US (United States) Code. Title 10. Subtitle A: General Military Law. Chapter 131: Planning and coordination

Codificación normativa de EEUU (Estados Unidos) Legislación Federal estadounidense # Armed Forces. Service, supply and procurement

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-CITE-

10 USC CHAPTER 131 - PLANNING AND COORDINATION 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

.

-HEAD-

CHAPTER 131 - PLANNING AND COORDINATION

-MISC1-

Sec.

2201. Apportionment of funds: authority for exemption; excepted

expenses.

2202. Regulations on procurement, production, warehousing, and

supply distribution functions.

2203. Budget estimates.

2204. Obligation of appropriations.

2205. Reimbursements.

2206. Disbursement of funds of military department to cover

obligation of another agency of Department of Defense.

2207. Expenditure of appropriations: limitation.

2208. Working-capital funds.

2209. Management funds.

2210. Proceeds of sales of supplies: credit to appropriations.

2211. Reimbursement for equipment, material, or services furnished

members of the United Nations.

2212. Obligations for contract services: reporting in budget object

classes.

2213. Limitation on acquisition of excess supplies.

2214. Transfer of funds: procedure and limitations.

2215. Transfer of funds to other departments and agencies:

limitation.

2216. Defense Modernization Account.

(2216a. Repealed.)

2217. Comparable budgeting for common procurement weapon systems.

2218. National Defense Sealift Fund.

2219. Retention of morale, welfare, and recreation funds by

military installations: limitation.

2220. Performance based management: acquisition programs.

(2221, 2222. Repealed.)

2223. Information technology: additional responsibilities of Chief

Information Officers.

2224. Defense Information Assurance Program.

2224a. Information security: continued applicability of expiring

Governmentwide requirements to the Department of Defense.

2225. Information technology purchases: tracking and management.

2226. Contracted property and services: prompt payment of vouchers.

2227. Electronic submission and processing of claims for contract

payments.

2228. Military equipment and infrastructure: prevention and

mitigation of corrosion.

AMENDMENTS

2002 - Pub. L. 107-314, div. A, title X, Sec. 1004(h)(1),

1052(b)(2), 1067(a)(2), Dec. 2, 2002, 116 Stat. 2631, 2649, 2658,

struck out item 2222 ''Annual financial management improvement

plan'' and added items 2224a and 2228.

2001 - Pub. L. 107-107, div. A, title X, Sec. 1009(b)(3)(B),

Dec. 28, 2001, 115 Stat. 1209, substituted ''Annual'' for

''Biennial'' in item 2222.

2000 - Pub. L. 106-398, Sec. 1 ((div. A), title VIII, Sec.

812(a)(2), title X, Sec. 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, Sec. 1043(b), Oct. 5,

1999, 113 Stat. 761, added item 2224.

1998 - Pub. L. 105-261, div. A, title III, Sec. 331(a)(2), title

IX, Sec. 906(f)(1), 911(a)(2), title X, Sec. 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, Sec. 1008(a)(2), Nov.

18, 1997, 111 Stat. 1871, added item 2222.

1996 - Pub. L. 104-201, div. A, title X, Sec. 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, Sec. 371(a)(2), title IX,

Sec. 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, Sec. 2454(c)(3)(A), title III,

Sec. 3061(b), title V, Sec. 5001(a)(2), Oct. 13, 1994, 108 Stat.

3326, 3336, 3350, substituted ''Regulations on procurement,

production, warehousing, and supply distribution functions'' for

''Obligation of funds: limitation'' in item 2202, struck out item

2212 ''Contracted advisory and assistance services: accounting

procedures'', and added item 2220.

Pub. L. 103-337, div. A, title III, Sec. 373(b), div. B, title

XXVIII, Sec. 2804(b)(2), Oct. 5, 1994, 108 Stat. 2736, 3053,

substituted ''Reimbursements'' for ''Availability of

reimbursements'' in item 2205 and added item 2219.

1993 - Pub. L. 103-160, div. A, title XI, Sec. 1106(a)(2), Nov.

30, 1993, 107 Stat. 1750, added item 2215.

1992 - Pub. L. 102-484, div. A, title X, Sec. 1024(a)(2), Oct.

23, 1992, 106 Stat. 2488, added item 2218.

1991 - Pub. L. 102-190, div. A, title III, Sec. 317(b), Dec. 5,

1991, 105 Stat. 1338, added item 2213.

1990 - Pub. L. 101-510, div. A, title XIII, Sec. 1331(2), title

XIV, Sec. 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, Sec. 1(d)(4), July 19, 1988, 102 Stat.

843, added items 2201, 2212, and 2217.

1986 - Pub. L. 99-661, div. A, title XIII, Sec. 1307(a)(2), Nov.

14, 1986, 100 Stat. 3981, added items 2215 and 2216.

1982 - Pub. L. 97-252, title XI, Sec. 1125(b), Sept. 8, 1982, 96

Stat. 758, added item 2213.

Pub. L. 97-214, Sec. 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, Sec. 802(a)(2), Sept. 8, 1978,

92 Stat. 585, added item 2212.

1962 - Pub. L. 87-651, title II, Sec. 207(b), Sept. 7, 1962, 76

Stat. 523, added items 2203 to 2211.

1958 - Pub. L. 85-599, Sec. 3(c), Aug. 6, 1958, 72 Stat. 516,

struck out item 2201 ''General functions of Secretary of Defense''.

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10 USC Sec. 2201 01/06/03

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TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

Sec. 2201. Apportionment of funds: authority for exemption;

excepted expenses

-STATUTE-

(a) Exemption From Apportionment Requirement. - If the President

determines such action to be necessary in the interest of national

defense, the President may exempt from the provisions of section

1512 of title 31 appropriations, funds, and contract authorizations

available for military functions of the Department of Defense.

(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

3732(a) of the Revised Statutes (41 U.S.C. 11(a)).

(c) Members on Active Duty. - Upon a determination 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 Department of Defense, the Secretary of

Defense may provide for the cost of such additional members as an

excepted expense under section 3732(a) of the Revised Statutes (41

U.S.C. 11(a)).

(d) Notification to Congress. - The Secretary of Defense shall

immediately notify Congress of the use of any authority under this

section.

-SOURCE-

(Added Pub. L. 100-370, Sec. 1(d)(1)(A), July 19, 1988, 102 Stat.

841; amended Pub. L. 106-65, div. A, title X, Sec. 1032(a)(1),

Oct. 5, 1999, 113 Stat. 751.)

-MISC1-

HISTORICAL AND REVISION NOTES

Section is based on Pub. L. 99-190, Sec. 101(b) (title VIII, Sec.

8009), Dec. 19, 1985, 99 Stat. 1185, 1204.

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 terminated by section 602 of the

Goldwater-Nichols Department of Defense Reorganization Act of 1986

(Public Law 99-433), which terminated all recurring reporting

requirements applicable to the Department of Defense except for

those requirements that were specifically exempted in that

section. The source law sections are sections 8009(c) and 8005(j)

(proviso) of the FY86 defense appropriations 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 authorities provided the Department of Defense by these two

provisions of law, the committee believes that it is appropriate to

reinstate the congressional notification requirements that go with

those authorities. These sections 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 notification provisions had in fact

previously applied to the Department of Defense for many years.

The action of the committee restores the status quo as it existed

before the Reorganization Act.

PRIOR PROVISIONS

A prior section 2201, act Aug. 10, 1956, ch. 1041, 70A Stat. 119,

prescribed the general functions of the Secretary of Defense, prior

to repeal by Pub. L. 85-599, Sec. 3(c), Aug. 6, 1958, 72 Stat. 516.

See section 113 of this title.

AMENDMENTS

1999 - Subsec. (d). Pub. L. 106-65 substituted ''Defense'' 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 obligations incurred pursuant to subsections (b) and

(c).''

-CITE-

10 USC Sec. 2202 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

Sec. 2202. Regulations on procurement, production, warehousing, and

supply distribution functions

-STATUTE-

The Secretary of Defense shall prescribe regulations governing

the performance within the Department of Defense of the

procurement, production, warehousing, and supply distribution

functions, and related functions, of the Department of Defense.

-SOURCE-

(Aug. 10, 1956, ch. 1041, 70A Stat. 120; Pub. L. 100-180, div. A,

title XII, Sec. 1202, Dec. 4, 1987, 101 Stat. 1153; Pub. L.

103-355, title III, Sec. 3061(a), Oct. 13, 1994, 108 Stat. 3336.)

-MISC1-

Historical and Revision Notes

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Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

2202 41:162. July 10, 1952, ch.

630, Sec. 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 prescribed'' 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

executed. The words ''or equipment'' are omitted as covered by the

definition of ''supplies'' in section 101(26) of this title.

AMENDMENTS

1994 - Pub. L. 103-355 amended heading and text generally. Prior

to amendment, text read as follows:

''(a) Notwithstanding any other provision of law, an officer or

agency of the Department of Defense may obligate 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 operation of

an integrated supply system to meet the needs of the military

departments without duplicate or overlapping operations or

functions.

''(b) Except as otherwise provided by law, the availability for

obligation of funds appropriated for any program, 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 Secretary of Defense enters into a contract for such

program, project, or activity.''

1987 - Pub. L. 100-180 designated existing provisions as subsec.

(a) and added subsec. (b).

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 251 of Title 41, Public Contracts.

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10 USC Sec. 2203 01/06/03

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TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

Sec. 2203. Budget estimates

-STATUTE-

To account for, and report, the cost of performance of readily

identifiable functional programs and activities, with segregation

of operating 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 Defense, subject to the

authority and direction of the President, may prescribe. As far as

practicable, budget estimates and authorized programs of the

military departments shall be uniform and in readily comparable

form. The budget for the Department of Defense submitted to

Congress for each fiscal year shall include data projecting the

effect of the appropriations requested 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 contracts of the Department of Defense during the 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.

-SOURCE-

(Added Pub. L. 87-651, title II, Sec. 207(a), Sept. 7, 1962, 76

Stat. 520; amended Pub. L. 97-295, Sec. 1(21), Oct. 12, 1982, 96

Stat. 1290; Pub. L. 99-661, div. A, title III, Sec. 311, Nov. 14,

1986, 100 Stat. 3851.)

-MISC1-

Historical and Revision Notes

1956 Act

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

2203 5:172b. July 26, 1947, ch.

343, Sec. 403;

added Aug. 10,

1949, ch. 412, Sec.

11 (5th and 6th

pars.), 63 Stat.

586.

-------------------------------

The word ''prescribe'' is substituted for the word ''determine''.

5 U.S.C. 172b(b) is omitted as executed.

1982 Act

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

2203 (last sentence) 10:2203 (note). July 30, 1977, Pub.

L. 95-79, Sec. 812

(last sentence), 91

Stat. 336.

-------------------------------

The words ''for fiscal year 1979'' are omitted as executed. The

words ''for each fiscal year'' are substituted for ''subsequent

fiscal years'' for consistency.

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 employee-years or other measure as is

uniform and comparable 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.

PRESIDENTIAL RECOMMENDATIONS RESPECTING MODIFICATIONS IN CRUISE

MISSILE PROGRAM

Pub. L. 95-184, title II, Sec. 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 consider, 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 Accounting 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 negotiation 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, Sec. 812, July 30, 1977, 91 Stat. 336,

as amended by Pub. L. 97-295, Sec. 6(b), Oct. 12, 1982, 96 Stat.

1314, directed Secretary of Defense to submit to Congress, not

later than February 15, 1978, a report setting forth quantifiable

and measurable material readiness 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, Sec. 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 processes set forth in the Congressional Budget and

Impoundment 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 Strategic Arms Limitation Talks.

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10 USC Sec. 2204 01/06/03

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TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

Sec. 2204. Obligation of appropriations

-STATUTE-

To prevent overdrafts and deficiencies in the fiscal year for

which appropriations are made, appropriations made to the

Department of Defense or to a military department, and

reimbursements 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

section does not prohibit the Department of Defense from incurring

a deficiency that it has been authorized by law to incur.

-SOURCE-

(Added Pub. L. 87-651, title II, Sec. 207(a), Sept. 7, 1962, 76

Stat. 520.)

-MISC1-

Historical and Revision Notes

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Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

2204 5:172c. July 26, 1947, ch.

343, Sec. 404;

added Aug. 10,

1949, ch. 412, Sec.

11 (7th par.), 63

Stat. 587.

-------------------------------

The words ''on and after the beginning of the next fiscal year

following August 10, 1949,'' are omitted as executed. The last

sentence is substituted for the proviso in 5 U.S.C. 172c.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2384a of this title.

-CITE-

10 USC Sec. 2205 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

Sec. 2205. Reimbursements

-STATUTE-

(a) Availability of Reimbursements. - Reimbursements made to

appropriations of the Department 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 department or agency of the

Department of Defense to another department or agency of the

Department 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 account shall be

accounted for as one fund on the books of the Department of the

Treasury.

(b) Fixed Rate for Reimbursement for Certain 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, administrative, or overhead

services incident to any construction, maintenance, or repair

project to real property or for providing facility services,

irrespective of the appropriation financing the project or facility

services.

-SOURCE-

(Added Pub. L. 87-651, title II, Sec. 207(a), Sept. 7, 1962, 76

Stat. 520; amended Pub. L. 96-513, title V, Sec. 511(71), Dec. 12,

1980, 94 Stat. 2926; Pub. L. 97-258, Sec. 3(b)(4), Sept. 13, 1982,

96 Stat. 1063; Pub. L. 103-337, div. B, title XXVIII, Sec.

2804(a), (b)(1), Oct. 5, 1994, 108 Stat. 3053.)

