I
103D CONGRESS
1ST SESSION
H. R. 1675
To provide for enhanced cooperation between the Federal Government and
the United States civil aviation manufacturing industry in aeronautical
technology research, development, design, and commercialization, and
for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 2, 1993
Mr. GEJDENSON (for himself and Mr. GEPHARDT) introduced the following
bill; which was referred jointly to the Committees on Science and Tech-
nology and Public Works and Transportation
A BILL
To provide for enhanced cooperation between the Federal
Government and the United States civil aviation manu-
facturing industry in aeronautical technology research,
development, design, and commercialization, and for
other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Aeronautical Tech-
nology Consortium Act of 1993’’.
SEC. 2. FINDINGS AND PURPOSES.
(a) FINDINGS.—The Congress finds the following:
(1) A strong civil aviation manufacturing indus-
try is critical to the health of the United States
economy; aircraft production in the United States
affects nearly 80 percent of the economy, and for
every additional dollar of shipments of aircraft, out-
put of the economy increases by an estimated $2.30.
(2) A strong civil aviation manufacturing indus-
try is critical to the national security of the United
States because of the synergies between civil and
military aeronautical technologies and the need for a
strong advanced technology industrial base.
(3) The National Critical Technologies Panel
(established pursuant to section 601 of the National
Science and Technology Policy, Organization, and
Priorities Act of 1976 (42 U.S.C. 6681)) has identi-
fied aeronautics as one of 22 categories of tech-
nologies critical to national economic prosperity and
to national security.
(4) While the United States has traditionally
dominated the world commercial aircraft market, the
United States civil aviation manufacturing industry
is facing the two critical challenges of significant
cutbacks in defense procurement and related mili-
tary spending, and the growing competitive strength
of foreign subsidized aviation industries, such as the
European aircraft consortium, Airbus Industrie.
(5) Airbus Industrie, a consortium of 4 Euro-
pean aircraft manufacturing companies that are sup-
ported by their governments, has developed a family
of competitive aircraft models and has captured 1⁄4
of the world market for large civil aircraft.
(6) In 1992, the United States signed an agree-
ment with the European Community that permits
the European governments to continue to subsidize
up to 33 percent of the development costs of new
large civil aircraft.
(7) Given current and expected reductions in
defense spending and increased competitive pres-
sures in the civil aircraft market, it is critical for the
Federal Government to coordinate its aeronautics
and related programs and redirect these resources to
assist the United States civil aviation manufacturing
industry to meet the competitive challenge from for-
eign suppliers such as Airbus Industrie.
(8) The Federal Government has played an ac-
tive role in research and development of aeronautical
technologies since the National Advisory Committee
on Aeronautics was created in 1915.
(9) In recent years, however, Federal Govern-
ment support for aerospace research and develop-
ment has focused overwhelmingly on military and
space technologies.
(10) Federal programs relating to aeronautics
research and development today are spread among a
number of differing Federal agencies, including the
Department of Defense, the Department of Trans-
portation, and the Department of Commerce, as well
as the National Aeronautics and Space Administra-
tion and the National Science Foundation.
(11) Federal financial assistance to the semi-
conductor industry consortium known as Sematech
has been successful in improving the competitiveness
of the United States semiconductor industry.
(12) The Federal Government should use
Sematech as a model in developing a program to
provide financial assistance to an industry-led con-
sortium of United States civil aviation manufactur-
ing companies.
(13) Such a government-industry consortium
should focus its efforts on research, development, de-
sign, and commercialization of new aeronautical
technologies and related manufacturing technologies,
as well as the transfer and conversion of aeronauti-
cal technologies developed for national security pur-
poses to commercial applications for large civil air-
craft.
(b) PURPOSE.—The purpose of this Act is to
strengthen and assist the United States civil aviation man-
ufacturing industry.
SEC. 3. DEFINITIONS.
For purposes of this Act:
(1) The term ‘‘Advisory Committee’’ means the
Aeronautical Technical Advisory Committee estab-
lished in section 6.
(2) The term ‘‘Consortium’’ means the Aero-
nautical Technology Consortium referred to in sec-
tion 5.
(3) The term ‘‘Coordinating Committee’’ means
the Aeronautical Technology Coordinating Commit-
tee referred to in section 4(c).
(4) The term ‘‘Director’’ means the Director of
the Office of Science and Technology Policy.
