
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document affected by Public Law 107-107 Section 251-253]
[Document affected by Public Law 107-107 Section 251-253]
[CITE: 10USC2501]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
 CHAPTER 148--NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE, DEFENSE 
                  REINVESTMENT, AND DEFENSE CONVERSION
 
                  SUBCHAPTER II--POLICIES AND PLANNING
 
Sec. 2501. National security objectives concerning national 
        technology and industrial base
        
    (a) National Security Objectives for National Technology and 
Industrial Base.--It is the policy of Congress that the national 
technology and industrial base be capable of meeting the following 
national security objectives:
        (1) Supplying and equipping the force structure of the armed 
    forces that is necessary to achieve--
            (A) the objectives set forth in the national security 
        strategy report submitted to Congress by the President pursuant 
        to section 108 of the National Security Act of 1947 (50 U.S.C. 
        404a);
            (B) the policy guidance of the Secretary of Defense provided 
        pursuant to section 113(g) of this title; and
            (C) the future-years defense program submitted to Congress 
        by the Secretary of Defense pursuant to section 221 of this 
        title.

        (2) Sustaining production, maintenance, repair, and logistics 
    for military operations of various durations and intensity.
        (3) Maintaining advanced research and development activities to 
    provide the armed forces with systems capable of ensuring 
    technological superiority over potential adversaries.
        (4) Reconstituting within a reasonable period the capability to 
    develop and produce supplies and equipment, including 
    technologically advanced systems, in sufficient quantities to 
    prepare fully for a war, national emergency, or mobilization of the 
    armed forces before the commencement of that war, national 
    emergency, or mobilization.
        (5) Providing for the development, manufacture, and supply of 
    items and technologies critical to the production and sustainment of 
    advanced military weapon systems within the national technology and 
    industrial base.

    (b) Civil-Military Integration Policy.--It is the policy of Congress 
that the United States attain the national technology and industrial 
base objectives set forth in subsection (a) through acquisition policy 
reforms that have the following objectives:
        (1) Relying, to the maximum extent practicable, upon the 
    commercial national technology and industrial base that is required 
    to meet the national security needs of the United States.
        (2) Reducing the reliance of the Department of Defense on 
    technology and industrial base sectors that are economically 
    dependent on Department of Defense business.
        (3) Reducing Federal Government barriers to the use of 
    commercial products, processes, and standards.

(Added Pub. L. 102-484, div. D, title XLII, Sec. 4211, Oct. 23, 1992, 
106 Stat. 2662; amended Pub. L. 103-35, title II, Sec. 201(c)(7), May 
31, 1993, 107 Stat. 98; Pub. L. 103-160, div. A, title XI, 
Sec. 1182(a)(10), title XIII, Sec. 1313, Nov. 30, 1993, 107 Stat. 1771, 
1786; Pub. L. 104-106, div. A, title X, Sec. 1081(a), Feb. 10, 1996, 110 
Stat. 452; Pub. L. 104-201, div. A, title VIII, Sec. 829(a), Sept. 23, 
1996, 110 Stat. 2612.)


                            Prior Provisions

    A prior section 2501, added Pub. L. 100-456, div. A, title VIII, 
Sec. 821(b)(1)(B), Sept. 29, 1988, 102 Stat. 2014, related to 
centralized guidance, analysis, and planning, prior to repeal by Pub. L. 
102-484, Sec. 4202(a).
    Another prior section 2501 was renumbered section 2533 of this 
title.


                               Amendments

    1996--Pub. L. 104-106, Sec. 1081(a)(2), substituted ``National 
security objectives concerning national technology and industrial base'' 
for ``Congressional defense policy concerning national technology and 
industrial base, reinvestment, and conversion'' as section catchline.
    Subsec. (a). Pub. L. 104-106, Sec. 1081(a)(1)(A)(i), substituted 
``National Security'' for ``Defense Policy'' in heading.
    Subsec. (a)(5). Pub. L. 104-201 added par. (5).
    Pub. L. 104-106, Sec. 1081(a)(1)(A)(ii), struck out par. (5) which 
read as follows: ``Furthering the missions of the Department of Defense 
through the support of policy objectives and programs relating to the 
defense reinvestment, diversification, and conversion objectives 
specified in subsection (b).''
    Subsecs. (b), (c). Pub. L. 104-106, Sec. 1081(a)(1)(B), (C), 
redesignated subsec. (c) as (b) and struck out former subsec. (b) which 
stated policy objectives of Congress relating to defense reinvestment, 
diversification, and conversion.
    1993--Subsec. (a)(1)(A). Pub. L. 103-35 substituted ``section 108'' 
for ``section 104''.
    Subsec. (a)(5). Pub. L. 103-160, Sec. 1313, added par. (5).
    Subsec. (b)(2). Pub. L. 103-160, Sec. 1182(a)(10), substituted 
``that, by reducing the public sector demand for capital, increases the 
amount of capital available'' for ``and thereby free up capital''.


