Browse Arkansas Code titles and sections
10 U.S.C. § 2563 — Articles and services of industrial facilities: sale to persons outside the Department of Defense
Federal law — U.S. Code and appendices · legal_authorities
**(a) Authority To Sell Outside DOD.—**
(1) The Secretary of Defense may sell in accordance with this section to a person outside the Department of Defense articles and services referred to in paragraph (2) that are not available from any United States commercial source.
(2)
(A) Except as provided in subparagraph (B), articles and services referred to in paragraph (1) are articles and services that are manufactured or performed by any working-capital funded industrial facility of the armed forces.
(B) The authority in this section does not apply to sales of articles and services by a working-capital funded Army industrial facility (including a Department of the Army arsenal) that manufactures large caliber cannons, gun mounts, recoil mechanisms, ammunition, munitions, or components thereof, which are governed by regulations required by [section 7543 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section7543&num=0&edition=prelim).
**(b) Designation of Participating Industrial Facilities.—** The Secretary may designate facilities referred to in subsection (a) as the facilities from which articles and services manufactured or performed by such facilities may be sold under this section.
**(c) Conditions for Sales.—**
(1) A sale of articles or services may be made under this section only if—
(A) the Secretary of Defense determines that the articles or services are not available from a commercial source in the United States;
(B) the purchaser agrees to hold harmless and indemnify the United States, except as provided in paragraph (3), from any claim for damages or injury to any person or property arising out of the articles or services;
(C) the articles or services can be substantially manufactured or performed by the i
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 2563
Stored review status: release_metadata_unconfirmed. A text match is a research starting point; applicability is not established.
Original supplied file — preserved unchanged
Download original Markdown file
File SHA-256: b2d7234b116367678d5d0096306a215a8e86e2fb6e37e1b49e3993fb642ffd6e. The original may include catalog metadata, neighboring provisions, or embedded records outside this collection's scope. Search shows only the selected federal record. Historical editions and unverified snapshots are not a statement of current law.
Authority boundary: historical or unconfirmed source not current law verified.
Open the recorded source website ↗
Record provenance
Stable record: federal_law:legal_authorities:record_usc_ed5261def386e5d4b28f2eae
Source file: Laws/federal/codes/united-states-code/title-10/section-2563-articles-and-services-of-industrial-facilities-sale-to-persons-outside-t--62a0fe21cf.md
Pages: Not recorded – Not recorded
Passage SHA-256: 801885493290257d5f971a9256587dca5630c02f631bffe864fb5c9d42380a57
Source location: Title 10, Chapter 152, § 2563; chapter-152-issue-of-supplies-services-and-facilities.md
Stored source content
**(a) Authority To Sell Outside DOD.—**
(1) The Secretary of Defense may sell in accordance with this section to a person outside the Department of Defense articles and services referred to in paragraph (2) that are not available from any United States commercial source.
(2)
(A) Except as provided in subparagraph (B), articles and services referred to in paragraph (1) are articles and services that are manufactured or performed by any working-capital funded industrial facility of the armed forces.
(B) The authority in this section does not apply to sales of articles and services by a working-capital funded Army industrial facility (including a Department of the Army arsenal) that manufactures large caliber cannons, gun mounts, recoil mechanisms, ammunition, munitions, or components thereof, which are governed by regulations required by [section 7543 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section7543&num=0&edition=prelim).
**(b) Designation of Participating Industrial Facilities.—** The Secretary may designate facilities referred to in subsection (a) as the facilities from which articles and services manufactured or performed by such facilities may be sold under this section.
**(c) Conditions for Sales.—**
(1) A sale of articles or services may be made under this section only if—
(A) the Secretary of Defense determines that the articles or services are not available from a commercial source in the United States;
(B) the purchaser agrees to hold harmless and indemnify the United States, except as provided in paragraph (3), from any claim for damages or injury to any person or property arising out of the articles or services;
(C) the articles or services can be substantially manufactured or performed by the industrial facility concerned with only incidental subcontracting;
(D) it is in the public interest to manufacture the articles or perform the services;
(E) the Secretary determines that the sale of the articles or services will not interfere with the military mission of the industrial facility concerned; and
(F) the sale of the goods and services is made on the basis that it will not interfere with performance of work by the industrial facility concerned for the Department of Defense.
