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CHAPTER 148–NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE, DEFENSE REINVESTMENT, AND DEFENSE CONVERSION 1

Sec. 2500 2501

Subchapter

I. Definitions
II. Policies and Planning
III. Programs for Development, Application, and Support of Dual-Use

Technologies
IV. Manufacturing Technology

V. Miscellaneous Technology Base Policies and Programs
VI. Defense Export Loan Guarantees
VII. Critical Infrastructure Protection Loan Guarantees

2511 2521 2531 2540 2541

SUBCHAPTER I-DEFINITIONS

Sec. 2500.

Definitions.

$ 2500. Definitions In this chapter:

(1) The term “national technology and industrial base” means the persons and organizations that are engaged in research, development, production, or maintenance activities conducted within the United States and Canada.

1 Sections 4101 and 4201 of the Defense Conversion, Reinvestment, and Transition Assistance Act of 1992 (division D of P.L. 102–484; 10 U.S.C. 2491 note) provide: SEC. 4101. FINDINGS. Congress makes the following findings:

(1) The collapse of communism in Eastern Europe and the dissolution of the Soviet Union have fundamentally changed the military threat that formed the basis for the national security policy of the United States since the end of World War II.

(2) The change in the military threat presents a unique opportunity to restructure and reduce the military requirements of the United States.

(3) As the United States proceeds with the post-Cold War defense build down, the Nation must recognize and address the impact of reduced defense spending on the military personnel, civilian employees, and defense industry workers who have been the foundation of the national defense policies of the United States.

(4) The defense build down will have a significant impact on communities as procurements are reduced and military installations are closed and realigned.

(5) Despite the changes in the military threat, the United States must maintain the capability to respond to regional conflicts that threaten the national interests of the United States, and to reconstitute forces in the event of an extended conflict.

(6) The skills and capabilities of military personnel, civilian employees of the Department of Defense, defense industry workers, and defense industries represent an invaluable national resource that can contribute to the economic growth of the United States and to the long-term vitality of the national technology and industrial base.

(7) Prompt and vigorous implementation of defense conversion, reinvestment, and transition assistance programs is essential to ensure that the defense build down is structured in a manner that

(A) enhances the long-term ability of the United States to maintain a strong and vibrant national technology and industrial base; and

(B) promotes economic growth. SEC. 4201. PURPOSES.

The purposes of this title [title XLII of such Act, which established a new chapter 148] are to consolidate, revise, clarify, and reenact policies and requirements, and to enact additional policies and requirements, relating to the national technology and industrial base, defense reinvestment, and defense conversion programs that further national security objectives.

(2) The term "dual-use” with respect to products, services, standards, processes, or acquisition practices, means products, services, standards, processes, or acquisition practices, respectively, that are capable of meeting requirements for military and nonmilitary applications.

(3) The term "dual-use critical technology” means a critical technology that has military applications and nonmilitary applications.

(4) The term “technology and industrial base sector” means a group of public or private persons and organizations that engage in, or are capable of engaging in, similar research, development, or production activities.

(5) The terms "Federal laboratory” and “laboratory" have the meaning given the term "laboratory” in section 12(d)(2) of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3710a(d)(2)), except that such terms include a federally funded research and development center sponsored by a Federal agency.

(6) The term “critical technology" means a technology that is

(A) a national critical technology; or

(B) a defense critical technology. (7) The term “national critical technology" means a technology that appears on the list of national critical technologies contained in the most recent biennial report on national critical technologies submitted to Congress by the President pursuant to section 603(d) of the National Science and Technology Policy, Organization, and Priorities Act of 1976 (42 U.S.C. 6683(d)).

(8) The term "defense critical technology" means a technology that is identified under section 2505 of this title as critical for attaining the national security objectives set forth in section 2501(a) of this title.

(9) The term “eligible firm” means a company or other business entity that, as determined by the Secretary of Commerce

(A) conducts a significant level of its research, development, engineering, and manufacturing activities in the United States; and

(B) is a company or other business entity the majority ownership or control of which is by United States citizens or is a company or other business of a parent company that is incorporated in a country the government of which

(i) encourages the participation of firms so owned or controlled in research and development consortia to which the government of that country provides funding directly or provides funding indirectly through international organizations or agreements; and

(ii) affords adequate and effective protection for the intellectual property rights of companies incor

porated in the United States. Such term includes a consortium of such companies or other business entities, as determined by the Secretary of Commerce.

(10) The term "manufacturing technology" means techniques and processes designed to improve manufacturing quality, productivity, and practices, including quality control, shop floor management, inventory management, and worker training, as well as manufacturing equipment and software.

(11) The term “Small Business Innovation Research Program” means the program established under the following provisions of section 9 of the Small Business Act 2 (15 U.S.C. 638):

(A) Paragraphs (4) through (7) of subsection (b).