-MISC1-

Historical and Revision Notes

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Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

2205 5:172g. July 26, 1947, ch.

343, Sec. 408;

added Aug. 10,

1949, ch. 412, Sec.

11 (23d par.), 63

Stat. 590.

-------------------------------

5 U.S.C. 172g is restated to reflect more clearly its purpose to

authorize the Department of Defense to operate as an integrated

department by permitting supplies to be furnished and services to

be rendered within and among agencies of the Department of Defense

and provide that reimbursements therefor be credited to authorized

accounts and be available for the same purpose and period as the

accounts so credited. (See Senate Report No. 366, 81st Congress,

pp. 23, 24.)

AMENDMENTS

1994 - Pub. L. 103-337 substituted ''Reimbursements'' for

''Availability of reimbursements'' as section catchline, designated

existing provisions as subsec. (a) and inserted subsec. heading,

and added subsec. (b).

1982 - Pub. L. 97-258 substituted ''sections 1535 and 1536 of

title 31'' for ''the Act of March 4, 1915 (31 U.S.C. 686)''.

1980 - Pub. L. 96-513 substituted ''the Act of March 4, 1915 (31

U.S.C. 686)'' for ''section 686 of title 31''.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-513 effective Dec. 12, 1980, see section

701(b)(3) of Pub. L. 96-513, set out as a note under section 101 of

this title.

-CITE-

10 USC Sec. 2206 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

Sec. 2206. Disbursement of funds of military department to cover

obligation of another agency of Department of Defense

-STATUTE-

As far as authorized by the Secretary of Defense, a disbursing

official of a military department may, out of available advances,

make disbursements to cover obligations in connection with any

function, power, or duty of another department or agency of the

Department of Defense and charge those disbursements on vouchers,

to the appropriate appropriation of that department or agency.

Disbursements so made shall be adjusted in settling the accounts of

the disbursing official.

-SOURCE-

(Added Pub. L. 87-651, title II, Sec. 207(a), Sept. 7, 1962, 76

Stat. 520; amended Pub. L. 97-258, Sec. 2(b)(1)(A), Sept. 13, 1982,

96 Stat. 1052.)

-MISC1-

Historical and Revision Notes

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Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

2206 5:172h. 5:171n(a) July 26, 1947, ch.

(as applicable to 343, Sec. 409;

5:172h). added Aug. 10,

1949, ch. 412, Sec.

11 (24th par.), 63

Stat. 590.

July 26, 1947, ch.

343, Sec. 308(a)

(as applicable to

Sec. 409), 61 Stat.

509.

-------------------------------

The word ''agency'' is substituted for the word ''organization''.

The last sentence is substituted for the proviso in 5 U.S.C. 172h.

AMENDMENTS

1982 - Pub. L. 97-258 substituted ''official'' for ''officer''

wherever appearing.

-CITE-

10 USC Sec. 2207 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

Sec. 2207. Expenditure of appropriations: limitation

-STATUTE-

(a) Money appropriated to the Department of Defense may not be

spent under a contract other than a contract for personal services

unless that contract provides that -

(1) the United States may, by written notice to the contractor,

terminate the right of the contractor to proceed under the

contract if the Secretary concerned or his designee finds, after

notice and hearing, that the contractor, or his agent or other

representative, offered or gave any gratuity, such as

entertainment or a gift, to an officer, official, or employee of

the United States to obtain a contract or favorable treatment in

the awarding, amending, or making of determinations concerning

the performance, of a contract; and

(2) if a contract is terminated under clause (1), the United

States has the same remedies against the contractor that it would

have had if the contractor had breached the contract and, in

addition to other damages, is entitled to exemplary damages in an

amount at least three, but not more than 10, as determined by the

Secretary or his designee, times the cost incurred by the

contractor in giving gratuities to the officer, official, or

employee concerned.

The existence of facts upon which the Secretary makes findings

under clause (1) may be reviewed by any competent court.

(b) This section does not apply to a contract that is for an

amount not greater than the simplified acquisition threshold (as

defined in section 4(11) of the Office of Federal Procurement

Policy Act (41 U.S.C. 403(11))).

-SOURCE-

(Added Pub. L. 87-651, title II, Sec. 207(a), Sept. 7, 1962, 76

Stat. 520; amended Pub. L. 104-106, div. A, title VIII, Sec. 801,

Feb. 10, 1996, 110 Stat. 389.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

2207 5:174d. June 30, 1954, ch.

432, Sec. 719, 68

Stat. 353.

-------------------------------

The following substitutions are made: ''spent'' for ''expended'';

''United States'' for ''Government''; ''if a contract is terminated

under clause (1)'' for ''that in the event any such contract is so

terminated''; and ''has . . . that it would have had if'' for

''shall be entitled . . . to pursue . . . as it could pursue in the

event of''. The word ''official'' is inserted for clarity. The

words ''entered into after June 30, 1954'' are omitted as executed.

AMENDMENTS

1996 - Pub. L. 104-106 designated existing provisions as subsec.

(a) and added subsec. (b).

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2343 of this title.

-CITE-

10 USC Sec. 2208 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

Sec. 2208. Working-capital funds

-STATUTE-

(a) To control and account more effectively for the cost of

programs and work performed in the Department of Defense, the

Secretary of Defense may require the establishment of

working-capital funds in the Department of Defense to -

(1) finance inventories of such supplies as he may designate;

and

(2) provide working capital for such industrial-type

activities, and such commercial-type activities that provide

common services within or among departments and agencies of the

Department of Defense, as he may designate.

(b) Upon the request of the Secretary of Defense, the Secretary

of the Treasury shall establish working-capital funds established

under this section on the books of the Department of the Treasury.

(c) Working-capital funds shall be charged, when appropriate,

with the cost of -

(1) supplies that are procured or otherwise acquired,

manufactured, repaired, issued, or used; and

(2) services or work performed;

including applicable administrative expenses, and be reimbursed

from available appropriations or otherwise credited for those

costs, including applicable administrative expenses and costs of

using equipment.

(d) The Secretary of Defense may provide capital for

working-capital funds by capitalizing inventories. In addition,

such amounts may be appropriated for the purpose of providing

capital for working-capital funds as have been specifically

authorized by law.

(e) Subject to the authority and direction of the Secretary of

Defense, the Secretary of each military department shall allocate

responsibility for its functions, powers, and duties to accomplish

the most economical and efficient organization and operation of the

activities, and the most economical and efficient use of the

inventories, for which working-capital funds are authorized by this

section.

(f) The requisitioning agency may not incur a cost for supplies

drawn from inventories, or services or work performed by

industrial-type or commercial-type activities for which

working-capital funds may be established under this section, that

is more than the amount of appropriations or other funds available

for those purposes.

(g) The appraised value of supplies returned to working-capital

funds by a department, activity, or agency may be charged to that

fund. The proceeds thereof shall be credited to current applicable

appropriations and are available for expenditure for the same

purposes that those appropriations are so available. Credits may

not be made to appropriations under this subsection as the result

of capitalization of inventories under subsection (d).

(h) The Secretary of Defense shall prescribe regulations

governing the operation of activities and use of inventories

authorized by this section. The regulations may, if the needs of

the Department of Defense require it and it is otherwise authorized

by law, authorize supplies to be sold to, or services to be

rendered or work performed for, persons outside the Department of

Defense. However, supplies available in inventories financed by

working capital funds established under this section may be sold to

contractors for use in performing contracts with the Department of

Defense. Working-capital funds shall be reimbursed for supplies so

sold, services so rendered, or work so performed by charges to

applicable appropriations or payments received in cash.

(i) For provisions relating to sales outside the Department of

Defense of manufactured 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,

see section 4543 of this title.

(j)(1) The Secretary of a military department may authorize a

working capital funded industrial facility of that department to

manufacture or remanufacture articles and sell these articles, as

well as manufacturing, remanufacturing, and engineering services

provided by such facilities, to persons outside the Department of

Defense if -

(A) the person purchasing the article or service is fulfilling

a Department of Defense contract or a subcontract under a

Department of Defense contract, and the solicitation for the

contract or subcontract is open to competition between Department

of Defense activities and private firms; or

(B) the Secretary would advance the objectives set forth in

section 2474(b)(2) of this title by authorizing the facility to

do so.

(2) The Secretary of Defense may waive the conditions in

paragraph (1) 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.

(k)(1) Subject to paragraph (2), a contract for the procurement

of a capital asset financed by a working-capital fund may be

awarded in advance of the availability of funds in the

working-capital fund for the procurement.

(2) Paragraph (1) applies to any of the following capital assets

that have a development or acquisition cost of not less than

$100,000:

(A) An unspecified minor military construction project under

section 2805(c)(1) of this title.

(B) Automatic data processing equipment or software.

(C) Any other equipment.

(D) Any other capital improvement.

(l)(1) An advance billing of a customer of a working-capital fund

may be made if the Secretary of the military department concerned

submits to Congress written notification of the advance billing

within 30 days after the end of the month in which the advanced

billing was made. The notification shall include the following:

(A) The reasons for the advance billing.

(B) An analysis of the effects of the advance billing on

military readiness.

(C) An analysis of the effects of the advance billing on the

customer.

(2) The Secretary of Defense may waive the notification

requirements of paragraph (1) -

(A) during a period of war or national emergency; or

(B) to the extent that the Secretary determines necessary to

support a contingency operation.

(3) The total amount of the advance billings rendered or imposed

for all working-capital funds of the Department of Defense in a

fiscal year may not exceed $1,000,000,000.

(4) In this subsection:

(A) The term ''advance billing'', with respect to a

working-capital fund, means a billing of a customer by the fund,

or a requirement for a customer to reimburse or otherwise credit

the fund, for the cost of goods or services provided (or for

other expenses incurred) on behalf of the customer that is

rendered or imposed before the customer receives the goods or

before the services have been performed.

(B) The term ''customer'' means a requisitioning component or

agency.

(m) Capital Asset Subaccounts. - Amounts charged for depreciation

of capital assets shall be credited to a separate capital asset

subaccount established within a working-capital fund.

(n) Separate Accounting, Reporting, and Auditing of Funds and

Activities. - The Secretary of Defense, with respect to the

working-capital funds of each Defense Agency, and the Secretary of

each military department, with respect to the working-capital funds

of the military department, shall provide for separate accounting,

reporting, and auditing of funds and activities managed through the

working-capital funds.

(o) Charges for Goods and Services Provided Through the Fund. -

(1) Charges for goods and services provided for an activity through

a working-capital fund shall include the following:

(A) Amounts necessary to recover the full costs of the goods

and services provided for that activity.

(B) Amounts for depreciation of capital assets, set in

accordance with generally accepted accounting principles.

(2) Charges for goods and services provided through a

working-capital fund may not include the following:

(A) Amounts necessary to recover the costs of a military

construction project (as defined in section 2801(b) of this

title), other than a minor construction project financed by the

fund pursuant to section 2805(c)(1) of this title.

(B) Amounts necessary to cover costs incurred in connection

with the closure or realignment of a military installation.

(C) Amounts necessary to recover the costs of functions

designated by the Secretary of Defense as mission critical, such

as ammunition handling safety, and amounts for ancillary tasks

not directly related to the mission of the function or activity

managed through the fund.

(p) Procedures For Accumulation of Funds. - The Secretary of

Defense, with respect to each working-capital fund of a Defense

Agency, and the Secretary of a military department, with respect to

each working-capital fund of the military department, shall

establish billing procedures to ensure that the balance in that

working-capital fund does not exceed the amount necessary to

provide for the working-capital requirements of that fund, as

determined by the Secretary.

(q) Annual Reports and Budget. - The Secretary of Defense, with

respect to each working-capital fund of a Defense Agency, and the

Secretary of each military department, with respect to each

working-capital fund of the military department, shall annually

submit to Congress, at the same time that the President submits the

budget under section 1105 of title 31, the following:

(1) A detailed report that contains a statement of all receipts

and disbursements of the fund (including such a statement for

each subaccount of the fund) for the fiscal year ending in the

year preceding the year in which the budget is submitted.

(2) A detailed proposed budget for the operation of the fund

for the fiscal year for which the budget is submitted.

(3) A comparison of the amounts actually expended for the

operation of the fund for the fiscal year referred to in

paragraph (1) with the amount proposed for the operation of the

fund for that fiscal year in the President's budget.

(4) A report on the capital asset subaccount of the fund that

contains the following information:

(A) The opening balance of the subaccount as of the beginning

of the fiscal year in which the report is submitted.

(B) The estimated amounts to be credited to the subaccount in

the fiscal year in which the report is submitted.

(C) The estimated amounts of outlays to be paid out of the

subaccount in the fiscal year in which the report is submitted.

(D) The estimated balance of the subaccount at the end of the

fiscal year in which the report is submitted.

(E) A statement of how much of the estimated balance at the

end of the fiscal year in which the report is submitted will be

needed to pay outlays in the immediately following fiscal year

that are in excess of the amount to be credited to the

subaccount in the immediately following fiscal year.

