US (United States) Code. Title 10. Subtitle A. Part IV. Chapter 148: National defense technology and industrial

Codificación normativa de EEUU (Estados Unidos). Legislación federal estadounidense # Armed Forces

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-CITE-

10 USC CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND

INDUSTRIAL BASE, DEFENSE REINVESTMENT, AND

DEFENSE CONVERSION 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

.

-HEAD-

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

-MISC1-

Subchapter Sec.

I. Definitions 2500

II. Policies and Planning 2501

III. Programs for Development, Application, and Support of

Dual-Use Technologies 2511

IV. Manufacturing Technology 2521

V. Miscellaneous Technology Base Policies and Programs

2531

VI. Defense Export Loan Guarantees 2540

VII. Critical Infrastructure Protection Loan Guarantees

2541

PRIOR PROVISIONS

A prior chapter 148, comprised of section 2501 et seq., relating

to defense industrial base, was repealed, except for sections 2504

to 2507, by Pub. L. 102-484, div. D, title XLII, Sec. 4202(a),

Oct. 23, 1992, 106 Stat. 2659. Sections 2504 to 2507 of that

chapter were renumbered sections 2531 to 2534, respectively, of

this chapter by Pub. L. 102-484, Sec. 4202(a).

A prior chapter 149, comprised of sections 2511 to 2518, relating

to manufacturing technology, was repealed, except for sections 2517

and 2518, by Pub. L. 102-484, div. D, title XLII, Sec. 4202(a),

Oct. 23, 1992, 106 Stat. 2659. Sections 2517 and 2518 of that

chapter were renumbered sections 2523 and 2522, respectively, of

this chapter by Pub. L. 102-484, div. D, title XLII, Sec. 4232(a),

4233(a), Oct. 23, 1992, 106 Stat. 2687, and were subsequently

repealed.

Another prior chapter 149, comprised of section 2511, was

successively renumbered chapter 150 of this title, comprised of

section 2521, then chapter 152 of this title, comprised of section

2540 et seq.

A prior chapter 150, comprised of sections 2521 to 2526, relating

to development of dual-use critical technologies, was repealed,

except for sections 2524 to 2526, by Pub. L. 102-484, div. D,

title XLII, Sec. 4202(a), Oct. 23, 1992, 106 Stat. 2659. Sections

2524, 2525, and 2526 of that chapter were renumbered sections 2513,

2517, and 2518, respectively, of this chapter by Pub. L. 102-484,

div. D, title XLII, Sec. 4223(a), 4227(a), 4228, Oct. 23, 1992,

106 Stat. 2681, 2685. Section 2513 of this chapter was subsequently

repealed.

Another prior chapter 150, comprised of section 2521, was

renumbered chapter 152 of this title, comprised of section 2540 et

seq.

AMENDMENTS

2000 - Pub. L. 106-398, Sec. 1 ((div. A), title X, Sec.

1033(a)(2)), Oct. 30, 2000, 114 Stat. 1654, 1654A-260, added item

for subchapter VII.

1998 - Pub. L. 105-261, div. A, title X, Sec. 1069(a)(4), Oct.

17, 1998, 112 Stat. 2136, substituted ''2500'' for ''2491'' in item

for subchapter I and struck out ''and Dual-Use Assistance Extension

Programs'' after ''Technology'' in item for subchapter IV.

1996 - Pub. L. 104-106, div. A, title XIII, Sec. 1321(a)(2),

Feb. 10, 1996, 110 Stat. 477, added item for subchapter VI.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in title 50 App. section 2171.

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10 USC SUBCHAPTER I - DEFINITIONS 01/06/03

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TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER I - DEFINITIONS

.

-HEAD-

SUBCHAPTER I - DEFINITIONS

-MISC1-

Sec.

2500. Definitions.

AMENDMENTS

1997 - Pub. L. 105-85, div. A, title III, Sec. 371(c)(4), Nov.

18, 1997, 111 Stat. 1705, renumbered item 2491 as 2500.

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10 USC Sec. 2500 01/06/03

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TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER I - DEFINITIONS

-HEAD-

Sec. 2500. Definitions

-STATUTE-

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.

(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) (FOOTNOTE 1) of the National

Science and Technology Policy, Organization, and Priorities Act

of 1976 (42 U.S.C. 6683(d)).

(FOOTNOTE 1) See References in Text note below.

(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

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(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 ''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 (l).

(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 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. 5342(d)).

-SOURCE-

(Added Pub. L. 102-484, div. D, title XLII, Sec. 4203(a), Oct. 23,

1992, 106 Stat. 2661, Sec. 2491; amended Pub. L. 103-160, div. A,

title XI, Sec. 1182(a)(9), title XIII, Sec. 1315(f), Nov. 30, 1993,

107 Stat. 1771, 1788; Pub. L. 103-337, div. A, title XI, Sec.

1113(d), 1115(e), Oct. 5, 1994, 108 Stat. 2866, 2869; Pub. L.

104-106, div. A, title X, Sec. 1081(h), Feb. 10, 1996, 110 Stat.

455; renumbered Sec. 2500 and amended Pub. L. 105-85, div. A,

title III, Sec. 371(b)(3), title X, Sec. 1073(a)(53), Nov. 18,

1997, 111 Stat. 1705, 1903.)

-REFTEXT-

REFERENCES IN TEXT

Section 603 of the National Science and Technology Policy,

Organization, and Priorities Act of 1976, referred to in par. (7),

was classified to section 6683 of Title 42, The Public Health and

Welfare, and was omitted from the Code.

-MISC2-

PRIOR PROVISIONS

Provisions similar to those in this section were contained in

former sections 2511 and 2521 of this title prior to repeal by Pub.

L. 102-484, Sec. 4202(a).

AMENDMENTS

1997 - Pub. L. 105-85, Sec. 371(b)(3), renumbered section 2491 of

this title as this section.

Par. (8). Pub. L. 105-85, Sec. 1073(a)(53), substituted ''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.'' for ''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.''

1996 - Pars. (11) to (16). Pub. L. 104-106 redesignated pars.

(13) to (16) as (11) to (14), respectively, and struck out former

pars. (11) and (12) which read as follows:

''(11) The term 'manufacturing extension program' means a public

or private, nonprofit program for the improvement of the quality,

productivity, and performance of United States-based 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.''

1994 - Par. (5). Pub. L. 103-337, Sec. 1113(d), inserted before

period at end '', except that such terms include a federally funded

research and development center sponsored by a Federal agency''.

Par. (16). Pub. L. 103-337, Sec. 1115(e), added par. (16).

1993 - Par. (2). Pub. L. 103-160, Sec. 1182(a)(9)(A), substituted

''nonmilitary applications'' for ''nonmilitary application''.

Par. (8). Pub. L. 103-160, Sec. 1182(a)(9)(B), substituted

''subsection (b)(4)'' for ''subsection (f)''.

Pars. (13) to (15). Pub. L. 103-160, Sec. 1315(f), added pars.

(13) to (15).

SHORT TITLE OF 1994 AMENDMENT

Section 1101 of title XI of div. A of Pub. L. 103-337 provided

that: ''This title (enacting sections 2519 and 2520 of this title,

amending this section, sections 1151, 1152, 2391, 2511 to 2513, and

2524 of this title, and sections 1662d and 1662d-1 of Title 29,

Labor, and enacting and amending provisions set out as notes under

section 2501 of this title) may be cited as the 'Defense

Conversion, Reinvestment, and Transition Assistance Amendments of

1994'.''

SHORT TITLE OF 1993 AMENDMENT

Section 1301 of title XIII of div. A of Pub. L. 103-160 provided

that: ''This title (enacting sections 1152 and 1153 of this title

and sections 1279d, 1279e, and 1280a of the Appendix to Title 46,

Shipping, amending this section, sections 1142, 1151, 1598, 2410j,

2501, 2502, 2511 to 2513, 2523, and 2524 of this title, sections

1551 and 1662d-1 of Title 29, Labor, section 31326 of Title 46, and

sections 1271, 1273, 1274, and 1274a of the Appendix to Title 46,

repealing section 2504 of this title, enacting provisions set out

as notes under sections 1143, 1151, 2501, 2511, 2701, and 5013 of

this title, section 1662d-1 of Title 29, and sections 1279b and

1279d of the Appendix to Title 46, amending provisions set out as

notes under sections 1143, 2391, and 2501 of this title, and

repealing provisions set out as a note under section 2701 of this

title) may be cited as the 'Defense Conversion, Reinvestment, and

Transition Assistance Amendments of 1993'.''

SHORT TITLE

Section 4001 of Pub. L. 102-484 provided that: ''This division

(div. D (Sec. 4001-4501) of Pub. L. 102-484, see Tables for

classification) may be cited as the 'Defense Conversion,

Reinvestment, and Transition Assistance Act of 1992'.''

APPLICATION OF 1993 AMENDMENTS TO EXISTING TECHNOLOGY REINVESTMENT

PROJECTS

Amendment by section 1315(f) of Pub. L. 103-160 not to alter

financial commitment requirements in effect on the day before Nov.

30, 1993, for non-Federal Government participants in a project

funded under section 2511, 2512, 2513, 2523, or 2524 of this title,

using funds appropriated for a fiscal year beginning before Oct. 1,

1993, see section 1315(g) of Pub. L. 103-160, set out as a note

under section 2511 of this title.

CONGRESSIONAL FINDINGS

Section 4101 of Pub. L. 102-484 provided that: ''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

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''(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.''

PURPOSES OF TITLE XLII OF PUB. L. 102-484

Section 4201 of title XLII of div. D of Pub. L. 102-484 provided

that: ''The purposes of this title (see Tables for classification)

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.''

TRANSITION PROVISION; ''DEFENSE CRITICAL TECHNOLOGY'' DEFINED

Section 4203(b) of Pub. L. 102-484 provided that until first

national technology and industrial base assessment was submitted to

Congress by Secretary of Defense pursuant to former section 2506(e)

of this title, the term ''defense critical technology'' for

purposes of this chapter, would have meaning given such term in

section 2521 of this title, as in effect on day before Oct. 23,

1992.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2474, 2534 of this title.

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10 USC SUBCHAPTER II - POLICIES AND PLANNING 01/06/03

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TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER II - POLICIES AND PLANNING

.

-HEAD-

SUBCHAPTER II - POLICIES AND PLANNING

-MISC1-

Sec.

2501. National security objectives concerning national technology

and industrial base.

2502. National Defense Technology and Industrial Base Council.

2503. National defense program for analysis of the technology and

industrial base.

2504. Annual report to Congress.

2505. National technology and industrial base: periodic defense

capability assessments.

2506. Department of Defense technology and industrial base policy

guidance.

2507. Data collection authority of President.

AMENDMENTS

1996 - Pub. L. 104-201, div. A, title VIII, Sec. 829(g), Sept.

23, 1996, 110 Stat. 2614, added item 2504 and substituted

''Department of Defense technology and industrial base policy

guidance'' for ''National technology and industrial base: periodic

defense capability plan'' in item 2506.

Pub. L. 104-106, div. A, title X, Sec. 1081(i)(1), Feb. 10,

1996, 110 Stat. 455, substituted ''National security objectives

concerning national technology and industrial base'' for

''Congressional defense policy concerning national technology and

industrial base, reinvestment, and conversion'' in item 2501.

1993 - Pub. L. 103-160, div. A, title XIII, Sec. 1312(a)(2),

Nov. 30, 1993, 107 Stat. 1786, struck out item 2504 ''Center for

the Study of Defense Economic Adjustment''.

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10 USC Sec. 2501 01/06/03

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TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER II - POLICIES AND PLANNING

-HEAD-

Sec. 2501. National security objectives concerning national

technology and industrial base

-STATUTE-

(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) 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.

-SOURCE-

(Added Pub. L. 102-484, div. D, title XLII, Sec. 4211, Oct. 23,

1992, 106 Stat. 2662; amended Pub. L. 103-35, title II, Sec.

201(c)(7), May 31, 1993, 107 Stat. 98; Pub. L. 103-160, div. A,

title XI, Sec. 1182(a)(10), title XIII, Sec. 1313, Nov. 30, 1993,

107 Stat. 1771, 1786; Pub. L. 104-106, div. A, title X, Sec.

1081(a), Feb. 10, 1996, 110 Stat. 452; Pub. L. 104-201, div. A,

title VIII, Sec. 829(a), Sept. 23, 1996, 110 Stat. 2612.)

-MISC1-

PRIOR PROVISIONS

A prior section 2501, added Pub. L. 100-456, div. A, title VIII,

Sec. 821(b)(1)(B), Sept. 29, 1988, 102 Stat. 2014, related to

centralized guidance, analysis, and planning, prior to repeal by

Pub. L. 102-484, Sec. 4202(a).

Another prior section 2501 was renumbered section 2533 of this

title.

AMENDMENTS

1996 - Pub. L. 104-106, Sec. 1081(a)(2), substituted ''National

security objectives concerning national technology and industrial

base'' for ''Congressional defense policy concerning national

technology and industrial base, reinvestment, and conversion'' as

section catchline.

Subsec. (a). Pub. L. 104-106, Sec. 1081(a)(1)(A)(i), substituted

''National Security'' for ''Defense Policy'' in heading.

Subsec. (a)(5). Pub. L. 104-201 added par. (5).

Pub. L. 104-106, Sec. 1081(a)(1)(A)(ii), struck out par. (5)

which read as follows: ''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).''

Subsecs. (b), (c). Pub. L. 104-106, Sec. 1081(a)(1)(B), (C),

redesignated subsec. (c) as (b) and struck out former subsec. (b)

which stated policy objectives of Congress relating to defense

reinvestment, diversification, and conversion.

1993 - Subsec. (a)(1)(A). Pub. L. 103-35 substituted ''section

108'' for ''section 104''.

Subsec. (a)(5). Pub. L. 103-160, Sec. 1313, added par. (5).

Subsec. (b)(2). Pub. L. 103-160, Sec. 1182(a)(10), substituted

''that, by reducing the public sector demand for capital, increases

the amount of capital available'' for ''and thereby free up

capital''.

AIR FORCE SCIENCE AND TECHNOLOGY PLANNING

Pub. L. 107-107, div. A, title II, subtitle D, Dec. 28, 2001,

115 Stat. 1041, provided that:

''SEC. 251. SHORT TITLE.

''This subtitle may be cited as the 'Air Force Science and

Technology for the 21st Century Act'.

''SEC. 252. SCIENCE AND TECHNOLOGY INVESTMENT AND DEVELOPMENT

PLANNING.

''(a) Sense of Congress. - It is the sense of Congress that the

Secretary of the Air Force should carry out each of the following:

''(1) Continue and improve efforts to ensure that -

''(A) the Air Force science and technology community is

represented, and the recommendations of that community are

considered, at all levels of program planning and budgetary

decisionmaking within the Air Force;

''(B) advocacy for science and technology development is

institutionalized across all levels of Air Force management in

a manner that is not dependent on individuals; and

''(C) the value of Air Force science and technology

development is made increasingly apparent to the warfighters,

by linking the needs of those warfighters with decisions on

science and technology development.

''(2) Complete and adopt a policy directive that provides for

changes in how the Air Force makes budgetary and nonbudgetary

decisions with respect to its science and technology development

programs and how it carries out those programs.

''(3) At least once every five years, conduct a review of the

long-term challenges and short-term objectives of the Air Force

science and technology programs that is consistent with the

review specified in section 252 of the Floyd D. Spence National

Defense Authorization Act for Fiscal Year 2001 (as enacted into

law by Public Law 106-398; 114 Stat. 1654A-46 (set out as a note

below)).

''(4) Ensure that development and science and technology

planning and investment activities are carried out for future

space warfighting systems and for future nonspace warfighting

systems in an integrated manner.

''(5) Elevate the position within the Office of the Secretary

of the Air Force that has primary responsibility for budget and

policy decisions for science and technology programs.

''(b) Reinstatement of Development Planning. - (1) The Secretary

of the Air Force shall reinstate and implement a revised

development planning process that provides for each of the

following:

''(A) Coordinating the needs of Air Force warfighters with

decisions on science and technology development.

''(B) Giving input into the establishment of priorities among

science and technology programs.

''(C) Analyzing Air Force capability options for the allocation

of Air Force resources.

''(D) Developing concepts for technology, warfighting systems,

and operations with which the Air Force can achieve its critical

future goals.

''(E) Evaluating concepts for systems and operations that

leverage technology across Air Force organizational boundaries.

''(F) Ensuring that a 'system-of-systems' approach is used in

carrying out the various Air Force capability planning exercises.

''(G) Utilizing existing analysis capabilities within the Air

Force product centers in a collaborative and integrated manner.

''(2) Not later than one year after the date of the enactment of

this Act (Dec. 28, 2001), the Secretary of the Air Force shall

submit to Congress a report on the implementation of the planning

process required by paragraph (1). The report shall include the

annual amount that the Secretary considers necessary to carry out

paragraph (1).

''SEC. 253. STUDY AND REPORT ON EFFECTIVENESS OF AIR FORCE SCIENCE

AND TECHNOLOGY PROGRAM CHANGES.

''(a) Requirement. - The Secretary of the Air Force, in

cooperation with the National Research Council of the National

Academy of Sciences, shall carry out a study to determine how the

changes to the Air Force science and technology program implemented

during the past two years affect the future capabilities of the Air

Force.

''(b) Matters Studied. - (1) The study shall review and assess

whether such changes as a whole are sufficient to ensure the

following:

''(A) That the concerns about the management of the science and

technology program that have been raised by Congress, the Defense

Science Board, the Air Force Science Advisory Board, and the Air

Force Association have been adequately addressed.

''(B) That appropriate and sufficient technology is available

to ensure the military superiority of the United States and

counter future high-risk threats.

''(C) That the science and technology investments are balanced

to meet the near-, mid-, and long-term needs of the Air Force.

''(D) That technologies are made available that can be used to

respond flexibly and quickly to a wide range of future threats.

''(E) That the Air Force organizational structure provides for

a sufficiently senior level advocate of science and technology to

ensure an ongoing, effective presence of the science and

technology community during the budget and planning process.

''(2) In addition, the study shall assess the specific changes to

the Air Force science and technology program as follows:

''(A) Whether the biannual science and technology summits

provide sufficient visibility into, and understanding and

appreciation of, the value of the science and technology program

to the senior level of Air Force budget and policy

decisionmakers.

''(B) Whether the applied technology councils are effective in

contributing the input of all levels beneath the senior

leadership into the coordination, focus, and content of the

science and technology program.

''(C) Whether the designation of the commander of the Air Force

Materiel Command as the science and technology budget advocate is

effective to ensure that an adequate Air Force science and

technology budget is requested.

''(D) Whether the revised development planning process is

effective to aid in the coordination of the needs of the Air

Force warfighters with decisions on science and technology

investments and the establishment of priorities among different

science and technology programs.

''(E) Whether the implementation of section 252 of the Floyd D.

Spence National Defense Authorization Act for Fiscal Year 2001

(as enacted into law by Public Law 106-398; 114 Stat. 1654A-46

(set out as a note below)) is effective to identify the basis for

the appropriate science and technology program funding level and

investment portfolio.

''(c) Report. - Not later than May 1, 2003, the Secretary of the

Air Force shall submit to Congress the results of the study.''

Pub. L. 106-398, Sec. 1 ((div. A), title II, Sec. 252), Oct. 30,

2000, 114 Stat. 1654, 1654A-46, provided that:

''(a) Requirement for Review. - The Secretary of the Air Force

shall conduct a review of the long-term challenges and short-term

objectives of the Air Force science and technology programs. The

Secretary shall complete the review not later than one year after

the date of the enactment of this Act (Oct. 30, 2000).

''(b) Matters To Be Reviewed. - The review shall include the

following:

''(1) An assessment of the budgetary resources that are being

used for fiscal year 2001 for addressing the long-term challenges

and the short-term objectives of the Air Force science and

technology programs.

''(2) The budgetary resources that are necessary to address

those challenges and objectives adequately.

''(3) A course of action for each projected or ongoing Air

Force science and technology program that does not address either

the long-term challenges or the short-term objectives.

''(4) The matters required under subsection (c)(5) and (d)(6).

''(c) Long-Term Challenges. - (1) The Secretary of the Air Force

shall establish an integrated product team to identify high-risk,

high-payoff challenges that will provide a long-term focus and

motivation for the Air Force science and technology programs over

the next 20 to 50 years following the enactment of this Act (Oct.

30, 2000). The integrated product team shall include

representatives of the Office of Scientific Research and personnel

from the Air Force Research Laboratory.

''(2) The team shall solicit views from the entire Air Force

science and technology community on the matters under consideration

by the team.

''(3) The team -

''(A) shall select for consideration science and technology

challenges that involve -

''(i) compelling requirements of the Air Force;

''(ii) high-risk, high-payoff areas of exploration; and

''(iii) very difficult, but probably achievable, results; and

''(B) should not select a linear extension of any ongoing Air

Force science and technology program for consideration as a

science and technology challenge under subparagraph (A).

''(4) The Deputy Assistant Secretary of the Air Force for

Science, Technology, and Engineering shall designate a technical

coordinator and a management coordinator for each science and

technology challenge identified pursuant to this subsection. Each

technical coordinator shall have sufficient expertise in fields

related to the challenge to be able to identify other experts in

such fields and to affirm the credibility of the challenge. The

coordinator for a science and technology challenge shall conduct

workshops within the relevant scientific and technological

community to obtain suggestions for possible approaches to

addressing the challenge and to identify ongoing work that

addresses the challenge, deficiencies in current work relating to

the challenge, and promising areas of research.

''(5) In carrying out subsection (a), the Secretary of the Air

Force shall review the science and technology challenges identified

pursuant to this subsection and, for each such challenge, at a

minimum -

''(A) consider the results of the workshops conducted pursuant

to paragraph (4); and

''(B) identify any work not currently funded by the Air Force

that should be performed to meet the challenge.

''(d) Short-Term Objectives. - (1) The Secretary of the Air Force

shall establish a task force to identify short-term technological

objectives of the Air Force science and technology programs. The

task force shall be chaired by the Deputy Assistant Secretary of

the Air Force for Science, Technology, and Engineering and shall

include representatives of the Chief of Staff of the Air Force and

the specified combatant commands of the Air Force.

''(2) The task force shall solicit views from the entire Air

Force requirements community, user community, and acquisition

community.

''(3) The task force shall select for consideration short-term

objectives that involve -

''(A) compelling requirements of the Air Force;

''(B) support in the user community; and

''(C) likely attainment of the desired benefits within a

five-year period.

''(4) The Deputy Assistant Secretary of the Air Force for

Science, Technology, and Engineering shall establish an integrated

product team for each short-term objective identified pursuant to

this subsection. Each integrated product team shall include

representatives of the requirements community, the user community,

and the science and technology community with relevant expertise.

''(5) The integrated product team for a short-term objective

shall be responsible for -

''(A) identifying, defining, and prioritizing the enabling

capabilities that are necessary for achieving the objective;

''(B) identifying deficiencies in the enabling capabilities

that must be addressed if the short-term objective is to be

achieved; and

''(C) working with the Air Force science and technology

community to identify science and technology projects and

programs that should be undertaken to eliminate each deficiency

in an enabling capability.

''(6) In carrying out subsection (a), the Secretary of the Air

Force shall review the short-term science and technology objectives

identified pursuant to this subsection and, for each such

objective, at a minimum -

''(A) consider the work of the integrated product team

conducted pursuant to paragraph (5); and

''(B) identify the science and technology work of the Air Force

that should be undertaken to eliminate each deficiency in

enabling capabilities that is identified by the integrated

product team pursuant to subparagraph (B) of that paragraph.

''(e) Comptroller General Review. - (1) Not later than 90 days

after the Secretary of the Air Force completes the review required

by subsection (a), the Comptroller General shall submit to Congress

a report on the results of the review. The report shall include

the Comptroller General's assessment regarding the extent to which

the review was conducted in compliance with the requirements of

this section.

''(2) Immediately upon completing the review required by

subsection (a), the Secretary of Defense shall notify the

Comptroller General of the completion of the review. For the

purposes of paragraph (1), the date of the notification shall be

considered the date of the completion of the review.''

REPORT BY UNDER SECRETARY OF DEFENSE FOR ACQUISITION, TECHNOLOGY,

AND LOGISTICS

Pub. L. 106-65, div. A, title II, Sec. 243, Oct. 5, 1999, 113

Stat. 551, provided that:

''(a) Requirement. - The Under Secretary of Defense for

Acquisition, Technology, and Logistics shall submit to the

congressional defense committees (Committees on Armed Services and

Appropriations of the Senate and the House of Representatives) a

report on the actions that are necessary to promote the research

base and technological development that will be needed for ensuring

that the Armed Forces have the military capabilities that are

necessary for meeting national security requirements over the next

two to three decades.

