2501 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) Use of Existing Data.-(1) At a minimum, with respect to each prime contract with a value greater than $25,000 for the procurement of defense items and components, the following information from existing sources shall be used for purposes of the assessment program:

"(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 6(d)(4)(A) of the Office of Federal Procurement Policy Act (41 U.S.C. 405(d)(4)(A)), 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 2507 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) Annual Report.-(1) Not later than February 1 of each year, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the assessment program covering the preceding fiscal year. The first report under this subsection shall cover fiscal year 2004 and shall be submitted to the Committees no later than February 1, 2005.

"(2)(A) The report shall include the following with respect to contracts described in subsection (b):

"(i) The total number and value of such contracts awarded by the Department of Defense.

"(ii) The total number and value of such contracts awarded on a sole source basis.

"(iii) The total number and value of contracts described in clause (ii) awarded to foreign contractors, summarized by country.

"(iv) The total number and value of contracts awarded to foreign contractors through competitive procedures, summarized by country.

"(v) The dollar value of any articles, materials, or supplies purchased that were manufactured outside of the United States.

"(vi) An itemized list of all waivers granted with respect to such articles, materials, or supplies under the Buy American Act (41 U.S.C. 10a et seq.).

"(vii) A summary of-

"(I) the total procurement funds expended on articles, materials, and supplies manufactured inside the United States; and

"(II) the total procurement funds expended on articles, materials, and supplies manufactured outside the United States.

"(B) The report also shall include-

"(i) the status of the matters described in subparagraphs (A) and (B) of subsection (a)(1);

"(ii) the status of implementation of successor procurement data management systems; and

"(iii) such other matters as the Secretary considers appropriate.

"(d) Public Availability.-The Secretary of Defense shall make the report submitted under subsection (c) publicly available to the maximum extent practicable.

"(e) Applicability.-This section shall not apply to acquisitions made by an agency, or component thereof, that is an element of the intelligence community as set forth in or designated under section 3(4) of the National Security Act of 1947 (50 U.S.C. 401a(4)).

"SEC. 813. IDENTIFICATION OF ESSENTIAL ITEMS: MILITARY SYSTEM BREAKOUT LIST.

"(a) Identification Process.-(1) The Secretary of Defense shall establish a process, using the Defense Logistics Information System existing database, to identify, with respect to each military system-

"(A) the essential items, assemblies, and components of the system that are active items, assemblies, and components;

"(B) foreign and domestic sources of supply for active items, assemblies, and components of the system;

"(C) the active items, assemblies, and components of the system that are commercial; and

"(D) Federal Supply Class and North American Industry Classification System Codes for active items, assemblies, and components of the system.

"(2) Any modification to the logistics management system or any successor system of the Department of Defense shall maintain the capability to identify-

"(A) essential items, assemblies, and components described in paragraph (1)(A);

"(B) foreign and domestic sources of supply for active items, assemblies, and components;

"(C) the active items, assemblies, and components of the system that are commercial; and

"(D) Federal Supply Class and North American Industry Classification System Codes for active items, assemblies, and components.

"(3) 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.

"(b) Military System Essential Item Breakout List.-The Secretary of Defense shall produce a list, to be known as the 'military system essential item breakout list', consisting of the items, assemblies, and components identified under subsection (a)(1)(A). In producing the list, the Secretary of Defense shall consider the results of the report under subsection (c).

"(c) Assessment.-Not later than 18 months after the date of the enactment of this Act [Nov. 24, 2003], the Secretary of Defense, acting through a federally funded research and development center, shall prepare a report that-

"(1) assesses the criteria that should be used for identifying whether an item, assembly, or component is essential to a military system; and

"(2) recommends which items, assemblies, and components should be included on the military system essential item breakout list under subsection (b).

"(d) Report.-(1) Not later than November 1 of each year, beginning with November 1, 2005, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the implementation of this section. The report may be submitted in classified and unclassified form.

"(2) The report shall include the following:

"(A) A list of each military system covered by the process established under subsection (a).

"(B) A list of the items, assemblies, and components on the military system essential item breakout list that are manufactured or produced outside the United States, setting forth military and commercial separately.

"(C) The portion of the entire military system essential item breakout list that consists of the items, assemblies, and components listed under subparagraph (B) (stated as a percentage).