-SOURCE-

(Added Pub. L. 87-651, title II, Sec. 207(a), Sept. 7, 1962, 76

Stat. 521; amended Pub. L. 97-295, Sec. 1(22), Oct. 12, 1982, 96

Stat. 1290; Pub. L. 98-94, title XII, Sec. 1204(a), Sept. 24, 1983,

97 Stat. 683; Pub. L. 98-525, title III, Sec. 305, Oct. 19, 1984,

98 Stat. 2513; Pub. L. 100-26, Sec. 7(d)(2), Apr. 21, 1987, 101

Stat. 280; Pub. L. 101-510, div. A, title VIII, Sec. 801, title

XIII, Sec. 1301(6), Nov. 5, 1990, 104 Stat. 1588, 1668; Pub. L.

102-172, title VIII, Sec. 8137, Nov. 26, 1991, 105 Stat. 1212; Pub.

L. 102-484, div. A, title III, Sec. 374, Oct. 23, 1992, 106 Stat.

2385; Pub. L. 103-160, div. A, title I, Sec. 158(b), Nov. 30,

1993, 107 Stat. 1582; Pub. L. 105-85, div. A, title X, Sec.

1011(a), (b), Nov. 18, 1997, 111 Stat. 1873; Pub. L. 105-261, div.

A, title X, Sec. 1007(e)(1), 1008(a), Oct. 17, 1998, 112 Stat.

2115; Pub. L. 105-262, title VIII, Sec. 8146(d)(1), Oct. 17, 1998,

112 Stat. 2340; Pub. L. 106-65, div. A, title III, Sec. 331(a)(1),

332, title X, Sec. 1066(a)(16), Oct. 5, 1999, 113 Stat. 566, 567,

771; Pub. L. 106-398, Sec. 1 ((div. A), title III, Sec. 341(f)),

Oct. 30, 2000, 114 Stat. 1654, 1654A-64.)

-MISC1-

Historical and Revision Notes

1956 Act

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

2208(a) 2208(b) 5:172d(a). July 26, 1947, ch.

2208(c) 2208(d) 5:172d(b). 343, Sec. 405;

5:172d(c) (less 2d added Aug. 10,

sentence). 1949, ch. 412, Sec.

5:172d(d). 11 (8th through

15th pars.), 63

Stat. 587.

2208(e) 5:172d(e)

2208(f) 5:172d(f).

2208(g) 5:172d(h).

2208(h) 5:172d(g).

2208(i) 5:172d(c) (2d

sentence).

-------------------------------

In subsection (a)(1), (c)(1), (f), (g), and (h), the words

''stores, . . . materials, and equipment'' are omitted as covered

by the word ''supplies'', as defined in section 101(26) of title

10.

In subsection (c), the word ''used'' is substituted for the word

''consumed''. The words ''and costs of using equipment'' are

inserted to reflect an opinion of the Assistant General Counsel

(Fiscal Matters), Department of Defense, February 2, 1960.

In subsection (d), the first sentence (less 1st 18 words) of 5

U.S.C. 172d(d) is omitted as executed.

In subsection (h), the following substitutions are made:

''prescribe'' for ''issue''; and ''persons'' for ''purchasers or

users''. The word ''shall'' is substituted for the words ''is

authorized to'' in the first sentence and for the word ''may'' in

the last sentence to reflect the opinion of the Assistant General

Counsel (Fiscal Matters), October 2, 1959, that the source law

requires the action in question.

1982 Act

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

2208(h) (3d 10:2208 (note). Dec. 21, 1979, Pub.

sentence) L. 96-154, Sec.

767, 93 Stat. 1163.

-------------------------------

The word ''hereafter'' is omitted as executed.

PRIOR PROVISIONS

Provisions similar to those in subsecs. (m) to (q) of this

section were contained in section 2216a of this title prior to

repeal by Pub. L. 105-261, Sec. 1008(b).

AMENDMENTS

2000 - Subsec. (j)(1). Pub. L. 106-398 substituted ''contract,

and the solicitation'' for ''contract; and'' at end of subpar. (A)

and all that follows through ''(B) the solicitation'', substituted

''; or'' for period after ''private firms'', and added a new

subpar. (B).

1999 - Subsec. (j). Pub. L. 106-65, Sec. 331(a)(1), 332,

designated existing provisions as par. (1), redesignated former

pars. (1) and (2) as subpars. (A) and (B), respectively,

substituted '', remanufacturing, and engineering'' for ''or

remanufacturing'' in introductory provisions, inserted ''or a

subcontract under a Department of Defense contract'' before the

semicolon in subpar. (A), substituted ''solicitation for the

contract or subcontract'' for ''Department of Defense solicitation

for such contract'' in subpar. (B), and added par. (2).

Subsec. (l)(2)(A). Pub. L. 106-65, Sec. 1066(a)(16), inserted

''of'' after ''during a period''.

1998 - Subsec. (l)(3), (4). Pub. L. 105-261, Sec. 1007(e)(1), and

Pub. L. 105-262 amended subsec. (l) identically, adding par. (3)

and redesignating former par. (3) as (4).

Subsecs. (m) to (q). Pub. L. 105-261, Sec. 1008(a), added

subsecs. (m) to (q).

1997 - Subsec. (k). Pub. L. 105-85, Sec. 1011(a), added subsec.

(k) and struck out former subsec. (k) which read as follows: ''The

Secretary of Defense shall provide that of the total amount of

payments received in a fiscal year by funds established under this

section for industrial-type activities, not less than 3 percent

during fiscal year 1985, not less than 4 percent during fiscal year

1986, and not less than 5 percent during fiscal year 1987 shall be

used for the acquisition of capital equipment for such

activities.''

Subsec. (l). Pub. L. 105-85, Sec. 1011(b), added subsec. (l).

1993 - Subsec. (i). Pub. L. 103-160 amended subsec. (i)

generally. Prior to amendment, subsec. (i) required that

regulations under subsec. (h) authorize working-capital funded Army

industrial facilities to sell manufactured articles and services to

persons outside the Department of Defense in specified cases.

1992 - Subsec. (j). Pub. L. 102-484 substituted ''The Secretary

of a military department may authorize a working capital funded

industrial facility of that department'' for ''The Secretary of the

Army may authorize a working capital funded Army industrial

facility''.

1991 - Subsecs. (j), (k). Pub. L. 102-172 added subsec. (j) and

redesignated former subsec. (j) as (k).

1990 - Subsec. (i)(1). Pub. L. 101-510, Sec. 801, added par. (1),

redesignated par. (3) as (2), and struck out former pars. (1) and

(2) which read as follows:

''(1) Regulations under subsection (h) may authorize an article

manufactured by a working-capital funded Department of the Army

arsenal that manufactures large caliber cannons, gun mounts, or

recoil mechanisms to be sold to a person outside the Department of

Defense if -

''(A) the article is sold to a United States manufacturer,

assembler, or developer (i) for use in developing new products,

or (ii) for incorporation into items to be sold to, or to be used

in a contract with, an agency of the United States or a friendly

foreign government;

''(B) the purchaser is determined by the Department of Defense

to be qualified to carry out the proposed work involving the

article to be purchased;

''(C) the article is not readily available from a commercial

source in the United States; and

''(D) the sale is to be made on a basis that does not interfere

with performance of work by the arsenal for the Department of

Defense or for a contractor of the Department of Defense.

''(2) Services related to an article sold under this subsection

may also be sold to the purchaser if the services are to be

performed in the United States for the purchaser.''

Subsec. (k). Pub. L. 101-510, Sec. 1301(6), struck out subsec.

(k) which read as follows: ''Reports annually shall be made to the

President and to Congress on the condition and operation of

working-capital funds established under this section.''

1987 - Subsec. (i)(3). Pub. L. 100-26 inserted ''(22 U.S.C.

2778)'' after ''Arms Export Control Act''.

1984 - Subsecs. (i) to (k). Pub. L. 98-525 added subsecs. (i) and

(j) and redesignated former subsec. (i) as (k).

1983 - Subsec. (d). Pub. L. 98-94 substituted ''In addition, such

amounts may be appropriated for the purpose of providing capital

for working-capital funds as have been specifically authorized by

law'' for ''If this method does not, in the determination of the

Secretary of Defense, provide adequate amounts of working capital,

such amounts as may be necessary may be appropriated for that

purpose''.

1982 - Subsec. (h). Pub. L. 97-295 inserted provision that

supplies available in inventories financed by working capital funds

established under this section may be sold to contractors for use

in performing contracts with the Department of Defense.

EFFECTIVE DATE OF 1998 AMENDMENT

Pub. L. 105-261, div. A, title X, Sec. 1007(e)(2), Oct. 17,

1998, 112 Stat. 2115, and Pub. L. 105-262, title VIII, Sec.

8146(d)(2), Oct. 17, 1998, 112 Stat. 2340, provided that: ''Section

2208(l)(3) of such title, as added by paragraph (1), applies to

fiscal years after fiscal year 1999.''

EFFECTIVE DATE OF 1983 AMENDMENT

Section 1204(b) of Pub. L. 98-94 provided that: ''The amendment

made by subsection (a) (amending this section) shall apply only

with respect to appropriations for fiscal years beginning after

September 30, 1984.''

OVERSIGHT OF DEFENSE BUSINESS OPERATIONS FUND

Pub. L. 103-337, div. A, title III, Sec. 311(b)-(e), Oct. 5,

1994, 108 Stat. 2708, which related to purchase from other sources,

limitation on inclusion of certain costs in DBOF charges,

procedures for accumulation of funds, and annual reports and

budget, was repealed and restated in section 2216a(d)(2)(B), (f) to

(h)(3) of this title by Pub. L. 104-106, div. A, title III, Sec.

371(a)(1), (b)(1), Feb. 10, 1996, 110 Stat. 277-279.

Pub. L. 103-337, div. A, title III, Sec. 311(f), (g), Oct. 5,

1994, 108 Stat. 2709, required Secretary of Defense to submit to

congressional defense committees, not later than Feb. 1, 1995, a

report on progress made in implementing the Defense Business

Operations Fund Improvement Plan, dated September 1993, and

required Comptroller General to monitor and evaluate the Department

of Defense implementation of the Plan and to report to

congressional defense committees not later than Mar. 1, 1995.

CHARGES FOR GOODS AND SERVICES PROVIDED THROUGH DEFENSE BUSINESS

OPERATIONS FUND

Section 333(a), (b) of Pub. L. 103-160, which provided that

charges for goods and services provided through Defense Business

Operations Fund were to include amounts necessary to recover full

costs of development, implementation, operation, and maintenance of

systems supporting wholesale supply and maintenance activities of

Department of Defense and use of military personnel in provision of

goods and services, and were not to include amounts necessary to

recover costs of military construction project other than minor

construction project financed by Defense Business Operations Fund

pursuant to section 2805(c)(1) of this title, and which required

full cost of operation of Defense Finance Accounting Service to be

financed within Defense Business Operations Fund through charges

for goods and services provided through Fund, was repealed and

restated in section 2216a(d)(1)(A), (C), (2)(A) of this title by

Pub. L. 104-106, div. A, title III, Sec. 371(a)(1), (b)(2), Feb.

10, 1996, 110 Stat. 277-279.

CAPITAL ASSET SUBACCOUNT

Section 342 of Pub. L. 102-484, as amended by Pub. L. 103-160,

div. A, title III, Sec. 333(c), Nov. 30, 1993, 107 Stat. 1622,

which provided that charges for goods and services provided through

the Defense Business Operations Fund include amounts for

depreciation of capital assets which were to be credited to a

separate capital asset subaccount in the Fund, authorized Secretary

of Defense to award contracts for capital assets of the Fund in

advance of availability of funds in the subaccount, required

Secretary to submit annual reports to congressional defense

committees, authorized appropriations to the Fund for fiscal years

1993 and 1994, and defined terms, was repealed and restated in

section 2216a(d)(1)(B), (e), (h)(4), and (i) of this title by Pub.

L. 104-106, div. A, title III, Sec. 371(a)(1), (b)(3), Feb. 10,

1996, 110 Stat. 277-279.

LIMITATIONS ON USE OF DEFENSE BUSINESS OPERATIONS FUND

Pub. L. 102-190, div. A, title III, Sec. 316, Dec. 5, 1991, 105

Stat. 1338, as amended by Pub. L. 102-484, div. A, title III, Sec.

341, Oct. 23, 1992, 106 Stat. 2374; Pub. L. 103-160, div. A, title

III, Sec. 331, 332, Nov. 30, 1993, 107 Stat. 1620; Pub. L. 103-337,

div. A, title III, Sec. 311(a), Oct. 5, 1994, 108 Stat. 2708,

which authorized Secretary of Defense to manage performance of

certain working-capital funds established under this section, the

Defense Finance and Accounting Service, the Defense Industrial Plan

Equipment Center, the Defense Commissary Agency, the Defense

Technical Information Service, the Defense Reutilization and

Marketing Service, and certain activities funded through use of

working-capital fund established under this section, directed

Secretary to maintain separate accounting, reporting, and auditing

of such funds and activities, required Secretary to submit to

congressional defense committees, by not later than 30 days after

Nov. 30, 1993, a comprehensive management plan and, by not later

than Feb. 1, 1994, a progress report on plan's implementation, and

directed Comptroller General to monitor and evaluate the plan and

submit to congressional defense committees, not later than Mar. 1,

1994, a report, was repealed and restated in section 2216a(a)-(c)

of this title by Pub. L. 104-106, div. A, title III, Sec.

371(a)(1), (b)(4), Feb. 10, 1996, 110 Stat. 277, 279.