''(b) Content. - The report shall include the actions that have

been taken or are planned to be taken within the Department of

Defense to ensure that -

''(1) the Department of Defense laboratories place an

appropriate emphasis on revolutionary changes in military

operations and the new technologies that will be necessary to

support those operations;

''(2) the Department helps sustain a high-quality national

research base that includes organizations attuned to the needs of

the Department, the fostering and creation of revolutionary

technologies useful to the Department, and the capability to

identify opportunities for new military capabilities in emerging

scientific knowledge;

''(3) the Department can identify, provide appropriate funding

for, and ensure the coordinated development of joint technologies

that will serve the needs of more than one of the Armed Forces;

''(4) the Department can identify militarily relevant

technologies that are developed in the private sector, rapidly

incorporate those technologies into defense systems, and

effectively utilize technology transfer processes;

''(5) the Department can effectively and efficiently manage the

transition of new technologies from the applied research and

advanced technological development stage through the product

development stage in a manner that ensures that maximum advantage

is obtained from advances in technology; and

''(6) the Department's educational institutions for the

officers of the uniformed services incorporate into their officer

education and training programs, as appropriate, materials

necessary to ensure that the officers have the familiarity with

the processes, advances, and opportunities in technology

development that is necessary for making decisions that ensure

the superiority of United States defense technology in the

future.''

SENSE OF CONGRESS ON DEFENSE SCIENCE AND TECHNOLOGY PROGRAM

Pub. L. 106-65, div. A, title II, Sec. 212, Oct. 5, 1999, 113

Stat. 542, provided that:

''(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) (set out as a note below), 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.''

Pub. L. 105-261, div. A, title II, Sec. 214, Oct. 17, 1998, 112

Stat. 1948, provided that:

''(a) Funding Requirements for the Defense Science and Technology

Program Budget. - It is the sense of Congress that, for each of the

fiscal years 2000 through 2008, it should be an objective of the

Secretary of Defense to increase the budget for the Defense Science

and Technology Program 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.

''(b) Guidelines for the Defense Science and Technology Program.

-

''(1) Relationship of defense science and technology program to

university research. - It is the sense of Congress that the

following should be key objectives of the Defense Science and

Technology Program:

''(A) The sustainment of research capabilities in scientific

and engineering disciplines critical to the Department of

Defense.

''(B) The education and training of the next generation of

scientists and engineers in disciplines that are relevant to

future defense systems, particularly through the conduct of

basic research.

''(C) The continued support of the Defense Experimental

Program to Stimulate Competitive Research and research programs

at historically black colleges and universities and minority

institutions.

''(2) Relationship of the defense science and technology

program to commercial research and technology. - (A) It is the

sense of Congress that, in supporting projects within the Defense

Science and Technology Program, the Secretary of Defense should

attempt to leverage commercial research, technology, products,

and processes for the benefit of the Department of Defense.

''(B) It is the sense of Congress that funds made available for

projects and programs of the Defense Science and Technology

Program should be used only for the benefit of the Department of

Defense, which includes -

''(i) the development of technology that has only military

applications;

''(ii) the development of militarily useful, commercially

viable technology; and

''(iii) the adaptation of commercial technology, products, or

processes for military purposes.

''(3) Synergistic management of research and development. - It

is the sense of Congress that the Secretary of Defense should

have the flexibility to allocate a combination of funds available

for the Department of Defense for basic and applied research and

for advanced development to support any individual project or

program within the Defense Science and Technology Program, but

such flexibility should not change the allocation of funds in any

fiscal year among basic and applied research and advanced

development.

''(4) Management of science and technology. - It is the sense

of Congress that -

''(A) management and funding for the Defense Science and

Technology Program for each military department should receive

a level of priority and leadership attention equal to the level

received by program acquisition, and the Secretary of each

military department should ensure that a senior official in the

department holds the appropriate title and responsibility to

ensure effective oversight and emphasis on science and

technology;

''(B) to ensure an appropriate long-term focus for

investments, a sufficient percentage of science and technology

funds should be directed toward new technology areas, and

annual reviews should be conducted for ongoing research areas

to ensure that those funded initiatives are either integrated

into acquisition programs or discontinued when appropriate;

''(C) the Secretary of each military department should take

appropriate steps to ensure that sufficient numbers of officers

and civilian employees in the department hold advanced degrees

in technical fields; and

''(D) of particular concern, the Secretary of the Air Force

should take appropriate measures to ensure that sufficient

numbers of scientists and engineers are maintained to address

the technological challenges faced in the areas of air, space,

and information technology.

''(c) Study. -

''(1) Requirement. - The Secretary of Defense, in cooperation

with the National Research Council of the National Academy of

Sciences, shall conduct a study on the technology base of the

Department of Defense.

''(2) Matters covered. - The study shall -

''(A) result in recommendations on the minimum requirements

for maintaining a technology base that is sufficient, based on

both historical developments and future projections, to project

superiority in air and space weapons systems and in information

technology;

''(B) address the effects on national defense and civilian

aerospace industries and information technology of reducing

funding below the goal described in subsection (a); and

''(C) result in recommendations on the appropriate levels of

staff with baccalaureate, masters, and doctorate degrees, and

the optimal ratio of civilian and military staff holding such

degrees, to ensure that science and technology functions of the

Department of Defense remain vital.

''(3) Report. - Not later than 120 days after the date on which

the study required under paragraph (1) is completed, the

Secretary shall submit to Congress a report on the results of the

study.

''(d) Definitions. - In this section:

''(1) The term 'Defense Science and Technology Program' means

basic and applied research and advanced development.

''(2) The term 'basic and applied research' means work funded

in program elements for defense research and development under

Department of Defense category 6.1 or 6.2.

''(3) The term 'advanced development' means work funded in

program elements for defense research and development under

Department of Defense category 6.3.''

ANNUAL JOINT WARFIGHTING SCIENCE AND TECHNOLOGY PLAN

Section 270 of Pub. L. 104-201, as amended by Pub. L. 106-65,

div. A, title II, Sec. 242, title X, Sec. 1067(5), Oct. 5, 1999,

113 Stat. 551, 774, provided that:

''(a) Annual Plan Required. - On March 1 of each year, the

Secretary of Defense shall submit to the Committee on Armed

Services of the Senate and the Committee on Armed Services of the

House of Representatives a plan for ensuring that the science and

technology program of the Department of Defense supports the

development of the future joint warfighting capabilities identified

as priority requirements for the Armed Forces.

''(b) Technology Area Review and Assessment. - With the

submission of the plan under subsection (a) each year, the

Secretary shall also submit to the committees referred to in that

subsection a summary of each technology area review and assessment

conducted by the Department of Defense in support of that plan.''

COST REIMBURSEMENT RULES FOR INDIRECT COSTS ATTRIBUTABLE TO PRIVATE

SECTOR WORK OF DEFENSE CONTRACTORS

Section 808 of Pub. L. 104-106 authorized Secretary of Defense to

enter into agreements with defense contractors under which certain

cost reimbursement rules would be applied and required submission

of report to congressional defense committees not later than one

year after Feb. 10, 1996, prior to repeal by Pub. L. 105-85, div.

A, title X, Sec. 1027(d), Nov. 18, 1997, 111 Stat. 1880. See

section 7315 of this title.

DOCUMENTATION FOR AWARDS FOR COOPERATIVE AGREEMENTS OR OTHER

TRANSACTIONS UNDER DEFENSE TECHNOLOGY REINVESTMENT PROGRAMS

Pub. L. 103-337, div. A, title XI, Sec. 1118, Oct. 5, 1994, 108

Stat. 2870, provided that: ''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 (former) section 2501(b)

of such title.''

REPORTS ON DEFENSE CONVERSION, REINVESTMENT, AND TRANSITION

ASSISTANCE PROGRAMS

Section 1303 of Pub. L. 103-160 provided that:

''(a) Report Required. - During each of the fiscal years 1994,

1995, and 1996, the Secretary of Defense shall prepare a report

that assesses the effectiveness of all defense conversion,

reinvestment, and transition assistance programs (as defined in

section 1302 (107 Stat. 1783)) during the preceding fiscal year.

''(b) Contents of Report. - To the maximum extent practicable,

each report required under subsection (a) shall include an

assessment of each of the following:

''(1) The status of the obligation of appropriated funds for

each defense conversion, reinvestment, and transition assistance

program.

''(2) With respect to each component of the dual-use

partnership program element specified in paragraphs (1) through

(10) of section 1311(b) (107 Stat. 1785) -

''(A) the extent to which the component meets the objectives

set forth in section 2501 of title 10, United States Code;

''(B) the technology benefits of the component to the

national technology and industrial base;

''(C) any evidence of commercialization of technologies

developed under the component;

''(D) the extent to which the investments under the component

have affected levels of employment;

''(E) the number of defense firms participating in

cooperative agreements or other arrangements under the

component;

''(F) the extent to which matching fund requirements of the

component were met by cash contributions by the non-Federal

Government participants;

''(G) the extent to which defense technology reinvestment

projects under the component have met milestones and financial

and technical requirements;

''(H) the extent to which the component is integrated with

technology programs conducted by other Federal agencies; and

''(I) the number of proposals under the component that were

received from small business concerns and the number of awards

made to small business concerns.

''(3) With respect to each personnel assistance program

conducted under subtitle C of this title (subtitle C, Sec.

1331-1339 of title XIII of div. A of Pub. L. 103-160, enacting

sections 1152 and 1153 of this title, amending sections 1142,

1151, 1598, and 2410j of this title and sections 1551 and 1662d-1

of Title 29, Labor, enacting provisions set out as notes under

sections 1143, 1151, and 2701 of this title, repealing provisions

set out as a note under section 2701 of this title, and amending

provisions set out as a note under section 1143 of this title),

title XLIV of the Defense Conversion, Reinvestment, and

Transition Assistance Act of 1992 (division D of Public Law

102-484; 106 Stat. 2701) (see Tables for classification), and the

amendments made by that subtitle or title -

''(A) the extent to which the program meets the objectives

set forth in section 2501(b) of title 10, United States Code;

''(B) the number of individuals eligible for transition

assistance under the program;

''(C) the number of individuals directly receiving transition

assistance under the program and the projected number of

individuals who will directly receive transition assistance;

''(D) in the case of a job training program, an estimate of

the number of individuals who have secured permanent employment

as a result of participation in the program; and

''(E) the extent to which the transition assistance

activities under the program duplicated other transition

assistance provided or administered outside the Department of

Defense.

''(c) Submission of Report. - The report required under

subsection (a) for a particular fiscal year shall be submitted to

Congress at the same time that the Secretary of Defense submits the

annual report required under section 113(c) of title 10, United

States Code, for that fiscal year.''

NATIONAL SHIPBUILDING INITIATIVE

Sections 1351 to 1354 of Pub. L. 103-160, as amended by Pub. L.

104-201, div. A, title X, Sec. 1073(e)(1)(F), (2)(B), (3), Sept.

23, 1996, 110 Stat. 2658, provided that:

''SEC. 1351. SHORT TITLE.

''This subtitle (subtitle D, Sec. 1351-1363 of title XIII of

div. A of Pub. L. 103-160, enacting sections 1279d, 1279e, and

1280a of the Appendix to Title 46, Shipping, amending section 31326

of Title 46 and sections 1271, 1273, 1274, and 1274a of the

Appendix to Title 46, and enacting provisions set out as notes

under sections 1279b and 1279d of the Appendix to Title 46) 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 -

''(1) by the Secretary of Defense, with respect to programs

under the jurisdiction of the Secretary of Defense; and

''(2) 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:

''(1) Financial incentives program. - 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.

''(2) Technology development program. - 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.

''(3) Navy's affordability through commonality program. -

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.

''(4) Navy's manufacturing technology and technology base

programs. - 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:

''(1) 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 -

''(A) development and transfer to the private sector of

dual-use shipbuilding technologies, ship repair technologies,

and shipbuilding management technologies;

''(B) assessments of potential markets for maritime products;

and

''(C) recommendation of industrial entities, partnerships,

joint ventures, or consortia for short- and long-term

manufacturing technology investment strategies.

''(2) Funding and program management activities to develop

innovative design and production processes and the technologies

required to implement those processes.

''(3) 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).

''(4) 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. -

''(1) Maximum department of defense share. - 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.

''(2) Regulations. - 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.''

(For transfer of authorities, functions, personnel, and assets of

the Coast Guard, including the authorities and functions of the

Secretary of Transportation relating thereto, to the Department of

Homeland Security, and for treatment of related references, see

sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic

Security, and the Department of Homeland Security Reorganization

Plan of November 25, 2002, as modified, set out as a note under

section 542 of Title 6.)

ARMAMENT RETOOLING AND MANUFACTURING SUPPORT INITIATIVE

Subtitle H of title I of div. A of Pub. L. 102-484, as amended

by Pub. L. 103-35, title II, Sec. 202(a)(1), May 31, 1993, 107

Stat. 100; Pub. L. 103-337, div. A, title XI, Sec. 1141(a), (b),

Oct. 5, 1994, 108 Stat. 2879; Pub. L. 104-201, div. A, title I,

Sec. 143, Sept. 23, 1996, 110 Stat. 2449; Pub. L. 105-261, div. A,

title I, Sec. 115, Oct. 17, 1998, 112 Stat. 1939; Pub. L. 106-65,

div. A, title I, Sec. 116, Oct. 5, 1999, 113 Stat. 533, known as

the ''Armament Retooling and Manufacturing Support Act of 1992'',

authorized the Secretary of the Army, during fiscal years 1993

through 2001, to carry out the Armament Retooling and Manufacturing

Support Initiative, prior to repeal by Pub. L. 106-398, Sec. 1

((div. A), title III, Sec. 344(d)), Oct. 30, 2000, 114 Stat. 1654,

1654A-71.

IMPLEMENTATION OF REQUIREMENTS FOR ASSESSMENT, PLANNING, AND

ANALYSIS

Section 4218 of Pub. L. 102-484 related to collection of

information, completion of assessments, and issuance of plans

required by this subchapter, prior to repeal by Pub. L. 104-201,

div. A, title VIII, Sec. 829(h), Sept. 23, 1996, 110 Stat. 2614.

INDUSTRIAL DIVERSIFICATION PLANNING FOR DEFENSE CONTRACTORS

Section 4239 of Pub. L. 102-484 provided that: ''Not later than

120 days after the date of enactment of this Act (Oct. 23, 1992),

the Secretary of Defense shall prescribe regulations to encourage

defense contractors to engage in industrial diversification

planning.''

NOTICE TO CONTRACTORS AND EMPLOYEES UPON PROPOSED AND ACTUAL

TERMINATION OR SUBSTANTIAL REDUCTION IN MAJOR DEFENSE PROGRAMS

Section 4471 of Pub. L. 102-484, as amended by Pub. L. 103-160,

div. A, title XIII, Sec. 1372, Nov. 20, 1993, 107 Stat. 1817; Pub.

L. 103-337, div. A, title XI, Sec. 1142, Oct. 5, 1994, 108 Stat.

2881; Pub. L. 104-201, div. A, title VIII, Sec. 824, Sept. 23,

1996, 110 Stat. 2610; Pub. L. 105-85, div. A, title X, Sec.

1073(d)(2)(C), Nov. 18, 1997, 111 Stat. 1905; Pub. L. 105-277,

div. A, Sec. 101(f) (title VIII, Sec. 405(d)(7)(C), (f)(6)(C)),

Oct. 21, 1998, 112 Stat. 2681-337, 2681-419, 2681-430, provided

that:

''(a) Notice Requirement After Enactment of Appropriations Act. -

Each year, not later than 60 days after the date of the enactment

of an Act appropriating funds for the military functions of the

Department of Defense, the Secretary of Defense, in accordance with

regulations prescribed by the Secretary -

''(1) shall identify each contract (if any) under major defense

programs of the Department of Defense that will be terminated or

substantially reduced as a result of the funding levels provided

in that Act; and

''(2) shall ensure that notice of the termination of, or

substantial reduction in, the funding of the contract is provided

-

''(A) directly to the prime contractor under the contract;

and

''(B) directly to the Secretary of Labor.

''(b) Notice to Subcontractors. - Not later than 60 days after

the date on which the prime contractor for a contract under a major

defense program receives notice under subsection (a), the prime

contractor shall -

''(1) provide notice of that termination or substantial

reduction to each person that is a first-tier subcontractor under

that prime contract for subcontracts in an amount not less than

$500,000; and

''(2) require that each such subcontractor -

''(A) provide such notice to each of its subcontractors for

subcontracts in an amount in excess of $100,000; and

''(B) impose a similar notice and pass through requirement to

subcontractors in an amount in excess of $100,000 at all tiers.

''(c) Contractor Notice to Employees and State Dislocated Worker

Unit. - Not later than two weeks after a defense contractor

receives notice under subsection (a), the contractor shall provide

notice of such termination or substantial reduction to -

''(1)(A) each representative of employees whose work is

directly related to the defense contract under such program and

who are employed by the defense contractor; or

''(B) if there is no such representative at that time, each

such employee; and

''(2) the State or entity designated by the State to carry out

rapid response activities under section 134(a)(2)(A) of the

Workforce Investment Act of 1998 (29 U.S.C. 2864(a)(2)(A)), and

the chief elected official of the unit of general local

government within which the adverse effect may occur.

''(d) Constructive Notice. - The notice of termination of, or

substantial reduction in, a defense contract provided under

subsection (c)(1) to an employee of a contractor shall have the

same effect as a notice of termination to such employee for the

purposes of determining whether such employee is eligible to

participate in employment and training activities carried out under

title I of the Workforce Investment Act of 1998 (29 U.S.C. 2801 et

seq.), except in a case in which the employer has specified that

the termination of, or substantial reduction in, the contract is

not likely to result in plant closure or mass layoff.

''(e) Loss of Eligibility. - An employee who receives a notice of

withdrawal or cancellation of the termination of, or substantial

reduction in, contract funding shall not be eligible, on the basis

of any related reduction in funding under the contract, to

participate in employment and training activities under title I of

the Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.),

beginning on the date on which the employee receives the notice.

''(f) Definitions. - For purposes of this section:

''(1) The term 'major defense program' means a program that is

carried out to produce or acquire a major system (as defined in

section 2302(5) of title 10, United States Code).

''(2) The terms 'substantial reduction' and 'substantially

reduced', with respect to a defense contract under a major

defense program, mean a reduction of 25 percent or more in the

total dollar value of the funds obligated by the contract.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2198, 2500, 2502, 2505,

2506, 2511, 2514, 2515, 2519, 2521, 2540, 2541, 2709, 7315 of this

title.

-CITE-

10 USC Sec. 2502 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER II - POLICIES AND PLANNING

-HEAD-

Sec. 2502. National Defense Technology and Industrial Base Council

-STATUTE-

(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

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).

-SOURCE-

(Added Pub. L. 102-484, div. D, title XLII, Sec. 4212(a), Oct. 23,

1992, 106 Stat. 2664; amended Pub. L. 103-160, div. A, title XIII,

Sec. 1312(b), Nov. 30, 1993, 107 Stat. 1786; Pub. L. 103-337, div.

A, title X, Sec. 1070(a)(12), Oct. 5, 1994, 108 Stat. 2856; Pub. L.

104-106, div. A, title X, Sec. 1081(b), Feb. 10, 1996, 110 Stat.

452; Pub. L. 104-201, div. A, title VIII, Sec. 829(c)(2), formerly

Sec. 829(c)(2), (3), Sept. 23, 1996, 110 Stat. 2613, renumbered

Pub. L. 105-85, div. A, title X, Sec. 1073(c)(7)(B), Nov. 18,

1997, 111 Stat. 1904; Pub. L. 105-85, div. A, title X, Sec.

1073(c)(7)(A), Nov. 18, 1997, 111 Stat. 1904.)

-MISC1-

PRIOR PROVISIONS

A prior section 2502, added Pub. L. 100-456, div. A, title VIII,

Sec. 821(b)(1)(B), Sept. 29, 1988, 102 Stat. 2015, related to

defense industrial base policies, prior to repeal by Pub. L.

102-484, Sec. 4202(a).

Another prior section 2502 was renumbered section 2534 of this

title.

AMENDMENTS

1997 - Subsec. (c). Pub. L. 105-85, Sec. 1073(c)(7)(A), made

technical correction to directory language of Pub. L. 104-201, Sec.

829(c)(2). See 1996 Amendment note below.

1996 - Subsec. (c). Pub. L. 104-201, Sec. 829(c)(2), formerly

Sec. 829(c)(2), (3), as renumbered and amended by Pub. L. 105-85,

substituted ''the responsibility to ensure effective cooperation''

for ''the following responsibilities:'', struck out ''(1) To ensure

the effective cooperation'' before ''among departments'', struck

out par. (2), redesignated subpars. (A), (B), and (C) as pars. (1),

(2), and (3), respectively, and adjusted margins of such pars.

Prior to repeal, par. (2) read as follows: ''To prepare the

periodic assessment and the periodic plan required by sections 2505

and 2506 of this title, respectively.''

Subsec. (c)(1)(B). Pub. L. 104-106, Sec. 1081(b)(1), added

subpar. (B) and struck out former subpar. (B) which read as

follows: ''programs for achieving, during a period of reduction in

defense expenditures, the defense reinvestment, diversification,

and conversion objectives set forth in section 2501(b) of this

title; and''.

Subsec. (c)(2), (3). Pub. L. 104-106, Sec. 1081(b)(2), (3),

redesignated par. (3) as (2) and struck out former par. (2) which

read as follows: ''To provide overall policy guidance to ensure

effective implementation by agencies of the Federal Government of

defense reinvestment and conversion activities during a period of

reduction in defense expenditures.''

1994 - Subsec. (d). Pub. L. 103-337 substituted ''executive'' for

''Executive''.

1993 - Subsec. (d). Pub. L. 103-160 added subsec. (d).

EFFECTIVE DATE OF 1997 AMENDMENT

Section 1073(c) of Pub. L. 105-85 provided that the amendment

made by that section is effective as of Sept. 23, 1996, and as if

included in the National Defense Authorization Act for Fiscal Year

1997, Pub. L. 104-201, as enacted.

-CITE-

10 USC Sec. 2503 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER II - POLICIES AND PLANNING

-HEAD-

Sec. 2503. National defense program for analysis of the technology

and industrial base

-STATUTE-

(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

Acquisition, Technology, and Logistics. In carrying out the

program, the Under Secretary 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:

(1) The assembly of timely and authoritative information.

(2) Initiation of studies and analyses.

(3) Provision of technical support and assistance to -

(A) the Secretary of Defense for the preparation of the

periodic assessments required by section 2505 of this title;

(B) the defense acquisition university structure and its

elements; and

(C) other departments and agencies of the Federal Government

in accordance with guidance established by the Council.

(4) 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.

-SOURCE-

(Added Pub. L. 102-484, div. D, title XLII, Sec. 4213(a), Oct. 23,

1992, 106 Stat. 2665; amended Pub. L. 104-201, div. A, title VIII,

Sec. 829(b), Sept. 23, 1996, 110 Stat. 2612; Pub. L. 107-107, div.

A, title X, Sec. 1048(b)(4), Dec. 28, 2001, 115 Stat. 1225.)

-MISC1-

PRIOR PROVISIONS

A prior section 2503, added Pub. L. 100-456, div. A, title VIII,

Sec. 821(b)(1)(B), Sept. 29, 1988, 102 Stat. 2016; amended Pub. L.

101-189, div. A, title VIII, Sec. 842(a), (b), Nov. 29, 1989, 103

Stat. 1514, 1515; Pub. L. 102-25, title VII, Sec. 701(f)(4), Apr.

6, 1991, 105 Stat. 115; Pub. L. 102-484, div. A, title X, Sec.

1052(32), Oct. 23, 1992, 106 Stat. 2501, established defense

industrial base office, prior to repeal by Pub. L. 102-484, Sec.

4202(a).

AMENDMENTS

2001 - Subsec. (b). Pub. L. 107-107 substituted ''Under Secretary

of Defense for Acquisition, Technology, and Logistics'' for ''Under

Secretary of Defense for Acquisition''.

1996 - Subsec. (a). Pub. L. 104-201, Sec. 829(b)(1), substituted

''The Secretary of Defense'' for ''(1) The Secretary of Defense, in

consultation with the National Defense Technology and Industrial

Base Council,'' and struck out pars. (2) to (4) which read as

follows:

''(2) As determined by the Secretary of Defense, the program

shall be administered by one of the following:

''(A) An existing federally funded research and development

center.

''(B) A consortium of existing federally funded research and

development centers and other nonprofit entities.

''(C) A private sector entity (other than a federally funded

research and development center).

''(D) The National Defense University.

''(3) A contract may be awarded under subparagraph (A), (B), or

(C) of paragraph (2) only through the use of competitive

procedures.

''(4) The Secretary of Defense shall ensure that there is

appropriate coordination between the program and the Critical

Technologies Institute.''

Subsec. (c)(3)(A). Pub. L. 104-201, Sec. 829(b)(2), substituted

''the Secretary of Defense for'' for ''the National Defense

Technology and Industrial Base Council in'' and struck out ''and

the periodic plans required by section 2506 of this title'' after

''section 2505 of this title''.

DEADLINE FOR ESTABLISHING PROGRAM

Section 4213(b) of Pub. L. 102-484 provided that: ''The Secretary

of Defense shall establish the program required by section 2503 of

title 10, United States Code, as added by subsection (a), not later

than six months after the date of the enactment of this Act (Oct.

23, 1992). The Secretary of Defense shall ensure that a contract

solicitation is issued and a contract is awarded in a timely manner

to facilitate the establishment of that program within the period

set forth in the preceding sentence. The preceding sentence shall

not apply if the Secretary determines that the program shall be

administered by the National Defense University.''

