CHAPTER 382 - POLICIES AND PLANNING
Title 10 > CHAPTER 382
Sections (18)
§ 4811 National security strategy for national technology and industrial base
(a) National Security Strategy for National Technology and Industrial Base.— The Secretary of Defense shall develop a national security strategy for the national technology and industrial base. The Secretary shall submit such strategy to Congress as an integrated part of the report submitted under section 4814 of this title . Such strategy shall be based on a prioritized assessment of risks and challenges to the defense supply chain and shall ensure that the national technology and industrial base is capable of achieving the following national security objectives: Supplying, equipping, and supporting the force structure of the armed forces that is necessary to achieve— 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 ); the policy guidance of the Secretary of Defense provided pursuant to section 113(g) of this title ; and the future-years defense program submitted to Congress by the Secretary of Defense pursuant to section 221 of this title . Sustaining production, maintenance, repair, logistics, and other activities in support of military operations of various durations and intensity. Maintaining advanced research and development activities to provide the armed forces with systems capable of ensuring technological superiority over potential adversaries. 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. 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. 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. Providing for the development, production, and integration of information technology within the national technology and industrial base. Maintaining critical design skills to ensure that the armed forces are provided with systems capable of ensuring technological superiority over potential adversaries. 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. Reducing, to the maximum extent practicable, the presence of counterfeit parts in the supply chain and the risk associated with such parts. 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) Civil-Military Integration Policy.— The Secretary of Defense shall ensure that the United States attains the national technology and industrial base objectives set forth in subsection (a) through acquisition policy reforms that have the following objectives: 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. Reducing the reliance of the Department of Defense on technology and industrial base sectors that are economically dependent on Department of Defense business. Reducing Federal Government barriers to the use of commercial products, processes, and standards.
(c) Department of Defense Technology and Industrial Base Policy Guidance.— The Secretary of Defense shall prescribe departmental guidance for the attainment of each of the national security objectives set forth in subsection (a). The guidance prescribed pursuant to paragraph (1) shall provide for technological and industrial capability considerations to be integrated into the strategy, management, budget allocation, acquisition, and logistics support decision processes.
“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 , see Tables for classification] 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.— The Secretary of Defense shall establish a program to assess— the degree to which the United States is dependent on foreign sources of supply; and 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. 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.— 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: Whether the contractor is a United States or foreign contractor. The principal place of business of the contractor and the principal place of performance of the contract. Whether the contract was awarded on a sole source basis or after receipt of competitive offers. The dollar value of the contract. 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. 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. 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. Pub. L. 112–81, div. A, title X, § 1062(g)(2) , Dec. 31, 2011 , 125 Stat. 1585 .]
(“(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. 3003(4) ).
“[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) 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 4864 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— ensuring the visibility and accountability of transactions engaged in through the Fund; and reporting to Congress each year regarding activities of the Fund during the previous fiscal year.”
“SEC. 1351 SHORT TITLE.
“This subtitle [subtitle D, §§ 1351–1363 of title XIII of div. A of Pub. L. 103–160 , see Tables for classification] 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— by the Secretary of Defense, with respect to programs under the jurisdiction of the Secretary of Defense; and 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: 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. 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. 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. 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: 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— development and transfer to the private sector of dual-use shipbuilding technologies, ship repair technologies, and shipbuilding management technologies; assessments of potential markets for maritime products; and recommendation of industrial entities, partnerships, joint ventures, or consortia for short- and long-term manufacturing technology investment strategies. Funding and program management activities to develop innovative design and production processes and the technologies required to implement those processes. 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). 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.— 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. 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.”
§ 4812 National Defense Technology and Industrial Base Council
(a) Establishment.— There is a National Defense Technology and Industrial Base Council.
(b) Composition.— The Council is composed of the following members: The Secretary of Defense, who shall serve as chairman. The Secretary of Energy. The Secretary of Commerce. The Secretary of Labor. Such other officials as may be determined by the President.
