‘‘(d) ADDITIONAL ASSESSMENTS.—The Institute, at 
the discretion of the Director, also may contract with the 
National Research Council to conduct additional assess-
ments of Institute programs and projects that involve col-
laboration across the Institute laboratories and centers and 
assessments of selected scientific and technical topics. 
‘‘(e) CONSULTATION WITH VISITING COMMITTEE ON 
ADVANCED TECHNOLOGY.—The National Research Council 
may consult with the Visiting Committee on Advanced 
Technology established under section 10 in performing the 
assessments under this section. 
‘‘(f) REPORTS.—Not later than 30 days after the com-
pletion of each assessment, the Institute shall transmit the 
report on such assessment to the Committee on Science, 
Space, and Technology of the House of Representatives and 
the Committee on Commerce, Science, and Transportation 
of the Senate.’’. 
SEC. 408. HOLLINGS MANUFACTURING EXTENSION PART-
NERSHIP. 
Section 25 of the National Institute of Standards and 
Technology Act (15 U.S.C. 278k) is amended to read as fol-
lows: 
‘‘SEC. 25. HOLLINGS MANUFACTURING EXTENSION PART-
NERSHIP. 
‘‘(a) ESTABLISHMENT AND PURPOSE.— 
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‘‘(1) IN GENERAL.—The Secretary, through the 
Director and, if appropriate, through other officials, 
shall provide assistance for the creation and support 
of manufacturing extension centers, to be known as 
the ‘Hollings Manufacturing Extension Centers’, for 
the transfer of manufacturing technology and best 
business practices (in this Act referred to as the ‘Cen-
ters’). The program under this section shall be known 
as the ‘Hollings Manufacturing Extension Partner-
ship’. 
‘‘(2) AFFILIATIONS.—Such Centers shall be af-
filiated with any United States-based public or non-
profit institution or organization, or group thereof, 
that applies for and is awarded financial assistance 
under this section. 
‘‘(3) OBJECTIVE.—The objective of the Centers is 
to enhance competitiveness, productivity, and techno-
logical performance in United States manufacturing 
through— 
‘‘(A) the transfer of manufacturing tech-
nology and techniques developed at the Institute 
to Centers and, through them, to manufacturing 
companies throughout the United States; 
‘‘(B) the participation of individuals from 
industry, institutions of higher education, State 
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governments, other Federal agencies, and, when 
appropriate, the Institute in cooperative tech-
nology transfer activities; 
‘‘(C) efforts to make new manufacturing 
technology and processes usable by United 
States-based small and medium-sized companies; 
‘‘(D) the active dissemination of scientific, 
engineering, technical, and management infor-
mation about manufacturing to industrial firms, 
including small and medium-sized manufac-
turing companies; 
‘‘(E) the utilization, when appropriate, of 
the expertise and capability that exists in Fed-
eral laboratories other than the Institute; 
‘‘(F) the provision to community colleges 
and area career and technical education schools 
of information about the job skills needed in 
small and medium-sized manufacturing busi-
nesses in the regions they serve; and 
‘‘(G) promoting and expanding certification 
systems offered through industry, associations, 
and local colleges, when appropriate. 
‘‘(b) ACTIVITIES.—The activities of the Centers shall 
include— 
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‘‘(1) the establishment of automated manufac-
turing systems and other advanced production tech-
nologies, based on Institute-supported research, for the 
purpose of demonstrations and technology transfer; 
‘‘(2) the active transfer and dissemination of re-
search findings and Center expertise to a wide range 
of companies and enterprises, particularly small and 
medium-sized manufacturers; and 
‘‘(3) the facilitation of collaborations and part-
nerships between small and medium-sized manufac-
turing companies and community colleges and area 
career and technical education schools to help such 
colleges and schools better understand the specific 
needs of manufacturers and to help manufacturers 
better understand the skill sets that students learn in 
the programs offered by such colleges and schools. 
‘‘(c) OPERATIONS.— 
‘‘(1) FINANCIAL SUPPORT.—The Secretary may 
provide financial support to any Center created 
under subsection (a). The Secretary may not provide 
to a Center more than 50 percent of the capital and 
annual operating and maintenance funds required to 
create and maintain such Center. 
