S.Amdt. 4348

SA 4348. Ms. BALDWIN submitted an amendment intended to be proposed
by her to the bill S. 2943, to authorize appropriations for fiscal year
2017 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:

At the end of subtitle B of title II, add the following:

SEC. 221. REPORT ON NATIONAL SECURITY IMPLICATIONS OF
INDEPENDENT RESEARCH AND DEVELOPMENT
INVESTMENTS WITHIN THE DEFENSE INDUSTRY.

Not later than 180 days after the date of the enactment of
this Act, the Secretary of

[[Page S3347]]

Defense shall submit to the congressional defense committees
a report on the national security implications of independent
research and development investments within the defense
industry. The report shall include the following:
(1) An assessment of the short-term and long-term
implications for the national security of the United States
with respect to innovation, modernization, and technological
superiority resulting from low levels of independent research
and development investment within the defense industry.
(2) For fiscal years 2015 and 2016, an analysis of how
firms in the defense industry have allocated corporate
earnings, including a breakdown by allocation types such as--
(A) investments in research and development, labor force,
or capital improvements;
(B) merger or acquisition activities; or
(C) activities to primarily increase shareholder value.
(3) An assessment whether regulations and acquisition
policies of the Department of Defense provide incentives for
firms in the defense industry to place a priority on short-
term targets for earnings-per-share rather than on long-term
capital investments.
(4) Such recommendations for legislative or administrative
action as the Secretary considers appropriate to encourage,
facilitate, and enhance independent research and development
investments within the defense industry, and to spur
innovation within the defense industry.
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