-CITE-

10 USC Sec. 2504 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER II - POLICIES AND PLANNING

-HEAD-

Sec. 2504. Annual report to Congress

-STATUTE-

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 year a report which

shall include the following information:

(1) A description of the departmental guidance prepared

pursuant to section 2506 of this title.

(2) A description of the methods and analyses being undertaken

by the Department of Defense alone or in cooperation with other

Federal agencies, to identify and address concerns regarding

technological and industrial capabilities of the national

technology and industrial base.

(3) A description of the assessments prepared pursuant to

section 2505 of this title and other analyses used in developing

the budget submission of the Department of Defense for the next

fiscal year.

(4) Identification of each program designed to sustain specific

essential technological and industrial capabilities and processes

of the national technology and industrial base.

-SOURCE-

(Added Pub. L. 104-201, div. A, title VIII, Sec. 829(e), Sept. 23,

1996, 110 Stat. 2614; amended Pub. L. 106-65, div. A, title X,

Sec. 1067(1), Oct. 5, 1999, 113 Stat. 774.)

-MISC1-

PRIOR PROVISIONS

A prior section 2504, added Pub. L. 102-484, div. D, title XLII,

Sec. 4214(a), Oct. 23, 1992, 106 Stat. 2666, established Center for

Study of Defense Economic Adjustment, prior to repeal by Pub. L.

103-160, div. A, title XIII, Sec. 1312(a)(1), Nov. 30, 1993, 107

Stat. 1786.

Another prior section 2504 was renumbered section 2531 of this

title.

AMENDMENTS

1999 - Pub. L. 106-65 substituted ''and the Committee on Armed

Services'' for ''and the Committee on National Security'' in

introductory provisions.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2506 of this title.

-CITE-

10 USC Sec. 2505 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER II - POLICIES AND PLANNING

-HEAD-

Sec. 2505. National technology and industrial base: periodic

defense capability assessments

-STATUTE-

(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 2501(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 -

(1) describe sectors or capabilities, their underlying

infrastructure and processes;

(2) analyze present and projected financial performance of

industries supporting the sectors or capabilities in the

assessment; and

(3) 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.

(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 -

(1) identify cases that pose an unacceptable risk of foreign

dependency, as determined by the Secretary; and

(2) 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) 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.

-SOURCE-

(Added Pub. L. 102-484, div. D, title XLII, Sec. 4215, Oct. 23,

1992, 106 Stat. 2667; amended Pub. L. 103-35, title II, Sec.

201(g)(7), May 31, 1993, 107 Stat. 100; Pub. L. 104-201, div. A,

title VIII, Sec. 829(c)(1), Sept. 23, 1996, 110 Stat. 2612.)

-MISC1-

PRIOR PROVISIONS

A prior section 2505 was renumbered section 2532 of this title.

AMENDMENTS

1996 - Pub. L. 104-201 reenacted section catchline without change

and amended text generally. Prior to amendment, text consisted of

subsecs. (a) to (d) providing for National Defense Technology and

Industrial Base Council to prepare, at least annually through

fiscal year 1997 and biennially thereafter, a comprehensive

assessment of capability of the national technology and industrial

base to attain national security objectives.

1993 - Pub. L. 103-35 substituted ''capability'' for

''capabilty'' in section catchline.

IMPLEMENTING REGULATIONS CONCERNING NATIONAL TECHNOLOGY AND

INDUSTRIAL BASE PERIODIC ASSESSMENT

Section 4219 of Pub. L. 102-484, as amended by Pub. L. 103-35,

title II, Sec. 202(a)(14), May 31, 1993, 107 Stat. 101, set forth

requirements for the initial regulations prescribed to implement

this section, prior to repeal by Pub. L. 104-201, div. A, title

VIII, Sec. 829(h), Sept. 23, 1996, 110 Stat. 2614.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2198, 2410g, 2500, 2503,

2504 of this title; title 22 section 3142.

-CITE-

10 USC Sec. 2506 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER II - POLICIES AND PLANNING

-HEAD-

Sec. 2506. Department of Defense technology and industrial base

policy guidance

-STATUTE-

(a) Departmental Guidance. - The Secretary of Defense shall

prescribe departmental guidance for the attainment of each of the

national security objectives set forth in section 2501(a) of this

title. Such guidance shall provide for technological and

industrial capability considerations to be integrated into the

budget allocation, weapons acquisition, and logistics support

decision processes.

(b) Report to Congress. - The Secretary of Defense shall report

on the implementation of the departmental guidance in the annual

report to Congress submitted pursuant to section 2504 of this

title.

-SOURCE-

(Added Pub. L. 102-484, div. D, title XLII, Sec. 4216(a), Oct. 23,

1992, 106 Stat. 2668; amended Pub. L. 104-201, div. A, title VIII,

Sec. 829(d), Sept. 23, 1996, 110 Stat. 2613.)

-MISC1-

PRIOR PROVISIONS

A prior section 2506 was renumbered section 2533 of this title.

AMENDMENTS

1996 - Pub. L. 104-201 substituted ''Department of Defense

technology and industrial base policy guidance'' for ''National

technology and industrial base: periodic defense capability plan''

in section catchline and amended text generally. Prior to

amendment, text consisted of subsecs. (a) to (e) providing for the

National Defense Technology and Industrial Base Council to prepare,

at least annually through fiscal year 1997 and biennially

thereafter, a multiyear plan for ensuring that the policies and

programs of the Department of Defense, the Department of Energy,

and other Federal departments and agencies were planned,

coordinated, funded, and implemented in a manner designed to attain

national security objectives.

IMPLEMENTING REGULATIONS CONCERNING NATIONAL TECHNOLOGY AND

INDUSTRIAL BASE PERIODIC PLAN

Section 4220 of Pub. L. 102-484 set forth requirements for the

initial regulations prescribed to implement this section, prior to

repeal by Pub. L. 104-201, div. A, title VIII, Sec. 829(h), Sept.

23, 1996, 110 Stat. 2614.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2372, 2504 of this title;

title 42 section 2123.

-CITE-

10 USC Sec. 2507 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER II - POLICIES AND PLANNING

-HEAD-

Sec. 2507. Data collection authority of President

-STATUTE-

(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 this chapter and the regulations issued under

this chapter.

(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 section (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:

(1) 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.

(2) 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.

-SOURCE-

(Added Pub. L. 102-484, div. D, title XLII, Sec. 4217, Oct. 23,

1992, 106 Stat. 2670; amended Pub. L. 103-160, div. A, title XI,

Sec. 1182(b)(1), Nov. 30, 1993, 107 Stat. 1772.)

-MISC1-

PRIOR PROVISIONS

A prior section 2507 was renumbered section 2534 of this title.

A prior section 2508 was renumbered section 2522 of this title

and subsequently repealed.

A prior section 2509, added Pub. L. 101-510, div. A, title VIII,

Sec. 825(a), Nov. 5, 1990, 104 Stat. 1604; amended Pub. L. 102-484,

div. A, title X, Sec. 1052(34), Oct. 23, 1992, 106 Stat. 2501,

required submission of defense industrial base annual reports,

prior to repeal by Pub. L. 102-484, Sec. 4202(a).

A prior section 2510, added Pub. L. 101-510, div. A, title VIII,

Sec. 826(a)(1), Nov. 5, 1990, 104 Stat. 1605, related to defense

industrial base for textile and apparel products, prior to repeal

by Pub. L. 102-484, Sec. 4202(a).

AMENDMENTS

1993 - Pub. L. 103-160 inserted headings in subsecs. (a) to (f).

-CITE-

10 USC SUBCHAPTER III - PROGRAMS FOR DEVELOPMENT,

APPLICATION, AND SUPPORT OF DUAL-USE

TECHNOLOGIES 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER III - PROGRAMS FOR DEVELOPMENT, APPLICATION, AND SUPPORT

OF DUAL-USE TECHNOLOGIES

.

-HEAD-

SUBCHAPTER III - PROGRAMS FOR DEVELOPMENT, APPLICATION, AND SUPPORT

OF DUAL-USE TECHNOLOGIES

-MISC1-

Sec.

2511. Defense dual-use critical technology program.

(2512, 2513. Repealed.)

2514. Encouragement of technology transfer.

2515. Office of Technology Transition.

(2516. Repealed.)

2517. Office for Foreign Defense Critical Technology Monitoring and

Assessment.

2518. Overseas foreign critical technology monitoring and

assessment financial assistance program.

2519. Federal Defense Laboratory Diversification Program.

(2520. Repealed.)

AMENDMENTS

1996 - Pub. L. 104-106, div. A, title X, Sec. 1081(i)(2), Feb.

10, 1996, 110 Stat. 455, substituted ''program'' for

''partnerships'' in item 2511 and struck out items 2512

''Commercial-military integration partnerships'', 2513 ''Regional

technology alliances assistance program'', 2516 ''Military-Civilian

Integration and Technology Transfer Advisory Board'', and 2520

''Navy Reinvestment Program''.

1994 - Pub. L. 103-337, div. A, title XI, Sec. 1113(c), Oct. 5,

1994, 108 Stat. 2866, added items 2519 and 2520.

-CITE-

10 USC Sec. 2511 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER III - PROGRAMS FOR DEVELOPMENT, APPLICATION, AND SUPPORT

OF DUAL-USE TECHNOLOGIES

-HEAD-

Sec. 2511. Defense dual-use critical technology program

-STATUTE-

(a) Establishment of Program. - The Secretary of Defense shall

conduct a program to further the national security objectives set

forth in section 2501(a) of this title by encouraging and providing

for research, development, and application of dual-use critical

technologies. The Secretary may make grants, enter into contracts,

or enter into cooperative agreements and other transactions

pursuant to section 2371 of this title in furtherance of the

program. The Secretary shall identify projects to be conducted as

part of the program.

(b) Assistance Authorized. - The Secretary of Defense may provide

technical and other assistance to facilitate the achievement of the

purposes of projects conducted under the program. In providing

such assistance, the Secretary shall make available, as appropriate

for the work to be performed, equipment and facilities of

Department of Defense laboratories (including the scientists and

engineers at those laboratories) for purposes of projects selected

by the Secretary.

(c) Financial Commitment of Non-Federal Government Participants.

- (1) The total amount of funds provided by the Federal Government

for a project conducted under the program may not exceed 50 percent

of the total cost of the project. However, the Secretary of

Defense may agree to a project in which the total amount of funds

provided by the Federal Government exceeds 50 percent if the

Secretary determines the project is particularly meritorious, but

the project would not otherwise have sufficient non-Federal funding

or in-kind contributions.

(2) The Secretary may prescribe regulations to provide for

consideration of in-kind contributions by non-Federal Government

participants in a project conducted under the program for the

purpose of calculating the share of the project costs that has been

or is being undertaken by such participants. In such regulations,

the Secretary may authorize a participant that is a small business

concern to use funds received under the Small Business Innovation

Research Program or the Small Business Technology Transfer Program

to help pay the costs of project activities. Any such funds so

used may be considered 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 percentage contribution in the

project from non-Federal sources.

(3) The Secretary shall consider a project proposal submitted by

a small business concern without regard to the ability of the small

business concern to immediately meet its share of the anticipated

project costs. Upon the selection of a project proposal submitted

by a small business concern, the small business concern shall have

a period of not less than 120 days in which to arrange to meet its

financial commitment requirements under the project from sources

other than a person of a foreign country. If the Secretary

determines upon the expiration of that period that the small

business concern will be unable to meet its share of the

anticipated project costs, the Secretary shall revoke the selection

of the project proposal submitted by the small business concern.

(d) Selection Process. - Competitive procedures shall be used in

the conduct of the program.

(e) Selection Criteria. - The criteria for the selection of

projects under the program shall include the following:

(1) The extent to which the proposed project advances and

enhances the national security objectives set forth in section

2501(a) of this title.

(2) The technical excellence of the proposed project.

(3) The qualifications of the personnel proposed to participate

in the research activities of the proposed project.

(4) An assessment of timely private sector investment in

activities to achieve the goals and objectives of the proposed

project other than through the project.

(5) The potential effectiveness of the project in the further

development and application of each technology proposed to be

developed by the project for the national technology and

industrial base.

(6) The extent of the financial commitment of eligible firms to

the proposed project.

(7) The extent to which the project does not unnecessarily

duplicate projects undertaken by other agencies.

(f) Regulations. - The Secretary of Defense shall prescribe

regulations for the purposes of this section.

-SOURCE-

(Added Pub. L. 102-484, div. D, title XLII, Sec. 4221(a), Oct. 23,

1992, 106 Stat. 2677; amended Pub. L. 103-160, div. A, title XIII,

Sec. 1315(a), 1317(c), Nov. 30, 1993, 107 Stat. 1787, 1789; Pub. L.

103-337, div. A, title XI, Sec. 1115(a), Oct. 5, 1994, 108 Stat.

2868; Pub. L. 104-106, div. A, title X, Sec. 1081(c), Feb. 10,

1996, 110 Stat. 452.)

-MISC1-

PRIOR PROVISIONS

A prior section 2511, added Pub. L. 101-510, div. A, title VIII,

Sec. 823(a)(3), Nov. 5, 1990, 104 Stat. 1600; amended Pub. L.

102-190, div. A, title VIII, Sec. 824(b), Dec. 5, 1991, 105 Stat.

1438, defined ''manufacturing technology'', ''manufacturing

extension program'', and ''United States-based small manufacturing

firm'' for purposes of former chapter 149 of this title, prior to

repeal and restatement in section 2491 of this title by Pub. L.

102-484, Sec. 4202(a), 4203(a).

Another prior section 2511 was renumbered section 2540 of this

title and subsequently repealed.

Provisions similar to those in this section were contained in

section 2523 of this title, prior to repeal by Pub. L. 102-484,

Sec. 4202(a).

AMENDMENTS

1996 - Pub. L. 104-106 substituted ''program'' for

''partnerships'' in section catchline and amended text generally.

Prior to amendment, text related to program for establishment of

cooperative arrangements between Department of Defense and eligible

entities.

1994 - Subsec. (c)(3). Pub. L. 103-337 added par. (3).

1993 - Subsec. (c). Pub. L. 103-160, Sec. 1315(a), amended

subsec. (c) generally. Prior to amendment, subsec. (c) read as

follows: ''The Secretary of Defense shall ensure that, to the

maximum extent he determines to be practicable, the amount of the

funds provided by the Federal Government under a partnership does

not exceed the total amount provided by non-Federal Government

participants in that partnership.''

Subsec. (e). Pub. L. 103-160, Sec. 1317(c), struck out '', except

that procedures other than competitive procedures may be used in

any case in which an exception set out in section 2304(c) of this

title applies'' after ''partnerships''.

DUAL-USE SCIENCE AND TECHNOLOGY PROGRAM

Pub. L. 105-85, div. A, title II, Sec. 203, Nov. 18, 1997, 111

Stat. 1655, as amended by Pub. L. 106-65, div. A, title IX, Sec.

911(a)(1), Oct. 5, 1999, 113 Stat. 717, provided that:

''(a) Funding 1998. - Of the amounts authorized to be

appropriated by section 201 (111 Stat. 1655), $75,000,000 is

authorized for dual-use projects.

''(b) Goals. - (1) Subject to paragraph (3), it shall be the

objective of the Secretary of each military department to obligate

for dual-use projects in each fiscal year referred to in paragraph

(2), out of the total amount authorized to be appropriated for such

fiscal year for the applied research programs of the military

department, the percent of such amount that is specified for that

fiscal year in paragraph (2).

''(2) The objectives for fiscal years under paragraph (1) are as

follows:

''(A) For fiscal year 1998, 5 percent.

''(B) For fiscal year 1999, 7 percent.

''(C) For fiscal year 2000, 10 percent.

''(D) For fiscal year 2001, 15 percent.

''(3) The Secretary of Defense may establish for a military

department for a fiscal year an objective different from the

objective set forth in paragraph (2) if the Secretary -

''(A) determines that compelling national security

considerations require the establishment of the different

objective; and

''(B) notifies Congress of the determination and the reasons

for the determination.

''(c) Designation of Official for Dual-Use Programs. - (1) The

Secretary of Defense shall designate a senior official in the

Office of the Secretary of Defense to carry out responsibilities

for dual-use projects under this subsection. The designated

official shall report directly to the Under Secretary of Defense

for Acquisition, Technology, and Logistics.

''(2) The primary responsibilities of the designated official

shall include developing policy and overseeing the establishment

of, and adherence to, procedures for ensuring that dual-use

projects are initiated and administered effectively and that

applicable commercial technologies are integrated into current and

future military systems.

''(3) In carrying out the responsibilities, the designated

official shall ensure that -

''(A) dual-use projects are consistent with the joint

warfighting science and technology plan referred to in section

270 of the National Defense Authorization Act for Fiscal Year

1997 (Public Law 104-201; 10 U.S.C. 2501 note); and

''(B) the dual-use projects of the military departments and

defense agencies of the Department of Defense are coordinated and

avoid unnecessary duplication.

''(d) Financial Commitment of Non-Federal Government

Participants. - The total amount of funds provided by a military

department for a dual-use project entered into by the Secretary of

that department shall not exceed 50 percent of the total cost of

the project. In the case of a dual-use project initiated after the

date of the enactment of this Act (Nov. 18, 1997), the Secretary

may consider in-kind contributions by non-Federal participants only

to the extent such contributions constitute 50 percent or less of

the share of the project costs by such participants.

''(e) Use of Competitive Procedures. - Funds obligated for a

dual-use project may be counted toward meeting an objective under

subsection (a) only if the funds are obligated for a contract,

grant, cooperative agreement, or other transaction that was entered

into through the use of competitive procedures.

''(f) Report. - (1) Not later than March 1 of each of 1998, 1999,

and 2000, the Secretary of Defense shall submit a report to the

congressional defense committees (Committees on Armed Services and

Appropriations of Senate and House of Representatives) on the

progress made by the Department of Defense in meeting the

objectives set forth in subsection (b) during the preceding fiscal

year.

''(2) The report for a fiscal year shall contain, at a minimum,

the following:

''(A) The aggregate value of all contracts, grants, cooperative

agreements, or other transactions entered into during the fiscal

year for which funding is counted toward meeting an objective

under this section, expressed in relationship to the total amount

appropriated for the applied research programs in the Department

of Defense for that fiscal year.

''(B) For each military department, the value of all contracts,

grants, cooperative agreements, or other transactions entered

into during the fiscal year for which funding is counted toward

meeting an objective under this section, expressed in

relationship to the total amount appropriated for the applied

research program of the military department for that fiscal year.

''(C) A summary of the cost-sharing arrangements in dual-use

projects that were initiated during the fiscal year and are

counted toward reaching an objective under this section.

''(D) A description of the regulations, directives, or other

procedures that have been issued by the Secretary of Defense or

the Secretary of a military department to increase the percentage

of the total value of the dual-use projects undertaken to meet or

exceed an objective under this section.

''(E) Any recommended legislation to facilitate achievement of

objectives under this section.

''(g) Commercial Operations and Support Savings Initiative. - (1)

The Secretary of Defense shall establish a Commercial Operations

and Support Savings Initiative (in this subsection referred to as

the 'Initiative') to develop commercial products and processes that

the military departments can incorporate into operational military

systems to reduce costs of operations and support.

''(2) Of the amounts authorized to be appropriated by section

201, $50,000,000 is authorized for the Initiative.

''(3) Projects and participants in the Initiative shall be

selected through the use of competitive procedures.

''(4) The budget submitted to Congress by the President for

fiscal year 1999 and each fiscal year thereafter pursuant to

section 1105(a) of title 31, United States Code, shall set forth

separately the funding request for the Initiative.

''(h) Repeal of Superseded Authority. - (Repealed section 203 of

Pub. L. 104-201, 110 Stat. 2451.)

''(i) Definitions. - In this section:

''(1) The term 'applied research program' means a program of a

military department which is funded under the 6.2 Research,

Development, Test and Evaluation account of that department.

''(2) The term 'dual-use project' means a project under a

program of a military department or a defense agency under which

research or development of a dual-use technology is carried out

and the costs of which are shared by the Department of Defense

and non-Government entities.''

APPLICATION OF 1993 AMENDMENTS TO EXISTING TECHNOLOGY REINVESTMENT

PROJECTS

Section 1315(g) of Pub. L. 103-160 provided that in the case of

projects funded under section 2511, 2512, 2513, 2523, or 2524 of

this title with funds appropriated for a fiscal year beginning

before Oct. 1, 1993, the amendments made by section 1315 of Pub. L.

103-160 would not alter the financial commitment requirements in

effect on Nov. 30, 1993, for the non-Federal Government

participants in the project.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2519 of this title.

-CITE-

10 USC Sec. 2512, 2513 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER III - PROGRAMS FOR DEVELOPMENT, APPLICATION, AND SUPPORT

OF DUAL-USE TECHNOLOGIES

-HEAD-

(Sec. 2512, 2513. Repealed. Pub. L. 104-106, div. A, title X, Sec.

1081(f), Feb. 10, 1996, 110 Stat. 454)

-MISC1-

Section 2512, added Pub. L. 102-484, div. D, title XLII, Sec.

4222(a), Oct. 23, 1992, 106 Stat. 2679; amended Pub. L. 103-160,

div. A, title XIII, Sec. 1315(b), Nov. 30, 1993, 107 Stat. 1787;

Pub. L. 103-337, div. A, title XI, Sec. 1115(b), Oct. 5, 1994, 108

Stat. 2868, related to commercial-military integration

partnerships.

A prior section 2512, added Pub. L. 101-510, div. A, title VIII,

Sec. 823(a)(3), Nov. 5, 1990, 104 Stat. 1600, related to

responsibility of Secretary of Defense to provide management and

planning, prior to repeal by Pub. L. 102-484, Sec. 4202(a).

Section 2513, added Pub. L. 102-190, div. A, title VIII, Sec.

821(a), Dec. 5, 1991, 105 Stat. 1428, Sec. 2524; renumbered Sec.

2513 and amended Pub. L. 102-484, div. D, title XLII, Sec.

4223(a)-(f), Oct. 23, 1992, 106 Stat. 2681; Pub. L. 103-35, title

II, Sec. 201(d)(3), (e)(1), May 31, 1993, 107 Stat. 99; Pub. L.

103-160, div. A, title XI, Sec. 1182(g)(2), title XIII, Sec.

1315(c), 1316, Nov. 30, 1993, 107 Stat. 1774, 1787, 1789; Pub. L.

103-337, div. A, title XI, Sec. 1115(c), Oct. 5, 1994, 108 Stat.

2868, related to regional technology alliances assistance program.

A prior section 2513, added Pub. L. 101-510, div. A, title VIII,

Sec. 823(a)(3), Nov. 5, 1990, 104 Stat. 1601; amended Pub. L.

102-190, div. A, title II, Sec. 203(c), Dec. 5, 1991, 105 Stat.

1314, required annual National Defense Manufacturing Technology

Plan, prior to repeal by Pub. L. 102-484, Sec. 4202(a).

-CITE-

10 USC Sec. 2514 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER III - PROGRAMS FOR DEVELOPMENT, APPLICATION, AND SUPPORT

OF DUAL-USE TECHNOLOGIES

-HEAD-

Sec. 2514. Encouragement of technology transfer

-STATUTE-

(a) Encouragement of Transfer Required. - The Secretary of

Defense shall encourage, to the extent consistent with national

security objectives, the transfer of technology between

laboratories and research centers of the Department of Defense and

other Federal agencies, State and local governments, colleges and

universities, and private persons in cases that are likely to

result in accomplishing the objectives set forth in section 2501(a)

of this title.

(b) Examination and Implementation of Methods To Encourage

Transfer. - The Secretary shall examine and implement methods, in

addition to the encouragement referred to in subsection (a) and the

program described in subsection (c), that are consistent with

national security objectives and will enable Department of Defense

personnel to promote technology transfer.

(c) Program To Encourage Diversification of Defense Laboratories.

- (1) The Secretary of Defense shall establish and implement a

program to be known as the Federal Defense Laboratory

Diversification Program (hereinafter in this subsection referred to

as the ''Program''). The purpose of the Program shall be to

encourage greater cooperation in research and production activities

carried out by defense laboratories and by private industry of the

United States in order to enhance and improve the products of such

research and production activities.

(2) Under the Program, the defense laboratories, in coordination

with the Office of Technology Transfer in the Office of the

Secretary of Defense, shall carry out cooperative activities with

private industry in order to promote (by the use or exchange of

patents, licenses, cooperative research and development agreements

and other cooperative agreements, and the use of symposia,

meetings, and other similar mechanisms) the transfer of defense or

dual-use technologies from the defense laboratories to private

industry, and the development and application of such technologies

by the defense laboratories and private industry, for the purpose

of the commercial utilization of such technologies by private

industry.

(3) The Secretary of Defense shall develop and annually update a

plan for each defense laboratory that participates in the Program

under which plan the laboratory shall carry out cooperative

activities with private industry to promote the transfers described

in subsection (b).

(4) In this subsection, the term ''defense laboratory'' means any

laboratory owned or operated by the Department of Defense that

carries out research in fiscal year 1993 in an amount in excess of

$50,000,000.

