10 U.S.C. § 2203 — Budget estimates

Page 1743 TITLE 10—ARMED FORCES § 2203 In two instances, the source law to be codified by the bill includes provisions that on their face require that the Department of Defense notify Congress of certain actions. These notification requirements were termi- nated by section 602 of the Goldwater-Nichols Depart- ment of Defense Reorganization Act of 1986 (Public Law 99–433), which terminated all recurring reporting re- quirements applicable to the Department of Defense ex- cept for those requirements that were specifically ex- empted in that section. The source law sections are sec- tions 8009(c) and 8005(j) (proviso) of the FY86 defense ap- propriations Act (Public Law 99–190), enacted December 19, 1985, which would be codified as section 2201 of title 10 (by section 1(d) of the bill) and section 7313(a) of title 10 (by section 1(n) of the bill). In codifying the authori- ties provided the Department of Defense by these two provisions of law, the committee believes that it is ap- propriate to reinstate the congressional notification re- quirements that go with those authorities. These sec- tions were recurring annual appropriation provisions for many years and were made permanent only months before the enactment of the 1986 Reorganization Act. It is the committee’s belief that the failure to exempt these provisions from the general reports termination provision was inadvertent and notes that the notifica- tion provisions had in fact previously applied to the De- partment of Defense for many years. The action of the committee restores the status quo as it existed before the Reorganization Act. Editorial Notes PRIOR PROVISIONS A prior section 2201, act Aug. 10, 1956, ch. 1041, 70A Stat. 119, prescribed the general functions of the Sec- retary of Defense, prior to repeal by Pub. L. 85–599, § 3(c), Aug. 6, 1958, 72 Stat. 516. See section 113 of this title. AMENDMENTS 2011—Subsec. (b). Pub. L. 111–350, § 5(b)(4)(A), sub- stituted ‘‘section 6301(a) and (b)(1)–(3) of title 41’’ for ‘‘section 3732(a) of the Revised Statutes (41 U.S.C. 11(a))’’. Subsec. (c). Pub. L. 111–350, § 5(b)(4)(B), substituted ‘‘section 6301(a) and (b)(1)–(3) of title 41’’ for ‘‘section 3732(a) of the Revised Statutes (41 U.S.C. 11(a))’’. 1999—Subsec. (d). Pub. L. 106–65 substituted ‘‘De- fense’’ for ‘‘Defense—’’, struck out par. (1) designation, substituted ‘‘this section.’’ for ‘‘this section; and’’, and struck out par. (2) which read as follows: ‘‘shall submit monthly reports to Congress on the estimated obliga- tions incurred pursuant to subsections (b) and (c).’’ § 2202. Regulations on production, warehousing, and supply distribution functions The Secretary of Defense shall prescribe regu- lations governing the performance within the Department of Defense of the production, warehousing, and supply distribution functions, and related functions, of the Department of De- fense. (Aug. 10, 1956, ch. 1041, 70A Stat. 120; Pub. L. 100–180, div. A, title XII, § 1202, Dec. 4, 1987, 101 Stat. 1153; Pub. L. 103–355, title III, § 3061(a), Oct. 13, 1994, 108 Stat. 3336; Pub. L. 116–283, div. A, title XVIII, § 1807(b)(2), Jan. 1, 2021, 134 Stat. 4157.) HISTORICAL AND REVISION NOTES Revised section Source (U.S. Code) Source (Statutes at Large) 2202 ......... 41:162. July 10, 1952, ch. 630, § 638, 66 Stat. 537. The words ‘‘an officer or agency * * * may * * * only’’ are substituted for the words ‘‘no officer or agency * * * shall * * * except’’. The word ‘‘of’’, before the words ‘‘the Department’’, is substituted for the words ‘‘in or under’’. The words ‘‘under regulations pre- scribed’’ are substituted for the words ‘‘in accordance with regulations issued’’. The words ‘‘after the effective date of this section’’ and 41:162(b) are omitted as exe- cuted. The words ‘‘or equipment’’ are omitted as cov- ered by the definition of ‘‘supplies’’ in section 101(26) of this title. Editorial Notes AMENDMENTS 2021—Pub. L. 116–283 struck out ‘‘procurement,’’ be- fore ‘‘production,’’ in section catchline and text. 1994—Pub. L. 103–355 amended heading and text gen- erally. Prior to amendment, text read as follows: ‘‘(a) Notwithstanding any other