(c) Responsibilities.— The Council shall have the responsibility to ensure effective cooperation among departments and agencies of the Federal Government, and to provide advice and recommendations to the President, the Secretary of Defense, the Secretary of Energy, the Secretary of Commerce, and the Secretary of Labor, concerning— the capabilities of the national technology and industrial base to meet the national security objectives set forth in section 4811(a) of this title ; programs for achieving such national security objectives; changes in acquisition policy that strengthen the national technology and industrial base; and collaboration with government officials of member countries of the national technology and industrial base in order to strengthen the national technology and industrial base.
(d) Alternative Performance of Responsibilities.— Notwithstanding subsection (c), the President may assign the responsibilities of the Council to another interagency organization of the executive branch that includes among its members the officials specified in paragraphs (1) through (4) of subsection (b).
§ 4813 National defense program for analysis of the technology and industrial base
(a) Establishment.— The Secretary of Defense shall establish a program for analysis of the national technology and industrial base.
(b) Supervision of Program.— The Secretary of Defense shall carry out the program through the Under Secretary of Defense for Research and Engineering and the Under Secretary of Defense for Acquisition and Sustainment. In carrying out the program, the Under Secretaries shall consult with the Secretary of Energy, the Secretary of Commerce, and the Secretary of Labor.
(c) Functions.— The functions of the program shall include, with respect to the national technology and industrial base, the following: The assembly of timely and authoritative information. Initiation of studies and analyses. Provision of technical support and assistance to— the Secretary of Defense for the preparation of the periodic assessments required by section 4816 of this title ; the defense acquisition university structure and its elements; and other departments and agencies of the Federal Government in accordance with guidance established by the Council. Dissemination, through the National Technical Information Service of the Department of Commerce, of unclassified information and assessments for further dissemination within the Federal Government and to the private sector.
§ 4814 National technology and industrial base: biennial report
The Secretary of Defense shall transmit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives by March 1 of each odd-numbered year a report which shall include the following information: A description of the departmental guidance prepared pursuant to section 4811(c) of this title . A description of the assessments prepared pursuant to section 4816 of this title and other analyses used in developing the budget submission of the Department of Defense for the next fiscal year. Based on the strategy required by section 4811 of this title and on the assessments prepared pursuant to Executive order or section 4816 of this title — a map of the industrial base; a prioritized list of gaps or vulnerabilities in the national technology and industrial base (including vulnerabilities related to the current and projected impacts of extreme weather and to cyber attacks or disruptions), including— a description of mitigation strategies necessary to address such gaps or vulnerabilities; the identification of the Secretary concerned or the head of the Defense Agency responsible for addressing such gaps or vulnerabilities; and a proposed timeline for action to address such gaps or vulnerabilities; and any other steps necessary to foster and safeguard the national technology and industrial base. Identification of each program designed to sustain specific essential technological and industrial capabilities and processes of the national technology and industrial base. A detailed description of any use by the Secretary of Defense or a Secretary concerned, as applicable, during the prior 12 months of a waiver or exception to the sourcing requirements or prohibitions established by chapter 83 of title 41 or chapter 385 of this title, including— the type of waiver or exception used; and the reasoning for the use of each such waiver or exception. (Added Pub. L. 104–201, div. A, title VIII, § 829(e) , Sept. 23, 1996 , 110 Stat. 2614 , § 2504; amended Pub. L. 106–65, div. A, title X, § 1067(1) , Oct. 5, 1999 , 113 Stat. 774 ; Pub. L. 112–239, div. A, title XVI, § 1603(b) , Jan. 2, 2013 , 126 Stat. 2063 ; Pub. L. 116–92, div. A, title VIII, § 846(b) , Dec. 20, 2019 , 133 Stat. 1503 ; renumbered § 4814 and amended Pub. L. 116–283, div. A, title VIII, § 842(a) , (b)(1), title XVIII, § 1867(b), (d)(3), Jan. 1, 2021 , 134 Stat. 3764 , 3765, 4281; Pub. L. 117–81, div. A, title III, § 333 , title XVII, § 1701(b)(22)(A), (d)(15), Dec. 27, 2021 , 135 Stat. 1638 , 2135, 2137; Pub. L. 118–31, div. A, title X, § 1061(c)(1) , Dec. 22, 2023 , 137 Stat. 399 .)
