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Title 50 — War and National Defense

Chapter 55 — Defense Production

§ 4518. Modernization of small business suppliers

Statutory text

(a)

In general

In providing any assistance under this chapter, the President shall accord a strong preference for small business concerns which are subcontractors or suppliers, and, to the maximum extent practicable, to such small business concerns located in areas of high unemployment or areas that have demonstrated a continuing pattern of economic decline, as identified by the Secretary of Labor.

(b)

Modernization of equipment

(1)

In general

Funds authorized under subchapter II may be used to guarantee the purchase or lease of advance manufacturing equipment, and any related services with respect to any such equipment for purposes of this chapter.

(2)

Small business suppliers

In considering proposals for subchapter II projects under paragraph (1), the President shall provide a strong preference for proposals submitted by a small business supplier or subcontractor whose proposal—

(A)

has the support of the department or agency which will provide the guarantee;

(B)

reflects that the small business concern has made arrangements to obtain qualified outside assistance to support the effective utilization of the advanced manufacturing equipment being proposed for installation; and

(C)

meets the requirements of section 4531, 4532, or 4533 of this title.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

  1. Defense Production Act Amendments of 1992

    Pub. L. 102–558 title I § 111 · 106 Stat. 4198

    Enacted · 50 U.S.C. § 4518

    (Sept. 8, 1950, ch. 932, title I, § 108, as added Pub. L. 102–558, title I, § 111, Oct. 28, 1992, 106 Stat. 4202.)

    Source evidence

    Code source credit
    (Sept. 8, 1950, ch. 932, title I, § 108, as added Pub. L. 102–558, title I, § 111, Oct. 28, 1992, 106 Stat. 4202.)

    Enacted provision · exact public law section
    SEC. 111. STRENGTHENING OF DOMESTIC CAPABILITY AND ASSISTANCE FOR SMALL BUSINESSES. Title I of the Defense Production Act of 1950 (50 U.S.C. App. 2071, et seq.) is amended by adding at the end the following new sections: “SEC. 107. STRENGTHENING DOMESTIC CAPABILITY. “(a) In General.— Utilizing the authority of title III of this Act or any other provision of law, the President may provide appropriate incentives to develop, maintain, modernize, and expand the productive capacities of domestic sources for critical components, critical technology items, and industrial resources essential for the execution of the national security strategy of the United States. “(b) Critical Components and Critical Technology Items.— “(1) Identification.— “(A) In general.— The President, acting through the President. Secretary of Defense, shall identify critical components and critical technology items for each item on the Critical Items List of the Commanders-in-Chief of the Unified and Specified Commands and other items within the inventory of weapon systems and defense equipment. “(B) Definition.— Any component identified as critical by a National Security Assessment conducted pursuant to section 113(i) of title 10, United States Code, or by a Presidential determination as a result of a petition filed under section 232 of the Trade Expansion Act of 1962 shall be designated as a critical component for purposes of this Act, unless the President determines that the designation is unwarranted. “(2) Maintenance of reliable sources of supply.— The President shall take appropriate actions to assure that critical components or critical technology items are available from reliable sources when needed to meet defense requirements during peacetime, graduated mobilization, and national emergency. “(3) Appropriate action.— For purposes of this subsection, appropriate action may include— “(A) restricting contract solicitations to reliable sources; “(B) restricting contract solicitations to domestic sources pursuant to— “(i) section 2304(b)(1)(B) or section 2304(c)(3) of title 10, United States Code; “(ii) section 303(b)(1)(B) or section 303(c)(3) of the Federal Property and Administrative Services Act of 1949; or “(iii) other statutory authority; “(C) stockpiling critical components; and “(D) developing substitutes for a critical component or a critical technology item.

1 of 1 references resolved to an enrolled provision

Notes

Termination of Section

For termination of section, see section 4564(a) of this title.

Editorial Notes

References in Text

This chapter, referred to in subsecs. (a) and (b)(1), was in the original “this Act”, meaning act Sept. 8, 1950, ch. 932, 64 Stat. 798, known as the Defense Production Act of 1950, which is classified principally to this chapter. For complete classification of this Act to the Code, see section 4501 of this title and Tables.

Codification

Section was formerly classified to section 2078 of the former Appendix to this title prior to editorial reclassification and renumbering as this section.

Statutory Notes and Related Subsidiaries

Effective Date

Section deemed to have become effective , see section 304 of Pub. L. 102–558, set out as an Effective Date of 1992 Amendment note under section 4502 of this title.

Executive Documents

Delegation of Functions

Functions of the President under this chapter relating to the production, conservation, use, control, distribution, and allocation of energy, delegated to the Secretary of Energy, see section 4 of Ex. Ord. No. 11790, eff. , 39 F.R. 23185, set out as a note under section 761 of Title 15, Commerce and Trade.

Credits

(Sept. 8, 1950, ch. 932, title I, § 108, as added Pub. L. 102–558, title I, § 111, , 106 Stat. 4202.)

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USLM identifier /us/usc/t50/s4518