provision of law, an officer or agency of the Department of Defense may ob- ligate funds for procuring, producing, warehousing, or distributing supplies, or for related functions of supply management, only under regulations prescribed by the Secretary of Defense. The purpose of this section is to achieve the efficient, economical, and practical oper- ation of an integrated supply system to meet the needs of the military departments without duplicate or over- lapping operations or functions. ‘‘(b) Except as otherwise provided by law, the avail- ability for obligation of funds appropriated for any pro- gram, project, or activity of the Department of Defense expires at the end of the three-year period beginning on the date that such funds initially become available for obligation unless before the end of such period the Sec- retary of Defense enters into a contract for such pro- gram, project, or activity.’’ 1987—Pub. L. 100–180 designated existing provisions as subsec. (a) and added subsec. (b). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title. EFFECTIVE DATE OF 1994 AMENDMENT For effective date and applicability of amendment by Pub. L. 103–355, see section 10001 of Pub. L. 103–355, set out as a note under section 8752 of this title. § 2203. Budget estimates To account for, and report, the cost of per- formance of readily identifiable functional pro- grams and activities, with segregation of oper- ating and capital programs, budget estimates of the Department of Defense shall be prepared, presented, and justified, where practicable, and authorized programs shall be administered, in such form and manner as the Secretary of De- fense, subject to the authority and direction of the President, may prescribe. As far as prac- ticable, budget estimates and authorized pro- grams of the military departments shall be uni- form and in readily comparable form. The budg- et for the Department of Defense submitted to Congress for each fiscal year shall include data projecting the effect of the appropriations re- quested for materiel readiness requirements. The Secretary of Defense shall provide that the budget justification documents for such budget include information on the number of employees of contractors estimated to be working on con- tracts of the Department of Defense during the Page 1744 TITLE 10—ARMED FORCES § 2204 fiscal year for which the budget is submitted. Such information shall be set forth in terms of employee-years or such other measure as will be uniform and readily comparable with civilian personnel of the Department of Defense. (Added Pub. L. 87–651, title II, § 207(a), Sept. 7, 1962, 76 Stat. 520; amended Pub. L. 97–295, § 1(21), Oct. 12, 1982, 96 Stat. 1290; Pub. L. 99–661, div. A, title III, § 311, Nov. 14, 1986, 100 Stat. 3851.) HISTORICAL AND REVISION NOTES 1956 ACT Revised section Source (U.S. Code) Source (Statutes at Large) 2203 ......... 5:172b. July 26, 1947, ch. 343, § 403; added Aug. 10, 1949, ch. 412, § 11 (5th and 6th pars.), 63 Stat. 586. The word ‘‘prescribe’’ is substituted for the word ‘‘de- termine’’. 5 U.S.C. 172b(b) is omitted as executed. 1982 ACT Revised section Source (U.S. Code) Source (Statutes at Large) 2203 (last sen- tence). 10:2203 (note). July 30, 1977, Pub. L. 95–79, § 812 (last sen- tence), 91 Stat. 336. The words ‘‘for fiscal year 1979’’ are omitted as exe- cuted. The words ‘‘for each fiscal year’’ are substituted for ‘‘subsequent fiscal years’’ for consistency. Editorial Notes AMENDMENTS 1986—Pub. L. 99–661 inserted provisions that budget justification documents include information on number of employees estimated to be working during the fiscal year, such information to be set forth in terms of em- ployee-years or other measure as is uniform and com- parable with civilian personnel of the Department of Defense. 