-SOURCE-

(Added Pub. L. 102-484, div. D, title XLII, Sec. 4224(a), Oct. 23,

1992, 106 Stat. 2682; amended Pub. L. 104-201, div. A, title VIII,

Sec. 829(f), Sept. 23, 1996, 110 Stat. 2614.)

-MISC1-

PRIOR PROVISIONS

A prior section 2514, added Pub. L. 101-510, div. A, title VIII,

Sec. 823(a)(3), Nov. 5, 1990, 104 Stat. 1601, directed Secretary of

Defense to enhance research relating to manufacturing technology,

prior to repeal by Pub. L. 102-484, Sec. 4202(a).

Provisions similar to those in subsecs. (a) and (b) of this

section were contained in section 2363 of this title prior to

repeal by Pub. L. 102-484, Sec. 4224(c), 4271(a)(2).

AMENDMENTS

1996 - Subsec. (c)(5). Pub. L. 104-201 struck out par. (5) which

read as follows: ''The Secretary shall coordinate the Program with

the National Defense Technology and Industrial Base Council.''

NATIONAL ACTION PLAN ON ADVANCED SUPERCONDUCTIVITY RESEARCH AND

DEVELOPMENT

Superconductivity research and development activities by

Secretary of Defense and by Defense Advanced Research Projects

Agency, see section 5207 of Title 15, Commerce and Trade.

TECHNOLOGY TRANSFER TO PRIVATE SECTOR

Pub. L. 100-180, div. A, title II, Sec. 218(c), Dec. 4, 1987,

101 Stat. 1053, as amended by Pub. L. 103-160, div. A, title IX,

Sec. 904(f), Nov. 30, 1993, 107 Stat. 1729; Pub. L. 106-65, div.

A, title IX, Sec. 911(a)(1), Oct. 5, 1999, 113 Stat. 717, provided

that:

''(1) The Secretary of Defense, acting through the Under

Secretary of Defense for Acquisition, Technology, and Logistics,

shall take appropriate action to ensure that high-temperature

superconductivity technology resulting from the research activities

of the Department of Defense is transferred to the private sector.

Such transfer shall be made in accordance with section 10(e) of the

Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C.

3710(e)), other applicable provisions of law, and Executive Order

Number 12591, dated April 10, 1987 (set out as a note under 15

U.S.C. 3710).

''(2) The Secretary of Energy, in consultation with the Under

Secretary of Defense for Acquisition, Technology, and Logistics,

shall ensure that the national laboratories of the Department of

Energy participate, to the maximum appropriate extent, in the

transfer to the private sector of technology developed under the

Department of Defense superconductivity program in the national

laboratories.''

-CITE-

10 USC Sec. 2515 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER III - PROGRAMS FOR DEVELOPMENT, APPLICATION, AND SUPPORT

OF DUAL-USE TECHNOLOGIES

-HEAD-

Sec. 2515. Office of Technology Transition

-STATUTE-

(a) Establishment. - The Secretary of Defense shall establish

within the Office of the Secretary of Defense an Office of

Technology Transition.

(b) Purpose. - The purpose of the office shall be to ensure, to

the maximum extent practicable, that technology developed for

national security purposes is integrated into the private sector of

the United States in order to enhance national technology and

industrial base, reinvestment, and conversion activities consistent

with the objectives set forth in section 2501(a) of this title.

(c) Duties. - The head of the office shall ensure that the office

-

(1) monitors all research and development activities that are

carried out by or for the military departments and Defense

Agencies;

(2) identifies all such research and development activities

that use technologies, or result in technological advancements,

having potential nondefense commercial applications;

(3) serves as a clearinghouse for, coordinates, and otherwise

actively facilitates the transition of such technologies and

technological advancements from the Department of Defense to the

private sector;

(4) conducts its activities in consultation and coordination

with the Department of Energy and the Department of Commerce; and

(5) provides private firms with assistance to resolve problems

associated with security clearances, proprietary rights, and

other legal considerations involved in such a transition of

technology.

(d) Annual Report. - (1) The Secretary of Defense shall submit to

the congressional committees specified in paragraph (2) an annual

report on the activities of the Office. The report shall be

submitted each year at the same time that the budget is submitted

to Congress by the President pursuant to section 1105 of title 31.

The report shall contain a discussion of the accomplishments of the

Office during the fiscal year preceding the fiscal year in which

the report is submitted.

(2) The committees referred to in paragraph (1) are -

(A) the Committee on Armed Services and the Committee on

Appropriations of the Senate; and

(B) the Committee on Armed Services and the Committee on

Appropriations of the House of Representatives.

-SOURCE-

(Added Pub. L. 102-484, div. D, title XLII, Sec. 4225(a), Oct. 23,

1992, 106 Stat. 2683; amended Pub. L. 104-106, div. A, title XV,

Sec. 1502(a)(22), Feb. 10, 1996, 110 Stat. 505; Pub. L. 106-65,

div. A, title X, Sec. 1067(1), Oct. 5, 1999, 113 Stat. 774.)

-MISC1-

PRIOR PROVISIONS

A prior section 2515, added Pub. L. 101-510, div. A, title VIII,

Sec. 823(a)(3), Nov. 5, 1990, 104 Stat. 1602, related to

computer-integrated manufacturing technology, prior to repeal by

Pub. L. 102-484, Sec. 4202(a).

AMENDMENTS

1999 - Subsec. (d)(2)(B). Pub. L. 106-65 substituted ''Committee

on Armed Services'' for ''Committee on National Security''.

1996 - Subsec. (d). Pub. L. 104-106 substituted ''Annual Report''

for ''Reporting Requirement'' in heading, designated existing

provisions as par. (1), substituted ''The Secretary of Defense

shall submit to the congressional committees specified in paragraph

(2) an annual report on the activities of the Office. The report

shall be submitted each year at the same time'' for ''The Secretary

of Defense shall submit to the Committees on Armed Services and on

Appropriations of the Senate and the House of Representatives an

annual report on the activities of the Office at the same time'',

and added par. (2).

SCHEDULE FOR ESTABLISHMENT OF OFFICE OF TECHNOLOGY TRANSITION

Section 4225(b) of Pub. L. 102-484 provided that: ''The Office of

Technology Transition shall commence operations within 120 days

after the date of the enactment of this Act (Oct. 23, 1992).''

SUBMISSION OF ANNUAL REPORT

Section 4225(c)(2) of Pub. L. 102-484 provided that:

''Notwithstanding section 2515(d) of title 10, United States Code

(as added by subsection (a)) -

''(A) the first report under that section shall be submitted

not later than one year after the date of the enactment of this

Act (Oct. 23, 1992); and

''(B) no additional report is necessary under that section in

the fiscal year in which such first report is submitted.''

-CITE-

10 USC Sec. 2516 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER III - PROGRAMS FOR DEVELOPMENT, APPLICATION, AND SUPPORT

OF DUAL-USE TECHNOLOGIES

-HEAD-

(Sec. 2516. Repealed. Pub. L. 104-106, div. A, title X, Sec.

1081(g), Feb. 10, 1996, 110 Stat. 455)

-MISC1-

Section, added Pub. L. 102-484, div. D, title XLII, Sec.

4226(a), Oct. 23, 1992, 106 Stat. 2684; amended Pub. L. 103-35,

title II, Sec. 201(g)(8), May 31, 1993, 107 Stat. 100, related to

Military-Civilian Integration and Technology Transfer Advisory

Board.

A prior section 2516, added Pub. L. 101-510, div. A, title VIII,

Sec. 823(a)(3), Nov. 5, 1990, 104 Stat. 1602, related to

enhancement of concurrent engineering practices in design and

development of weapon systems, prior to repeal by Pub. L. 102-484,

Sec. 4202(a).

-CITE-

10 USC Sec. 2517 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER III - PROGRAMS FOR DEVELOPMENT, APPLICATION, AND SUPPORT

OF DUAL-USE TECHNOLOGIES

-HEAD-

Sec. 2517. Office for Foreign Defense Critical Technology

Monitoring and Assessment

-STATUTE-

(a) In General. - The Secretary of Defense shall establish within

the Office of the Director of Defense Research and Engineering an

office known as the ''Office for Foreign Defense Critical

Technology Monitoring and Assessment'' (hereinafter in this section

referred to as the ''Office'').

(b) Relationship to Department of Commerce. - The head of the

Office shall consult closely with appropriate officials of the

Department of Commerce in order -

(1) to minimize the duplication of any effort of the Department

of Commerce by the Department of Defense regarding the monitoring

of foreign activities related to defense critical technologies

that have potential commercial uses; and

(2) to ensure that the Office is effectively utilized to

disseminate information to users of such information within the

Federal Government.

(c) Responsibilities. - The Office shall have the following

responsibilities:

(1) To maintain within the Department of Defense a central

library for the compilation and appropriate dissemination of

unclassified and classified information and assessments regarding

significant foreign activities in research, development, and

applications of defense critical technologies.

(2) To establish and maintain -

(A) a widely accessible unclassified data base of information

and assessments regarding foreign science and technology

activities that involve defense critical technologies,

including, especially, activities in Europe and in Pacific Rim

countries; and

(B) a classified data base of information and assessments

regarding such activities.

(3) To perform liaison activities among the military

departments, Defense Agencies, and other appropriate elements of

the Department of Defense, with appropriate agencies and offices

of the Department of Commerce and the Department of State, and

with other departments and agencies of the Federal Government in

order to ensure that significant activities in research,

development, and applications of defense critical technologies

are identified, monitored, and assessed by an appropriate

department or agency of the Federal Government.

(4) To ensure the maximum practicable public availability of

information and assessments contained in the unclassified data

bases established pursuant to paragraph (2) -

(A) by limiting, to the maximum practicable extent,

restrictive classification of such information and assessments;

and

(B) by disseminating to the National Technical Information

Service of the Department of Commerce information and

assessments regarding defense critical technologies having

potential commercial uses.

(5) To disseminate through the National Technical Information

Service of the Department of Commerce unclassified information

and assessments regarding defense critical technologies having

potential commercial uses so that such information and

assessments may be further disseminated within the Federal

Government and to the private sector.

-SOURCE-

(Added Pub. L. 102-190, div. A, title VIII, Sec. 821(a), Dec. 5,

1991, 105 Stat. 1430, Sec. 2525; renumbered Sec. 2517 and amended

Pub. L. 102-484, div. D, title XLII, Sec. 4227, Oct. 23, 1992, 106

Stat. 2685.)

-MISC1-

PRIOR PROVISIONS

A prior section 2517 was renumbered section 2523 of this title

and subsequently repealed.

AMENDMENTS

1992 - Pub. L. 102-484 renumbered section 2525 of this title as

this section and inserted ''Critical'' after ''Foreign Defense'' in

subsec. (a).

-CITE-

10 USC Sec. 2518 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER III - PROGRAMS FOR DEVELOPMENT, APPLICATION, AND SUPPORT

OF DUAL-USE TECHNOLOGIES

-HEAD-

Sec. 2518. Overseas foreign critical technology monitoring and

assessment financial assistance program

-STATUTE-

(a) Establishment and Purpose of Program. - The Secretary of

Defense may establish a foreign critical technology monitoring and

assessment program. Under the program, the Secretary may enter

into cooperative arrangements with one or more eligible

not-for-profit organizations in order to provide financial

assistance for the establishment of foreign critical technology

monitoring and assessment offices in Europe, Pacific Rim countries,

and such other countries as the Secretary considers appropriate.

(b) Eligible Organizations. - Any not-for-profit industrial or

professional organization that has economic and scientific

interests in research, development, and applications of dual-use

critical technologies is eligible to enter into a cooperative

arrangement referred to in subsection (a).

-SOURCE-

(Added Pub. L. 102-190, div. A, title VIII, Sec. 821(a), Dec. 5,

1991, 105 Stat. 1431, Sec. 2526; renumbered Sec. 2518, Pub. L.

102-484, div. D, title XLII, Sec. 4228, Oct. 23, 1992, 106 Stat.

2685.)

-MISC1-

PRIOR PROVISIONS

A prior section 2518 was renumbered section 2522 of this title

and subsequently repealed.

AMENDMENTS

1992 - Pub. L. 102-484 renumbered section 2526 of this title as

this section.

-CITE-

10 USC Sec. 2519 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER III - PROGRAMS FOR DEVELOPMENT, APPLICATION, AND SUPPORT

OF DUAL-USE TECHNOLOGIES

-HEAD-

Sec. 2519. Federal Defense Laboratory Diversification Program

-STATUTE-

(a) Establishment of Program. - The Secretary of Defense shall

conduct a program in accordance with this section for the purpose

of promoting cooperation between Department of Defense laboratories

and industry on research and development of dual-use technologies

in order to further the national security objectives set forth in

section 2501(a) of this title.

(b) Partnerships. - (1) The Secretary shall provide for the

establishment under the program of cooperative arrangements

(hereinafter in this section referred to as ''partnerships'')

between a Department of Defense laboratory and eligible firms and

nonprofit research corporations. A partnership may also include

one or more additional Federal laboratories, institutions of higher

education, agencies of State and local governments, and other

entities, as determined appropriate by the Secretary.

(2) For purposes of this section, a federally funded research and

development center shall be considered a Department of Defense

laboratory if the center is sponsored by the Department of Defense.

(c) Assistance Authorized. - (1) The Secretary may make grants,

enter into contracts, enter into cooperative agreements and other

transactions pursuant to section 2371 of this title, and enter into

cooperative research and development agreements under section 12 of

the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C.

3710a) in order to establish partnerships.

(2) Subject to subsection (d), the Secretary may provide a

partnership with technical and other assistance in order to

facilitate the achievement of the purpose of this section.

(d) Financial Commitment of Non-Federal Government Participants.

- (1) The Secretary shall ensure that the non-Federal Government

participants in a partnership make a substantial contribution to

the total cost of partnership activities. The amount of the

contribution shall be commensurate with the risk undertaken by such

participants and the potential benefits of the activities for such

participants.

(2) The regulations prescribed pursuant to section 2511(c)(2) of

this title shall apply to in-kind contributions made by non-Federal

Government participants in a partnership.

(e) Selection Process. - Competitive procedures shall be used in

the establishment of partnerships.

(f) Selection Criteria. - The criteria for the selection of a

proposed partnership for establishment under this section shall

include the criteria set forth in section 2511(e) of this title.

(g) Regulations. - The Secretary shall prescribe regulations for

the purposes of this section.

-SOURCE-

(Added Pub. L. 103-337, div. A, title XI, Sec. 1113(a), Oct. 5,

1994, 108 Stat. 2864; amended Pub. L. 104-106, div. A, title X,

Sec. 1081(d), Feb. 10, 1996, 110 Stat. 454.)

-MISC1-

AMENDMENTS

1996 - Subsec. (b). Pub. L. 104-106, Sec. 1081(d)(1), struck out

''referred to in section 2511(b) of this title'' after

''corporations''.

Subsec. (f). Pub. L. 104-106, Sec. 1081(d)(2), substituted

''section 2511(e)'' for ''section 2511(f)''.

-CITE-

10 USC Sec. 2520 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER III - PROGRAMS FOR DEVELOPMENT, APPLICATION, AND SUPPORT

OF DUAL-USE TECHNOLOGIES

-HEAD-

(Sec. 2520. Repealed. Pub. L. 104-106, div. A, title X, Sec.

1081(f), Feb. 10, 1996, 110 Stat. 454)

-MISC1-

Section, added Pub. L. 103-337, div. A, title XI, Sec. 1113(b),

Oct. 5, 1994, 108 Stat. 2865, related to Navy Reinvestment Program.

-CITE-

10 USC SUBCHAPTER IV - MANUFACTURING TECHNOLOGY 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER IV - MANUFACTURING TECHNOLOGY

.

-HEAD-

SUBCHAPTER IV - MANUFACTURING TECHNOLOGY

-MISC1-

Sec.

2521. Manufacturing Technology Program.

2522. Armament retooling and manufacturing.

(2523, 2524. Repealed.)

(2525. Renumbered.)

AMENDMENTS

2000 - Pub. L. 106-398, Sec. 1 ((div. A), title III, Sec.

344(c)(2)), Oct. 30, 2000, 114 Stat. 1654, 1654A-71, redesignated

item 2525 as 2521 and added item 2522.

1998 - Pub. L. 105-261, div. A, title X, Sec. 1069(a)(5), Oct.

17, 1998, 112 Stat. 2136, struck out ''AND DUAL-USE ASSISTANCE

EXTENSION PROGRAMS'' after ''TECHNOLOGY'' in subchapter heading.

1996 - Pub. L. 104-106, div. A, title II, Sec. 276(b), title X,

Sec. 1081(i)(3), Feb. 10, 1996, 110 Stat. 242, 455, struck out

items 2521 ''National Defense Manufacturing Technology Program'',

2522 ''Defense Advanced Manufacturing Technology Partnerships'',

2523 ''Manufacturing extension programs'', and 2524 ''Defense

dual-use assistance extension program'' and substituted

''Manufacturing Technology Program'' for ''Manufacturing Science

and Technology Program'' in item 2525.

1994 - Pub. L. 103-337, div. A, title II, Sec. 256(a)(2), Oct.

5, 1994, 108 Stat. 2704, substituted ''Manufacturing Science and''

for ''Industrial Preparedness Manufacturing'' in item 2525.

1993 - Pub. L. 103-160, div. A, title VIII, Sec. 801(a)(2), Nov.

30, 1993, 107 Stat. 1701, added item 2525.

-CITE-

10 USC Sec. 2521 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER IV - MANUFACTURING TECHNOLOGY

-HEAD-

Sec. 2521. Manufacturing Technology Program

-STATUTE-

(a) Establishment. - The Secretary of Defense shall establish a

Manufacturing Technology Program to further the national security

objectives of section 2501(a) of this title through the development

and application of advanced manufacturing technologies and

processes that will reduce the acquisition and supportability costs

of defense weapon systems and reduce manufacturing and repair cycle

times across the life cycles of such systems. The Secretary shall

use the joint planning process of the directors of the Department

of Defense laboratories in establishing the program. The Under

Secretary of Defense for Acquisition, Technology, and Logistics

shall administer the program.

(b) Purpose of Program. - The Secretary of Defense shall use the

program -

(1) to provide centralized guidance and direction (including

goals, milestones, and priorities) to the military departments

and the Defense Agencies on all matters relating to manufacturing

technology;

(2) to direct the development and implementation of Department

of Defense plans, programs, projects, activities, and policies

that promote the development and application of advanced

technologies to manufacturing processes, tools, and equipment;

(3) to improve the manufacturing quality, productivity,

technology, and practices of businesses and workers providing

goods and services to the Department of Defense;

(4) to focus Department of Defense support for the development

and application of advanced manufacturing technologies and

processes for use to meet manufacturing requirements that are

essential to the national defense, as well as for repair and

remanufacturing in support of the operations of systems commands,

depots, air logistics centers, and shipyards;

(5) to disseminate information concerning improved

manufacturing improvement concepts, including information on such

matters as best manufacturing practices, product data exchange

specifications, computer-aided acquisition and logistics support,

and rapid acquisition of manufactured parts;

(6) to sustain and enhance the skills and capabilities of the

manufacturing work force;

(7) to promote high-performance work systems (with development

and dissemination of production technologies that build upon the

skills and capabilities of the work force), high levels of worker

education and training; and

(8) to ensure appropriate coordination between the

manufacturing technology programs and industrial preparedness

programs of the Department of Defense and similar programs

undertaken by other departments and agencies of the Federal

Government or by the private sector.

(c) Execution. - (1) The Secretary may carry out projects under

the program through the Secretaries of the military departments and

the heads of the Defense Agencies.

(2) In the establishment and review of requirements for an

advanced manufacturing technology or process, the Secretary shall

ensure the participation of those prospective technology users that

are expected to be the users of that technology or process.

(3) The Secretary shall ensure that each project under the

program for the development of an advanced manufacturing technology

or process includes an implementation plan for the transition of

that technology or process to the prospective technology users that

will be the users of that technology or process.

(4) In the periodic review of a project under the program, the

Secretary shall ensure participation by those prospective

technology users that are the expected users for the technology or

process being developed under the project.

(5) In order to promote increased dissemination and use of

manufacturing technology throughout the national defense technology

and industrial base, the Secretary shall seek, to the maximum

extent practicable, the participation of manufacturers of

manufacturing equipment in the projects under the program.

(6) In this subsection, the term ''prospective technology users''

means the following officials and elements of the Department of

Defense:

(A) Program and project managers for defense weapon systems.

(B) Systems commands.

(C) Depots.

(D) Air logistics centers.

(E) Shipyards.

(d) Competition and Cost Sharing. - (1) In accordance with the

policy stated in section 2374 of this title, competitive procedures

shall be used for awarding all grants and entering into all

contracts, cooperative agreements, and other transactions under the

program.

(2) Under the competitive procedures used, the factors to be

considered in the evaluation of each proposed grant, contract,

cooperative agreement, or other transaction for a project under the

program shall include the extent to which that proposed transaction

provides for the proposed recipient to share in the cost of the

project. For a project for which the Government receives an offer

from only one offeror, the contracting officer shall negotiate the

ratio of contract recipient cost to Government cost that represents

the best value to the Government.

(e) Five-Year Plan. - (1) The Secretary of Defense shall prepare

and maintain a five-year plan for the program.

(2) The plan shall establish the following:

(A) The overall manufacturing technology objectives,

milestones, priorities, and investment strategy for the program.

(B) The specific objectives of, and funding for the program by,

each military department and each Defense Agency participating in

the program.

(C) Plans for the implementation of the advanced manufacturing

technologies and processes being developed under the program.

(3) The plan shall be updated biennially and shall be included in

the budget justification documents submitted in support of the

budget of the Department of Defense for each even-numbered fiscal

year (as included in the budget of the President submitted to

Congress under section 1105 of title 31).

-SOURCE-

(Added Pub. L. 103-160, div. A, title VIII, Sec. 801(a)(1), Nov.

30, 1993, 107 Stat. 1700, Sec. 2525; amended Pub. L. 103-337, div.

A, title II, Sec. 256(a)(1), Oct. 5, 1994, 108 Stat. 2704; Pub. L.

104-106, div. A, title II, Sec. 276(a), title X, Sec. 1081(e),

title XV, Sec. 1503(a)(28), Feb. 10, 1996, 110 Stat. 241, 454, 512;

Pub. L. 105-85, div. A, title II, Sec. 211(a), (b), Nov. 18, 1997,

111 Stat. 1657; Pub. L. 105-261, div. A, title II, Sec. 213, Oct.

17, 1998, 112 Stat. 1947; Pub. L. 106-65, div. A, title II, Sec.

216, Oct. 5, 1999, 113 Stat. 543; renumbered Sec. 2521, Pub. L.

106-398, Sec. 1 ((div. A), title III, Sec. 344(c)(1)(A)), Oct. 30,

2000, 114 Stat. 1654, 1654A-71; Pub. L. 107-107, div. A, title X,

Sec. 1048(b)(2), Dec. 28, 2001, 115 Stat. 1225; Pub. L. 107-314,

div. A, title II, Sec. 213, Dec. 2, 2002, 116 Stat. 2481.)

-MISC1-

PRIOR PROVISIONS

A prior section 2521, added Pub. L. 102-484, div. D, title XLII,

Sec. 4231(a), Oct. 23, 1992, 106 Stat. 2686, related to National

Defense Manufacturing Technology Program, prior to repeal by Pub.

L. 104-106, div. A, title X, Sec. 1081(f), Feb. 10, 1996, 110

Stat. 454.

Another prior section 2521, added Pub. L. 102-190, div. A, title

VIII, Sec. 821(a), Dec. 5, 1991, 105 Stat. 1426, defined terms for

purposes of former chapter 150 of this title, prior to repeal and

restatement in section 2491 (now 2500) of this title by Pub. L.

102-484, Sec. 4202(a), 4203(a).

Another prior section 2521 was renumbered section 2540 of this

title and subsequently repealed.

AMENDMENTS

2002 - Subsec. (e)(1). Pub. L. 107-314, Sec. 213(a), substituted

''prepare and maintain a five-year plan for the program.'' for

''prepare a five-year plan for the program which establishes -

''(A) the overall manufacturing technology goals, milestones,

priorities, and investment strategy for the program; and

''(B) for each of the five fiscal years covered by the plan,

the objectives of, and funding for the program by, each military

department and each Defense Agency participating in the

program.''

Subsec. (e)(2). Pub. L. 107-314, Sec. 213(a), substituted

''establish'' for ''include'' in introductory provisions and

amended subpars. (A) and (B) generally. Prior to amendment, text

read as follows:

''(A) An assessment of the effectiveness of the program,

including a description of all completed projects and status of

implementation.

''(B) An assessment of the extent to which the costs of projects

are being shared by the following:

''(i) Commercial enterprises in the private sector.

''(ii) Department of Defense program offices, including weapon

system program offices.

''(iii) Departments and agencies of the Federal Government

outside the Department of Defense.

''(iv) Institutions of higher education.

''(v) Other institutions not operated for profit.

''(vi) Other sources.''

Subsec. (e)(3). Pub. L. 107-314, Sec. 213(b), substituted

''biennially'' for ''annually'' and ''for each even-numbered fiscal

year'' for ''for a fiscal year''.

