10 U.S.C. § 2474 — Centers of Industrial and Technical Excel-

Page 1954 TITLE 10—ARMED FORCES § 2474 (1) With respect to the five-year period cov- ered by the plan, an identification of the major lines of effort, milestones, and specific goals of the Secretary over such period relat- ing to the improvement of depot infrastruc- ture and a description of how such goals sup- port the goals outlined in section 359(b)(1)(B) of the National Defense Authorization Act for Fiscal Year 2020 (Public Law 116–92; 133 Stat. 1324; 10 U.S.C. 2476 note). (2) The estimated costs of necessary depot infrastructure improvements and a description of how such costs would be addressed by the Department of Defense budget request sub- mitted during the same year as the plan and the applicable future-years defense program. (3) Information regarding the plan of the Secretary to initiate such environmental and engineering studies as may be necessary to carry out planned depot infrastructure im- provements. (4) Detailed information regarding how depot infrastructure improvement projects will be paced and sequenced to ensure contin- uous operations. (c) INCORPORATION OF RESULTS-ORIENTED MAN- AGEMENT PRACTICES.—Each plan under sub- section (a) shall incorporate the leading results- oriented management practices identified in the report of the Comptroller General of the United States titled ‘‘Actions Needed to Improve Poor Conditions of Facilities and Equipment that Af- fect Maintenance Timeliness and Efficiency’’ (GAO–19–242), or any successor report, includ- ing— (1) analytically based goals; (2) results-oriented metrics; (3) the identification of required resources, risks, and stakeholders; and (4) regular reporting on progress to decision makers. (Added Pub. L. 117–263, div. A, title III, § 373, Dec. 23, 2022, 136 Stat. 2540.) Editorial Notes CODIFICATION Pub. L. 117–263, § 373, which directed amendment of this chapter by adding this section after section ‘‘2742’’, was executed by adding this section after section 2472 to reflect the probable intent of Congress. PRIOR PROVISIONS A prior section 2473, added Pub. L. 104–201, div. A, title VIII, § 832(a), Sept. 23, 1996, 110 Stat. 2616; amended Pub. L. 105–261, div. A, title VIII, § 809(a)–(d), Oct. 17, 1998, 112 Stat. 2085, 2086; Pub. L. 106–65, div. A, title VIII, § 815(b), Oct. 5, 1999, 113 Stat. 712; Pub. L. 111–84, div. A, title VIII, § 818(a), Oct. 28, 2009, 123 Stat. 2408, re- quired the Secretary of Defense to place conditions on the procurement of property or services in order to pre- serve the small arms production industrial base, prior to repeal by Pub. L. 111–383, div. A, title VIII, § 822(a), Jan. 7, 2011, 124 Stat. 4268. § 2474. Centers of Industrial and Technical Excel- lence: designation; public-private partner- ships (a) DESIGNATION.—(1) The Secretary concerned, or the Secretary of Defense in the case of a De- fense Agency, shall designate each depot-level activity or military arsenal facility of the mili- tary departments and the Defense Agencies (other than facilities approved for closure or major realignment under the Defense Base Clo- sure and Realignment Act of 1990 (part A of title XXIX of Public Law 101–510; 10 U.S.C. 2687 note)) as a Center of Industrial and Technical Excel- lence in the recognized core competencies of the designee. (2) The Secretary of Defense shall establish a policy to encourage the Secretary of each mili- tary department and the head of each Defense Agency to reengineer industrial processes and adopt best-business practices at their Centers of Industrial and Technical Excellence in connec- tion with their core competency requirements, so as to serve as recognized leaders in their core competencies throughout the Department of De- fense and in the national technology and indus- trial base (as defined in section 4801(1) of this title). (3) The Secretary of a military department may conduct a pilot program, consistent with applicable requirements of law, to test any prac- tices referred to in paragraph (2) that the Sec- retary determines could improve the efficiency and effectiveness of operations at Centers of In- dustrial and Technical Excellence, improve the support provided by the Centers for the armed forces user of the services of the Centers, and enhance readiness by reducing the time that it takes to repair equipment. (b) PUBLIC-PRIVATE PARTNERSHIPS.