10 U.S.C. § 7553 — Armament Retooling and Manufacturing

Page 3097 TITLE 10—ARMED FORCES § 7553 2006—Par. (2). Pub. L. 109–163, § 323(a), inserted ‘‘, or a Government-owned, contractor-operated depot for the storage, maintenance, renovation, or demilitarization of ammunition,’’ after ‘‘manufacturing facility’’. Statutory Notes and Related Subsidiaries 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. GUIDANCE REGARDING USE OF ORGANIC INDUSTRIAL BASE Pub. L. 115–91, div. A, title III, § 323, Dec. 12, 2017, 131 Stat. 1353, provided that: ‘‘Not later than 90 days after the date of the enactment of this Act [Dec. 12, 2017], the Secretary of the Army shall establish clear and pre- scriptive guidance on the process for conducting make- or-buy analyses for Army requirements, including the use of the organic industrial base.’’ INCLUSION OF CERTAIN INDUSTRIAL PLANTS IN THE AR- MAMENT RETOOLING AND MANUFACTURING SUPPORT INITIATIVE Pub. L. 114–328, div. A, title III, § 323, Dec. 23, 2016, 130 Stat. 2076, as amended by Pub. L. 115–232, div. A, title VIII, § 809(b)(8), Aug. 13, 2018, 132 Stat. 1841, provided that: ‘‘During the five-year period beginning on the date of the enactment of this Act [Dec. 23, 2016], the Secretary of Defense may treat a Government-owned, contractor-operated industrial plant of the Department of Defense as an eligible facility under section 7551(2) of title 10, United States Code.’’ CONSIDERATION OF ARMY ARSENALS’ CAPABILITIES TO FULFILL MANUFACTURING REQUIREMENTS Pub. L. 113–66, div. A, title III, § 323, Dec. 26, 2013, 127 Stat. 733, provided that: ‘‘(a) CONSIDERATION OF CAPABILITY OF ARSENALS.— When undertaking a make-or-buy analysis, a program executive officer or program manager of a military service or Defense Agency shall consider the capability of arsenals owned by the United States to fulfill a man- ufacturing requirement. ‘‘(b) NOTIFICATION OF SOLICITATIONS.—Not later than 180 days after the date of the enactment of this Act [Dec. 26, 2013], the Secretary of Defense shall establish and begin implementation of a system for ensuring that the arsenals owned by the United States are noti- fied of any solicitation that fulfills a manufacturing re- quirement for which there is no or limited domestic commercial source and which may be appropriate for manufacturing within an arsenal owned by the United States.’’ § 7552. Policy It is the policy of the United States— (1) to encourage, to the maximum extent practicable, commercial firms to use Govern- ment-owned, contractor-operated ammunition manufacturing, storage, maintenance, renova- tion, and demilitarization facilities of the De- partment of the Army; (2) to use such facilities for supporting pro- grams, projects, policies, and initiatives that promote competition in the private sector of the United States economy and that advance United States interests in the global market- place; (3) to increase the manufacture of products inside the United States; (4) to support policies and programs that provide manufacturers with incentives to as- sist the United States in making more effi- cient and economical use of eligible facilities for commercial purposes; (5) to provide, as appropriate, small busi- nesses (including socially and economically disadvantaged small business concerns and new small businesses) with incentives that en- courage those businesses to undertake manu- facturing and other industrial processing ac- tivities that contribute to the prosperity of the United States; (6) to encourage the creation of jobs through increased investment in the private sector of the United States economy; (7) to foster a more efficient, cost-effective, and adaptable armaments industry in the United States; (8) to achieve, with respect to armaments manufacturing, storage, maintenance, renova- tion, and demilitarization capacity, an opti- mum level of readiness of the national tech- nology and industrial base within the United States that is consistent with the projected threats to the national security of the United States and the projected emergency require- ments of the armed forces; and (9) to encourage facility use contracting where feasible. (Added Pub. L. 106–398, § 1 [[div. A], title III, § 344(a)(1)], Oct. 30, 2000, 114 Stat. 1654, 1654A–67, § 4552; amended Pub. L. 109–163, div. A, title III, § 323(c), Jan. 6, 2006, 119 Stat. 3194; renumbered § 7552, Pub. L. 115–232, div. A, title VIII, § 808(d), Aug. 13, 2018, 132 Stat. 1839.) Editorial Notes AMENDMENTS 2018—Pub. L. 115–232 renumbered section 4552 of this title as this section. 2006—Pars. (1), (8). Pub. L. 109–163 inserted ‘‘, storage, maintenance, renovation, and demilitarization’’ after ‘‘manufacturing’’. Statutory Notes and Related Subsidiaries 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. § 7553. Armament Retooling and Manufacturing Support Initiative (a) AUTHORITY FOR INITIATIVE.—The Secretary may carry out a program to be known as the ‘‘Armament Retooling and Manufacturing Sup- port Initiative’’. (b) PURPOSES.