Updated January 22, 2021
Defense Primer: U.S. Defense Industrial Base
The Department of Defense (DOD) relies on a wide-
elevated the DASD/IP position to the Assistant Secretary of
ranging and complex industrial base for the products and
Defense level (§903; H.R. 6395).
services that enable the Department’s warfighting
capabilities. Definitions of what this industrial base
Annual NTIB Assessments
encompasses vary in scope and emphasis.
The Secretary of Defense is required (10 U.S.C. §2505) to
conduct annual assessments of the NTIB’s capability to
Some analysts and experts distinguish between a domestic
attain national security objectives and must report to
defense industrial base (DIB) and a global DIB. The
Congress yearly on these assessments (10 U.S.C. §2504).
domestic DIB includes public-sector (government-owned,
The assessment includes a description of sectors and
government-operated) facilities, academic institutions, and
capabilities of the NTIB and their underlying infrastructure
private-sector (commercial) companies located in the
and processes. In practice, the DASD/IP has performed the
United States. Congress has taken some interest and action
assessment. In conducting the assessment, the Secretary is
to support and sustain the domestic DIB. The global DIB
required to consider factors such as
includes foreign-owned companies and commodities
sourced from countries with which the United States
present and projected financial performance of
maintains formal defense cooperation partnerships, as well
industries;
as foreign-owned companies and commodities sourced
whether DOD acquisition program requirements can be
from countries without formal defense cooperation
met with current and projected NTIB capacities;
relationships with the United States. Together, the domestic
the degree to which DOD acquisition program
DIB and portions of the global DIB form the National
requirements can be met with current and projected
Technology and Industrial Base (NTIB), as established by
capacities of—
10 U.S.C. §2500. The DIB entities that work with the DOD
as prime contractors and subcontractors are diverse, ranging
o industries supporting the sectors or capabilities in
in size from small- and medium-sized businesses to some of
the assessment, and the extent to which they are
the world's largest corporations. Together, these entities
comprised of only one potential source; and
provide a wide range of products and services to the DOD,
o industries not currently supporting DOD programs,
encompassing everything from complex platforms unique
and the barriers to participation of those industries;
to the military (e.g., aircraft carriers) and highly specialized
and
services (such as launching military satellites), to all kinds
technological and industrial capabilities and processes
of commercial products (e.g., laptop computers and
that may be unable to support the achievement of
semiconductors) and routine services (e.g., information
national security objectives.
technology (IT) support).
DOD’s Role
Selected Industrial Base Authorities
The following discussion surveys selected industrial base
Chapter 148 of Title 10, United States Code (U.S.C.),
authorities that are fundamental to DOD stewardship of the
addresses policies and planning related to the NTIB, which
NTIB.
it defines as “persons and organizations that are engaged in
research, development, production, integration, services, or
Industrial Base Fund
information technology activities conducted within the
10 U.S.C. §2508 directs the Secretary of Defense to
United States, the United Kingdom of Great Britain and
establish an Industrial Base Fund (IBF). The IBF is subject
Northern Ireland, Australia, and Canada.”
to annual appropriations and was established to
The Secretary of Defense is required (10 U.S.C. §2501) to
support the monitoring and assessment of the industrial
develop a national security strategy for the NTIB. The
base;
strategy must be “based on a prioritized assessment of risks
and challenges to the defense supply chain.”
address critical issues in the industrial base relating to
Specific
responsibility for “
urgent operational needs;
establishing policies for access to, and
maintenance of, the [domestic DIB] and materials critical to
support efforts to expand the industrial base; and
national security, and policies on contract administration” is
address supply chain vulnerabilities.
assigned to the Under Secretary of Defense for Acquisition
and Sustainment (USD/A&S) by 10 U.S.C. §133b. The
Defense Production Act (DPA) of 1950
Deputy Assistant Secretary of Defense for Industrial Policy
The DPA of 1950, as last reauthorized in 2018, provides the
(DASD/IP) has served as the principal advisor to the Under
President with a number of authorities that he or she may
Secretary on matters related to the DIB, to include
utilize to influence domestic industry in the interest of
establishing policies for the maintenance of the domestic
national defense. The authorities most relevant to NTIB are
DIB. The FY2021 National Defense Authorization Act
https://crsreports.congress.gov
Defense Primer: U.S. Defense Industrial Base
Title I: Priorities and Allocations, which allows the
ammunition, or any components thereof, purchased by
President to require persons (including businesses and
DOD be melted or produced in the United States.
corporations) to prioritize and accept contracts for
materials and services as necessary to promote the
2018 Defense Industrial Base Report
national defense.