"(D) A list of each Federal Supply Class and North American Industry Classification System Code represented on the military system essential item breakout list, and the portion of the entire military system essential item breakout list that consists of items, assemblies, or components in such classes or codes (stated as a percentage).

"(E) A list of each country outside the United States where the items, assemblies, and components listed under subparagraph (B) are manufactured or produced, and the portion of the entire military system essential item breakout list that consists of-

"(i) the items, assemblies, or components manufactured or produced in that country, setting forth military and commercial separately (stated as a percentage); and

"(ii) the Federal Supply Classes and North American Industry Classification System Codes represented by those items, assemblies, or components (stated as a percentage).

"(3) The Secretary shall submit an interim version of the report required by this subsection not later than February 1, 2005, containing as much information as is practicable to be included by such date.

"SEC. 814. PRODUCTION CAPABILITIES IMPROVEMENT FOR CERTAIN ESSENTIAL ITEMS USING DEFENSE INDUSTRIAL BASE CAPABILITIES FUND.

"(a) Establishment of Fund.-There is established in the Treasury of the United States a separate fund to be known as the Defense Industrial Base Capabilities Fund (hereafter in this section referred to as the 'Fund').

"(b) Moneys in Fund.-There shall be credited to the Fund amounts appropriated to it.

"(c) Use of Fund.-The Secretary of Defense is authorized to use all amounts in the Fund, subject to appropriation, for the purposes of enhancing or reconstituting United States industrial capability to produce items on the military system essential item breakout list (as described in section 812(b)) or items subject to section 2534 of title 10, United States Code, in the quantity and of the quality necessary to achieve national security objectives.

"(d) Limitation on Use of Fund.-Before the obligation of any amounts in the Fund, the Secretary of Defense shall submit to Congress a report describing the Secretary's plans for implementing the Fund established in subsection (a), including the priorities for the obligation of amounts in the Fund, the criteria for determining the recipients of such amounts, and the mechanisms through which such amounts may be provided to the recipients.

"(e) Availability of Funds.-Amounts in the Fund shall remain available until expended.

"(f) Fund Manager.-The Secretary of Defense shall designate a Fund manager. The duties of the Fund manager shall include-

"(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."

Air Force Science and Technology Planning

Pub. L. 107–107, div. A, title II, subtitle D, Dec. 28, 2001, 115 Stat. 1041 , provided that:

"SEC. 251. SHORT TITLE.

"This subtitle may be cited as the 'Air Force Science and Technology for the 21st Century Act'.

"SEC. 252. SCIENCE AND TECHNOLOGY INVESTMENT AND DEVELOPMENT PLANNING.

"(a) Sense of Congress.-It is the sense of Congress that the Secretary of the Air Force should carry out each of the following:

"(1) Continue and improve efforts to ensure that-

"(A) the Air Force science and technology community is represented, and the recommendations of that community are considered, at all levels of program planning and budgetary decisionmaking within the Air Force;

"(B) advocacy for science and technology development is institutionalized across all levels of Air Force management in a manner that is not dependent on individuals; and

"(C) the value of Air Force science and technology development is made increasingly apparent to the warfighters, by linking the needs of those warfighters with decisions on science and technology development.

"(2) Complete and adopt a policy directive that provides for changes in how the Air Force makes budgetary and nonbudgetary decisions with respect to its science and technology development programs and how it carries out those programs.

"(3) At least once every five years, conduct a review of the long-term challenges and short-term objectives of the Air Force science and technology programs that is consistent with the review specified in section 252 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (as enacted into law by Public Law 106–398; 114 Stat. 1654A–46 [set out as a note below]).

"(4) Ensure that development and science and technology planning and investment activities are carried out for future space warfighting systems and for future nonspace warfighting systems in an integrated manner.

"(5) Elevate the position within the Office of the Secretary of the Air Force that has primary responsibility for budget and policy decisions for science and technology programs.

"(b) Reinstatement of Development Planning.-(1) The Secretary of the Air Force shall reinstate and implement a revised development planning process that provides for each of the following:

"(A) Coordinating the needs of Air Force warfighters with decisions on science and technology development.

"(B) Giving input into the establishment of priorities among science and technology programs.

"(C) Analyzing Air Force capability options for the allocation of Air Force resources.