§ 4815 Unfunded priorities of the national technology and industrial base: annual report
(a) Annual Report.— Not later than 10 days after the date on which the budget of the President for a fiscal year is submitted to Congress pursuant to section 1105 of title 31 , the Under Secretary of Defense for Acquisition and Sustainment shall submit to the Secretary of Defense, the Chairman of the Joint Chiefs of Staff, and the congressional defense committees a report on the unfunded priorities to address gaps or vulnerabilities in the national technology and industrial base.
(b) Elements.— Each report under subsection (a) shall specify, for each unfunded priority covered by such report, the following: A summary description of such priority, including the objectives to be achieved if such priority is funded (whether in whole or in part). The additional amount of funds recommended in connection with the objectives under subparagraph (A). Account information with respect to such priority, including the following (as applicable): Line Item Number (LIN) for applicable procurement accounts. Program Element (PE) number for applicable research, development, test, and evaluation accounts. Sub-activity group (SAG) for applicable operation and maintenance accounts. Each report shall present the unfunded priorities covered by such report in order of urgency of priority.
(c) Unfunded Priority Defined.— In this section, the term “unfunded priority”, in the case of a fiscal year, means a program, activity, or mission requirement of the national technology and industrial base that— is not funded in the budget of the President for the fiscal year as submitted to Congress pursuant to section 1105 of title 31 ; is necessary to address gaps or vulnerabilities in the national technology and industrial base; and would have been recommended for funding through the budget referred to in paragraph (1) if— additional resources had been available for the budget to fund the program, activity, or mission requirement; or the program, activity, or mission requirement had emerged before the budget was formulated.
§ 4816 National technology and industrial base: periodic defense capability assessments
(a) Periodic Assessment.— Each fiscal year, the Secretary of Defense shall prepare selected assessments of the capability of the national technology and industrial base to attain the national security objectives set forth in section 4811(a) of this title . The Secretary of Defense shall prepare such assessments in consultation with the Secretary of Commerce and the Secretary of Energy.
(b) Assessment Process.— The Secretary of Defense shall ensure that technology and industrial capability assessments— describe sectors or capabilities, their underlying infrastructure and processes; analyze present and projected financial performance of industries supporting the sectors or capabilities in the assessment; determine the extent to which the requirements associated with defense acquisition programs can be satisfied by the present and projected performance capacities of industries supporting the sectors or capabilities in the assessment, evaluate the reasons for any variance from applicable preceding determinations, and identify the extent to which those industries are comprised of only one potential source in the national technology and industrial base or have multiple potential sources; determine the extent to which the requirements associated with defense acquisition programs can be satisfied by the present and projected performance capacities of industries that do not actively support Department of Defense acquisition programs and identify the barriers to the participation of those industries; identify technological and industrial capabilities and processes for which there is potential for the national industrial and technology base not to be able to support the achievement of national security objectives; and consider the effects of the termination of major defense acquisition programs (as the term is defined in section 4201 of this title ) in the previous fiscal year on the sectors and capabilities in the assessment.
(c) Assessment of Extent of Dependency on Foreign Source Items.— Each assessment under subsection (a) shall include a separate discussion and presentation regarding the extent to which the national technology and industrial base is dependent on items for which the source of supply, manufacture, or technology is outside of the United States and Canada and for which there is no immediately available source in the United States or Canada. The discussion and presentation regarding foreign dependency shall— identify cases that pose an unacceptable risk of foreign dependency, as determined by the Secretary; and present actions being taken or proposed to be taken to remedy the risk posed by the cases identified under paragraph (1), including efforts to develop a domestic source for the item in question.
