Sec. 803. Improving implementation of policy pertaining to the national technology and industrial base
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In developing the strategy required by section 2501 of title 10, United States Code, carrying out the analysis of the national technology and industrial base required by section 2503 of such title, and performing the periodic assessments required under section 2505 of such title, the Secretary of Defense shall, in consultation with the Under Secretary of Defense for Acquisition and Sustainment and the Under Secretary of Research and Engineering, assess the research and development, manufacturing, and production capabilities of entities within the United States and non-United States members of the national technology and industrial base as well as other friendly nations.
The assessment shall include identification of specific technologies, companies, laboratories, and factories of or located in the United States and the non-United States members of the national technology and industrial base of potential value to current and future Department of Defense plans and programs. Consistent with section 2440 of title 10, United States Code, the Under Secretary of Defense for Acquisition and Sustainment shall develop and promulgate to the service and command acquisition executives, the heads of the appropriate defense agencies and field activities, and relevant program managers acquisition policy and guidance germane to the use of the research and development, manufacturing, and production capabilities identified pursuant to paragraph (1)(B) and the technologies, companies, laboratories, and factories in specific Department of Defense research and development, international cooperative research, procurement, and sustainment activities.
Section 2350a(a)(2) of title 10, United States Code, is amended by adding at the end the following new subparagraph: A nation in the National Technology and Industrial Base, as defined by section 2500 of title 10, United States Code. . Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall revise the Department of Defense Supplement to the Federal Acquisition Regulation to conform with subparagraph
(F)of section 2350a(a)(2) of title 10, United States Code, as added by paragraph (1). Section 2502 of title 10, United States Code, is amended by inserting after subsection
(d)the following new subsection: The Chairman of the National Defense Technology and Industrial Base Council shall work with the equivalent designees in the countries that comprise the national technology and industrial base to establish the National Technology and Industrial Base Regulatory Council. The National Technology and Industrial Base Regulatory Council shall meet biannually to harmonize respective policies and regulations, and to propose new legislation and regulations that increase the integration between the policies, persons, and organizations comprising the national technology and industrial base. The National Technology and Industrial Base Regulatory Council shall— address and review issues related to industrial security, supply chain security, cybersecurity, regulating foreign direct investment and foreign ownership, control and influence mitigation, market research, technology assessment, and research cooperation within public and private research and development organizations and universities, technology and export control measures, acquisition processes and oversight, and management best practices; and establish a mechanism for national technology and industrial base members to raise disputes that arise within the national technology and industrial base at a government-to-government level. . The Secretary of Defense shall establish a process to consider the inclusion of additional member nations in the national technology and industrial base. The process developed under paragraph
(1)shall include— analysis of the national security costs and benefits to the United States and allies of the inclusion of such additional member nation in the national technology and industrial base; analysis of the economic costs and benefits to entities within the United States and allies of the inclusion of such additional member nation into the national technology and industrial base, including an assessment of— specific shortfalls in the technological and industrial capacities of current member nations of the national technology and industrial base that would be addressed by inclusion of such additional member nation; and specific areas in the industrial bases of current member nations of the national technology and industrial base that would likely be impacted by additional competition if such additional nation were included in the national technology and industrial base; and analysis of other factors as determined relevant by the Secretary. The Secretary of Defense may submit legislative proposals to Congress to add new nations to the national technology and industrial base. Proposals submitted pursuant to subparagraph
(A)shall include the following elements: A summary of the analyses performed pursuant to subsection (d)(2). A set of metrics to assess the national security and economic benefits that such inclusion is expected to accrue to entities within the United States and allied nations. Not later than 540 days after the date of the enactment of this Act, the Secretary shall submit to the congressional defense committees a report with recommendations regarding whether to include in the national technology and industrial base each country with which the United States maintains a mutual defense treaty, a reciprocal defense procurement agreement, or other defense cooperation agreement. The report shall be based on assessments conducted using the process established under paragraph
(1)and shall include, for each country recommended for inclusion, the information specified in paragraph (3)(B).