"(D) Developing concepts for technology, warfighting systems, and operations with which the Air Force can achieve its critical future goals.

"(E) Evaluating concepts for systems and operations that leverage technology across Air Force organizational boundaries.

"(F) Ensuring that a 'system-of-systems' approach is used in carrying out the various Air Force capability planning exercises.

"(G) Utilizing existing analysis capabilities within the Air Force product centers in a collaborative and integrated manner.

"(2) Not later than one year after the date of the enactment of this Act [Dec. 28, 2001], the Secretary of the Air Force shall submit to Congress a report on the implementation of the planning process required by paragraph (1). The report shall include the annual amount that the Secretary considers necessary to carry out paragraph (1).

"SEC. 253. STUDY AND REPORT ON EFFECTIVENESS OF AIR FORCE SCIENCE AND TECHNOLOGY PROGRAM CHANGES.

"(a) Requirement.-The Secretary of the Air Force, in cooperation with the National Research Council of the National Academy of Sciences, shall carry out a study to determine how the changes to the Air Force science and technology program implemented during the past two years affect the future capabilities of the Air Force.

"(b) Matters Studied.-(1) The study shall review and assess whether such changes as a whole are sufficient to ensure the following:

"(A) That the concerns about the management of the science and technology program that have been raised by Congress, the Defense Science Board, the Air Force Science Advisory Board, and the Air Force Association have been adequately addressed.

"(B) That appropriate and sufficient technology is available to ensure the military superiority of the United States and counter future high-risk threats.

"(C) That the science and technology investments are balanced to meet the near-, mid-, and long-term needs of the Air Force.

"(D) That technologies are made available that can be used to respond flexibly and quickly to a wide range of future threats.

"(E) That the Air Force organizational structure provides for a sufficiently senior level advocate of science and technology to ensure an ongoing, effective presence of the science and technology community during the budget and planning process.

"(2) In addition, the study shall assess the specific changes to the Air Force science and technology program as follows:

"(A) Whether the biannual science and technology summits provide sufficient visibility into, and understanding and appreciation of, the value of the science and technology program to the senior level of Air Force budget and policy decisionmakers.

"(B) Whether the applied technology councils are effective in contributing the input of all levels beneath the senior leadership into the coordination, focus, and content of the science and technology program.

"(C) Whether the designation of the commander of the Air Force Materiel Command as the science and technology budget advocate is effective to ensure that an adequate Air Force science and technology budget is requested.

"(D) Whether the revised development planning process is effective to aid in the coordination of the needs of the Air Force warfighters with decisions on science and technology investments and the establishment of priorities among different science and technology programs.

"(E) Whether the implementation of section 252 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (as enacted into law by Public Law 106–398; 114 Stat. 1654A–46 [set out as a note below]) is effective to identify the basis for the appropriate science and technology program funding level and investment portfolio.

"(c) Report.-Not later than May 1, 2003, the Secretary of the Air Force shall submit to Congress the results of the study."

Pub. L. 106–398, §1 [[div. A], title II, §252], Oct. 30, 2000, 114 Stat. 1654 , 1654A-46, provided that:

"(a) Requirement for Review.-The Secretary of the Air Force shall conduct a review of the long-term challenges and short-term objectives of the Air Force science and technology programs. The Secretary shall complete the review not later than one year after the date of the enactment of this Act [Oct. 30, 2000].

"(b) Matters To Be Reviewed.-The review shall include the following:

"(1) An assessment of the budgetary resources that are being used for fiscal year 2001 for addressing the long-term challenges and the short-term objectives of the Air Force science and technology programs.

"(2) The budgetary resources that are necessary to address those challenges and objectives adequately.

"(3) A course of action for each projected or ongoing Air Force science and technology program that does not address either the long-term challenges or the short-term objectives.

"(4) The matters required under subsection (c)(5) and (d)(6).

"(c) Long-Term Challenges.-(1) The Secretary of the Air Force shall establish an integrated product team to identify high-risk, high-payoff challenges that will provide a long-term focus and motivation for the Air Force science and technology programs over the next 20 to 50 years following the enactment of this Act [Oct. 30, 2000]. The integrated product team shall include representatives of the Office of Scientific Research and personnel from the Air Force Research Laboratory.

