10 U.S.C. § 2201 — Apportionment of funds: authority for ex-

Page 1742 TITLE 10—ARMED FORCES § 2201 2658, struck out item 2222 ‘‘Annual financial manage- ment improvement plan’’ and added items 2224a and 2228. 2001—Pub. L. 107–107, div. A, title X, § 1009(b)(3)(B), Dec. 28, 2001, 115 Stat. 1209, substituted ‘‘Annual’’ for ‘‘Biennial’’ in item 2222. 2000—Pub. L. 106–398, § 1 [[div. A], title VIII, § 812(a)(2), title X, §§ 1006(a)(2), 1008(a)(2)], Oct. 30, 2000, 114 Stat. 1654, 1654A–214, 1654A–247, 1654A–250, added items 2225, 2226, and 2227. 1999—Pub. L. 106–65, div. A, title X, § 1043(b), Oct. 5, 1999, 113 Stat. 761, added item 2224. 1998—Pub. L. 105–261, div. A, title III, § 331(a)(2), title IX, §§ 906(f)(1), 911(a)(2), title X, § 1008(b), Oct. 17, 1998, 112 Stat. 1968, 2096, 2099, 2117, added item 2212, struck out items 2216a ‘‘Defense Business Operations Fund’’ and 2221 ‘‘Fisher House trust funds’’, and added item 2223. 1997—Pub. L. 105–85, div. A, title X, § 1008(a)(2), Nov. 18, 1997, 111 Stat. 1871, added item 2222. 1996—Pub. L. 104–201, div. A, title X, § 1074(a)(10), Sept. 23, 1996, 110 Stat. 2659, redesignated item 2216 ‘‘Defense Business Operations Fund’’ as 2216a. Pub. L. 104–106, div. A, title III, § 371(a)(2), title IX, §§ 912(a)(2), 914(a)(2), Feb. 10, 1996, 110 Stat. 279, 410, 412, added two items 2216 and item 2221. 1994—Pub. L. 103–355, title II, § 2454(c)(3)(A), title III, § 3061(b), title V, § 5001(a)(2), Oct. 13, 1994, 108 Stat. 3326, 3336, 3350, substituted ‘‘Regulations on procurement, production, warehousing, and supply distribution func- tions’’ for ‘‘Obligation of funds: limitation’’ in item 2202, struck out item 2212 ‘‘Contracted advisory and as- sistance services: accounting procedures’’, and added item 2220. Pub. L. 103–337, div. A, title III, § 373(b), div. B, title XXVIII, § 2804(b)(2), Oct. 5, 1994, 108 Stat. 2736, 3053, sub- stituted ‘‘Reimbursements’’ for ‘‘Availability of reim- bursements’’ in item 2205 and added item 2219. 1993—Pub. L. 103–160, div. A, title XI, § 1106(a)(2), Nov. 30, 1993, 107 Stat. 1750, added item 2215. 1992—Pub. L. 102–484, div. A, title X, § 1024(a)(2), Oct. 23, 1992, 106 Stat. 2488, added item 2218. 1991—Pub. L. 102–190, div. A, title III, § 317(b), Dec. 5, 1991, 105 Stat. 1338, added item 2213. 1990—Pub. L. 101–510, div. A, title XIII, § 1331(2), title XIV, §§ 1482(c)(2), 1484(i)(6), Nov. 5, 1990, 104 Stat. 1673, 1710, 1718, struck out item 2213 ‘‘Cooperative military airlift agreements’’, added item 2214, and struck out items 2215 ‘‘Reports on unobligated balances’’ and 2216 ‘‘Annual report on budgeting for inflation’’. 1988—Pub. L. 100–370, § 1(d)(4), July 19, 1988, 102 Stat. 843, added items 2201, 2212, and 2217. 1986—Pub. L. 99–661, div. A, title XIII, § 1307(a)(2), Nov. 14, 1986, 100 Stat. 3981, added items 2215 and 2216. 1982—Pub. L. 97–252, title XI, § 1125(b), Sept. 8, 1982, 96 Stat. 758, added item 2213. Pub. L. 97–214, § 10(a)(1), July 12, 1982, 96 Stat. 174, struck out item 2212 ‘‘Transmission of annual military construction authorization request’’. 1978—Pub. L. 95–356, title VIII, § 802(a)(2), Sept. 8, 1978, 92 Stat. 585, added item 2212. 1962—Pub. L. 87–651, title II, § 207(b), Sept. 7, 1962, 76 Stat. 523, added items 2203 to 2211. 