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

Subtitle D--Industrial Base Matters

P. L. 116-

House Conference Report   116-617

(b) Scope of Assessment.--In developing the additional recommendations required under subsection (a), the Under Secretary shall--

(1) assess the macro forces and risk archetypes identified in the report of the Interagency Task Force described in subsection (a);

(2) evaluate the success of responsive actions undertaken; and

(3) identify any such recommendations that may require new legislative authorities.

(c) Objectives.--The additional recommendations made pursuant to subsection (a) shall--

(1) aim to expand the defense industrial base to leverage contributions and capabilities of allies and partner countries;

(2) identify and preserve the viability of domestic and trusted international suppliers; and

(3) strengthen the domestic industrial base, especially in areas subject to the risk archetypes identified in the report of the Interagency Task Force described in subsection (a).

(d) Consultation.--In developing the additional recommendations required under subsection (a), the Under Secretary may engage through appropriate mechanisms with--

(1) the Defense Science Board;

(2) the Defense Innovation Board;

(3) the Defense Business Board;

(4) entities representing industry interests; and

(5) entities representing labor interests.

(e) Submission of Recommendations to President.--Not later than 30 days after receiving the additional recommendations required under subsection (a), the Secretary of Defense shall submit such recommendations, together with any supplementary views or recommendations, to the President, the Director of the Office of Management and Budget, the Assistant to the President for National Security Affairs, and the Director of the National
Economic Council.

(f) Submission of Recommendations to Congress.--Not later than 30 days after submitting the recommendations under subsection (e), the Secretary of Defense shall submit to and brief the congressional defense committees on such recommendations.

The Senate amendment contained a provision (sec. 801) that would require the Under Secretary of Defense for Acquisition and Sustainment to submit a series of recommendations regarding United States industrial policies to the Secretary of Defense, who would subsequently be required to submit these recommendations to the President, the Office of Management and Budget, the National Security Council, the National Economic Council, and the congressional defense committees.

The House bill contained no similar provision.

The House recedes with an amendment that would modify the scope of the assessment and objectives upon which the Undersecretary of Defense for Acquisition and Sustainment is to base the recommendations.

The conferees commend the Department of Defense for its leadership in implementing the July 21, 2017, Presidential Executive Order 13806, ``Assessing and Strengthening the Manufacturing and Defense Industrial Base and Supply Chain Resiliency of the United States.'' The challenges and shortfalls highlighted in the report authored in response to the executive order are of such scale that the conferees believe that only a national approach can effectively address these deficits. Therefore, the conferees expect the Department to exercise its leadership position, analytical capabilities, and policy expertise in developing recommendations for the industrial policies the United States ought to pursue.

Senate Committee Report 116-236 to Accompanying S. 4049

Policy recommendations for implementation of Executive Order 13806 (Assessing and Strengthening the Manufacturing and Defense Industrial Base and Supply Chain Resiliency) (sec. 801)

The committee recommends a provision that would require the Under Secretary of Defense for Acquisition and Sustainment to submit a series of recommendations surrounding United States industrial policies to the Secretary of Defense, who would subsequently be required to submit these recommendations to the President, the Office of Management and Budget, the National Security Council, the National Economic Council, and the congressional defense committees.

The committee commends the Department of Defense for its leadership in implementing the July 21, 2017, Presidential Executive Order on Assessing and Strengthening the Manufacturing and Defense Industrial Base and Supply Chain Resiliency of the United States. The challenges and shortfalls highlighted in the report authored in response to the executive order are of such scale that the committee believes that only a national approach can effectively address these deficits. Therefore, the committee expects the Department to exercise its leadership position, analytical capabilities, and policy expertise in developing recommendations for the industrial policies that the United States ought to pursue.