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

Subtitle D--Industrial Base Matters

P. L. 116-

House Conference Report   116-617

SEC. 846. IMPROVING IMPLEMENTATION OF POLICY PERTAINING TO THE NATIONAL TECHNOLOGY AND INDUSTRIAL BASE.

(a) Assessment of Research and Development, Manufacturing, and Production Capabilities.--

(1) In general.--In developing the strategy required by section 2501 of title 10, United States Code, carrying out the program for analysis of the national technology and industrial base required by section 2503 of such title, and performing the assessments required under section 2505 of such title, the Secretary of Defense, in consultation with the Under Secretary of Defense for Acquisition and Sustainment and the Under Secretary of Research and Engineering, shall assess the research and development, manufacturing, and production capabilities of the national technology and industrial base (as defined in section 2500 of such title) and other allies and partner countries.

(2) Identification of specific technologies, companies, laboratories, and factories.--The map of the industrial base described in section 2504 of title 10, United States Code, shall highlight specific technologies, companies, laboratories, and factories of, or located in, the national technology and industrial base of potential value to current and future Department of Defense plans and programs.

(b) Policy and Guidance.--

(1) In general.--Section 2440 of title 10, United States Code is amended--

(A) by amending the section heading to read as follows: ``National technology and industrial base plans, policy, and guidance'';

(B) striking ``The Secretary'' and inserting the following:

``(a) In General.--The Secretary''; and

(C) by adding at the end the following new subsection:

``(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 chapter 148 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.''.

(2) Clerical amendments.--The table of sections at the beginning of chapter 144 of title 10, United States Code, is amended by striking the item relating to section 2440 and inserting the following new item:

``2440. National technology and industrial base plans, policy, and guidance.''.

(c) Responsibilities of the National Defense Technology and Industrial Base Council.--Section 2502(c) of title 10, United States Code, is amended--

(1) in paragraph (2), by striking ``and'' at the end;

(2) in paragraph (3), by striking the period at the end and inserting ``; and''; and

(3) by adding at the end the following new paragraph:

``(4) 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) Recommendations for Additional Members of the National Technology and Industrial Base.--

(1) In general.--The Secretary of Defense, in consultation with the heads of any relevant Federal agencies, shall establish a process to consider the inclusion of additional member countries in the national technology and industrial base.

(2) Elements.--The process developed under paragraph (1) shall include an analysis of--

(A) the national security and foreign policy impacts, costs, and benefits to the United States and allied countries of the inclusion of any such additional member countries in the national technology and industrial base;

(B) the economic impacts, costs, and benefits to entities within the United States and allied countries of the inclusion of any such additional member countries into the national technology and industrial base, including an assessment of--

(i) specific shortfalls in the technological and industrial capacities of current member countries of the national technology and industrial base that would be addressed by inclusion of such additional member countries;

(ii) specific areas in the industrial bases of current member countries of the national technology and industrial base that would likely be impacted by additional competition if such additional member countries were included in the national technology and industrial base; and

(iii) costs to reconstitute capability should such capability be lost to competition; and

(C) other factors as determined relevant by the Secretary.

(3) Concurrence.--For the purposes of the process developed under paragraph (1), the Secretary of Defense may recommend the inclusion of an additional member country in the national technology and industrial base only with the concurrence of the Secretary of State.

Improving implementation of policy pertaining to the national technology and industrial base (sec. 846)

The Senate amendment contained a provision (sec. 803, as amended by sec. 5803) that would: (1) Require the Secretary of Defense to assess the research and development, manufacturing, and production capabilities of national technology and industrial base (NTIB) members and other friendly nations; (2) Modify section 2350a of title 10, United States Code, to allow for cooperative research and development agreements among the NTIB member countries; (3) Modify section 2502 of title 10, United States Code, to establish a NTIB regulatory council; and (4) Direct the Secretary of Defense to establish a process for considering the inclusion of additional members in the NTIB.

The House bill contained no similar provision.

The House recedes with an amendment that would eliminate the sections pertaining to the cooperative research and development agreements and the regulatory council, and would modify the process for considering new NTIB members pertaining to roles and responsibilities, legislative proposals, and reporting.

The conferees are concerned that the National Technology and Industrial Base Council is not convening regularly, particularly at the level of principals, and strongly encourage persistent periodic meetings in light of the significant challenges identified in the Report by the Interagency Task Force in fulfillment of Executive Order 13806 and the significant additional obstacles as a result of the COVID-19 pandemic. The conferees therefore direct the Secretary of Defense to report on the frequency and level at which the Council convenes, as part of the quarterly briefings required elsewhere in this Act. The conferees reiterate the direction to the Secretary of Defense in section 881 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114-328), pertaining to reducing the barriers to the seamless integration among the NTIB, and especially those barriers related to identification of changes in export control rules, procedures, and laws that would enhance the civil-military integration policy objectives set forth in section 2501(b) of title 10, United States Code.


Senate Committee Report 116-236 to Accompanying S. 4049


Improving implementation of policy pertaining to the national technology and industrial base (sec. 803)

The committee recommends a provision that would require the Secretary of Defense, in executing the activities required under sections 2501, 2502, and 2505 of title 10, United States Code, to also identify critical National Technology and Industrial Base (NTIB) member country development and manufacturing activities and capabilities. The provision would also: modify section 2502 of title 10, United States Code, to require the establishment of a regulatory council comprised of the member countries; modify section 2350a of title 10, United States Code, to allow for the consummation of cooperative research and development agreements among the NTIB member countries; and require the Secretary of Defense to establish a process for considering additional NTIB member countries, conduct an assessment on certain countries, and report on that assessment within 540 days of the date of the enactment of this Act.

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