[Congressional Record Volume 162, Number 84 (Thursday, May 26, 2016)]
[Senate]
[Pages S3346-S3347]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 4348. Ms. BALDWIN submitted an amendment intended to be proposed 
by her to the bill S. 2943, to authorize appropriations for fiscal year 
2017 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of subtitle B of title II, add the following:

     SEC. 221. REPORT ON NATIONAL SECURITY IMPLICATIONS OF 
                   INDEPENDENT RESEARCH AND DEVELOPMENT 
                   INVESTMENTS WITHIN THE DEFENSE INDUSTRY.

       Not later than 180 days after the date of the enactment of 
     this Act, the Secretary of

[[Page S3347]]

     Defense shall submit to the congressional defense committees 
     a report on the national security implications of independent 
     research and development investments within the defense 
     industry. The report shall include the following:
       (1) An assessment of the short-term and long-term 
     implications for the national security of the United States 
     with respect to innovation, modernization, and technological 
     superiority resulting from low levels of independent research 
     and development investment within the defense industry.
       (2) For fiscal years 2015 and 2016, an analysis of how 
     firms in the defense industry have allocated corporate 
     earnings, including a breakdown by allocation types such as--
       (A) investments in research and development, labor force, 
     or capital improvements;
       (B) merger or acquisition activities; or
       (C) activities to primarily increase shareholder value.
       (3) An assessment whether regulations and acquisition 
     policies of the Department of Defense provide incentives for 
     firms in the defense industry to place a priority on short-
     term targets for earnings-per-share rather than on long-term 
     capital investments.
       (4) Such recommendations for legislative or administrative 
     action as the Secretary considers appropriate to encourage, 
     facilitate, and enhance independent research and development 
     investments within the defense industry, and to spur 
     innovation within the defense industry.
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