                Air Force Science and Technology Planning

    Pub. L. 106-398, Sec. 1 [[div. A], title II, Sec. 252], Oct. 30, 
2000, 114 Stat. 1654, 1654A-46, provided that:
    ``(a) Requirement for Review.--The Secretary of the Air Force shall 
conduct a review of the long-term challenges and short-term objectives 
of the Air Force science and technology programs. The Secretary shall 
complete the review not later than one year after the date of the 
enactment of this Act [Oct. 30, 2000].
    ``(b) Matters To Be Reviewed.--The review shall include the 
following:
        ``(1) An assessment of the budgetary resources that are being 
    used for fiscal year 2001 for addressing the long-term challenges 
    and the short-term objectives of the Air Force science and 
    technology programs.
        ``(2) The budgetary resources that are necessary to address 
    those challenges and objectives adequately.
        ``(3) A course of action for each projected or ongoing Air Force 
    science and technology program that does not address either the 
    long-term challenges or the short-term objectives.
        ``(4) The matters required under subsection (c)(5) and (d)(6).
    ``(c) Long-Term Challenges.--(1) The Secretary of the Air Force 
shall establish an integrated product team to identify high-risk, high-
payoff challenges that will provide a long-term focus and motivation for 
the Air Force science and technology programs over the next 20 to 50 
years following the enactment of this Act [Oct. 30, 2000]. The 
integrated product team shall include representatives of the Office of 
Scientific Research and personnel from the Air Force Research 
Laboratory.
    ``(2) The team shall solicit views from the entire Air Force science 
and technology community on the matters under consideration by the team.
    ``(3) The team--
        ``(A) shall select for consideration science and technology 
    challenges that involve--
            ``(i) compelling requirements of the Air Force;
            ``(ii) high-risk, high-payoff areas of exploration; and
            ``(iii) very difficult, but probably achievable, results; 
        and
        ``(B) should not select a linear extension of any ongoing Air 
    Force science and technology program for consideration as a science 
    and technology challenge under subparagraph (A).
    ``(4) The Deputy Assistant Secretary of the Air Force for Science, 
Technology, and Engineering shall designate a technical coordinator and 
a management coordinator for each science and technology challenge 
identified pursuant to this subsection. Each technical coordinator shall 
have sufficient expertise in fields related to the challenge to be able 
to identify other experts in such fields and to affirm the credibility 
of the challenge. The coordinator for a science and technology challenge 
shall conduct workshops within the relevant scientific and technological 
community to obtain suggestions for possible approaches to addressing 
the challenge and to identify ongoing work that addresses the challenge, 
deficiencies in current work relating to the challenge, and promising 
areas of research.
    ``(5) In carrying out subsection (a), the Secretary of the Air Force 
shall review the science and technology challenges identified pursuant 
to this subsection and, for each such challenge, at a minimum--
        ``(A) consider the results of the workshops conducted pursuant 
    to paragraph (4); and
        ``(B) identify any work not currently funded by the Air Force 
    that should be performed to meet the challenge.
    ``(d) Short-Term Objectives.--(1) The Secretary of the Air Force 
shall establish a task force to identify short-term technological 
objectives of the Air Force science and technology programs. The task 
force shall be chaired by the Deputy Assistant Secretary of the Air 
Force for Science, Technology, and Engineering and shall include 
representatives of the Chief of Staff of the Air Force and the specified 
combatant commands of the Air Force.
    ``(2) The task force shall solicit views from the entire Air Force 
requirements community, user community, and acquisition community.
    ``(3) The task force shall select for consideration short-term 
objectives that involve--
        ``(A) compelling requirements of the Air Force;
        ``(B) support in the user community; and
        ``(C) likely attainment of the desired benefits within a five-
    year period.
    ``(4) The Deputy Assistant Secretary of the Air Force for Science, 
Technology, and Engineering shall establish an integrated product team 
for each short-term objective identified pursuant to this subsection. 
Each integrated product team shall include representatives of the 
requirements community, the user community, and the science and 
technology community with relevant expertise.
    ``(5) The integrated product team for a short-term objective shall 
be responsible for--
        ``(A) identifying, defining, and prioritizing the enabling 
    capabilities that are necessary for achieving the objective;
        ``(B) identifying deficiencies in the enabling capabilities that 
    must be addressed if the short-term objective is to be achieved; and
        ``(C) working with the Air Force science and technology 
    community to identify science and technology projects and programs 
    that should be undertaken to eliminate each deficiency in an 
    enabling capability.
    ``(6) In carrying out subsection (a), the Secretary of the Air Force 
shall review the short-term science and technology objectives identified 
pursuant to this subsection and, for each such objective, at a minimum--
        ``(A) consider the work of the integrated product team conducted 
    pursuant to paragraph (5); and
        ``(B) identify the science and technology work of the Air Force 
    that should be undertaken to eliminate each deficiency in enabling 
    capabilities that is identified by the integrated product team 
    pursuant to subparagraph (B) of that paragraph.
    ``(e) Comptroller General Review.--(1) Not later than 90 days after 
the Secretary of the Air Force completes the review required by 
subsection (a), the Comptroller General shall submit to Congress a 
report on the results of the review. The report shall include the 
Comptroller General's assessment regarding the extent to which the 
review was conducted in compliance with the requirements of this 
section.
    ``(2) Immediately upon completing the review required by subsection 
(a), the Secretary of Defense shall notify the Comptroller General of 
the completion of the review. For the purposes of paragraph (1), the 
date of the notification shall be considered the date of the completion 
of the review.''