—(1) To achieve one or more objectives set forth in para- graph (2), the Secretary designating a Center of Industrial and Technical Excellence under sub- section (a) may authorize and encourage the head of the Center to enter into public-private cooperative arrangements (in this section re- ferred to as a ‘‘public-private partnership’’) to provide for any of the following: (A) For employees of the Center, private in- dustry, or other entities outside the Depart- ment of Defense to perform (under contract, subcontract, or otherwise) work related to the core competencies of the Center, including any depot-level maintenance and repair work that involves one or more core competencies of the Center. (B) For private industry or other entities outside the Department of Defense to use, for any period of time determined to be consistent with the needs of the Department of Defense, any facilities or equipment of the Center that are not fully utilized for a military depart- ment’s own production or maintenance re- quirements. (2) The objectives for exercising the authority provided in paragraph (1) are as follows: (A) To maximize the utilization of the ca- pacity of a Center of Industrial and Technical Excellence. (B) To reduce or eliminate the cost of owner- ship of a Center by the Department of Defense in such areas of responsibility as operations and maintenance and environmental remedi- ation. (C) To reduce the cost of products of the De- partment of Defense produced or maintained at a Center. (D) To leverage private sector investment in— Page 1955 TITLE 10—ARMED FORCES § 2474 (i) such efforts as plant and equipment re- capitalization for a Center; and (ii) the promotion of the undertaking of commercial business ventures at a Center. (E) To foster cooperation between the armed forces and private industry. (3) If the Secretary concerned, or the Sec- retary of Defense in the case of a Defense Agen- cy, authorizes the use of public-private partner- ships under this subsection, the Secretary shall submit to Congress a report evaluating the need for loan guarantee authority, similar to the ARMS Initiative loan guarantee program under section 7555 of this title, to facilitate the estab- lishment of public-private partnerships and the achievement of the objectives set forth in para- graph (2). (c) PRIVATE SECTOR USE OF EXCESS CAPAC- ITY.—Any facilities or equipment of a Center of Industrial and Technical Excellence made avail- able to private industry may be used to perform maintenance or to produce goods in order to make more efficient and economical use of Gov- ernment-owned industrial plants and encourage the creation and preservation of jobs to ensure the availability of a workforce with the nec- essary manufacturing and maintenance skills to meet the needs of the armed forces. (d) CREDITING OF AMOUNTS FOR PERFORM- ANCE.—Amounts received by a Center for work performed under a public-private partnership shall be credited to the appropriation or fund, including a working-capital fund, that incurs the cost of performing the work. Consideration in the form of rental payments or (notwith- standing section 3302(b) of title 31) in other forms may be accepted for a use of property ac- countable under a contract performed pursuant to this section. Notwithstanding section 2667(e) of this title, revenues generated pursuant to this section shall be available for facility operations, maintenance, and environmental restoration at the Center where the leased property is located. (e) AVAILABILITY OF EXCESS EQUIPMENT TO PRI- VATE-SECTOR PARTNERS.—Equipment or facili- ties of a Center of Industrial and Technical Ex- cellence may be made available for use by a pri- vate-sector entity under this section only if— (1) the use of the equipment or facilities will not have a significant adverse effect on the readiness of the armed forces, as determined by the Secretary concerned or, in the case of a Center in a Defense Agency, by the Sec- retary of Defense; and (2) the private-sector entity agrees— (A) to reimburse the Department of De- fense for the direct and indirect costs (in- cluding any rental costs) that are attrib- utable to the entity’s use of the equipment or facilities, as determined by that Sec- retary; and (B) to hold harmless and indemnify the United States from— (i) any claim for damages or injury to any person or property arising out of the use of the equipment or facilities, except under the circumstances described in sec- tion 2563(c)(3) of this title; and (ii) any liability or claim for damages or injury to any person or property arising out of a decision by the Secretary con- cerned or the Secretary of Defense to sus- pend or terminate that use of equipment or facilities during a war or national emer- gency. (f) EXCLUSION OF CERTAIN EXPENDITURES FROM PERCENTAGE LIMITATION.—Amounts expended for the performance of a depot-level maintenance and repair workload by non-Federal Government personnel at a Center of Industrial and Tech- nical Excellence under any contract shall not be counted for purposes of applying the percentage limitation in section 2466(a) of this title if the personnel are provided by private industry or other entities outside the Department of De- fense pursuant to a public-private partnership. (g) CONSTRUCTION OF PROVISION.