TITLE 10 - US CODE - CHAPTER 148 - NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE, DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

TITLE 10 - US CODE - SUBCHAPTER I - DEFINITIONS

10 USC 2500 - Definitions

In this chapter:
(1) The term national technology and industrial base means the persons and organizations that are engaged in research, development, production, or maintenance activities conducted within the United States and Canada.
(2) The term dual-use with respect to products, services, standards, processes, or acquisition practices, means products, services, standards, processes, or acquisition practices, respectively, that are capable of meeting requirements for military and nonmilitary applications.
(3) The term dual-use critical technology means a critical technology that has military applications and nonmilitary applications.
(4) The term technology and industrial base sector means a group of public or private persons and organizations that engage in, or are capable of engaging in, similar research, development, or production activities.

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(5) The terms Federal laboratory and laboratory have the meaning given the term laboratory in section 12(d)(2) of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3710a (d)(2)), except that such terms include a federally funded research and development center sponsored by a Federal agency.
(6) The term critical technology means a technology that is
(A) a national critical technology; or
(B) a defense critical technology.
(7) The term national critical technology means a technology that appears on the list of national critical technologies contained in the most recent biennial report on national critical technologies submitted to Congress by the President pursuant to section 603(d)1 of the National Science and Technology Policy, Organization, and Priorities Act of 1976 (42 U.S.C. 6683 (d)).
(8) The term defense critical technology means a technology that is identified under section 2505 of this title as critical for attaining the national security objectives set forth in section 2501 (a) of this title.
(9) The term eligible firm means a company or other business entity that, as determined by the Secretary of Commerce
(A) conducts a significant level of its research, development, engineering, and manufacturing activities in the United States; and
(B) is a company or other business entity the majority ownership or control of which is by United States citizens or is a company or other business of a parent company that is incorporated in a country the government of which
(i) encourages the participation of firms so owned or controlled in research and development consortia to which the government of that country provides funding directly or provides funding indirectly through international organizations or agreements; and

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(ii) affords adequate and effective protection for the intellectual property rights of companies incorporated in the United States.

Such term includes a consortium of such companies or other business entities, as determined by the Secretary of Commerce.

(10) The term manufacturing technology means techniques and processes designed to improve manufacturing quality, productivity, and practices, including quality control, shop floor management, inventory management, and worker training, as well as manufacturing equipment and software.
(11) The term Small Business Innovation Research Program means the program established under the following provisions of section 9 of the Small Business Act (15 U.S.C. 638):
(A) Paragraphs (4) through (7) of subsection (b).
(B) Subsections (e) through (l).
(12) The term Small Business Technology Transfer Program means the program established under the following provisions of such section:
(A) Paragraphs (4) through (7) of subsection (b).
(B) Subsections (e) and (n) through (p).
(13) The term significant equity percentage means
(A) a level of contribution and participation sufficient, when compared to the other non-Federal participants in the partnership or other cooperative arrangement involved, to demonstrate a comparable long-term financial commitment to the product or process development involved; and
(B) any other criteria the Secretary may consider necessary to ensure an appropriate equity mix among the participants.
(14) The term person of a foreign country has the meaning given such term in section 3502(d) of the Primary Dealers Act of 1988 (22 U.S.C. 5342 (d)).
[1] See References in Text note below.

TITLE 10 - US CODE - SUBCHAPTER II - POLICIES AND PLANNING

10 USC 2501 - National security objectives concerning national technology and industrial base

(a) National Security Objectives for National Technology and Industrial Base.— 
It is the policy of Congress that the national technology and industrial base be capable of meeting the following national security objectives:
(1) Supplying and equipping the force structure of the armed forces that is necessary to achieve
(A) the objectives set forth in the national security strategy report submitted to Congress by the President pursuant to section 108 of the National Security Act of 1947 (50 U.S.C. 404a);
(B) the policy guidance of the Secretary of Defense provided pursuant to section 113 (g) of this title; and
(C) the future-years defense program submitted to Congress by the Secretary of Defense pursuant to section 221 of this title.
(2) Sustaining production, maintenance, repair, and logistics for military operations of various durations and intensity.
(3) Maintaining advanced research and development activities to provide the armed forces with systems capable of ensuring technological superiority over potential adversaries.
(4) Reconstituting within a reasonable period the capability to develop and produce supplies and equipment, including technologically advanced systems, in sufficient quantities to prepare fully for a war, national emergency, or mobilization of the armed forces before the commencement of that war, national emergency, or mobilization.
(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) Civil-Military Integration Policy.— 
It is the policy of Congress that the United States attain the national technology and industrial base objectives set forth in subsection (a) through acquisition policy reforms that have the following objectives:
(1) Relying, to the maximum extent practicable, upon the commercial national technology and industrial base that is required to meet the national security needs of the United States.
(2) Reducing the reliance of the Department of Defense on technology and industrial base sectors that are economically dependent on Department of Defense business.
(3) Reducing Federal Government barriers to the use of commercial products, processes, and standards.

10 USC 2502 - National Defense Technology and Industrial Base Council

(a) Establishment.— 
There is a National Defense Technology and Industrial Base Council.
(b) Composition.— 
The Council is composed of the following members:
(1) The Secretary of Defense, who shall serve as chairman.
(2) The Secretary of Energy.
(3) The Secretary of Commerce.
(4) The Secretary of Labor.
(5) Such other officials as may be determined by the President.
(c) Responsibilities.— 
The Council shall have the responsibility to ensure effective cooperation among departments and agencies of the Federal Government, and to provide advice and recommendations to the President, the Secretary of Defense, the Secretary of Energy, the Secretary of Commerce, and the Secretary of Labor, concerning
(1) the capabilities of the national technology and industrial base to meet the national security objectives set forth in section 2501 (a) of this title;
(2) programs for achieving such national security objectives; and
(3) changes in acquisition policy that strengthen the national technology and industrial base.
(d) Alternative Performance of Responsibilities.— 
Notwithstanding subsection (c), the President may assign the responsibilities of the Council to another interagency organization of the executive branch that includes among its members the officials specified in paragraphs (1) through (4) of subsection (b).

10 USC 2503 - National defense program for analysis of the technology and industrial base

(a) Establishment.— 
The Secretary of Defense shall establish a program for analysis of the national technology and industrial base.
(b) Supervision of Program.— 
The Secretary of Defense shall carry out the program through the Under Secretary of Defense for Acquisition, Technology, and Logistics. In carrying out the program, the Under Secretary shall consult with the Secretary of Energy, the Secretary of Commerce, and the Secretary of Labor.
(c) Functions.— 
The functions of the program shall include, with respect to the national technology and industrial base, the following:
(1) The assembly of timely and authoritative information.
(2) Initiation of studies and analyses.
(3) Provision of technical support and assistance to
(A) the Secretary of Defense for the preparation of the periodic assessments required by section 2505 of this title;
(B) the defense acquisition university structure and its elements; and
(C) other departments and agencies of the Federal Government in accordance with guidance established by the Council.
(4) Dissemination, through the National Technical Information Service of the Department of Commerce, of unclassified information and assessments for further dissemination within the Federal Government and to the private sector.

10 USC 2504 - Annual report to Congress

The Secretary of Defense shall transmit to the Committee on Armed Services of the Senate and the Committee on Armed Services 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.

10 USC 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 of 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.

10 USC 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 annual report to Congress submitted pursuant to section 2504 of this title.

10 USC 2507 - Data collection authority of President

(a) Authority.— 
The President shall be entitled, by regulation, subpoena, or otherwise, to obtain such information from, require such reports and the keeping of such records by, make such inspection of the books, records, and other writings, premises or property of, and take the sworn testimony of, and administer oaths and affirmations to, any person as may be necessary or appropriate, in the Presidents discretion, to the enforcement or the administration of this chapter and the regulations issued under this chapter.
(b) Condition for Use of Authority.— 
The President shall issue regulations insuring that the authority of this section will be used only after the scope and purpose of the investigation, inspection, or inquiry to be made have been defined by competent authority and it is assured that no adequate and authoritative data are available from any Federal or other responsible agency.
(c) Penalty for Noncompliance.— 
Any person who willfully performs any act prohibited or willfully fails to perform any act required by the provisions of subsection (a), or any rule, regulation, or order thereunder, shall be fined under title 18 or imprisoned not more than one year, or both.
(d) Limitations on Disclosure of Information.— 
Information obtained under subsection (a) which the President deems confidential or with reference to which a request for confidential treatment is made by the person furnishing such information shall not be published or disclosed unless the President determines that the withholding thereof is contrary to the interest of the national defense. Any person who willfully violates this subsection shall be fined under title 18 or imprisoned not more than one year, or both.
(e) Regulations.— 
The President may make such rules, regulations, and orders as he considers necessary or appropriate to carry out the provisions of this section. Any regulation or order under this section may be established in such form and manner, may contain such classification and differentiations, and may provide for such adjustments and reasonable exceptions as in the judgment of the President are necessary or proper to effectuate the purposes of this section, or to prevent circumvention or evasion, or to facilitate enforcement of this section, or any rule, regulation, or order issued under this section.
(f) Definitions.— 
In this section:
(1) The term person includes an individual, corporation, partnership, association, or any other organized group of persons, or legal successor or representative of the foregoing, and includes the United States or any agency thereof, or any other government, or any of its political subdivisions, or any agency of any of the foregoing, except that no punishment provided by this section shall apply to the United States, or to any such government, political subdivision, or government agency.
(2) The term national defense means programs for military and atomic energy production or construction, military assistance to any foreign nation, stockpiling, space, and directly related activity.