‘‘(2) REGULATIONS.—The Secretary shall imple-
ment, review, and update the sections of the Code of 
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Federal Regulations related to this section at least 
once every 3 years. 
‘‘(3) APPLICATION.— 
‘‘(A) IN GENERAL.—Any nonprofit institu-
tion, or consortium thereof, or State or local gov-
ernment, may submit to the Secretary an appli-
cation for financial support under this section, 
in accordance with the procedures established by 
the Secretary. 
‘‘(B) COST SHARING.—In order to receive 
assistance under this section, an applicant for fi-
nancial assistance under subparagraph (A) shall 
provide adequate assurances that non-Federal as-
sets obtained from the applicant and the appli-
cant’s partnering organizations will be used as a 
funding source to meet not less than 50 percent 
of the costs incurred. For purposes of the pre-
ceding sentence, the costs incurred means the 
costs incurred in connection with the activities 
undertaken to improve the competitiveness, man-
agement, productivity, and technological per-
formance of small and medium-sized manufac-
turing companies. 
‘‘(C) AGREEMENTS
WITH
OTHER
ENTI-
TIES.—In meeting the 50 percent requirement, it 
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is anticipated that a Center will enter into 
agreements with other entities such as private 
industry, institutions of higher education, and 
State governments to accomplish programmatic 
objectives and access new and existing resources 
that will further the impact of the Federal in-
vestment made on behalf of small and medium- 
sized manufacturing companies. 
‘‘(D) 
LEGAL
RIGHTS.—Each 
applicant 
under subparagraph (A) shall also submit a pro-
posal for the allocation of the legal rights associ-
ated with any invention which may result from 
the proposed Center’s activities. 
‘‘(4) MERIT REVIEW.—The Secretary shall sub-
ject each such application to merit review. In making 
a decision whether to approve such application and 
provide financial support under this section, the Sec-
retary shall consider, at a minimum, the following: 
‘‘(A) The merits of the application, particu-
larly those portions of the application regarding 
technology transfer, training and education, and 
adaptation of manufacturing technologies to the 
needs of particular industrial sectors. 
‘‘(B) The quality of service to be provided. 
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‘‘(C) Geographical diversity and extent of 
service area. 
‘‘(D) The percentage of funding and amount 
of in-kind commitment from other sources. 
‘‘(5) EVALUATION.— 
‘‘(A) IN GENERAL.—Each Center that re-
ceives financial assistance under this section 
shall be evaluated during its third year of oper-
ation by an evaluation panel appointed by the 
Secretary. 
‘‘(B) COMPOSITION.—Each such evaluation 
panel shall be composed of private experts, none 
of whom shall be connected with the involved 
Center, and Federal officials. 
‘‘(C) CHAIR.—An official of the Institute 
shall chair the panel. 
‘‘(D) PERFORMANCE MEASUREMENT.—Each 
evaluation panel shall measure the involved Cen-
ter’s performance against the objectives specified 
in this section. 
‘‘(E) POSITIVE EVALUATION.—If the evalua-
tion is positive, the Secretary may provide con-
tinued funding through the sixth year. 
‘‘(F) PROBATION.—The Secretary shall not 
provide funding unless the Center has received a 
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positive evaluation. A Center that has not re-
ceived a positive evaluation by the evaluation 
panel shall be notified by the panel of the defi-
ciencies in its performance and shall be placed 
on probation for one year, after which time the 
panel shall reevaluate the Center. If the Center 
has not addressed the deficiencies identified by 
the panel, or shown a significant improvement 
in its performance, the Director shall conduct a 
new competition to select an operator for the 
Center or may close the Center. 
‘‘(G) ADDITIONAL
FINANCIAL
SUPPORT.— 
After the sixth year, a Center may receive addi-
tional financial support under this section if it 
has received a positive evaluation through an 
independent review, under procedures established 
by the Institute. 
‘‘(H) EIGHT-YEAR REVIEW.—A Center shall 
undergo an independent review in the 8th year 
of operation. Each evaluation panel shall meas-
ure the Center’s performance against the objec-
tives specified in this section. A Center that has 
not received a positive evaluation as a result of 
an independent review shall be notified by the 
Program of the deficiencies in its performance 
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and shall be placed on probation for one year, 
after which time the Program shall reevaluate 
the Center. If the Center has not addressed the 
deficiencies identified by the review, or shown a 
significant improvement in its performance, the 
Director shall conduct a new competition to se-
lect an operator for the Center or may close the 
Center. 