DEFENSE BUSINESS OPERATIONS FUND

Section 8121 of Pub. L. 102-172, which established on the books

of the Treasury a fund entitled the ''Defense Business Operations

Fund'' to be operated as a working capital fund under the

provisions of this section and to include certain existing

organizations including the Defense Finance and Accounting Service,

the Defense Commissary Agency, the Defense Technical Information

Center, the Defense Reutilization and Marketing Service, and the

Defense Industrial Plant Equipment Service, directed transfer of

assets and balances of those organizations to the Fund, provided

for budgeting and accounting of charges for supplies and services

provided by the Fund, and directed that capital asset charges

collected be credited to a subaccount of the Fund, was repealed by

Pub. L. 104-106, div. A, title III, Sec. 371(b)(5), Feb. 10, 1996,

110 Stat. 280.

SALE OF INVENTORIES FOR PERFORMANCE OF CONTRACTS WITH DEFENSE

DEPARTMENT

Pub. L. 96-154, title VII, Sec. 767, Dec. 21, 1979, 93 Stat.

1163, which had provided that supplies available in inventories

financed by working capital funds established pursuant to this

section could, on and after Dec. 21, 1979, be sold to contractors

for use in performing contracts with the Department of Defense, was

repealed and restated in subsec. (h) of this section by Pub. L.

97-295, Sec. 1(22), 6(b), Oct. 12, 1982, 96 Stat. 1290, 1315.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 129, 2210, 2350c, 4543,

4621, 7227, 7300, 7606, 9621 of this title; title 40 section 549.

-CITE-

10 USC Sec. 2209 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

Sec. 2209. Management funds

-STATUTE-

(a) To conduct economically and efficiently the operations of the

Department of Defense that are financed by at least two

appropriations but whose costs cannot be immediately distributed

and charged to those appropriations, there is the Army Management

Fund, the Navy Management Fund, and the Air Force Management Fund,

each within its respective department and under the direction of

the Secretary of that department. Each such fund shall consist of

a corpus of $1,000,000 and such amounts as may be appropriated

thereto from time to time. An account for an operation that is to

be financed by such a fund may be established only with the

approval of the Secretary of Defense.

(b) Under such regulations as the Secretary of Defense may

prescribe, expenditures may be made from a management fund for

material (other than for stock), personal services, and services

under contract. However, obligation may not be incurred against

that fund if it is not chargeable to funds available under an

appropriation of the department concerned or funds of another

department or agency of the Department of Defense. The fund shall

be promptly reimbursed from those funds for expenditures made from

it.

(c) Notwithstanding any other provision of law, advances, by

check or warrant, or reimbursements, may be made from available

appropriations to a management fund on the basis of the estimated

cost of a project. As adequate data becomes available, the

estimated cost shall be revised and necessary adjustments made.

Final adjustment shall be made with the appropriate funds for the

fiscal year in which the advances or reimbursements are made.

Except as otherwise provided by law, amounts advanced to management

funds are available for obligation only during the fiscal year in

which they are advanced.

-SOURCE-

(Added Pub. L. 87-651, title II, Sec. 207(a), Sept. 7, 1962, 76

Stat. 522.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

2209(a) 2209(b) 5:172e(a), (b). July 3, 1942, ch.

2209(c) 5:172e(c) (last 484; restated Aug.

sentence). 10, 1949, ch. 412,

5:172e(c) (less Sec. 11 (16th

last sentence). through 19th

5:172e(d). pars.), 63 Stat.

588.

-------------------------------

In subsection (a), the second sentence is substituted for the

second sentence of 5 U.S.C. 172e(a) and the first sentence (less

last 21 words) of 5 U.S.C. 172e(b) which are omitted as

unnecessary.

In subsection (c), the 13th through 33d words of 5 U.S.C. 172e(d)

are omitted as surplusage.

-CITE-

10 USC Sec. 2210 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

Sec. 2210. Proceeds of sales of supplies: credit to appropriations

-STATUTE-

(a)(1) A working-capital fund established pursuant to section

2208 of this title may retain so much of the proceeds of disposals

of property referred to in paragraph (2) as is necessary to recover

the expenses incurred by the fund in disposing of such property.

Proceeds from the sale or disposal of such property in excess of

amounts necessary to recover the expenses may be credited to

current applicable appropriations of the Department of Defense.

(2) Paragraph (1) applies to disposals of supplies, material,

equipment, and other personal property that were not financed by

stock funds established under section 2208 of this title.

(b) Obligations may, without regard to fiscal year limitations,

be incurred against anticipated reimbursements to stock funds in

such amounts and for such period as the Secretary of Defense, with

the approval of the President, may determine to be necessary to

maintain stock levels consistently with planned operations for the

next fiscal year.

-SOURCE-

(Added Pub. L. 87-651, title II, Sec. 207(a), Sept. 7, 1962, 76

Stat. 522; amended Pub. L. 96-513, title V, Sec. 511(72), Dec. 12,

1980, 94 Stat. 2926; Pub. L. 105-261, div. A, title X, Sec. 1009,

Oct. 17, 1998, 112 Stat. 2117.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

2210(a) 2210(b) 5:172d-1 (less Aug. 1, 1953, ch.

proviso). 5:172d-1 305, Sec. 645, 67

(proviso). Stat. 357.

-------------------------------

In section (a), the words ''proceeds of the disposal'' are

substituted for the words ''moneys arising from the disposition''.

AMENDMENTS

1998 - Subsec. (a). Pub. L. 105-261 amended subsec. (a)

generally. Prior to amendment, subsec. (a) read as follows:

''Current applicable appropriations of the Department of Defense

may be credited with proceeds of the disposals of supplies that are

not financed by stock funds established under section 2208 of this

title.''

1980 - Subsec. (b). Pub. L. 96-513 substituted ''President'' for

''Director of the Bureau of the Budget''.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-513 effective Dec. 12, 1980, see section

701(b)(3) of Pub. L. 96-513, set out as a note under section 101 of

this title.

-CITE-

10 USC Sec. 2211 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

Sec. 2211. Reimbursement for equipment, material, or services

furnished members of the United Nations

-STATUTE-

Amounts paid by members of the United Nations for equipment or

materials furnished, or services performed, in joint military

operations shall be credited to appropriate appropriations of the

Department of Defense in the manner authorized by section 632(d) of

the Foreign Assistance Act of 1961 (22 U.S.C. 2392(d)).

-SOURCE-

(Added Pub. L. 87-651, title II, Sec. 207(a), Sept. 7, 1962, 76

Stat. 522; amended Pub. L. 96-513, title V, Sec. 511(73), Dec. 12,

1980, 94 Stat. 2926.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

2211 5:171m-1. Jan. 6, 1951, ch.

1213, Sec. 703, 64

Stat. 1235.

-------------------------------

The reference to section 2392(d) of title 22 is substituted for

the reference to section 1574(b) of that title to reflect section

542(b) of the Act of August 26, 1954, ch. 937 (68 Stat. 861) and

section 642(a)(2) and (b) of the Act of September 4, 1961, Pub. L.

87-195 (75 Stat. 460).

AMENDMENTS

1980 - Pub. L. 96-513 substituted ''section 632(d) of the Foreign

Assistance Act of 1961 (22 U.S.C. 2392(d))'' for ''section 2392(d)

of title 22''.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-513 effective Dec. 12, 1980, see section

701(b)(3) of Pub. L. 96-513, set out as a note under section 101 of

this title.

-CITE-

10 USC Sec. 2212 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

Sec. 2212. Obligations for contract services: reporting in budget

object classes

-STATUTE-

(a) Limitation on Reporting in Miscellaneous Services Object

Class. - The Secretary of Defense shall ensure that, in reporting

to the Office of Management and Budget (pursuant to OMB Circular

A-11 (relating to preparation and submission of budget estimates))

obligations of the Department of Defense for any period of time for

contract services, no more than 15 percent of the total amount of

obligations so reported is reported in the miscellaneous services

object class.

(b) Definition of Reporting Categories for Advisory and

Assistance Services. - In carrying out section 1105(g) of title 31

for the Department of Defense (and in determining what services are

to be reported to the Office of Management and Budget in the

advisory and assistance services object class), the Secretary of

Defense shall apply to the terms used for the definition of

''advisory and assistance services'' in paragraph (2)(A) of that

section the following meanings (subject to the authorized

exemptions):

(1) Management and professional support services. - The term

''management and professional support services'' (used in clause

(i) of section 1105(g)(2)(A) of title 31) means services that

provide engineering or technical support, assistance, advice, or

training for the efficient and effective management and operation

of organizations, activities, or systems. Those services -

(A) are closely related to the basic responsibilities and

mission of the using organization; and

(B) include efforts that support or contribute to improved

organization or program management, logistics management,

project monitoring and reporting, data collection, budgeting,

accounting, auditing, and administrative or technical support

for conferences and training programs.

(2) Studies, analyses, and evaluations. - The term ''studies,

analyses, and evaluations'' (used in clause (ii) of section

1105(g)(2)(A) of title 31) means services that provide organized,

analytic assessments to understand or evaluate complex issues to

improve policy development, decisionmaking, management, or

administration and that result in documents containing data or

leading to conclusions or recommendations. Those services may

include databases, models, methodologies, and related software

created in support of a study, analysis, or evaluation.

(3) Engineering and technical services. - The term

''engineering and technical services'' (used in clause (iii) of

section 1105(g)(2)(A) of title 31) means services that take the

form of advice, assistance, training, or hands-on training

necessary to maintain and operate fielded weapon systems,

equipment, and components (including software when applicable) at

design or required levels of effectiveness.

(c) Proper Classification of Advisory and Assistance Services. -

Before the submission to the Office of Management and Budget of the

proposed Department of Defense budget for inclusion in the

President's budget for a fiscal year pursuant to section 1105 of

title 31, the Secretary of Defense, acting through the Under

Secretary of Defense (Comptroller), shall conduct a review of

Department of Defense services expected to be performed as contract

services during the fiscal year for which that budget is to be

submitted in order to ensure that those services that are advisory

and assistance services (as defined in accordance with subsection

(b)) are in fact properly classified, in accordance with that

subsection, in the advisory and assistance services object class.

(d) Report to Congress. - The Secretary shall submit to Congress

each year, not later than 30 days after the date on which the

budget for the next fiscal year is submitted pursuant to section

1105 of title 31, a report containing the information derived from

the review under subsection (c).

(e) Assessment by Comptroller General. - (1) The Comptroller

General shall conduct a review of the report of the Secretary of

Defense under subsection (d) each year and shall -

(A) assess the methodology used by the Secretary in obtaining

the information submitted to Congress in that report; and

(B) assess the information submitted to Congress in that

report.

(2) Not later than 120 days after the date on which the Secretary

submits to Congress the report required under subsection (d) for

any year, the Comptroller General shall submit to Congress the

Comptroller General's report containing the results of the review

for that year under paragraph (1).

(f) Definitions. - In this section:

(1) The term ''contract services'' means all services that are

reported to the Office of Management and Budget pursuant to OMB

Circular A-11 (relating to preparation and submission of budget

estimates) in budget object classes that are designated in the

Object Class 25 series.

(2) The term ''advisory and assistance services object class''

means those contract services constituting the budget object

class that is denominated ''Advisory and Assistance Service'' and

designated (as of October 17, 1998) as Object Class 25.1 (or any

similar object class established after October 17, 1998, for the

reporting of obligations for advisory and assistance contract

services).

(3) The term ''miscellaneous services object class'' means

those contract services constituting the budget object class that

is denominated ''Other Services (services not otherwise specified

in the 25 series)'' and designated (as of October 17, 1998) as

Object Class 25.2 (or any similar object class established after

October 17, 1998, for the reporting of obligations for

miscellaneous or unspecified contract services).

(4) The term ''authorized exemptions'' means those exemptions

authorized (as of October 17, 1998) under Department of Defense

Directive 4205.2, captioned ''Acquiring and Managing Contracted

Advisory and Assistance Services (CAAS)'' and issued by the Under

Secretary of Defense for Acquisition and Technology on February

10, 1992, such exemptions being set forth in Enclosure 3 to that

directive (captioned ''CAAS Exemptions'').

-SOURCE-

(Added Pub. L. 105-261, div. A, title IX, Sec. 911(a)(1), Oct. 17,

1998, 112 Stat. 2097; amended Pub. L. 106-65, div. A, title X,

Sec. 1066(a)(17), Oct. 5, 1999, 113 Stat. 771.)

-MISC1-

PRIOR PROVISIONS

A prior section 2212, added Pub. L. 100-370, Sec. 1(d)(2)(A),

July 19, 1988, 102 Stat. 842, directed Secretary of Defense to

maintain within each military department an accounting procedure to

aid in identification and control of expenditures for contracted

advisory and assistance services, prior to repeal by Pub. L.

103-355, title II, Sec. 2454(c)(1), Oct. 13, 1994, 108 Stat. 3326.

Another prior section 2212, added Pub. L. 95-356, title VIII,

Sec. 802(a)(1), Sept. 8, 1978, 92 Stat. 585; amended Pub. L.

97-258, Sec. 3(b)(5), Sept. 18, 1982, 96 Stat. 1063, related to

transmission of annual military construction authorization request,

prior to repeal by Pub. L. 97-214, Sec. 7(1), July 12, 1982, 96

Stat. 173, eff. Oct. 1, 1982, applicable to military construction

projects, and to construction and acquisition of military family

housing authorized before, on, or after such date. See section

2859 of this title.