TITLE 10 - US CODE - SUBCHAPTER III - PROGRAMS FOR DEVELOPMENT, APPLICATION, AND SUPPORT OF DUAL-USE TECHNOLOGIES

10 USC 2511 - Defense dual-use critical technology program

(a) Establishment of Program.— 
The Secretary of Defense shall conduct a program to further the national security objectives set forth in section 2501 (a) of this title by encouraging and providing for research, development, and application of dual-use critical technologies. The Secretary may make grants, enter into contracts, or enter into cooperative agreements and other transactions pursuant to section 2371 of this title in furtherance of the program. The Secretary shall identify projects to be conducted as part of the program.
(b) Assistance Authorized.— 
The Secretary of Defense may provide technical and other assistance to facilitate the achievement of the purposes of projects conducted under the program. In providing such assistance, the Secretary shall make available, as appropriate for the work to be performed, equipment and facilities of Department of Defense laboratories (including the scientists and engineers at those laboratories) for purposes of projects selected by the Secretary.
(c) Financial Commitment of Non-Federal Government Participants.— 

(1) The total amount of funds provided by the Federal Government for a project conducted under the program may not exceed 50 percent of the total cost of the project. However, the Secretary of Defense may agree to a project in which the total amount of funds provided by the Federal Government exceeds 50 percent if the Secretary determines the project is particularly meritorious, but the project would not otherwise have sufficient non-Federal funding or in-kind contributions.
(2) The Secretary may prescribe regulations to provide for consideration of in-kind contributions by non-Federal Government participants in a project conducted under the program for the purpose of calculating the share of the project costs that has been or is being undertaken by such participants. In such regulations, the Secretary may authorize a participant that is a small business concern to use funds received under the Small Business Innovation Research Program or the Small Business Technology Transfer Program to help pay the costs of project activities. Any such funds so used may be considered in calculating the amount of the financial commitment undertaken by the non-Federal Government participants unless the Secretary determines that the small business concern has not made a significant equity percentage contribution in the project from non-Federal sources.
(3) The Secretary shall consider a project proposal submitted by a small business concern without regard to the ability of the small business concern to immediately meet its share of the anticipated project costs. Upon the selection of a project proposal submitted by a small business concern, the small business concern shall have a period of not less than 120 days in which to arrange to meet its financial commitment requirements under the project from sources other than a person of a foreign country. If the Secretary determines upon the expiration of that period that the small business concern will be unable to meet its share of the anticipated project costs, the Secretary shall revoke the selection of the project proposal submitted by the small business concern.
(d) Selection Process.— 
Competitive procedures shall be used in the conduct of the program.
(e) Selection Criteria.— 
The criteria for the selection of projects under the program shall include the following:
(1) The extent to which the proposed project advances and enhances the national security objectives set forth in section 2501 (a) of this title.
(2) The technical excellence of the proposed project.
(3) The qualifications of the personnel proposed to participate in the research activities of the proposed project.
(4) An assessment of timely private sector investment in activities to achieve the goals and objectives of the proposed project other than through the project.
(5) The potential effectiveness of the project in the further development and application of each technology proposed to be developed by the project for the national technology and industrial base.
(6) The extent of the financial commitment of eligible firms to the proposed project.
(7) The extent to which the project does not unnecessarily duplicate projects undertaken by other agencies.
(f) Regulations.— 
The Secretary of Defense shall prescribe regulations for the purposes of this section.

2512, 2513. Repealed. Pub. L. 104106, div. A, title X, 1081(f), Feb. 10, 1996, 110 Stat. 454]

Section 2512, added Pub. L. 102–484, div. D, title XLII, 4222(a), Oct. 23, 1992, 106 Stat. 2679; amended Pub. L. 103–160, div. A, title XIII, 1315(b), Nov. 30, 1993, 107 Stat. 1787; Pub. L. 103–337, div. A, title XI, 1115(b), Oct. 5, 1994, 108 Stat. 2868, related to commercial-military integration partnerships. A prior section 2512, added Pub. L. 101–510, div. A, title VIII, 823(a)(3), Nov. 5, 1990, 104 Stat. 1600, related to responsibility of Secretary of Defense to provide management and planning, prior to repeal by Pub. L. 102–484, § 4202(a). Section 2513, added Pub. L. 102–190, div. A, title VIII, 821(a), Dec. 5, 1991, 105 Stat. 1428, 2524; renumbered 2513 and amended Pub. L. 102–484, div. D, title XLII, 4223(a)(f), Oct. 23, 1992, 106 Stat. 2681; Pub. L. 103–35, title II, § 201(d)(3), (e)(1), May 31, 1993, 107 Stat. 99; Pub. L. 103–160, div. A, title XI, 1182(g)(2), title XIII, 1315(c), 1316, Nov. 30, 1993, 107 Stat. 1774, 1787, 1789; Pub. L. 103–337, div. A, title XI, 1115(c), Oct. 5, 1994, 108 Stat. 2868, related to regional technology alliances assistance program. A prior section 2513, added Pub. L. 101–510, div. A, title VIII, 823(a)(3), Nov. 5, 1990, 104 Stat. 1601; amended Pub. L. 102–190, div. A, title II, 203(c), Dec. 5, 1991, 105 Stat. 1314, required annual National Defense Manufacturing Technology Plan, prior to repeal by Pub. L. 102–484, § 4202(a).

10 USC 2514 - Encouragement of technology transfer

(a) Encouragement of Transfer Required.— 
The Secretary of Defense shall encourage, to the extent consistent with national security objectives, the transfer of technology between laboratories and research centers of the Department of Defense and other Federal agencies, State and local governments, colleges and universities, and private persons in cases that are likely to result in accomplishing the objectives set forth in section 2501 (a) of this title.
(b) Examination and Implementation of Methods To Encourage Transfer.— 
The Secretary shall examine and implement methods, in addition to the encouragement referred to in subsection (a) and the program described in subsection (c), that are consistent with national security objectives and will enable Department of Defense personnel to promote technology transfer.
(c) Program To Encourage Diversification of Defense Laboratories.— 

(1) The Secretary of Defense shall establish and implement a program to be known as the Federal Defense Laboratory Diversification Program (hereinafter in this subsection referred to as the Program). The purpose of the Program shall be to encourage greater cooperation in research and production activities carried out by defense laboratories and by private industry of the United States in order to enhance and improve the products of such research and production activities.
(2) Under the Program, the defense laboratories, in coordination with the Office of Technology Transfer in the Office of the Secretary of Defense, shall carry out cooperative activities with private industry in order to promote (by the use or exchange of patents, licenses, cooperative research and development agreements and other cooperative agreements, and the use of symposia, meetings, and other similar mechanisms) the transfer of defense or dual-use technologies from the defense laboratories to private industry, and the development and application of such technologies by the defense laboratories and private industry, for the purpose of the commercial utilization of such technologies by private industry.
(3) The Secretary of Defense shall develop and annually update a plan for each defense laboratory that participates in the Program under which plan the laboratory shall carry out cooperative activities with private industry to promote the transfers described in subsection (b).
(4) In this subsection, the term defense laboratory means any laboratory owned or operated by the Department of Defense that carries out research in fiscal year 1993 in an amount in excess of $50,000,000.

10 USC 2515 - Office of Technology Transition

(a) Establishment.— 
The Secretary of Defense shall establish within the Office of the Secretary of Defense an Office of Technology Transition.
(b) Purpose.— 
The purpose of the office shall be to ensure, to the maximum extent practicable, that technology developed for national security purposes is integrated into the private sector of the United States in order to enhance national technology and industrial base, reinvestment, and conversion activities consistent with the objectives set forth in section 2501 (a) of this title.
(c) Duties.— 
The head of the office shall ensure that the office
(1) monitors all research and development activities that are carried out by or for the military departments and Defense Agencies;
(2) identifies all such research and development activities that use technologies, or result in technological advancements, having potential nondefense commercial applications;
(3) serves as a clearinghouse for, coordinates, and otherwise actively facilitates the transition of such technologies and technological advancements from the Department of Defense to the private sector;
(4) conducts its activities in consultation and coordination with the Department of Energy and the Department of Commerce; and
(5) provides private firms with assistance to resolve problems associated with security clearances, proprietary rights, and other legal considerations involved in such a transition of technology.
(d) Biennial Report.— 
The Secretary of Defense shall submit to the congressional defense committees a biennial report on the activities of the Office. The report shall be submitted each even-numbered year at the same time that the budget is submitted to Congress by the President pursuant to section 1105 of title 31. The report shall contain a discussion of the accomplishments of the Office during the two fiscal years preceding the fiscal year in which the report is submitted.

10 USC 2516 - Repealed. Pub. L. 104106, div. A, title X, 1081(g), Feb. 10, 1996, 110 Stat. 455]

Section, added Pub. L. 102–484, div. D, title XLII, 4226(a), Oct. 23, 1992, 106 Stat. 2684; amended Pub. L. 103–35, title II, § 201(g)(8), May 31, 1993, 107 Stat. 100, related to Military-Civilian Integration and Technology Transfer Advisory Board. A prior section 2516, added Pub. L. 101–510, div. A, title VIII, 823(a)(3), Nov. 5, 1990, 104 Stat. 1602, related to enhancement of concurrent engineering practices in design and development of weapon systems, prior to repeal by Pub. L. 102–484, § 4202(a).

