NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE, DEFENSE REINVESTMENT, AND DEFENSE CONVERSION PROGRAMS.

SEC. 1081. NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE, DEFENSE REINVESTMENT, AND DEFENSE CONVERSION PROGRAMS. (a) National Security Objectives for National Technology and Industrial Base.— (1) Section 2501 of title 10, United States Code, is amended— (A) in subsection (a)— (i) by striking out “DEFENSE POLICY” in the subsection heading and inserting in lieu thereof “National Security”; and (ii) by striking out paragraph (5); (B) by striking out subsection (b); and (C) by redesignating subsection (c) as subsection (b). (2) The heading of such section is amended to read as follows: “§ 2501. National security objectives concerning national technology and industrial base”. (b) National Defense Technology and Industrial Base COUNCIL.—Section 2502(c) of such title is amended— (1) in paragraph (1), by striking out subparagraph (B) and inserting in lieu thereof the following new subparagraph: “(B) programs for achieving such national security objectives; and”; (2) by striking out paragraph (2); and (3) by redesignating paragraph (3) as paragraph (2). (c) Modification of Defense Dual-Use Critical Technology Partnerships Program.— Section 2511 of such title is amended to read as follows: “§ 2511. Defense dual-use critical technology program “(a) Establishment of Program.— The Secretary of Defense shall conduct a program to further the national security objectives set forth in section 2501(a) of this title by encouraging and providing for research, development, and application of dual-use critical tech-110 STAT. 453nologies. The Secretary may make grants, enter into contracts, or enter into cooperative agreements and other transactions pursuant to section 2371 of this title in furtherance of the program. The Secretary shall identify projects to be conducted as part of the program. “(b) Assistance Authorized.— The Secretary of Defense may provide technical and other assistance to facilitate the achievement of the purposes of projects conducted under the program. In providing such assistance, the Secretary shall make available, as appropriate for the work to be performed, equipment and facilities of Department of Defense laboratories (including the scientists and engineers at those laboratories) for purposes of projects selected by the Secretary. “(c) Financial Commitment of Non-Federal Government Participants.— (1) The total amount of funds provided by the Federal Government for a project conducted under the program may not exceed 50 percent of the total cost of the project. However, the Secretary of Defense may agree to a project in which the total amount of funds provided by the Federal Government exceeds 50 percent if the Secretary determines the project is particularly meritorious, but the project would not otherwise have sufficient non-Federal funding or in-kind contributions. “(2) The Secretary may prescribe regulations to provide for consideration of in-kind contributions by non-Federal Government participants in a project conducted under the program for the purpose of calculating the share of the project costs that has been or is being undertaken by such participants. In such regulations, the Secretary may authorize a participant that is a small business concern to use funds received under the Small Business Innovation Research Program or the Small Business Technology Transfer Program to help pay the costs of project activities. Any such funds so used may be considered 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 percentage contribution in the project from non-Federal sources. “(3) The Secretary shall consider a project proposal submitted by a small business concern without regard to the ability of the small business concern to immediately meet its share of the anticipated project costs. Upon the selection of a project proposal submitted by a small business concern, the small business concern shall have a period of not less than 120 days in which to arrange to meet its financial commitment requirements under the project from sources other than a person of a foreign country. If the Secretary determines upon the expiration of that period that the small business concern will be unable to meet its share of the anticipated project costs, the Secretary shall revoke the selection of the project proposal submitted by the small business concern. “(d) Selection Process.— Competitive procedures shall be used in the conduct of the program. “(e) Selection Criteria.— The criteria for the selection of projects under the program shall include the following: “(1) The extent to which the proposed project advances and enhances the national security objectives set forth in section 2501(a) of this title. “(2) The technical excellence of the proposed project. 110 STAT. 454 “(3) The qualifications of the personnel proposed to participate in the research act vities of the proposed project. “(4) An assessment of timely private sector investment in activities to achieve the goals and objectives of the proposed project other than through tne project. “(5) The potential effectiveness of the project in the further development and application of each technology proposed to be developed by the project for the national technology and industrial base. “(6) The extent of the financial commitment of eligible firms to the proposed project. “(7) The extent to which the project does not unnecessarily duplicate projects undertaken by other agencies. “(f) Regulations.— The Secretary of Defense shall prescribe regulations for the purposes of this section.”. (d) Federal Defense Laboratory Diversification Program.— Section 2519 of such title is amended— (1) in subsection (b), by striking out “referred to in section 2511(b) of this title”; and (2) in subsection (f), by striking out “section 2511(f)” and inserting in lieu thereof “section 2511(e)”. (e) Manufacturing Science and Technology Program.— Subsection (b) of section 2525 of such title is amended to read as follows: “(b) Purpose of Program.— The Secretary of Defense shall use the program— “(1) to provide centralized guidance and direction (including goals, milestones, and priorities) to the military departments and the Defense Agencies on all matters relating to manufacturing technology; “(2) to direct the development and implementation of Department of Defense plans, programs, projects, activities, and policies that promote the development and application of advanced technologies to manufacturing processes, tools, and equipment; “(3) to improve the manufacturing quality, productivity, technology, and practices of businesses and workers providing goods and services to the Department of Defense; “(4) to promote dual-use manufacturing processes; “(5) to disseminate information concerning improved manufacturing improvement concepts, including information on such matters as best manufacturing practices, product data exchange specifications, computer-aided acquisition and logistics support, and rapid acquisition of manufactured parts; “(6) to sustain and enhance the skills and capabilities of the manufacturing work force; “(7) to promote high-performance work systems (with development and dissemination of production technologies that build upon the skills and capabilities of the work force), high levels of worker education and training; and “(8) to ensure appropriate coordination between the manufacturing technology programs and industrial preparedness programs of the Department of Defense and similar programs undertaken by other departments and agencies of the Federal Government or by the private sector.”. (f) Repeal of Various Assistance Programs.— Sections 2512, 2513, 2520, 2521, 2522, 2523, and 2524 of such title are repealed. 110 STAT. 455 (g) Repeal of Military-Civilian Integration and Technology Transfer Advisory Board.— Section 2516 of such title is repealed. (h) Repeal of Obsolete Definitions.— Section 2491 of such title is amended— (1) by striking out paragraphs (11) and (12); and (2) by redesignating paragraphs (13), (14), (15), and (16) as paragraphs (11), (12), (13), and (14), respectively. (i) Clerical Amendments.— (1) The table of sections at the beginning of subchapter II of chapter 148 of such title is amended by striking out the item relating to section 2501 and inserting in lieu thereof the following new item: “2501. National security objectives concerning national technology and industrial base.”. (2) The table of sections at the beginning of subchapter II of chapter 148 of such title is amended by striking out the item relating to section 2501 and inserting in lieu thereof the following new item: (A) by striking out the item relating to section 2511 and inserting in lieu thereof the following new item: “2511. Defense dual-use critical technology program ”; and (B) by striking out the items relating to sections 2512, 2513, 2516, and 2520. (3) The table of sections at the beginning of subchapter IV of such chapter is amended by striking out the items relating to sections 2521, 2522, 2523, and 2524.