ASSESSMENT OF NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE AND DEPENDENCY OF BASE ON SUPPLIES AVAILABLE ONLY FROM FOREIGN COUNTRIES.

SEC. 829. ASSESSMENT OF NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE AND DEPENDENCY OF BASE ON SUPPLIES AVAILABLE ONLY FROM FOREIGN COUNTRIES. (a) National Security Objectives for National Technology and Industrial Base.— Section 2501(a) of title 10, United States Code, is amended by adding at the end the following: “(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) National Defense Program for Analysis of the Technology and Industrial Base.— Section 2503 of title 10, United States Code, is amended— (1) in subsection (a)— (A) by striking out “(1) The Secretary of Defense, in consultation with the National Defense Technology and Industrial Base Council,” in paragraph (1) and inserting in lieu thereof “The Secretary of Defense”; and (B) by striking out paragraphs (2), (3), and (4); and (2) in subsection (c)(3)(A)— (A) by striking out “the National Defense Technology and Industrial Base Council in” and inserting in lieu thereof “the Secretary of Defense for”; and (B) by striking out “and the periodic plans required by section 2506 of this title”. (c) Periodic Defense Capability Assessments, Including Foreign Dependency.— (1) Section 2505 of title 10, United States Code, is amended to read as follows: “§2505. National technology and industrial base: periodic defense capability assessments “(a) Periodic Assessment.— Each fiscal year, the Secretary of Defense shall prepare selected assessments of the capability 110 STAT. 2613of the national technology and industrial base to attain the national security objectives set forth in section 2501(a) of this title. The Secretary of Defense shall prepare such assessments in consultation with the Secretary of Commerce and the Secretary of Energy. “(b) Assessment Process.— The Secretary of Defense shall ensure that technology and industrial capability assessments— “(1) describe sectors or capabilities, their underlying infrastructure and processes; “(2) analyze present and projected financial performance of industries supporting the sectors or capabilities in the assessment; and “(3) identify technological and industrial capabilities and processes for which there is potential for the national industrial and technology base not to be able to support the achievement of national security objectives. “(c) Assessment of Extent of Dependency on Foreign Source Items.— Each assessment under subsection (a) shall include a separate discussion and presentation regarding the extent to which the national technology and industrial base is dependent on items for which the source of supply, manufacture, or technology is outside of the United States and Canada and for which there is no immediately available source in the United States or Canada. The discussion and presentation regarding foreign dependency shall— “(1) identify cases that pose an unacceptable risk of foreign dependency, as determined by the Secretary; and “(2) present actions being taken or proposed to be taken to remedy the risk posed by the cases identified under paragraph (1), including efforts to develop a domestic source for the item in question. “(d) Integrated Process.— The Secretary of Defense shall ensure that consideration of the technology and industrial base assessments is integrated into the overall budget, acquisition, and logistics support decision processes of the Department of Defense.”. (2) Section 2502(b) of title 10, United States Code, is amended— (A) by striking out “the following responsibilities:” and all that follows through “effective cooperation” and inserting in lieu thereof “the responsibility to ensure effective cooperation”; and (B) by striking out paragraph (2); and (3) by redesignating subparagraphs (A), (B), and (C) as paragraphs (1), (2), and (3), respectively, and adjusting the margin of such paragraphs two ems to the left. (d) Repeal of Requirement for Periodic Defense Capability Plan; Development of Policy Guidance.— Section 2506 of title 10, United States Code, is amended to read as follows: “§2506. Department of Defense technology and industrial base policy guidance “(a) Departmental Guidance.— The Secretary of Defense shall prescribe departmental guidance for the attainment of each of the national security objectives set forth in section 2501(a) of this title. Such guidance shall provide for technological and industrial capability considerations to be integrated into the budget allocation, weapons acquisition, and logistics support decision processes. “(b) Report to Congress.— The Secretary of Defense shall report on the implementation of the departmental guidance in the 110 STAT. 2614annual report to Congress submitted pursuant to section 2504 of this title.”. (e) Annual Report to Congress.— Subchapter II of chapter 148 of title 10, United States Code, is amended by inserting after section 2503 the following new section: “§ 2504. Annual report to Congress “The Secretary of Defense shall transmit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives by March 1 of each year a report which shall include the following information: “(1) A description of the departmental guidance prepared pursuant to section 2506 of this title. “(2) A description of the methods and analyses being undertaken by the Department of Defense alone or in cooperation with other Federal agencies, to identify and address concerns regarding technological and industrial capabilities of the national technology and industrial base. “(3) A description of the assessments prepared pursuant to section 2505 of this title and other analyses used in developing the budget submission of the Department of Defense for the next fiscal year. “(4) Identification of each program designed to sustain specific essential technological and industrial capabilities and processes of the national technology and industrial base.”. (f) Repeal of Requirement To Coordinate the Encouragement of Technology Transfer With the Council.— Subsection 2514(c) of title 10, United States Code, is amended by striking out paragraph (5). (g) Clerical Amendments.— (1) The table of sections at the beginning of subchapter II of chapter 148 of title 10, United States Code, is amended by inserting after the item relating to section 2503 the following new item: “2504. Annual report to Congress.”. (2) Such table of sections is further amended by striking out the item relating to section 2506 and inserting in lieu thereof the following new item: “2506. Department of Defense technology and industrial base policy guidance.”. (h) Repeal of Superseded and Executed Law.— Sections 4218, 4219, and 4220 of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102–484; 10 U.S.C. 2505 note and 2506 note) are repealed.