[Senate Report 107-319]
[From the U.S. Government Publishing Office]
Calendar No. 736
107th Congress Report
2d Session 107-319
ENTERPRISE INTEGRATION ACT
R E P O R T
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
DATE deg.October 16, 2002.--Ordered to be printed
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred seventh congress
ERNEST F. HOLLINGS, South Carolina, Chairman
DANIEL K. INOUYE, Hawaii JOHN McCAIN, Arizona
JOHN D. ROCKEFELLER IV, West TED STEVENS, Alaska
Virginia CONRAD BURNS, Montana
JOHN F. KERRY, Massachusetts TRENT LOTT, Mississippi
JOHN B. BREAUX, Louisiana KAY BAILEY HUTCHISON, Texas
BYRON L. DORGAN, North Dakota OLYMPIA J. SNOWE, Maine
RON WYDEN, Oregon SAM BROWNBACK, Kansas
MAX CLELAND, Georgia GORDON SMITH, Oregon
BARBARA BOXER, California PETER G. FITZGERALD, Illinois
JOHN EDWARDS, North Carolina JOHN ENSIGN, Nevada
JEAN CARNAHAN, Missouri GEORGE ALLEN, Virginia
BILL NELSON, Florida
Kevin D. Kayes, Staff Director
Moses Boyd, Chief Counsel
Gregg Elias, General Counsel
Jeanne Bumpus, Republican Staff Director and General Counsel
Ann Begeman, Republican Deputy Staff Director
Robert W. Chamberlin, Republican Chief Counsel
Calendar No. 736
107th Congress Report
2d Session 107-319
ENTERPRISE INTEGRATION ACT
October 16, 2002.--Ordered to be printed
Mr. Hollings, from the Committee on Commerce, Science, and
Transportation, submitted the following
R E P O R T
[To accompany H.R. 2733]
The Committee on Commerce, Science, and Transportation, to
which was referred the Act (H.R. 2733) TITLE deg. to
authorize the National Institute of Standards and Technology to
work with major manufacturing industries on an initiative of
standards development and implementation for electronic
enterprise integration, having considered the same, reports
favorably thereon without amendment and recommends that the Act
Purpose of the Bill
The purpose of the Act, the Enterprise Integration Act of
2001, is to establish an Enterprise Integration Initiative at
the National Institute of Standards and Technology (NIST). This
initiative would help companies better coordinate information
exchange throughout the supply chain.
Background, Needs, and Summary of Major Provisions
Manufacturers in today's marketplace must be more flexible,
efficient, and responsive to changes in customer preference.
Around the world manufacturers are shifting from the old
production model, in which a given product changed slowly and
represented the aggregate preferences of consumers, to a new
model in which manufacturers can more easily produce customized
products to satisfy more specialized and changing consumer
Developing a seamless exchange of information without data
loss or corruption up and down the supply chain would enable
manufacturers to improve their efficiency and meet these new
demands. Unfortunately today's software and information
technology systems frequently lack interoperability--
incompatible applications prevent manufacturers and suppliers
from easily sharing data and information about design
specifications, component modifications, etc.
Seamless electronic integration along the vertical supply
chain is known as ``enterprise integration''. A February 2001
report by the National Coalition for Advanced Manufacturing
identified ways that the Federal government, in addition to
manufacturing industries and software companies, could help
promote enterprise integration. H.R. 2733 would address several
of these recommendations.
The Act would establish an Enterprise Integration Initiative
at the NIST. The initiative would help companies better
coordinate information exchange throughout the supply chain, so
that information can flow to all companies along the supply
chain without data loss or corruption. For example, if Ford
Motor Company changes a design specification for a bumper,
every one of the suppliers that contribute to that part would
be able to quickly and easily see how the new specification
affects their component. This kind of integration would help
businesses, large and small, reduce costs and design cycle
times, and increase efficiency when changing a product.
Under the Act, NIST would work with industry to develop road
maps that outline the steps a given industry must take to
become more electronically integrated. NIST would help industry
develop voluntary consensus standards and agreements on
protocols for information exchange and provide assistance to
conduct pilot projects to support the initiative.
The Act would authorize $2 million for fiscal year (FY) 2002,
$10 million for FY 2003, $15 million for FY 2004, and $20
million for FY 2005 for these activities.
The Act passed the House of Representatives by a vote of 397-
22 on July 11, 2002, and it was referred to the Senate
Committee on Commerce, Science, and Technology. The Committee
held a hearing on the Department of Commerce's Technology
Administration, including NIST, on April 16, 2002.
The Committee met in Executive Session on September 19, 2002,
and ordered the Act reported, without amendment.
In accordance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate and section 403 of the
Congressional Budget Act of 1974, the Committee provides the
following cost estimate, prepared by the Congressional Budget
Congressional Budget Office,
Washington, DC, September 25, 2002.
Hon. Ernest F. Hollings,
Chairman, Committee on Commerce, Science, and Transportation, U.S.
Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2733, the
Enterprise Integration Act of 2002.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Ken Johnson.
Barry B. Anderson
(For Dan L. Crippen, Director).
H.R. 2733--Enterprise Integration Act of 2002
Summary: H.R. 2733 would require the National Institute of
Standards and Technology (NIST) to perform research, provide
technical assistance, and develop standards related to
enterprise integration. Enterprise integration is the effort to
facilitate the exchange of data among manufacturing companies
within supply chains. The act would authorize the appropriation
of $45 million over three years to carry out these activities.
