IMPLEMENTING REGULATIONS CONCERNING THE NATIONAL TECHNOLOGY AND INDUSTRIAL BASE PERIODIC PLAN.

SEC. 4220. IMPLEMENTING REGULATIONS CONCERNING THE NATIONAL TECHNOLOGY AND INDUSTRIAL BASE PERIODIC PLAN. (a) Rule of Construction.—Except as otherwise expressly provided, in this section each reference to a section is a reference to a section of title 10, United States Code. (b) Initial Regulations.—The Secretary of Defense shall ensure that the initial regulations prescribed to implement section 2506 provide that the national technology and industrial base plan required by such section include the matters set forth in subsections (c) through (f). (c) Manufacturing Technology Guidance.— The initial regulations shall require that the guidance provided for manufacturing technology pursuant to section 2506(b)(4) include guidance with respect to the following: (1) The National Defense Manufacturing Technology Program established under section 2521. (2) The support of manufacturing extension programs under section 2523. (3) Programs to enhance basic research in scientific disciplines relating to manufacturing technology through— (A) encouraging research in colleges and universities in the United States and in associated centers of excellence; and (B) establishing technology transfer mechanisms, and technology education and training mechanisms, that ensure that the results of such research are readily available to United States industry. (4) Programs for encouraging the use of computer-integrated manufacturing to improve manufacturing quality, reduce manufacturing costs, reduce production lead times, and improve maintenance. 106 STAT. 2676 (5) Programs for enhancing Department of Defense use of concurrent engineering practices in the design and development of weapon systems. (6) Programs providing incentives for firms in the national technology and industrial base to use advanced manufacturing technology and processes and to invest in improved productivity. (7) Programs for encouraging research in colleges and universities and in other technology development and extension programs in the United States for development of systems that build on the skill and experience of workers. (8) Programs for assisting in the transition to high performance work systems, including ongoing worker involvement in the evaluation, selection, and installation and operation of production technologies and associated organization or work. (d) Critical Technologies Guidance.—The initial regulations shall require that the guidance provided pursuant to section 25O6(b)(5) for the development of each critical technology include the following: (1) The specific funding requirements of the Department of Defense, the Department of Energy and other departments and agencies of the Federal Government for the development of the technology for the 5 fiscal years following the fiscal year in which the plan is submitted to Congress pursuant to section 2506(e). (2) A designation of the lead organization within the Department of Defense or the Department of Energy to be responsible for the development of the technology. (3) A summary description of the lead organization’s plan for the development of the technology, including the milestone goals. (e) Financial Policy Guidance.— The initial regulations shall require that the guidance provided pursuant to section 2506(b)(6) with regard to financial policies of the Department of Defense and the Department of Energy (for national security programs) include guidance with respect to the following: (1) Policies relating to progress payments or other financing by the Department of Defense. (2) Policies relating to the return on contractor investment. (3) Policies relating to the allocation of contract risk between the Department of Defense and a contractor. (f) Commercial-Military Integration Guidance.— The initial regulations shall require that the guidance provided pursuant to section 2501(c) regarding integration of commercial products and processes into Federal acquisition practices include guidance with respect to the following: (1) Expanding the use of commercial specifications in place of Federal Government specifications. (2) Increasing the use of commercial manufacturing processes instead of processes specified by the Federal Government. (3) Reducing the extent of unique government regulatory requirements relating to accounting and acquisition. (4) Identifying and ensuring the effective application by the Department of Defense and the Department of Energy (for national security programs) of research, technologies, products, information, and practices developed by other departments and agencies of the Federal Government, State and local 106 STAT. 2677governments, colleges and universities, nonprofit organizations, and commercial enterprises. (5) Identifying effective mechanisms for transferring technology and related information, to the maximum extent practicable, from the Department of Defense and Department of Energy to other departments and agencies of the Federal Government, State and local governments, colleges and universities, nonprofit organizations, and commercial enterprises. (6) Ensuring, to the maximum extent practicable, that technology and related information are so transferred. (g) Major Program Guidance.— The initial regulations implementing section 2430(b), shall provide that the acquisition plan for each major defense acquisition program include provisions or the following: (1) An analysis of the capabilities of the national technology and industrial base to develop, produce, maintain, and support such program, including consideration of the factors set forth in section 4219(h). (2) Consideration of requirements for efficient manufacture during the design and production of the systems to be procured under the program. (3) The use of advanced manufacturing technology, processes, and systems during the research and development phase and the production phase of the program. (4) To the maximum extent practicable, the use of contract solicitations that encourage competing offerors to acquire, for use in the performance of the contract, modern technology, production equipment, and production systems (including hardware and software) that increase the productivity of the offerors and reduce lifecycle costs. (5) Encouragement of investment by United States domestic sources in advanced manufacturing technology production equipment and processes through— (A) recognition of the contractor’s investment in advanced manufacturing technology production equipment, processes, and organization of work systems that build on workers’ skill and experience, and work force skill development in the development of the contract objective; and (B) increased emphasis in source selections on the efficiency of production. (6) Expanded use of commercial manufacturing processes rather than processes specified by the Department of Defense. (7) Elimination of barriers to, and facilitation of, the integrated manufacture of commercial items and items being produced under Department of Defense contracts. (8) Expanded use of commercial products as set forth in section 2325.