10 USC 2517 - Office for Foreign Defense Critical Technology Monitoring and Assessment

(a) In General.— 
The Secretary of Defense shall establish within the Office of the Director of Defense Research and Engineering an office known as the Office for Foreign Defense Critical Technology Monitoring and Assessment (hereinafter in this section referred to as the Office).
(b) Relationship to Department of Commerce.— 
The head of the Office shall consult closely with appropriate officials of the Department of Commerce in order
(1) to minimize the duplication of any effort of the Department of Commerce by the Department of Defense regarding the monitoring of foreign activities related to defense critical technologies that have potential commercial uses; and
(2) to ensure that the Office is effectively utilized to disseminate information to users of such information within the Federal Government.
(c) Responsibilities.— 
The Office shall have the following responsibilities:
(1) To maintain within the Department of Defense a central library for the compilation and appropriate dissemination of unclassified and classified information and assessments regarding significant foreign activities in research, development, and applications of defense critical technologies.
(2) To establish and maintain
(A) a widely accessible unclassified data base of information and assessments regarding foreign science and technology activities that involve defense critical technologies, including, especially, activities in Europe and in Pacific Rim countries; and
(B) a classified data base of information and assessments regarding such activities.
(3) To perform liaison activities among the military departments, Defense Agencies, and other appropriate elements of the Department of Defense, with appropriate agencies and offices of the Department of Commerce and the Department of State, and with other departments and agencies of the Federal Government in order to ensure that significant activities in research, development, and applications of defense critical technologies are identified, monitored, and assessed by an appropriate department or agency of the Federal Government.
(4) To ensure the maximum practicable public availability of information and assessments contained in the unclassified data bases established pursuant to paragraph (2)
(A) by limiting, to the maximum practicable extent, restrictive classification of such information and assessments; and
(B) by disseminating to the National Technical Information Service of the Department of Commerce information and assessments regarding defense critical technologies having potential commercial uses.
(5) To disseminate through the National Technical Information Service of the Department of Commerce unclassified information and assessments regarding defense critical technologies having potential commercial uses so that such information and assessments may be further disseminated within the Federal Government and to the private sector.

10 USC 2518 - Overseas foreign critical technology monitoring and assessment financial assistance program

(a) Establishment and Purpose of Program.— 
The Secretary of Defense may establish a foreign critical technology monitoring and assessment program. Under the program, the Secretary may enter into cooperative arrangements with one or more eligible not-for-profit organizations in order to provide financial assistance for the establishment of foreign critical technology monitoring and assessment offices in Europe, Pacific Rim countries, and such other countries as the Secretary considers appropriate.
(b) Eligible Organizations.— 
Any not-for-profit industrial or professional organization that has economic and scientific interests in research, development, and applications of dual-use critical technologies is eligible to enter into a cooperative arrangement referred to in subsection (a).

10 USC 2519 - Federal Defense Laboratory Diversification Program

(a) Establishment of Program.— 
The Secretary of Defense shall conduct a program in accordance with this section for the purpose of promoting cooperation between Department of Defense laboratories and industry on research and development of dual-use technologies in order to further the national security objectives set forth in section 2501 (a) of this title.
(b) Partnerships.— 

(1) The Secretary shall provide for the establishment under the program of cooperative arrangements (hereinafter in this section referred to as partnerships) between a Department of Defense laboratory and eligible firms and nonprofit research corporations. A partnership may also include one or more additional Federal laboratories, institutions of higher education, agencies of State and local governments, and other entities, as determined appropriate by the Secretary.
(2) For purposes of this section, a federally funded research and development center shall be considered a Department of Defense laboratory if the center is sponsored by the Department of Defense.
(c) Assistance Authorized.— 

(1) The Secretary may make grants, enter into contracts, enter into cooperative agreements and other transactions pursuant to section 2371 of this title, and enter into cooperative research and development agreements under section 12 of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3710a) in order to establish partnerships.
(2) Subject to subsection (d), the Secretary may provide a partnership with technical and other assistance in order to facilitate the achievement of the purpose of this section.
(d) Financial Commitment of Non-Federal Government Participants.— 

(1) The Secretary shall ensure that the non-Federal Government participants in a partnership make a substantial contribution to the total cost of partnership activities. The amount of the contribution shall be commensurate with the risk undertaken by such participants and the potential benefits of the activities for such participants.
(2) The regulations prescribed pursuant to section 2511 (c)(2) of this title shall apply to in-kind contributions made by non-Federal Government participants in a partnership.
(e) Selection Process.— 
Competitive procedures shall be used in the establishment of partnerships.
(f) Selection Criteria.— 
The criteria for the selection of a proposed partnership for establishment under this section shall include the criteria set forth in section 2511 (e) of this title.
(g) Regulations.— 
The Secretary shall prescribe regulations for the purposes of this section.

10 USC 2520 - Repealed. Pub. L. 104106, div. A, title X, 1081(f), Feb. 10, 1996, 110 Stat. 454]

Section, added Pub. L. 103–337, div. A, title XI, 1113(b), Oct. 5, 1994, 108 Stat. 2865, related to Navy Reinvestment Program.

TITLE 10 - US CODE - SUBCHAPTER IV - MANUFACTURING TECHNOLOGY

10 USC 2521 - Manufacturing Technology Program

(a) Establishment.— 
The Secretary of Defense shall establish a Manufacturing Technology Program to further the national security objectives of section 2501 (a) of this title through the development and application of advanced manufacturing technologies and processes that will reduce the acquisition and supportability costs of defense weapon systems and reduce manufacturing and repair cycle times across the life cycles of such systems. The Secretary shall use the joint planning process of the directors of the Department of Defense laboratories in establishing the program. The Under Secretary of Defense for Acquisition, Technology, and Logistics shall administer the program.
(b) Purpose of Program.— 
The Secretary of Defense shall use the program
(1) to provide centralized guidance and direction (including goals, milestones, and priorities) to the military departments and the Defense Agencies on all matters relating to manufacturing technology;
(2) to direct the development and implementation of Department of Defense plans, programs, projects, activities, and policies that promote the development and application of advanced technologies to manufacturing processes, tools, and equipment;
(3) to improve the manufacturing quality, productivity, technology, and practices of businesses and workers providing goods and services to the Department of Defense;
(4) to focus Department of Defense support for the development and application of advanced manufacturing technologies and processes for use to meet manufacturing requirements that are essential to the national defense, as well as for repair and remanufacturing in support of the operations of systems commands, depots, air logistics centers, and shipyards;
(5) to disseminate information concerning improved manufacturing improvement concepts, including information on such matters as best manufacturing practices, product data exchange specifications, computer-aided acquisition and logistics support, and rapid acquisition of manufactured parts;
(6) to sustain and enhance the skills and capabilities of the manufacturing work force;
(7) to promote high-performance work systems (with development and dissemination of production technologies that build upon the skills and capabilities of the work force), high levels of worker education and training; and
(8) to ensure appropriate coordination between the manufacturing technology programs and industrial preparedness programs of the Department of Defense and similar programs undertaken by other departments and agencies of the Federal Government or by the private sector.
(c) Execution.— 

(1) The Secretary may carry out projects under the program through the Secretaries of the military departments and the heads of the Defense Agencies.
(2) In the establishment and review of requirements for an advanced manufacturing technology or process, the Secretary shall ensure the participation of those prospective technology users that are expected to be the users of that technology or process.
(3) The Secretary shall ensure that each project under the program for the development of an advanced manufacturing technology or process includes an implementation plan for the transition of that technology or process to the prospective technology users that will be the users of that technology or process.
(4) In the periodic review of a project under the program, the Secretary shall ensure participation by those prospective technology users that are the expected users for the technology or process being developed under the project.
(5) In order to promote increased dissemination and use of manufacturing technology throughout the national defense technology and industrial base, the Secretary shall seek, to the maximum extent practicable, the participation of manufacturers of manufacturing equipment in the projects under the program.
(6) In this subsection, the term prospective technology users means the following officials and elements of the Department of Defense:
(A) Program and project managers for defense weapon systems.
(B) Systems commands.
(C) Depots.
(D) Air logistics centers.
(E) Shipyards.
(d) Competition and Cost Sharing.— 

(1) In accordance with the policy stated in section 2374 of this title, competitive procedures shall be used for awarding all grants and entering into all contracts, cooperative agreements, and other transactions under the program.
(2) Under the competitive procedures used, the factors to be considered in the evaluation of each proposed grant, contract, cooperative agreement, or other transaction for a project under the program shall include the extent to which that proposed transaction provides for the proposed recipient to share in the cost of the project. For a project for which the Government receives an offer from only one offeror, the contracting officer shall negotiate the ratio of contract recipient cost to Government cost that represents the best value to the Government.
(e) Five-Year Strategic Plan.— 

(1) The Secretary shall develop a plan for the program that includes the following:
(A) The overall manufacturing technology goals, milestones, priorities, and investment strategy for the program.
(B) The objectives of, and funding for, the program for each military department and each Defense Agency that shall participate in the program during the period of the plan.
(2) The Secretary shall include in the plan mechanisms for assessing the effectiveness of the program under the plan.
(3) The Secretary shall update the plan on a biennial basis.
(4) Each plan, and each update to the plan, shall cover a period of five fiscal years.

10 USC 2522 - Armament retooling and manufacturing

The Secretary of the Army is authorized by chapter 434 of this title to carry out programs for the support of armaments retooling and manufacturing in the national defense industrial and technology base.

2523, 2524. Repealed. Pub. L. 104106, div. A, title X, 1081(f), Feb. 10, 1996, 110 Stat. 454]

Section 2523, added Pub. L. 101–510, div. A, title VIII, 823(a)(3), Nov. 5, 1990, 104 Stat. 1602, 2517; amended Pub. L. 102–190, div. A, title VIII, 824(a), Dec. 5, 1991, 105 Stat. 1436; renumbered 2523 and amended Pub. L. 102–484, div. D, title XLII, 4233(a), (b), Oct. 23, 1992, 106 Stat. 2687; Pub. L. 103–160, div. A, title IX, 904(d)(1), title XI, 1182(b)(2), title XIII, 1315(d), Nov. 30, 1993, 107 Stat. 1728, 1772, 1787, related to manufacturing extension programs. A prior section 2523, added Pub. L. 102–190, div. A, title VIII, 821(a), Dec. 5, 1991, 105 Stat. 1427, related to defense dual-use critical technology partnerships, prior to repeal and restatement in section 2511 of this title by Pub. L. 102–484, §§ 4202(a), 4221 (a). Section 2524, added Pub. L. 102–484, div. D, title XLII, 4234(a), Oct. 23, 1992, 106 Stat. 2687; amended Pub. L. 103–35, title II, § 201(g)(9), May 31, 1993, 107 Stat. 100; Pub. L. 103–160, div. A, title XIII, 1314, 1315 (e), Nov. 30, 1993, 107 Stat. 1786, 1788; Pub. L. 103–337, div. A, title X, 1070(b)(10), title XI, 1114(b), (c), 1115 (d), Oct. 5, 1994, 108 Stat. 2857, 28672869; Pub. L. 104–106, div. A, title XV, 1503(a)(27), Feb. 10, 1996, 110 Stat. 512, related to defense dual-use assistance extension program. A prior section 2524 was renumbered section 2513 of this title.