—The purposes of the ARMS Ini- tiative are as follows: (1) To encourage commercial firms, to the maximum extent practicable, to use eligible facilities for commercial purposes. (2) To increase the opportunities for small businesses (including socially and economi- cally disadvantaged small business concerns and new small businesses) to use eligible fa- cilities for those purposes. (3) To maintain in the United States a work force having the skills necessary to meet in- Page 3098 TITLE 10—ARMED FORCES § 7554 dustrial emergency planned requirements for national security purposes. (4) To demonstrate innovative business prac- tices, to support Department of Defense acqui- sition reform, and to serve as both a model and a laboratory for future defense conversion initiatives of the Department of Defense. (5) To the maximum extent practicable, to allow the operation of eligible facilities to be rapidly responsive to the forces of free market competition. (6) To reduce or eliminate the cost of Gov- ernment ownership of eligible facilities, in- cluding the costs of operations and mainte- nance, the costs of environmental remedi- ation, and other costs. (7) To reduce the cost of products of the De- partment of Defense produced at eligible fa- cilities. (8) To leverage private investment at eligi- ble facilities through long-term facility use contracts, property management contracts, leases, or other agreements that support and advance the policies and purposes of this chap- ter, for the following activities: (A) Recapitalization of plant and equip- ment. (B) Environmental remediation. (C) Promotion of commercial business ven- tures. (D) Other activities approved by the Sec- retary. (9) To foster cooperation between the De- partment of the Army, property managers, commercial interests, and State and local agencies in the implementation of sustainable development strategies and investment in eli- gible facilities made available for purposes of the ARMS Initiative. (10) To reduce or eliminate the cost of asset disposal that would be incurred if property at an eligible facility was declared excess to the needs of the Department of the Army. (c) AVAILABILITY OF FACILITIES.—The Sec- retary may make any eligible facility available for the purposes of the ARMS Initiative. (d) CONSIDERATION FOR LEASES.—Section 1302 of title 40 shall not apply to uses of property or facilities in accordance with the ARMS Initia- tive. (e) PROGRAM SUPPORT.—(1) Funds appropriated for purposes of the ARMS Initiative may be used for administrative support and management. (2) A full annual accounting of such expenses for each fiscal year shall be provided to the Committee on Armed Services and the Com- mittee on Appropriations of the Senate and the Committee on Armed Services and the Com- mittee on Appropriations of the House of Rep- resentatives not later than March 30 of the fol- lowing fiscal year. (Added Pub. L. 106–398, § 1 [[div. A], title III, § 344(a)(1)], Oct. 30, 2000, 114 Stat. 1654, 1654A–68, § 4553; amended Pub. L. 108–178, § 4(b)(5), Dec. 15, 2003, 117 Stat. 2641; Pub. L. 109–163, div. A, title III, § 323(d), Jan. 6, 2006, 119 Stat. 3194; renum- bered § 7553, Pub. L. 115–232, div. A, title VIII, § 808(d), Aug. 13, 2018, 132 Stat. 1839.) Editorial Notes AMENDMENTS 2018—Pub. L. 115–232 renumbered section 4553 of this title as this section. 2006—Subsec. (b)(3). Pub. L. 109–163 struck out ‘‘in manufacturing processes that are’’ after ‘‘having the skills’’. 2003—Subsec. (d). Pub. L. 108–178 substituted ‘‘Section 1302 of title 40’’ for ‘‘Section 321 of the Act of June 30, 1932 (40 U.S.C. 303b),’’. Statutory Notes and Related Subsidiaries 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. EFFECTIVE DATE OF 2003 AMENDMENT Amendment by Pub. L. 108–178 effective Aug. 21, 2002, see section 5 of Pub. L. 108–178, set out as a note under section 5334 of Title 5, Government Organization and Employees. § 7554. Property management contracts and leases (a) IN GENERAL.—In the case of each eligible facility that is made available for the ARMS Initiative, the Secretary— (1) shall make full use of facility use con- tracts, leases, and other such commercial con- tractual instruments as may be appropriate; (2) shall evaluate, on the basis of efficiency, cost, emergency mobilization requirements, and the goals and purposes of the ARMS Ini- tiative, the procurement of services from the property manager, including maintenance, op- eration, modification, infrastructure, environ- mental restoration and remediation, and dis- posal of ammunition manufacturing assets, and other services; and (3) may, in carrying out paragraphs (1) and (2)— (A) enter into contracts, and provide for subcontracts, for terms up to 25 years, as the Secretary considers appropriate and con- sistent with the needs of the Department of the Army and the goals and purposes of the ARMS Initiative; and (B) use procedures that are authorized to be used under section 3204(a)(5) of this title when the contractor or subcontractor is a source specified in law. (b) CONSIDERATION FOR USE.—(1) To the extent provided in a contract entered into under this section for the use of property at an eligible fa- cility that is accountable under the contract, the Secretary may accept consideration for such use that is, in whole or in part, in a form other than— (A) rental payments; or (B) revenue generated at the facility. (2) Forms of consideration acceptable under paragraph (1) for a use of an eligible facility or any property at an eligible facility include the following: (A) The improvement, maintenance, protec- tion, repair, and restoration of the facility, the property, or any property within the