(5) The term ‘‘Federal laboratory’’ has the
meaning given such term in section 4(6) of the Ste-
venson-Wydler Technology Innovation Act of 1980
(15 U.S.C. 3703(6)).
(6) The term ‘‘joint venture’’ has the meaning
given such term in section 28(j)(1) of the National
Institute of Standards and Technology Act (15
U.S.C. 278n(j)(1)).
(7) The term ‘‘large civil aircraft’’ means all
aircraft that are designed for passenger or cargo
transportation and have 100 or more passenger
seats or its equivalent in cargo configuration.
(8) The term ‘‘manufacturing technology’’
means techniques and processes designed to improve
manufacturing quality, productivity, and practices,
including engineering design, quality assurance, con-
current engineering, continuous process production
technology, energy efficiency, waste minimization,
design for recyclability or parts reuse, shop floor
management, inventory management, worker train-
ing, and communications with customers and suppli-
ers, as well as manufacturing equipment and soft-
ware.
(9) The term ‘‘Program’’ means the Aeronauti-
cal Technology Program established pursuant to sec-
tion 4(a).
(10) The term ‘‘Strategy’’ means the National
Aeronautics Strategy developed pursuant to section
4(b)(1).
(11) The term ‘‘United States-owned company’’
means a company or other business entity the ma-
jority ownership or control of which is by United
States citizens.
SEC. 4. AERONAUTICAL TECHNOLOGY PROGRAM.
(a) ESTABLISHMENT.—The President shall establish
an Aeronautical Technology Program which shall—
(1) provide for interagency coordination of Fed-
eral research and development programs relating to
aeronautical technologies and related manufacturing
technologies;
(2) provide a mechanism for private industry
comment and guidance regarding the cost-effective-
ness and commercial practicability of existing and
proposed Federal research and development pro-
grams relating to aeronautical technologies and re-
lated manufacturing technologies;
(3) promote, to the maximum extent prac-
ticable, the transfer and conversion to commercial
applications of aeronautical technologies developed
for national security purposes;
(4) coordinate and expand existing Federal re-
search and development programs relating to sub-
sonic and supersonic aeronautics, with particular
focus on government-industry cooperative programs
to develop large civil aircraft beyond the financial
means of any single company;
(5) assist the United States civil aviation manu-
facturing industry in developing an Aeronautical
Technology Consortium for the purpose of providing
Federal assistance to industry-led joint ventures es-
tablished for research, development, design, and
commercialization of aeronautical technologies and
related manufacturing technologies applicable to
large civil aircraft; and
(6) establish other goals and priorities for Fed-
eral research and development programs relating to
aeronautical technologies and related manufacturing
technologies.
(b) NATIONAL AERONAUTICS STRATEGY.—
(1) 
IN
GENERAL.—The 
President, 
acting
through the Coordinating Committee, shall develop a
National Aeronautics Strategy to implement the
Program. The Strategy shall contain specific rec-
ommendations for a 5-year national effort, to be
submitted to the Congress within 6 months after the
date of enactment of this Act.
(2) CONTENTS
OF
STRATEGY.—The Strategy
shall—
(A) establish the specific goals and prior-
ities for the Program for the fiscal year in
which the Strategy is submitted and the suc-
ceeding 4 fiscal years;
(B) set forth the role of each Federal
agency and department in implementing the
Program;
(C) describe the levels of Federal funding
for each agency and specific research, develop-
ment, and commercialization activities required
to achieve such goals and priorities;
(D) take into account the recommenda-
tions of the Advisory Committee established in
section 6; and
(E) consider and use, as appropriate, re-
ports and studies conducted by Federal agen-
cies and departments, the National Research
Council, or other entities.
(3) FEDERAL AGENCIES AND DEPARTMENTS TO
BE
ADDRESSED.—The Secretary shall address,
where appropriate, the relevant programs and activi-
ties of—
(A) the Department of Defense, particu-
larly the Department of the Air Force, the De-
partment of the Navy, and the Defense Ad-
vanced Research Projects Agency;
(B) the Departments of Commerce, par-
ticularly the National Institute of Standards
and Technology;
(C) the Department of Transportation,
particularly the Federal Aviation Administra-
tion;
(D) the National Aeronautics and Space
Administration;
(E) the National Science Foundation;
(F) the Federal laboratories; and
(G) such other agencies and departments
as the President or the Coordinating Committee
considers appropriate.