10 USC 2525 - Renumbered 2521]

TITLE 10 - US CODE - SUBCHAPTER V - MISCELLANEOUS TECHNOLOGY BASE POLICIES AND PROGRAMS

10 USC 2531 - Defense memoranda of understanding and related agreements

(a) Considerations in Making and Implementing MOUs and Related Agreements.— 
In the negotiation, renegotiation, and implementation of any existing or proposed memorandum of understanding, or any existing or proposed agreement related to a memorandum of understanding, between the Secretary of Defense, acting on behalf of the United States, and one or more foreign countries (or any instrumentality of a foreign country) relating to research, development, or production of defense equipment, or to the reciprocal procurement of defense items, the Secretary of Defense shall
(1) consider the effects of such existing or proposed memorandum of understanding or related agreement on the defense technology and industrial base of the United States; and
(2) regularly solicit and consider comments and recommendations from the Secretary of Commerce with respect to the commercial implications of such memorandum of understanding or related agreement and the potential effects of such memorandum of understanding or related agreement on the international competitive position of United States industry.
(b) Inter-Agency Review of Effects on United States Industry.— 
Whenever the Secretary of Commerce has reason to believe that an existing or proposed memorandum of understanding or related agreement has, or threatens to have, a significant adverse effect on the international competitive position of United States industry, the Secretary may request an inter-agency review of the memorandum of understanding or related agreement. If, as a result of the review, the Secretary determines that the commercial interests of the United States are not being served or would not be served by adhering to the terms of such existing memorandum or related agreement or agreeing to such proposed memorandum or related agreement, as the case may be, the Secretary shall recommend to the President the renegotiation of the existing memorandum or related agreement or any modification to the proposed memorandum of understanding or related agreement that he considers necessary to ensure an appropriate balance of interests.
(c) Limitation on Entering into MOUs and Related Agreements.— 
A memorandum of understanding or related agreement referred to in subsection (a) may not be entered into or implemented if the President, taking into consideration the results of the inter-agency review, determines that such memorandum of understanding or related agreement has or is likely to have a significant adverse effect on United States industry that outweighs the benefits of entering into or implementing such memorandum or agreement.

10 USC 2532 - Offset policy; notification

(a) Establishment of Offset Policy.— 
The President shall establish, consistent with the requirements of this section, a comprehensive policy with respect to contractual offset arrangements in connection with the purchase of defense equipment or supplies which addresses the following:
(1) Transfer of technology in connection with offset arrangements.
(2) Application of offset arrangements, including cases in which United States funds are used to finance the purchase by a foreign government.
(3) Effects of offset arrangements on specific subsectors of the industrial base of the United States and for preventing or ameliorating any serious adverse effects on such subsectors.
(b) Technology Transfer.— 

(1) No official of the United States may enter into a memorandum of understanding or other agreement with a foreign government that would require the transfer of United States defense technology to a foreign country or a foreign firm in connection with a contract that is subject to an offset arrangement if the implementation of such memorandum or agreement would significantly and adversely affect the defense industrial base of the United States and would result in a substantial financial loss to a United States firm.
(2) Paragraph (1) shall not apply in the case of a memorandum of understanding or agreement described in paragraph (1) if the Secretary of Defense, in consultation with the Secretary of Commerce and the Secretary of State, determines that a transfer of United States defense technology pursuant to such understanding or agreement will result in strengthening the national security of the United States and so certifies to Congress.
(3) If a United States firm is required under the terms of a memorandum of understanding, or other agreement entered into by the United States with a foreign country, to transfer defense technology to a foreign country, the United States firm may protest the determination to the Secretary of Defense on the grounds that the transfer of such technology would adversely affect the defense industrial base of the United States and would result in substantial financial loss to the protesting firm. The Secretary of Defense, in consultation with the Secretary of Commerce and the Secretary of State, shall make the final determination of the validity of the protesting firms claim.
(c) Notification Regarding Offsets.— 
If at any time a United States firm enters into a contract for the sale of a weapon system or defense-related item to a foreign country or foreign firm and such contract is subject to an offset arrangement exceeding $50,000,000 in value, such firm shall notify the Secretary of Defense of the proposed sale. Notification shall be made under this subsection in accordance with regulations prescribed by the Secretary of Defense in consultation with the Secretary of Commerce.
(d) Definitions.— 
In this section:
(1) The term United States firm means a business entity that performs substantially all of its manufacturing, production, and research and development activities in the United States.
(2) The term foreign firm means a business entity other than a United States firm.

10 USC 2533 - Determinations of public interest under the Buy American Act

(a) In determining under section 2 of the Buy American Act (41 U.S.C. 10a) whether application of such Act is inconsistent with the public interest, the Secretary of Defense shall consider the following:
(1) The bids or proposals of small business firms in the United States which have offered to furnish American goods.
(2) The bids or proposals of all other firms in the United States which have offered to furnish American goods.
(3) The United States balance of payments.
(4) The cost of shipping goods which are other than American goods.
(5) Any duty, tariff, or surcharge which may enter into the cost of using goods which are other than American goods.
(6) A need to ensure that the Department of Defense has access to advanced, state-of-the-art commercial technology.
(7) The need to protect the national technology and industrial base, to preserve and enhance the national technology employment base, and to provide for a defense mobilization base.
(8) A need to ensure that application of different rules of origin for United States end items and foreign end items does not result in an award to a firm other than a firm providing a product produced in the United States.
(9) Any need
(A) to maintain the same source of supply for spare and replacement parts for an end item that qualifies as an American good; or
(B) to maintain the same source of supply for spare and replacement parts in order not to impair integration of the military and commercial industrial base.
(10) The national security interests of the United States.
(b) In this section, the term goods which are other than American goods means
(1) an end product that is not mined, produced, or manufactured in the United States; or
(2) an end product that is manufactured in the United States but which includes components mined, produced, or manufactured outside the United States the aggregate cost of which exceeds the aggregate cost of the components of such end product that are mined, produced, or manufactured in the United States.

10 USC 2533a - Requirement to buy certain articles from American sources; exceptions

(a) Requirement.— 
Except as provided in subsections (c) through (h), funds appropriated or otherwise available to the Department of Defense may not be used for the procurement of an item described in subsection (b) if the item is not grown, reprocessed, reused, or produced in the United States.
(b) Covered Items.— 
An item referred to in subsection (a) is any of the following:
(1) An article or item of
(A) food;
(B) clothing and the materials and components thereof, other than sensors, electronics, or other items added to, and not normally associated with, clothing (and the materials and components thereof);
(C) tents, tarpaulins, or covers;
(D) cotton and other natural fiber products, woven silk or woven silk blends, spun silk yarn for cartridge cloth, synthetic fabric or coated synthetic fabric (including all textile fibers and yarns that are for use in such fabrics), canvas products, or wool (whether in the form of fiber or yarn or contained in fabrics, materials, or manufactured articles); or
(E) any item of individual equipment manufactured from or containing such fibers, yarns, fabrics, or materials.
(2) Hand or measuring tools.
(c) Availability Exception.— 
Subsection (a) does not apply to the extent that the Secretary of Defense or the Secretary of the military department concerned determines that satisfactory quality and sufficient quantity of any such article or item described in subsection (b)(1) grown, reprocessed, reused, or produced in the United States cannot be procured as and when needed at United States market prices.
(d) Exception for Certain Procurements.— 
Subsection (a) does not apply to the following:
(1) Procurements outside the United States in support of combat operations or procurements of any item listed in subsection (b)(1)(A), (b)(2), or (b)(3) in support of contingency operations.
(2) Procurements by vessels in foreign waters.
(3) Emergency procurements or procurements of perishable foods by, or for, an establishment located outside the United States for the personnel attached to such establishment.
(4) Procurements of any item listed in subsection (b)(1)(A), (b)(2), or (b)(3) for which the use of procedures other than competitive procedures has been approved on the basis of section 2304 (c)(2) of this title, relating to unusual and compelling urgency of need.
(e) Exception for Chemical Warfare Protective Clothing.— 
Subsection (a) does not preclude the procurement of chemical warfare protective clothing produced outside the United States if
(1) such procurement is necessary
(A) to comply with agreements with foreign governments requiring the United States to purchase supplies from foreign sources for the purposes of offsetting sales made by the United States Government or United States firms under approved programs serving defense requirements; or
(B) in furtherance of agreements with foreign governments in which both such governments agree to remove barriers to purchases of supplies produced in the other country or services performed by sources of the other country; and
(2) any such agreement with a foreign government complies, where applicable, with the requirements of section 36 of the Arms Export Control Act (22 U.S.C. 2776) and with section 2457 of this title.
(f) Exceptions for Certain Other Commodities and Items.— 
Subsection (a) does not preclude the procurement of the following:
(1) Foods manufactured or processed in the United States.
(2) Waste and byproducts of cotton and wool fiber for use in the production of propellants and explosives.
(g) Exception for Commissaries, Exchanges, and Other Nonappropriated Fund Instrumentalities.— 
Subsection (a) does not apply to items purchased for resale purposes in commissaries, exchanges, or nonappropriated fund instrumentalities operated by the Department of Defense.
(h) Exception for Small Purchases.— 
Subsection (a) does not apply to purchases for amounts not greater than the simplified acquisition threshold referred to in section 2304 (g) of this title.
(i) Applicability to Contracts and Subcontracts for Procurement of Commercial Items.— 
This section is applicable to contracts and subcontracts for the procurement of commercial items notwithstanding section 34 of the Office of Federal Procurement Policy Act (41 U.S.C. 430).
(j) Geographic Coverage.— 
In this section, the term United States includes the possessions of the United States.
(k) Notification Required Within 7 Days After Contract Award If Certain Exceptions Applied.— 
In the case of any contract for the procurement of an item described in subparagraph (B), (C), (D), or (E) of subsection (b)(1), if the Secretary of Defense or of the military department concerned applies an exception set forth in subsection (c) or (e) with respect to that contract, the Secretary shall, not later than 7 days after the award of the contract, post a notification that the exception has been applied on the Internet site maintained by the General Services Administration known as FedBizOps.gov[1] (or any successor site).
[1] See References in Text note below.

