2020 National Defense Authorization Act

The NDAA contains numerous provisions that will affect government contractors and shape defense acquisition policies for years to come.

Supply Chain Risks

The NDAA includes notable provisions directed at protecting the DoD supply chain against intellectual property theft and other risks:The final bill requires the secretary of defense to “modernize” its approach to protecting the integrity of the defense industrial supply chain (Section 845). DoD must “streamline and digitize” its approach to identifying and mitigating supply chain risks and develop an analytical framework for risk mitigation across the acquisition process. The NDAA also contains a provision requiring DoD to establish trusted supply chain and operational security standards for the purchase of microelectronics products or services (Section 224).The FY20 NDAA continues the work of previous NDAAs to enable the DoD to assess and mitigate risks to its supply chain posed by advanced intelligence services like China and Russia that seek to exploit vulnerabilities to erode our military advantage. The NDAA: 

• Modernizes risk assessment and mitigation across DOD’s contracting processes to strengthen decision-making about which suppliers to use; 

• Strengthens reporting to Congress on key industrial base vulnerabilities and plans to address them, including with partners and allies. 

• Improves insight to and mitigation of risks posed by foreign ownership, control and influence of defense contractors; 

• Improves insight to contractors’ adherence to law and regulation pertaining to human rights and human trafficking, workplace safety, labor standards, sexual harassment, and fraud; 

• Reduces reliance on foreign sources of rare earth minerals; 

• Repairs microelectronics supply chain security; and 

• Enhances manufacturing and small business innovation. 

NDAA and Additive Manufacturing

3D printing research

The budget request included $86.2 million in Research, Development, Test, and Evaluation (RDT&E), Army, for PE 61104A university and industry research centers. The committee notes the importance of increased basic research for fundamental scientific knowledge related to long-term national security needs, and the committee supports increased research for 3D printing. Therefore, the committee recommends an increase of $2.0 million, for a total of $88.2 million, in RDT&E, Army, for PE 61104A for 3D printing research.

Cyber Collaborative Research Alliance

The budget request included $5.0 million in Research, Development, Test, and Evaluation (RDT&E), Army, for PE 61121A Cyber Collaborative Research Alliance.The committee notes the importance of cyber basic research and supports increased cyber collaboration with the Cyber Collaboration Research Alliance. The committee believes that long-term science and technology cyber research is critical to developing capabilities that will enable the warfighter to maintain dominance in cyberspace in the long run.Therefore, the committee recommends an increase of $5.0 million, for a total of $10.0 million, in RDT&E, Army, for PE 61121A for cyber basic research.

Advanced materials manufacturing processes

The budget request included $35.2 million in Research, Development, Test, and Evaluation (RDT&E), Army, for PE 62144A ground technology. The committee is aware that advances in novel manufacturing could allow for the development of materials and components with superior properties and performance. The committee understands that the application of modeling tools in the development of new manufacturing techniques, such as additive manufacturing, could enable the production of new materials that provide increased strength, hardness, and ductility. These alloys could be useful in applications such as armor and would be a critical enabling technology that could increase warfighter protection. Therefore, the committee recommends an increase of $2.0 million in RDT&E, Army, for PE 62144A for advanced materials manufacturing processes research.

U.S. Marine Corps Additive Manufacturing Logistics Software Pilot Program

The budget request included $4.4 million in Research, Development, Test, and Evaluation (RDT&E), Navy, for PE 64289M Next Generation Logistics.The committee notes that the U.S. Marine Corps (USMC) has fielded 165 3D Printers, 5 metal printers, and 1 prototype concrete printer across the fleet and is seeing great benefit from their use through innovative programs like Marine Maker. However, the digital infrastructure to create, support, document, and provide a digital thread, digital twin, and augmented reality capability for the parts being manufactured and used is non-existent. The USMC needs an Additive Manufacturing Logistics Software Pilot Program and formally highlighted this need in its unfunded priorities list. The pilot program would use commercial-off-the-shelf software and services to support several use cases and lay the groundwork for providing the digital infrastructure for all USMC next generation additive manufacturing activities. Funding would cover government costs, software procurement, and services support work at multiple US locations.The committee recommends an increase of $9.0 million, for a total of $13.4 million, in RDT&E, Navy, for PE 64289M to fund the USMC Additive Manufacturing Logistics Software Pilot Program.

Training of skilled technicians for the defense industrial base

The committee notes that the September 2018 Department of Defense report ``Assessing and Strengthening the Manufacturing and Defense Industrial Base and Supply Chain Resiliency of the United States'' stated: ``Without concerted action that provides both a ready workforce and a continuously charged pipeline of new employees,the U.S. will not be able to maintain the large, vibrant, and diverse machine tools sector needed to produce the required number and types of products when needed.'' Accordingly, the committee directs the Secretary of Defense to develop a plan, cost estimate, and schedule for a pilot program to train skilled technicians for immediate placement in the Defense Industrial Base, including critical shipbuilding skills such as welding, metrology, quality assurance, machining, and additive manufacturing. The committee notes that these activities may benefit from partnering with State-level efforts to leverage investment and infrastructure in training and education and existing workforce development partnerships with the Defense Industrial Base as well as relevant federal programs, such as the National Network of Manufacturing Institutes and the Department of Defense Industrial Base Analysis and Sustainment program. The committee directs the Secretary to provide an annotated briefing on the plan, cost estimate, and schedule for a potential pilot program to the Senate Armed Services Committee no later than September 15, 2020.