‘‘(I) RECOMPETITION.—If a recipient of a 
Center award has received financial assistance 
for 10 consecutive years, the Director shall con-
duct a new competition to select an operator for 
the Center consistent with the plan required in 
this Act. Incumbent Center operators in good 
standing shall be eligible to compete for the new 
award. 
‘‘(J) REPORTS.— 
‘‘(i) PLAN.—Not later than 180 days 
after the date of enactment of the America 
COMPETES Reauthorization Act of 2015, 
the Director shall transmit to the Com-
mittee on Science, Space, and Technology of 
the House of Representatives and the Com-
mittee on Commerce, Science, and Trans-
portation of the Senate a plan as to how the 
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Institute will conduct reviews, assessments, 
and reapplication competitions under this 
paragraph. 
‘‘(ii) INDEPENDENT
ASSESSMENT.— 
The Director shall contract with an inde-
pendent organization to perform an assess-
ment of the implementation of the re-
application competition process under this 
paragraph within 3 years after the trans-
mittal of the report under clause (i). The or-
ganization conducting the assessment under 
this clause may consult with the MEP Advi-
sory Board. 
‘‘(iii) COMPARISON OF CENTERS.—Not 
later than 2 years after the date of enact-
ment of the America COMPETES Reau-
thorization Act of 2015, the Director shall 
transmit to the Committee on Science, 
Space, and Technology of the House of Rep-
resentatives and the Committee on Com-
merce, Science, and Transportation of the 
Senate a report providing information on 
the first and second years of operations for 
centers operating from new competitions or 
recompetition as compared to longstanding 
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centers. The report shall provide detail on 
the engagement in services provided by Cen-
ters and the characteristics of services pro-
vided, including volume and type of serv-
ices, so that the Committees can evaluate 
whether the cost-sharing ratio has an effect 
on the services provided at Centers. 
‘‘(6) PATENT RIGHTS.—The provisions of chapter 
18 of title 35, United States Code, shall apply, to the 
extent not inconsistent with this section, to the pro-
motion of technology from research by Centers under 
this section except for contracts for such specific tech-
nology extension or transfer services as may be speci-
fied by statute or by the Director. 
‘‘(7) PROTECTION OF CENTER CLIENT CONFIDEN-
TIAL INFORMATION.—Section 552 of title 5, United 
States Code, shall apply to the following information 
obtained by the Federal Government on a confidential 
basis in connection with the activities of any partici-
pant involved in the Hollings Manufacturing Exten-
sion Partnership: 
‘‘(A) Information on the business operation 
of any participant in a Hollings Manufacturing 
Extension Partnership program or of a client of 
a Center. 
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‘‘(B) Trade secrets possessed by any client 
of a Center. 
‘‘(8) ADVISORY
BOARDS.—Each Center’s advi-
sory boards shall institute a conflict of interest policy, 
approved by the Director, that ensures the Board rep-
resents local small and medium-sized manufacturers 
in the Center’s region. Board Members may not serve 
as a vendor or provide services to the Center, nor may 
they serve on more than one Center’s oversight board 
simultaneously. 
‘‘(d) ACCEPTANCE OF FUNDS.— 
‘‘(1) IN GENERAL.—In addition to such sums as 
may be appropriated to the Secretary and Director to 
operate the Hollings Manufacturing Extension Part-
nership, the Secretary and Director also may accept 
funds from other Federal departments and agencies 
and, under section 2(c)(7), from the private sector for 
the purpose of strengthening United States manufac-
turing. 
‘‘(2) ALLOCATION OF FUNDS.— 
‘‘(A) FUNDS ACCEPTED FROM OTHER FED-
ERAL DEPARTMENTS OR AGENCIES.—The Direc-
tor shall determine whether funds accepted from 
other Federal departments or agencies shall be 
counted in the calculation of the Federal share of 
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capital and annual operating and maintenance 
costs under subsection (c). 
‘‘(B) FUNDS ACCEPTED FROM THE PRIVATE 
SECTOR.—Funds accepted from the private sector 
under section 2(c)(7), if allocated to a Center, 
may not be considered in the calculation of the 
Federal share under subsection (c) of this section. 