2001 - Subsec. (a). Pub. L. 107-107 substituted ''Under Secretary

of Defense for Acquisition, Technology, and Logistics'' for ''Under

Secretary of Defense for Acquisition and Technology''.

2000 - Pub. L. 106-398 renumbered section 2525 of this title as

this section.

1999 - Subsec. (a). Pub. L. 106-65, Sec. 216(a), in first

sentence, inserted ''through the development and application of

advanced manufacturing technologies and processes that will reduce

the acquisition and supportability costs of defense weapon systems

and reduce manufacturing and repair cycle times across the life

cycles of such systems'' after ''title''.

Subsec. (b)(4). Pub. L. 106-65, Sec. 216(b), amended par. (4)

generally. Prior to amendment, par. (4) read as follows: ''to

promote dual-use manufacturing processes;''.

Subsec. (c)(2) to (6). Pub. L. 106-65, Sec. 216(c), added pars.

(2) to (4), redesignated former par. (2) as (5), and added par.

(6).

Subsec. (d). Pub. L. 106-65, Sec. 216(d), struck out ''(A)''

before ''In accordance with'' in par. (1), redesignated par. (1)(B)

as par. (2), substituted ''Under the competitive procedures used,

the factors to be considered in the evaluation of each proposed

grant, contract, cooperative agreement, or other transaction for a

project under the program shall include the extent to which that

proposed transaction provides for the proposed recipient to share

in the cost of the project.'' for ''For each grant awarded and each

contract, cooperative agreement, or other transaction entered into

on a cost-share basis under the program, the ratio of contract

recipient cost to Government cost shall be determined by

competitive procedures.'', and struck out former pars. (2) and (3)

which required grants, contracts, cooperative agreements, and other

transactions to be awarded or entered into on a cost-sharing basis

unless the Secretary of Defense made certain determinations and

specified as a goal that at least 25 percent of the funds available

for the program for each fiscal year be used for grants, contracts,

cooperative agreements, and other transactions on a cost-share

basis under which the ratio of recipient cost to Government cost

was two to one.

Subsec. (e)(2)(A). Pub. L. 106-65, Sec. 216(e)(1), inserted '',

including a description of all completed projects and status of

implementation'' before period at end.

Subsec. (e)(2)(C). Pub. L. 106-65, Sec. 216(e)(2), added subpar.

(C).

1998 - Subsec. (d)(1). Pub. L. 105-261, Sec. 213(a), designated

existing provisions as subpar. (A), substituted ''In accordance

with the policy stated in section 2374 of this title, competitive''

for ''Competitive'', and added subpar. (B).

Subsec. (d)(2). Pub. L. 105-261, Sec. 213(b), designated existing

provisions as subpar. (A), redesignated former subpars. (A) to (C)

as cls. (i) to (iii), respectively, and added subpars. (B) and (C).

Subsec. (d)(3). Pub. L. 105-261, Sec. 213(c)(2), substituted ''As

a goal, at least'' for ''At least'' and ''should'' for ''shall''

and inserted at end ''The Secretary of Defense, in coordination

with the Secretaries of the military departments and upon

recommendation of the Under Secretary of Defense for Acquisition

and Technology, shall establish annual objectives to meet such

goal.''

Subsec. (d)(4). Pub. L. 105-261, Sec. 213(c)(1), struck out par.

(4) which read as follows: ''If the requirement of paragraph (3)

cannot be met by July 15 of a fiscal year, the Under Secretary of

Defense for Acquisition and Technology may waive the requirement

and obligate the balance of the funds available for the program for

that fiscal year on a cost-share basis under which the ratio of

recipient cost to Government cost is less than two to one. Before

implementing any such waiver, the Under Secretary shall submit to

the Committee on Armed Services of the Senate and the Committee on

National Security of the House of Representatives the reasons for

the waiver.''

Subsec. (e)(2). Pub. L. 105-261, Sec. 213(d), amended par. (2)

generally. Prior to amendment, par. (2) read as follows: ''The

plan shall include an assessment of the effectiveness of the

program.''

1997 - Subsec. (c)(2). Pub. L. 105-85, Sec. 211(a), amended par.

(2) generally. Prior to amendment, par. (2) read as follows: ''The

Secretary shall seek, to the extent practicable, the participation

of manufacturers of manufacturing equipment in the projects under

the program.''

Subsec. (e). Pub. L. 105-85, Sec. 211(b), added subsec. (e).

1996 - Pub. L. 104-106, Sec. 276(a)(1), amended section

catchline, as amended by Pub. L. 104-106, Sec. 1503(a)(28), 1506,

by striking out ''Science and'' after ''Manufacturing''.

Pub. L. 104-106, Sec. 1503(a)(28), substituted ''Science and

Technology Program'' for ''science and technology program'' in

section catchline.

Subsec. (a). Pub. L. 104-106, Sec. 276(a)(2), struck out

''Science and'' after ''Manufacturing'' and inserted after first

sentence ''The Secretary shall use the joint planning process of

the directors of the Department of Defense laboratories in

establishing the program.''

Subsec. (b). Pub. L. 104-106, Sec. 1081(e), amended subsec. (b)

generally. Prior to amendment, subsec. (b) read as follows:

''Purpose. - The purpose of the program is to enhance the

capability of industry to meet the manufacturing needs of the

Department of Defense.''

Subsec. (c). Pub. L. 104-106, Sec. 276(a)(3), designated existing

provisions as par. (1) and added par. (2).

Subsec. (d)(2)(C). Pub. L. 104-106, Sec. 276(a)(4)(A), added

subpar. (C).

Subsec. (d)(3), (4). Pub. L. 104-106, Sec. 276(a)(4)(B), added

pars. (3) and (4).

1994 - Pub. L. 103-337 substituted ''Manufacturing science and

technology program'' for ''Industrial Preparedness Manufacturing

Technology Program'' as section catchline and amended text

generally. Prior to amendment, text read as follows: ''The

Secretary of Defense shall establish an Industrial Preparedness

Manufacturing Technology program to enhance the capability of

industry to meet the manufacturing needs of the Department of

Defense.''

-CITE-

10 USC Sec. 2522 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER IV - MANUFACTURING TECHNOLOGY

-HEAD-

Sec. 2522. Armament retooling and manufacturing

-STATUTE-

The Secretary of the Army is authorized by chapter 434 of this

title to carry out programs for the support of armaments retooling

and manufacturing in the national defense industrial and technology

base.

-SOURCE-

(Added Pub. L. 106-398, Sec. 1 ((div. A), title III, Sec.

344(c)(1)(B)), Oct. 30, 2000, 114 Stat. 1654, 1654A-71.)

-MISC1-

PRIOR PROVISIONS

A prior section 2522, added Pub. L. 102-190, div. A, title VIII,

Sec. 823(a)(1), Dec. 5, 1991, 105 Stat. 1435, Sec. 2518; renumbered

Sec. 2522 and amended Pub. L. 102-484, div. D, title XLII, Sec.

4232(a), (b), Oct. 23, 1992, 106 Stat. 2687, related to defense

advanced manufacturing technology partnerships, prior to repeal by

Pub. L. 104-106, div. A, title X, Sec. 1081(f), Feb. 10, 1996, 110

Stat. 454.

Another prior section 2522, added Pub. L. 101-189, div. A, title

VIII, Sec. 841(b)(1), Nov. 29, 1989, 103 Stat. 1512, Sec. 2508;

amended Pub. L. 101-510, div. A, title VIII, Sec. 821(a), Nov. 5,

1990, 104 Stat. 1597; Pub. L. 102-25, title VII, Sec. 701(g)(3),

Apr. 6, 1991, 105 Stat. 115; renumbered Sec. 2522, Pub. L. 102-190,

div. A, title VIII, Sec. 821(b)(1), Dec. 5, 1991, 105 Stat. 1431,

required an annual defense critical technologies plan, prior to

repeal by Pub. L. 102-484, Sec. 4202(a).

-CITE-

10 USC Sec. 2523, 2524 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER IV - MANUFACTURING TECHNOLOGY

-HEAD-

(Sec. 2523, 2524. Repealed. Pub. L. 104-106, div. A, title X, Sec.

1081(f), Feb. 10, 1996, 110 Stat. 454)

-MISC1-

Section 2523, added Pub. L. 101-510, div. A, title VIII, Sec.

823(a)(3), Nov. 5, 1990, 104 Stat. 1602, Sec. 2517; amended Pub. L.

102-190, div. A, title VIII, Sec. 824(a), Dec. 5, 1991, 105 Stat.

1436; renumbered Sec. 2523 and amended Pub. L. 102-484, div. D,

title XLII, Sec. 4233(a), (b), Oct. 23, 1992, 106 Stat. 2687; Pub.

L. 103-160, div. A, title IX, Sec. 904(d)(1), title XI, Sec.

1182(b)(2), title XIII, Sec. 1315(d), Nov. 30, 1993, 107 Stat.

1728, 1772, 1787, related to manufacturing extension programs.

A prior section 2523, added Pub. L. 102-190, div. A, title VIII,

Sec. 821(a), Dec. 5, 1991, 105 Stat. 1427, related to defense

dual-use critical technology partnerships, prior to repeal and

restatement in section 2511 of this title by Pub. L. 102-484, Sec.

4202(a), 4221(a).

Section 2524, added Pub. L. 102-484, div. D, title XLII, Sec.

4234(a), Oct. 23, 1992, 106 Stat. 2687; amended Pub. L. 103-35,

title II, Sec. 201(g)(9), May 31, 1993, 107 Stat. 100; Pub. L.

103-160, div. A, title XIII, Sec. 1314, 1315(e), Nov. 30, 1993,

107 Stat. 1786, 1788; Pub. L. 103-337, div. A, title X, Sec.

1070(b)(10), title XI, Sec. 1114(b), (c), 1115(d), Oct. 5, 1994,

108 Stat. 2857, 2867-2869; Pub. L. 104-106, div. A, title XV, Sec.

1503(a)(27), Feb. 10, 1996, 110 Stat. 512, related to defense

dual-use assistance extension program.

A prior section 2524 was renumbered section 2513 of this title.

-CITE-

10 USC Sec. 2525 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER IV - MANUFACTURING TECHNOLOGY

-HEAD-

(Sec. 2525. Renumbered Sec. 2521)

-MISC1-

PRIOR PROVISIONS

A prior section 2525 was renumbered section 2517 of this title.

A prior section 2526 was renumbered section 2518 of this title.

-CITE-

10 USC SUBCHAPTER V - MISCELLANEOUS TECHNOLOGY BASE

POLICIES AND PROGRAMS 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER V - MISCELLANEOUS TECHNOLOGY BASE POLICIES AND PROGRAMS

.

-HEAD-

SUBCHAPTER V - MISCELLANEOUS TECHNOLOGY BASE POLICIES AND PROGRAMS

-MISC1-

Sec.

2531. Defense memoranda of understanding and related agreements.

2532. Offset policy; notification.

2533. Determinations of public interest under the Buy American Act.

2533a. Requirement to buy certain articles from American sources;

exceptions.

2534. Miscellaneous limitations on the procurement of goods other

than United States goods.

2535. Defense Industrial Reserve.

2536. Award of certain contracts to entities controlled by a

foreign government: prohibition.

2537. Improved national defense control of technology diversions

overseas.

2538. Industrial mobilization: orders; priorities; possession of

manufacturing plants; violations.

2539. Industrial mobilization: plants; lists.

2539a. Industrial mobilization: Board on Mobilization of Industries

Essential for Military Preparedness.

2539b. Availability of samples, drawings, information, equipment,

materials, and certain services.

AMENDMENTS

2001 - Pub. L. 107-107, div. A, title VIII, Sec. 832(a)(2), Dec.

28, 2001, 115 Stat. 1190, added item 2533a.

1994 - Pub. L. 103-337, div. A, title VIII, Sec. 812(b)(2),

title X, Sec. 1070(a)(13)(B), Oct. 5, 1994, 108 Stat. 2816, 2856,

substituted ''Determinations of public interest under the Buy

American Act'' for ''Limitation on use of funds: procurement of

goods which are other than American goods'' in item 2533 and

renumbered items 2540 and 2541 as 2539a and 2539b, respectively.

1993 - Pub. L. 103-160, div. A, title VIII, Sec. 828(c)(5),

842(c)(2), Nov. 30, 1993, 107 Stat. 1714, 1719, substituted ''Award

of certain contracts to entities controlled by a foreign

government: prohibition'' for ''Prohibition on award of certain

Department of Defense and Department of Energy contracts to

companies owned by an entity controlled by a foreign government''

in item 2536 and added items 2538 to 2541.

1992 - Pub. L. 102-484, div. A, title VIII, Sec. 836(a)(2),

838(b), Oct. 23, 1992, 106 Stat. 2463, 2466, added items 2536 and

2537.

-CITE-

10 USC Sec. 2531 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER V - MISCELLANEOUS TECHNOLOGY BASE POLICIES AND PROGRAMS

-HEAD-

Sec. 2531. Defense memoranda of understanding and related

agreements

-STATUTE-

(a) Considerations in Making and Implementing MOUs and Related

Agreements. - In the negotiation, renegotiation, and implementation

of any existing or proposed memorandum of understanding, or any

existing or proposed agreement related to a memorandum of

understanding, between the Secretary of Defense, acting on behalf

of the United States, and one or more foreign countries (or any

instrumentality of a foreign country) relating to research,

development, or production of defense equipment, or to the

reciprocal procurement of defense items, the Secretary of Defense

shall -

(1) consider the effects of such existing or proposed

memorandum of understanding or related agreement on the defense

technology and industrial base of the United States; and

(2) regularly solicit and consider comments and recommendations

from the Secretary of Commerce with respect to the commercial

implications of such memorandum of understanding or related

agreement and the potential effects of such memorandum of

understanding or related agreement on the international

competitive position of United States industry.

(b) Inter-Agency Review of Effects on United States Industry. -

Whenever the Secretary of Commerce has reason to believe that an

existing or proposed memorandum of understanding or related

agreement has, or threatens to have, a significant adverse effect

on the international competitive position of United States

industry, the Secretary may request an inter-agency review of the

memorandum of understanding or related agreement. If, as a result

of the review, the Secretary determines that the commercial

interests of the United States are not being served or would not be

served by adhering to the terms of such existing memorandum or

related agreement or agreeing to such proposed memorandum or

related agreement, as the case may be, the Secretary shall

recommend to the President the renegotiation of the existing

memorandum or related agreement or any modification to the proposed

memorandum of understanding or related agreement that he considers

necessary to ensure an appropriate balance of interests.

(c) Limitation on Entering into MOUs and Related Agreements. - A

memorandum of understanding or related agreement referred to in

subsection (a) may not be entered into or implemented if the

President, taking into consideration the results of the

inter-agency review, determines that such memorandum of

understanding or related agreement has or is likely to have a

significant adverse effect on United States industry that outweighs

the benefits of entering into or implementing such memorandum or

agreement.

-SOURCE-

(Added Pub. L. 100-456, div. A, title VIII, Sec. 824, Sept. 29,

1988, 102 Stat. 2019, Sec. 2504; amended Pub. L. 101-189, div. A,

title VIII, Sec. 815(a), Nov. 29, 1989, 103 Stat. 1500; Pub. L.

101-510, div. A, title XIV, Sec. 1453, Nov. 5, 1990, 104 Stat.

1694; renumbered Sec. 2531 and amended Pub. L. 102-484, div. D,

title XLII, Sec. 4202(a), 4271(c), Oct. 23, 1992, 106 Stat. 2659,

2696.)

-MISC1-

AMENDMENTS

1992 - Pub. L. 102-484, Sec. 4202(a), renumbered section 2504 of

this title as this section.

Subsec. (a)(1). Pub. L. 102-484, Sec. 4271(c), substituted

''defense technology and industrial base'' for ''defense industrial

base''.

1990 - Subsec. (a). Pub. L. 101-510 inserted ''or to the

reciprocal procurement of defense items,'' after ''defense

equipment,'' in introductory provisions.

1989 - Pub. L. 101-189 inserted ''and related agreements'' after

''understanding'' in section catchline and amended text generally.

Prior to amendment, text read as follows: ''In the negotiation and

renegotiation of each memorandum of understanding between the

Secretary of Defense, acting on behalf of the United States, and

one or more foreign countries (or any instrumentality of a foreign

country) relating to research, development, or production of

defense equipment, the Secretary of Defense shall -

''(1) consider the effect of such proposed memorandum of

understanding on the defense industrial base of the United

States; and

''(2) regularly solicit and consider information or

recommendations from the Secretary of Commerce with respect to

the effect on the United States industrial base of such

memorandum of understanding.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2534 of this title.

-CITE-

10 USC Sec. 2532 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER V - MISCELLANEOUS TECHNOLOGY BASE POLICIES AND PROGRAMS

-HEAD-

Sec. 2532. Offset policy; notification

-STATUTE-

(a) Establishment of Offset Policy. - The President shall

establish, consistent with the requirements of this section, a

comprehensive policy with respect to contractual offset

arrangements in connection with the purchase of defense equipment

or supplies which addresses the following:

(1) Transfer of technology in connection with offset

arrangements.

(2) Application of offset arrangements, including cases in

which United States funds are used to finance the purchase by a

foreign government.

(3) Effects of offset arrangements on specific subsectors of

the industrial base of the United States and for preventing or

ameliorating any serious adverse effects on such subsectors.

(b) Technology Transfer. - (1) No official of the United States

may enter into a memorandum of understanding or other agreement

with a foreign government that would require the transfer of United

States defense technology to a foreign country or a foreign firm in

connection with a contract that is subject to an offset arrangement

if the implementation of such memorandum or agreement would

significantly and adversely affect the defense industrial base of

the United States and would result in a substantial financial loss

to a United States firm.

(2) Paragraph (1) shall not apply in the case of a memorandum of

understanding or agreement described in paragraph (1) if the

Secretary of Defense, in consultation with the Secretary of

Commerce and the Secretary of State, determines that a transfer of

United States defense technology pursuant to such understanding or

agreement will result in strengthening the national security of the

United States and so certifies to Congress.

(3) If a United States firm is required under the terms of a

memorandum of understanding, or other agreement entered into by the

United States with a foreign country, to transfer defense

technology to a foreign country, the United States firm may protest

the determination to the Secretary of Defense on the grounds that

the transfer of such technology would adversely affect the defense

industrial base of the United States and would result in

substantial financial loss to the protesting firm. The Secretary

of Defense, in consultation with the Secretary of Commerce and the

Secretary of State, shall make the final determination of the

validity of the protesting firm's claim.

(c) Notification Regarding Offsets. - If at any time a United

States firm enters into a contract for the sale of a weapon system

or defense-related item to a foreign country or foreign firm and

such contract is subject to an offset arrangement exceeding

$50,000,000 in value, such firm shall notify the Secretary of

Defense of the proposed sale. Notification shall be made under

this subsection in accordance with regulations prescribed by the

Secretary of Defense in consultation with the Secretary of

Commerce.

(d) Definitions. - In this section:

(1) The term ''United States firm'' means a business entity

that performs substantially all of its manufacturing, production,

and research and development activities in the United States.

(2) The term ''foreign firm'' means a business entity other

than a United States firm.

-SOURCE-

(Added Pub. L. 100-456, div. A, title VIII, Sec. 825(b), Sept. 29,

1988, 102 Stat. 2020, Sec. 2505; renumbered Sec. 2532, Pub. L.

102-484, div. D, title XLII, Sec. 4202(a), Oct. 23, 1992, 106

Stat. 2659.)

-MISC1-

AMENDMENTS

1992 - Pub. L. 102-484 renumbered section 2505 of this title as

this section.

CONTRACTUAL OFFSET ARRANGEMENTS; CONGRESSIONAL STATEMENT OF

FINDINGS

Section 825(a) of Pub. L. 100-456 provided that: ''Congress makes

the following findings:

''(1) Many contracts entered into by United States firms for

the supply of weapon systems or defense-related items to foreign

countries and foreign firms are subject to contractual

arrangements under which United States firms must agree -

''(A) to have a specified percentage of work under, or

monetary amount of, the contract performed by one or more

foreign firms;

''(B) to purchase a specified amount or quantity of unrelated

goods or services from domestic sources of such foreign

countries; or

''(C) to invest a specified amount in domestic businesses of

such foreign countries.

Such contractual arrangements, known as 'offsets', are a

component of international trade and could have an impact on

United States defense industry opportunities in domestic and

foreign markets.

''(2) Some United States contractors and subcontractors may be

adversely affected by such contractual arrangements.

''(3) Many contracts which provide for or are subject to offset

arrangements require, in connection with such arrangements, the

transfer of United States technology to foreign firms.

''(4) The use of such transferred technology by foreign firms

in conjunction with foreign trade practices permitted under the

trade policies of the countries of such firms can give foreign

firms a competitive advantage against United States firms in

world markets for products using such technology.

''(5) A purchase of defense equipment pursuant to an offset

arrangement may increase the cost of the defense equipment to the

purchasing country and may reduce the amount of defense equipment

that a country may purchase.

''(6) The exporting of defense equipment produced in the United

States is important to maintain the defense industrial base of

the United States, lower the unit cost of such equipment to the

Department of Defense, and encourage the standardized utilization

of United States equipment by the allies of the United States.''

NEGOTIATIONS WITH COUNTRIES REQUIRING OFFSET ARRANGEMENTS

Section 825(c) of Pub. L. 100-456, as amended by Pub. L. 101-189,

div. A, title VIII, Sec. 816, Nov. 29, 1989, 103 Stat. 1501,

provided that:

''(1) The President shall enter into negotiations with foreign

countries that have a policy of requiring an offset arrangement in

connection with the purchase of defense equipment or supplies from

the United States. The negotiations should be conducted with a view

to achieving an agreement with the countries concerned that would

limit the adverse effects that such arrangements have on the

defense industrial base of each such country. Every effort shall

be made to achieve such agreements within two years after September

29, 1988.

''(2) In the negotiation or renegotiation of any memorandum of

understanding between the United States and one or more foreign

countries relating to the reciprocal procurement of defense

equipment and supplies or research and development, the President

shall make every effort to achieve an agreement with the country or

countries concerned that would limit the adverse effects that

offset arrangements have on the defense industrial base of the

United States.''

(For delegation of functions of President under section 825(c) of

Pub. L. 100-456 to Secretary of Defense and United States Trade

Representative, see section 5-201 of Ex. Ord. No. 12661, 54 F.R.

779, set out as a note under section 2901 of Title 19, Customs

Duties.)

REPORT TO CONGRESS ON OFFSET ARRANGEMENTS REQUIRED BY FOREIGN

COUNTRIES AND FIRMS; DISCUSSION OF POLICY OPTIONS

Section 825(d) of Pub. L. 100-456 provided that:

''(1) Not later than November 15, 1988, the President shall

submit to Congress a comprehensive report on contractual offset

arrangements required of United States firms for the supply of

weapon systems or defense-related items to foreign countries or

foreign firms. Such report shall include, at a minimum, the

following:

''(A) An analysis of the amount and type of contractual offsets

required of United States firms by the governments of foreign

countries or by foreign firms.

''(B) An assessment of the benefits for and costs to United

States manufacturers of defense products at all tiers that result

from requirements of foreign governments for contractual offset

arrangements in the case of products procured from United States

firms.

''(C) An assessment of the benefits for and the costs to United

States manufacturers of defense products at all tiers that would

result from restriction of the ability of foreign governments or

foreign firms to require contractual offsets in the case of

defense products procured from United States firms.

''(D) An assessment of the benefits and costs of a United

States policy that requires reciprocal offsets in the procurement

of defense products from those countries whose governments have a

policy of requiring contractual offsets in the case of defense

products procured from United States firms.

''(E) An assessment of the impact that elimination of

contractual offset requirements in international sales of defense

products would have on the national security of the United

States.

''(F) Recommendations for a national policy with respect to

contractual offset arrangements.

''(G) A preliminary discussion of the actions referred to in

paragraph (2).

''(2) Not later than March 15, 1990, the President shall transmit

to Congress a report containing a discussion of appropriate actions

to be taken by the United States with respect to purchases from

United States firms by a foreign country (or a firm of that

country) when that country or firm requires an offset arrangement

in connection with the purchase of defense equipment or supplies in

favor of such country. The report shall include a discussion of

the following possible actions:

''(A) A requirement for an offset in favor of the United States

or United States firms in any case in which the Department of

Defense or any other department or agency of the United States

purchases goods from such foreign country or a firm of such

country.

''(B) A demand for offset credits from such foreign country to

be used, to the extent practicable, to meet offset obligations of

United States firms to such foreign country or to a firm of such

country.

''(C) A reduction in assistance furnished such foreign country

by the United States.

''(D) A requirement for alternative equivalent advantages in

the case of any such foreign country or a firm of such country if

the United States does not purchase a sufficient volume of goods

from such country or firm for a requirement described in

subparagraph (A) to be effective.

''(3) The President shall report to Congress at least once each

year, for a period of 4 years, on the progress of the negotiations

referred to in subsection (c) (set out above). The first such

report shall be submitted not later than one year after the date of

the enactment of this Act (Sept. 29, 1988).

''(4) In this subsection, the terms 'United States firm' and

'foreign firm' have the same meanings as are provided in section

2505(d) (now 2532(d)) of title 10, United States Code, as added by

subsection (b).''

