104 STAT. 1604 PUBLIC LAW 101-510—NOV. 5, 1990 "(4) On October 1, 1994, and October 1 of each third year thereafter, the Secretary may adjust the amounts in paragraph (1) to reflect cheinges in one or more economic indices that the Secretary considers appropriate for use in making adjustments under this paragraph. "(5) The provisions of this section shall apply only to contracts for which the submission and certification of cost or pricing data are required in accordance with section 2306a of this title.". (2) The table of sections at the beginning of such chapter is amended by adding at the end the following new item: "2372. Independent research and development.". (b) REPEAL OF SUPERSEDED PROVISION.— Section 203 of Public Law 91-441 (10 U.S.C. 2358 note) is repealed. SEC. 825. ANNUAL REPORT ON ACTIVITIES RELATING TO DEFENSE INDUSTRIAL BASE (a) DEFENSE INDUSTRIAL BASE ANNUAL REPORT.— Chapter 148 of title 10, United States Code, is amended by inserting after section 2508 the following new section: "§ 2509. Defense industrial base annual report " (a) ANNUAL REPORT REQUIREMENT.—The Secretary of Defense (acting through the Under Secretary of Defense for Acquisition), in consultation with the Secretary of Commerce (acting through the Under Secretary of Commerce for Export Administration), shall submit to the Committees on Armed Services of the Senate and House of Representatives an annual report on— "(1) the actions taken pursuant to this chapter for the improvement of the defense industrial base of the United States; and "(2) the effects of defense budgets and plans on the ability of the United States defense industrial base to meet the national security needs of the United States. "(b) FINANCIAL ABILITY ANALYSIS.— The report required by this section shall include an analysis of the condition of the defense industrial base of the United States, particularly with respect to the financial ability of United States businesses— "(1) to conduct research and development activities relating to critical defense technologies, including the critical technologies identified in the annual defense critical technologies plan submitted pursuant to section 2508 of this title in the year in which the annual report is submitted; "(2) to apply those technologies to the production of goods and the furnishing of services; "(3) to maintain a viable production base in critical areas of defense production and technology at the procurement levels for which funds are available to the Department of Defense and at planned Department of Defense procurement levels; "(4) to expand the defense production base to respond to rapid increases in the demand for defense production and critical defense technologies; "(5) to maintain a viable defense production base in each critical area of defense production and technology in which terminations of major Department of Defense procurement programs or reductions in planned Department of Defense procurement—
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