Page:United States Statutes at Large Volume 106 Part 3.djvu/878

 106 STAT. 2672 PUBLIC LAW 102-484—OCT. 23, 1992 (c) SECTOR ROLE ANALYSIS.—The initial regulations shall provide that the analysis required by section 2505(b)(l), concerning the role and capability of each technology and industrial base sector in furthering each of the national security objectives of section 2501(a), include the following: (1) An analysis of the current and projected capability of each sector to attain each such objective for each of the following periods: (A) The fiscal year during which the assessment is submitted to Congress pursuant to section 2506(e). (B) The following fiscal year. (C) The multiyear period covered by the future-years defense program submitted under section 221 during the fiscal year referred to in subparagraph (A). (2) For each period described in paragraph (1), an analysis of the present and projected capabilities of prime contractors, subcontractors, the Defense Industrial Reserve, and departments and agencies of the Federal Government with respect to each of the following: (A) Research and development, including research and development regarding the critical technologies identified in the analysis pursuant to section 2505(b)(4). (B) Application of critical technologies to the production of goods and the furnishing of services. (C) Test and evaluation. (D) Low rate production. (E) High volume production. (F) Repair and maintenance. (G) Design and prototyping. (H) Work force skills and capabilities, including improvements that build on the skill and experience of the work force. (d) FINANCIAL CAPABILITY ANALYSIS.—The initial regulations shall provide that the analysis required by section 2505(b)(2), concerning the present and projected financial capability of each technology and industrial base sector, specifically consider the following matters: (1) Trends in the following: (A) Profitability. (B) Levels of capital investment. (C) Expenditures on research and development. (D) Levels of debt. (2) The effects of actual and potential commercial sales. (3) The consequences of mergers, acquisitions, and takeovers. (4) The effects of Department of Defense financial policies, including the following: (A) Policies relating to progress payments or other financing by the Department of Defense. (B) Policies relating to the return on contractor investment. (C) Policies relating to the allocation of contract risk between the Department of Defense and a contractor. (5) The effects of expenditures in the technology and industrial base sector by departments and agencies or the Federcd Government other than the Department of Defense and the Department of Energy (for national security programs).

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