(For delegation of functions of President under section 825(d) of

Pub. L. 100-456 to Director of Office of Management and Budget, see

section 5-202 of Ex. Ord. No. 12661, 54 F.R. 779, set out as a note

under section 2901 of Title 19, Customs Duties.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2534 of this title.

-CITE-

10 USC Sec. 2533 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER V - MISCELLANEOUS TECHNOLOGY BASE POLICIES AND PROGRAMS

-HEAD-

Sec. 2533. Determinations of public interest under the Buy American

Act

-STATUTE-

(a) In determining under section 2 of the Buy American Act (41

U.S.C. 10a) whether application of such Act is inconsistent with

the public interest, the Secretary of Defense shall consider the

following:

(1) The bids or proposals of small business firms in the United

States which have offered to furnish American goods.

(2) The bids or proposals of all other firms in the United

States which have offered to furnish American goods.

(3) The United States balance of payments.

(4) The cost of shipping goods which are other than American

goods.

(5) Any duty, tariff, or surcharge which may enter into the

cost of using goods which are other than American goods.

(6) A need to ensure that the Department of Defense has access

to advanced, state-of-the-art commercial technology.

(7) The need to protect the national technology and industrial

base, to preserve and enhance the national technology employment

base, and to provide for a defense mobilization base.

(8) A need to ensure that application of different rules of

origin for United States end items and foreign end items does not

result in an award to a firm other than a firm providing a

product produced in the United States.

(9) Any need -

(A) to maintain the same source of supply for spare and

replacement parts for an end item that qualifies as an American

good; or

(B) to maintain the same source of supply for spare and

replacement parts in order not to impair integration of the

military and commercial industrial base.

(10) The national security interests of the United States.

(b) In this section, the term ''goods which are other than

American goods'' means -

(1) an end product that is not mined, produced, or manufactured

in the United States; or

(2) an end product that is manufactured in the United States

but which includes components mined, produced, or manufactured

outside the United States the aggregate cost of which exceeds the

aggregate cost of the components of such end product that are

mined, produced, or manufactured in the United States.

-SOURCE-

(Added Pub. L. 100-370, Sec. 3(a)(1), July 19, 1988, 102 Stat. 855,

Sec. 2501; renumbered Sec. 2506, Pub. L. 100-456, div. A, title

VIII, Sec. 821(b)(1)(A), Sept. 29, 1988, 102 Stat. 2014; renumbered

Sec. 2533, Pub. L. 102-484, div. D, title XLII, Sec. 4202(a), Oct.

23, 1992, 106 Stat. 2659; amended Pub. L. 103-337, div. A, title

VIII, Sec. 812(a), (b)(1), Oct. 5, 1994, 108 Stat. 2815, 2816; Pub.

L. 104-106, div. D, title XLIII, Sec. 4321(b)(20), Feb. 10, 1996,

110 Stat. 673; Pub. L. 105-85, div. A, title X, Sec. 1073(a)(54),

Nov. 18, 1997, 111 Stat. 1903.)

-MISC1-

HISTORICAL AND REVISION NOTES

Section is based on Pub. L. 93-365, title VII, Sec. 707, Aug. 5,

1974, 88 Stat. 406.

-REFTEXT-

REFERENCES IN TEXT

The Buy American Act, referred to in subsec. (a), is title III of

act Mar. 3, 1933, ch. 212, 47 Stat. 1520, as amended, which is

classified generally to sections 10a, 10b, and 10c of Title 41,

Public Contracts. For complete classification of this Act to the

Code, see Short Title note set out under section 10a of Title 41

and Tables.

-MISC2-

AMENDMENTS

1997 - Subsec. (a). Pub. L. 105-85 substituted ''(41 U.S.C.

10a)'' for ''(41 U.S.C. 10a))''.

1996 - Subsec. (a). Pub. L. 104-106 substituted ''the Buy

American Act (41 U.S.C. 10a)) whether application of such Act'' for

''title III of the Act of March 3, 1993 (41 U.S.C. 10a), popularly

known as the 'Buy American Act', whether application of title III

of such Act''.

1994 - Pub. L. 103-337, Sec. 812(b)(1), substituted

''Determinations of public interest under the Buy American Act''

for ''Limitation on use of funds: procurement of goods which are

other than American goods'' as section catchline.

Subsec. (a). Pub. L. 103-337, Sec. 812(a)(1), added subsec. (a)

and struck out former subsec. (a) which read as follows: ''Funds

appropriated to the Department of Defense may not be obligated

under a contract for procurement of goods which are other than

American goods (as defined in subsection (c)) unless adequate

consideration is given to the following:

''(1) The bids or proposals of firms located in labor surplus

areas in the United States (as designated by the Department of

Labor) which have offered to furnish American goods.

''(2) The bids or proposals of small business firms in the

United States which have offered to furnish American goods.

''(3) The bids or proposals of all other firms in the United

States which have offered to furnish American goods.

''(4) The United States balance of payments.

''(5) The cost of shipping goods which are other than American

goods.

''(6) Any duty, tariff, or surcharge which may enter into the

cost of using goods which are other than American goods.''

Subsecs. (b), (c). Pub. L. 103-337, Sec. 812(a), redesignated

subsec. (c) as (b) and struck out former subsec. (b) which read as

follows: ''Consideration of the matters referred to in paragraphs

(1) through (6) of subsection (a) shall be given under regulations

of the Secretary of Defense and subject to the determinations and

exceptions contained in title III of the Act of March 3, 1933 (41

U.S.C. 10a, 10b), popularly known as the 'Buy American Act'.''

1992 - Pub. L. 102-484 renumbered section 2506 of this title as

this section.

EFFECTIVE DATE OF 1996 AMENDMENT

For effective date and applicability of amendment by Pub. L.

104-106, see section 4401 of Pub. L. 104-106, set out as a note

under section 251 of Title 41, Public Contracts.

-CITE-

10 USC Sec. 2533a 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER V - MISCELLANEOUS TECHNOLOGY BASE POLICIES AND PROGRAMS

-HEAD-

Sec. 2533a. Requirement to buy certain articles from American

sources; exceptions

-STATUTE-

(a) Requirement. - Except as provided in subsections (c) through

(h), funds appropriated or otherwise available to the Department of

Defense may not be used for the procurement of an item described in

subsection (b) if the item is not grown, reprocessed, reused, or

produced in the United States.

(b) Covered Items. - An item referred to in subsection (a) is any

of the following:

(1) An article or item of -

(A) food;

(B) clothing;

(C) tents, tarpaulins, or covers;

(D) cotton and other natural fiber products, woven silk or

woven silk blends, spun silk yarn for cartridge cloth,

synthetic fabric or coated synthetic fabric (including all

textile fibers and yarns that are for use in such fabrics),

canvas products, or wool (whether in the form of fiber or yarn

or contained in fabrics, materials, or manufactured articles);

or

(E) any item of individual equipment manufactured from or

containing such fibers, yarns, fabrics, or materials.

(2) Specialty metals, including stainless steel flatware.

(3) Hand or measuring tools.

(c) Availability Exception. - Subsection (a) does not apply to

the extent that the Secretary of Defense or the Secretary of the

military department concerned determines that satisfactory quality

and sufficient quantity of any such article or item described in

subsection (b)(1) or specialty metals (including stainless steel

flatware) grown, reprocessed, reused, or produced in the United

States cannot be procured as and when needed at United States

market prices.

(d) Exception for Certain Procurements Outside the United States.

- Subsection (a) does not apply to the following:

(1) Procurements outside the United States in support of combat

operations.

(2) Procurements by vessels in foreign waters.

(3) Emergency procurements or procurements of perishable foods

by an establishment located outside the United States for the

personnel attached to such establishment.

(e) Exception for Specialty Metals and Chemical Warfare

Protective Clothing. - Subsection (a) does not preclude the

procurement of specialty metals or chemical warfare protective

clothing produced outside the United States if -

(1) such procurement is necessary -

(A) to comply with agreements with foreign governments

requiring the United States to purchase supplies from foreign

sources for the purposes of offsetting sales made by the United

States Government or United States firms under approved

programs serving defense requirements; or

(B) in furtherance of agreements with foreign governments in

which both such governments agree to remove barriers to

purchases of supplies produced in the other country or services

performed by sources of the other country; and

(2) any such agreement with a foreign government complies,

where applicable, with the requirements of section 36 of the Arms

Export Control Act (22 U.S.C. 2776) and with section 2457 of this

title.

(f) Exception for Certain Foods. - Subsection (a) does not

preclude the procurement of foods manufactured or processed in the

United States.

(g) Exception for Commissaries, Exchanges, and Other

Nonappropriated Fund Instrumentalities. - Subsection (a) does not

apply to items purchased for resale purposes in commissaries,

exchanges, or nonappropriated fund instrumentalities operated by

the Department of Defense.

(h) Exception for Small Purchases. - Subsection (a) does not

apply to purchases for amounts not greater than the simplified

acquisition threshold referred to in section 2304(g) of this title.

(i) Applicability to Contracts and Subcontracts for Procurement

of Commercial Items. - This section is applicable to contracts and

subcontracts for the procurement of commercial items

notwithstanding section 34 of the Office of Federal Procurement

Policy Act (41 U.S.C. 430).

(j) Geographic Coverage. - In this section, the term ''United

States'' includes the possessions of the United States.

-SOURCE-

(Added Pub. L. 107-107, div. A, title VIII, Sec. 832(a)(1), Dec.

28, 2001, 115 Stat. 1189.)

-CITE-

10 USC Sec. 2534 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER V - MISCELLANEOUS TECHNOLOGY BASE POLICIES AND PROGRAMS

-HEAD-

Sec. 2534. Miscellaneous limitations on the procurement of goods

other than United States goods

-STATUTE-

(a) Limitation on Certain Procurements. - The Secretary of

Defense may procure any of the following items only if the

manufacturer of the item satisfies the requirements of subsection

(b):

(1) Buses. - Multipassenger motor vehicles (buses).

(2) Chemical weapons antidote. - Chemical weapons antidote

contained in automatic injectors (and components for such

injectors).

(3) Components for naval vessels. - (A) The following

components:

(i) Air circuit breakers.

(ii) Welded shipboard anchor and mooring chain with a

diameter of four inches or less.

(iii) Vessel propellers with a diameter of six feet or more.

(B) The following components of vessels, to the extent they are

unique to marine applications: gyrocompasses, electronic

navigation chart systems, steering controls, pumps, propulsion

and machinery control systems, and totally enclosed lifeboats.

(4) Valves and machine tools. - Items in the following

categories:

(A) Powered and non-powered valves in Federal Supply Classes

4810 and 4820 used in piping for naval surface ships and

submarines.

(B) Machine tools in the Federal Supply Classes for

metal-working machinery numbered 3405, 3408, 3410 through 3419,

3426, 3433, 3438, 3441 through 3443, 3445, 3446, 3448, 3449,

3460, and 3461.

(5) Ball bearings and roller bearings. - Ball bearings and

roller bearings, in accordance with subpart 225.71 of part 225 of

the Defense Federal Acquisition Regulation Supplement, as in

effect on October 23, 1992.

(b) Manufacturer in the National Technology and Industrial Base.

-

(1) General requirement. - A manufacturer meets the

requirements of this subsection if the manufacturer is part of

the national technology and industrial base.

(2) Manufacturers of chemical weapons antidote. - In the case

of a procurement of chemical weapons antidote referred to in

subsection (a)(2), a manufacturer meets the requirements of this

subsection only if the manufacturer -

(A) meets the requirement set forth in paragraph (1);

(B) is an existing producer under the industrial preparedness

program at the time the contract is awarded;

(C) has received all required regulatory approvals; and

(D) when the contract for the procurement is awarded, has in

existence in the national technology and industrial base the

plant, equipment, and personnel necessary to perform the

contract.

(3) Manufacturer of vessel propellers. - In the case of a

procurement of vessel propellers referred to in subsection

(a)(3)(A)(iii), the manufacturer of the propellers meets the

requirements of this subsection only if -

(A) the manufacturer meets the requirements set forth in

paragraph (1); and

(B) all castings incorporated into such propellers are poured

and finished in the United States.

(c) Applicability to Certain Items. -

(1) Components for naval vessels. - Subsection (a) does not

apply to a procurement of spare or repair parts needed to support

components for naval vessels produced or manufactured outside the

United States.

(2) Valves and machine tools. - (A) Contracts to which

subsection (a) applies include the following contracts for the

procurement of items described in paragraph (4) of such

subsection:

(i) A contract for procurement of such an item for use in

property under the control of the Department of Defense,

including any Government-owned, contractor-operated facility.

(ii) A contract that is entered into by a contractor on

behalf of the Department of Defense for the purpose of

providing such an item to another contractor as

Government-furnished equipment.

(B) In any case in which a contract for items described in

subsection (a)(4) includes the procurement of more than one

Federal Supply Class of machine tools or machine tools and

accessories, each supply class shall be evaluated separately for

purposes of determining whether the limitation in subsection (a)

applies.

(C) Subsection (a)(4) and this paragraph shall cease to be

effective on October 1, 1996.

(3) Ball bearings and roller bearings. - Subsection (a)(5) and

this paragraph shall cease to be effective on October 1, 2005.

(4) Vessel propellers. - Subsection (a)(3)(A)(iii) and this

paragraph shall cease to be effective on February 10, 1998.

(d) Waiver Authority. - The Secretary of Defense may waive the

limitation in subsection (a) with respect to the procurement of an

item listed in that subsection if the Secretary determines that any

of the following apply:

(1) Application of the limitation would cause unreasonable

costs or delays to be incurred.

(2) United States producers of the item would not be

jeopardized by competition from a foreign country, and that

country does not discriminate against defense items produced in

the United States to a greater degree than the United States

discriminates against defense items produced in that country.

(3) Application of the limitation would impede cooperative

programs entered into between the Department of Defense and a

foreign country, or would impede the reciprocal procurement of

defense items under a memorandum of understanding providing for

reciprocal procurement of defense items that is entered into

under section 2531 of this title, and that country does not

discriminate against defense items produced in the United States

to a greater degree than the United States discriminates against

defense items produced in that country.

(4) Satisfactory quality items manufactured by an entity that

is part of the national technology and industrial base (as

defined in section 2500(1) of this title) are not available.

(5) Application of the limitation would result in the existence

of only one source for the item that is an entity that is part of

the national technology and industrial base (as defined in

section 2500(1) of this title).

(6) The procurement is for an amount less than the simplified

acquisition threshold and simplified purchase procedures are

being used.

(7) Application of the limitation is not in the national

security interests of the United States.

(8) Application of the limitation would adversely affect a

United States company.

(e) Sonobuoys. -

(1) Limitation. - The Secretary of Defense may not procure a

sonobuoy manufactured in a foreign country if United States firms

that manufacture sonobuoys are not permitted to compete on an

equal basis with foreign manufacturing firms for the sale of

sonobuoys in that foreign country.

(2) Waiver authority. - The Secretary may waive the limitation

in paragraph (1) with respect to a particular procurement of

sonobuoys if the Secretary determines that such procurement is in

the national security interests of the United States.

(3) Definition. - In this subsection, the term ''United States

firm'' has the meaning given such term in section 2532(d)(1) of

this title.

(f) Principle of Construction With Future Laws. - A provision of

law may not be construed as modifying or superseding the provisions

of this section, or as requiring funds to be limited, or made

available, by the Secretary of Defense to a particular domestic

source by contract, unless that provision of law -

(1) specifically refers to this section;

(2) specifically states that such provision of law modifies or

supersedes the provisions of this section; and

(3) specifically identifies the particular domestic source

involved and states that the contract to be awarded pursuant to

such provision of law is being awarded in contravention of this

section.

(g) Inapplicability to Contracts under Simplified Acquisition

Threshold. - (1) This section does not apply to a contract or

subcontract for an amount that does not exceed the simplified

acquisition threshold.

(2) Paragraph (1) does not apply to contracts for items described

in subsection (a)(5) (relating to ball bearings and roller

bearings), notwithstanding section 33 of the Office of Federal

Procurement Policy Act (41 U.S.C. 429).

(h) Implementation of Naval Vessel Component Limitation. - In

implementing subsection (a)(3)(B), the Secretary of Defense -

(1) may not use contract clauses or certifications; and

(2) shall use management and oversight techniques that achieve

the objective of the subsection without imposing a significant

management burden on the Government or the contractor involved.

(i) Implementation of Certain Waiver Authority. - (1) The

Secretary of Defense may exercise the waiver authority described in

paragraph (2) only if the waiver is made for a particular item

listed in subsection (a) and for a particular foreign country.

(2) This subsection applies to the waiver authority provided by

subsection (d) on the basis of the applicability of paragraph (2)

or (3) of that subsection.

(3) The waiver authority described in paragraph (2) may not be

delegated below the Under Secretary of Defense for Acquisition,

Technology, and Logistics.

(4) At least 15 days before the effective date of any waiver made

under the waiver authority described in paragraph (2), the

Secretary shall publish in the Federal Register and submit to the

congressional defense committees a notice of the determination to

exercise the waiver authority.

(5) Any waiver made by the Secretary under the waiver authority

described in paragraph (2) shall be in effect for a period not

greater than one year, as determined by the Secretary.

(j) Inapplicability to Certain Contracts To Purchase Ball

Bearings or Roller Bearings. - (1) This section does not apply with

respect to a contract or subcontract to purchase items described in

subsection (a)(5) (relating to ball bearings and roller bearings)

for which -

(A) the amount of the purchase does not exceed $2,500;

(B) the precision level of the ball or roller bearings to be

procured under the contract or subcontract is rated lower than

the rating known as Annual Bearing Engineering Committee (ABEC) 5

or Roller Bearing Engineering Committee (RBEC) 5, or an

equivalent of such rating;

(C) at least two manufacturers in the national technology and

industrial base that are capable of producing the ball or roller

bearings have not responded to a request for quotation issued by

the contracting activity for that contract or subcontract; and

(D) no bearing to be procured under the contract or subcontract

has a basic outside diameter (exclusive of flange diameters) in

excess of 30 millimeters.

(2) Paragraph (1) does not apply to a purchase if such purchase

would result in the total amount of purchases of ball bearings and

roller bearings to satisfy requirements under Department of Defense

contracts, using the authority provided in such paragraph, to

exceed $200,000 during the fiscal year of such purchase.

-SOURCE-

(Added Pub. L. 97-295, Sec. 1(29)(A), Oct. 12, 1982, 96 Stat. 1294,

Sec. 2400; amended Pub. L. 100-180, div. A, title I, Sec. 124(a),

(b)(1), title VIII, Sec. 824(a), Dec. 4, 1987, 101 Stat. 1042,

1043, 1134; renumbered Sec. 2502 and amended Pub. L. 100-370, Sec.

3(b)(1), July 19, 1988, 102 Stat. 855; renumbered Sec. 2507 and

amended Pub. L. 100-456, div. A, title VIII, Sec. 821(b)(1)(A),

822, Sept. 29, 1988, 102 Stat. 2014, 2017; Pub. L. 101-510, div.

A, title VIII, Sec. 835(a), title XIV, Sec. 1421, Nov. 5, 1990, 104

Stat. 1614, 1682; Pub. L. 102-190, div. A, title VIII, Sec. 834,

835, Dec. 5, 1991, 105 Stat. 1447, 1448; renumbered Sec. 2534 and

amended Pub. L. 102-484, div. A, title VIII, Sec. 831, 833(a),

title X, Sec. 1052(33), div. D, title XLII, Sec. 4202(a),

4271(b)(4), Oct. 23, 1992, 106 Stat. 2460, 2461, 2501, 2659, 2696;

Pub. L. 103-160, div. A, title IX, Sec. 904(d)(1), Nov. 30, 1993,

107 Stat. 1728; Pub. L. 103-337, div. A, title VIII, Sec. 814,

Oct. 5, 1994, 108 Stat. 2817; Pub. L. 103-355, title IV, Sec.

4102(i), Oct. 13, 1994, 108 Stat. 3341; Pub. L. 104-106, div. A,

title VIII, Sec. 806(a)(1)-(4), (b)-(d), title XV, Sec.

1503(a)(30), Feb. 10, 1996, 110 Stat. 390, 391, 512; Pub. L.

104-201, div. A, title VIII, Sec. 810, title X, Sec. 1074(a)(14),

Sept. 23, 1996, 110 Stat. 2608, 2659; Pub. L. 105-85, div. A,

title III, Sec. 371(d)(1), title VIII, Sec. 811(a), title X, Sec.

1073(a)(55), Nov. 18, 1997, 111 Stat. 1706, 1839, 1903; Pub. L.

106-398, Sec. 1 ((div. A), title VIII, Sec. 805), Oct. 30, 2000,

114 Stat. 1654, 1654A-207; Pub. L. 107-107, div. A, title VIII,

Sec. 835(a), title X, Sec. 1048(b)(2), Dec. 28, 2001, 115 Stat.

1191, 1225.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

2400 10:2303 (note). Sept. 20, 1968, Pub.

L. 90-500, Sec.

404, 82 Stat. 851.

-------------------------------

The words ''of the United States under the provisions of this Act

or the provisions of any other law'' are omitted as surplus. The

word ''acquisition'' is substituted for ''purchase, lease, rental,

or other acquisition'' because it is inclusive. The words ''this

section'' are substituted for ''this prohibition'' because of the

restatement.

AMENDMENTS

2001 - Subsec. (i)(3). Pub. L. 107-107, Sec. 1048(b)(2),

substituted ''Under Secretary of Defense for Acquisition,

Technology, and Logistics'' for ''Under Secretary of Defense for

Acquisition and Technology''.

Subsec. (j). Pub. L. 107-107, Sec. 835(a), added subsec. (j).

2000 - Subsec. (c)(3). Pub. L. 106-398 substituted ''October 1,

2005'' for ''October 1, 2000''.

1997 - Subsec. (b)(3). Pub. L. 105-85, Sec. 1073(a)(55),

substituted ''(a)(3)(A)(iii)'' for ''(a)(3)(A)(ii)''.

Subsec. (d)(4), (5). Pub. L. 105-85, Sec. 371(d)(1), substituted

''section 2500(1)'' for ''section 2491(1)''.

Subsec. (i). Pub. L. 105-85, Sec. 811(a), added subsec. (i).

1996 - Subsec. (a)(3). Pub. L. 104-106, Sec. 806(a)(1), amended

par. (3) generally. Prior to amendment, par. (3) read as follows:

''Air circuit breakers. - Air circuit breakers for naval vessels.''

Subsec. (b)(3). Pub. L. 104-106, Sec. 806(a)(2), added par. (3).

Subsec. (c). Pub. L. 104-106, Sec. 1503(a)(30), substituted

''Certain Items'' for ''certain items'' in heading.

Subsec. (c)(1). Pub. L. 104-106, Sec. 806(a)(3), amended par. (1)

generally. Prior to amendment, par. (1) read as follows: ''Air

circuit breakers. - Subsection (a) does not apply to a procurement

of spares or repair parts needed to support air circuit breakers

produced or manufactured outside the United States.''

Subsec. (c)(3). Pub. L. 104-106, Sec. 806(b), substituted

''October 1, 2000'' for ''October 1, 1995''.

Subsec. (c)(4). Pub. L. 104-201, Sec. 1074(a)(14), substituted

''February 10, 1998'' for ''the date occurring two years after the

date of the enactment of the National Defense Authorization Act for

Fiscal Year 1996''.

Pub. L. 104-106, Sec. 806(c), added par. (4).

Subsec. (d)(3). Pub. L. 104-201, Sec. 810, inserted ''or would

impede the reciprocal procurement of defense items under a

memorandum of understanding providing for reciprocal procurement of

defense items that is entered into under section 2531 of this

title,'' after ''a foreign country,''.

Subsec. (g). Pub. L. 104-106, Sec. 806(d), designated existing

provisions as par. (1) and added par. (2).

Subsec. (h). Pub. L. 104-106, Sec. 806(a)(4), added subsec. (h).

1994 - Pub. L. 103-337 amended section generally. Prior to

amendment, section consisted of subsecs. (a) to (f) relating to

acquisition of multipassenger motor vehicles, chemical weapons

antidote, valves and machine tools, carbonyl iron powders, air

circuit breakers, and sonobuoys.

Subsec. (g). Pub. L. 103-355 added subsec. (g).

1993 - Subsec. (b)(2). Pub. L. 103-160 substituted ''Under

Secretary of Defense for Acquisition and Technology'' for ''Under

Secretary of Defense for Acquisition''.

1992 - Pub. L. 102-484, Sec. 4202(a), 4271(b)(4), renumbered

section 2507 of this title as this section and substituted

''Miscellaneous limitations on the procurement of goods other than

United States goods'' for ''Miscellaneous procurement limitations''

in section catchline.

Subsec. (c). Pub. L. 102-484, Sec. 831, redesignated subsec. (d)

as (c) and struck out former subsec. (c) which read as follows:

''Manual Typewriters From Warsaw Pact Countries. - Funds

appropriated to or for the use of the Department of Defense may not

be used for the procurement of manual typewriters which contain one

or more components manufactured in a country which is a member of

the Warsaw Pact unless the products of that country are accorded

nondiscriminatory treatment (most-favored-nation treatment).''

