STRATEGY FOR SECURING THE DEFENSE SUPPLY CHAIN AND INDUSTRIAL BASE.

SEC. 852. STRATEGY FOR SECURING THE DEFENSE SUPPLY CHAIN AND INDUSTRIAL BASE.(a) Report Required.—The Secretary of Defense shall ensure that the annual report to Congress on the defense industrial base submitted for fiscal year 2012 pursuant to section 2504 of title 10, United States Code, includes a description of, and a status report on, the sector-by-sector, tier-by-tier assessment of the industrial base undertaken by the Department of Defense.(b) Contents of Report.—The report required by subsection (a) shall include, at a minimum, a description of the steps taken and planned to be taken—125 STAT. 1518(1) to identify current and emerging sectors of the defense industrial base that are critical to the national security of the United States;(2) in each sector, to identify items that are critical to military readiness, including key components, subcomponents, and materials;(3) to examine the structure of the industrial base, including the competitive landscape, relationships, risks, and opportunities within that structure;(4) to map the supply chain for critical items identified under paragraph (2) in a manner that provides the Department of Defense visibility from raw material to final products;(5) to perform a risk assessment of the supply chain for such critical items and conduct an evaluation of the extent to which—(A) the supply chain for such items is subject to disruption by factors outside the control of the Department of Defense; and(B) such disruption would adversely affect the ability of the Department of Defense to fill its national security mission.(c) Strategy Required.—Based on the findings from the sector-by-sector, tier-by-tier assessment, as described in the report required by subsection (a), the Secretary of Defense shall develop a defense supply chain and industrial base strategy to ensure the continued availability of items that are determined by the Secretary to be critical to military readiness and to be subject to significant supply chain risk. The strategy shall be based on a prioritized assessment of risks and challenges to the defense supply chain and industrial base and shall, at a minimum, address—(1) mitigation strategies needed to address any gaps or vulnerabilities in the relevant sectors of the defense industrial base;(2) the need for timely mobilization and capacity in such sectors of the defense industrial base; and(3) any other steps needed to foster and safeguard such sectors of the defense industrial base.(d) Follow-up Review.—The Secretary of Defense shall ensure that the annual report to Congress on the defense industrial base submitted for each of fiscal years 2013, 2014, and 2015 includes an update on the steps taken by the Department of Defense to act on the findings of the sector-by-sector, tier-by-tier assessment of the industrial base and implement the strategy required by subsection (c). Such updates shall, at a minimum—(1) be conducted based on current mapping of the supply chain and industrial base structure, including an analysis of the competitive landscape, relationships, risks, and opportunities within that structure; and(2) take into account any changes or updates to the National Defense Strategy, National Military Strategy, national counterterrorism policy, homeland security policy, and applicable operational or contingency plans.125 STAT. 1519