82 FR 34597 - Assessing and Strengthening the Manufacturing and Defense Industrial Base and Supply Chain Resiliency of the United States

Executive Office of the President

Federal Register Volume 82, Issue 142 (July 26, 2017)

[Federal Register Volume 82, Number 142 (Wednesday, July 26, 2017)]
[Presidential Documents]
[Pages 34597-34599]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-15860]




                        Presidential Documents 



Federal Register / Vol. 82, No. 142 / Wednesday, July 26, 2017 / 
Presidential Documents

___________________________________________________________________

Title 3--
The President

[[Page 34597]]

                Executive Order 13806 of July 21, 2017

                
Assessing and Strengthening the Manufacturing and 
                Defense Industrial Base and Supply Chain Resiliency of 
                the United States

                By the authority vested in me as President by the 
                Constitution and the laws of the United States of 
                America, it is hereby ordered as follows:

                Section 1. Policy. A healthy manufacturing and defense 
                industrial base and resilient supply chains are 
                essential to the economic strength and national 
                security of the United States. The ability of the 
                United States to maintain readiness, and to surge in 
                response to an emergency, directly relates to the 
                capacity, capabilities, and resiliency of our 
                manufacturing and defense industrial base and supply 
                chains. Modern supply chains, however, are often long 
                and the ability of the United States to manufacture or 
                obtain goods critical to national security could be 
                hampered by an inability to obtain various essential 
                components, which themselves may not be directly 
                related to national security. Thus, the United States 
                must maintain a manufacturing and defense industrial 
                base and supply chains capable of manufacturing or 
                supplying those items.

                The loss of more than 60,000 American factories, key 
                companies, and almost 5 million manufacturing jobs 
                since 2000 threatens to undermine the capacity and 
                capabilities of United States manufacturers to meet 
                national defense requirements and raises concerns about 
                the health of the manufacturing and defense industrial 
                base. The loss of additional companies, factories, or 
                elements of supply chains could impair domestic 
                capacity to create, maintain, protect, expand, or 
                restore capabilities essential for national security.

                As the manufacturing capacity and defense industrial 
                base of the United States have been weakened by the 
                loss of factories and manufacturing jobs, so too have 
                workforce skills important to national defense. This 
                creates a need for strategic and swift action in 
                creating education and workforce development programs 
                and policies that support job growth in manufacturing 
                and the defense industrial base.

                Strategic support for a vibrant domestic manufacturing 
                sector, a vibrant defense industrial base, and 
                resilient supply chains is therefore a significant 
                national priority. A comprehensive evaluation of the 
                defense industrial base and supply chains, with input 
                from multiple executive departments and agencies 
                (agencies), will provide a necessary assessment of our 
                current strengths and weaknesses.

                Sec. 2. Assessment of the Manufacturing Capacity, 
                Defense Industrial Base, and Supply Chain Resiliency of 
                the United States. Within 270 days of the date of this 
                order, the Secretary of Defense, in coordination with 
                the Secretaries of Commerce, Labor, Energy, and 
                Homeland Security, and in consultation with the 
                Secretaries of the Interior and Health and Human 
                Services, the Director of the Office of Management and 
                Budget, the Director of National Intelligence, the 
                Assistant to the President for National Security 
                Affairs, the Assistant to the President for Economic 
                Policy, the Director of the Office of Trade and 
                Manufacturing Policy, and the heads of such other 
                agencies as the Secretary of Defense deems appropriate, 
                shall provide to the President an unclassified report, 
                with a classified annex as needed, that builds on 
                current assessment and evaluation activities, and:

[[Page 34598]]

                    (a) identifies the military and civilian materiel, 
                raw materials, and other goods that are essential to 
                national security;
                    (b) identifies the manufacturing capabilities 
                essential to producing the goods identified pursuant to 
                subsection (a) of this section, including emerging 
                capabilities;
                    (c) identifies the defense, intelligence, homeland, 
                economic, natural, geopolitical, or other contingencies 
                that may disrupt, strain, compromise, or eliminate the 
                supply chains of goods identified pursuant to 
                subsection (a) of this section (including as a result 
                of the elimination of, or failure to develop 
                domestically, the capabilities identified pursuant to 
                subsection (b) of this section) and that are 
                sufficiently likely to arise so as to require 
                reasonable preparation for their occurrence;
                    (d) assesses the resiliency and capacity of the 
                manufacturing and defense industrial base and supply 
                chains of the United States to support national 
                security needs upon the occurrence of the contingencies 
                identified pursuant to subsection (c) of this section, 
                including an assessment of:

(i) the manufacturing capacity of the United States and the physical plant 
capacity of the defense industrial base, including their ability to 
modernize to meet future needs;

(ii) gaps in national-security-related domestic manufacturing capabilities, 
including non-existent, extinct, threatened, and single-point-of-failure 
capabilities;

(iii) supply chains with single points of failure or limited resiliency, 
especially at suppliers third-tier and lower;

(iv) energy consumption and opportunities to increase resiliency through 
better energy management;

(v) current domestic education and manufacturing workforce skills;

(vi) exclusive or dominant supply of the goods (or components thereof) 
identified pursuant to subsection (a) of this section by or through nations 
that are or are likely to become unfriendly or unstable; and

(vii) the availability of substitutes for or alternative sources for the 
goods identified pursuant to subsection (a) of this section;

                    (e) identifies the causes of any aspect of the 
                defense industrial base or national-security-related 
                supply chains assessed as deficient pursuant to 
                subsection (d) of this section; and
                    (f) recommends such legislative, regulatory, and 
                policy changes and other actions by the President or 
                the heads of agencies as they deem appropriate based 
                upon a reasoned assessment that the benefits outweigh 
                the costs (broadly defined to include any economic, 
                strategic, and national security benefits or costs) 
                over the short, medium, and long run to:

(i) avoid, or prepare for, any contingencies identified pursuant to 
subsection (c) of this section;

(ii) ameliorate any aspect of the defense industrial base or national-
security-related supply chains assessed as deficient pursuant to subsection 
(d) of this section; and

(iii) strengthen the United States manufacturing capacity and defense 
industrial base and increase the resiliency of supply chains critical to 
national security.

                Sec. 3. General Provisions. (a) Nothing in this order 
                shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or 
the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget 
relating to budgetary, administrative, or legislative proposals.

                    (b) This order shall be implemented consistent with 
                applicable law and subject to the availability of 
                appropriations.

[[Page 34599]]

                    (c) This order is not intended to, and does not, 
                create any right or benefit, substantive or procedural, 
                enforceable at law or in equity by any party against 
                the United States, its departments, agencies, or 
                entities, its officers, employees, or agents, or any 
                other person.
                
                
                    (Presidential Sig.)

                THE WHITE HOUSE,

                    July 21, 2017.

[FR Doc. 2017-15860
Filed 7-25-17; 8:45 am]
Billing code 3295-F7-P