"(2) The team shall solicit views from the entire Air Force science and technology community on the matters under consideration by the team.

"(3) The team-

"(A) shall select for consideration science and technology challenges that involve-

"(i) compelling requirements of the Air Force;

"(ii) high-risk, high-payoff areas of exploration; and

"(iii) very difficult, but probably achievable, results; and

"(B) should not select a linear extension of any ongoing Air Force science and technology program for consideration as a science and technology challenge under subparagraph (A).

"(4) The Deputy Assistant Secretary of the Air Force for Science, Technology, and Engineering shall designate a technical coordinator and a management coordinator for each science and technology challenge identified pursuant to this subsection. Each technical coordinator shall have sufficient expertise in fields related to the challenge to be able to identify other experts in such fields and to affirm the credibility of the challenge. The coordinator for a science and technology challenge shall conduct workshops within the relevant scientific and technological community to obtain suggestions for possible approaches to addressing the challenge and to identify ongoing work that addresses the challenge, deficiencies in current work relating to the challenge, and promising areas of research.

"(5) In carrying out subsection (a), the Secretary of the Air Force shall review the science and technology challenges identified pursuant to this subsection and, for each such challenge, at a minimum-

"(A) consider the results of the workshops conducted pursuant to paragraph (4); and

"(B) identify any work not currently funded by the Air Force that should be performed to meet the challenge.

"(d) Short-Term Objectives.-(1) The Secretary of the Air Force shall establish a task force to identify short-term technological objectives of the Air Force science and technology programs. The task force shall be chaired by the Deputy Assistant Secretary of the Air Force for Science, Technology, and Engineering and shall include representatives of the Chief of Staff of the Air Force and the specified combatant commands of the Air Force.

"(2) The task force shall solicit views from the entire Air Force requirements community, user community, and acquisition community.

"(3) The task force shall select for consideration short-term objectives that involve-

"(A) compelling requirements of the Air Force;

"(B) support in the user community; and

"(C) likely attainment of the desired benefits within a five-year period.

"(4) The Deputy Assistant Secretary of the Air Force for Science, Technology, and Engineering shall establish an integrated product team for each short-term objective identified pursuant to this subsection. Each integrated product team shall include representatives of the requirements community, the user community, and the science and technology community with relevant expertise.

"(5) The integrated product team for a short-term objective shall be responsible for-

"(A) identifying, defining, and prioritizing the enabling capabilities that are necessary for achieving the objective;

"(B) identifying deficiencies in the enabling capabilities that must be addressed if the short-term objective is to be achieved; and

"(C) working with the Air Force science and technology community to identify science and technology projects and programs that should be undertaken to eliminate each deficiency in an enabling capability.

"(6) In carrying out subsection (a), the Secretary of the Air Force shall review the short-term science and technology objectives identified pursuant to this subsection and, for each such objective, at a minimum-

"(A) consider the work of the integrated product team conducted pursuant to paragraph (5); and

"(B) identify the science and technology work of the Air Force that should be undertaken to eliminate each deficiency in enabling capabilities that is identified by the integrated product team pursuant to subparagraph (B) of that paragraph.

"(e) Comptroller General Review.-(1) Not later than 90 days after the Secretary of the Air Force completes the review required by subsection (a), the Comptroller General shall submit to Congress a report on the results of the review. The report shall include the Comptroller General's assessment regarding the extent to which the review was conducted in compliance with the requirements of this section.

"(2) Immediately upon completing the review required by subsection (a), the Secretary of Defense shall notify the Comptroller General of the completion of the review. For the purposes of paragraph (1), the date of the notification shall be considered the date of the completion of the review."

Report by Under Secretary of Defense for Acquisition, Technology, and Logistics

Pub. L. 106–65, div. A, title II, §243, Oct. 5, 1999, 113 Stat. 551 , required the Under Secretary of Defense for Acquisition, Technology, and Logistics to submit to the congressional defense committees a report on the actions necessary to promote the research base and technological development needed for ensuring that the Armed Forces had the military capabilities necessary for meeting national security requirements over the next two to three decades.