AMENDMENTS

1999 - Subsec. (f)(2), (3). Pub. L. 106-65 substituted ''as of

October 17, 1998'' for ''as of the date of the enactment of this

section'' and ''after October 17, 1998,'' for ''after the date of

the enactment of this section''.

Subsec. (f)(4). Pub. L. 106-65, Sec. 1066(a)(17)(B), substituted

''as of October 17, 1998'' for ''as of the date of the enactment of

this section''.

-CHANGE-

CHANGE OF NAME

Reference to Under Secretary of Defense for Acquisition and

Technology deemed to refer to Under Secretary of Defense for

Acquisition, Technology, and Logistics, pursuant to section

911(a)(1) of Pub. L. 106-65, set out as a note under section 133 of

this title.

-MISC4-

TRANSITION

Pub. L. 105-261, div. A, title IX, Sec. 911(b), Oct. 17, 1998,

112 Stat. 2099, provided that: ''For the budget for fiscal year

2000, and the reporting of information to the Office of Management

and Budget in connection with the preparation of that budget,

section 2212 of title 10, United States Code, as added by

subsection (a), shall be applied by substituting '30 percent' in

subsection (a) for '15 percent'.''

-CITE-

10 USC Sec. 2213 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

Sec. 2213. Limitation on acquisition of excess supplies

-STATUTE-

(a) Two-Year Supply. - The Secretary of Defense may not incur any

obligation against a stock fund of the Department of Defense for

the acquisition of any item of supply if that acquisition is likely

to result in an on-hand inventory (excluding war reserves) of that

item of supply in excess of two years of operating stocks.

(b) Exceptions. - The head of a procuring activity may authorize

the acquisition of an item of supply in excess of the limitation

contained in subsection (a) if that activity head determines in

writing -

(1) that the acquisition is necessary to achieve an economical

order quantity and will not result in an on-hand inventory

(excluding war reserves) in excess of three years of operating

stocks and that the need for the item is unlikely to decline

during the period for which the acquisition is made; or

(2) that the acquisition is necessary for purposes of

maintaining the industrial base or for other reasons of national

security.

-SOURCE-

(Added Pub. L. 102-190, div. A, title III, Sec. 317(a), Dec. 5,

1991, 105 Stat. 1338.)

-MISC1-

PRIOR PROVISIONS

A prior section 2213 was renumbered section 2350c of this title.

-CITE-

10 USC Sec. 2214 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

Sec. 2214. Transfer of funds: procedure and limitations

-STATUTE-

(a) Procedure for Transfer of Funds. - Whenever authority is

provided in an appropriation Act to transfer amounts in working

capital funds or to transfer amounts provided in appropriation Acts

for military functions of the Department of Defense (other than

military construction) between such funds or appropriations (or any

subdivision thereof), amounts transferred under such authority

shall be merged with and be available for the same purposes and for

the same time period as the fund or appropriations to which

transferred.

(b) Limitations on Programs for Which Authority May Be Used. -

Such authority to transfer amounts -

(1) may not be used except to provide funds for a higher

priority item, based on unforeseen military requirements, than

the items for which the funds were originally appropriated; and

(2) may not be used if the item to which the funds would be

transferred is an item for which Congress has denied funds.

(c) Notice to Congress. - The Secretary of Defense shall promptly

notify the Congress of each transfer made under such authority to

transfer amounts.

(d) Limitations on Requests to Congress for Reprogrammings. -

Neither the Secretary of Defense nor the Secretary of a military

department may prepare or present to the Congress, or to any

committee of either House of the Congress, a request with respect

to a reprogramming of funds -

(1) unless the funds to be transferred are to be used for a

higher priority item, based on unforeseen military requirements,

than the item for which the funds were originally appropriated;

or

(2) if the request would be for authority to reprogram amounts

to an item for which the Congress has denied funds.

-SOURCE-

(Added Pub. L. 101-510, div. A, title XIV, Sec. 1482(c)(1), Nov.

5, 1990, 104 Stat. 1709.)

-MISC1-

EFFECTIVE DATE

Section effective Oct. 1, 1991, see section 1482(d) of Pub. L.

101-510, set out as an Effective Date of 1990 Amendment note under

section 119 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2645, 9514 of this title.

-CITE-

10 USC Sec. 2215 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

Sec. 2215. Transfer of funds to other departments and agencies:

limitation

-STATUTE-

(a) Certification Required. - Funds available for military

functions of the Department of Defense may not be made available to

any other department or agency of the Federal Government pursuant

to a provision of law enacted after November 29, 1989, unless, not

less than 30 days before such funds are made available to such

other department or agency, the Secretary of Defense submits to the

congressional committees specified in subsection (b) a

certification that making those funds available to such other

department or agency is in the national security interest of the

United States.

(b) Congressional Committees. - The committees referred to in

subsection (a) are -

(1) the Committee on Armed Services and the Committee on

Appropriations of the Senate; and

(2) the Committee on Armed Services and the Committee on

Appropriations of the House of Representatives.

-SOURCE-

(Added Pub. L. 103-160, div. A, title XI, Sec. 1106(a)(1), Nov.

30, 1993, 107 Stat. 1750; amended Pub. L. 104-106, div. A, title

XV, Sec. 1502(a)(14), Feb. 10, 1996, 110 Stat. 503; Pub. L. 106-65,

div. A, title X, Sec. 1067(1), Oct. 5, 1999, 113 Stat. 774.)

-MISC1-

PRIOR PROVISIONS

A prior section 2215, added Pub. L. 99-661, div. A, title XIII,

Sec. 1307(a)(1), Nov. 14, 1986, 100 Stat. 3980, related to reports

on unobligated balances, prior to repeal by Pub. L. 101-510, div.

A, title XIII, Sec. 1301(7), Nov. 5, 1990, 104 Stat. 1668.

Provisions similar to those in this section were contained in

Pub. L. 101-189, div. A, title XVI, Sec. 1604, Nov. 29, 1989, 103

Stat. 1598, which was set out as a note under section 1531 of Title

31, Money and Finance, prior to repeal by Pub. L. 103-160, Sec.

1106(b).

AMENDMENTS

1999 - Subsec. (b)(2). Pub. L. 106-65 substituted ''Committee on

Armed Services'' for ''Committee on National Security''.

1996 - Pub. L. 104-106 designated existing provisions as subsec.

(a), inserted heading, substituted ''to the congressional

committees specified in subsection (b)'' for ''to the Committees on

Armed Services and the Committees on Appropriations of the Senate

and House of Representatives'', and added subsec. (b).

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2645, 9514 of this title.

-CITE-

10 USC Sec. 2216 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

Sec. 2216. Defense Modernization Account

-STATUTE-

(a) Establishment. - There is established in the Treasury an

account to be known as the ''Defense Modernization Account''.

(b) Transfers to Account. - (1)(A) Upon a determination by the

Secretary of a military department or the Secretary of Defense with

respect to Defense-wide appropriations accounts of the availability

and source of funds described in subparagraph (B), that Secretary

may transfer to the Defense Modernization Account during any fiscal

year any amount of funds available to the Secretary described in

that subparagraph. Such funds may be transferred to that account

only after the Secretary concerned notifies the congressional

defense committees in writing of the amount and source of the

proposed transfer.

(B) This subsection applies to the following funds available to

the Secretary concerned:

(i) Unexpired funds in appropriations accounts that are

available for procurement and that, as a result of economies,

efficiencies, and other savings achieved in carrying out a

particular procurement, are excess to the requirements of that

procurement.

(ii) Unexpired funds that are available during the final 30

days of a fiscal year for support of installations and facilities

and that, as a result of economies, efficiencies, and other

savings, are excess to the requirements for support of

installations and facilities.

(C) Any transfer under subparagraph (A) shall be made under

regulations prescribed by the Secretary of Defense.

(2) Funds referred to in paragraph (1) may not be transferred to

the Defense Modernization Account if -

(A) the funds are necessary for programs, projects, and

activities that, as determined by the Secretary, have a higher

priority than the purposes for which the funds would be available

if transferred to that account; or

(B) the balance of funds in the account, after transfer of

funds to the account, would exceed $1,000,000,000.

(3) Amounts credited to the Defense Modernization Account shall

remain available for transfer until the end of the third fiscal

year that follows the fiscal year in which the amounts are credited

to the account.

(4) The period of availability of funds for expenditure provided

for in sections 1551 and 1552 of title 31 may not be extended by

transfer into the Defense Modernization Account.

(c) Scope of Use of Funds. - Funds transferred to the Defense

Modernization Account from funds appropriated for a military

department, Defense Agency, or other element of the Department of

Defense shall be available in accordance with subsections (f) and

(g) only for transfer to funds available for that military

department, Defense Agency, or other element.

(d) Authorized Use of Funds. - Funds available from the Defense

Modernization Account pursuant to subsection (f) or (g) may be used

for the following purposes:

(1) For increasing, subject to subsection (e), the quantity of

items and services procured under a procurement program in order

to achieve a more efficient production or delivery rate.

(2) For research, development, test, and evaluation and for

procurement necessary for modernization of an existing system or

of a system being procured under an ongoing procurement program.

(e) Limitations. - (1) Funds in the Defense Modernization Account

may not be used to increase the quantity of an item or services

procured under a particular procurement program to the extent that

doing so would -

(A) result in procurement of a total quantity of items or

services in excess of -

(i) a specific limitation provided by law on the quantity of

the items or services that may be procured; or

(ii) the requirement for the items or services as approved by

the Joint Requirements Oversight Council and reported to

Congress by the Secretary of Defense; or

(B) result in an obligation or expenditure of funds in excess

of a specific limitation provided by law on the amount that may

be obligated or expended, respectively, for that procurement

program.

(2) Funds in the Defense Modernization Account may not be used

for a purpose or program for which Congress has not authorized

appropriations.

(3) Funds may not be transferred from the Defense Modernization

Account in any year for the purpose of -

(A) making an expenditure for which there is no corresponding

obligation; or

(B) making an expenditure that would satisfy an unliquidated or

unrecorded obligation arising in a prior fiscal year.

(f) Transfer of Funds. - (1) The Secretary of Defense may

transfer funds in the Defense Modernization Account to

appropriations available for purposes set forth in subsection (d).

(2) Funds in the Defense Modernization Account may not be

transferred under paragraph (1) until 30 days after the date on

which the Secretary concerned notifies the congressional defense

committees in writing of the amount and purpose of the proposed

transfer.

(3) The total amount of transfers from the Defense Modernization

Account during any fiscal year under this subsection may not exceed

$500,000,000.

(g) Availability of Funds by Appropriation. - In addition to

transfers under subsection (f), funds in the Defense Modernization

Account may be made available for purposes set forth in subsection

(d) in accordance with the provisions of appropriations Acts, but

only to the extent authorized in an Act other than an

appropriations Act.

(h) Secretary To Act Through Comptroller. - The Secretary of

Defense shall carry out this section through the Under Secretary of

Defense (Comptroller), who shall be authorized to implement this

section through the issuance of any necessary regulations,

policies, and procedures after consultation with the General

Counsel and Inspector General of the Department of Defense.

(i) Quarterly Reports. - (1) Not later than 15 days after the end

of each calendar quarter, the Secretary of Defense shall submit to

the congressional committees specified in paragraph (2) a report on

the Defense Modernization Account. Each such report shall set forth

the following:

(A) The amount and source of each credit to the account during

that quarter.

(B) The amount and purpose of each transfer from the account

during that quarter.

(C) The balance in the account at the end of the quarter and,

of such balance, the amount attributable to transfers to the

account from each Secretary concerned.

(2) The committees referred to in paragraph (1) are the

congressional defense committees and the Committee on Governmental

Affairs of the Senate and the Committee on Government Reform and

Oversight of the House of Representatives.

(j) Definitions. - In this section:

(1) The term ''Secretary concerned'' includes the Secretary of

Defense with respect to Defense-wide appropriations accounts.

(2) The term ''unexpired funds'' means funds appropriated for a

definite period that remain available for obligation.

(3) The term ''congressional defense committees'' means -

(A) the Committee on Armed Services and the Committee on

Appropriations of the Senate; and

(B) the Committee on Armed Services and the Committee on

Appropriations of the House of Representatives.

-SOURCE-

(Added Pub. L. 104-106, div. A, title IX, Sec. 912(a)(1), Feb. 10,

1996, 110 Stat. 407; amended Pub. L. 106-65, div. A, title X, Sec.

1067(1), Oct. 5, 1999, 113 Stat. 774.)

-COD-

CODIFICATION

Another section 2216 was renumbered section 2216a of this title

and subsequently repealed.

-MISC3-

PRIOR PROVISIONS

A prior section 2216, added Pub. L. 99-661, div. A, title XIII,

Sec. 1307(a)(1), Nov. 14, 1986, 100 Stat. 3980, related to annual

reports on budgeting for inflation, prior to repeal by Pub. L.

101-510, div. A, title XIII, Sec. 1301(8), Nov. 5, 1990, 104 Stat.

1668.

AMENDMENTS

1999 - Subsec. (j)(3)(B). Pub. L. 106-65 substituted ''Committee

on Armed Services'' for ''Committee on National Security''.

-CHANGE-

CHANGE OF NAME

Committee on Government Reform and Oversight of House of

Representatives changed to Committee on Government Reform of House

of Representatives by House Resolution No. 5, One Hundred Sixth

Congress, Jan. 6, 1999.

