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TITLE 50, APPENDIX App. > DEFENSE > ACT > TITLE VII > § 2171
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§ 2171. Defense industrial base information system

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(a) Establishment required
(1) In general
The President, acting through the Secretary of Defense and the heads of such other Federal agencies as the President may determine to be appropriate, shall provide for the establishment of an information system on the domestic defense industrial base which—
(A) meets the requirements of this section; and
(B) includes a systematic continuous procedure, to collect and analyze information necessary to evaluate—
(i) the adequacy of domestic industrial capacity to furnish critical components and critical technology items essential to the national security of the United States;
(ii) dependence on foreign sources for critical components and critical technology items essential to defense production; and
(iii) the reliability of foreign sources for critical components and critical technology items.
(2) Incorporation of DINET
The Defense Information Network (or DINET), as established and maintained by the Secretary of Defense on the date of enactment of the Defense Production Act Amendments of 1992 [Oct. 28, 1992], shall be incorporated into the system established pursuant to paragraph (1).
(3) Use of information
Information collected and analyzed under the procedure established pursuant to paragraph (1) shall constitute a basis for making any determination to exercise any authority under this Act [sections 2061 to 2171 of this Appendix] and a procedure for using such information shall be integrated into the decisionmaking process with regard to the exercise of any such authority.
(b) Sources of information
(1) Foreign dependence
(A) Scope of information review
The procedure established to meet the requirement of subsection (a)(1)(B)(ii) shall address defense production with respect to the operations of prime contractors and at least the first 2 tiers of subcontractors, or at lower tiers if a critical component is identified at such lower tier.
(B) Use of existing data collection and review capabilities
To the extent feasible and appropriate, the President shall build upon existing methods of data collection and analysis and shall integrate information available from intelligence agencies with respect to industrial and technological conditions in foreign countries.
(C) Initial emphasis on priority lists
In establishing the procedure referred to in subparagraph (A), the Secretary may place initial emphasis on the production of critical components and critical technology items.
(2) Production base analysis
(A) Comprehensive review
The analysis of the production base for any major system acquisition included in the information system maintained pursuant to subsection (a) shall, in addition to any information and analyses the President may require—
(i) include a review of all subcontractors and suppliers, beginning with any raw material, special alloy, or composite material involved in the production of a completed system;
(ii) identify each contractor and subcontractor (or supplier) at each level of production for such major system acquisition which represents a potential for delaying or preventing the system’s production and acquisition, including the identity of each contractor or subcontractor whose contract qualifies as a foreign source or sole source contract and any supplier which is a foreign source or sole source for any item required in the production, including critical components; and
(iii) include information to permit appropriate management of accelerated or surge production.
(B) Initial requirement for study of production bases for not more than 6 major weapon systems
In establishing the information system under subsection (a), the President, acting through the Secretary of Defense, shall require an analysis of the production base for not more than 2 weapons of each military department which are major systems (as defined in section 2302 (5) of title 10, United States Code). Each such analysis shall identify the critical components of each system.
(3) Consultation regarding the census of manufacturers
(A) In general
The Secretary of Commerce, acting through the Bureau of the Census, shall consult with the Secretary of Defense and the Director of the Federal Emergency Management Agency to improve the usefulness of information derived from the Census of Manufacturers in carrying out this section.
(B) Issues to be addressed
The consultation required under subparagraph (A) shall address improvements in the level of detail, timeliness, and availability of input and output analyses derived from the Census of Manufacturers necessary to carry out this section.
(c) Strategic plan for developing comprehensive system
(1) Plan required
Not later than December 31, 1993, the President shall provide for the establishment of and report to the Congress on a strategic plan for developing a cost-effective, comprehensive information system capable of identifying on a timely, ongoing basis vulnerability in critical components and critical technology items.
(2) Assessment of certain procedures
In establishing the plan pursuant to paragraph (1), the President shall assess the performance and cost-effectiveness of procedures implemented under subsection (b), and shall seek to build upon such procedures, as appropriate.
(d) Capabilities of system
(1) In general
In connection with the establishment of the information system under subsection (a), the President shall direct the Secretary of Defense, the Secretary of Commerce, and the heads of such other Federal agencies as the President may determine to be appropriate—
(A) to consult with each other and provide such information, assistance, and cooperation as may be necessary to establish and maintain the information system required by this section in a manner which allows the coordinated and efficient entry of information on the domestic defense industrial base into, and the withdrawal, subject to the protection of proprietary data, of information on the domestic defense industrial base from the system on an on-line interactive basis by the Department of Defense;
(B) to assure access to the information on the system, as appropriate, for all participating Federal agencies, including each military department;
(C) to coordinate standards, definitions, and specifications for information on defense production, which is collected by the Department of Defense and the military departments so that such information can be used by any Federal agency or department, as the President determines to be appropriate; and
(D) to assure that the information in the system is updated, as appropriate, with the active assistance of the private sector.
(2) Task force on military-civilian participation
Upon the establishment of the information system under subsection (a), the President shall convene a task force consisting of the Secretary of Defense, the Secretary of Commerce, the Secretary of each military department, and the heads of such other Federal agencies and departments as the President may determine to be appropriate to establish guidelines and procedures to ensure that all Federal agencies and departments which acquire information with respect to the domestic defense industrial base are fully participating in the system, unless the President determines that all appropriate Federal agencies and departments, including each military department, are voluntarily providing information which is necessary for the system to carry out the purposes of this Act [sections 2061 to 2171 of this Appendix] and chapter 148 of title 10, United States Code.
(e) Report on subcontractor and supplier base
(1) Report required
The President shall issue a report (in accordance with paragraph (4) [1] which includes—
(A) a list of critical components, technologies, and technology items for which there is found to be inadequate domestic industrial capacity or capability; and
(B) an assessment of those subsectors of the economy of the United States which—
(i) support production of any component, technology, or technology item listed pursuant to subparagraph (A); or
(ii) have been identified as being critical to the development and production of components required for the production of weapons, weapon systems, and other military equipment essential to the national defense.
(2) Matters to be considered
The assessment made under paragraph (1)(B) shall include consideration of—
(A) the capacity of domestic sources, especially commercial firms, to fulfill peacetime requirements and graduated mobilization requirements for various items of supply and services;
(B) any trend relating to the capabilities of domestic sources to meet such peacetime and mobilization requirements;
(C) the extent to which the production or acquisition of various items of military material is dependent on foreign sources; and
(D) any reason for the decline of the capabilities of selected sectors of the United States economy necessary to meet peacetime and mobilization requirements, including—
(i) stability of defense requirements;
(ii) acquisition policies;
(iii) vertical integration of various segments of the industrial base;
(iv) superiority of foreign technology and production efficiencies;
(v) foreign government support of nondomestic sources; and
(vi) offset arrangements.
(3) Policy recommendations
The report required by paragraph (1) may provide specific policy recommendations to correct deficiencies identified in the assessment, which would help to strengthen domestic sources.
(4) Time for issuance
The report required by paragraph (1) shall be issued not later than July 1 of each even-numbered year which begins after 1992.
(5) Release of unclassified report
The report required by this subsection may be classified. An unclassified version of the report shall be made available to the public.

[1] So in original. Probably should be followed by a closing ­parenthesis.
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Notes
1 Pending Update(s)
Parallel authorities (CFR)
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