1982—Pub. L. 97–295 inserted provision requiring that the budget for the Department of Defense submitted annually to Congress include data projecting the effect of the appropriations requested for materiel readiness requirements. Statutory Notes and Related Subsidiaries PRESIDENTIAL RECOMMENDATIONS RESPECTING MODIFICATIONS IN CRUISE MISSILE PROGRAM Pub. L. 95–184, title II, § 203, Nov. 15, 1977, 91 Stat. 1382, provided that in authorizing funds under that Act [Pub. L. 95–184], Congress was asserting its readiness to con- sider, in accordance with the processes set forth in the Congressional Budget and Impoundment Control Act of 1974 [2 U.S.C. 621 et seq.] and the Budget and Account- ing Act, 1921 [31 U.S.C. 1101 et seq.], such modifications in the United States cruise missile programs as the President might recommend to facilitate either nego- tiation or agreement in arms limitation or reduction talks. REPORT TO CONGRESSIONAL COMMITTEES ON MATERIAL READINESS REQUIREMENTS FOR ARMED FORCES Pub. L. 95–79, title VIII, § 812, July 30, 1977, 91 Stat. 336, as amended by Pub. L. 97–295, § 6(b), Oct. 12, 1982, 96 Stat. 1314, directed Secretary of Defense to submit to Congress, not later than February 15, 1978, a report set- ting forth quantifiable and measurable material readi- ness requirements for the Armed Forces, including the Reserve components thereof, monthly readiness status of the Armed Forces, including the reserve components thereof, during fiscal year 1977, and any changes in such requirements and status projected for fiscal years 1978 and 1979 and in the five-year defense program, and to inform Congress of any subsequent changes in the aforementioned materiel readiness requirements and the reasons for such changes. MODIFICATIONS IN UNITED STATES STRATEGIC ARMS PROGRAMS ON RECOMMENDATION OF PRESIDENT Pub. L. 95–79, title VIII, § 813, July 30, 1977, 91 Stat. 337, provided that in authorizing procurement under section 101 of that Act and research and development under section 201 of that Act, Congress was asserting its readiness to consider, in accordance with the proc- esses set forth in the Congressional Budget and Im- poundment Control Act of 1974 [2 U.S.C. 621 et seq.] and the Budget and Accounting Act, 1921 [31 U.S.C. 1101 et seq.], such modifications in United States strategic arms programs as the President might recommend to facilitate either negotiation or agreement in the Stra- tegic Arms Limitation Talks. § 2204. Obligation of appropriations To prevent overdrafts and deficiencies in the fiscal year for which appropriations are made, appropriations made to the Department of De- fense or to a military department, and reim- bursements thereto, are available for obligation and expenditure only under scheduled rates of obligation, or changes thereto, that have been approved by the Secretary of Defense. This sec- tion does not prohibit the Department of De- fense from incurring a deficiency that it has been authorized by law to incur. (Added Pub. L. 87–651, title II, § 207(a), Sept. 7, 1962, 76 Stat. 520.) HISTORICAL AND REVISION NOTES Revised section Source (U.S. Code) Source (Statutes at Large) 2204 ......... 5:172c. July 26, 1947, ch. 343, § 404; added Aug. 10, 1949, ch. 412, § 11 (7th par.), 63 Stat. 587. The words ‘‘on and after the beginning of the next fis- cal year following August 10, 1949,’’ are omitted as exe- cuted. The last sentence is substituted for the proviso in 5 U.S.C. 172c. § 2205. Reimbursements (a) AVAILABILITY OF REIMBURSEMENTS.—Reim- bursements made to appropriations of the De- partment of Defense or a department or agency thereof under sections 1535 and 1536 of title 31, or other amounts paid by or on behalf of a depart- ment or agency of the Department of Defense to another department or agency of the Depart- ment of Defense, or by or on behalf of personnel of any department or organization, for services rendered or supplies furnished, may be credited to authorized accounts. Funds so credited are available for obligation for the same period as the funds in the account so credited. Such an ac- count shall be accounted for as one fund on the books of the Department of the Treasury. (b) FIXED RATE FOR REIMBURSEMENT FOR CER- TAIN SERVICES.—The Secretary of Defense and the Secretaries of the military departments may charge a fixed rate for reimbursement of the costs of providing planning, supervision, admin- istrative, or overhead services incident to any construction, maintenance, or repair project to real property or for providing facility services,