![handle is hein.crs/govcabm0001 and id is 1 raw text is:
FF. , iE S , .$r - i ,
mppm qq\
p\w -- , gmmw' go
I
MM
11LULANJILiM,
Updated February 6, 2020
Defense Primer: U.S. Defense Industrial Base
The Department of Defense (DOD) relies on a wide-
ranging and complex industrial base for the products and
services that enable the Department's warfighting
capabilities. Definitions of what this industrial base
encompasses vary in scope and emphasis.
Some analysts and experts distinguish between a domestic
defense industrial base (DIB) and a global DIB. The
domestic DIB includes public-sector (government-owned,
government-operated) facilities and private-sector
(commercial) companies located in the United States.
Congress has taken some interest and action to support and
sustain the domestic DIB. The global DIB includes foreign-
owned companies and commodities sourced from countries
with which the United States maintains formal defense
cooperation partnerships, as well as foreign-owned
companies and commodities sourced from countries
without formal defense cooperation relationships with the
United States. Together, the domestic DIB and portions of
the global DIB form the National Technology and Industrial
Base (NTIB), as established by 10 U.S.C. §2500.
The commercial companies that contract with DOD are
diverse, ranging in size from small businesses to some of
the world's largest corporate enterprises. These commercial
companies provide a wide variety of products to DOD,
encompassing everything from complex military-unique
platforms (such as aircraft carriers) to common items sold
commercially (such as laptop computers, clothing, and
food). These companies also provide a wide variety of
services, including everything from routine services (e.g.,
information technology (IT) support) to highly specialized
services (e.g., launching space vehicles).
Chapter 148 of Title 10, United States Code (U.S.C.),
addresses policies and planning related to the NTIB, which
it defines as persons and organizations that are engaged in
research, development, production, integration, services, or
information technology activities conducted within the
United States, the United Kingdom of Great Britain and
Northern Ireland, Australia, and Canada.
The Secretary of Defense is required (10 U.S.C. §2501) to
develop a national security strategy for the NTIB. The
strategy must be based on a prioritized assessment of risks
and challenges to the defense supply chain.
Specific responsibility for establishing policies for access
to, and maintenance of, the [domestic DIB] and materials
critical to national security, and policies on contract
administration is assigned to the Under Secretary of
Defense for Acquisition and Sustainment (USD/A&S) by
10 U.S.C. § 133b. The Deputy Assistant Secretary of
Defense for Industrial Policy (DASD/IP) serves as the
principal advisor to the Under Secretary on matters related
to the DIB, to include establishing policies for the
maintenance of the domestic DIB.
The Secretary of Defense is required (10 U.S.C. §2505) to
conduct annual assessments of the NTIB's capability to
attain national security objectives and must report to
Congress yearly on these assessments (10 U.S.C. §2504).
The assessment includes a description of sectors and
capabilities of the NTIB and their underlying infrastructure
and processes. In practice, the DASD/IP has performed the
assessment. In conducting the assessment, the Secretary is
required to consider factors such as:
* present and projected financial performance of
industries;
* whether DOD acquisition program requirements can be
met with current and projected NTIB capacities;
* the degree to which DOD acquisition program
requirements can be met with current and projected
capacities of
o industries supporting the sectors or capabilities in
the assessment, and the extent to which they are
comprised of only one potential source; and
o industries not currently supporting DOD programs,
and the barriers to participation of those industries;
and
* technological and industrial capabilities and processes
that may be unable to support the achievement of
national security objectives.
The following discussion surveys selected industrial base
authorities that are fundamental to DOD stewardship of the
NTIB.
10 U.S.C. §2508 directs the Secretary of Defense to
establish an Industrial Base Fund (IBF). The IBF is subject
to annual appropriations and was established to:
* support the monitoring and assessment of the industrial
base;
* address critical issues in the industrial base relating to
urgent operational needs;
* support efforts to expand the industrial base; and
* address supply chain vulnerabilities.
D£et~n', P~r~ct-k6*k Act (0,kP) of
The DPA of 1950, as last reauthorized in 2018, provides the
President with a number of authorities that he or she may
utilize to influence domestic industry in the interest of
national defense. The authorities most relevant to NTIB are:
:!K.:$:OOK~2$' ~dN](ViewImageLocal?handle=hein.crs/govcabm0001&div=1&collection=&method=preview&ext=.png&size=3)
What Is HeinOnline?
Contact us for annual subscription options:
Already a HeinOnline Subscriber?
profiles profiles most
Contact us for annual subscription options:
Already a HeinOnline Subscriber?
profiles profiles most
Contact us for annual subscription options:
Already a HeinOnline Subscriber?
profiles profiles most