 Report by Under Secretary of Defense for Acquisition, Technology, and 
                                Logistics

    Pub. L. 106-65, div. A, title II, Sec. 243, Oct. 5, 1999, 113 Stat. 
551, provided that:
    ``(a) Requirement.--The Under Secretary of Defense for Acquisition, 
Technology, and Logistics shall submit to the congressional defense 
committees [Committees on Armed Services and Appropriations of the 
Senate and the House of Representatives] a report on the actions that 
are necessary to promote the research base and technological development 
that will be needed for ensuring that the Armed Forces have the military 
capabilities that are necessary for meeting national security 
requirements over the next two to three decades.
    ``(b) Content.--The report shall include the actions that have been 
taken or are planned to be taken within the Department of Defense to 
ensure that--
        ``(1) the Department of Defense laboratories place an 
    appropriate emphasis on revolutionary changes in military operations 
    and the new technologies that will be necessary to support those 
    operations;
        ``(2) the Department helps sustain a high-quality national 
    research base that includes organizations attuned to the needs of 
    the Department, the fostering and creation of revolutionary 
    technologies useful to the Department, and the capability to 
    identify opportunities for new military capabilities in emerging 
    scientific knowledge;
        ``(3) the Department can identify, provide appropriate funding 
    for, and ensure the coordinated development of joint technologies 
    that will serve the needs of more than one of the Armed Forces;
        ``(4) the Department can identify militarily relevant 
    technologies that are developed in the private sector, rapidly 
    incorporate those technologies into defense systems, and effectively 
    utilize technology transfer processes;
        ``(5) the Department can effectively and efficiently manage the 
    transition of new technologies from the applied research and 
    advanced technological development stage through the product 
    development stage in a manner that ensures that maximum advantage is 
    obtained from advances in technology; and
        ``(6) the Department's educational institutions for the officers 
    of the uniformed services incorporate into their officer education 
    and training programs, as appropriate, materials necessary to ensure 
    that the officers have the familiarity with the processes, advances, 
    and opportunities in technology development that is necessary for 
    making decisions that ensure the superiority of United States 
    defense technology in the future.''


