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1 1 (December 20, 2018)

handle is hein.crs/goveaue0001 and id is 1 raw text is: Congressional Research Service Defense Primer: U.S. Defense Industrial Base The Department of Defense (DOD) relies on a wide- ranging and complex industrial base for products and services required to support DOD's stated mission to provide the military forces needed to deter war and to protect the security of our country. This defense industrial base comprises public-sector (government-owned, government-operated) facilities and private-sector (commercial) companies. 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 commercial items such as laptop computers, clothing, and food. They 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). Domestically owned firms and foreign-owned firms that engage in direct investment, hire U.S. workers, and are governed by U.S. laws are part of the nation's defense industrial base. DOD's Role Chapter 148 of Title 10, United States Code (U.S.C.), addresses policies and planning related to the national technology and industrial base (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 and directs the strategy to 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 defense industrial base 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 defense industrial base, to include establishing policies for the maintenance of the U.S. defense industrial base and monitoring and assessing the impact of foreign investments in the United States. Annual NTIB Assessments The Secretary of Defense is required by 10 U.S.C. §2505 to conduct annual assessments of the NTIB's capability to attain national security objectives and requires a yearly Updated December 20, 2018 report to Congress on such 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. Selected Industrial Base Authorities The following discussion surveys selected industrial base authorities that are fundamental to DOD stewardship of the NTIB. Industrial Base Fund 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. Defense Production Act (DPA) of 1950 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: * Title I: Priorities and Allocations, which allows the President to require persons (including businesses and corporations) to prioritize and accept contracts for materials and services as necessary to promote the national defense. igross.gov

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