Sec. 402. Administration of the industrial expansion program
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/bill/118/s/5618/is/section-402A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Secretary of Defense shall establish an industrial expansion program that funds activities under subsection
(b)according to the prioritization of property or services under subsection (c). The industrial expansion program established under subsection
(a)shall include the following activities: The development, updating, or refinement of military specifications, to include military details, military performance specifications, and technical publications, and test procedures. Activities associated with the mitigation of diminishing manufacturing sources and material shortages. Reverse engineering or re-engineering property to create a technical data package or manufacturing capabilities. Review and validation of technical data rights, ordering, inspection, and enforcement, including the challenge of improper markings and rights assertions. Qualification, certification, testing, and associated oversight. Advertising, loaning, or transferring required replenishment parts or data to potential sources of supply. Procurement of organic equipment and development of organic information systems associated with activities described in paragraphs
(1)through
(6)that support capabilities described under section 2464 of title 10, United States Code. Life-of-type buys if there is reasonable expectation that a manufacturing source will have to be created and qualified within the next three years. The Secretary of Defense shall ensure that funding for activities under subsection
(b)shall be prioritized for the following needs: Shortages in sustainment impacting a system’s mission capable rates below required objectives. Items that are sequence critical or on the driving path for production schedules. Items that have no qualified sources of supply. Items for which a contracting officer cannot ascertain a fair and reasonable price, or for which a contractor has refused to provide cost or pricing data. Items required to retain core logistics capabilities. Items identified by combatant commanders as critical for point-of-use manufacturing under conditions of contested logistics. The Department of Defense shall expend in connection with the program required under subsection (a)— not less than 2 percent of its extramural procurement and sustainment budget in each of fiscal years 2026 and 2027; and not less than 3 percent of its extramural procurement and sustainment budget in fiscal year 2028 and each fiscal year thereafter. The requirements, approvals, and order of preference in subpart 217.75 of the Defense Federal Acquisition Regulation Supplement and related procedures and guidance shall not apply. The prototype authority under section 4022 of title 10, United States Code, shall be the preferred mechanism for procuring activities under the program required under subsection (a), including with respect to a transition to production. In this section: The term extramural budget means the sum of the total obligations minus amounts obligated for such activities by employees of the agency in or through Government-owned, Government-operated facilities, except that for the Department of Energy it shall not include amounts obligated for atomic energy defense programs solely for weapons activities or for naval reactor programs. The term reverse engineering means a process by which parts are examined and analyzed to determine how they were manufactured, for the purpose of developing a complete technical data package, typically for purposes of enabling manufacture of an item by new sources.