       Sense of Congress on Defense Science and Technology Program

    Pub. L. 106-65, div. A, title II, Sec. 212, Oct. 5, 1999, 113 Stat. 
542, provided that:
    ``(a) Failure To Comply With Funding Objective.--It is the sense of 
Congress that the Secretary of Defense has failed to comply with the 
funding objective for the Defense Science and Technology Program, 
especially the Air Force Science and Technology Program, as stated in 
section 214(a) of the Strom Thurmond National Defense Authorization Act 
for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 1948) [set out as a 
note below], thus jeopardizing the stability of the defense technology 
base and increasing the risk of failure to maintain technological 
superiority in future weapon systems.
    ``(b) Funding Objective.--It is further the sense of Congress that, 
for each of the fiscal years 2001 through 2009, it should be an 
objective of the Secretary of Defense to increase the budget for the 
Defense Science and Technology Program, including the science and 
technology program within each military department, for the fiscal year 
over the budget for that program for the preceding fiscal year by a 
percent that is at least two percent above the rate of inflation as 
determined by the Office of Management and Budget.
    ``(c) Certification.--If the proposed budget for a fiscal year 
covered by subsection (b) fails to comply with the objective set forth 
in that subsection--
        ``(1) the Secretary of Defense shall submit to Congress--
            ``(A) the certification of the Secretary that the budget 
        does not jeopardize the stability of the defense technology base 
        or increase the risk of failure to maintain technological 
        superiority in future weapon systems; or
            ``(B) a statement of the Secretary explaining why the 
        Secretary is unable to submit such certification; and
        ``(2) the Defense Science Board shall, not more than 60 days 
    after the date on which the Secretary submits the certification or 
    statement under paragraph (1), submit to the Secretary and Congress 
    a report assessing the effect such failure to comply is likely to 
    have on defense technology and the national defense.''
    Pub. L. 105-261, div. A, title II, Sec. 214, Oct. 17, 1998, 112 
Stat. 1948, provided that:
    ``(a) Funding Requirements for the Defense Science and Technology 
Program Budget.--It is the sense of Congress that, for each of the 
fiscal years 2000 through 2008, it should be an objective of the 
Secretary of Defense to increase the budget for the Defense Science and 
Technology Program for the fiscal year over the budget for that program 
for the preceding fiscal year by a percent that is at least two percent 
above the rate of inflation as determined by the Office of Management 
and Budget.
    ``(b) Guidelines for the Defense Science and Technology Program.--
        ``(1) Relationship of defense science and technology program to 
    university research.--It is the sense of Congress that the following 
    should be key objectives of the Defense Science and Technology 
    Program:
            ``(A) The sustainment of research capabilities in scientific 
        and engineering disciplines critical to the Department of 
        Defense.
            ``(B) The education and training of the next generation of 
        scientists and engineers in disciplines that are relevant to 
        future defense systems, particularly through the conduct of 
        basic research.
            ``(C) The continued support of the Defense Experimental 
        Program to Stimulate Competitive Research and research programs 
        at historically black colleges and universities and minority 
        institutions.
        ``(2) Relationship of the defense science and technology program 
    to commercial research and technology.--(A) It is the sense of 
    Congress that, in supporting projects within the Defense Science and 
    Technology Program, the Secretary of Defense should attempt to 
    leverage commercial research, technology, products, and processes 
    for the benefit of the Department of Defense.
        ``(B) It is the sense of Congress that funds made available for 
    projects and programs of the Defense Science and Technology Program 
    should be used only for the benefit of the Department of Defense, 
    which includes--
            ``(i) the development of technology that has only military 
        applications;
            ``(ii) the development of militarily useful, commercially 
        viable technology; and
            ``(iii) the adaptation of commercial technology, products, 
        or processes for military purposes.
        ``(3) Synergistic management of research and development.--It is 
    the sense of Congress that the Secretary of Defense should have the 
    flexibility to allocate a combination of funds available for the 
    Department of Defense for basic and applied research and for 
    advanced development to support any individual project or program 
    within the Defense Science and Technology Program, but such 
    flexibility should not change the allocation of funds in any fiscal 
    year among basic and applied research and advanced development.
        ``(4) Management of science and technology.--It is the sense of 
    Congress that--
            ``(A) management and funding for the Defense Science and 
        Technology Program for each military department should receive a 
        level of priority and leadership attention equal to the level 
        received by program acquisition, and the Secretary of each 
        military department should ensure that a senior official in the 
        department holds the appropriate title and responsibility to 
        ensure effective oversight and emphasis on science and 
        technology;
            ``(B) to ensure an appropriate long-term focus for 
        investments, a sufficient percentage of science and technology 
        funds should be directed toward new technology areas, and annual 
        reviews should be conducted for ongoing research areas to ensure 
        that those funded initiatives are either integrated into 
        acquisition programs or discontinued when appropriate;
            ``(C) the Secretary of each military department should take 
        appropriate steps to ensure that sufficient numbers of officers 
        and civilian employees in the department hold advanced degrees 
        in technical fields; and
            ``(D) of particular concern, the Secretary of the Air Force 
        should take appropriate measures to ensure that sufficient 
        numbers of scientists and engineers are maintained to address 
        the technological challenges faced in the areas of air, space, 
        and information technology.
    ``(c) Study.--
        ``(1) Requirement.--The Secretary of Defense, in cooperation 
    with the National Research Council of the National Academy of 
    Sciences, shall conduct a study on the technology base of the 
    Department of Defense.
        ``(2) Matters covered.--The study shall--
            ``(A) result in recommendations on the minimum requirements 
        for maintaining a technology base that is sufficient, based on 
        both historical developments and future projections, to project 
        superiority in air and space weapons systems and in information 
        technology;
            ``(B) address the effects on national defense and civilian 
        aerospace industries and information technology of reducing 
        funding below the goal described in subsection (a); and
            ``(C) result in recommendations on the appropriate levels of 
        staff with baccalaureate, masters, and doctorate degrees, and 
        the optimal ratio of civilian and military staff holding such 
        degrees, to ensure that science and technology functions of the 
        Department of Defense remain vital.
        ``(3) Report.--Not later than 120 days after the date on which 
    the study required under paragraph (1) is completed, the Secretary 
    shall submit to Congress a report on the results of the study.
    ``(d) Definitions.--In this section:
        ``(1) The term `Defense Science and Technology Program' means 
    basic and applied research and advanced development.
        ``(2) The term `basic and applied research' means work funded in 
    program elements for defense research and development under 
    Department of Defense category 6.1 or 6.2.
        ``(3) The term `advanced development' means work funded in 
    program elements for defense research and development under 
    Department of Defense category 6.3.''