(d) Assessment of Extent of Effects of Foreign Boycotts.— Each assessment under subsection (a) shall include an examination of the extent to which the national technology and industrial base is affected by foreign boycotts. If it is determined that a foreign boycott (other than a boycott addressed in a previous assessment) is subjecting the national technology and industrial base to significant harm, the assessment shall include a separate discussion and presentation regarding that foreign boycott that shall, at a minimum— identify the sectors that are subject to such harm; describe the harm resulting from such boycott; and identify actions necessary to minimize the effects of such boycott on the national technology and industrial base.
(e) Integrated Process.— The Secretary of Defense shall ensure that consideration of the technology and industrial base assessments is integrated into the overall budget, acquisition, and logistics support decision processes of the Department of Defense.
§ 4817 Industrial Base Fund
(a) Establishment.— The Secretary of Defense shall establish an Industrial Base Fund (in this section referred to as the “Fund”).
(b) Control of Fund.— The Fund shall be under the control of the Under Secretary of Defense for Acquisition and Sustainment, acting through the Deputy Assistant Secretary of Defense for Manufacturing and Industrial Base Policy.
(c) Amounts in Fund.— The Fund shall consist of amounts appropriated or otherwise made available to the Fund.
(d) Use of Fund.— Subject to subsection (e), the Fund shall be used— to support the monitoring and assessment of the industrial base required by chapters 381 through 385 and chapter 389; to address critical issues in the industrial base relating to urgent operational needs; to support efforts to expand the industrial base; and to address supply chain vulnerabilities.
(e) Use of Fund Subject to Appropriations.— The authority of the Secretary of Defense to use the Fund under this section in any fiscal year is subject to the availability of appropriations for that purpose.
(f) Expenditures.— The Secretary shall establish procedures for expending monies in the Fund in support of the uses identified in subsection (d), including the following: Direct obligations from the Fund. Transfers of monies from the Fund to relevant appropriations of the Department of Defense.
(g) Eligible Uses of Authorities.— The Secretary of Defense may use the authorities provided by this section with respect to defense supply chains, including for material, material production, components, subassemblies, and finished products, testing and qualification, infrastructure, facility construction and improvement, and equipment needed directly for the following: Castings and forgings. Kinetic capabilities, including sensors, targeting systems, and delivery platforms. Microelectronics. Machine tools, including subtractive, additive, convergent, stamping, forging, abrasives, metrology, and other production equipment. Critical minerals, materials, and chemicals. The workforce of the defense industrial base. Advanced manufacturing (as defined in section 4841(f)) capability and capacity of the defense industrial base, including manufacturing at or near the point of need in the area of responsibility of the United States Indo-Pacific Command. Unmanned vehicles, including subsurface, surface, land, air, single use, and attritable unmanned vehicles and associated launch and recovery platforms. Manned aircraft. Ground systems. Power sources. Ships or submarines, including technologies and capabilities for the assembly or automation of ships or submarines, new or modernized infrastructure for the construction of new ships or submarines or the maintenance and sustainment or repair of battle damage to ships or submarines. Other materiel solutions required to support the operational plans of the United States Indo-Pacific Command. Defense space systems. Batteries. The Secretary may not use the authorities provided by this section for any activity in a covered country. The Secretary may not use the authorities provided by subsections (h) through (j) for a purpose other than a purpose described in paragraph (1) unless the Secretary— determines that— the use of the authority for such other purpose is essential to the defense interests of the United States; and without the use of the authority for such other purpose, the defense industrial base cannot reasonably be expected to provide a capability needed by the Department of Defense in a timely manner; and not less than 30 days prior to the Secretary using such authorities for such other purpose, submits to the congressional defense committees a report on such determination that includes appropriate explanatory material for such use.
(h) Grants and Other Incentives for Domestic Industrial Base Capabilities.— For the purposes of creating, maintaining, protecting, expanding, or restoring the capabilities of the domestic industrial base that are essential for the defense interests of the United States, the Secretary may— use contracts, grants, or other transaction authorities, including cooperative agreements; establish incentives for the private sector to develop capabilities in areas of defense interest; during the five-year period beginning on the date of the enactment of this subsection, make awards to third party entities to support investments in small- and medium-sized entities working in areas of defense interest that would benefit missions of the Department of Defense; and provide subsidies to offset market manipulation.
