Sec. 879. Civil Reserve Manufacturing Network

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Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall establish in the Defense Industrial Resilience Consortium established under section 1842 a working group to support the establishment of the Civil Reserve Manufacturing Network to preserve the military advantage and bolster the defense of the United States and broaden the domestic industrial base. The working group established under paragraph

(1)shall— identify issues with respect to the CRMN; develop recommendations for establishment and operation of the CRMN, including recommendations for— resolving the issues identified under subparagraph (A); and incentives to encourage participation in the CRMN; submit to the Secretary the issues identified under subparagraph

(A)and the recommendations developed under subparagraph (B). In carrying out the responsibilities of the working group established under paragraph (1), the working group shall collaborate with relevant entities, including government, industry, and academia. Not later than 120 days after the date of enactment of this Act, the Secretary shall submit to the congressional defense committees a plan for the establishment of the CRMN program that includes— a plan to develop a CRMN comprised of commercial advanced or adaptive manufacturing capabilities or facilities that can rapidly transition from the production of commercial products for commercial customers to the production of products required by the Department of Defense; and an identification of any statutory or regulatory constraints on the establishment or effectiveness of the CRMN and recommendations to streamline the establishment of the CRMN, including any changes to existing authorities related to the use of public-private partnerships. In developing the plan required under paragraph (1), the Secretary shall, to the extent practicable, incorporate the recommendations of the working group established under subsection

(a)submitted to the Secretary under paragraph

(2)of such subsection. Not later than 270 days after the date of enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report on progress of the CRMN, including— an assessment of the benefits a factory-as-a-service model with respect to accelerating the timelines for the establishment of the CRMN, reducing the costs to the Government of operating the CRMN, minimizing obsolescence of commercial advanced or adaptive manufacturing capabilities or facilities that are part of the CRMN, and enabling the rapid scaling of the CRMN; an analysis of improvements in efficiency and cost reduction the Department of Defense may achieve without sacrificing performance, reliability, qualify, or safety from the use of advanced or adaptive manufacturing and application value engineering techniques under part 48 of the Federal Acquisition Regulation; an assessment of potential to improve supply chain resiliency through the acquisition by the Government of advanced or adaptive manufacturing hardware structures for use by system integrators; an identification of any statutory or regulatory constraints and recommendations to streamline the establishment of the CRMN, including any amendments to exiting authorities for public-private partnerships; an explanation of the progress on developing an incentive structure that would enable the success of the CRMN by sufficiently addressing the risk to commercial customers of CRMN participants of loss of production if such participants are required to shift production to meet the needs of the Department; a list of existing programs of the Department that are delayed or have cost overruns resulting from a lack of components due to shortages of required casting and forging capabilities of manufacturers, including— the name of the program or contract; the components that are delayed or contributing to such cost overruns; and whether such components could be produced through alternative means, including advanced or adaptive manufacturing; and a strategy to transition existing production approaches for the programs identified under paragraph

(6)to advanced or adaptive manufacturing. After the submission of the plan required under subsection (b)(1), the Secretary shall establish the CRMN program under which— the Secretary shall establish the CRMN; and advanced or adaptive manufacturers participate in the CRMN. Each participant shall enter into an agreement with the Secretary under which such participant shall, upon such terms and conditions as agreed to by the Secretary and the participant, rapidly transition the production facilities of such participant to begin production of products for the Department of Defense. Not later than one year after the date of enactment of this Act, the Secretary shall seek to enter into agreements with one or more advanced or adaptive manufacturers to participate in the CRMN under the program. The Secretary shall establish expedited procedures for qualifying participants to be eligible to supply products or services to the Department of Defense. Subject to the availability of appropriations, the Secretary shall award funding to participants for— expedited qualification and testing of products manufactured by the participant for use by the Department of Defense; and non-recurring engineering costs associated with the conversion of specifications of a traditionally manufactured product into an appropriate format for advanced or adaptive manufacturing. Not later than March 1, 2027, and annually thereafter for five years, the Secretary of Defense shall provide to the congressional defense committees a briefing on the progress of the establishment of the CRMN under the program. In this section: The term advanced or adaptive manufacturer means a manufacturer that uses advanced or adaptive manufacturing. The term advanced or adaptive manufacturing means manufacturing through the use of interconnected, advanced technologies throughout the design and manufacturing process that enables modular, adaptable, and efficient manufacturing, including software-controlled subtractive manufacturing, additive manufacturing, and powder bed fusion manufacturing. The term advanced or adaptive manufacturing hardware structure means hardware used in advanced or adaptive manufacturing for the positioning, mounting, or bracing of a product in the manufacturing process. The term CRMN means a network of manufacturers that have entered into an agreement with the Secretary under which the manufacturer agrees to rapidly transition the manufacturing facilities of such manufacturers that produce commercial products for purchasers other than the Department of Defense to the production of products for the Department of Defense. The term factory-as-a-service means a business model and technological framework that provides access to scalable and flexible manufacturing resources as service, enables rapid reconfiguration of production lines, and real-time collaboration across geographically dispersed facilities. The term participant means an advanced or adaptive manufacturer that is participating in the CRMN under the program. The term program means the program established under subsection (d)(1). The term Secretary means the Secretary of Defense. Section 3243 of title 10, United States Code, is amended— by redesignating subsections (e), (f), and

(g)as subsections (f), (g), and (h), respectively; and by inserting after subsection

(d)the following new subsection: The head of the agency shall establish a process to streamline qualification of sources who use advanced manufacturing techniques, including those using a digital adaptive production system. Once a source is qualified, the head of the agency shall not require additional qualification for sources or products produced unless material changes have been made to the manufacturing process. .