          Annual Joint Warfighting Science and Technology Plan

    Section 270 of Pub. L. 104-201, as amended by Pub. L. 106-65, div. 
A, title II, Sec. 242, title X, Sec. 1067(5), Oct. 5, 1999, 113 Stat. 
551, 774, provided that:
    ``(a) Annual Plan Required.--On March 1 of each year, the Secretary 
of Defense shall submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of Representatives a 
plan for ensuring that the science and technology program of the 
Department of Defense supports the development of the future joint 
warfighting capabilities identified as priority requirements for the 
Armed Forces.
    ``(b) Technology Area Review and Assessment.--With the submission of 
the plan under subsection (a) each year, the Secretary shall also submit 
to the committees referred to in that subsection a summary of each 
technology area review and assessment conducted by the Department of 
Defense in support of that plan.''


  Cost Reimbursement Rules for Indirect Costs Attributable to Private 
                   Sector Work of Defense Contractors

    Section 808 of Pub. L. 104-106 authorized Secretary of Defense to 
enter into agreements with defense contractors under which certain cost 
reimbursement rules would be applied and required submission of report 
to congressional defense committees not later than one year after Feb. 
10, 1996, prior to repeal by Pub. L. 105-85, div. A, title X, 
Sec. 1027(d), Nov. 18, 1997, 111 Stat. 1880. See section 7315 of this 
title.


      Documentation for Awards for Cooperative Agreements or Other 
       Transactions Under Defense Technology Reinvestment Programs

    Pub. L. 103-337, div. A, title XI, Sec. 1118, Oct. 5, 1994, 108 
Stat. 2870, provided that: ``At the time of the award for a cooperative 
agreement or other transaction under a program carried out under chapter 
148 of title 10, United States Code, the head of the agency concerned 
shall include in the file pertaining to such agreement or transaction a 
brief explanation of the manner in which the award advances and enhances 
a particular national security objective set forth in section 2501(a) of 
such title or a particular policy objective set forth in [former] 
section 2501(b) of such title.''


 Reports on Defense Conversion, Reinvestment, and Transition Assistance 
                                Programs

    Section 1303 of Pub. L. 103-160 provided that:
    ``(a) Report Required.--During each of the fiscal years 1994, 1995, 
and 1996, the Secretary of Defense shall prepare a report that assesses 
the effectiveness of all defense conversion, reinvestment, and 
transition assistance programs (as defined in section 1302 [107 Stat. 
1783]) during the preceding fiscal year.
    ``(b) Contents of Report.--To the maximum extent practicable, each 
report required under subsection (a) shall include an assessment of each 
of the following:
        ``(1) The status of the obligation of appropriated funds for 
    each defense conversion, reinvestment, and transition assistance 
    program.
        ``(2) With respect to each component of the dual-use partnership 
    program element specified in paragraphs (1) through (10) of section 
    1311(b) [107 Stat. 1785]--
            ``(A) the extent to which the component meets the objectives 
        set forth in section 2501 of title 10, United States Code;
            ``(B) the technology benefits of the component to the 
        national technology and industrial base;
            ``(C) any evidence of commercialization of technologies 
        developed under the component;
            ``(D) the extent to which the investments under the 
        component have affected levels of employment;
            ``(E) the number of defense firms participating in 
        cooperative agreements or other arrangements under the 
        component;
            ``(F) the extent to which matching fund requirements of the 
        component were met by cash contributions by the non-Federal 
        Government participants;
            ``(G) the extent to which defense technology reinvestment 
        projects under the component have met milestones and financial 
        and technical requirements;
            ``(H) the extent to which the component is integrated with 
        technology programs conducted by other Federal agencies; and
            ``(I) the number of proposals under the component that were 
        received from small business concerns and the number of awards 
        made to small business concerns.
        ``(3) With respect to each personnel assistance program 
    conducted under subtitle C of this title [subtitle C, Secs. 1331-
    1339 of title XIII of div. A of Pub. L. 103-160, enacting sections 
    1152 and 1153 of this title, amending sections 1142, 1151, 1598, and 
    2410j of this title and sections 1551 and 1662d-1 of Title 29, 
    Labor, enacting provisions set out as notes under sections 1143, 
    1151, and 2701 of this title, repealing provisions set out as a note 
    under section 2701 of this title, and amending provisions set out as 
    a note under section 1143 of this title], title XLIV of the Defense 
    Conversion, Reinvestment, and Transition Assistance Act of 1992 
    (division D of Public Law 102-484; 106 Stat. 2701) [see Tables for 
    classification], and the amendments made by that subtitle or title--
            ``(A) the extent to which the program meets the objectives 
        set forth in section 2501(b) of title 10, United States Code;
            ``(B) the number of individuals eligible for transition 
        assistance under the program;
            ``(C) the number of individuals directly receiving 
        transition assistance under the program and the projected number 
        of individuals who will directly receive transition assistance;
            ``(D) in the case of a job training program, an estimate of 
        the number of individuals who have secured permanent employment 
        as a result of participation in the program; and
            ``(E) the extent to which the transition assistance 
        activities under the program duplicated other transition 
        assistance provided or administered outside the Department of 
        Defense.
    ``(c) Submission of Report.--The report required under subsection 
(a) for a particular fiscal year shall be submitted to Congress at the 
same time that the Secretary of Defense submits the annual report 
required under section 113(c) of title 10, United States Code, for that 
fiscal year.''