Subsec. (d). Pub. L. 102-484, Sec. 831(b), redesignated subsec.

(e) as (d). Former subsec. (d) redesignated (c).

Subsec. (d)(3)(A). Pub. L. 102-484, Sec. 1052(33), substituted

''Government-owned'' for ''government-owned''.

Subsec. (e). Pub. L. 102-484, Sec. 831(b), redesignated subsec.

(f) as (e). Former subsec. (e) redesignated (d).

Subsec. (f). Pub. L. 102-484, Sec. 833(a), added subsec. (f).

Former subsec. (f) redesignated (e).

1991 - Subsec. (d)(1). Pub. L. 102-190, Sec. 834(a), substituted

''Effective through fiscal year 1996'' for ''During fiscal years

1989, 1990, and 1991''.

Subsec. (d)(3) to (5). Pub. L. 102-190, Sec. 834(b), added pars.

(3) and (4), redesignated former par. (3) as (5), and struck out

former par. (4) which read as follows: ''The provisions of this

section may be renewed with respect to any item by the Secretary of

Defense at the end of fiscal year 1991 for an additional two fiscal

years if the Secretary determines that a continued restriction on

that item is in the national security interest.''

Subsec. (e)(1). Pub. L. 102-190, Sec. 835(1), substituted ''Until

January 1, 1993, the Secretary'' for ''The Secretary''.

Subsec. (e)(3). Pub. L. 102-190, Sec. 835(2), (4), redesignated

par. (4) as (3) and struck out former par. (3) which read as

follows: ''After September 30, 1994, the Secretary may terminate

the restriction required under paragraph (1) if the Secretary

determines that continuing the restriction is not in the national

interest.''

Subsec. (e)(3)(A). Pub. L. 102-190, Sec. 835(3), struck out

before period ''by an entity more than 50 percent of which is owned

or controlled by citizens of the United States or Canada''.

Subsec. (e)(4). Pub. L. 102-190, Sec. 835(4), redesignated par.

(4) as (3).

1990 - Subsec. (e). Pub. L. 101-510, Sec. 835(a), added subsec.

(e).

Subsec. (f). Pub. L. 101-510, Sec. 1421, added subsec. (f).

1988 - Pub. L. 100-370, and Pub. L. 100-456, Sec. 821(b)(1)(A),

successively renumbered section 2400 of this title as section 2502

of this title and then as this section.

Subsec. (a). Pub. L. 100-370 substituted ''this subsection'' for

''this section''.

Subsec. (d). Pub. L. 100-456, Sec. 822, added subsec. (d).

1987 - Pub. L. 100-180 substituted ''Miscellaneous procurement

limitations'' for ''Limitation on procurement of buses'' in section

catchline, designated existing provisions as subsec. (a) and added

heading, and added subsecs. (b) and (c).

EFFECTIVE DATE OF 2001 AMENDMENT

Pub. L. 107-107, div. A, title VIII, Sec. 835(b), Dec. 28, 2001,

115 Stat. 1192, provided that: ''Subsection (j) of such section

2534 (as added by subsection (a)) shall apply with respect to a

contract or subcontract to purchase ball bearings or roller

bearings entered into after the date of the enactment of this Act

(Dec. 28, 2001).''

EFFECTIVE DATE OF 1997 AMENDMENT

Section 811(b) of Pub. L. 105-85 provided that: ''Subsection (i)

of section 2534 of such title (10 U.S.C. 2534(i)), as added by

subsection (a), shall apply with respect to -

''(1) contracts and subcontracts entered into on or after the

date of the enactment of this Act (Nov. 18, 1997); and

''(2) options for the procurement of items that are exercised

after such date under contracts that are entered into before such

date if the option prices are adjusted for any reason other than

the application of a waiver granted under subsection (d) of such

section 2534, on the basis of the applicability of paragraph (2)

or (3) of that subsection.''

EFFECTIVE DATE OF 1996 AMENDMENT

Section 806(a)(5) of Pub. L. 104-106 provided that: ''Subsection

(a)(3)(B) of section 2534 of title 10, United States Code, as

amended by paragraph (1), shall apply only to contracts entered

into after March 31, 1996.''

EFFECTIVE DATE OF 1994 AMENDMENT

For effective date and applicability of amendment by Pub. L.

103-355, see section 10001 of Pub. L. 103-355, set out as a note

under section 251 of Title 41, Public Contracts.

EFFECTIVE DATE OF 1992 AMENDMENT

Section 833(b) of Pub. L. 102-484 provided that: ''Subsection (f)

of section 2534 of title 10, United States Code, as added by

subsection (a), shall apply with respect to solicitations for

contracts issued after the expiration of the 120-day period

beginning on the date of the enactment of this Act (Oct. 23,

1992).''

EFFECTIVE DATE OF 1990 AMENDMENT

Section 835(b) of Pub. L. 101-510 provided that subsec. (e) of

this section, as added by section 835(a) of Pub. L. 101-510,

applied with respect to systems or items procured by or provided to

Department of Defense after Nov. 5, 1990.

-CITE-

10 USC Sec. 2535 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER V - MISCELLANEOUS TECHNOLOGY BASE POLICIES AND PROGRAMS

-HEAD-

Sec. 2535. Defense Industrial Reserve

-STATUTE-

(a) Declaration of Purpose and Policy. - It is the intent of

Congress -

(1) to provide a comprehensive and continuous program for the

future safety and for the defense of the United States by

providing adequate measures whereby an essential nucleus of

Government-owned industrial plants and an industrial reserve of

machine tools and other industrial manufacturing equipment may be

assured for immediate use to supply the needs of the armed forces

in time of national emergency or in anticipation thereof;

(2) that such Government-owned plants and such reserve shall

not exceed in number or kind the minimum requirements for

immediate use in time of national emergency, and that any such

items which shall become excess to such requirements shall be

disposed of as expeditiously as possible;

(3) that to the maximum extent practicable, reliance will be

placed upon private industry for support of defense production;

and

(4) that machine tools and other industrial manufacturing

equipment may be held in plant equipment packages or in a general

reserve to maintain a high state of readiness for production of

critical items of defense materiel, to provide production

capacity not available in private industry for defense materiel,

or to assist private industry in time of national disaster.

(b) Powers and Duties of the Secretary of Defense. - (1) To

execute the policy set forth in subsection (a), the Secretary of

Defense shall -

(A) determine which industrial plants and installations

(including machine tools and other industrial manufacturing

equipment) should become a part of the Defense Industrial

Reserve;

(B) designate what excess industrial property shall be disposed

of;

(C) establish general policies and provide for the

transportation, handling, care, storage, protection, maintenance,

repair, rebuilding, utilization, recording, leasing and security

of such property;

(D) direct the transfer without reimbursement of such property

to other Government agencies with the consent of such agencies;

(E) direct the leasing of any of such property to designated

lessees;

(F) authorize the disposition in accordance with existing law

of any of such property when in the opinion of the Secretary such

property is no longer needed by the Department of Defense; and

(G) notwithstanding chapter 5 of title 40 and any other

provision of law, authorize the transfer to a nonprofit

educational institution or training school, on a nonreimbursable

basis, of any such property already in the possession of such

institution or school whenever the program proposed by such

institution or school for the use of such property is in the

public interest.

(2)(A) The Secretary of a military department to which equipment

or other property is transferred from the Defense Industrial

Reserve shall reimburse appropriations available for the purposes

of the Defense Industrial Reserve for the full cost (including

direct and indirect costs) of -

(i) storage of such property;

(ii) repair and maintenance of such property; and

(iii) overhead allocated to such property.

(B) The Secretary of Defense shall prescribe regulations

establishing general policies and fee schedules for reimbursements

under subparagraph (A).

(c) Definitions. - In this section:

(1) The term ''Defense Industrial Reserve'' means -

(A) a general reserve of industrial manufacturing equipment,

including machine tools, selected by the Secretary of Defense

for retention for national defense or for other emergency use;

(B) those industrial plants and installations held by and

under the control of the Department of Defense in active or

inactive status, including Government-owned/Government-operated

plants and installations and

Government-owned/contractor-operated plants and installations

which are retained for use in their entirety, or in part, for

production of military weapons systems, munitions, components,

or supplies; and

(C) those industrial plants and installations under the

control of the Secretary which are not required for the

immediate need of any department or agency of the Government

and which should be sold, leased, or otherwise disposed of.

(2) The term ''plant equipment package'' means a complement of

active and idle machine tools and other industrial manufacturing

equipment held by and under the control of the Department of

Defense and approved by the Secretary for retention to produce

particular defense materiel or defense supporting items at a

specific level of output in the event of emergency.

-SOURCE-

(Added and amended Pub. L. 102-484, div. D, title XLII, Sec. 4235,

Oct. 23, 1992, 106 Stat. 2690; Pub. L. 103-35, title II, Sec.

201(c)(8), May 31, 1993, 107 Stat. 98; Pub. L. 103-337, div. A,

title III, Sec. 379(a), Oct. 5, 1994, 108 Stat. 2737; Pub. L.

107-107, div. A, title X, Sec. 1048(a)(23), Dec. 28, 2001, 115

Stat. 1224; Pub. L. 107-217, Sec. 3(b)(7), Aug. 21, 2002, 116 Stat.

1295.)

-COD-

CODIFICATION

The text of section 451 of Title 50, War and National Defense,

which was transferred to this section, designated subsec. (a), and

amended by Pub. L. 102-484, Sec. 4235(a)(2), was based on acts July

2, 1948, ch. 811, Sec. 2, 62 Stat. 1225; Nov. 16, 1973, Pub. L.

93-155, title VIII, Sec. 809, 87 Stat. 617.

The text of section 453 of Title 50 which was transferred to this

section, designated subsec. (b), and amended by Pub. L. 102-484,

Sec. 4235(a)(3), was based on acts July 2, 1948, ch. 811, Sec. 4,

62 Stat. 1226; Nov. 16, 1973, Pub. L. 93-155, title VIII, Sec. 809,

87 Stat. 617; Nov. 14, 1986, Pub. L. 99-661, div. A, title XIII,

Sec. 1359(a), 100 Stat. 3999. For effective date of 1986 amendment,

see section 1359(b) of Pub. L. 99-661.

The text of section 452 of Title 50 which was transferred to this

section, designated subsec. (c), and amended by Pub. L. 102-484,

Sec. 4235(b), was based on acts July 2, 1948, ch. 811, Sec. 3, 62

Stat. 1225; Nov. 16, 1973, Pub. L. 93-155, title VIII, Sec. 809, 87

Stat. 617.

-MISC3-

AMENDMENTS

2002 - Subsec. (b)(1)(G). Pub. L. 107-217 substituted ''chapter 5

of title 40'' for ''title II of the Federal Property and

Administrative Services Act of 1949 (40 U.S.C. 481 et seq.)''.

2001 - Subsec. (a). Pub. L. 107-107, Sec. 1048(a)(23)(A)(i),

substituted ''intent of Congress - '' for ''intent of Congress'' in

introductory provisions.

Subsec. (a)(1). Pub. L. 107-107, Sec. 1048(a)(23)(A)(ii), (iii),

substituted ''armed forces'' for ''Armed Forces'' and realigned

margins.

Subsec. (a)(2) to (4). Pub. L. 107-107, Sec. 1048(a)(23)(A)(ii),

realigned margins.

Subsec. (b)(1). Pub. L. 107-107, Sec. 1048(a)(23)(B)(i),

substituted ''in subsection (a), the Secretary of Defense shall -

'' for ''in this section, the Secretary is authorized and directed

to - '' in introductory provisions.

Subsec. (b)(1)(A). Pub. L. 107-107, Sec. 1048(a)(23)(B)(ii),

substituted ''Defense Industrial Reserve'' for ''defense industrial

reserve''.

Subsec. (c). Pub. L. 107-107, Sec. 1048(a)(23)(C), redesignated

par. (2) as (1), substituted ''means - '' for ''means'' in

introductory provisions, realigned margins of subpars. (A) to (C)

of par. (1) and inserted ''and'' after semicolon in subpar. (B),

redesignated par. (3) as (2), and struck out former par. (1) which

read as follows: ''The term 'Secretary' means Secretary of

Defense.''

1994 - Subsec. (b)(1)(G). Pub. L. 103-337 amended subpar. (G)

generally. Prior to amendment, subpar. (G) read as follows:

''authorize and regulate the lending of any such property to any

nonprofit educational institution or training school whenever (i)

the program proposed by such institution or school for the use of

such property will contribute materially to national defense, and

(ii) such institution or school shall by agreement make such

provision as the Secretary shall deem satisfactory for the proper

maintenance and care of such property and for its return, without

expense to the Government, upon request of the Secretary.''

1993 - Subsec. (b)(2)(B). Pub. L. 103-35 substituted

''subparagraph (A)'' for ''paragraph (1)''.

1992 - Pub. L. 102-484, Sec. 4235(a), added section number and

catchline.

Subsec. (a). Pub. L. 102-484, Sec. 4235(a)(2), transferred the

text of section 451 of Title 50, War and National Defense, to this

section, designated it subsec. (a), inserted heading, and

substituted ''It'' for ''In enacting this chapter it'' in

introductory provisions. See Codification note above.

Subsec. (b). Pub. L. 102-484, Sec. 4235(a)(3), transferred the

text of section 453 of Title 50, War and National Defense, to the

end of this section and designated it subsec. (b), inserted

heading, redesignated former subsec. (a) of section 453 as par.

(1), substituted ''in this section'' for ''in this chapter'' in

introductory provisions, redesignated former pars. (1) to (7) as

subpars. (A) to (G), respectively, in subpar. (G) redesignated

former subpars. (A) and (B) as cls. (i) and (ii), respectively,

redesignated former subsec. (b) of section 453 as par. (2), and in

par. (2) redesignated former par. (1) as subpar. (A), former

subpars. (A) to (C) as cls. (i) to (iii), and former par. (2) as

subpar. (B). See Codification note above.

Subsec. (c). Pub. L. 102-484, Sec. 4235(b), transferred the text

of section 452 of Title 50, War and National Defense, to the end of

this section, designated it subsec. (c), inserted heading, and

substituted ''In this section:'' for ''As used in this chapter - ''

in introductory provisions. See Codification note above.

TREATMENT OF PROPERTY LOANED BEFORE DECEMBER 31, 1993 TO

EDUCATIONAL INSTITUTIONS OR TRAINING SCHOOLS

Section 379(b) of Pub. L. 103-337 provided that: ''Except for

property determined by the Secretary of Defense to be needed by the

Department of Defense, property loaned before December 31, 1993, to

an educational institution or training school under section 2535(b)

of title 10, United States Code, or section 4(a)(7) of the Defense

Industrial Reserve Act (as in effect before October 23, 1992

(former section 453(a)(7) of Title 50, War and National Defense,

see Codification and 1992 Amendment notes above)) shall be regarded

as surplus property. Upon certification by the Secretary to the

Administrator of General Services that the property is being used

by the borrowing educational institution or training school for a

purpose consistent with that for which the property was loaned, the

Administrator may authorize the conveyance of all right, title, and

interest of the United States in such property to the borrower if

the borrower agrees to accept the property. The Administrator may

require any additional terms and conditions in connection with a

conveyance so authorized that the Administrator considers

appropriate to protect the interests of the United States.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 40 sections 113, 581.

-CITE-

10 USC Sec. 2536 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER V - MISCELLANEOUS TECHNOLOGY BASE POLICIES AND PROGRAMS

-HEAD-

Sec. 2536. Award of certain contracts to entities controlled by a

foreign government: prohibition

-STATUTE-

(a) In General. - A Department of Defense contract or Department

of Energy contract under a national security program may not be

awarded to an entity controlled by a foreign government if it is

necessary for that entity to be given access to information in a

proscribed category of information in order to perform the

contract.

(b) Waiver Authority. - (1) The Secretary concerned may waive the

application of subsection (a) to a contract award if -

(A) the Secretary concerned determines that the waiver is

essential to the national security interests of the United

States; or

(B) in the case of a contract awarded for environmental

restoration, remediation, or waste management at a Department of

Defense or Department of Energy facility -

(i) the Secretary concerned determines that the waiver will

advance the environmental restoration, remediation, or waste

management objectives of the department concerned and will not

harm the national security interests of the United States; and

(ii) the entity to which the contract is awarded is

controlled by a foreign government with which the Secretary

concerned is authorized to exchange Restricted Data under

section 144 c. of the Atomic Energy Act of 1954 (42 U.S.C.

2164(c)).

(2) The Secretary concerned shall notify Congress of any decision

to grant a waiver under paragraph (1)(B) with respect to a

contract. The contract may be awarded only after the end of the

45-day period beginning on the date the notification is received by

the committees.

(c) Definitions. - In this section:

(1) The term ''entity controlled by a foreign government''

includes -

(A) any domestic or foreign organization or corporation that

is effectively owned or controlled by a foreign government; and

(B) any individual acting on behalf of a foreign government,

as determined by the Secretary concerned. Such term does not

include an organization or corporation that is owned, but is not

controlled, either directly or indirectly, by a foreign

government if the ownership of that organization or corporation

by that foreign government was effective before October 23, 1992.

(2) The term ''proscribed category of information'' means a

category of information that -

(A) with respect to Department of Defense contracts -

(i) includes special access information;

(ii) is determined by the Secretary of Defense to include

information the disclosure of which to an entity controlled

by a foreign government is not in the national security

interests of the United States; and

(iii) is defined in regulations prescribed by the Secretary

of Defense for the purposes of this section; and

(B) with respect to Department of Energy contracts -

(i) is determined by the Secretary of Energy to include

information described in subparagraph (A)(ii); and

(ii) is defined in regulations prescribed by the Secretary

of Energy for the purposes of this section.

(3) The term ''Secretary concerned'' means -

(A) the Secretary of Defense, with respect to Department of

Defense contracts; and

(B) the Secretary of Energy, with respect to Department of

Energy contracts.

-SOURCE-

(Added Pub. L. 102-484, div. A, title VIII, Sec. 836(a)(1), Oct.

23, 1992, 106 Stat. 2462; amended Pub. L. 103-35, title II, Sec.

201(d)(4), May 31, 1993, 107 Stat. 99; Pub. L. 103-160, div. A,

title VIII, Sec. 842(a)-(c)(1), Nov. 30, 1993, 107 Stat. 1719; Pub.

L. 104-201, div. A, title VIII, Sec. 828, Sept. 23, 1996, 110

Stat. 2611.)

-MISC1-

AMENDMENTS

1996 - Subsec. (b). Pub. L. 104-201 amended subsec. (b)

generally. Prior to amendment, subsec. (b) read as follows:

''Waiver Authority. - The Secretary concerned may waive the

application of subsection (a) to a contract award if the Secretary

concerned determines that the waiver is essential to the national

security interests of the United States.''

1993 - Pub. L. 103-160, Sec. 842(c)(1), substituted ''Award of

certain contracts to entities controlled by a foreign government:

prohibition'' for ''Prohibition on award of certain Department of

Defense and Department of Energy contracts to companies owned by an

entity controlled by a foreign government.'' as section catchline.

Pub. L. 103-35 struck out period at end of section catchline.

Subsec. (a). Pub. L. 103-160, Sec. 842(a), struck out ''a company

owned by'' after ''awarded to'' and substituted ''that entity'' for

''that company''.

Subsec. (c)(1). Pub. L. 103-160, Sec. 842(b), inserted at end

''Such term does not include an organization or corporation that is

owned, but is not controlled, either directly or indirectly, by a

foreign government if the ownership of that organization or

corporation by that foreign government was effective before October

23, 1992.''

EFFECTIVE DATE OF 1992 AMENDMENT

Section 836(b) of Pub. L. 102-484 provided that: ''Section 2536

of title 10, United States Code, as added by subsection (a), shall

apply with respect to contracts entered into after the expiration

of the 90-day period beginning on the date of the enactment of this

Act (Oct. 23, 1992).''

-CITE-

10 USC Sec. 2537 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER V - MISCELLANEOUS TECHNOLOGY BASE POLICIES AND PROGRAMS

-HEAD-

Sec. 2537. Improved national defense control of technology

diversions overseas

-STATUTE-

(a) Collection of Information on Foreign-Controlled Contractors.

- The Secretary of Defense and the Secretary of Energy shall each

collect and maintain a data base containing a list of, and other

pertinent information on, all contractors with the Department of

Defense and the Department of Energy, respectively, that are

controlled by foreign persons. The data base shall contain

information on such contractors for 1988 and thereafter in all

cases where they are awarded contracts exceeding $10,000,000 in any

single year by the Department of Defense or the Department of

Energy.

(b) Annual Report to Congress. - The Secretary of Defense, the

Secretary of Energy, and the Secretary of Commerce shall submit to

the Congress, by March 31 of each year, beginning in 1994, a report

containing a summary and analysis of the information collected

under subsection (a) for the year covered by the report. The

report shall include an analysis of accumulated foreign ownership

of United States firms engaged in the development of defense

critical technologies.

(c) Technology Risk Assessment Requirement. - (1) If the

Secretary of Defense is acting as a designee of the President under

section 721(a) of the Defense Production Act of 1950 (50 U.S.C.

App. 2170(a)) and if the Secretary determines that a proposed or

pending merger, acquisition, or takeover may involve a firm engaged

in the development of a defense critical technology or is otherwise

important to the defense industrial and technology base, then the

Secretary shall require the appropriate entity or entities from the

list set forth in paragraph (2) to conduct an assessment of the

risk of diversion of defense critical technology posed by such

proposed or pending action.

(2) The entities referred to in paragraph (1) are the following:

(A) The Defense Intelligence Agency.

(B) The Army Foreign Technology Science Center.

(C) The Naval Maritime Intelligence Center.

(D) The Air Force Foreign Aerospace Science and Technology

Center.

-SOURCE-

(Added Pub. L. 102-484, div. A, title VIII, Sec. 838(a), Oct. 23,

1992, 106 Stat. 2465; amended Pub. L. 103-35, title II, Sec.

201(d)(5), (h)(2), May 31, 1993, 107 Stat. 99, 100; Pub. L.

107-314, div. A, title X, Sec. 1041(a)(16), Dec. 2, 2002, 116

Stat. 2645.)

-MISC1-

AMENDMENTS

2002 - Subsec. (a). Pub. L. 107-314 substituted ''$10,000,000''

for ''$100,000''.

1993 - Subsec. (a). Pub. L. 103-35, Sec. 201(d)(5), substituted

''respectively, that'' for ''respectively, which''.

Subsec. (d). Pub. L. 103-35, Sec. 201(h)(2), struck out subsec.

(d) which read as follows: ''In this section, the term 'defense

critical technology' has the meaning provided that term by section

2491(8) of this title.''

-CITE-

10 USC Sec. 2538 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER V - MISCELLANEOUS TECHNOLOGY BASE POLICIES AND PROGRAMS

-HEAD-

Sec. 2538. Industrial mobilization: orders; priorities; possession

of manufacturing plants; violations

-STATUTE-

(a) Ordering Authority. - In time of war or when war is imminent,

the President, through the head of any department, may order from

any person or organized manufacturing industry necessary products

or materials of the type usually produced or capable of being

produced by that person or industry.

(b) Compliance With Order Required. - A person or industry with

whom an order is placed under subsection (a), or the responsible

head thereof, shall comply with that order and give it precedence

over all orders not placed under that subsection.

(c) Seizure of Manufacturing Plants Upon Noncompliance. - In time

of war or when war is imminent, the President, through the head of

any department, may take immediate possession of any plant that is

equipped to manufacture, or that in the opinion of the head of that

department is capable of being readily transformed into a plant for

manufacturing, arms or ammunition, parts thereof, or necessary

supplies for the armed forces if the person or industry owning or

operating the plant, or the responsible head thereof, refuses -

(1) to give precedence to the order as prescribed in subsection

(b);

(2) to manufacture the kind, quantity, or quality of arms or

ammunition, parts thereof, or necessary supplies, as ordered by

the head of such department; or

(3) to furnish them at a reasonable price as determined by the

head of such department.

(d) Use of Seized Plant. - The President, through the head of any

department, may manufacture products that are needed in time of war

or when war is imminent, in any plant that is seized under

subsection (c).

(e) Compensation Required. - Each person or industry from whom

products or materials are ordered under subsection (a) is entitled

to fair and just compensation. Each person or industry whose plant

is seized under subsection (c) is entitled to a fair and just

rental.

(f) Criminal Penalty. - Whoever fails to comply with this section

shall be imprisoned for not more than three years and fined under

title 18.

-SOURCE-

(Added Pub. L. 103-160, div. A, title VIII, Sec. 822(a)(1), Nov.

30, 1993, 107 Stat. 1704; amended Pub. L. 103-337, div. A, title

VIII, Sec. 811, Oct. 5, 1994, 108 Stat. 2815.)

-MISC1-

PRIOR PROVISIONS

Provisions similar to those in this section were contained in

sections 4501 and 9501 of this title, prior to repeal by Pub. L.

103-160, Sec. 822(a)(2).

AMENDMENTS

1994 - Subsec. (a). Pub. L. 103-337, Sec. 811(1), substituted

''head of any department'' for ''Secretary of Defense''.

Subsec. (c). Pub. L. 103-337, Sec. 811, substituted ''through the

head of any department'' for ''through the Secretary of Defense''

and ''opinion of the head of that department'' for ''opinion of the

Secretary of Defense'' in introductory provisions and ''head of

such department'' for ''Secretary'' in pars. (2) and (3).