(2) The Secretary of Defense may waive the condition in paragraph (1)(A) and subsection (a)(1) that an article or service must be not available from a United States commercial source in the case of a particular sale if the Secretary determines that the waiver is necessary for reasons of national security and notifies Congress regarding the reasons for the waiver.
(3) Paragraph (1)(B) does not apply in any case of willful misconduct or gross negligence or in the case of a claim by a purchaser of articles or services under this section that damages or injury arose from the failure of the Government to comply with quality, schedule, or cost performance requirements in the contract to provide the articles or services.
**(d) Methods of Sale.—**
(1) The Secretary shall permit a purchaser of articles or services under this section to use advance incremental funding to pay for the articles or services.
(2) In the sale of articles and services under this section, the Secretary shall—
(A) charge the purchaser, at a minimum, the variable costs, capital improvement costs, and equipment depreciation costs that are associated with the articles or services sold;
(B) enter into a firm, fixed-price contract or, if agreed by the purchaser, a cost reimbursement contract for the sale; and
(C) develop and maintain (from sources other than appropriated funds) working capital to be available for paying design costs, planning costs, procurement costs, and other costs associated with the articles or services sold.
**(e) Deposit of Proceeds.—** Proceeds from sales of articles and services under this section shall be credited to the funds, including working capital funds and operation and maintenance funds, incurring the costs of manufacture or performance.
**(f) Relationship to Arms Export Control Act.—** Nothing in this section shall be construed to affect the application of the export controls provided for in section 38 of the Arms Export Control Act ([22 U.S.C. 2778](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2778&num=0&edition=prelim)) to items which incorporate or are produced through the use of an article sold under this section.
**(g) Definitions.—** In this section:
(1) The term “advance incremental funding”, with respect to a sale of articles or services, means a series of partial payments for the articles or services that includes—
(A) one or more partial payments before the commencement of work or the incurring of costs in connection with the manufacture of the articles or the performance of the services, as the case may be; and
(B) subsequent progress payments that result in full payment being completed as the required work is being completed.
(2) The term “not available”, with respect to an article or service proposed to be sold under this section, means that the article or service is unavailable from a commercial source in the required quantity and quality or within the time required.
(3) The term “variable costs”, with respect to sales of articles or services, means the costs that are expected to fluctuate directly with the volume of sales and—
(A) in the case of articles, the volume of production necessary to satisfy the sales orders; or
(B) in the case of services, the extent of the services sold.
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Presidential control of exports and imports of defense articles and services, guidance of policy, etc.; designation of United States Munitions List; issuance of export licenses; negotiations information**
(1) In furtherance of world peace and the security and foreign policy of the United States, the President is authorized to control the import and the export of defense articles and defense services and to provide foreign policy guidance to persons of the United States involved in the export and import of such articles and services. The President is authorized to designate those items which shall be considered as defense articles and defense services for the purposes of this section and to promulgate regulations for the import and export of such articles and services. The items so designated shall constitute the United States Munitions List.
(2) Decisions on issuing export licenses under this section shall take into account whether the export of an article would contribute to an arms race, aid in the development of weapons of mass destruction, support international terrorism, increase the possibility of outbreak or escalation of conflict, or prejudice the development of bilateral or multilateral arms control or nonproliferation agreements or other arrangements.
(3) In exercising the authorities conferred by this section, the President may require that any defense article or defense service be sold under this chapter as a condition of its eligibility for export, and may require that persons engaged in the negotiation for the export of defense articles and services keep the President fully and currently informed of the progress and future prospects of such negotiations.
**(b) Registration and licensing requirements for manufacturers, exporters, or importers of d
Source: Supplied U.S. Code snapshot — release unconfirmed · 22 U.S.C. § 2778
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Defense Acquisition System.—** In this part, the term “defense acquisition system” means—
(1) the workforce engaged in carrying out the acquisition of property and services for the Department of Defense;
(2) the management structure responsible for directing and overseeing the acquisition of property and services for the Department of Defense; and
(3) the statutory, regulatory, and policy framework that guides the acquisition of property and services for the Department of Defense.