                    National Shipbuilding Initiative

    Sections 1351 to 1354 of Pub. L. 103-160, as amended by Pub. L. 104-
201, div. A, title X, Sec. 1073(e)(1)(F), (2)(B), (3), Sept. 23, 1996, 
110 Stat. 2658, provided that:
``SEC. 1351. SHORT TITLE.
    ``This subtitle [subtitle D, Secs. 1351-1363 of title XIII of div. A 
of Pub. L. 103-160, enacting sections 1279d, 1279e, and 1280a of the 
Appendix to Title 46, Shipping, amending section 31326 of Title 46 and 
sections 1271, 1273, 1274, and 1274a of the Appendix to Title 46, and 
enacting provisions set out as notes under sections 1279b and 1279d of 
the Appendix to Title 46] may be cited as the `National Shipbuilding and 
Shipyard Conversion Act of 1993'.
``SEC. 1352. NATIONAL SHIPBUILDING INITIATIVE.
    ``(a) Establishment of Program.--There shall be a National 
Shipbuilding Initiative program, to be carried out to support the 
industrial base for national security objectives by assisting in the 
reestablishment of the United States shipbuilding industry as a self-
sufficient, internationally competitive industry.
    ``(b) Administering Departments.--The program shall be carried out--
        ``(1) by the Secretary of Defense, with respect to programs 
    under the jurisdiction of the Secretary of Defense; and
        ``(2) by the Secretary of Transportation, with respect to 
    programs under the jurisdiction of the Secretary of Transportation.
    ``(c) Program Elements.--The National Shipbuilding Initiative shall 
consist of the following program elements:
        ``(1) Financial incentives program.--A financial incentives 
    program to provide loan guarantees to initiate commercial ship 
    construction for domestic and export sales, encourage shipyard 
    modernization, and support increased productivity.
        ``(2) Technology development program.--A technology development 
    program, to be carried out within the Department of Defense by the 
    Defense Advanced Research Projects Agency, to improve the technology 
    base for advanced shipbuilding technologies and related dual-use 
    technologies through activities including a development program for 
    innovative commercial ship design and production processes and 
    technologies.
        ``(3) Navy's affordability through commonality program.--
    Enhanced support by the Secretary of Defense for the shipbuilding 
    program of the Department of the Navy known as the Affordability 
    Through Commonality (ATC) program, to include enhanced support (A) 
    for the development of common modules for military and commercial 
    ships, and (B) to foster civil-military integration into the next 
    generation of Naval surface combatants.
        ``(4) Navy's manufacturing technology and technology base 
    programs.--Enhanced support by the Secretary of Defense for, and 
    strengthened funding for, that portion of the Manufacturing 
    Technology program of the Navy, and that portion of the Technology 
    Base program of the Navy, that are in the areas of shipbuilding 
    technologies and ship repair technologies.
``SEC. 1353. DEPARTMENT OF DEFENSE PROGRAM MANAGEMENT THROUGH DEFENSE 
        ADVANCED RESEARCH PROJECTS AGENCY.
    ``The Secretary of Defense shall designate the Defense Advanced 
Research Projects Agency of the Department of Defense as the lead agency 
of the Department of Defense for activities of the Department of Defense 
which are part of the National Shipbuilding Initiative program. Those 
activities shall be carried out as part of defense conversion activities 
of the Department of Defense.
``SEC. 1354. DEFENSE ADVANCED RESEARCH PROJECTS AGENCY FUNCTIONS AND 
        MINIMUM FINANCIAL COMMITMENT OF NON-FEDERAL GOVERNMENT 
        PARTICIPANTS.
    ``(a) DARPA Functions.--The Secretary of Defense, acting through the 
Director of the Defense Advanced Research Projects Agency, shall carry 
out the following functions with respect to the National Shipbuilding 
Initiative program:
        ``(1) Consultation with the Maritime Administration, the Office 
    of Economic Adjustment, the National Economic Council, the National 
    Shipbuilding Research Project, the Coast Guard, the National Oceanic 
    and Atmospheric Administration, appropriate naval commands and 
    activities, and other appropriate Federal agencies on--
            ``(A) development and transfer to the private sector of 
        dual-use shipbuilding technologies, ship repair technologies, 
        and shipbuilding management technologies;
            ``(B) assessments of potential markets for maritime 
        products; and
            ``(C) recommendation of industrial entities, partnerships, 
        joint ventures, or consortia for short- and long-term 
        manufacturing technology investment strategies.
        ``(2) Funding and program management activities to develop 
    innovative design and production processes and the technologies 
    required to implement those processes.
        ``(3) Facilitation of industry and Government technology 
    development and technology transfer activities (including education 
    and training, market assessments, simulations, hardware models and 
    prototypes, and national and regional industrial base studies).
        ``(4) Integration of promising technology advances made in the 
    Technology Reinvestment Program of the Defense Advanced Research 
    Projects Agency into the National Shipbuilding Initiative to effect 
    full defense conversion potential.
    ``(b) Financial Commitment of Non-Federal Government Participants.--
        ``(1) Maximum department of defense share.--The Secretary of 
    Defense shall ensure that the amount of funds provided by the 
    Secretary to a non-Federal government participant does not exceed 50 
    percent of the total cost of technology development and technology 
    transfer activities.
        ``(2) Regulations.--The Secretary may prescribe regulations to 
    provide for consideration of in-kind contributions by non-Federal 
    Government participants in a partnership for the purpose of 
    calculating the share of the partnership costs that has been or is 
    being undertaken by such participants. In prescribing the 
    regulations, the Secretary may determine that a participant that is 
    a small business concern may use funds received under the Small 
    Business Innovation Research Program or the Small Business 
    Technology Transfer Program to help pay the costs of partnership 
    activities. Any such funds so used may be included in calculating 
    the amount of the financial commitment undertaken by the non-Federal 
    Government participants unless the Secretary determines that the 
    small business concern has not made a significant equity 
    contribution in the program from non-Federal sources.''