Subsec. (d). Pub. L. 103-337, Sec. 811(1), substituted ''head of

any department'' for ''Secretary of Defense''.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2539a of this title.

-CITE-

10 USC Sec. 2539 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER V - MISCELLANEOUS TECHNOLOGY BASE POLICIES AND PROGRAMS

-HEAD-

Sec. 2539. Industrial mobilization: plants; lists

-STATUTE-

(a) List of Plants Equipped to Manufacture Arms or Ammunition. -

The Secretary of Defense may maintain a list of all privately owned

plants in the United States, and the territories, Commonwealths,

and possessions of the United States, that are equipped to

manufacture for the armed forces arms or ammunition, or parts

thereof, and may obtain complete information of the kinds of those

products manufactured or capable of being manufactured by each of

those plants, and of the equipment and capacity of each of those

plants.

(b) List of Plants Convertible Into Ammunition Factories. - The

Secretary of Defense may maintain a list of privately owned plants

in the United States, and the territories, Commonwealths, and

possessions of the United States, that are capable of being readily

transformed into factories for the manufacture of ammunition for

the armed forces and that have a capacity sufficient to warrant

conversion into ammunition plants in time of war or when war is

imminent, and may obtain complete information as to the equipment

of each of those plants.

(c) Conversion Plans. - The Secretary of Defense may prepare

comprehensive plans for converting each plant listed pursuant to

subsection (b) into a factory for the manufacture of ammunition or

parts thereof.

-SOURCE-

(Added Pub. L. 103-160, div. A, title VIII, Sec. 822(a)(1), Nov.

30, 1993, 107 Stat. 1705.)

-MISC1-

PRIOR PROVISIONS

Provisions similar to those in this section were contained in

sections 4502(a)-(c) and 9502(a)-(c) of this title, prior to repeal

by Pub. L. 103-160, Sec. 822(a)(2).

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2539a of this title.

-CITE-

10 USC Sec. 2539a 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER V - MISCELLANEOUS TECHNOLOGY BASE POLICIES AND PROGRAMS

-HEAD-

Sec. 2539a. Industrial mobilization: Board on Mobilization of

Industries Essential for Military Preparedness

-STATUTE-

The President may appoint a nonpartisan Board on Mobilization of

Industries Essential for Military Preparedness, and may provide

necessary clerical assistance, to organize and coordinate

operations under sections 2538 and 2539 of this title.

-SOURCE-

(Added Pub. L. 103-160, div. A, title VIII, Sec. 822(a)(1), Nov.

30, 1993, 107 Stat. 1705, Sec. 2540; renumbered Sec. 2539a, Pub. L.

103-337, div. A, title X, Sec. 1070(a)(13)(A), Oct. 5, 1994, 108

Stat. 2856.)

-MISC1-

PRIOR PROVISIONS

Provisions similar to those in this section were contained in

sections 4502(d) and 9502(d) of this title, prior to repeal by Pub.

L. 103-160, Sec. 822(a)(2).

AMENDMENTS

1994 - Pub. L. 103-337 renumbered section 2540 of this title as

this section.

-CITE-

10 USC Sec. 2539b 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER V - MISCELLANEOUS TECHNOLOGY BASE POLICIES AND PROGRAMS

-HEAD-

Sec. 2539b. Availability of samples, drawings, information,

equipment, materials, and certain services

-STATUTE-

(a) Authority. - The Secretary of Defense and the Secretaries of

the military departments, under regulations prescribed by the

Secretary of Defense and when determined by the Secretary of

Defense or the Secretary concerned to be in the interest of

national defense, may each -

(1) sell, rent, lend, or give samples, drawings, and

manufacturing or other information (subject to the rights of

third parties) to any person or entity;

(2) sell, rent, or lend government equipment or materials to

any person or entity -

(A) for use in independent research and development programs,

subject to the condition that the equipment or material be used

exclusively for such research and development; or

(B) for use in demonstrations to a friendly foreign

government; and

(3) make available to any person or entity, at an appropriate

fee, the services of any government laboratory, center, range, or

other testing facility for the testing of materials, equipment,

models, computer software, and other items.

(b) Confidentiality of Test Results. - The results of tests

performed with services made available under subsection (a)(3) are

confidential and may not be disclosed outside the Federal

Government without the consent of the persons for whom the tests

are performed.

(c) Fees. - Fees for services made available under subsection

(a)(3) shall be established in the regulations prescribed pursuant

to subsection (a). Such fees may not exceed the amount necessary to

recoup the direct and indirect costs involved, such as direct costs

of utilities, contractor support, and salaries of personnel that

are incurred by the United States to provide for the testing.

(d) Use of Fees. - Fees received for services made available

under subsection (a)(3) may be credited to the appropriations or

other funds of the activity making such services available.

-SOURCE-

(Added Pub. L. 103-160, div. A, title VIII, Sec. 822(b)(1), Nov.

30, 1993, 107 Stat. 1705, Sec. 2541; renumbered Sec. 2539b, Pub. L.

103-337, div. A, title X, Sec. 1070(a)(13)(A), Oct. 5, 1994, 108

Stat. 2856; amended Pub. L. 103-355, title III, Sec. 3022, Oct. 13,

1994, 108 Stat. 3333; Pub. L. 104-106, div. A, title VIII, Sec.

804, div. D, title XLIII, Sec. 4321(a)(8), Feb. 10, 1996, 110

Stat. 390, 671; Pub. L. 106-65, div. A, title X, Sec. 1066(a)(23),

Oct. 5, 1999, 113 Stat. 771.)

-MISC1-

AMENDMENTS

1999 - Subsec. (a). Pub. L. 106-65 substituted ''Secretaries of

the military departments'' for ''secretaries of the military

departments''.

1996 - Subsec. (a). Pub. L. 104-106, Sec. 4321(a)(8), made

technical correction to Pub. L. 103-355, Sec. 3022. See 1994

Amendment note below.

Subsec. (c). Pub. L. 104-106, Sec. 804, inserted ''and indirect''

after ''recoup the direct''.

1994 - Pub. L. 103-337 renumbered section 2541 of this title as

this section.

Subsec. (a). Pub. L. 103-355, Sec. 3022, as amended by Pub. L.

104-106, Sec. 4321(a)(8), inserted ''rent,'' after ''sell,'' in

par. (1) and '', rent,'' after ''sell'' in par. (2).

EFFECTIVE DATE OF 1996 AMENDMENT

Section 4321(a) of Pub. L. 104-106 provided that the amendment

made by that section is effective as of Oct. 13, 1994, and as if

included in Pub. L. 103-355 as enacted.

-CITE-

10 USC SUBCHAPTER VI - DEFENSE EXPORT LOAN GUARANTEES 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER VI - DEFENSE EXPORT LOAN GUARANTEES

.

-HEAD-

SUBCHAPTER VI - DEFENSE EXPORT LOAN GUARANTEES

-MISC1-

Sec.

2540. Establishment of loan guarantee program.

2540a. Transferability.

2540b. Limitations.

2540c. Fees charged and collected.

2540d. Definitions.

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in section 2541c of this title.

-CITE-

10 USC Sec. 2540 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER VI - DEFENSE EXPORT LOAN GUARANTEES

-HEAD-

Sec. 2540. Establishment of loan guarantee program

-STATUTE-

(a) Establishment. - In order to meet the national security

objectives in section 2501(a) of this title, the Secretary of

Defense shall establish a program under which the Secretary may

issue guarantees assuring a lender against losses of principal or

interest, or both principal and interest, arising out of the

financing of the sale or long-term lease of defense articles,

defense services, or design and construction services to a country

referred to in subsection (b).

(b) Covered Countries. - The authority under subsection (a)

applies with respect to the following countries:

(1) A member nation of the North Atlantic Treaty Organization

(NATO).

(2) A country designated as of March 31, 1995, as a major

non-NATO ally pursuant to section 2350a(i)(3) (FOOTNOTE 1) of

this title.

(FOOTNOTE 1) See References in Text note below.

(3) A country in Central Europe that, as determined by the

Secretary of State -

(A) has changed its form of national government from a

nondemocratic form of government to a democratic form of

government since October 1, 1989; or

(B) is in the process of changing its form of national

government from a nondemocratic form of government to a

democratic form of government.

(4) A noncommunist country that was a member nation of the Asia

Pacific Economic Cooperation (APEC) as of October 31, 1993.

(c) Authority Subject to Provisions of Appropriations. - The

Secretary may guarantee a loan under this subchapter only to such

extent or in such amounts as may be provided in advance in

appropriations Acts.

-SOURCE-

(Added Pub. L. 104-106, div. A, title XIII, Sec. 1321(a)(1), Feb.

10, 1996, 110 Stat. 475.)

-REFTEXT-

REFERENCES IN TEXT

Section 2350a of this title, referred to in subsec. (b)(2), was

subsequently amended, and section 2350a(i)(3) no longer defines the

term ''major non-NATO ally''. However, such term is defined

elsewhere in that section.

-MISC2-

PRIOR PROVISIONS

A prior section 2540, acts Aug. 10, 1956, ch. 1041, 70A Stat.

141, Sec. 2511; renumbered Sec. 2521, Nov. 5, 1990, Pub. L.

101-510, div. A, title VIII, Sec. 823(a)(2), 104 Stat. 1600;

renumbered Sec. 2540, Dec. 5, 1991, Pub. L. 102-190, div. A, title

VIII, Sec. 821(e)(3), 105 Stat. 1432, related to availability or

issuance to reserve components of supplies, services, and

facilities of armed forces, prior to repeal by Pub. L. 103-337,

div. A, title XVI, Sec. 1664(c)(2), 1691, Oct. 5, 1994, 108 Stat.

3012, 3026, effective Dec. 1, 1994. See section 18502 of this

title.

Another prior section 2540 was renumbered section 2539a of this

title.

REPORT ON DEFENSE EXPORT LOAN GUARANTEE PROGRAM

Section 1321(b) of Pub. L. 104-106 provided that: ''Not later

than two years after the date of the enactment of this Act (Feb.

10, 1996), the President shall submit to Congress a report on the

loan guarantee program established pursuant to section 2540 of

title 10, United States Code, as added by subsection (a). The

report shall include -

''(1) an analysis of the costs and benefits of the loan

guarantee program; and

''(2) any recommendations for modification of the program that

the President considers appropriate, including -

''(A) any recommended addition to the list of countries for

which a guarantee may be issued under the program; and

''(B) any proposed legislation necessary to authorize a

recommended modification.''

-CITE-

10 USC Sec. 2540a 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER VI - DEFENSE EXPORT LOAN GUARANTEES

-HEAD-

Sec. 2540a. Transferability

-STATUTE-

A guarantee issued under this subchapter shall be fully and

freely transferable.

-SOURCE-

(Added Pub. L. 104-106, div. A, title XIII, Sec. 1321(a)(1), Feb.

10, 1996, 110 Stat. 476.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2541c of this title.

-CITE-

10 USC Sec. 2540b 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER VI - DEFENSE EXPORT LOAN GUARANTEES

-HEAD-

Sec. 2540b. Limitations

-STATUTE-

(a) Terms and Conditions of Loan Guarantees. - In issuing a

guarantee under this subchapter for a medium-term or long-term

loan, the Secretary may not offer terms and conditions more

beneficial than those that would be provided to the recipient by

the Export-Import Bank of the United States under similar

circumstances in conjunction with the provision of guarantees for

nondefense articles and services.

(b) Losses Arising From Fraud or Misrepresentation. - No payment

may be made under a guarantee issued under this subchapter for a

loss arising out of fraud or misrepresentation for which the party

seeking payment is responsible.

(c) No Right of Acceleration. - The Secretary of Defense may not

accelerate any guaranteed loan or increment, and may not pay any

amount, in respect of a guarantee issued under this subchapter,

other than in accordance with the original payment terms of the

loan.

-SOURCE-

(Added Pub. L. 104-106, div. A, title XIII, Sec. 1321(a)(1), Feb.

10, 1996, 110 Stat. 476.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2541c of this title.

-CITE-

10 USC Sec. 2540c 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER VI - DEFENSE EXPORT LOAN GUARANTEES

-HEAD-

Sec. 2540c. Fees charged and collected

-STATUTE-

(a) Exposure Fees. - The Secretary of Defense shall charge a fee

(known as ''exposure fee'') for each guarantee issued under this

subchapter.

(b) Amount of Exposure Fee. - To the extent that the cost of the

loan guarantees under this subchapter is not otherwise provided for

in appropriations Acts, the fee imposed under subsection (a) with

respect to a loan guarantee shall be fixed in an amount that is

sufficient to meet potential liabilities of the United States under

the loan guarantee.

(c) Payment Terms. - The fee under subsection (a) for each

guarantee shall become due as the guarantee is issued. In the case

of a guarantee for a loan which is disbursed incrementally, and for

which the guarantee is correspondingly issued incrementally as

portions of the loan are disbursed, the fee shall be paid

incrementally in proportion to the amount of the guarantee that is

issued.

(d) Administrative Fees. - (1) The Secretary of Defense shall

charge a fee for each guarantee issued under this subchapter to

reflect the additional administrative costs of the Department of

Defense that are directly attributable to the administration of the

program under this subchapter. Such fees shall be credited to a

special account in the Treasury. Amounts in the special account

shall be available, to the extent and in amounts provided in

appropriations Acts, for paying the costs of administrative

expenses of the Department of Defense that are attributable to the

loan guarantee program under this subchapter.

(2)(A) If for any fiscal year amounts in the special account

established under paragraph (1) are not available (or are not

anticipated to be available) in a sufficient amount for

administrative expenses of the Department of Defense for that

fiscal year that are directly attributable to the administration of

the program under this subchapter, the Secretary may use amounts

currently available for operations and maintenance for Defense-wide

activities, not to exceed $500,000 in any fiscal year, for those

expenses.

(B) The Secretary shall, from funds in the special account

established under paragraph (1), replenish operations and

maintenance accounts for amounts expended under subparagraph (A) as

soon as the Secretary determines practicable.

-SOURCE-

(Added Pub. L. 104-106, div. A, title XIII, Sec. 1321(a)(1), Feb.

10, 1996, 110 Stat. 476; amended Pub. L. 106-398, Sec. 1 ((div. A),

title X, Sec. 1081(a)), Oct. 30, 2000, 114 Stat. 1654, 1654A-284.)

-MISC1-

AMENDMENTS

2000 - Subsec. (d). Pub. L. 106-398 designated existing

provisions as par. (1) and added par. (2).

EFFECTIVE DATE OF 2000 AMENDMENT

Pub. L. 106-398, Sec. 1 ((div. A), title X, Sec. 1081(b), (c)),

Oct. 30, 2000, 114 Stat. 1654, 1654A-284, provided that:

''(b) Effective Date. - Paragraph (2) of section 2540c(d) of

title 10, United States Code, as added by subsection (a), shall

take effect on October 1, 2000.

''(c) Limitation Pending Submission of Report. - The Secretary of

Defense may not exercise the authority provided by paragraph (2) of

section 2540c(d) of title 10, United States Code, as added by

subsection (a), until the Secretary submits to Congress a report on

the operation of the Defense Export Loan Guarantee Program under

subchapter V of chapter 148 of title 10, United States Code. The

report shall include the following:

''(1) A discussion of the effectiveness of the loan guarantee

program in furthering the sale of United States defense articles,

defense services, and design and construction services to nations

that are specified in section 2540(b) of such title, to include a

comparison of the loan guarantee program with other United States

Government programs that are intended to contribute to the sale

of United States defense articles, defense services, and design

and construction services and other comparisons the Secretary

determines to be appropriate.

''(2) A discussion of the requirements and resources (including

personnel and funds) for continued administration of the loan

guarantee program by the Defense Department, to include -

''(A) an itemization of the requirements necessary and

resources available (or that could be made available) to

administer the loan guarantee program for each of the following

entities: the Defense Security Cooperation Agency, the

Department of Defense International Cooperation Office, and

other Defense Department agencies, offices, or activities as

the Secretary may specify; and

''(B) for each such activity, agency, or office, a comparison

of the use of Defense Department personnel exclusively to

administer, manage, and oversee the program with the use of

contracted commercial entities to administer and manage the

program.

''(3) Any legislative recommendations that the Secretary

believes could improve the effectiveness of the program.

''(4) A determination made by the Secretary of Defense

indicating which Defense Department agency, office, or other

activity should administer, manage, and oversee the loan

guarantee program to increase sales of United States defense

articles, defense services, and design and construction services,

such determination to be made based on the information and

analysis provided in the report.''

-CITE-

10 USC Sec. 2540d 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER VI - DEFENSE EXPORT LOAN GUARANTEES

-HEAD-

Sec. 2540d. Definitions

-STATUTE-

In this subchapter:

(1) The terms ''defense article'', ''defense services'', and

''design and construction services'' have the meanings given

those terms in section 47 of the Arms Export Control Act (22

U.S.C. 2794).

(2) The term ''cost'', with respect to a loan guarantee, has

the meaning given that term in section 502 of the Congressional

Budget and Impoundment Control Act of 1974 (2 U.S.C. 661a).

-SOURCE-

(Added Pub. L. 104-106, div. A, title XIII, Sec. 1321(a)(1), Feb.

10, 1996, 110 Stat. 477.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2541c of this title.

-CITE-

10 USC SUBCHAPTER VII - CRITICAL INFRASTRUCTURE

PROTECTION LOAN GUARANTEES 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER VII - CRITICAL INFRASTRUCTURE PROTECTION LOAN GUARANTEES

.

-HEAD-

SUBCHAPTER VII - CRITICAL INFRASTRUCTURE PROTECTION LOAN GUARANTEES

-MISC1-

Sec.

2541. Establishment of loan guarantee program.

2541a. Fees charged and collected.

2541b. Administration.

2541c. Transferability, additional limitations, and definition.

2541d. Reports.

-CITE-

10 USC Sec. 2541 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER VII - CRITICAL INFRASTRUCTURE PROTECTION LOAN GUARANTEES

-HEAD-

Sec. 2541. Establishment of loan guarantee program

-STATUTE-

(a) Establishment. - In order to meet the national security

objectives in section 2501(a) of this title, the Secretary of

Defense shall establish a program under which the Secretary may

issue guarantees assuring lenders against losses of principal or

interest, or both principal and interest, for loans made to

qualified commercial firms to fund, in whole or in part, any of the

following activities:

(1) The improvement of the protection of the critical

infrastructure of the commercial firms.

(2) The refinancing of improvements previously made to the

protection of the critical infrastructure of the commercial

firms.

(b) Qualified Commercial Firms. - For purposes of this section, a

qualified commercial firm is a company or other business entity

(including a consortium of such companies or other business

entities, as determined by the Secretary) that the Secretary

determines -

(1) conducts a significant level of its research, development,

engineering, and manufacturing activities in the United States;

(2) 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 -

(A) 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

(B) affords adequate and effective protection for the

intellectual property rights of companies incorporated in the

United States;

(3) provides technology products or services critical to the

operations of the Department of Defense;

(4) meets standards of prevention of cyberterrorism applicable

to the Department of Defense; and

(5) agrees to submit the report required under section 2541d of

this title.

(c) Loan Limits. - The maximum amount of loan principal

guaranteed during a fiscal year under this section may not exceed

$10,000,000, with respect to all borrowers.

(d) Goals and Standards. - The Secretary shall prescribe

regulations setting forth goals for the use of the loan guarantees

provided under this section and standards for evaluating whether

those goals are met by each entity receiving such loan guarantees.

(e) Authority Subject to Provisions of Appropriations. - The

Secretary may guarantee a loan under this subchapter only to such

extent or in such amounts as may be provided in advance in

appropriations Acts.

-SOURCE-

(Added Pub. L. 106-398, Sec. 1 ((div. A), title X, Sec.

1033(a)(1)), Oct. 30, 2000, 114 Stat. 1654, 1654A-258.)

-MISC1-

PRIOR PROVISIONS

A prior section 2541 was renumbered section 2551 of this title.

Another prior section 2541 was renumbered section 2539b of this

title.

-CITE-

10 USC Sec. 2541a 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER VII - CRITICAL INFRASTRUCTURE PROTECTION LOAN GUARANTEES

-HEAD-

Sec. 2541a. Fees charged and collected

-STATUTE-

(a) Fee Required. - The Secretary of Defense shall assess a fee

for providing a loan guarantee under this subchapter.

(b) Amount of Fee. - The amount of the fee shall be not less than

75 percent of the amount incurred by the Secretary to provide the

loan guarantee.

(c) Special Account. - (1) Such fees shall be credited to a

special account in the Treasury.

(2) Amounts in the special account shall be available, to the

extent and in amounts provided in appropriations Acts, for paying

the costs of administrative expenses of the Department of Defense

that are attributable to the loan guarantee program under this

subchapter.

(3)(A) If for any fiscal year amounts in the special account

established under paragraph (1) are not available (or are not

anticipated to be available) in a sufficient amount for

administrative expenses of the Department of Defense for that

fiscal year that are directly attributable to the administration of

the program under this subchapter, the Secretary may use amounts

currently available for operations and maintenance for Defense-wide

activities, not to exceed $500,000 in any fiscal year, for those

expenses.

(B) The Secretary shall, from funds in the special account

established under paragraph (1), replenish operations and

maintenance accounts for amounts expended under subparagraph (A).

-SOURCE-

(Added Pub. L. 106-398, Sec. 1 ((div. A), title X, Sec.

1033(a)(1)), Oct. 30, 2000, 114 Stat. 1654, 1654A-259.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2541b of this title.

-CITE-

10 USC Sec. 2541b 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER VII - CRITICAL INFRASTRUCTURE PROTECTION LOAN GUARANTEES

-HEAD-

Sec. 2541b. Administration

-STATUTE-

(a) Agreements Required. - The Secretary of Defense may enter

into one or more agreements, each with an appropriate Federal or

private entity, under which such entity may, under this subchapter

-

(1) process applications for loan guarantees;

(2) administer repayment of loans; and

(3) provide any other services to the Secretary to administer

this subchapter.

(b) Treatment of Costs. - The costs of such agreements shall be

considered, for purposes of the special account established under

section 2541a(c), to be costs of administrative expenses of the

Department of Defense that are attributable to the loan guarantee

program under this subchapter.

-SOURCE-

(Added Pub. L. 106-398, Sec. 1 ((div. A), title X, Sec.

1033(a)(1)), Oct. 30, 2000, 114 Stat. 1654, 1654A-259.)

-CITE-

10 USC Sec. 2541c 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER VII - CRITICAL INFRASTRUCTURE PROTECTION LOAN GUARANTEES

-HEAD-

Sec. 2541c. Transferability, additional limitations, and definition

-STATUTE-

The following provisions of subchapter VI of this chapter apply

to guarantees issued under this subchapter:

(1) Section 2540a, relating to transferability of guarantees.

(2) Subsections (b) and (c) of section 2540b, providing

limitations.

(3) Section 2540d(2), providing a definition of the term

''cost''.

-SOURCE-

(Added Pub. L. 106-398, Sec. 1 ((div. A), title X, Sec.

1033(a)(1)), Oct. 30, 2000, 114 Stat. 1654, 1654A-260; amended Pub.

L. 107-107, div. A, title X, Sec. 1048(a)(24), Dec. 28, 2001, 115

Stat. 1224.)

-MISC1-

AMENDMENTS

2001 - Pub. L. 107-107 substituted ''subchapter'' for

''subtitle'' in two places in introductory provisions.

-CITE-

10 USC Sec. 2541d 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

SUBCHAPTER VII - CRITICAL INFRASTRUCTURE PROTECTION LOAN GUARANTEES

-HEAD-

Sec. 2541d. Reports

-STATUTE-

(a) Report by Commercial Firms to Secretary of Defense. - The

Secretary of Defense shall require each qualified commercial firm

for which a loan is guaranteed under this subchapter to submit to

the Secretary a report on the improvements financed or refinanced

with the loan. The report shall include an assessment of the value

of the improvements for the protection of the critical

infrastructure of that commercial firm. The Secretary shall

prescribe the time for submitting the report.

(b) Annual Report by Secretary of Defense to Congress. - Not

later than March 1 of each year in which guarantees are made under

this subchapter, the Secretary of Defense shall submit to Congress

a report on the loan guarantee program under this subchapter. The

report shall include the following:

(1) The amounts of the loans for which guarantees were issued

during the year preceding the year of the report.

(2) The success of the program in improving the protection of

the critical infrastructure of the commercial firms covered by

the guarantees.

(3) The relationship of the loan guarantee program to the

critical infrastructure protection program of the Department of

Defense, together with an assessment of the extent to which the

loan guarantee program supports the critical infrastructure

protection program.

(4) Any other information on the loan guarantee program that

the Secretary considers appropriate to include in the report.

-SOURCE-

(Added Pub. L. 106-398, Sec. 1 ((div. A), title X, Sec.

1033(a)(1)), Oct. 30, 2000, 114 Stat. 1654, 1654A-260.)

-MISC1-

PRIOR PROVISIONS

Prior sections 2542 to 2550 were renumbered sections 2552 to 2560

of this title, respectively.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2541 of this title.

-CITE-