10 USC 2533b - Requirement to buy strategic materials critical to national security from American sources; exceptions

(a) Requirement.— 
Except as provided in subsections (b) through (m), the acquisition by the Department of Defense of the following items is prohibited:
(1) The following types of end items, or components thereof, containing a specialty metal not melted or produced in the United States: aircraft, missile and space systems, ships, tank and automotive items, weapon systems, or ammunition.
(2) A specialty metal that is not melted or produced in the United States and that is to be purchased directly by the Department of Defense or a prime contractor of the Department.
(b) Availability Exception.— 

(1) Subsection (a) does not apply to the extent that the Secretary of Defense or the Secretary of the military department concerned determines that compliant specialty metal of satisfactory quality and sufficient quantity, and in the required form, cannot be procured as and when needed. For purposes of the preceding sentence, the term compliant specialty metal means specialty metal melted or produced in the United States.
(2) This subsection applies to prime contracts and subcontracts at any tier under such contracts.
(c) Exception for Certain Acquisitions.— 
Subsection (a) does not apply to the following:
(1) Acquisitions outside the United States in support of combat operations or in support of contingency operations.
(2) Acquisitions for which the use of procedures other than competitive procedures has been approved on the basis of section 2304 (c)(2) of this title, relating to unusual and compelling urgency of need.
(d) Exception Relating to Agreements With Foreign Governments.— 
Subsection (a)(1) does not preclude the acquisition of a specialty metal if
(1) the acquisition is necessary
(A) to comply with agreements with foreign governments requiring the United States to purchase supplies from foreign sources for the purposes of offsetting sales made by the United States Government or United States firms under approved programs serving defense requirements; or
(B) in furtherance of agreements with foreign governments in which both such governments agree to remove barriers to purchases of supplies produced in the other country or services performed by sources of the other country; and
(2) any such agreement with a foreign government complies, where applicable, with the requirements of section 36 of the Arms Export Control Act (22 U.S.C. 2776) and with section 2457 of this title.
(e) Exception for Commissaries, Exchanges, and Other Nonappropriated Fund Instrumentalities.— 
Subsection (a) does not apply to items purchased for resale purposes in commissaries, exchanges, and nonappropriated fund instrumentalities operated by the Department of Defense.
(f) Exception for Small Purchases.— 
Subsection (a) does not apply to acquisitions in amounts not greater than the simplified acquisition threshold referred to in section 2304 (g) of this title.
(g) Exception for Purchases of Electronic Components.— 
Subsection (a) does not apply to acquisitions of electronic components, unless the Secretary of Defense, upon the recommendation of the Strategic Materials Protection Board pursuant to section 187 of this title, determines that the domestic availability of a particular electronic component is critical to national security.
(h) Applicability to Acquisitions of Commercial Items.— 

(1) Except as provided in paragraphs (2) and (3), this section applies to acquisitions of commercial items, notwithstanding sections 34 and 35 of the Office of Federal Procurement Policy Act (41 U.S.C. 430 and 431).
(2) This section does not apply to contracts or subcontracts for the acquisition of commercially available off-the-shelf items, as defined in section 35(c) of the Office of Federal Procurement Policy Act (41 U.S.C. 431 (c)), other than
(A) contracts or subcontracts for the acquisition of specialty metals, including mill products, such as bar, billet, slab, wire, plate and sheet, that have not been incorporated into end items, subsystems, assemblies, or components;
(B) contracts or subcontracts for the acquisition of forgings or castings of specialty metals, unless such forgings or castings are incorporated into commercially available off-the-shelf end items, subsystems, or assemblies;
(C) contracts or subcontracts for commercially available high performance magnets unless such high performance magnets are incorporated into commercially available off-the-shelf-end items or subsystems; and
(D) contracts or subcontracts for commercially available off-the-shelf fasteners, unless such fasteners are
(i) incorporated into commercially available off-the-shelf end items, subsystems, assemblies, or components; or
(ii) purchased as provided in paragraph (3).
(3) This section does not apply to fasteners that are commercial items that are purchased under a contract or subcontract with a manufacturer of such fasteners, if the manufacturer has certified that it will purchase, during the relevant calendar year, an amount of domestically melted specialty metal, in the required form, for use in the production of such fasteners for sale to the Department of Defense and other customers, that is not less than 50 percent of the total amount of the specialty metal that it will purchase to carry out the production of such fasteners.
(i) Exceptions for Purchases of Specialty Metals Below Minimum Threshold.— 

(1) Notwithstanding subsection (a), the Secretary of Defense or the Secretary of a military department may accept delivery of an item containing specialty metals that were not melted in the United States if the total amount of noncompliant specialty metals in the item does not exceed 2 percent of the total weight of specialty metals in the item.
(2) This subsection does not apply to high performance magnets.
(j) Streamlined Compliance for Commercial Derivative Military Articles.— 

(1) Subsection (a) shall not apply to an item acquired under a prime contract if the Secretary of Defense or the Secretary of a military department determines that
(A) the item is a commercial derivative military article; and
(B) the contractor certifies that the contractor and its subcontractors have entered into a contractual agreement, or agreements, to purchase an amount of domestically melted specialty metal in the required form, for use during the period of contract performance in the production of the commercial derivative military article and the related commercial article, that is not less than the greater of
(i) an amount equivalent to 120 percent of the amount of specialty metal that is required to carry out the production of the commercial derivative military article (including the work performed under each subcontract); or
(ii) an amount equivalent to 50 percent of the amount of specialty metal that is purchased by the contractor and its subcontractors for use during such period in the production of the commercial derivative military article and the related commercial article.
(2) For the purposes of this subsection, the amount of specialty metal that is required to carry out the production of the commercial derivative military article includes specialty metal contained in any item, including commercially available off-the-shelf items, incorporated into such commercial derivative military article.
(k) National Security Waiver.— 

(1) Notwithstanding subsection (a), the Secretary of Defense may accept the delivery of an end item containing noncompliant materials if the Secretary determines in writing that acceptance of such end item is necessary to the national security interests of the United States.
(2) A written determination under paragraph (1)
(A) may not be delegated below the level of the Deputy Secretary of Defense or the Under Secretary of Defense for Acquisition, Technology, and Logistics;
(B) shall specify the quantity of end items to which the waiver applies and the time period over which the waiver applies; and
(C) shall be provided to the congressional defense committees prior to making such a determination (except that in the case of an urgent national security requirement, such certification may be provided to the defense committees up to 7 days after it is made).
(3) 
(A) In any case in which the Secretary makes a determination under paragraph (1), the Secretary shall determine whether or not the noncompliance was knowing and willful.
(B) If the Secretary determines that the noncompliance was not knowing or willful, the Secretary shall ensure that the contractor or subcontractor responsible for the noncompliance develops and implements an effective plan to ensure future compliance.
(C) If the Secretary determines that the noncompliance was knowing or willful, the Secretary shall
(i) require the development and implementation of a plan to ensure future compliance; and
(ii) consider suspending or debarring the contractor or subcontractor until such time as the contractor or subcontractor has effectively addressed the issues that lead to such noncompliance.
(l) Specialty Metal Defined.— 
In this section, the term specialty metal means any of the following:
(1) Steel
(A) with a maximum alloy content exceeding one or more of the following limits: manganese, 1.65 percent; silicon, 0.60 percent; or copper, 0.60 percent; or
(B) containing more than 0.25 percent of any of the following elements: aluminum, chromium, cobalt, columbium, molybdenum, nickel, titanium, tungsten, or vanadium.
(2) Metal alloys consisting of nickel, iron-nickel, and cobalt base alloys containing a total of other alloying metals (except iron) in excess of 10 percent.
(3) Titanium and titanium alloys.
(4) Zirconium and zirconium base alloys.
(m) Additional Definitions.— 
In this section:
(1) The term United States includes possessions of the United States.
(2) The term component has the meaning provided in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403).
(3) The term acquisition has the meaning provided in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403).
(4) The term required form shall not apply to end items or to their components at any tier. The term required form means in the form of mill product, such as bar, billet, wire, slab, plate or sheet, and in the grade appropriate for the production of
(A) a finished end item delivered to the Department of Defense; or
(B) a finished component assembled into an end item delivered to the Department of Defense.
(5) The term commercially available off-the-shelf, has the meaning provided in section 35(c) of the Office of Federal Procurement Policy Act (41 U.S.C. 431 (c)).
(6) The term assemblies means items forming a portion of a system or subsystem that can be provisioned and replaced as an entity and which incorporates multiple, replaceable parts.
(7) The term commercial derivative military article means an item procured by the Department of Defense that is or will be produced using the same production facilities, a common supply chain, and the same or similar production processes that are used for the production of articles predominantly used by the general public or by nongovernmental entities for purposes other than governmental purposes.
(8) The term subsystem means a functional grouping of items that combine to perform a major function within an end item, such as electrical power, attitude control, and propulsion.
(9) The term end item means the final production product when assembled or completed, and ready for issue, delivery, or deployment.
(10) The term subcontract includes a subcontract at any tier.

