S.Amdt. 3691

1. Adds SEC. __. PROGRAM TO SUPPORT ESTABLISHMENT OF CENTERS FOR DEFENSE MANUFACTURING INNOVATION at the end of subtitle H of title X

   Adds a section

   In S. 2410 · Placed on Calendar Senate

   (j) Coordination With Other Amendments Made by This Act.--For purposes of applying amendments made by provisions of this Act other than this section, the amendments made by subsections (b) through (h) of this section shall be treated as having been enacted immediately before any such amendments by other provisions of this Act.

   Inserted: SEC. __. PROGRAM TO SUPPORT ESTABLISHMENT OF CENTERS FOR DEFENSE MANUFACTURING INNOVATION.

   Inserted: (a) Establishment of Program.--

   Inserted: (1) In general.--The Secretary of Defense shall establish a program (referred to in this section as the "Program") for the purposes set forth in paragraph (2).

   Inserted: (2) Purposes of program.--The purposes of the Program are as follows:

   Inserted: (A) To improve measurably the competitiveness of United States manufacturing relating to national security and defense and to increase domestic production.

   Inserted: (B) To help the United States meet national security and emergency preparedness needs by minimizing the risk of dependence on foreign sources for critical components.

   Inserted: (C) To stimulate United States leadership in advanced defense manufacturing research, innovation, and technology that has a strong potential to generate substantial benefits to the United States that extend significantly beyond the direct return to participants in the Program.

   Inserted: (D) To facilitate the transition of innovative and transformative technologies into scalable, cost-effective, and high-performing manufacturing capabilities.

   Inserted: (E) To facilitate access by manufacturing enterprises to capital-intensive infrastructure, including high-performance computing, in order to improve the speed with which such enterprises commercialize new processes and technologies.

   Inserted: (F) To accelerate measurably the development of an advanced manufacturing workforce.

   Inserted: (G) To leverage non-Federal sources of support to promote a stable and sustainable business model without the need for long-term Federal funding.

   Inserted: (3) Support.--The Secretary shall carry out the purposes set forth in paragraph (2) by supporting the establishment of centers for defense manufacturing innovation.

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   Inserted: (b) Centers for Defense Manufacturing Innovation.--

   Inserted: (1) In general.--For purposes of the Program, a center for defense manufacturing innovation is a center that--

   Inserted: (A) has been established by a person or group of persons to address challenges in advanced defense manufacturing and to assist manufacturers in retaining or expanding industrial production and jobs in the United States;

   Inserted: (B) has a predominant focus on a manufacturing process, novel material, enabling technology, supply chain integration methodology, or another relevant aspect of advanced manufacturing, as determined by the Secretary, with the potential--

   Inserted: (i) to ensure domestic sources for critical defense material;

   Inserted: (ii) to maintain a qualitative technical military advantage;

   Inserted: (iii) to improve the competitiveness of United States manufacturing;

   Inserted: (iv) to accelerate non-Federal investment in advanced manufacturing production capacity in the United States;

   Inserted: (v) to increase measurably the non-Federal investment in advanced manufacturing research; and

   Inserted: (vi) to enable the commercial application of new technologies or industry-wide manufacturing processes; and

   Inserted: (C) includes active participation among representatives from multiple industrial entities, research universities, community colleges, and such other entities as the Secretary considers appropriate, which may include industry-led consortia, career and technical education schools, Federal laboratories, State, local, and tribal governments, businesses, educational institutions, and nonprofit organizations.

   Inserted: (2) Activities.--Activities of a center for defense manufacturing innovation may include the following:

   Inserted: (A) Research, development, and demonstration projects, including proof-of-concept development and prototyping, to reduce the cost, time, and risk of commercializing new technologies and improvements in existing technologies, processes, products, and research and development of materials to solve pre-competitive industrial problems with economic or national security implications.

   Inserted: (B) Development and implementation of education and training courses, materials, and programs.

   Inserted: (C) Development of workforce recruitment programs and initiatives.

   Inserted: (D) Development of innovative methodologies and practices for supply chain integration and introduction of new technologies into supply chains.

   Inserted: (E) Development or updating of industry-led, shared-vision technology roadmaps for the development of technologies underpinning next-generation or transformational innovations.

   Inserted: (F) Outreach and engagement with small- and medium-sized manufacturing enterprises, in addition to large manufacturing enterprises.

   Inserted: (G) Coordinate with the Defense Production Act Committee to determine which technologies produced by the centers for defense manufacturing innovation warrant support for commercialization.

   Inserted: (H) Such other activities as the Secretary, in consultation with Federal departments and agencies whose missions contribute to or are affected by advanced defense manufacturing, considers consistent with the purposes described in subsection (a)(2).

   Inserted: (3) Additional centers for manufacturing innovation.--For purposes of the Program, the National Additive Manufacturing Innovation Institute and manufacturing centers formally recognized or under pending interagency review on the date of enactment of the this Act shall be considered centers for defense manufacturing innovation, but such centers shall not receive any preference for financial assistance under subsection (c) solely on the basis of being considered centers for defense manufacturing innovation under this paragraph.

   Inserted: (c) Financial Assistance to Establish and Support Centers for Defense Manufacturing Innovation.--

   Inserted: (1) In general.--In carrying out the Program, the Secretary of Defense shall award financial assistance to a person to assist the person in planning, establishing, or supporting a center for defense manufacturing innovation.