Sense of Congress on Defense Science and Technology Program

Pub. L. 106–65, div. A, title II, §212, Oct. 5, 1999, 113 Stat. 542 , as amended by Pub. L. 108–136, div. A, title X, §1031(h)(1), Nov. 24, 2003, 117 Stat. 1604 ; Pub. L. 109–364, div. A, title II, §217, Oct. 17, 2006, 120 Stat. 2125 , provided that:

"(a) Failure To Comply With Funding Objective.-It is the sense of Congress that the Secretary of Defense has failed to comply with the funding objective for the Defense Science and Technology Program, as stated in section 214(a) of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (Public Law 105–261; 112 Stat. 1948) [set out as a note below], thus jeopardizing the stability of the defense technology base and increasing the risk of failure to maintain technological superiority in future weapon systems.

"(b) Funding Objective.-It is further the sense of Congress that, for each of the fiscal years 2001 through 2012, it should be an objective of the Secretary of Defense to increase the budget for the Defense Science and Technology Program, including the science and technology program within each military department, for the fiscal year over the budget for that program for the preceding fiscal year by a percent that is at least two percent above the rate of inflation as determined by the Office of Management and Budget."

"(c) Actions Following Failure To Comply With Objective.-If the proposed budget for a fiscal year covered by subsection (b) fails to comply with the objective set forth in that subsection, the Secretary of Defense shall submit to the congressional defense committees [Committees on Armed Services and Appropriations of the Senate and the House of Representatives], at the same time that the Department of Defense budget justification materials for the next fiscal year are submitted to Congress-

"(1) a detailed, prioritized list, including estimates of required funding, of highly-rated science and technology projects received by the Department through competitive solicitations and broad agency announcements which-

"(A) are not funded solely due to lack of resources, but

"(B) represent science and technology opportunities that support the research and development programs and goals of the military departments and the Defense Agencies; and

"(2) a report, in both classified and unclassified form, containing an analysis and evaluation of international research and technology capabilities, including an identification of any technology areas in which the United States may not have global technical leadership within the next 10 years, in each of the technology areas described in the following plans:

"(A) The most current Joint Warfighting Science and Technology Plan required by section 270 of the National Defense Authorization Act for Fiscal Year 1997 [Pub. L. 104–201] (10 U.S.C. 2501 note).

"(B) The Defense Technology Area Plan of the Department of Defense.

"(C) The Basic Research Plan of the Department of Defense."

Pub. L. 105–261, div. A, title II, §214, Oct. 17, 1998, 112 Stat. 1948 , provided that:

"(a) Funding Requirements for the Defense Science and Technology Program Budget.-It is the sense of Congress that, for each of the fiscal years 2000 through 2008, it should be an objective of the Secretary of Defense to increase the budget for the Defense Science and Technology Program for the fiscal year over the budget for that program for the preceding fiscal year by a percent that is at least two percent above the rate of inflation as determined by the Office of Management and Budget.

"(b) Guidelines for the Defense Science and Technology Program.-

"(1) Relationship of defense science and technology program to university research.-It is the sense of Congress that the following should be key objectives of the Defense Science and Technology Program:

"(A) The sustainment of research capabilities in scientific and engineering disciplines critical to the Department of Defense.

"(B) The education and training of the next generation of scientists and engineers in disciplines that are relevant to future defense systems, particularly through the conduct of basic research.

"(C) The continued support of the Defense Experimental Program to Stimulate Competitive Research and research programs at historically black colleges and universities and minority institutions.

"(2) Relationship of the defense science and technology program to commercial research and technology.-(A) It is the sense of Congress that, in supporting projects within the Defense Science and Technology Program, the Secretary of Defense should attempt to leverage commercial research, technology, products, and processes for the benefit of the Department of Defense.

"(B) It is the sense of Congress that funds made available for projects and programs of the Defense Science and Technology Program should be used only for the benefit of the Department of Defense, which includes-

"(i) the development of technology that has only military applications;

"(ii) the development of militarily useful, commercially viable technology; and

"(iii) the adaptation of commercial technology, products, or processes for military purposes.

"(3) Synergistic management of research and development.-It is the sense of Congress that the Secretary of Defense should have the flexibility to allocate a combination of funds available for the Department of Defense for basic and applied research and for advanced development to support any individual project or program within the Defense Science and Technology Program, but such flexibility should not change the allocation of funds in any fiscal year among basic and applied research and advanced development.

