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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle F — Improve Acquisition Act

P. L. 111-

Joint Explanatory Statement of the Committees on Armed Services of the U. S. Senate and House of Representatives on H. R. 6523

From H. R. 6523

SEC. 896. DEPUTY ASSISTANT SECRETARY OF DEFENSE FOR MANUFACTURING AND INDUSTRIAL BASE POLICY; INDUSTRIAL BASE FUND.

(a) Deputy Assistant Secretary of Defense- Chapter 7 of title 10, United States Code, is amended by inserting after section 139d the following new section:

`Sec. 139e. Deputy Assistant Secretary of Defense for Manufacturing and Industrial Base Policy

`(a) Appointment- There is a Deputy Assistant Secretary of Defense for Manufacturing and Industrial Base Policy, who shall be appointed by the Under Secretary of Defense for Acquisition, Technology, and Logistics and shall report to the Under Secretary.

`(b) Responsibilities- The Deputy Assistant Secretary of Defense for Manufacturing and Industrial Base Policy shall be the principal advisor to the Under Secretary of Defense for Acquisition, Technology, and Logistics in the performance of the Under Secretary's duties relating to the following:

`(1) Providing input on industrial base matters to strategy reviews, including quadrennial defense reviews conducted pursuant to section 118 of this title.

`(2) Establishing policies of the Department of Defense for maintenance of the defense industrial base of the United States.

`(3) Providing recommendations to the Under Secretary on budget matters pertaining to the industrial base.

`(4) Providing recommendations to the Under Secretary on supply chain management and supply chain vulnerability.

`(5) Providing input on industrial base matters to defense acquisition policy guidance.

`(6) Establishing the national security objectives concerning the national technology and industrial base required under section 2501 of this title.

`(7) Executing the national defense program for analysis of the national technology and industrial base required under section 2503 of this title.

`(8) Performing the national technology and industrial base periodic defense capability assessments required under section 2505 of this title.

`(9) Establishing the technology and industrial base policy guidance required under section 2506 of this title.

`(10) Executing the authorities of the Manufacturing Technology Program under section 2521 of this title.

`(11) Carrying out the activities of the Department of Defense relating to the Defense Production Act Committee established under section 722 of the Defense Production Act of 1950 (50 U.S.C. App. 2171).

`(12) Consistent with section 2(b) of the Defense Production Act of 1950 (50 U.S.C. App. 2062(b)), executing other applicable authorities provided under the Defense Production Act of 1950 (50 U.S.C. App. 2061 et seq.), including authorities under titles I and II of such Act.

`(13) Establishing policies related to international technology security and export control issues.

`(14) Establishing policies related to industrial independent research and development programs under section 2372 of this title.

`(15) Such other duties as are assigned by the Under Secretary.

`(c) Rule of Construction- Nothing in subsection (b)(9) may be construed to limit the authority or modify the policies of the Committee on Foreign Investment in the United States established under section 721(k) of the Defense Production Act of 1950 (50 U.S.C. App. 2170(k)).'.

(b) Industrial Base Fund-

(1) IN GENERAL- Chapter 148 of title 10, United States Code, is amended by adding at the end the following new section:

`Sec. 2508. 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, Technology, and Logistics, 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--

`(1) to support the monitoring and assessment of the industrial base required by this chapter;

`(2) to address critical issues in the industrial base relating to urgent operational needs;

`(3) to support efforts to expand the industrial base; and

`(4) 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:

`(1) Direct obligations from the Fund.

`(2) Transfers of monies from the Fund to relevant appropriations of the Department of Defense.'.

(2) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

`2508. Industrial Base Fund.'.

From H.R. 5136:  National Defense Authorization Act for Fiscal Year 2011

SEC. 410. INDUSTRIAL BASE COUNCIL AND FUND.

(a) Industrial Base Council-

(1) IN GENERAL- Chapter 7 of title 10, United States Code, is amended by adding at the end the following new section:

`Sec. 188. Industrial Base Council

`(a) Council Established- There is in the Department of Defense an Industrial Base Council.

`(b) Mission- The mission of the Industrial Base Council is to assist the Secretary in all matters pertaining to the industrial base of the Department of Defense, including matters pertaining to the national defense technology and industrial base included in chapter 148 of this title.

`(c) Membership- The following officials of the Department of Defense shall be members of the Council:

`(1) The Chairman of the Council, who shall be the Under Secretary of Defense for Acquisition, Technology, and Logistics, the functions of which may be delegated by the Under Secretary only to the Principal Deputy Under Secretary of Defense for Acquisition, Technology, and Logistics.

`(2) The Executive Director of the Council, who shall be an official from within the Office of the Under Secretary responsible for industrial base matters and who shall report directly to the Under Secretary or the Principal Deputy Under Secretary.

`(3) Officials from within the Office of the Secretary of Defense, as designated by the Secretary, with direct responsibility for matters pertaining to following areas:

`(A) Manufacturing.

`(B) Research and development.

`(C) Systems engineering and system integration.

`(D) Services.

`(E) Information Technology.

`(F) Sustainment and logistics.

`(4) The Director of the Defense Logistics Agency.

`(5) Officials from the military departments, as designated by the Secretary of each military department, with responsibility for industrial base matters relevant to the military department concerned.