   Inserted: (2) Application.--A person seeking financial assistance under paragraph (1) shall submit to the Secretary an application therefor at such time, in such manner, and containing such information as the Secretary may require. The application shall, at a minimum, describe the specific sources and amounts of non-Federal financial support for the center on the date financial assistance is sought, as well as the anticipated sources and amounts of non-Federal financial support during the period for which the center could be eligible for continued Federal financial assistance under this section.

   Inserted: (3) Open process.--In soliciting applications for financial assistance under paragraph (1), the Secretary shall ensure an open process that will allow for the consideration of all applications relevant to advanced defense manufacturing regardless of technology area.

   Inserted: (4) Selection.--

   Inserted: (A) Competitive, merit review.--In awarding financial assistance under paragraph (1), the Secretary shall use a competitive, merit review process that includes peer review by a diverse group of individuals with relevant expertise.

   Inserted: (B) Performance measurement, transparency, and accountability.--For each award of financial assistance under paragraph (1), the Secretary shall--

   Inserted: (i) make publicly available at the time of the award a description of the bases for the award, including an explanation of the relative merits of the winning applicant as compared to other applications received, if applicable; and

   Inserted: (ii) develop and implement metrics-based performance measures to assess the effectiveness of the activities funded.

   Inserted: (C) Collaboration.--In awarding financial assistance under paragraph (1), the Secretary shall collaborate with Federal departments and agencies whose missions contribute to or are affected by advanced defense manufacturing.

   Inserted: (D) Considerations.--In selecting a person who submitted an application under paragraph (2) for an award of financial assistance under paragraph (1) to plan, establish, or support a center for defense manufacturing innovation, the Secretary shall consider, at a minimum, the following:

   Inserted: (i) The potential of the center for defense manufacturing innovation to advance domestic manufacturing and the likelihood of economic impact in the predominant focus areas of the center for defense manufacturing innovation.

   Inserted: (ii) The commitment of continued financial support, advice, participation, and other contributions from non-Federal sources, to provide leverage and resources to promote a stable and sustainable business model without the need for long-term Federal funding.

   Inserted: (iii) Whether the financial support provided to the center from non-Federal sources significantly outweighs the requested Federal financial assistance.

   Inserted: (iv) How the center will support core Department of Defense missions and address key technology priorities.

   Inserted: (v) How the center for defense manufacturing innovation will increase the non-Federal investment in advanced manufacturing research in the United States.

   Inserted: (vi) How the center for defense manufacturing innovation will engage with small- and medium-sized manufacturing enterprises, to improve the capacity of such enterprises to commercialize new processes and technologies.

   Inserted: (vii) How the center for defense manufacturing innovation will carry out educational and workforce activities to support the defense supply chian workforce in the United States.

   Inserted: (viii) Whether the predominant focus of the center for defense manufacturing innovation is a manufacturing process, novel material, enabling technology, supply chain integration methodology, or other relevant aspect of advanced manufacturing that has not already been commercialized, marketed, distributed, or sold by another entity.

   Inserted: (5) Matching funds and weighted preferences.--The total Federal financial assistance awarded to a person, including the financial assistance under paragraph (1), in a given year shall not exceed 50 percent of the total funding of the center in that year. The Secretary may give a weighted preference to applicants seeking less than the maximum amount of funding allowed under this paragraph.

   Inserted: (d) Additional Authorities.--

   Inserted: (1) Appointment of personnel and contracts.--The Secretary may appoint such personnel and enter into such contracts, financial assistance agreements, and other agreements as the Secretary considers necessary or appropriate to carry out the Program, including support for research and development activities involving a center for defense manufacturing innovation.

   Inserted: (2) Transfer of funds.--The Secretary may transfer to other Federal agencies such sums as the Secretary considers necessary or appropriate to carry out the Program. No funds so transferred may be used to reimburse or otherwise pay for the costs of financial assistance incurred or commitments of financial assistance made prior to the date of enactment of the this Act.

   Inserted: (3) Authority of other agencies.--In the event that the Secretary exercises the authority to transfer funds to another agency under paragraph (2), such agency may award and administer, under the same conditions and constraints applicable to the Secretary, all aspects of financial assistance awards under this section.

   Inserted: (4) Use of resources.--In furtherance of the purposes of the Program, the Secretary may use, with the consent of a covered entity and with or without reimbursement, the land, services, equipment, personnel, and facilities of such covered entity.

   Inserted: (5) Acceptance of resources.--In addition to amounts appropriated to carry out the Program, the Secretary may accept funds, services, equipment, personnel, and facilities from any covered entity to carry out the Program, subject to the same conditions and constraints otherwise applicable to the Secretary under this section.

   Inserted: (6) Covered entity.--For purposes of this subsection, a covered entity is any Federal department, Federal agency, instrumentality of the United States, State, local government, tribal government, Territory or possession of the United States, or of any political subdivision thereof, or international organization, or any public or private entity or individual.

   Inserted: (e) Patents.--Chapter 18 of title 35, United States Code, shall apply to any funding agreement (as defined in section 201 of that title) awarded to new or existing centers for defense manufacturing innovation.

   Inserted: (f) Sunset.--The authority to provide financial assistance to plan for, establish, or support a center for defense manufacturing innovation under subsection (c) terminates effective December 31, 2015.

   Original wording

   At the end of subtitle H of title X, add the following:

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As printed