‘‘(e) MEP ADVISORY BOARD.— 
‘‘(1) 
ESTABLISHMENT.—There 
is 
established 
within the Institute a Manufacturing Extension Part-
nership Advisory Board (in this subsection referred to 
as the ‘MEP Advisory Board’). 
‘‘(2) MEMBERSHIP.— 
‘‘(A) IN
GENERAL.—The MEP Advisory 
Board shall consist of not fewer than 10 members 
broadly representative of stakeholders, to be ap-
pointed by the Director. At least 2 members shall 
be employed by or on an advisory board for the 
Centers, at least 1 member shall represent a com-
munity college, and at least 5 other members 
shall be from United States small businesses in 
the manufacturing sector. No member shall be an 
employee of the Federal Government. 
‘‘(B) TERM.—Except as provided in sub-
paragraph (C) or (D), the term of office of each 
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member of the MEP Advisory Board shall be 3 
years. 
‘‘(C) VACANCIES.—Any member appointed 
to fill a vacancy occurring prior to the expira-
tion of the term for which his predecessor was 
appointed shall be appointed for the remainder 
of such term. 
‘‘(D) SERVING CONSECUTIVE TERMS.—Any 
person who has completed two consecutive full 
terms of service on the MEP Advisory Board 
shall thereafter be ineligible for appointment 
during the one-year period following the expira-
tion of the second such term. 
‘‘(3) MEETINGS.—The MEP Advisory Board 
shall meet not less than 2 times annually and shall 
provide to the Director— 
‘‘(A) advice on Hollings Manufacturing Ex-
tension Partnership programs, plans, and poli-
cies; 
‘‘(B) assessments of the soundness of Hol-
lings 
Manufacturing 
Extension 
Partnership 
plans and strategies; and 
‘‘(C) assessments of current performance 
against Hollings Manufacturing Extension Part-
nership program plans. 
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‘‘(4) FEDERAL ADVISORY COMMITTEE ACT APPLI-
CABILITY.— 
‘‘(A) IN GENERAL.—In discharging its du-
ties under this subsection, the MEP Advisory 
Board shall function solely in an advisory ca-
pacity, in accordance with the Federal Advisory 
Committee Act. 
‘‘(B) EXCEPTION.—Section 14 of the Fed-
eral Advisory Committee Act shall not apply to 
the MEP Advisory Board. 
‘‘(5) REPORT.—The MEP Advisory Board shall 
transmit an annual report to the Secretary for trans-
mittal to Congress within 30 days after the submis-
sion to Congress of the President’s annual budget re-
quest in each year. Such report shall address the sta-
tus of the program established pursuant to this section 
and comment on the relevant sections of the pro-
grammatic planning document and updates thereto 
transmitted to Congress by the Director under sub-
sections (c) and (d) of section 23. 
‘‘(f) COMPETITIVE GRANT PROGRAM.— 
‘‘(1) ESTABLISHMENT.—The Director shall estab-
lish, within the Hollings Manufacturing Extension 
Partnership, under this section and section 26, a pro-
gram of competitive awards among participants de-
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scribed in paragraph (2) for the purposes described in 
paragraph (3). 
‘‘(2) 
PARTICIPANTS.—Participants 
receiving 
awards under this subsection shall be the Centers, or 
a consortium of such Centers. 
‘‘(3) PURPOSE.—The purpose of the program 
under this subsection is to add capabilities to the 
Hollings Manufacturing Extension Partnership, in-
cluding the development of projects to solve new or 
emerging manufacturing problems as determined by 
the Director, in consultation with the Director of the 
Hollings Manufacturing Extension Partnership pro-
gram, the MEP Advisory Board, and small and me-
dium-sized manufacturers. One or more themes for the 
competition may be identified, which may vary from 
year to year, depending on the needs of manufactur-
ers and the success of previous competitions. Centers 
may be reimbursed for costs incurred under the pro-
gram. 
‘‘(4) APPLICATIONS.—Applications for awards 
under this subsection shall be submitted in such man-
ner, at such time, and containing such information 
as the Director shall require, in consultation with the 
MEP Advisory Board. 
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