(i) Defense Industrial Base Purchase Commitment Program.— For the purposes of creating, maintaining, protecting, expanding, or restoring capabilities of the industrial base that are essential for the defense interests of the United States, the Secretary may make purchase commitments— for the use or resale of an industrial resource or a critical technology item by the Federal Government; to encourage the exploration, development, and mining of strategic and critical materials; to support the development of other materials and components; for the development of production capabilities; and to increase the use of emerging technologies in defense program applications and the rapid transition of emerging technologies— from research and development sponsored by the Federal Government to commercial applications; and from commercial research and development to national defense applications. Except as provided by subparagraph (B), purchase commitments under paragraph (1) may be made for such quantities, and on such terms and conditions, including advance payments, and for such periods, but not extending beyond a date that is not more than 10 years from the date on which such purchase was initially made, as the Secretary deems necessary. Purchase commitments under paragraph (1) involving higher than established ceiling prices (or if no such established ceiling prices exist, currently prevailing market prices) or that result in an anticipated loss on resale shall not be made, unless it is determined that supply of the materials to be purchased under such purchase commitments could not be effectively increased or provisioned at lower prices or on terms more favorable to the Federal Government, or that such purchases are necessary to assure the availability to the United States of overseas supplies. The Secretary may take the actions described in subparagraph (B), if the Secretary finds with respect to a specific material that— under generally fair and equitable ceiling prices, for any raw or nonprocessed material or component, there will result a decrease in supplies from high-cost sources of such material and that the continuation of such supplies from such sources is necessary to carry out the objectives of this section; or an increase in cost of transportation of such material is temporary and threatens to impair maximum production or supply in any area at stable prices of such material. Upon a finding under subparagraph (A) with respect to a material, the Secretary may, for the purposes described in paragraph (1), make provision for subsidy payments for such material from sources other than sources that are or that are in covered countries, in such amounts and in such manner, including purchase commitments of such material or component thereof and the resale of such material or component thereof at a loss, and on such terms and conditions, as the Secretary determines necessary to ensure that— in the case of a finding described in clause (i) of such subparagraph, supplies from high-cost sources of such material do not decrease; or in the case of a finding described in clause (ii) of such subparagraph with respect to one or more areas, that maximum production or supply of such material at stable prices in each such area is maintained, as applicable. The Secretary is authorized to take an action described in subparagraph (B) if the Secretary determines that such action will aid the defense interests of the United States. The actions described in this section are— procuring and installing additional equipment, facilities, processes or improvements to plants, factories, and other industrial facilities owned by the Federal Government; procuring and installing equipment, including equipment owned by the Federal Government, in privately owned plants, factories, and other industrial facilities; providing for the modification, expansion, or construction of new privately owned facilities, including modifications or improvements to production processes, when taking actions under this subsection or subsection (h); selling or otherwise transferring equipment owned by the Federal Government and installed under this subsection to the owners of such plants, factories, or other industrial facilities; constructing facilities for the purposes described in section subsection (g)(1); and applying contracts, grants, or other transactions authorities. Metals, minerals, materials, and components acquired pursuant to this subsection which are excess to the needs of programs under this section, as determined by the Secretary, shall be transferred to the National Defense Stockpile established by the Strategic and Critical Materials Stock Piling Act ( 50 U.S.C. 98 et seq.), or other national reserves if available, if the Secretary deems such transfer to be in the public interest. Transfers made pursuant to this paragraph shall be made without charge against or reimbursement from funds appropriated for the purposes of the Strategic and Critical Materials Stock Piling Act ( 50 U.S.C. 98 et seq.), or other national reserves if available, except that costs incident to such transfer, other than acquisition costs, shall be paid or reimbursed from such funds. For the purposes of section 5(a)(3) of the Strategic and Critical Materials Stock Piling Act ( 50 U.S.C. 98d(a)(3) ), with respect to amounts paid under subparagraph (B) for any metal, mineral, material, or component transferred pursuant to this paragraph— such metal, mineral, material, or component is deemed to have been determined to be strategic and critical under section 3(a) of the Strategic and Critical Materials Stock Piling Act ( 50 U.S.C. 98b(a) ); and the Stockpile Manager of the National Defense Stockpile is deemed to have determines there is a shortfall of such materials in the National Defense Stockpile. The Secretary may make provision for the development and qualification of substitutes for strategic and critical materials, components, critical technology items, and other industrial resources if and to the extent the Secretary determines that such development and qualification is in the interest of national security.