(B) Subsections (e) through (1). (12) The term “Small Business Technology Transfer Program” means the program established under the following provisions of such section:

(A) Paragraphs (4) through (7) of subsection (b).

(B) Subsections (e) and (n) through (p).
(13) The term “significant equity percentage” means-

(A) a level of contribution and participation sufficient, when compared to the other non-Federal participants in the partnership or other cooperative arrangement involved, to demonstrate a comparable long-term financial commitment to the product or process

process development involved; and

(B) any other criteria the Secretary may consider necessary to ensure an appropriate equity mix among the participants.

(14) The term “person of a foreign country" has the meaning given such term in section 3502(d) of the Primary Dealers

Act of 1988 (22 U.S.C. 5342d). (Added as $ 2491 P.L. 102–484, § 4203(a), Oct. 23, 1992, 106 Stat. 2661; amended P.L. 103-160, $$ 1182(a)(9), 1315(f), Nov. 30, 1993, 107 Stat. 1771, 1788; P.L. 103–337, $$ 1113(d), 1115(e), Oct. 5, 1994, 108 Stat. 2866, 2869; P.L. 104-106, § 1081(h), Feb. 10, 1996, 110 Stat. 455; redesignated $ 2500 and amended P.L. 105–85, $$ 371(b)(3), 1073(a)(53), Nov. 18, 1997, 111 Stat. 1705, 1903.)

SUBCHAPTER II—POLICIES AND PLANNING 3

Sec. 2501.

2502. 2503.

2504. 2505.

National security objectives concerning national technology and industrial

base. National Defense Technology and Industrial Base Council. National defense program for analysis of the technology and industrial

base. Annual report to Congress. National technology and industrial base: periodic defense capability

assessments. Department of Defense technology and industrial base policy guidance. Data collection authority of President.

2506. 2507.

page 689.

2 Section 9 of the Small Business Act, referred to in paragraph (11), is set forth beginning on

3 For related provisions with respect to the shipbuilding industry, see the National Shipbuilding and Shipyard Conversion Act of 1993 (subtitle D of title XIII of P.L. 103-160).

$ 2501. National security objectives concerning national

technology and industrial base 4, 5 (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 Section 1118 of the National Defense Authorization Act for Fiscal Year 1995 (P.L. 103-337; 108 Stat. 2870) provides: SEC. 1118. DOCUMENTATION FOR AWARDS FOR COOPERATIVE AGREEMENTS OR

OTHER TRANSACTIONS UNDER DEFENSE TECHNOLOGY REINVESTMENT

PROGRAMS. 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 section 2501(b) of such title.

5 Section 212 of the National Defense Authorization Act for Fiscal Year 2000 (P.L. 106–65; 113 Stat. 542) provides: SEC. 212. SENSE OF CONGRESS REGARDING DEFENSE SCIENCE AND TECH

NOLOGY PROGRAM. (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, especially the Air Force 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), 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 2009, 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) CERTIFICATION.—If the proposed budget for a fiscal year covered by subsection (b) fails to comply with the objective set forth in that subsection(1) the Secretary of Defense shall submit to Congress

(A) the certification of the Secretary that the budget does not jeopardize the stability of the defense technology base or increase the risk of failure to maintain technological superiority in future weapon systems; or

(B) a statement of the Secretary explaining why the Secretary is unable to submit such certification; and (2) the Defense Science Board shall, not more than 60 days after the date on which the Secretary submits the certification or statement under paragraph (1), submit to the Secretary and Congress a report assessing the effect such failure to comply is likely to have on defense technology and the national defense.

(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 P.L. 102–484, § 4211, Oct. 23, 1992, 106 Stat. 2662; amended P.L. 103–35, $ 201(cX7), May 31, 1993, 107 Stat. 98; P.L. 103–160, $$ 1182(a)(10), 1313, Nov. 30, 1993, 107 Stat. 1771, 1786; P.L. 104-106, $ 1081(a), Feb. 10, 1996, 110 Stat. 452; P.L. 104–201, $829(a), Sept. 23, 1996, 110 Stat. 2612.) $ 2502. 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:

(1) The Secretary of Defense, who shall serve as chairman.
(2) The Secretary of Energy.
(3) The Secretary of Commerce.
(4) The Secretary of Labor.

(5) 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

(1) the capabilities of the national technology and industrial base to meet the national security objectives set forth in section 2501(a) of this title;

(2) programs for achieving such national security objectives; and

(3) changes in acquisition policy that strengthen the national technology and industrial base.

(d) ALTERNATIVE PERFORMANCE OF RESPONSIBILITIES.—Notwithstanding subsection (c), the President may assign the respon

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