Assuming the appropriation of the specified amounts, CBO
estimates that implementing H.R. 2733 would cost about $45
million during the 2003-2007 period. The act would not affect
direct spending or receipts; therefore, pay-as-you-go
procedures would not apply.
H.R. 2733 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would not affect the budgets of state, local, or tribal
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 2733 is shown in the following table.
The costs of this legislation fall within budget function 370
(commerce and housing credit).
By fiscal year, in million of dollars--
2003 2004 2005 2006 2007
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Authorization Level................................................ 10 15 20 0 0
Estimated Outlays.................................................. 8 14 19 4 0
Basis of estimate: H.R. 2733 would authorize the
appropriation of $45 million over three years for NIST to
undertake a variety of activities to promote enterprise
integration. For this estimate, CBO assumes that the act will
be enacted this fall, and that funds will be appropriated
around the beginning of each fiscal year. Based on the
historical spending patterns of similar NIST programs, CBO
estimates that implementing H.R. 2733 would cost about $8
million in 2003 and $45 million over the 2003-2006 period,
assuming the appropriation of the specified amounts.
Intergovernmental and private-sector impact: H.R. 2733
contains no intergovernmental or private-sector mandates as
defined in UMRA and would not affect the budgets of state,
local, or tribal governments.
Previous CBO estimate: On June 3, 2002, CBO transmitted a
cost estimate for H.R. 2733, as ordered reported by the House
Committee on Science on May 22, 2002. The two versions of the
legislation are nearly identical, and the estimated costs are
similar. However, in the previous estimate, CBO assumed that an
appropriation of $2 million would be enacted to implement the
new program in 2002, and estimated that those funds would be
spent in 2003.
Estimate prepared by: Federal Costs: Ken Johnson; Impact on
State, Local, and Tribal Governments: Angela Seitz; and Impact
on the Private Sector: Paige Piper/Bach.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Regulatory Impact Statement
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported:
NUMBER OF PERSONS COVERED
The Committee believes that the Act would not subject any
individuals or businesses affected by the legislation to any
The Act would not have an adverse economic impact on the
Nation. It would authorize funding for the establishment of an
enterprise integration initiative to increase industry
efficiency and lower manufacturing costs.
The Act would not have a negative impact on the personal
privacy of individuals.
The Act would not increase paperwork requirements for private
individuals or businesses. The Act would require the Director
of NIST to submit a report on the activities of the enterprise
integration initiative that would be established under H.R.
Section 1. Short title
Section 1 would cite the short title of the reported Act as
the ``Enterprise Integration Act of 2001.''
Section 2. Findings
Section 2 would make several findings in support of the
enterprise integration initiative. Among the findings is a
declaration that it is in the national interest that NIST
accelerate its ongoing efforts to help industry develop
standards and enterprise integration processes to increase
efficiency and lower costs.
Section 3. Enterprise integration initiative
Subsection (a) would require the Director of NIST to
establish an enterprise integration initiative within the
United States to develop and implement standards and protocols
to enable major manufacturing industries and businesses,
including small businesses, to electronically exchange product-
and standards-related information. The initiative would involve
the NIST laboratories, the Manufacturing Extension Program
(MEP), and the Malcolm Baldrige National Quality Program, where
appropriate. The initiative, involving consortia of Government
and industry, would build upon ongoing efforts of NIST and the
Under subsection (b), the Director would be permitted to work
with industry representatives, trade associations, professional
societies, and others as appropriate to identify all enterprise
standardization and implementation activities underway
affecting that industry. The Director also would be authorized
to assess the current state of enterprise integration within
major manufacturing industries and to assist industry
representatives and organizations in the development of
roadmaps, based on voluntary consensus standards, that permit
supply chains to operate as an integrated electronic
Subsection (c) would require the Director of NIST to submit
to the House of Representatives Committee on Science and the
Senate Committee on Commerce, Science, and Transportation
within 180 days after the enactment of this legislation, and
annually thereafter, a report on the activities of the
Subsection (d) would authorize the Director of NIST to work
with industry, trade associations, professional societies, and
others as appropriate, to carry out the following activities in
support of the legislation:
Raise awareness of enterprise integration
activities, including convening conferences and
conducting outreach to businesses that are owned by
women or minorities.
Develop enterprise integration roadmaps.
Support the development, testing,
promulgation, integration, adoption and upgrading of
standards relating to enterprise integration, including
Provide technical assistance and, if
necessary, financial support to small and medium-sized
businesses that set up pilot projects in enterprise
Subsection (e) would require the Director of NIST to ensure
that the MEP is prepared to advise small to medium-sized
businesses on how to acquire the expertise, equipment, and
training necessary to participate fully in supply chains using
Section 4. Definitions
Section 4 would define the terms ``automotive'',
``Director'', ``enterprise integration'', ``major manufacturing
industry'', and ``road map''.
Section 5. Authorization of appropriations
Section 5 would authorize appropriations of $2 million for FY
2002, $10 million for FY 2003, $15 million for FY 2004, and $20
million for FY 2005 for NIST's Enterprise Integration
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the Standing
Rules of the Senate, the Committee states that the Act as
reported would make no change to existing law.