**(b) Element of the Defense Acquisition System.—** In this part, the term “element of the defense acquisition system” means an organization that—
(1) employs members of the acquisition workforce;
(2) carries out acquisition functions; and
(3) focuses primarily on acquisition.
**(c) Acquisition.—** In this part, the term “acquisition” has the meaning provided in [section 131 of title 41](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section131&num=0&edition=prelim).
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 3001
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Assistance Authorized.—** The Secretary of Defense may, with respect to the ceremonies relating to the inauguration of a President, provide the assistance referred to in subsection (b) to—
(1) the Presidential Inaugural Committee; and
(2) the congressional Joint Inaugural Committee.
**(b) Assistance.—** Assistance that may be provided under subsection (a) is the following:
(1) Planning and carrying out activities relating to security and safety.
(2) Planning and carrying out ceremonial activities.
(3) Loan of property.
(4) Any other assistance that the Secretary considers appropriate.
**(c) Reimbursement.—**
(1) The Presidential Inaugural Committee shall reimburse the Secretary for any costs incurred in connection with the provision to the committee of assistance referred to in subsection (b)(4).
(2) Costs reimbursed under paragraph (1) shall be credited to the appropriations from which the costs were paid. The amount credited to an appropriation shall be proportionate to the amount of the costs charged to that appropriation.
**(d) Loaned Property.—** With respect to property loaned for a presidential inauguration under subsection (b)(3), the Presidential Inaugural Committee shall—
(1) return that property within nine days after the date of the ceremony inaugurating the President;
(2) give good and sufficient bond for the return in good order and condition of that property;
(3) indemnify the United States for any loss of, or damage to, that property; and
(4) defray any expense incurred for the delivery, return, rehabilitation, replacement, or operation of that property.
**(e) Definitions.—** In this section:
(1) The term “Presidential Inaugural Committee” means the committee referred to in [section 501 of title 36](https://uscode.house.gov/view.xh
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 2553
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Authority To Sell Outside DOD.—** Regulations under [section 2208(h) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section2208/h&num=0&edition=prelim) shall authorize a working-capital funded Army industrial facility (including a Department of the Army arsenal) that manufactures large caliber cannons, gun mounts, recoil mechanisms, ammunition, munitions, or components thereof to sell manufactured articles or services to a person outside the Department of Defense if—
(1) in the case of an article, the article is sold to a United States manufacturer, assembler, developer, or other concern—
(A) for use in developing new products;
(B) for incorporation into items to be sold to, or to be used in a contract with, an agency of the United States;
(C) for incorporation into items to be sold to, or to be used in a contract with, or to be used for purposes of soliciting a contract with, a friendly foreign government; or
(D) for use in commercial products;
(2) in the case of an article, the purchaser is determined by the Department of Defense to be qualified to carry out the proposed work involving the article to be purchased;
(3) the sale is to be made on a basis that does not interfere with performance of work by the facility for the Department of Defense or for a contractor of the Department of Defense;
(4) in the case of services, the services are related to an article authorized to be sold under this section and are to be performed in the United States for the purchaser;
(5) the Secretary of the Army determines that the articles or services are not available from a commercial source located in the United States;
(6) the purchaser of an article or service agrees to hold harmless and indemnify the United States, excep
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 7543
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
The conditions set forth in [section 2208(j)(1)(B) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section2208/j/1/B&num=0&edition=prelim) and subsections (a)(1) and (c)(1)(A) of [section 2563 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section2563&num=0&edition=prelim) shall not apply to a sale by a naval shipyard of articles or services to a private shipyard that is made at the request of the private shipyard in order to facilitate the private shipyard’s fulfillment of a Department of Defense contract with respect to a nuclear ship. This section does not authorize a naval shipyard to construct a nuclear ship for the private shipyard, to perform a majority of the work called for in a contract with a private entity, or to provide articles or services not requested by the private shipyard.