(j) Strengthening Domestic Productive Capacity.— The Secretary may provide appropriate incentives to develop, maintain, modernize, restore, and expand the productive capacities of sources for strategic and critical materials, components, critical technology items, and industrial resources essential for the execution of the national security strategy of the United States. The Secretary shall take appropriate actions to ensure that strategic and critical materials, components, critical technology items, and industrial resources are available from reliable sources when and as needed to meet the requirements of the Department of Defense during peacetime, mobilization, and national emergency (as defined in section 12 of the Strategic and Critical Materials Act (50 USC 98h-3)). For purposes of this paragraph, appropriate actions include— restricting contract solicitations to reliable sources; stockpiling or placing into reserve strategic and critical materials, components, and critical technology items; planning for necessary long lead times for acquiring such materials, components, and items; and developing and qualifying substitutes for such materials, components, and items.
(k) Annual Report.— Not later than October 15, 2026 , and annually thereafter, the Secretary shall submit to the congressional defense committee a report evaluating investments made and any other activities carried out using amounts in the Fund during the previous fiscal year. Each report required by paragraph (1) shall include— measures of the effectiveness of the investments and activities described in such paragraph in meeting the needs of the Department of Defense and the defense industrial base; an evaluation of the return on investment of all ongoing investments from the Fund; and a description of efforts to coordinate activities carried out using amounts in the Fund with activities to support the defense industrial base carried out under other authorities. In preparing a report required by paragraph (1), the Secretary shall take into account the advice of the defense industry and such other individuals as the Secretary considers relevant.
(l) Coordination With Other Defense Industrial Base Activities.— Not later than 90 days after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2026, the Secretary shall submit to the congressional defense committees, the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Committee on Financial Services of the House of Representatives a report detailing how activities carried out under this section will be coordinated with— activities carried out using amounts in the Defense Production Act Fund under section 304 of the Defense Production Act of 1950 (50 U.S.C.4534); activities of the Office of Strategic Capital; and any other efforts designed to enhance the defense industrial base.
(m) Definitions.— In this section: The term “covered country” means— the Russian Federation; the Republic of Cuba; the Bolivarian Republic of Venezuela; the Democratic People’s Republic of Korea; the Islamic Republic of Iran; and the People’s Republic of China. The term “reliable source” means a citizen of, or business entity organized under the laws of— the United States or any territory or possession of the United States; a country of the national technology and industrial base, as defined in section 4801; or a qualifying country, as defined in section 225.003 of the Department of Defense Supplement to the Federal Acquisition Regulation or any successor regulation. The term “Secretary” means the Secretary of Defense. The term “strategic and critical materials” has the meaning given that term in section 12(1) of the Strategic and Critical Materials Stock Piling Act ( 50 U.S.C. 98h–3(1) ).
§ 4818 Data collection authority of President
(a) Authority.— The President shall be entitled, by regulation, subpoena, or otherwise, to obtain such information from, require such reports and the keeping of such records by, make such inspection of the books, records, and other writings, premises or property of, and take the sworn testimony of, and administer oaths and affirmations to, any person as may be necessary or appropriate, in the President’s discretion, to the enforcement or the administration of chapters 381 through 385 and chapter 389 and the regulations issued under such chapters.
(b) Condition for Use of Authority.— The President shall issue regulations insuring that the authority of this section will be used only after the scope and purpose of the investigation, inspection, or inquiry to be made have been defined by competent authority and it is assured that no adequate and authoritative data are available from any Federal or other responsible agency.
