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

Subchapter

I. Definitions

II. Policies and Planning

Sec.

2491

2501

III. Programs for Development, Application, and Support of Dual-Use
Technologies

2511

IV. Manufacturing Technology and Dual-Use Assistance Extension
Programs

2521

V. Miscellaneous Technology Base Policies and Programs

2531

Sec. 2491.

Definitions.

SUBCHAPTER I-DEFINITIONS

$2491. 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 Public Law 102-484; 106 Stat. 2658) 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.

is

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

(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 appears on the list of critical technologies contained, pursuant to subsection (b)(4) of section 2505 of this title, in the most recent national technology and industrial base assessment submitted to Congress by the Secretary of Defense pursuant to section 2506(e) of this title.

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

merce

(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 incorporated 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 "manufacturing extension program" means a public or private, nonprofit program for the improvement of the quality, productivity, and performance of United Statesbased small manufacturing firms in the United States.

(12) The term "United States-based small manufacturing firm" means a company or other business entity that, as determined by the Secretary of Commerce

(A) engages in manufacturing;

(B) has less than 500 employees; and
(C) is an eligible firm.

(13) The term "Small Business Innovation Research Program" means the program established under the following provisions of section 9 of the Small Business Act (15 U.S.C. 638): (A) Paragraphs (4) through (7) of subsection (b). (B) Subsections (e) through (1).

(14) 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).

(15) 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 development involved: and

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

(16) 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. 5342(d)).

(Added P.L. 102-484, §4203(a), Oct. 23, 1992, 106 Stat. 2661, and 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.)

Sec. 2501.

2502.

2503.

[2504.

2505.

2506.

2507.

SUBCHAPTER II-POLICIES AND PLANNING 2,3

Congressional defense policy concerning national technology and industrial base, reinvestment, and conversion.

National Defense Technology and Industrial Base Council.

National defense program for analysis of the technology and industrial base.

Repealed.]

National technology and industrial base: periodic defense capability as-
sessments.

National technology and industrial base: periodic defense capability plan.
Data collection authority of President.

$2501. Congressional defense policy concerning national technology and industrial base, reinvestment, and conversion

(a) DEFENSE POLICY OBJECTIVES FOR NATIONAL TECHNOLOGY AND INDUSTRIAL BASE. It is the policy of Congress that the national technology and industrial base be capable of meeting the following national security objectives:

(1) Supplying and equipping the force structure of the armed forces that is necessary to achieve

(A) the objectives set forth in the national security strategy report submitted to Congress by the President pursuant to section 108 of the National Security Act of 1947 (50 U.S.C. 404a);

(B) the policy guidance of the Secretary of Defense provided pursuant to section 113(g) of this title; and

(C) the future-years defense program submitted to Congress by the Secretary of Defense pursuant to section 221 of this title.

(2) Sustaining production, maintenance, repair, and logistics for military operations of various durations and intensity. (3) Maintaining advanced research and development activities to provide the armed forces with systems capable of ensuring technological superiority over potential adversaries.

(4) Reconstituting within a reasonable period the capability to develop and produce supplies and equipment, including technologically advanced systems, in sufficient quantities to prepare fully for a war, national emergency, or mobilization of the armed forces before the commencement of that war, national emergency, or mobilization.

2 For related provisions with respect to armament retooling and manufacturing, see the Armament Retooling and Manufacturing Support Act of 1992 (subtitle H of P.L. 102-484; 106 Stat. 2347), as amended by section 1141 of the National Defense Authorization Act for Fiscal Year 1995 (P.L. 103–337; 108 Stat. 2879).

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; 107 Stat. 1809). 8 Section 4218 of the National Defense Authorization Act for Fiscal Year 1993 (P.L. 102-484; 106 Stat. 2671), as amended by section 1141 of the National Defense Authorization Act for Fiscal Year 1995 (P.L. 103–337; 108 Stat. 2879) provides:

SEC. 4218. IMPLEMENTATION OF REQUIREMENTS FOR ASSESSMENT, PLANNING, AND ANALYSIS.

(a) REGULATIONS.-Not later than 90 days after the date of the enactment of this Act (Oct. 23, 1992), the Secretary of Defense shall prescribe regulations, including milestones for actions, to ensure the timely and thorough collection of information, completion of assessments, and issuance of plans to be accomplished by the Secretary of Defense that are required by the provisions of subchapter II of chapter 148. Such regulations shall be prescribed in consultation with the other heads of departments comprising the National Defense Technology and Industrial Base Council.

(b) [Omitted]

(c) TEXTILES.-The periodic national technology and industrial base assessment submitted to Congress pursuant to section 2506(e) of title 10, United States Code, shall include, through 1995, a specific assessment of the capability of the domestic textile and apparel industrial base of the United States to support national defense mobilization requirements. Each such assessment shall include the following:

(1) An identification of textile and apparel mobilization requirements of the Department of Defense that cannot be satisfied on a timely basis by domestic industries.

(2) An assessment of the effect that any inadequacy in the textile and apparel industrial base would have on a mobilization.

(3) Recommendations for ways to alleviate any such inadequacy that the Secretary considers critical to national defense mobilization requirements.

(5) Furthering the missions of the Department of Defense through the support of policy objectives and programs relating to the defense reinvestment, diversification, and conversion objectives specified in subsection (b).

(b) POLICY OBJECTIVES RELATING TO DEFENSE REINVESTMENT, DIVERSIFICATION, AND CONVERSION.-It is the policy of Congress that, during a period of reduction in defense expenditures, the United States further the national security objectives set forth in subsection (a) through programs of reinvestment, diversification, and conversion of defense resources that

(1) promote economic growth in high-wage, high-technology industries and preserve the industrial and technical skill base;

(2) promote economic growth through further reduction of the Federal budget deficit that, by reducing the public sector demand for capital, increases the amount of capital available for private investment and job creation in the civilian sector; (3) bolster the national technology base, including support and exploitation of critical technologies with both military and civilian application;

(4) support retraining of separated military, defense civilian, and defense industrial personnel for jobs in activities important to national economic growth and security;

(5) assist those activities being undertaken at the State and local levels to support defense economic reinvestment, conversion, adjustment, and diversification activities; and

(6) assist small businesses adversely affected by reductions in defense expenditures.

(c) 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, and amended P.L. 103–35, 201(c)(7), May 31, 1993, 107 Stat. 98; P.L. 103–160, §§ 1182(a)(10), 1313, Nov. 30, 1993, 107 Stat. 1771, 1786.)

§ 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.

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