`(d) Duties- The Council shall assist the Secretary in the following:

`(1) Providing input on industrial base matters to strategy reviews, including quadrennial defense reviews performed pursuant to section 118 of this title.

`(2) Managing the industrial base.

`(3) Providing recommendations to the Secretary on budget matters pertaining to the industrial base.

`(4) Providing recommendations to the Secretary on supply chain management and supply chain vulnerability.

`(5) Providing input on industrial base matters to defense acquisition policy guidance.

`(6) Issuing and revising the Department of Defense technology and industrial base guidance required by section 2506 of this title.

`(7) Such other duties as are assigned by the Secretary.

`(e) Reporting of Activities- The Secretary shall include a section describing the activities of the Council in the annual report to Congress required by section 2505 of this title.'.

(2) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

`188. Industrial Base Council.'.

(b) Industrial Base Fund-

(1) IN GENERAL- Chapter 148 of title 10, United States Code, is amended by adding at the end the following new section:

`Sec. 2508. 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 Industrial Base Council established pursuant to section 188 of this title.

`(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--

`(1) to support the monitoring and assessment of the industrial base required by this chapter;

`(2) to address critical issues in the industrial base relating to urgent operation needs;

`(3) to support efforts to expand the industrial base; and

`(4) 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:

`(1) Direct obligations from the Fund.

`(2) Transfers of monies from the Fund to relevant appropriations of the Department of Defense.'.

(2) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

`2508. Industrial Base Fund.'.

From H. R. 5013:  Implementing Management for Performance and Related Reforms to Obtain Value in Every Acquisition Act of 2010

SEC. 410. INDUSTRIAL BASE COUNCIL AND FUND.

(a) Industrial Base Council-

(1) IN GENERAL- Chapter 7 of title 10, United States Code, is amended by adding at the end the following new section:

`Sec. 188. Industrial Base Council

`(a) Council Established- There is in the Department of Defense an Industrial Base Council.

`(b) Mission- The mission of the Industrial Base Council is to assist the Secretary in all matters pertaining to the industrial base of the Department of Defense, including matters pertaining to the national defense technology and industrial base included in chapter 148 of this title.

`(c) Membership- The following officials of the Department of Defense shall be members of the Council:

`(1) The Chairman of the Council, who shall be the Under Secretary of Defense for Acquisition, Technology, and Logistics, the functions of which may be delegated by the Under Secretary only to the Principal Deputy Under Secretary of Defense for Acquisition, Technology, and Logistics.

`(2) The Executive Director of the Council, who shall be an official from within the Office of the Under Secretary responsible for industrial base matters and who shall report directly to the Under Secretary or the Principal Deputy Under Secretary.

`(3) Officials from within the Office of the Secretary of Defense, as designated by the Secretary, with direct responsibility for matters pertaining to following areas:

`(A) Manufacturing.

`(B) Research and development.

`(C) Systems engineering and system integration.

`(D) Services.

`(E) Information Technology.

`(F) Sustainment and logistics.

`(4) The Director of the Defense Logistics Agency.

`(5) Officials from the military departments, as designated by the Secretary of each military department, with responsibility for industrial base matters relevant to the military department concerned.

`(d) Duties- The Council shall assist the Secretary in the following:

`(1) Providing input on industrial base matters to strategy reviews, including quadrennial defense reviews performed pursuant to section 118 of this title.

`(2) Managing the industrial base.

`(3) Providing recommendations to the Secretary on budget matters pertaining to the industrial base.

`(4) Providing recommendations to the Secretary on supply chain management and supply chain vulnerability.

`(5) Providing input on industrial base matters to defense acquisition policy guidance.

`(6) Issuing and revising the Department of Defense technology and industrial base guidance required by section 2506 of this title.

`(7) Such other duties as are assigned by the Secretary.

`(e) Reporting of Activities- The Secretary shall include a section describing the activities of the Council in the annual report to Congress required by section 2505 of this title.'.

(2) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

`188. Industrial Base Council.'.

(b) Industrial Base Fund-

(1) IN GENERAL- Chapter 148 of title 10, United States Code, is amended by adding at the end the following new section:

`Sec. 2508. 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 Industrial Base Council established pursuant to section 188 of this title.

`(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--

`(1) to support the monitoring and assessment of the industrial base required by this chapter;

`(2) to address critical issues in the industrial base relating to urgent operation needs;

`(3) to support efforts to expand the industrial base; and

`(4) 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:

`(1) Direct obligations from the Fund.

`(2) Transfers of monies from the Fund to relevant appropriations of the Department of Defense.'.

(2) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

`2508. Industrial Base Fund.'.

Deputy Assistant Secretary of Defense for Manufacturing and Industrial Base Policy; Industrial Base Fund (sec. 896) 

The House bill contained a provision (sec. 410 of division D) that would establish an Industrial Base Council and an Industrial Base Fund in the Department of Defense. The Senate committee-reported bill contained no similar provision.

The agreement includes the House provision with an amendment that would establish statutory authorities for the Deputy Assistant Secretary of Defense for Manufacturing and Industrial Base Policy and provide for an Industrial Base Fund.

No history identified in H. Rpt. 111-465, accompanying H. R. 5013.