(c) Penalty for Noncompliance.— Any person who willfully performs any act prohibited or willfully fails to perform any act required by the provisions of subsection (a), or any rule, regulation, or order thereunder, shall be fined under title 18 or imprisoned not more than one year, or both.
(d) Limitations on Disclosure of Information.— Information obtained under subsection (a) which the President deems confidential or with reference to which a request for confidential treatment is made by the person furnishing such information shall not be published or disclosed unless the President determines that the withholding thereof is contrary to the interest of the national defense. Any person who willfully violates this subsection shall be fined under title 18 or imprisoned not more than one year, or both.
(e) Regulations.— The President may make such rules, regulations, and orders as he considers necessary or appropriate to carry out the provisions of this section. Any regulation or order under this section may be established in such form and manner, may contain such classification and differentiations, and may provide for such adjustments and reasonable exceptions as in the judgment of the President are necessary or proper to effectuate the purposes of this section, or to prevent circumvention or evasion, or to facilitate enforcement of this section, or any rule, regulation, or order issued under this section.
(f) Definitions.— In this section: The term “person” includes an individual, corporation, partnership, association, or any other organized group of persons, or legal successor or representative of the foregoing, and includes the United States or any agency thereof, or any other government, or any of its political subdivisions, or any agency of any of the foregoing, except that no punishment provided by this section shall apply to the United States, or to any such government, political subdivision, or government agency. The term “national defense” means programs for military and atomic energy production or construction, military assistance to any foreign nation, stockpiling, space, and directly related activity.
§ 4819 Modernization of acquisition processes to ensure integrity of industrial base
(a) Digitization and Modernization.— The Secretary of Defense shall streamline and digitize the Department of Defense approach for identifying and mitigating risks to the defense industrial base.
(b) Objective.— The objective of subsection (a) shall be to employ digital tools, technologies, and approaches to ensure the accessibility of relevant defense industrial base data to key decision-makers in the Department.
(c) Analytical Framework.— The Under Secretary of Defense for Acquisition and Sustainment, in coordination with the Director of the Defense Counterintelligence and Security Agency and the heads of other elements of the Department of Defense as appropriate, shall develop an analytical framework for risk mitigation across the acquisition process in implementing subsections (a) and (b). The analytical framework required under paragraph (1) shall include the following elements: Characterization and monitoring of supply chain risks, such as those identified through the supply chain risk management process of the Department and by the Federal Acquisition Security Council, and including— material sources and fragility, including the extent to which sources, items, materials, and articles are mined, produced, or manufactured within or outside the United States; telecommunications services or equipment; counterfeit parts; cybersecurity of contractors; video surveillance services or equipment; vendor vetting in contingency or operational environments; other electronic or information technology products and services; and other risk areas as determined appropriate by the Secretary of Defense. Characterization and monitoring of risks posed by contractor behavior that constitutes or may constitute violations of laws or regulations, including those relating to— fraud; ownership structures; trafficking in persons; workers’ health and safety; affiliation with the enemy; foreign influence; and other risk areas as deemed appropriate by the Secretary of Defense. Characterization and assessment of the acquisition processes and procedures of the Department of Defense, including— market research; responsibility determinations, including consideration of the need for special standards of responsibility to address the risks described in subparagraphs (A) and (B); facilities clearances; the development of contract requirements; the technical evaluation of offers and contract awards; contractor mobilization, including hiring, training, and establishing facilities; contract administration, contract management, and oversight; contract audit for closeout; suspension and debarment activities and administrative appeals activities; contractor business system reviews; processes and procedures related to supply chain risk management and processes and procedures implemented pursuant to section 3252 of this title ; and other relevant processes and procedures. Characterization and monitoring of the health and activities of the defense industrial base, including those relating to— balance sheets, revenues, profitability, and debt; investment, innovation, and technological and manufacturing sophistication; finances, access to capital markets, and cost of raising capital within those markets; corporate governance, leadership, and culture of performance; and history of performance on past Department of Defense and government contracts. Characterization and assessment of industrial base support policies, programs, and procedures, including— limitations and acquisition guidance relevant to the national technology and industrial base; limitations and acquisition guidance relevant to section 4862 of this title ; the Industrial Base Analysis and Sustainment program of the Department, including direct support and common design activities; the Small Business Innovation Research Program (as defined in section 9(e) of the Small Business Act ( 15 U.S.C. 638(e) ); the Manufacturing Technology Program established under sections 4841 and 4842 of this title; programs relating to the Defense Production Act of 1950 ( 50 U.S.C. 4511 1 et seq.); and programs operating in each military department.