(c) COORDINATING COMMITTEE.—
(1) AUTHORITY; COMPOSITION.—The Program
shall be administered by an Aeronautical Technology
Coordinating Committee composed of the following
officials:
(A) The Director, who shall be chair-
person.
(B) The Secretary of Defense.
(C) The Secretary of Commerce.
(D) The Secretary of Transportation.
(E) The Administrator of the National
Aeronautics and Space Administration.
(F) The Director of the National Science
Foundation.
(2) FUNCTIONS.—The Coordinating Committee
shall—
(A) serve as the lead entity responsible for
implementation of the Program;
(B) coordinate all Federal research and de-
velopment programs relating to aeronautical
technologies and related manufacturing tech-
nologies;
(C) consult regularly with and seek rec-
ommendations from the Advisory Committee es-
tablished by section 6;
(D) consult with academic, State, industry,
and other appropriate groups conducting re-
search on and using aeronautical technologies;
and
(E) submit to the Congress an annual re-
port, along with the President’s annual budget
request, describing the implementation of the
Program.
SEC. 5. AERONAUTICAL TECHNOLOGY CONSORTIUM.
(a) IN GENERAL.—Under the Program, the Coordi-
nating Committee shall provide assistance to an Aero-
nautical Technology Consortium, which shall consist of all
eligible firms that—
(1) are engaged in research, development, test-
ing, design, demonstration, or production of aero-
nautical technology applicable to the production of
large civil aircraft;
(2) are selected by the Coordinating Committee,
through the Director, on the basis of the criteria
specified under subsection (e); and
(3) are necessary to enable the Consortium to
achieve its purpose as described under subsection
(c).
(b) ELIGIBLE FIRMS.—For purposes of this section,
the term ‘‘eligible firm’’ means a company or other busi-
ness entity (including a consortium of such companies or
other business entities, as determined by the Secretary of
Commerce) that, as determined by such Secretary—
(1) conducts a significant level of its research,
development, engineering, design, and manufactur-
ing activities in the United States; and
(2) either—
(A) is a United States-owned company; or
(B) is a company incorporated in the
United States and has a parent company which
is incorporated in a country the government of
which—
(i) affords United States-owned com-
panies opportunities, comparable to those
afforded any other company, to participate
in research and development consortia to
which the government of that country pro-
vides funding directly or provides finding
indirectly through international organiza-
tions or agreements; and
(ii) affords adequate and effective pro-
tection for the intellectual property rights
of United States-owned companies.
(c) PURPOSE.—The purpose of the Consortium is to
conduct industry-led joint ventures, including studies, re-
lating to—
(1) manufacturing technologies applicable to
the production of large civil aircraft;
(2) the aeronautical infrastructure, including
next-generation wind tunnels and associated tech-
nology, and test beds for aeronautical systems and
subsystems;
(3) the transfer and conversion of aeronautical
technologies developed for national security purposes
to commercial applications for large civil aircraft;
(4) subsonic aeronautical technologies applica-
ble to the development and production of large civil
aircraft;
(5) supersonic aeronautical technologies appli-
cable to the development and production of large
civil aircraft; and
(6) environmental technologies necessary for
aeronautical competitiveness, including technologies
that limit or reduce noise and air pollution.
(d) ASSISTANCE TO BE PROVIDED.—In providing as-
sistance to the Consortium, the Coordinating Committee,
acting through the Director, shall—
(1) provide financial and other assistance to the
United States civil aviation manufacturing industry
in the formation of the Consortium;
(2) support the Consortium, and such subordi-
nate joint ventures as the Consortium may establish,
by making available equipment, facilities, and per-
sonnel;
(3) aid the Consortium, and such subordinate
joint ventures as the Consortium may establish, by
means of grants, cooperative agreements, contracts,
and provision of organizational and technical advice;
(4) enter into contracts and cooperative agree-
ments in support of the Consortium with independ-
ent research organizations, institutions of higher
education, and agencies of State and local govern-
ments;
(5) involve the Federal laboratories in the Con-
sortium, where appropriate, using among other au-
thorities the cooperative research and development
agreements provided for under section 12 of the
Stevenson-Wydler Technology Innovation Act of
1980 (15 U.S.C. 3710a); and
(6) carry out, in a manner consistent with this
section, such other cooperative research activities
with the Consortium and joint ventures as may be
authorized by law or assigned to the Coordinating
Committee by the President.