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 8670
Stored review status: release_metadata_unconfirmed. Incoming connection: Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
Page 1992
TITLE 10—ARMED FORCES
[§ 2562
‘‘(B) The number of scheduled and completed trans-
portation missions for purposes of providing humani-
tarian assistance under this section.
‘‘(C) A description of any transfer of excess nonlethal
supplies of the Department of Defense made available
for humanitarian relief purposes under section 2557 of
this title. The description shall include the date of the
transfer, the entity to whom the transfer is made, and
the quantity of items transferred.’’
2013—Subsec. (f)(2). Pub. L. 112–239 substituted ‘‘Com-
mittee on Foreign Affairs’’ for ‘‘Committee on Inter-
national Relations’’.
2003—Subsec. (a). Pub. L. 108–136 designated existing
provisions as par. (1) and added par. (2).
2000—Pub. L. 106–398, § 1 [[div. A], title X, § 1033(b)(1)],
renumbered section 2551 of this title as this section.
Subsec. (c)(3)(C). Pub. L. 106–398, § 1 [[div. A], title X,
§ 1033(c)(1)], substituted ‘‘section 2557’’ for ‘‘section
2547’’.
1999—Subsec. (f)(2). Pub. L. 106–65 substituted ‘‘Com-
mittee on Armed Services’’ for ‘‘Committee on Na-
tional Security’’.
1996—Subsec. (b). Pub. L. 104–106, § 1312(1), (2), redesig-
nated subsec. (d) as (b) and struck out former subsec.
(b) which read as follows: ‘‘AUTHORITY TO TRANSFER
FUNDS.—To the extent provided in defense authoriza-
tion Acts for a fiscal year, the Secretary of Defense
may transfer to the Secretary of State funds appro-
priated for the purposes of this section to provide for—
‘‘(1) the payment of administrative costs incurred
in providing the transportation described in sub-
section (a); and
‘‘(2) the purchase or other acquisition of transpor-
tation assets for the distribution of humanitarian re-
lief supplies in the country of destination.’’
Subsec. (c). Pub. L. 104–106, § 131
Source: Supplied 2024 U.S. Code historical extraction · 10 U.S.C. § 2563
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.
Federal law — U.S. Code and appendices · legal_authorities
Page 1241
TITLE 22—FOREIGN RELATIONS AND INTERCOURSE
§ 2778
under section 2763 of this title shall be available
solely for payments to suppliers (including the
military departments) and refunds to purchasers
and shall not be available for financing credits
and guaranties.
(b) Transfer of funds to miscellaneous receipts of
Treasury
Amounts received from foreign governments
and international organizations as repayments
for credits extended pursuant to section 2763 of
this title, amounts received from the disposition
of instruments evidencing indebtedness under
section 2764(b) of this title (excluding such por-
tion of the sales proceeds as may be required at
the time of disposition to be obligated as a re-
serve for payment of claims under guaranties
issued pursuant to section 2764(b) of this title,
which sums are made available for such obliga-
tions), and other collections (including fees and
interest) shall be transferred to the miscella-
neous receipts of the Treasury.
(c) Credit of funds to reserve under section
2764(c)
Notwithstanding the provisions of subsection
(b), to the extent that any of the funds consti-
tuting the reserve under section 2764(c) of this
title are paid out for a claim arising out of a
loan guaranteed under section 2764 of this title,
amounts received from a foreign government or
international organization after the date of such
payment, with respect to such claim, shall be
credited to such reserve, shall be merged with
the funds in such reserve, and shall be available
for any purpose for which funds in such reserve
are available.
(Pub. L. 90–629, ch. 3, § 37, Oct. 22, 1968, 82 Stat.
1326; Pub. L. 93–189, § 25(11), Dec. 17, 1973, 87 Stat.
731; Pub. L. 96–533, title I, §§ 104(b), 105(e)(1), Dec.
16, 1980, 94 Stat.
Source: Supplied 2024 U.S. Code historical extraction · 22 U.S.C. § 2778
Stored review status: historical_2024_not_currentness_verified. The source passage cites 22 U.S.C. § 2778. This identifies an authority to review, not proof of applicability.