         Armament Retooling and Manufacturing Support Initiative

    Subtitle H of title I of div. A of Pub. L. 102-484, as amended by 
Pub. L. 103-35, title II, Sec. 202(a)(1), May 31, 1993, 107 Stat. 100; 
Pub. L. 103-337, div. A, title XI, Sec. 1141(a), (b), Oct. 5, 1994, 108 
Stat. 2879; Pub. L. 104-201, div. A, title I, Sec. 143, Sept. 23, 1996, 
110 Stat. 2449; Pub. L. 105-261, div. A, title I, Sec. 115, Oct. 17, 
1998, 112 Stat. 1939; Pub. L. 106-65, div. A, title I, Sec. 116, Oct. 5, 
1999, 113 Stat. 533, known as the ``Armament Retooling and Manufacturing 
Support Act of 1992'', authorized the Secretary of the Army, during 
fiscal years 1993 through 2001, to carry out the Armament Retooling and 
Manufacturing Support Initiative, prior to repeal by Pub. L. 106-398, 
Sec. 1 [[div. A], title III, Sec. 344(d)], Oct. 30, 2000, 114 Stat. 
1654, 1654A-71.


  Implementation of Requirements for Assessment, Planning, and Analysis

    Section 4218 of Pub. L. 102-484 related to collection of 
information, completion of assessments, and issuance of plans required 
by this subchapter, prior to repeal by Pub. L. 104-201, div. A, title 
VIII, Sec. 829(h), Sept. 23, 1996, 110 Stat. 2614.


       Industrial Diversification Planning for Defense Contractors

    Section 4239 of Pub. L. 102-484 provided that: ``Not later than 120 
days after the date of enactment of this Act [Oct. 23, 1992], the 
Secretary of Defense shall prescribe regulations to encourage defense 
contractors to engage in industrial diversification planning.''


