1. (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.

2. (b) Assessment Process.— The Secretary of Defense shall ensure that technology and industrial capability assessments—

   1. (1) describe sectors or capabilities, their underlying infrastructure and processes;
   2. (2) analyze present and projected financial performance of industries supporting the sectors or capabilities in the assessment;
   3. (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; and
   4. (4) consider the effects of the termination of major defense acquisition programs (as the term is defined in section 2430 of this title) or major automated information system programs (as defined in section 2445a of this title) in the previous fiscal year on the sectors and capabilities in the assessment.

3. (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. (1) identify cases that pose an unacceptable risk of foreign dependency, as determined by the Secretary; and
   2. (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.

4. (d) Assessment of Extent of Effects of Foreign Boycotts.— Each assessment under subsection (a) shall include an examination of the extent to which the national technology and industrial base is affected by foreign boycotts. If it is determined that a foreign boycott (other than a boycott addressed in a previous assessment) is subjecting the national technology and industrial base to significant harm, the assessment shall include a separate discussion and presentation regarding that foreign boycott that shall, at a minimum—

   1. (1) identify the sectors that are subject to such harm;
   2. (2) describe the harm resulting from such boycott; and
   3. (3) identify actions necessary to minimize the effects of such boycott on the national technology and industrial base.
5. (e) 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.

(Added Pub. L. 102–484, div. D, title XLII, § 4215, Oct. 23, 1992, 106 Stat. 2667; amended Pub. L. 103–35, title II, § 201(g)(7), May 31, 1993, 107 Stat. 100; Pub. L. 104–201, div. A, title VIII, § 829(c)(1), Sept. 23, 1996, 110 Stat. 2612; Pub. L. 111–23, title III, § 303(b), May 22, 2009, 123 Stat. 1731; Pub. L. 111–383, div. A, title VIII, § 895(c), Jan. 7, 2011, 124 Stat. 4314; Pub. L. 112–239, div. A, title XVI, § 1602, Jan. 2, 2013, 126 Stat. 2062.)

Prior Provisions A prior section 2505 was renumbered section 2532 of this title.

Amendments 2013—Subsecs. (d), (e). Pub. L. 112–239 added subsec. (d) and redesignated former subsec. (d) as (e).

2011—Subsec. (b)(4). Pub. L. 111–383 inserted “or major automated information system programs (as defined in section 2445a of this title)” after “section 2430 of this title)”.

2009—Subsec. (b)(4). Pub. L. 111–23 added par. (4).

1996—Pub. L. 104–201 reenacted section catchline without change and amended text generally. Prior to amendment, text consisted of subsecs. (a) to (d) providing for National Defense Technology and Industrial Base Council to prepare, at least annually through fiscal year 1997 and biennially thereafter, a comprehensive assessment of capability of the national technology and industrial base to attain national security objectives.

1993—Pub. L. 103–35 substituted “capability” for “capabilty” in section catchline.

Study of Beryllium Industrial Base Pub. L. 108–136, div. A, title VIII, § 824, Nov. 24, 2003, 117 Stat. 1547, required the Secretary of Defense to conduct a study of the adequacy of the industrial base of the United States to meet defense requirements of the United States for beryllium and to submit a report on the results of the study to Congress not later than Mar. 31, 2005.

Implementing Regulations Concerning National Technology and Industrial Base Periodic Assessment Pub. L. 102–484, div. D, title XLII, § 4219, Oct. 23, 1992, 106 Stat. 2671, as amended by Pub. L. 103–35, title II, § 202(a)(14), May 31, 1993, 107 Stat. 101, set forth requirements for the initial regulations prescribed to implement this section, prior to repeal by Pub. L. 104–201, div. A, title VIII, § 829(h), Sept. 23, 1996, 110 Stat. 2614.