10 USC 2534 - Miscellaneous limitations on the procurement of goods other than United States goods

(a) Limitation on Certain Procurements.— 
The Secretary of Defense may procure any of the following items only if the manufacturer of the item satisfies the requirements of subsection (b):
(1) Buses.— 
Multipassenger motor vehicles (buses).
(2) Chemical weapons antidote.— 
Chemical weapons antidote contained in automatic injectors (and components for such injectors).
(3) Components for naval vessels.— 

(A) The following components:
(i) Air circuit breakers.
(ii) Welded shipboard anchor and mooring chain with a diameter of four inches or less.
(iii) Vessel propellers with a diameter of six feet or more.
(B) The following components of vessels, to the extent they are unique to marine applications: gyrocompasses, electronic navigation chart systems, steering controls, pumps, propulsion and machinery control systems, and totally enclosed lifeboats.
(4) Valves and machine tools.— 
Items in the following categories:
(A) Powered and non-powered valves in Federal Supply Classes 4810 and 4820 used in piping for naval surface ships and submarines.
(B) Machine tools in the Federal Supply Classes for metal-working machinery numbered 3405, 3408, 3410 through 3419, 3426, 3433, 3438, 3441 through 3443, 3445, 3446, 3448, 3449, 3460, and 3461.
(5) Ball bearings and roller bearings.— 
Ball bearings and roller bearings, in accordance with subpart 225.71 of part 225 of the Defense Federal Acquisition Regulation Supplement, as in effect on October 23, 1992, except ball bearings and roller bearings being procured for use in an end product manufactured by a manufacturer that does not satisfy the requirements of subsection (b) or in a component part manufactured by such a manufacturer.
(b) Manufacturer in the National Technology and Industrial Base.— 

(1) General requirement.— 
A manufacturer meets the requirements of this subsection if the manufacturer is part of the national technology and industrial base.
(2) Manufacturers of chemical weapons antidote.— 
In the case of a procurement of chemical weapons antidote referred to in subsection (a)(2), a manufacturer meets the requirements of this subsection only if the manufacturer
(A) meets the requirement set forth in paragraph (1);
(B) is an existing producer under the industrial preparedness program at the time the contract is awarded;
(C) has received all required regulatory approvals; and
(D) when the contract for the procurement is awarded, has in existence in the national technology and industrial base the plant, equipment, and personnel necessary to perform the contract.
(3) Manufacturer of vessel propellers.— 
In the case of a procurement of vessel propellers referred to in subsection (a)(3)(A)(iii), the manufacturer of the propellers meets the requirements of this subsection only if
(A) the manufacturer meets the requirements set forth in paragraph (1); and
(B) all castings incorporated into such propellers are poured and finished in the United States.
(c) Applicability to Certain Items.— 

(1) Components for naval vessels.— 
Subsection (a) does not apply to a procurement of spare or repair parts needed to support components for naval vessels produced or manufactured outside the United States.
(2) Valves and machine tools.— 

(A) Contracts to which subsection (a) applies include the following contracts for the procurement of items described in paragraph (4) of such subsection:
(i) A contract for procurement of such an item for use in property under the control of the Department of Defense, including any Government-owned, contractor-operated facility.
(ii) A contract that is entered into by a contractor on behalf of the Department of Defense for the purpose of providing such an item to another contractor as Government-furnished equipment.
(B) In any case in which a contract for items described in subsection (a)(4) includes the procurement of more than one Federal Supply Class of machine tools or machine tools and accessories, each supply class shall be evaluated separately for purposes of determining whether the limitation in subsection (a) applies.
(C) Subsection (a)(4) and this paragraph shall cease to be effective on October 1, 1996.
(3) Ball bearings and roller bearings.— 
Subsection (a)(5) and this paragraph shall cease to be effective on October 1, 2005.
(4) Vessel propellers.— 
Subsection (a)(3)(A)(iii) and this paragraph shall cease to be effective on February 10, 1998.
(d) Waiver Authority.— 
The Secretary of Defense may waive the limitation in subsection (a) with respect to the procurement of an item listed in that subsection if the Secretary determines that any of the following apply:
(1) Application of the limitation would cause unreasonable costs or delays to be incurred.
(2) United States producers of the item would not be jeopardized by competition from a foreign country, and that country does not discriminate against defense items produced in the United States to a greater degree than the United States discriminates against defense items produced in that country.
(3) Application of the limitation would impede cooperative programs entered into between the Department of Defense and a foreign country, or would impede the reciprocal procurement of defense items under a memorandum of understanding providing for reciprocal procurement of defense items that is entered into under section 2531 of this title, and that country does not discriminate against defense items produced in the United States to a greater degree than the United States discriminates against defense items produced in that country.
(4) Satisfactory quality items manufactured by an entity that is part of the national technology and industrial base (as defined in section 2500 (1) of this title) are not available.
(5) Application of the limitation would result in the existence of only one source for the item that is an entity that is part of the national technology and industrial base (as defined in section 2500 (1) of this title).
(6) The procurement is for an amount less than the simplified acquisition threshold and simplified purchase procedures are being used.
(7) Application of the limitation is not in the national security interests of the United States.
(8) Application of the limitation would adversely affect a United States company.
(e) Sonobuoys.— 

(1) Limitation.— 
The Secretary of Defense may not procure a sonobuoy manufactured in a foreign country if United States firms that manufacture sonobuoys are not permitted to compete on an equal basis with foreign manufacturing firms for the sale of sonobuoys in that foreign country.
(2) Waiver authority.— 
The Secretary may waive the limitation in paragraph (1) with respect to a particular procurement of sonobuoys if the Secretary determines that such procurement is in the national security interests of the United States.
(3) Definition.— 
In this subsection, the term United States firm has the meaning given such term in section 2532 (d)(1) of this title.
(f) Principle of Construction With Future Laws.— 
A provision of law may not be construed as modifying or superseding the provisions of this section, or as requiring funds to be limited, or made available, by the Secretary of Defense to a particular domestic source by contract, unless that provision of law
(1) specifically refers to this section;
(2) specifically states that such provision of law modifies or supersedes the provisions of this section; and
(3) specifically identifies the particular domestic source involved and states that the contract to be awarded pursuant to such provision of law is being awarded in contravention of this section.
(g) Inapplicability to Contracts under Simplified Acquisition Threshold.— 

(1) This section does not apply to a contract or subcontract for an amount that does not exceed the simplified acquisition threshold.
(2) Paragraph (1) does not apply to contracts for items described in subsection (a)(5) (relating to ball bearings and roller bearings), notwithstanding section 33 of the Office of Federal Procurement Policy Act (41 U.S.C. 429).
(h) Implementation of Naval Vessel Component Limitation.— 
In implementing subsection (a)(3)(B), the Secretary of Defense
(1) may not use contract clauses or certifications; and
(2) shall use management and oversight techniques that achieve the objective of the subsection without imposing a significant management burden on the Government or the contractor involved.
(i) Implementation of Certain Waiver Authority.— 

(1) The Secretary of Defense may exercise the waiver authority described in paragraph (2) only if the waiver is made for a particular item listed in subsection (a) and for a particular foreign country.
(2) This subsection applies to the waiver authority provided by subsection (d) on the basis of the applicability of paragraph (2) or (3) of that subsection.
(3) The waiver authority described in paragraph (2) may not be delegated below the Under Secretary of Defense for Acquisition, Technology, and Logistics.
(4) At least 15 days before the effective date of any waiver made under the waiver authority described in paragraph (2), the Secretary shall publish in the Federal Register and submit to the congressional defense committees a notice of the determination to exercise the waiver authority.
(5) Any waiver made by the Secretary under the waiver authority described in paragraph (2) shall be in effect for a period not greater than one year, as determined by the Secretary.
(j) Inapplicability to Certain Contracts To Purchase Ball Bearings or Roller Bearings.— 

(1) This section does not apply with respect to a contract or subcontract to purchase items described in subsection (a)(5) (relating to ball bearings and roller bearings) for which
(A) the amount of the purchase does not exceed $2,500;
(B) the precision level of the ball or roller bearings to be procured under the contract or subcontract is rated lower than the rating known as Annual Bearing Engineering Committee (ABEC) 5 or Roller Bearing Engineering Committee (RBEC) 5, or an equivalent of such rating;
(C) at least two manufacturers in the national technology and industrial base that are capable of producing the ball or roller bearings have not responded to a request for quotation issued by the contracting activity for that contract or subcontract; and
(D) no bearing to be procured under the contract or subcontract has a basic outside diameter (exclusive of flange diameters) in excess of 30 millimeters.
(2) Paragraph (1) does not apply to a purchase if such purchase would result in the total amount of purchases of ball bearings and roller bearings to satisfy requirements under Department of Defense contracts, using the authority provided in such paragraph, to exceed $200,000 during the fiscal year of such purchase.