"(4) Management of science and technology.-It is the sense of Congress that-

"(A) management and funding for the Defense Science and Technology Program for each military department should receive a level of priority and leadership attention equal to the level received by program acquisition, and the Secretary of each military department should ensure that a senior official in the department holds the appropriate title and responsibility to ensure effective oversight and emphasis on science and technology;

"(B) to ensure an appropriate long-term focus for investments, a sufficient percentage of science and technology funds should be directed toward new technology areas, and annual reviews should be conducted for ongoing research areas to ensure that those funded initiatives are either integrated into acquisition programs or discontinued when appropriate;

"(C) the Secretary of each military department should take appropriate steps to ensure that sufficient numbers of officers and civilian employees in the department hold advanced degrees in technical fields; and

"(D) of particular concern, the Secretary of the Air Force should take appropriate measures to ensure that sufficient numbers of scientists and engineers are maintained to address the technological challenges faced in the areas of air, space, and information technology.

"(c) Study.-

"(1) Requirement.-The Secretary of Defense, in cooperation with the National Research Council of the National Academy of Sciences, shall conduct a study on the technology base of the Department of Defense.

"(2) Matters covered.-The study shall-

"(A) result in recommendations on the minimum requirements for maintaining a technology base that is sufficient, based on both historical developments and future projections, to project superiority in air and space weapons systems and in information technology;

"(B) address the effects on national defense and civilian aerospace industries and information technology of reducing funding below the goal described in subsection (a); and

"(C) result in recommendations on the appropriate levels of staff with baccalaureate, masters, and doctorate degrees, and the optimal ratio of civilian and military staff holding such degrees, to ensure that science and technology functions of the Department of Defense remain vital.

"(3) Report.-Not later than 120 days after the date on which the study required under paragraph (1) is completed, the Secretary shall submit to Congress a report on the results of the study.

"(d) Definitions.-In this section:

"(1) The term 'Defense Science and Technology Program' means basic and applied research and advanced development.

"(2) The term 'basic and applied research' means work funded in program elements for defense research and development under Department of Defense category 6.1 or 6.2.

"(3) The term 'advanced development' means work funded in program elements for defense research and development under Department of Defense category 6.3."

Biennial Joint Warfighting Science and Technology Plan

Pub. L. 104–201, div. A, title II, §270, Sept. 23, 1996, 110 Stat. 2469 , as amended by Pub. L. 106–65, div. A, title II, §242, title X, §1067(5), Oct. 5, 1999, 113 Stat. 551 , 774; Pub. L. 109–163, div. A, title II, §253(a), (b), Jan. 6, 2006, 119 Stat. 3179 , 3180, provided that:

"Not later than March 1 of each even-numbered year, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a plan for ensuring that the science and technology program of the Department of Defense supports the development of the future joint warfighting capabilities identified as priority requirements for the Armed Forces.

Cost Reimbursement Rules for Indirect Costs Attributable to Private Sector Work of Defense Contractors

Section 808 of Pub. L. 104–106 authorized Secretary of Defense to enter into agreements with defense contractors under which certain cost reimbursement rules would be applied and required submission of report to congressional defense committees not later than one year after Feb. 10, 1996, prior to repeal by Pub. L. 105–85, div. A, title X, §1027(d), Nov. 18, 1997, 111 Stat. 1880 . See section 7315 of this title.

Documentation for Awards for Cooperative Agreements or Other Transactions Under Defense Technology Reinvestment Programs

Pub. L. 103–337, div. A, title XI, §1118, Oct. 5, 1994, 108 Stat. 2870 , provided that: "At the time of the award for a cooperative agreement or other transaction under a program carried out under chapter 148 of title 10, United States Code, the head of the agency concerned shall include in the file pertaining to such agreement or transaction a brief explanation of the manner in which the award advances and enhances a particular national security objective set forth in section 2501(a) of such title or a particular policy objective set forth in [former] section 2501(b) of such title."

Reports on Defense Conversion, Reinvestment, and Transition Assistance Programs

Pub. L. 103–160, div. A, title XIII, §1303, Nov. 30, 1993, 107 Stat. 1784 , provided that during each of the fiscal years 1994, 1995, and 1996, the Secretary of Defense was to prepare a report that assessed the effectiveness of all defense conversion, reinvestment, and transition assistance programs, as defined in section 1302 of Pub. L. 103–160, 107 Stat. 1783 , during the preceding fiscal year.