-MISC4-

EFFECTIVE DATE

Section 912(b) of Pub. L. 104-106 provided that: ''Section 2216

of title 10, United States Code (as added by subsection (a)), shall

apply only to funds appropriated for fiscal years after fiscal year

1995.''

EXPIRATION OF AUTHORITY AND ACCOUNT

Pub. L. 104-106, div. A, title IX, Sec. 912(c), Feb. 10, 1996,

110 Stat. 410, as amended by Pub. L. 107-314, div. A, title VIII,

Sec. 825(a)(1), Dec. 2, 2002, 116 Stat. 2615, provided that:

''(1) The authority under section 2216(b) of title 10, United

States Code (as added by subsection (a)), to transfer funds into

the Defense Modernization Account terminates at the close of

September 30, 2002.

''(2) Three years after the termination date specified in

paragraph (1), the Defense Modernization Account shall be closed

and any remaining balance in the account shall be canceled and

thereafter shall not be available for any purpose.''

GAO REVIEWS

Pub. L. 104-106, div. A, title IX, Sec. 912(d), Feb. 10, 1996,

110 Stat. 410, required Comptroller General of the United States to

conduct two reviews of the administration of the Defense

Modernization Account, prior to repeal by Pub. L. 107-314, div. A,

title VIII, Sec. 825(a)(2), Dec. 2, 2002, 116 Stat. 2615.

-CITE-

10 USC Sec. 2216a 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

(Sec. 2216a. Repealed. Pub. L. 105-261, div. A, title X, Sec.

1008(b), Oct. 17, 1998, 112 Stat. 2117)

-MISC1-

Section, added Pub. L. 104-106, div. A, title III, Sec.

371(a)(1), Feb. 10, 1996, 110 Stat. 277, Sec. 2216; renumbered Sec.

2216a and amended Pub. L. 104-201, div. A, title III, Sec. 363(c),

364, title X, Sec. 1074(a)(10), Sept. 23, 1996, 110 Stat. 2493,

2494, 2659, related to Defense Business Operations Fund.

-CITE-

10 USC Sec. 2217 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

Sec. 2217. Comparable budgeting for common procurement weapon

systems

-STATUTE-

(a) Matters To Be Included in Annual Defense Budgets. - In

preparing the defense budget for any fiscal year, the Secretary of

Defense shall -

(1) specifically identify each common procurement weapon system

included in the budget;

(2) take all feasible steps to minimize variations in

procurement unit costs for any such system as shown in the budget

requests of the different armed forces requesting procurement

funds for the system; and

(3) identify and justify in the budget all such variations in

procurement unit costs for common procurement weapon systems.

(b) Comptroller. - The Secretary shall carry out this section

through the Under Secretary of Defense (Comptroller).

(c) Definitions. - In this section:

(1) The term ''defense budget'' means the budget of the

Department of Defense included in the President's budget

submitted to Congress under section 1105 of title 31 for a fiscal

year.

(2) The term ''common procurement weapon system'' means a

weapon system for which two or more of the Army, Navy, Air Force,

and Marine Corps request procurement funds in a defense budget.

-SOURCE-

(Added Pub. L. 100-370, Sec. 1(d)(3)(A), July 19, 1988, 102 Stat.

843; amended Pub. L. 104-106, div. A, title XV, Sec. 1503(a)(20),

Feb. 10, 1996, 110 Stat. 512.)

-MISC1-

HISTORICAL AND REVISION NOTES

Section is based on Pub. L. 99-500, Sec. 101(c) (title X, Sec.

955), Oct. 18, 1986, 100 Stat. 1783-82, 1783-173, and Pub. L.

99-591, Sec. 101(c) (title X, Sec. 955), Oct. 30, 1986, 100 Stat.

3341-82, 3341-173; Pub. L. 99-661, div. A, title IX, formerly

title IV, Sec. 955, Nov. 14, 1986, 100 Stat. 3953, renumbered title

IX, Pub. L. 100-26, Sec. 3(5), Apr. 21, 1987, 101 Stat. 273.

AMENDMENTS

1996 - Subsec. (b). Pub. L. 104-106 substituted ''Under Secretary

of Defense (Comptroller)'' for ''Comptroller of the Department of

Defense''.

-CITE-

10 USC Sec. 2218 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

Sec. 2218. National Defense Sealift Fund

-STATUTE-

(a) Establishment. - There is established in the Treasury of the

United States a fund to be known as the ''National Defense Sealift

Fund''.

(b) Administration of Fund. - The Secretary of Defense shall

administer the Fund consistent with the provisions of this section.

(c) Fund Purposes. - (1) Funds in the National Defense Sealift

Fund shall be available for obligation and expenditure only for the

following purposes:

(A) Construction (including design of vessels), purchase,

alteration, and conversion of Department of Defense sealift

vessels.

(B) Operation, maintenance, and lease or charter of Department

of Defense vessels for national defense purposes.

(C) Installation and maintenance of defense features for

national defense purposes on privately owned and operated vessels

that are constructed in the United States and documented under

the laws of the United States.

(D) Research and development relating to national defense

sealift.

(E) Expenses for maintaining the National Defense Reserve Fleet

under section 11 of the Merchant Ship Sales Act of 1946 (50

U.S.C. App. 1744), and for the costs of acquisition of vessels

for, and alteration and conversion of vessels in (or to be placed

in), the fleet, but only for vessels built in United States

shipyards.

(2) Funds in the National Defense Sealift Fund may be obligated

or expended only in amounts authorized by law.

(3) Funds obligated and expended for a purpose set forth in

subparagraph (B) or (D) of paragraph (1) may be derived only from

funds deposited in the National Defense Sealift Fund pursuant to

subsection (d)(1).

(d) Deposits. - There shall be deposited in the Fund the

following:

(1) All funds appropriated to the Department of Defense for -

(A) construction (including design of vessels), purchase,

alteration, and conversion of national defense sealift vessels;

(B) operations, maintenance, and lease or charter of national

defense sealift vessels;

(C) installation and maintenance of defense features for

national defense purposes on privately owned and operated

vessels; and

(D) research and development relating to national defense

sealift.

(2) All receipts from the disposition of national defense

sealift vessels, excluding receipts from the sale, exchange, or

scrapping of National Defense Reserve Fleet vessels under

sections 508 and 510 of the Merchant Marine Act of 1936 (46

U.S.C. App. 1158, 1160), shall be deposited in the Fund.

(3) All receipts from the charter of vessels under section

1424(c) of the National Defense Authorization Act for Fiscal Year

1991 (10 U.S.C. 7291 note).

(e) Acceptance of Support. - (1) The Secretary of Defense may

accept from any person, foreign government, or international

organization any contribution of money, personal property

(excluding vessels), or assistance in kind for support of the

sealift functions of the Department of Defense.

(2) Any contribution of property accepted under paragraph (1) may

be retained and used by the Department of Defense or disposed of in

accordance with procedures prescribed by the Secretary of Defense.

(3) The Secretary of Defense shall deposit in the Fund money and

receipts from the disposition of any property accepted under

paragraph (1).

(f) Limitations. - (1) Not more than a total of five vessels

built in foreign ship yards may be purchased with funds in the

National Defense Sealift Fund pursuant to subsection (c)(1).

(2) Construction, alteration, or conversion of vessels with funds

in the National Defense Sealift Fund pursuant to subsection (c)(1)

shall be conducted in United States ship yards and shall be subject

to section 1424(b) of Public Law 101-510 (104 Stat. 1683).

(g) Expiration of Funds After 5 Years. - No part of an

appropriation that is deposited in the National Defense Sealift

Fund pursuant to subsection (d)(1) shall remain available for

obligation more than five years after the end of fiscal year for

which appropriated except to the extent specifically provided by

law.

(h) Budget Requests. - Budget requests submitted to Congress for

the National Defense Sealift Fund shall separately identify -

(1) the amount requested for programs, projects, and activities

for construction (including design of vessels), purchase,

alteration, and conversion of national defense sealift vessels;

(2) the amount requested for programs, projects, and activities

for operation, maintenance, and lease or charter of national

defense sealift vessels;

(3) the amount requested for programs, projects, and activities

for installation and maintenance of defense features for national

defense purposes on privately owned and operated vessels that are

constructed in the United States and documented under the laws of

the United States; and

(4) the amount requested for programs, projects, and activities

for research and development relating to national defense

sealift.

(i) Title or Management of Vessels. - Nothing in this section

(other than subsection (c)(1)(E)) shall be construed to affect or

modify title to, management of, or funding responsibilities for,

any vessel of the National Defense Reserve Fleet, or assigned to

the Ready Reserve Force component of the National Defense Reserve

Fleet, as established by section 11 of the Merchant Ship Sales Act

of 1946 (50 U.S.C. App. 1744).

(j) Authority for Certain Use of Funds. - Upon a determination by

the Secretary of Defense that such action serves the national

defense interest and after consultation with the congressional

defense committees, the Secretary may use funds available for

obligation or expenditure for a purpose specified under subsection

(c)(1)(A), (B), (C), and (D) for any purpose under subsection

(c)(1).

(k) Contracts for Incorporation of Defense Features in Commercial

Vessels. - (1) The head of an agency may enter into a contract with

a company submitting an offer for that company to install and

maintain defense features for national defense purposes in one or

more commercial vessels owned or controlled by that company in

accordance with the purpose for which funds in the National Defense

Sealift Fund are available under subsection (c)(1)(C). The head of

the agency may enter into such a contract only after the head of

the agency makes a determination of the economic soundness of the

offer. As consideration for a contract with the head of an agency

under this subsection, the company entering into the contract shall

agree with the Secretary of Defense to make any vessel covered by

the contract available to the Secretary, fully crewed and ready for

sea, at any time at any port determined by the Secretary, and for

whatever duration the Secretary determines necessary.

(2) The head of an agency may make advance payments to the

contractor under a contract under paragraph (1) in a lump sum, in

annual payments, or in a combination thereof for costs associated

with the installation and maintenance of the defense features on a

vessel covered by the contract, as follows:

(A) The costs to build, procure, and install a defense feature

in the vessel.

(B) The costs to periodically maintain and test any defense

feature on the vessel.

(C) Any increased costs of operation or any loss of revenue

attributable to the installation or maintenance of any defense

feature on the vessel.

(D) Any additional costs associated with the terms and

conditions of the contract.

(E) Payments of such sums as the Government would otherwise

expend, if the vessel were placed in the Ready Reserve Fleet, for

maintaining the vessel in the status designated as ''ROS-4

status'' in the Ready Reserve Fleet for 25 years.

(3) For any contract under paragraph (1) under which the United

States makes advance payments under paragraph (2) for the costs

associated with installation or maintenance of any defense feature

on a commercial vessel, the contractor shall provide to the United

States such security interests in the vessel, by way of a preferred

mortgage under section 31322 of title 46 or otherwise, as the head

of the agency may prescribe in order to adequately protect the

United States against loss for the total amount of those costs.

(4) Each contract entered into under this subsection shall -

(A) set forth terms and conditions under which, so long as a

vessel covered by the contract is owned or controlled by the

contractor, the contractor is to operate the vessel for the

Department of Defense notwithstanding any other contract or

commitment of that contractor; and

(B) provide that the contractor operating the vessel for the

Department of Defense shall be paid for that operation at fair

and reasonable rates.

(5) The head of an agency may not delegate authority under this

subsection to any officer or employee in a position below the level

of head of a procuring activity.

(6) The head of an agency may not enter into a contract under

paragraph (1) that would provide for payments to the contractor as

authorized in paragraph (2)(E) until notice of the proposed

contract is submitted to the congressional defense committees and a

period of 90 days has elapsed.

(l) Definitions. - In this section:

(1) The term ''Fund'' means the National Defense Sealift Fund

established by subsection (a).

(2) The term ''Department of Defense sealift vessel'' means any

ship owned, operated, controlled, or chartered by the Department

of Defense that is any of the following:

(A) A fast sealift ship, including any vessel in the Fast

Sealift Program established under section 1424 of Public Law

101-510 (104 Stat. 1683).

(B) A maritime prepositioning ship.

(C) An afloat prepositioning ship.

(D) An aviation maintenance support ship.

(E) A hospital ship.

(F) A strategic sealift ship.

(G) A combat logistics force ship.

(H) A maritime prepositioned ship.

(I) Any other auxiliary support vessel.

(3) The term ''national defense sealift vessel'' means -

(A) a Department of Defense sealift vessel; and

(B) a national defense reserve fleet vessel, including a

vessel in the Ready Reserve Force maintained under section 11

of the Merchant Ship Sales Act of 1946 (50 U.S.C. App. 1744).

(4) The term ''congressional defense committees'' means -

(A) the Committee on Armed Services and the Committee on

Appropriations of the Senate; and

(B) the Committee on Armed Services and the Committee on

Appropriations of the House of Representatives.

(5) The term ''head of an agency'' has the meaning given that

term in section 2302(1) of this title.

-SOURCE-

(Added Pub. L. 102-484, div. A, title X, Sec. 1024(a)(1), Oct. 23,

1992, 106 Stat. 2486; amended Pub. L. 102-396, title V, Oct. 6,

1992, 106 Stat. 1896; Pub. L. 104-106, div. A, title X, Sec.