(d) Roles and Responsibilities.— The Secretary of Defense shall designate the roles and responsibilities of organizations and individuals to execute activities under this section, including— the Under Secretary of Defense for Acquisition and Sustainment, including the Office of Defense Pricing and Contracting and the Office of Industrial Policy; service acquisition executives; program offices and procuring contracting officers; administrative contracting officers within the Defense Contract Management Agency and the Supervisor of Shipbuilding; the Defense Counterintelligence and Security Agency; the Defense Contract Audit Agency; each element of the Department of Defense which own or operate systems containing data relevant to contractors of the Department; the Under Secretary of Defense for Research and Engineering; the suspension and debarment official of the Department; the Chief Information Officer; and other relevant organizations and individuals as deemed appropriate by the Secretary.
(e) Enabling Data, Tools, and Systems.— The Under Secretary of Defense for Acquisition and Sustainment, in consultation with the Chief Data Officer of the Department of Defense and the Director of the Defense Counterintelligence and Security Agency, shall assess the extent to which existing systems of record relevant to risk assessments and contracting are producing, exposing, and maintaining valid and reliable data for the purposes of the Department’s continuous assessment and mitigation of risks in the defense industrial base. The assessment required under subparagraph (A) shall include the following elements: Identification of the necessary source data, to include data from contractors, intelligence and security activities, program offices, and commercial research entities. A description of modern data infrastructure, tools, and applications and an assessment of the extent to which new capabilities would improve the effectiveness and efficiency of mitigating the risks described in subsection (c)(2). An assessment of the following systems owned or operated outside of the Department of Defense that the Department depends upon or to which it provides data, including the following: The Federal Awardee Performance and Integrity Information System (FAPIIS). The System for Award Management (SAM). The Federal Procurement Data System–Next Generation (FPDS–NG). The Electronic Data Management Information System. Other systems the Secretary of Defense determines appropriate. An assessment of systems owned or operated by the Department of Defense, including the Defense Counterintelligence and Security Agency and other defense agencies and field activities used to capture and analyze the status and performance (including past performance) of vendors and contractors. Based on the findings pursuant to paragraph (1), the Secretary of Defense shall develop a unified set of activities to modernize the systems of record, data sources and collection methods, and data exposure mechanisms. The unified set of activities should include— the ability to continuously collect data on, assess, and mitigate risks; data analytics and business intelligence tools and methods; and continuous development and continuous delivery of secure software to implement the activities. In connection with the assessments described in this section, the Secretary shall develop capabilities to map supply chains and to assess risks to the supply chain for major end items by business sector, vendor, program, part, and other metrics as determined by the Secretary.
(f) Rule of Construction.— Nothing in this section shall be construed to limit or modify any other procurement policy, procedure, requirement, or restriction provided by law.
§ 4820 National technology and industrial base plans, policy, and guidance
(a) In General.— The Secretary of Defense shall prescribe regulations requiring consideration of the national technology and industrial base, in accordance with the strategy required by section 4811 of this title , in the development and implementation of acquisition plans for each major defense acquisition program.
(b) Acquisition Policy and Guidance.— The Secretary of Defense shall develop and promulgate acquisition policy and guidance to the service acquisition executives, the heads of the appropriate Defense Agencies and Department of Defense Field Activities, and relevant program managers. Such policy and guidance shall be germane to the use of the research and development, manufacturing, and production capabilities identified pursuant to chapters 381 through 385 and chapter 389 of this title and the technologies, companies, laboratories, and factories in specific Department of Defense research and development, international cooperative research, procurement, and sustainment activities.