1958—Pub. L. 85–599, § 3(c), Aug. 6, 1958, 72 Stat. 516, struck out item 2201 ‘‘General functions of Secretary of Defense’’. Statutory Notes and Related Subsidiaries MISSION INTEGRATION MANAGEMENT Pub. L. 114–328, div. A, title VIII, § 855, Dec. 23, 2016, 130 Stat. 2297, directed the Secretary of Defense to es- tablish mission integration management activities for certain mission areas that involve multiple Armed Forces and multiple programs and to submit to the congressional defense committees, at the same time the fiscal year 2018 budget is submitted to Congress, a strategy for mission integration management. STRATEGIC MANAGEMENT PLAN Pub. L. 110–181, div. A, title IX, § 904(d), (e), Jan. 28, 2008, 122 Stat. 275, as amended by Pub. L. 114–92, div. A, title X, § 1079(e), Nov. 25, 2015, 129 Stat. 999, provided that: ‘‘(d) STRATEGIC MANAGEMENT PLAN REQUIRED.— ‘‘(1) REQUIREMENT.—The Secretary of Defense, act- ing through the Chief Management Officer of the De- partment of Defense, shall develop a strategic man- agement plan for the Department of Defense. ‘‘(2) MATTERS COVERED.—Such plan shall include, at a minimum, detailed descriptions of— ‘‘(A) performance goals and measures for improv- ing and evaluating the overall efficiency and effec- tiveness of the business operations of the Depart- ment of Defense and achieving an integrated man- agement system for business support areas within the Department of Defense; ‘‘(B) key initiatives to be undertaken by the De- partment of Defense to achieve the performance goals under subparagraph (A), together with related resource needs; ‘‘(C) procedures to monitor the progress of the Department of Defense in meeting performance goals and measures under subparagraph (A); ‘‘(D) procedures to review and approve plans and budgets for changes in business operations, includ- ing any proposed changes to policies, procedures, processes, and systems, to ensure the compatibility of such plans and budgets with the strategic man- agement plan of the Department of Defense; and ‘‘(E) procedures to oversee the development of, and review and approve, all budget requests for de- fense business systems. ‘‘(e) REPORT.—Not later than 180 days after the date of the enactment of this Act [Jan. 28, 2008], the Sec- retary of Defense shall provide to the Committees on Armed Services of the Senate and the House of Rep- resentatives a report on the implementation of this section and a copy of the strategic management plan required by subsection (d).’’ § 2201. Apportionment of funds: authority for ex- emption; excepted expenses (a) EXEMPTION FROM APPORTIONMENT REQUIRE- MENT.—If the President determines such action to be necessary in the interest of national de- fense, the President may exempt from the provi- sions of section 1512 of title 31 appropriations, funds, and contract authorizations available for military functions of the Department of De- fense. (b) AIRBORNE ALERTS.—Upon a determination by the President that such action is necessary, the Secretary of Defense may provide for the cost of an airborne alert as an excepted expense under section 6301(a) and (b)(1)–(3) of title 41. (c) MEMBERS ON ACTIVE DUTY.—Upon a deter- mination by the President that it is necessary to increase (subject to limits imposed by law) the number of members of the armed forces on active duty beyond the number for which funds are provided in appropriation Acts for the De- partment of Defense, the Secretary of Defense may provide for the cost of such additional members as an excepted expense under section 6301(a) and (b)(1)–(3) of title 41. (d) NOTIFICATION TO CONGRESS.—The Secretary of Defense shall immediately notify Congress of the use of any authority under this section. (Added Pub. L. 100–370, § 1(d)(1)(A), July 19, 1988, 102 Stat. 841; amended Pub. L. 106–65, div. A, title X, § 1032(a)(1), Oct. 5, 1999, 113 Stat. 751; Pub. L. 111–350, § 5(b)(4), Jan. 4, 2011, 124 Stat. 3842.) HISTORICAL AND REVISION NOTES Section is based on Pub. L. 99–190, § 101(b) [title VIII, § 8009], Dec. 19, 1985, 99 Stat. 1185, 1204. 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