1014(a), title XV, Sec. 1502(a)(15), Feb. 10, 1996, 110 Stat. 423,

503; Pub. L. 106-65, div. A, title X, Sec. 1014(b), 1015, 1067(1),

Oct. 5, 1999, 113 Stat. 742, 743, 774; Pub. L. 106-398, Sec. 1

((div. A), title X, Sec. 1011), Oct. 30, 2000, 114 Stat. 1654,

1654A-251; Pub. L. 107-107, div. A, title X, Sec. 1048(e)(9), Dec.

28, 2001, 115 Stat. 1228.)

-REFTEXT-

REFERENCES IN TEXT

Section 1424 of Public Law 101-510, referred to in subsecs.

(d)(3), (f)(2), and (l)(2)(A), is section 1424 of the National

Defense Authorization Act for Fiscal Year 1991 which is set out as

a note under section 7291 of this title.

-COD-

CODIFICATION

Pub. L. 102-396, title V, Oct. 6, 1992, 106 Stat. 1896, provided

that section 1024 of the National Defense Authorization Act for

Fiscal Year 1993 (H.R. 5006, Pub. L. 102-484), as it passed the

Senate on Oct. 3, 1992, shall be amended in subsection 2218(c)(2)

proposed for inclusion in this chapter by deleting all after

''expended only'' down to and including ''appropriations Act'' and

inserting in lieu thereof ''in amounts authorized by law''. It

further provided that for purposes of that amendment, Pub. L.

102-396 shall be treated as having been enacted after Pub. L.

102-484, regardless of the actual dates of enactment. The date of

Oct. 3, 1992, referred to as the date the Senate passed the

National Defense Authorization Act for Fiscal Year 1993, apparently

is based on an order adopted by the Senate on Oct. 3, 1992 (Cong.

Rec., vol. 138, p. 30919) providing that when the conference report

on the National Defense Authorization Act for Fiscal Year 1993 was

received by the Senate from the House of Representatives it would

be deemed to have been agreed to. On Oct. 5, 1992, the Senate

received the conference report from the House, and it was

considered adopted pursuant to that order (Cong. Rec., vol. 138, p.

31565).

-MISC3-

AMENDMENTS

2001 - Subsec. (d)(1). Pub. L. 107-107 struck out ''for fiscal

years after fiscal year 1993'' after ''Department of Defense'' in

introductory provisions.

2000 - Subsec. (k)(1). Pub. L. 106-398, Sec. 1 ((div. A), title

X, Sec. 1011(1)), inserted at end ''As consideration for a contract

with the head of an agency under this subsection, the company

entering into the contract shall agree with the Secretary of

Defense to make any vessel covered by the contract available to the

Secretary, fully crewed and ready for sea, at any time at any port

determined by the Secretary, and for whatever duration the

Secretary determines necessary.''

Subsec. (k)(2)(E). Pub. L. 106-398, Sec. 1 ((div. A), title X,

Sec. 1011(2)), added subpar. (E).

Subsec. (k)(6). Pub. L. 106-398, Sec. 1 ((div. A), title X, Sec.

1011(3)), added par. (6).

1999 - Subsec. (k). Pub. L. 106-65, Sec. 1015(a)(2), added

subsec. (k). Former subsec. (k) redesignated (l).

Subsec. (k)(2). Pub. L. 106-65, Sec. 1014(b), substituted ''that

is any of the following:'' for ''that is - '' in introductory

provisions, substituted ''A'' for ''a'' and a period for the

semicolon in subpars. (A) and (B), ''An'' for ''an'' and a period

for the semicolon in subpar. (C), ''An'' for ''an'' and a period

for ''; or'' in subpar. (D), and ''A'' for ''a'' in subpar. (E),

and added subpars. (F) to (I).

Subsec. (l). Pub. L. 106-65, Sec. 1015(a)(1), redesignated

subsec. (k) as (l).

Subsec. (l)(4)(B). Pub. L. 106-65, Sec. 1067(1), substituted

''Committee on Armed Services'' for ''Committee on National

Security''.

Subsec. (l)(5). Pub. L. 106-65, Sec. 1015(b), added par. (5).

1996 - Subsec. (c)(1). Pub. L. 104-106, Sec. 1014(a)(1)(A),

substituted ''only for the following purposes:'' for ''only for -

''.

Subsec. (c)(1)(A). Pub. L. 104-106, Sec. 1014(a)(1)(B), (C),

substituted ''Construction'' for ''construction'' and ''vessels.''

for ''vessels;''.

Subsec. (c)(1)(B). Pub. L. 104-106, Sec. 1014(a)(1)(B), (C),

substituted ''Operation'' for ''operation'' and ''purposes.'' for

''purposes;''.

Subsec. (c)(1)(C). Pub. L. 104-106, Sec. 1014(a)(1)(B), (D),

substituted ''Installation'' for ''installation'' and ''States.''

for ''States; and''.

Subsec. (c)(1)(D). Pub. L. 104-106, Sec. 1014(a)(1)(B),

substituted ''Research'' for ''research''.

Subsec. (c)(1)(E). Pub. L. 104-106, Sec. 1014(a)(1)(E), added

subpar. (E).

Subsec. (i). Pub. L. 104-106, Sec. 1014(a)(2), inserted ''(other

than subsection (c)(1)(E))'' after ''Nothing in this section''.

Subsec. (j). Pub. L. 104-106, Sec. 1502(a)(15)(A), substituted

''the congressional defense committees'' for ''the Committees on

Armed Services and on Appropriations of the Senate and the House of

Representatives''.

Subsec. (k)(4). Pub. L. 104-106, Sec. 1502(a)(15)(B), added par.

(4).

1992 - Subsec. (c)(2). Pub. L. 102-396 substituted ''in amounts

authorized by law'' for ''for programs, projects, and activities

and only in amounts authorized in, or otherwise permitted under, an

Act other than an appropriations Act''. See Codification note

above.

-CITE-

10 USC Sec. 2219 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

Sec. 2219. Retention of morale, welfare, and recreation funds by

military installations: limitation

-STATUTE-

Amounts may not be retained in a nonappropriated morale, welfare,

and recreation account of a military installation of an armed force

in excess of the amount necessary to meet cash requirements of that

installation. Amounts in excess of that amount shall be

transferred to a single nonappropriated morale, welfare, and

recreation account for that armed force. This section does not

apply to the Coast Guard.

-SOURCE-

(Added Pub. L. 103-337, div. A, title III, Sec. 373(a), Oct. 5,

1994, 108 Stat. 2736; amended Pub. L. 104-106, div. A, title III,

Sec. 341, Feb. 10, 1996, 110 Stat. 265.)

-MISC1-

AMENDMENTS

1996 - Pub. L. 104-106, in first sentence, substituted ''an armed

force'' for ''a military department'', in second sentence,

substituted ''a single, nonappropriated morale, welfare, and

recreation account for that armed force'' for ''a single,

department-wide nonappropriated morale, welfare, and recreation

account of the military department'', and inserted after second

sentence ''This section does not apply to the Coast Guard.''

-TRANS-

TRANSFER OF FUNCTIONS

For transfer of authorities, functions, personnel, and assets of

the Coast Guard, including the authorities and functions of the

Secretary of Transportation relating thereto, to the Department of

Homeland Security, and for treatment of related references, see

sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic

Security, and the Department of Homeland Security Reorganization

Plan of November 25, 2002, as modified, set out as a note under

section 542 of Title 6.

-CITE-

10 USC Sec. 2220 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

Sec. 2220. Performance based management: acquisition programs

-STATUTE-

(a) Establishment of Goals. - The Secretary of Defense shall

approve or define the cost, performance, and schedule goals for

major defense acquisition programs of the Department of Defense and

for each phase of the acquisition cycle of such programs.

(b) Evaluation of Cost Goals. - The Under Secretary of Defense

(Comptroller) shall evaluate the cost goals proposed for each major

defense acquisition program of the Department.

-SOURCE-

(Added Pub. L. 103-355, title V, Sec. 5001(a)(1), Oct. 13, 1994,

108 Stat. 3349; amended Pub. L. 104-106, div. A, title XV, Sec.

1503(a)(20), div. D, title XLIII, Sec. 4321(b)(1), Feb. 10, 1996,

110 Stat. 512, 671; Pub. L. 105-85, div. A, title VIII, Sec.

841(a), Nov. 18, 1997, 111 Stat. 1843; Pub. L. 107-314, div. A,

title X, Sec. 1041(a)(8), Dec. 2, 2002, 116 Stat. 2645.)

-MISC1-

AMENDMENTS

2002 - Subsec. (a). Pub. L. 107-314, Sec. 1041(a)(8)(B), (C),

struck out par. (1) designation and redesignated par. (2) as

subsec. (b).

Subsec. (b). Pub. L. 107-314, Sec. 1041(a)(8)(A), (C),

redesignated subsec. (a)(2) as (b) and struck out heading and text

of former subsec. (b). Text read as follows: ''The Secretary of

Defense shall include in the annual report submitted to Congress

pursuant to section 113(c) of this title an assessment of whether

major acquisition programs of the Department of Defense are

achieving, on average, 90 percent of cost, performance, and

schedule goals established pursuant to subsection (a) and whether

the average period for converting emerging technology into

operational capability has decreased by 50 percent or more from the

average period required for such conversion as of October 13, 1994.

The Secretary shall use data from existing management systems in

making the assessment.''

Subsec. (c). Pub. L. 107-314, Sec. 1041(a)(8)(A), struck out

heading and text of subsec. (c). Text read as follows: ''Whenever

the Secretary of Defense, in the assessment required by subsection

(b), determines that major defense acquisition programs of the

Department of Defense are not achieving, on average, 90 percent of

cost, performance, and schedule goals established pursuant to

subsection (a), the Secretary shall ensure that there is a timely

review of major defense acquisition programs and other programs as

appropriate. In conducting the review, the Secretary shall -

''(1) determine whether there is a continuing need for programs

that are significantly behind schedule, over budget, or not in

compliance with performance or capability requirements; and

''(2) identify suitable actions to be taken, including

termination, with respect to such programs.''

1997 - Subsec. (b). Pub. L. 105-85 substituted ''whether major

acquisition programs'' for ''whether major and nonmajor acquisition

programs''.

1996 - Subsec. (a)(2). Pub. L. 104-106, Sec. 1503(a)(20),

substituted ''Under Secretary of Defense (Comptroller)'' for

''Comptroller of the Department of Defense''.

Subsec. (b). Pub. L. 104-106, Sec. 4321(b)(1), substituted

''October 13, 1994'' for ''the date of the enactment of the Federal

Acquisition Streamlining Act of 1994''.

EFFECTIVE DATE OF 1996 AMENDMENT

For effective date and applicability of amendment by section

4321(b)(1) of Pub. L. 104-106, see section 4401 of Pub. L. 104-106,

set out as a note under section 251 of Title 41, Public Contracts.

PILOT PROGRAMS FOR TESTING PROGRAM MANAGER PERFORMANCE OF PRODUCT

SUPPORT OVERSIGHT RESPONSIBILITIES FOR LIFE CYCLE OF ACQUISITION

PROGRAMS

Pub. L. 105-261, div. A, title VIII, Sec. 816, Oct. 17, 1998,

112 Stat. 2088, provided that:

''(a) Designation of Pilot Programs. - The Secretary of Defense,

acting through the Secretaries of the military departments, shall

designate 10 acquisition programs of the military departments as

pilot programs on program manager responsibility for product

support.

''(b) Responsibilities of Program Managers. - The program manager

for each acquisition program designated as a pilot program under

this section shall have the responsibility for ensuring that the

product support functions for the program are properly carried out

over the entire life cycle of the program.

''(c) Report. - Not later than February 1, 1999, the Secretary of

Defense shall submit to the congressional defense committees

(Committees on Armed Services and Appropriations of Senate and

House of Representatives) a report on the pilot programs. The

report shall contain the following:

''(1) A description of the acquisition programs designated as

pilot programs under subsection (a).

''(2) For each such acquisition program, the specific

management actions taken to ensure that the program manager has

the responsibility for oversight of the performance of the

product support functions.

''(3) Any proposed change to law, policy, regulation, or

organization that the Secretary considers desirable, and

determines feasible to implement, for ensuring that the program

managers are fully responsible under the pilot programs for the

performance of all such responsibilities.''

ENHANCED SYSTEM OF PERFORMANCE INCENTIVES

Section 5001(b) of Pub. L. 103-355 provided that: ''Within one

year after the date of the enactment of this Act (Oct. 13, 1994),

the Secretary of Defense shall review the incentives and personnel

actions available to the Secretary of Defense for encouraging

excellence in the management of defense acquisition programs and

provide an enhanced system of incentives to facilitate the

achievement of goals approved or defined pursuant to section

2220(a) of title 10, United States Code. The enhanced system of

incentives shall, to the maximum extent consistent with applicable

law -

''(1) relate pay to performance (including the extent to which

the performance of personnel in such programs contributes to

achieving the cost goals, performance goals, and schedule goals

established for acquisition programs of the Department of Defense

pursuant to section 2220(a) of title 10, as added by subsection

(a)); and

''(2) provide for consideration, in personnel evaluations and

promotion decisions, of the extent to which the performance of

personnel in such programs contributes to achieving the cost

goals, performance goals, and schedule goals established for

acquisition programs of the Department of Defense pursuant to

section 2220(a) of title 10, United States Code, as added by

subsection (a).''