Notice to Contractors and Employees Upon Proposed and Actual Termination 
           or Substantial Reduction in Major Defense Programs

    Section 4471 of Pub. L. 102-484, as amended by Pub. L. 103-160, div. 
A, title XIII, Sec. 1372, Nov. 20, 1993, 107 Stat. 1817; Pub. L. 103-
337, div. A, title XI, Sec. 1142, Oct. 5, 1994, 108 Stat. 2881; Pub. L. 
104-201, div. A, title VIII, Sec. 824, Sept. 23, 1996, 110 Stat. 2610; 
Pub. L. 105-85, div. A, title X, Sec. 1073(d)(2)(C), Nov. 18, 1997, 111 
Stat. 1905; Pub. L. 105-277, div. A, Sec. 101(f) [title VIII, 
Sec. 405(d)(7)(C), (f)(6)(C)], Oct. 21, 1998, 112 Stat. 2681-337, 2681-
419, 2681-430, provided that:
    ``(a) Notice Requirement After Enactment of Appropriations Act.--
Each year, not later than 60 days after the date of the enactment of an 
Act appropriating funds for the military functions of the Department of 
Defense, the Secretary of Defense, in accordance with regulations 
prescribed by the Secretary--
        ``(1) shall identify each contract (if any) under major defense 
    programs of the Department of Defense that will be terminated or 
    substantially reduced as a result of the funding levels provided in 
    that Act; and
        ``(2) shall ensure that notice of the termination of, or 
    substantial reduction in, the funding of the contract is provided--
            ``(A) directly to the prime contractor under the contract; 
        and
            ``(B) directly to the Secretary of Labor.
    ``(b) Notice to Subcontractors.--Not later than 60 days after the 
date on which the prime contractor for a contract under a major defense 
program receives notice under subsection (a), the prime contractor 
shall--
        ``(1) provide notice of that termination or substantial 
    reduction to each person that is a first-tier subcontractor under 
    that prime contract for subcontracts in an amount not less than 
    $500,000; and
        ``(2) require that each such subcontractor--
            ``(A) provide such notice to each of its subcontractors for 
        subcontracts in an amount in excess of $100,000; and
            ``(B) impose a similar notice and pass through requirement 
        to subcontractors in an amount in excess of $100,000 at all 
        tiers.
    ``(c) Contractor Notice to Employees and State Dislocated Worker 
Unit.--Not later than two weeks after a defense contractor receives 
notice under subsection (a), the contractor shall provide notice of such 
termination or substantial reduction to--
        ``(1)(A) each representative of employees whose work is directly 
    related to the defense contract under such program and who are 
    employed by the defense contractor; or
        ``(B) if there is no such representative at that time, each such 
    employee; and
        ``(2) the State or entity designated by the State to carry out 
    rapid response activities under section 134(a)(2)(A) of the 
    Workforce Investment Act of 1998 [29 U.S.C. 2864(a)(2)(A)], and the 
    chief elected official of the unit of general local government 
    within which the adverse effect may occur.
    ``(d) Constructive Notice.--The notice of termination of, or 
substantial reduction in, a defense contract provided under subsection 
(c)(1) to an employee of a contractor shall have the same effect as a 
notice of termination to such employee for the purposes of determining 
whether such employee is eligible to participate in employment and 
training activities carried out under title I of the Workforce 
Investment Act of 1998 [29 U.S.C. 2801 et seq.], except in a case in 
which the employer has specified that the termination of, or substantial 
reduction in, the contract is not likely to result in plant closure or 
mass layoff.
    ``(e) Loss of Eligibility.--An employee who receives a notice of 
withdrawal or cancellation of the termination of, or substantial 
reduction in, contract funding shall not be eligible, on the basis of 
any related reduction in funding under the contract, to participate in 
employment and training activities under title I of the Workforce 
Investment Act of 1998 [29 U.S.C. 2801 et seq.], beginning on the date 
on which the employee receives the notice.
    ``(f) Definitions.--For purposes of this section:
        ``(1) The term `major defense program' means a program that is 
    carried out to produce or acquire a major system (as defined in 
    section 2302(5) of title 10, United States Code).
        ``(2) The terms `substantial reduction' and `substantially 
    reduced', with respect to a defense contract under a major defense 
    program, mean a reduction of 25 percent or more in the total dollar 
    value of the funds obligated by the contract.''

                  Section Referred to in Other Sections

    This section is referred to in sections 2198, 2500, 2502, 2505, 
2506, 2511, 2514, 2515, 2519, 2521, 2540, 2541, 2709, 7315 of this 
title.
