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

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:

    (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.

    (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.