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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle F Improve Acquisition Act

P. L. 111-

Joint Explanatory Statement of the Committees on Armed Services of the U. S. Senate and House of Representatives on H. R. 6523

From H. R. 6523

SEC. 891. EXPANSION OF THE INDUSTRIAL BASE.

    (a) Program To Expand Industrial Base Required- The Secretary of Defense shall establish a program to expand the industrial base of the Department of Defense to increase the Department's access to innovation and the benefits of competition.

    (b) Identifying and Communicating With Firms That Are Not Traditional Suppliers- The program established under subsection (a) shall use tools and resources available within the Federal Government and available from the private sector to provide a capability for identifying and communicating with firms that are not traditional suppliers, including commercial firms and firms of all business sizes, that are engaged in markets of importance to the Department of Defense in which such firms can make a significant contribution.

    (c) Outreach to Local Firms Near Defense Installations- The program established under subsection (a) shall include outreach, using procurement technical assistance centers, to firms of all business sizes in the vicinity of Department of Defense installations regarding opportunities to obtain contracts and subcontracts to perform work at such installations.

    (d) Industrial Base Review- The program established under subsection (a) shall include a continuous effort to review the industrial base supporting the Department of Defense, including the identification of markets of importance to the Department of Defense in which firms that are not traditional suppliers can make a significant contribution.

    (e) Firms That Are Not Traditional Suppliers- For purposes of this section, a firm is not a traditional supplier of the Department of Defense if it does not currently have contracts and subcontracts to perform work for the Department of Defense with a total combined value in excess of $500,000

    (f) Procurement Technical Assistance Center- In this section, the term `procurement technical assistance center' means a center operating under a cooperative agreement with the Defense Logistics Agency to provide procurement technical assistance pursuant to the authority provided in chapter 142 of title 10, United States Code.


From H.R. 5136:  National Defense Authorization Act for Fiscal Year 2011

SEC. 401. EXPANSION OF THE INDUSTRIAL BASE.

    (a) Program to Expand Industrial Base Required- The Secretary of Defense shall establish a program to expand the industrial base of the Department of Defense to increase the Department's access to innovation and the benefits of competition. The program shall be limited to firms within the national technology and industrial base (as defined in section 2500(1) of title 10, United States Code).

    (b) Identifying and Communicating With Nontraditional Suppliers- The program established under subsection (a) shall use tools and resources available within the Federal Government and available from the private sector, to provide a capability for identifying and communicating with nontraditional suppliers, including commercial firms and firms of all business sizes, that are engaged in markets of importance to the Department of Defense.

    (c) Outreach to Local Firms Near Defense Installations- The program established under subsection (a) shall include outreach, using procurement technical assistance centers, to notify firms of all business sizes in the vicinity of Department of Defense installations of opportunities to obtain contracts and subcontracts to perform work at such installations.

    (d) Industrial Base Review- The program required by subsection (a) shall include a continuous effort to review the industrial base supporting the Department of Defense, including the identification of markets of importance to the Department of Defense.

    (e) Definition- In this section:

      (1) NONTRADITIONAL SUPPLIERS- The term `nontraditional suppliers' means firms that have received contracts from the Department of Defense with a total value of not more than $100,000 in the previous five years.

      (2) MARKETS OF IMPORTANCE TO THE DEPARTMENT OF DEFENSE- The term `markets of importance to the Department of Defense' means industrial sectors in which the Department of Defense spends more than $500,000,000 annually.

      (3) PROCUREMENT TECHNICAL ASSISTANCE CENTER- The term `procurement technical assistance center' means a center operating under a cooperative agreement with the Defense Logistics Agency to provide procurement technical assistance pursuant to the authority provided in chapter 142 of title 10, United States Code.


From H. R. 5013:  Implementing Management for Performance and Related Reforms to Obtain Value in Every Acquisition Act of 2010

SEC. 401. EXPANSION OF THE INDUSTRIAL BASE.

    (a) Program to Expand Industrial Base Required- The Secretary of Defense shall establish a program to expand the industrial base of the Department of Defense to increase the Department's access to innovation and the benefits of competition. The program shall be limited to firms within the national technology and industrial base (as defined in section 2500(1) of title 10, United States Code).

    (b) Identifying and Communicating With Nontraditional Suppliers- The program established under subsection (a) shall use tools and resources available within the Federal Government and available from the private sector, to provide a capability for identifying and communicating with nontraditional suppliers, including commercial firms and firms of all business sizes, that are engaged in markets of importance to the Department of Defense.

    (c) Outreach to Local Firms Near Defense Installations- The program established under subsection (a) shall include outreach, using procurement technical assistance centers, to notify firms of all business sizes in the vicinity of Department of Defense installations of opportunities to obtain contracts and subcontracts to perform work at such installations.

    (d) Industrial Base Review- The program required by subsection (a) shall include a continuous effort to review the industrial base supporting the Department of Defense, including the identification of markets of importance to the Department of Defense.

    (e) Definition- In this section:

      (1) NONTRADITIONAL SUPPLIERS- The term `nontraditional suppliers' means firms that have received contracts from the Department of Defense with a total value of not more than $100,000 in the previous 5 years.

      (2) MARKETS OF IMPORTANCE TO THE DEPARTMENT OF DEFENSE- The term `markets of importance to the Department of Defense' means industrial sectors in which the Department of Defense spends more than $500,000,000 annually.

      (3) PROCUREMENT TECHNICAL ASSISTANCE CENTER- The term `procurement technical assistance center' means a center operating under a cooperative agreement with the Defense Logistics Agency to provide procurement technical assistance pursuant to the authority provided in chapter 142 of title 10, United States Code.

Expansion of the industrial base (sec. 891)

The House bill contained a provision (sec. 401 of division D) that would require the Secretary of Defense to establish a program to expand the Department of Defense industrial base to increase the Department‟s access to innovation and the benefits of competition.

The Senate committee-reported bill contained no similar provision.

The agreement includes the House provision with a clarifying amendment.


From H. Rpt. 111-465, accompanying  H. R. 5013: Implementing Management for Performance and Related Reforms to Obtain Value in Every Acquisition Act of 2010

SECTION 401--EXPANSION OF THE INDUSTRIAL BASE

This section would require the Secretary of Defense to establish a program to expand the defense industrial base by identifying and communicating with non-traditional suppliers using tools and resources available within the federal government and in the private sector. The program would include a continuous effort to review the defense industrial base and identify markets of importance to Department of Defense. The committee notes that for the purposes of such a review, the defense industrial base should include systems integrators, suppliers of services and information technology, consistent with the revision of the definition of the national technology and industrial base required by section 406 of this Act.

 

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