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(b) Each agency head shall take appropriate action to ensure that critical components or critical technology items are available from reliable sources when needed to meet defense requirements during peacetime, graduated mobilization, and national emergency. "Appropriate action" may include restricting contract solicitations to reliable sources, restricting contract solicitations to domestic sources (pursuant to statutory authority), stockpiling critical components, and developing substitutes for critical components or critical technology items.
Sec. 311. Strengthening Domestic Capability. An agency head, in accordance with section 107(a) of the Act, may utilize the authority of Title Iii of the Act or any other provision of law, in consultation with the Secretary of Defense, to provide appropriate incentives to develop, maintain, modernize, andexpand the productive capacities of domestic sources for critical components, critical technology items, and industrial resources essential for the execution of the national security strategy of the United States.
Sec. 312. Modernization of Equipment. An agency head, in accordance with section 108(b) of the Act, may utilize the authority of Title Iii of the Act to guarantee the purchase or lease of advance manufacturing equipment and any related services with respect to any such equipment for purposes of the Act.
Part Iv - Impact Of Offsets
Sec. 401. Offsets. (a) The responsibilities and authority conferred upon the President by section 309 of the Act with respect to offsets are delegated to the Secretary of Commerce, who shall function as the President's Executive Agent for carrying out this authority.
(b) The Secretary of Commerce shall prepare the annual report required by section 309(a) of the Act in consultation with the Secretaries of Defense, Treasury, Labor, State, the United States Trade Representative, the Arms Control and Disarmament Agency, the Director of Central Intelligence, and the headsof other departments and agencies as required. The heads of Federal departments and agencies shall provide the Secretary of Commerce with such information as may be necessary for the effective performance of this function.
(c) The offset report shall be subject to the normal interagency clearance process conducted by the Director, Omb, prior to the report's submission by the President to Congress.
Part V - Voluntary Agreements And Advisory Committees
Sec. 501. Appointments. The authority of the President under sections 708(c) and (d) of the Act is delegated to the heads of each Federal department or agency, except that, insofar as that authority relates to section 101 of the Act, it is delegated only to the heads of each Federal department or agency assigned functions under section 201(a) of this order. The authority delegated under this section shall be exercised pursuant tothe provisions of section 708 of the Act, and copies and the status of the use of such delegations shall be furnished to the Director, Fema.
Sec. 502. Advisory Committees. The authority of the President under section 708(d) of the Act and delegated in section 501 of this order (relating to establishment of advisory committees) shall be exercised only after consultation with, and in accordance with, guidelines and procedures established by the Administrator of General Services.
Part Vi - Employment Of Personnel
Sec. 601. National Defense Executive Reserve. (a) In accordance with section 710(e) of the Act, there is established in the Executive Branch a National Defense Executive Reserve ("Nder") composed of persons of recognized expertise from various segments of the private sector and from government (except full-time federal employees) for training for employment in executive positions in the Federal Government in the event of an emergency that requires such employment.
(b) The head of any department or agency may establish a unit of the Nder in the department or agency and train members of that unit.
(c) The head of each department or agency with an Nder unit is authorized to exercise the President's authority to employ civilian personnel in accordance with section 703(a) of theAct when activating all or a part of its Nder unit. The exercise of this authority shall be subject to the provisions of subsections 601(d) and (e) of this order and shall not be redelegated.
(d) The head of a department or agency may activate an Nder unit, in whole or in part, upon the written determination that an emergency affecting the national security or defense preparedness of the United States exists and that the activation of the unit is necessary to carry out the emergency program functions of the department or agency.
(e) At least 72 hours prior to activating the Nder unit, the head of the department or agency shall notify, in writing, the Assistant to the President for National Security Affairs ofthe impending activation and provide a copy of the determination required under subsection 601(d) of this order.
(f) The Director, Fema, shall coordinate the Nder program activities of departments and agencies in establishing units of the Reserve; provide for appropriate guidance for recruitment, training, and activation; and issue necessary rules and guidance in connection with the program.
(g) This order suspends any delegated authority, regulation, or other requirement or condition with respect to the activation of any Nder unit, in whole or in part, or appointment of any Nder member that is inconsistent with the authorities delegated herein, provided that the aforesaid suspension applies only as longas sections 703(a) and 710(e) of the Act are in effect.
Sec. 602. Consultants. The head of each department or agency assigned functions under this order is delegated authority under sections 710(b) and (c) of the Act to employ persons of outstanding experience and ability without compensation and to employ experts, consultants, or organizations. The authority delegated by this section shall not be redelegated.
Part Vii - Labor Supply
Sec. 701. Secretary of Labor. The Secretary of Labor, identified in this section as the Secretary, shall:
(a) Collect, analyze, and maintain data needed to make a continuing appraisal of the nation's labor requirements and the supply of workers for purposes of national defense. All agencies of the government shall cooperate with the Secretary in furnishing information necessary for this purpose, to the extent permitted by law;
(b) In response to requests from the head of a Federal department or agency engaged in the procurement for national defense, consult with and advise that department or agency with respect to (1) the effect of contemplated actions on labor supply and utilization, (2) the relation of labor supply to materials and facilities requirements, and (3) such other matters as will assist in making the exercise of priority and allocations functions consistent with effective utilization and distribution of labor;
(c) Formulate plans, programs, and policies for meeting defense and essential civilian labor requirements;
(d) Project skill shortages to facilitate meeting defense and essential civilian needs and establish training programs;
(e) Determine the occupations and skills critical to meeting the labor requirements of defense and essential civilian activities and, with the assistance of the Secretary of Defense,
the Director of Selective Service, and such other persons as the Director, Fema, may designate, develop policies regulating the induction and deferment of personnel for the armed services, except for civilian personnel in the reserves; and (f) Administer an effective labor-management relations policy to support the activities and programs under this order with the cooperation of other Federal agencies, including the National Labor Relations Board and the Federal Mediation and Conciliation Service.
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