In July 2017, President Donald J. Trump issued Executive
Order 13806, which required a whole-of-government
Title III: Expansion of Productive Capacity and
assessment of the United States’ manufacturing capacity,
Supply, which allows the President to incentivize the
defense industrial base, and supply chain resiliency. The
domestic industrial base to expand the production and
assessment, published in October 2018, identified a number
supply of critical materials and goods. Authorized
of external and internal challenges driving risk within the
incentives include direct purchases and purchase
domestic DIB, including
commitments. The President may also procure and
install equipment in private industrial facilities.
“…uncertainty of government spending; the decline of
Title VII: General Provisions, which defines salient
critical markets and suppliers; unintended consequences
terms and provides several distinct authorities, including
of U.S. government acquisition behavior; aggressive
the authority to establish voluntary agreements with
industrial policies of competitor nations; and the loss of
private industry and the authority to block proposed or
vital skills in the domestic workforce.”
pending foreign corporate mergers, acquisitions, or
The report found that these challenges have “led to impacts
takeovers that threaten national security, through the
primarily in [DIB] sub-tiers,” and further identified a
Committee on Foreign Investment in the United States
“surprising level of foreign dependence on competitor
(CFIUS).
nations.” In response, the report made a series of
recommendations, including expanding “direct investment
Manufacturing Technology (MANTEC) Program
in the lower tier of the [DIB],” through DPA Title III
Established in 1956 by 10 U.S.C. §2521, MANTEC is
authorities, MANTEC, and DOD’s Industrial Base Analysis
intended to further the national security objectives of 10
and Sustainment program, which provides funds to address
U.S.C. §2501. The purpose of the program is to (1) reduce
critical issues in the industrial base relating to urgent
equipment acquisition and supportability costs and
operational needs, to support efforts to expand the industrial
manufacturing and repair timelines by providing centralized
base, and to address supply chain vulnerabilities.
guidance and direction to the military departments and the
defense agencies, and (2) focus DOD support for the
development and application of advanced manufacturing
Relevant Statutes
technologies that are essential to national defense. Also
Title 10, U.S. Code, Chapters 148 and 149
established by 10 U.S.C. §2521, the Joint Defense
Manufacturing Technology Panel is responsible for tasks
such as
CRS Products
conducting comprehensive reviews and assessments of
CRS In Focus IF11311, Defense Primer: The National Technology
defense-related manufacturing issues being addressed by
and Industrial Base
DOD’s manufacturing technology programs and related
CRS Report R43767, The Defense Production Act of 1950:
activities; and
History, Authorities, and Considerations for Congress
executing strategic planning to identify opportunities for
CRS Report R43354, Domestic Content Restrictions: The Buy
increased cooperation in the development and
American Act and Complementary Provisions of Federal Law
implementation of technological products and the
CRS Report R44850, Buying American: Protecting U.S.
leveraging of funding for such purposes with the private
Manufacturing Through the Berry and Kissell Amendments
sector and other government agencies.
CRS In Focus IF10952, CFIUS Reform: Foreign Investment
Selected Domestic Sourcing Mandates
National Security Reviews
Congress has passed several domestic sourcing laws,
including
Other Resources
The Buy American Act of 1933, which generally
requires federal agencies – including DOD – to purchase
DOD Industrial Base Policy Office,
“domestic end products” and use “domestic construction
https://www.businessdefense.gov/.
materials” on contracts exceeding the micro-purchase
Assessing and Strengthening the Manufacturing and Defense
threshold performed in the United States.
Industrial Base and Supply Chain Resiliency of the United States,
The Berry Amendment (10 U.S.C. §2533a), which
http://defense.gov/StrengtheningDefenseIndustrialBase
requires textiles, clothing, food, and hand or measuring
tools purchased by the DOD to be grown, reprocessed,
reused, or produced wholly in the United States.
Heidi M. Peters, Analyst in U.S. Defense Acquisition
The Specialty Metals Clause (10 U.S.C. §2533b), which
requires that any specialty metals, defined as certain
Policy
metal alloys, contained in any aircraft, missile and space
IF10548
system, ship, tank and automotive item, weapon system,
https://crsreports.congress.gov
Defense Primer: U.S. Defense Industrial Base
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.
https://crsreports.congress.gov | IF10548 · VERSION 10 · UPDATED