(e) SELECTION OF CONSORTIUM PARTICIPANTS.—
The criteria for selection of industry participants in the
Consortium, as referred to in subsection (a)(2), are as
follows:
(1) The extent of present participation of the
eligible firm in Federal research and development
programs relating to aeronautical technologies and
related manufacturing technologies.
(2) The extent of present manufacturing activ-
ity of the eligible firm relating to the development
and production of large civil aircraft, engines, ad-
vanced materials, avionics, and other related compo-
nents.
(3) The extent of present manufacturing activ-
ity of the eligible firm relating to aeronautical tech-
nologies developed for national security purposes
that may have commercial applications for large civil
aircraft.
(4) The technical excellence of the eligible firm.
(5) The extent of financial commitment of the
eligible firm to the Consortium.
(6) Such other criteria that the Director pre-
scribes.
(f) CHARTER; OPERATING PLAN.—The Consortium
shall have—
(1) a charter, agreed to by all industry partici-
pants in the Consortium, that meets requirements
established by the Coordinating Committee; and
(2) an annual operating plan that is developed
in consultation with the Coordinating Committee
and the Advisory Committee established in section 6.
(g) FINANCIAL COMMITMENT OF INDUSTRY PARTICI-
PANTS.—
(1) IN GENERAL.—The Director shall ensure
that, to the maximum extent the Director deter-
mines to be practicable, the total amount of the
funds provided by the Federal Government to the
Consortium does not exceed the total amount pro-
vided by the industry participants in the Consor-
tium.
(2) AUTHORITY TO EXCEED 50 PERCENT FED-
ERAL FUNDING.—Nothing in this subsection shall be
construed to prohibit the Federal Government from
providing greater than 50 percent of the funds for
any individual joint venture, project, or program
where the Director determines such funding to be
consistent with the goals of the Program.
(3) CONSIDERATION
OF
IN-KIND
CONTRIBU-
TIONS.—The Director shall prescribe regulations to
provide for consideration of in-kind contributions by
industry participants in the Consortium and joint
ventures for the purpose of determining the share of
the funds that have been or are being provided by
such participants.
(h) MERIT REVIEW.—No contract or other award for
a research project may be made under this section until
the research project in question has been subject to a
merit review, and, in the opinion of the reviewers ap-
pointed by the Director, has been shown to have scientific
and technical merit.
(i) OVERSIGHT OF CONSORTIUM ACTIVITIES.—The
Coordinating Committee, acting through the Director,
shall take such actions as are necessary and appropriate
to ensure that the Consortium’s activities help to achieve
the purposes of this Act, including—
(1) prescribing regulations for the purposes of
this section;
(2) establishing procedures for the use by the
Coordinating Committee of funds authorized to a
particular Federal agency or department that is par-
ticipating in the Consortium;
(3) establishing procedures regarding financial
reporting and auditing to ensure that contracts and
other awards are used for the purposes specified in
this section and are in accordance with sound ac-
counting practices;
(4) monitoring how technologies developed
through the Consortium are used, and reporting to
the Congress on the extent of any overseas transfer
of those technologies;
(5) assuring that the recommendations of the
Advisory Committee established in section 6 are con-
sidered routinely in carrying out the responsibilities
of the Coordinating Committee under this Act; and
(6) providing for the expeditious and timely
transfer of technology developed and owned by the
Consortium to the participants in the Consortium.
(j) EXPORT OF AERONAUTICAL TECHNOLOGY.—Any
export of materials, equipment, and technology developed
by the Consortium in whole or in part with financial as-
sistance provided under this section shall be subject to the
Export Administration Act of 1979 (50 U.S.C. App. 2401
et seq.) and shall not be subject to the Arms Export
Control Act.
(k) FREEDOM OF INFORMATION ACT.—Section 552
of title 5, United States Code, shall not apply to the fol-
lowing information obtained by the Federal Government
on a confidential basis in connection with the activities of
any industry participant in the Consortium:
(1) Information on the business operation of
any industry participant in the Consortium.
(2) Intellectual property, trade secrets, and
technical data possessed or developed by any indus-
try participant in the Consortium.