National Shipbuilding Initiative

Sections 1351 to 1354 of Pub. L. 103–160, as amended by Pub. L. 104–201, div. A, title X, §1073(e)(1)(F), (2)(B), (3), Sept. 23, 1996, 110 Stat. 2658 , provided that:

"SEC. 1351. SHORT TITLE.

"This subtitle [subtitle D, §§1351–1363 of title XIII of div. A of Pub. L. 103–160, enacting sections 1279d, 1279e, and 1280a of the Appendix to Title 46, Shipping, amending section 31326 of Title 46 and sections 1271, 1273, 1274, and 1274a of the Appendix to Title 46, and enacting provisions set out as notes under sections 1279b and 1279d of the Appendix to Title 46] may be cited as the 'National Shipbuilding and Shipyard Conversion Act of 1993'.

"SEC. 1352. NATIONAL SHIPBUILDING INITIATIVE.

"(a) Establishment of Program.-There shall be a National Shipbuilding Initiative program, to be carried out to support the industrial base for national security objectives by assisting in the reestablishment of the United States shipbuilding industry as a self-sufficient, internationally competitive industry.

"(b) Administering Departments.-The program shall be carried out-

"(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) Program Elements.-The National Shipbuilding Initiative shall consist of the following program elements:

"(1) Financial incentives program.-A financial incentives program to provide loan guarantees to initiate commercial ship construction for domestic and export sales, encourage shipyard modernization, and support increased productivity.

"(2) Technology development program.-A technology development program, to be carried out within the Department of Defense by the Defense Advanced Research Projects Agency, to improve the technology base for advanced shipbuilding technologies and related dual-use technologies through activities including a development program for innovative commercial ship design and production processes and technologies.

"(3) Navy's affordability through commonality program.-Enhanced support by the Secretary of Defense for the shipbuilding program of the Department of the Navy known as the Affordability Through Commonality (ATC) program, to include enhanced support (A) for the development of common modules for military and commercial ships, and (B) to foster civil-military integration into the next generation of Naval surface combatants.

"(4) Navy's manufacturing technology and technology base programs.-Enhanced support by the Secretary of Defense for, and strengthened funding for, that portion of the Manufacturing Technology program of the Navy, and that portion of the Technology Base program of the Navy, that are in the areas of shipbuilding technologies and ship repair technologies.

"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 Functions.-The Secretary of Defense, acting through the Director of the Defense Advanced Research Projects Agency, shall carry out the following functions with respect to the National Shipbuilding Initiative program:

"(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) Financial Commitment of Non-Federal Government Participants.-

"(1) Maximum department of defense share.-The Secretary of Defense shall ensure that the amount of funds provided by the Secretary to a non-Federal government participant does not exceed 50 percent of the total cost of technology development and technology transfer activities.

"(2) Regulations.-The Secretary may prescribe regulations to provide for consideration of in-kind contributions by non-Federal Government participants in a partnership for the purpose of calculating the share of the partnership costs that has been or is being undertaken by such participants. In prescribing the regulations, the Secretary may determine that a participant that is a small business concern may use funds received under the Small Business Innovation Research Program or the Small Business Technology Transfer Program to help pay the costs of partnership activities. Any such funds so used may be included 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 contribution in the program from non-Federal sources."

[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.]

Armament Retooling and Manufacturing Support Initiative

Subtitle H of title I of div. A of Pub. L. 102–484, as amended by Pub. L. 103–35, title II, §202(a)(1), May 31, 1993, 107 Stat. 100 ; Pub. L. 103–337, div. A, title XI, §1141(a), (b), Oct. 5, 1994, 108 Stat. 2879 ; Pub. L. 104–201, div. A, title I, §143, Sept. 23, 1996, 110 Stat. 2449 ; Pub. L. 105–261, div. A, title I, §115, Oct. 17, 1998, 112 Stat. 1939 ; Pub. L. 106–65, div. A, title I, §116, Oct. 5, 1999, 113 Stat. 533 , known as the "Armament Retooling and Manufacturing Support Act of 1992", authorized the Secretary of the Army, during fiscal years 1993 through 2001, to carry out the Armament Retooling and Manufacturing Support Initiative, prior to repeal by Pub. L. 106–398, §1 [[div. A], title III, §344(d)], Oct. 30, 2000, 114 Stat. 1654 , 1654A-71.