10 USC 2535 - Defense Industrial Reserve

(a) Declaration of Purpose and Policy.— 
It is the intent of Congress
(1) to provide a comprehensive and continuous program for the future safety and for the defense of the United States by providing adequate measures whereby an essential nucleus of Government-owned industrial plants and an industrial reserve of machine tools and other industrial manufacturing equipment may be assured for immediate use to supply the needs of the armed forces in time of national emergency or in anticipation thereof;
(2) that such Government-owned plants and such reserve shall not exceed in number or kind the minimum requirements for immediate use in time of national emergency, and that any such items which shall become excess to such requirements shall be disposed of as expeditiously as possible;
(3) that to the maximum extent practicable, reliance will be placed upon private industry for support of defense production; and
(4) that machine tools and other industrial manufacturing equipment may be held in plant equipment packages or in a general reserve to maintain a high state of readiness for production of critical items of defense materiel, to provide production capacity not available in private industry for defense materiel, or to assist private industry in time of national disaster.
(b) Powers and Duties of the Secretary of Defense.— 

(1) To execute the policy set forth in subsection (a), the Secretary of Defense shall
(A) determine which industrial plants and installations (including machine tools and other industrial manufacturing equipment) should become a part of the Defense Industrial Reserve;
(B) designate what excess industrial property shall be disposed of;
(C) establish general policies and provide for the transportation, handling, care, storage, protection, maintenance, repair, rebuilding, utilization, recording, leasing and security of such property;
(D) direct the transfer without reimbursement of such property to other Government agencies with the consent of such agencies;
(E) direct the leasing of any of such property to designated lessees;
(F) authorize the disposition in accordance with existing law of any of such property when in the opinion of the Secretary such property is no longer needed by the Department of Defense; and
(G) notwithstanding chapter 5 of title 40 and any other provision of law, authorize the transfer to a nonprofit educational institution or training school, on a nonreimbursable basis, of any such property already in the possession of such institution or school whenever the program proposed by such institution or school for the use of such property is in the public interest.
(2) 
(A) The Secretary of a military department to which equipment or other property is transferred from the Defense Industrial Reserve shall reimburse appropriations available for the purposes of the Defense Industrial Reserve for the full cost (including direct and indirect costs) of
(i) storage of such property;
(ii) repair and maintenance of such property; and
(iii) overhead allocated to such property.
(B) The Secretary of Defense shall prescribe regulations establishing general policies and fee schedules for reimbursements under subparagraph (A).
(c) Definitions.— 
In this section:
(1) The term Defense Industrial Reserve means
(A) a general reserve of industrial manufacturing equipment, including machine tools, selected by the Secretary of Defense for retention for national defense or for other emergency use;
(B) those industrial plants and installations held by and under the control of the Department of Defense in active or inactive status, including Government-owned/Government-operated plants and installations and Government-owned/contractor-operated plants and installations which are retained for use in their entirety, or in part, for production of military weapons systems, munitions, components, or supplies; and
(C) those industrial plants and installations under the control of the Secretary which are not required for the immediate need of any department or agency of the Government and which should be sold, leased, or otherwise disposed of.
(2) The term plant equipment package means a complement of active and idle machine tools and other industrial manufacturing equipment held by and under the control of the Department of Defense and approved by the Secretary for retention to produce particular defense materiel or defense supporting items at a specific level of output in the event of emergency.

10 USC 2536 - Award of certain contracts to entities controlled by a foreign government: prohibition

(a) In General.— 
A Department of Defense contract or Department of Energy contract under a national security program may not be awarded to an entity controlled by a foreign government if it is necessary for that entity to be given access to information in a proscribed category of information in order to perform the contract.
(b) Waiver Authority.— 

(1) The Secretary concerned may waive the application of subsection (a) to a contract award if
(A) the Secretary concerned determines that the waiver is essential to the national security interests of the United States; or
(B) in the case of a contract awarded for environmental restoration, remediation, or waste management at a Department of Defense or Department of Energy facility
(i) the Secretary concerned determines that the waiver will advance the environmental restoration, remediation, or waste management objectives of the department concerned and will not harm the national security interests of the United States; and
(ii) the entity to which the contract is awarded is controlled by a foreign government with which the Secretary concerned is authorized to exchange Restricted Data under section 144 c. of the Atomic Energy Act of 1954 (42 U.S.C. 2164 (c)).
(2) The Secretary concerned shall notify Congress of any decision to grant a waiver under paragraph (1)(B) with respect to a contract. The contract may be awarded only after the end of the 45-day period beginning on the date the notification is received by the committees.
(c) Definitions.— 
In this section:
(1) The term entity controlled by a foreign government includes
(A) any domestic or foreign organization or corporation that is effectively owned or controlled by a foreign government; and
(B) any individual acting on behalf of a foreign government,

as determined by the Secretary concerned. Such term does not include an organization or corporation that is owned, but is not controlled, either directly or indirectly, by a foreign government if the ownership of that organization or corporation by that foreign government was effective before October 23, 1992.

(2) The term proscribed category of information means a category of information that
(A) with respect to Department of Defense contracts
(i) includes special access information;
(ii) is determined by the Secretary of Defense to include information the disclosure of which to an entity controlled by a foreign government is not in the national security interests of the United States; and
(iii) is defined in regulations prescribed by the Secretary of Defense for the purposes of this section; and
(B) with respect to Department of Energy contracts
(i) is determined by the Secretary of Energy to include information described in subparagraph (A)(ii); and
(ii) is defined in regulations prescribed by the Secretary of Energy for the purposes of this section.
(3) The term Secretary concerned means
(A) the Secretary of Defense, with respect to Department of Defense contracts; and
(B) the Secretary of Energy, with respect to Department of Energy contracts.

10 USC 2537 - Improved national defense control of technology diversions overseas

(a) Collection of Information on Foreign-Controlled Contractors.— 
The Secretary of Defense and the Secretary of Energy shall each collect and maintain a data base containing a list of, and other pertinent information on, all contractors with the Department of Defense and the Department of Energy, respectively, that are controlled by foreign persons. The data base shall contain information on such contractors for 1988 and thereafter in all cases where they are awarded contracts exceeding $10,000,000 in any single year by the Department of Defense or the Department of Energy.
(b) Annual Report to Congress.— 
The Secretary of Defense, the Secretary of Energy, and the Secretary of Commerce shall submit to the Congress, by March 31 of each year, beginning in 1994, a report containing a summary and analysis of the information collected under subsection (a) for the year covered by the report. The report shall include an analysis of accumulated foreign ownership of United States firms engaged in the development of defense critical technologies.
(c) Technology Risk Assessment Requirement.— 

(1) If the Secretary of Defense is acting as a designee of the President under section 721(a) of the Defense Production Act of 1950 (50 App. U.S.C. 2170 (a)) and if the Secretary determines that a proposed or pending merger, acquisition, or takeover may involve a firm engaged in the development of a defense critical technology or is otherwise important to the defense industrial and technology base, then the Secretary shall require the appropriate entity or entities from the list set forth in paragraph (2) to conduct an assessment of the risk of diversion of defense critical technology posed by such proposed or pending action.
(2) The entities referred to in paragraph (1) are the following:
(A) The Defense Intelligence Agency.
(B) The Army Foreign Technology Science Center.
(C) The Naval Maritime Intelligence Center.
(D) The Air Force Foreign Aerospace Science and Technology Center.

10 USC 2538 - Industrial mobilization: orders; priorities; possession of manufacturing plants; violations

(a) Ordering Authority.— 
In time of war or when war is imminent, the President, through the head of any department, may order from any person or organized manufacturing industry necessary products or materials of the type usually produced or capable of being produced by that person or industry.
(b) Compliance With Order Required.— 
A person or industry with whom an order is placed under subsection (a), or the responsible head thereof, shall comply with that order and give it precedence over all orders not placed under that subsection.
(c) Seizure of Manufacturing Plants Upon Noncompliance.— 
In time of war or when war is imminent, the President, through the head of any department, may take immediate possession of any plant that is equipped to manufacture, or that in the opinion of the head of that department is capable of being readily transformed into a plant for manufacturing, arms or ammunition, parts thereof, or necessary supplies for the armed forces if the person or industry owning or operating the plant, or the responsible head thereof, refuses
(1) to give precedence to the order as prescribed in subsection (b);
(2) to manufacture the kind, quantity, or quality of arms or ammunition, parts thereof, or necessary supplies, as ordered by the head of such department; or
(3) to furnish them at a reasonable price as determined by the head of such department.
(d) Use of Seized Plant.— 
The President, through the head of any department, may manufacture products that are needed in time of war or when war is imminent, in any plant that is seized under subsection (c).
(e) Compensation Required.— 
Each person or industry from whom products or materials are ordered under subsection (a) is entitled to fair and just compensation. Each person or industry whose plant is seized under subsection (c) is entitled to a fair and just rental.
(f) Criminal Penalty.— 
Whoever fails to comply with this section shall be imprisoned for not more than three years and fined under title 18.

10 USC 2539 - Industrial mobilization: plants; lists

(a) List of Plants Equipped to Manufacture Arms or Ammunition.— 
The Secretary of Defense may maintain a list of all privately owned plants in the United States, and the territories, Commonwealths, and possessions of the United States, that are equipped to manufacture for the armed forces arms or ammunition, or parts thereof, and may obtain complete information of the kinds of those products manufactured or capable of being manufactured by each of those plants, and of the equipment and capacity of each of those plants.
(b) List of Plants Convertible Into Ammunition Factories.— 
The Secretary of Defense may maintain a list of privately owned plants in the United States, and the territories, Commonwealths, and possessions of the United States, that are capable of being readily transformed into factories for the manufacture of ammunition for the armed forces and that have a capacity sufficient to warrant conversion into ammunition plants in time of war or when war is imminent, and may obtain complete information as to the equipment of each of those plants.
(c) Conversion Plans.— 
The Secretary of Defense may prepare comprehensive plans for converting each plant listed pursuant to subsection (b) into a factory for the manufacture of ammunition or parts thereof.

10 USC 2539a - Industrial mobilization: Board on Mobilization of Industries Essential for Military Preparedness

The President may appoint a nonpartisan Board on Mobilization of Industries Essential for Military Preparedness, and may provide necessary clerical assistance, to organize and coordinate operations under sections 2538 and 2539 of this title.