—Nothing in this section may be construed to authorize a change, otherwise prohibited by law, from the performance of work at a Center of Industrial and Technical Excellence by Department of De- fense personnel to performance by a contractor. (Added Pub. L. 105–85, div. A, title III, § 361(a)(1), Nov. 18, 1997, 111 Stat. 1700; amended Pub. L. 106–398, § 1 [[div. A], title III, § 341(a)–(e)], Oct. 30, 2000, 114 Stat. 1654, 1654A–61 to 1654A–63; Pub. L. 107–107, div. A, title III, §§ 342, 343(b), Dec. 28, 2001, 115 Stat. 1060, 1061; Pub. L. 107–314, div. A, title III, § 334, Dec. 2, 2002, 116 Stat. 2514; Pub. L. 108–375, div. A, title III, § 323, title X, § 1084(d)(20), Oct. 28, 2004, 118 Stat. 1846, 2062; Pub. L. 109–364, div. A, title III, § 331(a), Oct. 17, 2006, 120 Stat. 2149; Pub. L. 112–81, div. A, title III, § 322, Dec. 31, 2011, 125 Stat. 1362; Pub. L. 112–239, div. A, title X, § 1076(d)(4), Jan. 2, 2013, 126 Stat. 1951; Pub. L. 115–232, div. A, title VIII, § 809(a), Aug. 13, 2018, 132 Stat. 1840; Pub. L. 116–283, div. A, title XVIII, § 1866(d)(2), Jan. 1, 2021, 134 Stat. 4280.) Editorial Notes AMENDMENTS 2021—Subsec. (a)(2). Pub. L. 116–283 substituted ‘‘sec- tion 4801(1)’’ for ‘‘section 2500(1)’’. 2018—Subsec. (b)(3). Pub. L. 115–232 substituted ‘‘sec- tion 7555’’ for ‘‘section 4555’’. 2013—Subsec. (d). Pub. L. 112–239 substituted ‘‘section 2667(e)’’ for ‘‘section 2667(d)’’. 2011—Subsec. (a)(1). Pub. L. 112–81 inserted ‘‘or mili- tary arsenal facility’’ after ‘‘depot-level activity’’. 2006—Subsec. (f). Pub. L. 109–364 struck out ‘‘(1)’’ be- fore ‘‘Amounts’’, ‘‘entered into during fiscal years 2003 through 2009’’ before ‘‘shall not be counted’’, and par. (2) which read as follows: ‘‘All funds covered by para- graph (1) shall be included as a separate item in the re- ports required under paragraphs (1), (2), and (3) of sec- tion 2466(d) of this title.’’ 2004—Subsec. (f)(1). Pub. L. 108–375, § 323, substituted ‘‘through 2009’’ for ‘‘through 2006’’. Subsec. (f)(2). Pub. L. 108–375, § 1084(d)(20), substituted ‘‘section 2466(d)’’ for ‘‘section 2466(e)’’. 2002—Subsec. (f)(1). Pub. L. 107–314, § 334(1), sub- stituted ‘‘Amounts expended for the performance of a depot-level maintenance and repair workload by non- Federal Government personnel at a Center of Industrial and Technical Excellence under any contract entered into during fiscal years 2003 through 2006’’ for ‘‘Amounts expended out of funds described in paragraph (2) for the performance of a depot-level maintenance and repair workload by non-Federal Government per- sonnel at a Center of Industrial and Technical Excel- lence’’. Subsec. (f)(2), (3). Pub. L. 107–314, § 334(2), (3), redesig- nated par. (3) as (2) and struck out former par. (2) which Page 1956 TITLE 10—ARMED FORCES § 2475 read as follows: ‘‘The funds referred to in paragraph (1) are funds available to the military departments and Defense Agencies for depot-level maintenance and re- pair workloads for fiscal years 2002 through 2005.’’ 2001—Subsec. (e)(2)(B)(i). Pub. L. 107–107, § 343(b), sub- stituted ‘‘under the circumstances described in section 2563(c)(3) of this title’’ for ‘‘in a case of willful conduct or gross negligence’’. Subsecs. (f), (g). Pub. L. 107–107, § 342, added subsec. (f) and redesignated former subsec. (f) as (g). 2000—Subsec. (a)(1). Pub. L. 106–398, § 1 [[div. A], title III, § 341(a)(1)], substituted ‘‘The Secretary concerned, or the Secretary of Defense in the case of a Defense Agency,’’ for ‘‘The Secretary of Defense’’ and ‘‘of the designee’’ for ‘‘of the activity’’. Subsec. (a)(2). Pub. L. 106–398, § 1 [[div. A], title III, § 341(a)(2)], inserted ‘‘of Defense’’ after ‘‘The Secretary’’ and substituted ‘‘Centers of Industrial and Technical Excellence’’ for ‘‘depot-level activities’’. Subsec. (a)(3). Pub. L. 106–398, § 1 [[div. A], title III, § 341(a)(3)], substituted ‘‘operations at Centers of Indus- trial and Technical Excellence’’ for ‘‘depot-level oper- ations’’, ‘‘by the Centers’’ for ‘‘by depot-level activi- ties’’, and ‘‘of the Centers’’ for ‘‘of such activities’’. Subsec. (b). Pub. L. 106–398, § 1 [[div. A], title III, § 341(b)], amended heading and text of subsec. (b) gen- erally. Prior to amendment, text read as follows: ‘‘The Secretary of Defense shall enable Centers of Industrial and Technical Excellence to enter into public-private cooperative arrangements for the performance of depot-level maintenance and repair at such Centers and shall encourage the use of such arrangements to maxi- mize the utilization of the capacity at such Centers. A public-private cooperative arrangement under this sub- section shall be known as a ‘public-private partner- ship’.’’ Subsec. (c). Pub. L. 106–398, § 1 [[div. A], title III, § 341(c)(3)], added subsec. (c). Former subsec. (c) redesig- nated (d). Subsec. (d). Pub. L. 106–398, § 1 [[div. A], title III, § 341(d)], inserted at end ‘‘Consideration in the form of rental payments or (notwithstanding section 3302(b) of title 31) in other forms may be accepted for a use of property accountable under a contract performed pur- suant to this section. Notwithstanding section 2667(d) of this title, revenues generated pursuant to this sec- tion shall be available for facility operations, mainte- nance, and environmental restoration at the Center where the leased property is located.’’ Pub. L. 106–398, § 1 [[div. A], title III, § 341(c)(1), (2)], redesignated subsec. (c) as (d) and struck out heading and text of former subsec. (d). Text read as follows: ‘‘The policy required under subsection (a) shall include measures to enable a private sector entity that enters into a partnership arrangement under subsection (b) or leases excess equipment and facilities at a Center of In- dustrial and Technical Excellence pursuant to section 2471 of this title to perform additional work at the Cen- ter, subject to the limitations outlined in subsection (b) of such section, outside of the types of work nor- mally assigned to the Center.’’ Subsecs. (e), (f). Pub. L. 106–398, § 1 [[div. A], title III, § 341(e)], added subsecs. (e) and (f). 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 2018 AMENDMENT Amendment by Pub. L. 115–232 effective Feb. 1, 2019, with provision for the coordination of amendments and special rule for certain redesignations, see section 800 of Pub. L. 115–232, set out as a note preceding section 3001 of this title. REPORTING REQUIREMENT Pub. L. 105–85, div. A, title III, § 361(c), Nov. 18, 1997, 111 Stat. 1701, provided that, not later than Mar. 1, 1999, the Secretary of Defense was to submit to Congress a report on the policies established by the Secretary pur- suant to this section to implement the requirements of this section. § 2475. Consolidation, restructuring, or re- engineering of organizations, functions, or activities: notification requirements (a) STRATEGIC SOURCING PLAN OF ACTION DE- FINED.—In this section, the term ‘‘Strategic Sourcing Plan of Action’’ means a Strategic Sourcing Plan of Action for the Department of Defense (as identified in the Department of De- fense Interim Guidance dated February 29, 2000, or any successor Department of Defense guid- ance or directive) in effect for a fiscal year. (b) NOTIFICATION OF DECISION TO EXECUTE PLAN.—If a decision is made to consolidate, re- structure, or reengineer an organization, func- tion, or activity of the Department of Defense pursuant to a Strategic Sourcing Plan of Action described in subsection (a), and such consolida- tion, restructuring, or reengineering would re- sult in a manpower reduction affecting 50 or more personnel of the Department of Defense (including military and civilian personnel)— (1) the Secretary of Defense shall submit to the Committees on Armed Services of the Sen- ate and the House of Representatives a report describing that decision, including— (A) a projection of the savings that will be realized as a result of the consolidation, re- structuring, or reengineering, compared with the cost incurred by the Department of Defense to perform the function or to oper- ate the organization or activity prior to such proposed consolidation, restructuring, or reengineering; (B) a description of all missions, duties, or military requirements that will be affected as a result of the decision to consolidate, re- structure, or reengineer the organization, function, or activity that was analyzed; (C) the Secretary’s certification that the consolidation, restructuring, or re- engineering will not result in any diminu- tion of military readiness; (D) a schedule for performing the consoli- dation, restructuring, or reengineering; and (E) the Secretary’s certification that the entire analysis for the consolidation, re- structuring, or reengineering is available for examination; and (2) the head of the Defense Agency or the Secretary of the military department con- cerned may not implement the plan until 30 days after the date that the agency head or Secretary submits notification to the Commit- tees on Armed Services of the Senate and House of Representatives of the intent to carry out such plan. (Added Pub. L. 106–398, § 1 [[div. A], title III, § 353(a)], Oct. 30, 2000, 114 Stat. 1654, 1654A–72; amended Pub. L. 115–91, div. A, title X, § 1051(a)(17), Dec. 12, 2017, 131 Stat. 1561.)