Implementation of Requirements for Assessment, Planning, and Analysis

Section 4218 of Pub. L. 102–484 related to collection of information, completion of assessments, and issuance of plans required by this subchapter, prior to repeal by Pub. L. 104–201, div. A, title VIII, §829(h), Sept. 23, 1996, 110 Stat. 2614 .

Industrial Diversification Planning for Defense Contractors

Section 4239 of Pub. L. 102–484 provided that: "Not later than 120 days after the date of enactment of this Act [Oct. 23, 1992], the Secretary of Defense shall prescribe regulations to encourage defense contractors to engage in industrial diversification planning."

Notice to Contractors and Employees Upon Proposed and Actual Termination or Substantial Reduction in Major Defense Programs

Section 4471 of Pub. L. 102–484, as amended by Pub. L. 103–160, div. A, title XIII, §1372, Nov. 20, 1993, 107 Stat. 1817 ; Pub. L. 103–337, div. A, title XI, §1142, Oct. 5, 1994, 108 Stat. 2881 ; Pub. L. 104–201, div. A, title VIII, §824, Sept. 23, 1996, 110 Stat. 2610 ; Pub. L. 105–85, div. A, title X, §1073(d)(2)(C), Nov. 18, 1997, 111 Stat. 1905 ; Pub. L. 105–277, div. A, §101(f) [title VIII, §405(d)(7)(C), (f)(6)(C)], Oct. 21, 1998, 112 Stat. 2681–337 , 2681-419, 2681-430, provided that:

"(a) Notice Requirement After Enactment of Appropriations Act.-Each year, not later than 60 days after the date of the enactment of an Act appropriating funds for the military functions of the Department of Defense, the Secretary of Defense, in accordance with regulations prescribed by the Secretary-

"(1) shall identify each contract (if any) under major defense programs of the Department of Defense that will be terminated or substantially reduced as a result of the funding levels provided in that Act; and

"(2) shall ensure that notice of the termination of, or substantial reduction in, the funding of the contract is provided-

"(A) directly to the prime contractor under the contract; and

"(B) directly to the Secretary of Labor.

"(b) Notice to Subcontractors.-Not later than 60 days after the date on which the prime contractor for a contract under a major defense program receives notice under subsection (a), the prime contractor shall-

"(1) provide notice of that termination or substantial reduction to each person that is a first-tier subcontractor under that prime contract for subcontracts in an amount not less than $500,000; and

"(2) require that each such subcontractor-

"(A) provide such notice to each of its subcontractors for subcontracts 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.

"(c) Contractor Notice to Employees and State Dislocated Worker Unit.-Not later than two weeks after a defense contractor receives notice under subsection (a), the contractor shall provide notice of such termination or substantial reduction to-

"(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 or entity designated by the State to carry out rapid response activities under section 134(a)(2)(A) of the Workforce Investment Act of 1998 [29 U.S.C. 2864(a)(2)(A)], and the chief elected official of the unit of general local government within which the adverse effect may occur.

"(d) Constructive Notice.-The notice of termination of, or substantial reduction in, a defense contract provided under subsection (c)(1) to an employee of a contractor shall have the same effect as a notice of termination to such employee for the purposes of determining whether such employee is eligible to participate in employment and training activities carried out under title I of the Workforce Investment Act of 1998 [29 U.S.C. 2801 et seq.], except in a case in which the employer has specified that the termination of, or substantial reduction in, the contract is not likely to result in plant closure or mass layoff.

"(e) Loss of Eligibility.-An employee who receives a notice of withdrawal or cancellation of the termination of, or substantial reduction in, contract funding shall not be eligible, on the basis of any related reduction in funding under the contract, to participate in employment and training activities under title I of the Workforce Investment Act of 1998 [29 U.S.C. 2801 et seq.], beginning on the date on which the employee receives the notice.

"(f) Definitions.-For purposes of this section:

"(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 defense contract under a major defense program, mean a reduction of 25 percent or more in the total dollar value of the funds obligated by the contract."