10 USC 2539b - Availability of samples, drawings, information, equipment, materials, and certain services

(a) Authority.— 
The Secretary of Defense and the Secretaries of the military departments, under regulations prescribed by the Secretary of Defense and when determined by the Secretary of Defense or the Secretary concerned to be in the interest of national defense, may each
(1) sell, rent, lend, or give samples, drawings, and manufacturing or other information (subject to the rights of third parties) to any person or entity;
(2) sell, rent, or lend government equipment or materials to any person or entity
(A) for use in independent research and development programs, subject to the condition that the equipment or material be used exclusively for such research and development; or
(B) for use in demonstrations to a friendly foreign government;
(3) make available to any person or entity, at an appropriate fee, the services of any government laboratory, center, range, or other testing facility for the testing of materials, equipment, models, computer software, and other items; and
(4) make available to any person or entity, through leases, contracts, or other appropriate arrangements, facilities, services, and equipment of any government laboratory, research center, or range, if the facilities, services, and equipment provided will not be in direct competition with the domestic private sector.
(b) Confidentiality of Test Results.— 
The results of tests performed with services made available under subsection (a)(3) are confidential and may not be disclosed outside the Federal Government without the consent of the persons for whom the tests are performed.
(c) Fees.— 
Fees made available under subsections (a)(3) and (a)(4) shall be established in the regulations prescribed pursuant to subsection (a). Such fees may not exceed the amount necessary to recoup the direct and indirect costs involved, such as direct costs of utilities, contractor support, and salaries of personnel that are incurred by the United States to provide for the testing.
(d) Use of Fees.— 
Fees received under subsections (a)(3) and (a)(4) may be credited to the appropriations or other funds of the activity making such services available.

TITLE 10 - US CODE - SUBCHAPTER VI - DEFENSE EXPORT LOAN GUARANTEES

10 USC 2540 - Establishment of loan guarantee program

(a) Establishment.— 
In order to meet the national security objectives in section 2501 (a) of this title, the Secretary of Defense shall establish a program under which the Secretary may issue guarantees assuring a lender against losses of principal or interest, or both principal and interest, arising out of the financing of the sale or long-term lease of defense articles, defense services, or design and construction services to a country referred to in subsection (b).
(b) Covered Countries.— 
The authority under subsection (a) applies with respect to the following countries:
(1) A member nation of the North Atlantic Treaty Organization (NATO).
(2) A country designated as of March 31, 1995, as a major non-NATO ally pursuant to section 2350a (i)(3) of this title, as in effect on that date.
(3) A country in Central Europe that, as determined by the Secretary of State
(A) has changed its form of national government from a nondemocratic form of government to a democratic form of government since October 1, 1989; or
(B) is in the process of changing its form of national government from a nondemocratic form of government to a democratic form of government.
(4) A noncommunist country that was a member nation of the Asia Pacific Economic Cooperation (APEC) as of October 31, 1993.
(c) Authority Subject to Provisions of Appropriations.— 
The Secretary may guarantee a loan under this subchapter only to such extent or in such amounts as may be provided in advance in appropriations Acts.

10 USC 2540a - Transferability

A guarantee issued under this subchapter shall be fully and freely transferable.

10 USC 2540b - Limitations

(a) Terms and Conditions of Loan Guarantees.— 
In issuing a guarantee under this subchapter for a medium-term or long-term loan, the Secretary may not offer terms and conditions more beneficial than those that would be provided to the recipient by the Export-Import Bank of the United States under similar circumstances in conjunction with the provision of guarantees for nondefense articles and services.
(b) Losses Arising From Fraud or Misrepresentation.— 
No payment may be made under a guarantee issued under this subchapter for a loss arising out of fraud or misrepresentation for which the party seeking payment is responsible.
(c) No Right of Acceleration.— 
The Secretary of Defense may not accelerate any guaranteed loan or increment, and may not pay any amount, in respect of a guarantee issued under this subchapter, other than in accordance with the original payment terms of the loan.

10 USC 2540c - Fees charged and collected

(a) Exposure Fees.— 
The Secretary of Defense shall charge a fee (known as exposure fee) for each guarantee issued under this subchapter.
(b) Amount of Exposure Fee.— 
To the extent that the cost of the loan guarantees under this subchapter is not otherwise provided for in appropriations Acts, the fee imposed under subsection (a) with respect to a loan guarantee shall be fixed in an amount that is sufficient to meet potential liabilities of the United States under the loan guarantee.
(c) Payment Terms.— 
The fee under subsection (a) for each guarantee shall become due as the guarantee is issued. In the case of a guarantee for a loan which is disbursed incrementally, and for which the guarantee is correspondingly issued incrementally as portions of the loan are disbursed, the fee shall be paid incrementally in proportion to the amount of the guarantee that is issued.
(d) Administrative Fees.— 

(1) The Secretary of Defense shall charge a fee for each guarantee issued under this subchapter to reflect the additional administrative costs of the Department of Defense that are directly attributable to the administration of the program under this subchapter. Such fees shall be credited to a special account in the Treasury. Amounts in the special account shall be available, to the extent and in amounts provided in appropriations Acts, for paying the costs of administrative expenses of the Department of Defense that are attributable to the loan guarantee program under this subchapter.
(2) 
(A) If for any fiscal year amounts in the special account established under paragraph (1) are not available (or are not anticipated to be available) in a sufficient amount for administrative expenses of the Department of Defense for that fiscal year that are directly attributable to the administration of the program under this subchapter, the Secretary may use amounts currently available for operations and maintenance for Defense-wide activities, not to exceed $500,000 in any fiscal year, for those expenses.
(B) The Secretary shall, from funds in the special account established under paragraph (1), replenish operations and maintenance accounts for amounts expended under subparagraph (A) as soon as the Secretary determines practicable.

10 USC 2540d - Definitions

In this subchapter:
(1) The terms defense article, defense services, and design and construction services have the meanings given those terms in section 47 of the Arms Export Control Act (22 U.S.C. 2794).
(2) The term cost, with respect to a loan guarantee, has the meaning given that term in section 502 of the Congressional Budget and Impoundment Control Act of 1974 (2 U.S.C. 661a).

TITLE 10 - US CODE - SUBCHAPTER VII - CRITICAL INFRASTRUCTURE PROTECTION LOAN GUARANTEES

10 USC 2541 - Establishment of loan guarantee program

(a) Establishment.— 
In order to meet the national security objectives in section 2501 (a) of this title, the Secretary of Defense shall establish a program under which the Secretary may issue guarantees assuring lenders against losses of principal or interest, or both principal and interest, for loans made to qualified commercial firms to fund, in whole or in part, any of the following activities:
(1) The improvement of the protection of the critical infrastructure of the commercial firms.
(2) The refinancing of improvements previously made to the protection of the critical infrastructure of the commercial firms.
(b) Qualified Commercial Firms.— 
For purposes of this section, a qualified commercial firm is a company or other business entity (including a consortium of such companies or other business entities, as determined by the Secretary) that the Secretary determines
(1) conducts a significant level of its research, development, engineering, and manufacturing activities in the United States;
(2) is a company or other business entity the majority ownership or control of which is by United States citizens or is a company or other business of a parent company that is incorporated in a country the government of which
(A) encourages the participation of firms so owned or controlled in research and development consortia to which the government of that country provides funding directly or provides funding indirectly through international organizations or agreements; and
(B) affords adequate and effective protection for the intellectual property rights of companies incorporated in the United States;
(3) provides technology products or services critical to the operations of the Department of Defense;
(4) meets standards of prevention of cyberterrorism applicable to the Department of Defense; and
(5) agrees to submit the report required under section 2541d of this title.
(c) Loan Limits.— 
The maximum amount of loan principal guaranteed during a fiscal year under this section may not exceed $10,000,000, with respect to all borrowers.
(d) Goals and Standards.— 
The Secretary shall prescribe regulations setting forth goals for the use of the loan guarantees provided under this section and standards for evaluating whether those goals are met by each entity receiving such loan guarantees.
(e) Authority Subject to Provisions of Appropriations.— 
The Secretary may guarantee a loan under this subchapter only to such extent or in such amounts as may be provided in advance in appropriations Acts.

10 USC 2541a - Fees charged and collected

(a) Fee Required.— 
The Secretary of Defense shall assess a fee for providing a loan guarantee under this subchapter.
(b) Amount of Fee.— 
The amount of the fee shall be not less than 75 percent of the amount incurred by the Secretary to provide the loan guarantee.
(c) Special Account.— 

(1) Such fees shall be credited to a special account in the Treasury.
(2) Amounts in the special account shall be available, to the extent and in amounts provided in appropriations Acts, for paying the costs of administrative expenses of the Department of Defense that are attributable to the loan guarantee program under this subchapter.
(3) 
(A) If for any fiscal year amounts in the special account established under paragraph (1) are not available (or are not anticipated to be available) in a sufficient amount for administrative expenses of the Department of Defense for that fiscal year that are directly attributable to the administration of the program under this subchapter, the Secretary may use amounts currently available for operations and maintenance for Defense-wide activities, not to exceed $500,000 in any fiscal year, for those expenses.
(B) The Secretary shall, from funds in the special account established under paragraph (1), replenish operations and maintenance accounts for amounts expended under subparagraph (A).

10 USC 2541b - Administration

(a) Agreements Required.— 
The Secretary of Defense may enter into one or more agreements, each with an appropriate Federal or private entity, under which such entity may, under this subchapter
(1) process applications for loan guarantees;
(2) administer repayment of loans; and
(3) provide any other services to the Secretary to administer this subchapter.
(b) Treatment of Costs.— 
The costs of such agreements shall be considered, for purposes of the special account established under section 2541a (c), to be costs of administrative expenses of the Department of Defense that are attributable to the loan guarantee program under this subchapter.

10 USC 2541c - Transferability, additional limitations, and definition

The following provisions of subchapter VI of this chapter apply to guarantees issued under this subchapter:
(1) Section 2540a, relating to transferability of guarantees.
(2) Subsections (b) and (c) of section 2540b, providing limitations.
(3) Section 2540d (2), providing a definition of the term cost.

10 USC 2541d - Reports

The Secretary of Defense shall require each qualified commercial firm for which a loan is guaranteed under this subchapter to submit to the Secretary a report on the improvements financed or refinanced with the loan. The report shall include an assessment of the value of the improvements for the protection of the critical infrastructure of that commercial firm. The Secretary shall prescribe the time for submitting the report.