(l) INTELLECTUAL PROPERTY.—
(1) DISCLOSURE LIMITATIONS.—Notwithstand-
ing any other provision of law, intellectual property,
trade secrets, and technical data owned and devel-
oped by the Consortium or any industry participant
in the Consortium may not be disclosed by any offi-
cer or employee of the Federal Government except in
accordance with a written agreement between the
owner or developer and the Director.
(2) TITLE TO AND LICENSING OF INVENTIONS
AND
PATENTS.—Title to any invention or patent
arising from assistance provided under this section
shall vest in a company or companies incorporated
in the United States. The Federal Government may
reserve a nonexclusive, nontransferable, irrevocable
paid-up license, to have practiced for or on behalf of
the Federal Government, in connection with any
such invention or patent, but shall not, in the exer-
cise of such license publicly disclose proprietary in-
formation related to the license. Title to any such in-
vention or patent shall not be transferred or passed,
except to any company incorporated in the United
States, until the expiration of the first patent ob-
tained in connection with such invention. For pur-
poses of this paragraph, the term ‘‘invention or pat-
ent’’ means an invention patentable under title 35,
United States Code, or any patent on such an inven-
tion.
(3) LICENSING
TO
COMPANIES.—Nothing in
this subsection shall be construed to prohibit the li-
censing, to any company, of intellectual property
rights arising from assistance provided under this
section.
(m) APPLICATION OF NATIONAL COOPERATIVE RE-
SEARCH ACT.—The National Cooperative Research Act of
1984 (P.L. 98–462; 15 U.S.C. 4301 note) shall apply to
the Consortium in the conduct of the activities of the
Consortium under this Act.
SEC. 6. AERONAUTICAL TECHNOLOGY ADVISORY COMMIT-
TEE.
(a) ESTABLISHMENT.—There is established an Aero-
nautical Technology Advisory Committee (hereafter in this
Act referred to as the ‘‘Advisory Committee’’).
(b) FUNCTIONS.—The Advisory Committee shall ad-
vise the Coordinating Committee and the Consortium
on—
(1) the strategy and other appropriate goals
and priorities for the Program, and how best to
achieve those goals;
(2) the operating plan of the Consortium;
(3) the annual progress of the Program and the
Consortium in meeting the requirements of section
4(a) and, in the first 5 years, the strategy;
(4) organizational and programmatic reforms
which would improve the effectiveness of Federal re-
search and development programs relating to aero-
nautical technologies and related manufacturing
technologies in promoting the competitiveness of the
United States civil aviation manufacturing industry;
(5) mechanisms for private industry comment
and guidance regarding the cost-effectiveness and
commercial practicability of existing and proposed
Federal research and development programs relating
to aeronautical technologies and related manufactur-
ing technologies;
(6) policies and mechanisms to promote the
transfer and conversion to commercial applications
of aeronautical technologies developed for national
security purposes; and
(7) other goals and priorities for Federal re-
search and development programs relating to aero-
nautical technologies and related manufacturing
technologies.
(c) MEMBERSHIP.—The Advisory Committee shall be
composed of 12 members, who shall be appointed by the
President from among individuals who, because of their
experience and accomplishments in the field of aeronautics
and related technological and scientific fields, are excep-
tionally qualified to analyze and recommend policy relating
to aeronautical technology research and development.
(f) QUORUM.—7 members of the Advisory Committee
shall constitute a quorum.
(g) MEETINGS.—The Advisory Committee shall meet
at least quarterly at the call of the chairperson or one-
third of its members, and at the call of the Coordinating
Committee.
(h) COMPENSATION AND EXPENSES.—
(1) NO COMPENSATION FOR MEMBERS.—Each
member of the Advisory Committee shall serve with-
out compensation.
(2) TRAVEL
EXPENSES
AUTHORIZED.—While
away from their homes or regular places of business
in performance of the duties of the Advisory Com-
mittee, members of the Advisory Committee shall be
allowed travel expenses in accordance with sub-
chapter I of chapter 57 of title 5, United States
Code.
(i) FEDERAL ADVISORY COMMITTEE ACT.—Section
14 of the Federal Advisory Committee Act (5 U.S.C.
App.) shall not apply to the Advisory Committee.
SEC. 7. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Office
of Science and Technology Policy, to carry out the provi-
sions of this Act, such sums as may be necessary for the
fiscal years 1994 and 1995.