Trump is restoring the
US-based steel and aluminum industries to a level that complies with the
requirement that the US maintain a “defense industrial base. See below:
Defense
Primer: U.S. Defense Industrial Base 4/20/18
The Department
of Defense (DOD) relies on a wide-ranging and complex industrial base for
products and services required to support DOD’s stated mission “to provide the
military forces needed to deter war and to protect the security of our
country.” This defense industrial base comprises public-sector
(government-owned, government-operated) facilities and private-sector
(commercial) companies. The commercial companies that contract with DOD are
diverse and range in size from small businesses to some of the world’s largest
corporate enterprises. These commercial companies provide a wide variety of
products to DOD, encompassing everything from complex military-unique platforms
such as aircraft carriers to common commercial items such as laptop computers,
clothing, and food. They also provide a wide variety of services ― from routine
services (e.g., information technology (IT) support) to highly specialized
services (e.g., launching space vehicles). Domestically owned firms and
foreign-owned firms that engage in direct investment, hire U.S. workers, and
are governed by U.S. laws, are parts of the nation’s defense industrial base.
DOD’s
Role Chapter 148 of Title 10, United States Code (U.S.C.), addresses policies
and planning related to the “national technology and industrial base” (NTIB)
which it defines as “persons and organizations that are engaged in research,
development, production, integration, services, or information technology
activities conducted within the United States and Canada.”
Title 10
U.S.C. §2501 requires the Secretary of Defense to develop a national security
strategy for the NTIB and directs the strategy to be “based on a prioritized
assessment of risks and challenges to the defense supply chain.”
Title 10
U.S.C. §133b assigns specific responsibility for “establishing policies for
access to, and maintenance of, the defense industrial base and materials
critical to national security, and policies on contract administration” to the
Under Secretary of Defense for Acquisition and Sustainment (USD/A&S). The
Deputy Assistant Secretary of Defense for Manufacturing and Industrial Base
Policy (DASD/MIBP) serves as the principal advisor to the Under Secretary on
matters related to the defense industrial base to include establishing policies
for access to, and maintenance of, the defense industrial base and materials
critical to national security.
Annual
NTIB Assessments
Title 10
U.S.C. §2505 requires the Secretary to conduct annual assessments of the NTIB’s
capability to attain national security objectives and requires a yearly report
to Congress on such assessments (10 U.S.C. §2504). The assessment includes a
description of sectors and capabilities of the NTIB and their underlying
infrastructure and processes. In practice, the DASD/MIBP performs the assessment.
In conducting the assessment, the Secretary is required to consider factors
such as: · present and projected financial performance of
industries; · whether DOD acquisition program requirements
can be met with current and projected NTIB capacities; ·
the degree to which DOD acquisition program requirements can be met with
current and projected capacities of— o industries supporting the sectors or
capabilities in the assessment, and the extent to which they are comprised of
only one potential source; and o industries not currently supporting DOD
programs, and the barriers to participation of those industries; ·
technological and industrial capabilities and processes that may be unable to
support the achievement of national security objectives; and ·
the effects of the termination of major defense acquisition programs or major
automated information system programs in the previous fiscal year.
Additionally, 10 U.S.C. §2505 requires the assessment to examine the extent to
which the NTIB depends on items sourced outside the U.S. and Canada and to
appraise the extent the NTIB is affected by any foreign boycott.
Selected
Industrial Base Authorities - The following discussion surveys selected
industrial base authorities that are fundamental to DOD stewardship of the
NTIB.
Industrial
Base Fund 10 U.S.C. §2508 directs the Secretary of Defense to establish an
Industrial Base Fund (IBF) that The IBF is subject to annual appropriations and
was established to: 1. Support the monitoring and assessment of the industrial
base; 2. Address critical issues in the industrial base relating to urgent
operational needs; 3. Support efforts to expand the industrial base; and 4.
Address supply chain vulnerabilities.
Defense
Production Act (DPA) of 1950 The DPA of 1950, as last reauthorized in 2014,
provides the President with a number of authorities which he or she may utilize
to influence domestic industry in the interest of national defense. The
authorities most relevant to NTIB are: Title I: Priorities and Allocations— allows
the President to require persons (including businesses and corporations) to
prioritize and accept contracts for materials and services as necessary to
promote the national defense.
Title
III: Expansion of Productive Capacity and Supply — allows the President to
incentivize the domestic industrial base to expand the production and supply of
critical materials and goods. Authorized incentives include direct purchases
and purchase commitments. The President may also procure and install equipment
in private industrial facilities.
Title
VII: General Provisions— defines salient terms and provides several distinct
authorities, including the authority to establish voluntary agreements with
private industry and the authority to block proposed or pending foreign
corporate mergers, acquisitions, or takeovers that threaten national security,
through the Committee on Foreign Investment in the United States (CFIUS).
Manufacturing Technology (MANTEC) Program Established in 1956 by 10 U.S.C.
§2521, the Manufacturing Technology Program is intended to further the national
security objectives of 10 U.S.C. §2501. The purpose of the program is to (1)
reduce equipment acquisition and supportability costs and manufacturing and
repair timelines by providing centralized guidance and direction to the
military departments and the defense agencies, and (2) focus DOD support for
the development and application of advanced manufacturing technologies that are
essential to national defense.
Section
2521 also established the Joint Defense Manufacturing Technology Panel. The
panel is responsible for: 1. Conducting comprehensive reviews and assessments
of defense-related manufacturing issues being addressed by DOD’s manufacturing
technology programs and related activities; 2. Executing strategic planning to
identify opportunities for increased cooperation in the development and
implementation of technological products and the leveraging of funding for such
purposes with the private sector and other government agencies; and 3. Ensuring
the integration and coordination of requirements and programs under MANTEC with
the Office of the Secretary of Defense and other national-level initiatives.
Domestic Sourcing Mandates With the aim of protecting American manufacturing
and manufacturing jobs associated with the defense industrial base,
Congress
has passed several domestic sourcing laws, · The Buy American Act
of 1933, which generally requires federal agencies – including DOD – to
purchase “domestic end products” and use “domestic construction materials” on
contracts exceeding the micro-purchase threshold (typically $3,500) performed
in the United States. · The Berry Amendment
(10 U.S.C. §2533a), which requires textiles, clothing, food, and hand or
measuring tools purchased by the DOD to be grown, reprocessed, reused, or
produced wholly in the United States. · The Specialty Metals
Clause (10 U.S.C. §2533b), which requires that any specialty metals, defined as
certain metal alloys, contained in any aircraft, missile and space system,
ship, tank and automotive item, weapon system, ammunition, or any components
thereof, purchased by DOD be melted or produced in the United States.
Norb Leahy, Dunwoody
GA Tea Party Leader
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