RECOMMENDED LEGISLATION

Section 5001(c) of Pub. L. 103-355 provided that: ''Not later

than one year after the date of the enactment of this Act (Oct 13,

1994), the Secretary of Defense shall submit to Congress any

recommended legislation that the Secretary considers necessary to

carry out section 2220 of title 10, United States Code, as added by

subsection (a), and otherwise to facilitate and enhance management

of Department of Defense acquisition programs on the basis of

performance.''

-CITE-

10 USC Sec. 2221 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

(Sec. 2221. Repealed. Pub. L. 105-261, div. A, title IX, Sec.

906(f)(1), Oct. 17, 1998, 112 Stat. 2096)

-MISC1-

Section, added Pub. L. 104-106, div. A, title IX, Sec.

914(a)(1), Feb. 10, 1996, 110 Stat. 412; amended Pub. L. 104-201,

div. A, title X, Sec. 1008(a), Sept. 23, 1996, 110 Stat. 2633;

Pub. L. 105-85, div. A, title X, Sec. 1006(a), Nov. 18, 1997, 111

Stat. 1869; Pub. L. 105-261, div. A, title X, Sec. 1069(b)(2),

Oct. 17, 1998, 112 Stat. 2136, related to Fisher House trust

funds. See section 2493 of this title.

EFFECTIVE DATE OF REPEAL

Repeal effective 90 days after Oct. 17, 1998, see section

906(f)(3) of Pub. L. 105-261, set out as an Effective Date of 1998

Amendment note under section 1321 of Title 31, Money and Finance.

-CITE-

10 USC Sec. 2222 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

(Sec. 2222. Repealed. Pub. L. 107-314, div. A, title X, Sec.

1004(h)(1), Dec. 2, 2002, 116 Stat. 2631)

-MISC1-

Section, added Pub. L. 105-85, div. A, title X, Sec. 1008(a)(1),

Nov. 18, 1997, 111 Stat. 1870; amended Pub. L. 107-107, div. A,

title X, Sec. 1009(b)(1)-(3)(A), Dec. 28, 2001, 115 Stat. 1208,

1209, required Secretary of Defense to submit to Congress an annual

strategic plan for improvement of financial management within

Department of Defense and specified statements and matters to be

included in the plan.

-CITE-

10 USC Sec. 2223 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

Sec. 2223. Information technology: additional responsibilities of

Chief Information Officers

-STATUTE-

(a) Additional Responsibilities of Chief Information Officer of

Department of Defense. - In addition to the responsibilities

provided for in chapter 35 of title 44 and in section 11315 of

title 40, the Chief Information Officer of the Department of

Defense shall -

(1) review and provide recommendations to the Secretary of

Defense on Department of Defense budget requests for information

technology and national security systems;

(2) ensure the interoperability of information technology and

national security systems throughout the Department of Defense;

(3) ensure that information technology and national security

systems standards that will apply throughout the Department of

Defense are prescribed;

(4) provide for the elimination of duplicate information

technology and national security systems within and between the

military departments and Defense Agencies; and

(5) maintain a consolidated inventory of Department of Defense

mission critical and mission essential information systems,

identify interfaces between those systems and other information

systems, and develop and maintain contingency plans for

responding to a disruption in the operation of any of those

information systems.

(b) Additional Responsibilities of Chief Information Officer of

Military Departments. - In addition to the responsibilities

provided for in chapter 35 of title 44 and in section 11315 of

title 40, the Chief Information Officer of a military department,

with respect to the military department concerned, shall -

(1) review budget requests for all information technology and

national security systems;

(2) ensure that information technology and national security

systems are in compliance with standards of the Government and

the Department of Defense;

(3) ensure that information technology and national security

systems are interoperable with other relevant information

technology and national security systems of the Government and

the Department of Defense; and

(4) coordinate with the Joint Staff with respect to information

technology and national security systems.

(c) Definitions. - In this section:

(1) The term ''Chief Information Officer'' means the senior

official designated by the Secretary of Defense or a Secretary of

a military department pursuant to section 3506 of title 44.

(2) The term ''information technology'' has the meaning given

that term by section 11101 of title 40.

(3) The term ''national security system'' has the meaning given

that term by section 11103 of title 40.

-SOURCE-

(Added Pub. L. 105-261, div. A, title III, Sec. 331(a)(1), Oct.

17, 1998, 112 Stat. 1967; amended Pub. L. 106-398, Sec. 1 ((div.

A), title VIII, Sec. 811(a)), Oct. 30, 2000, 114 Stat. 1654,

1654A-210; Pub. L. 107-217, Sec. 3(b)(1), Aug. 21, 2002, 116 Stat.

1295.)

-MISC1-

AMENDMENTS

2002 - Subsecs. (a), (b). Pub. L. 107-217, Sec. 3(b)(1)(A), (B),

substituted ''section 11315 of title 40'' for ''section 5125 of the

Clinger-Cohen Act of 1996 (40 U.S.C. 1425)'' in introductory

provisions.

Subsec. (c)(2). Pub. L. 107-217, Sec. 3(b)(1)(C), substituted

''section 11101 of title 40'' for ''section 5002 of the

Clinger-Cohen Act of 1996 (40 U.S.C. 1401)''.

Subsec. (c)(3). Pub. L. 107-217, Sec. 3(b)(1)(D), substituted

''section 11103 of title 40'' for ''section 5142 of the

Clinger-Cohen Act of 1996 (40 U.S.C. 1452)''.

2000 - Subsec. (a)(5). Pub. L. 106-398 added par. (5).

EFFECTIVE DATE

Pub. L. 105-261, div. A, title III, Sec. 331(b), Oct. 17, 1998,

112 Stat. 1968, provided that: ''Section 2223 of title 10, United

States Code, as added by subsection (a), shall take effect on

October 1, 1998.''

-CITE-

10 USC Sec. 2224 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

Sec. 2224. Defense Information Assurance Program

-STATUTE-

(a) Defense Information Assurance Program. - The Secretary of

Defense shall carry out a program, to be known as the ''Defense

Information Assurance Program'', to protect and defend Department

of Defense information, information systems, and information

networks that are critical to the Department and the armed forces

during day-to-day operations and operations in times of crisis.

(b) Objectives of the Program. - The objectives of the program

shall be to provide continuously for the availability, integrity,

authentication, confidentiality, nonrepudiation, and rapid

restitution of information and information systems that are

essential elements of the Defense Information Infrastructure.

(c) Program Strategy. - In carrying out the program, the

Secretary shall develop a program strategy that encompasses those

actions necessary to assure the readiness, reliability, continuity,

and integrity of Defense information systems, networks, and

infrastructure, including through compliance with subchapter III of

chapter 35 of title 44. The program strategy shall include the

following:

(1) A vulnerability and threat assessment of elements of the

defense and supporting nondefense information infrastructures

that are essential to the operations of the Department and the

armed forces.

(2) Development of essential information assurances

technologies and programs.

(3) Organization of the Department, the armed forces, and

supporting activities to defend against information warfare.

(4) Joint activities of the Department with other departments

and agencies of the Government, State and local agencies, and

elements of the national information infrastructure.

(5) The conduct of exercises, war games, simulations,

experiments, and other activities designed to prepare the

Department to respond to information warfare threats.

(6) Development of proposed legislation that the Secretary

considers necessary for implementing the program or for otherwise

responding to the information warfare threat.

(d) Coordination. - In carrying out the program, the Secretary

shall coordinate, as appropriate, with the head of any relevant

Federal agency and with representatives of those national critical

information infrastructure systems that are essential to the

operations of the Department and the armed forces on information

assurance measures necessary to the protection of these systems.

(e) Annual Report. - Each year, at or about the time the

President submits the annual budget for the next fiscal year

pursuant to section 1105 of title 31, the Secretary shall submit to

Congress a report on the Defense Information Assurance Program.

Each report shall include the following:

(1) Progress in achieving the objectives of the program.

(2) A summary of the program strategy and any changes in that

strategy.

(3) A description of the information assurance activities of

the Office of the Secretary of Defense, Joint Staff, unified and

specified commands, Defense Agencies, military departments, and

other supporting activities of the Department of Defense.

(4) Program and budget requirements for the program for the

past fiscal year, current fiscal year, budget year, and each

succeeding fiscal year in the remainder of the current

future-years defense program.

(5) An identification of critical deficiencies and shortfalls

in the program.

(6) Legislative proposals that would enhance the capability of

the Department to execute the program.

(7) A summary of the actions taken in the administration of

sections 3534 and 3535 of title 44 within the Department of

Defense.

(f) Information Assurance Test Bed. - The Secretary shall develop

an information assurance test bed within the Department of Defense

to provide -

(1) an integrated organization structure to plan and facilitate

the conduct of simulations, war games, exercises, experiments,

and other activities to prepare and inform the Department

regarding information warfare threats; and

(2) organization and planning means for the conduct by the

Department of the integrated or joint exercises and experiments

with elements of the national information systems infrastructure

and other non-Department of Defense organizations that are

responsible for the oversight and management of critical

information systems and infrastructures on which the Department,

the armed forces, and supporting activities depend for the

conduct of daily operations and operations during crisis.

-SOURCE-

(Added Pub. L. 106-65, div. A, title X, Sec. 1043(a), Oct. 5,

1999, 113 Stat. 760; amended Pub. L. 106-398, Sec. 1 ((div. A),

title X, Sec. 1063), Oct. 30, 2000, 114 Stat. 1654, 1654A-274; Pub.

L. 107-296, title X, Sec. 1001(c)(1)(B), Nov. 25, 2002, 116 Stat.

2267; Pub. L. 107-347, title III, Sec. 301(c)(1)(B), Dec. 17, 2002,

116 Stat. 2955.)

-MISC1-

AMENDMENTS

2002 - Subsec. (b)(1). Pub. L. 107-347, Sec. 301(c)(1)(B)(i),

substituted ''Objectives of the Program'' for ''Objectives and

Minimum Requirements'' in heading and struck out par. (1)

designation.

Pub. L. 107-296, Sec. 1001(c)(1)(B)(i), which directed

substituting ''Objectives of the Program'' for ''Objectives and

Minimum Requirements'' in heading and striking out par. (1)

designation, could not be executed. See above par.

Subsec. (b)(2). Pub. L. 107-347, Sec. 301(c)(1)(B)(ii), struck

out par. (2) which read as follows: ''The program shall at a

minimum meet the requirements of sections 3534 and 3535 of title

44.''

Pub. L. 107-296, Sec. 1101(c)(1)(B)(ii), which directed the

striking out of ''(2) the program shall at a minimum meet the

requirements of section 3534 and 3535 of title 44, United States

Code.'' could not be executed. See above par.

Subsec. (c). Pub. L. 107-347, Sec. 301(c)(1)(B)(iii), inserted

'', including through compliance with subchapter III of chapter 35

of title 44'' after ''infrastructure'' in introductory provisions.

Pub. L. 107-296, Sec. 1101(c)(1)(B)(iii), which directed the

insertion of '', including through compliance with subtitle II of

chapter 35 of title 44'' after ''infrastructure'' in subsec. (c),

was not executed, to reflect the probable intent of Congress and

the amendment by Pub. L. 107-347. See above par.

2000 - Subsec. (b). Pub. L. 106-398, Sec. 1 ((div. A), title X,

Sec. 1063(a)), substituted ''Objectives and Minimum Requirements''

for ''Objectives of the Program'' in heading, designated existing

provisions as par. (1), and added par. (2).

Subsec. (e)(7). Pub. L. 106-398, Sec. 1 ((div. A), title X, Sec.

1063(b)), added par. (7).

EFFECTIVE DATE OF 2002 AMENDMENT

Amendment by Pub. L. 107-296 effective 60 days after Nov. 25,

2002, see section 4 of Pub. L. 107-296, set out as an Effective

Date note under section 101 of Title 6, Domestic Security.

EFFECTIVE DATE OF 2000 AMENDMENT

Amendment by Pub. L. 106-398 effective 30 days after Oct. 30,

2000, see section 1 ((div. A), title X, Sec. 1065) of Pub. L.

106-398, set out as an Effective Date note under section 3531 of

Title 44, Public Printing and Documents.

INSTITUTE FOR DEFENSE COMPUTER SECURITY AND INFORMATION PROTECTION

Pub. L. 106-398, Sec. 1 ((div. A), title IX, Sec. 921), Oct. 30,

2000, 114 Stat. 1654, 1654A-233, provided that:

''(a) Establishment. - The Secretary of Defense shall establish

an Institute for Defense Computer Security and Information

Protection.

''(b) Mission. - The Secretary shall require the institute -

''(1) to conduct research and technology development that is

relevant to foreseeable computer and network security

requirements and information assurance requirements of the

Department of Defense with a principal focus on areas not being

carried out by other organizations in the private or public

sector; and

''(2) to facilitate the exchange of information regarding

cyberthreats, technology, tools, and other relevant issues.

''(c) Contractor Operation. - The Secretary shall enter into a

contract with a not-for-profit entity, or a consortium of

not-for-profit entities, to organize and operate the institute.

The Secretary shall use competitive procedures for the selection of

the contractor to the extent determined necessary by the Secretary.

''(d) Funding. - Of the amount authorized to be appropriated by

section 301(5) (114 Stat. 1654A-52), $5,000,000 shall be available

for the Institute for Defense Computer Security and Information

Protection.

''(e) Report. - Not later than April 1, 2001, the Secretary shall

submit to the congressional defense committees (Committees on Armed

Services and Appropriations of the Senate and the House of

Representatives) the Secretary's plan for implementing this

section.''

-CITE-

10 USC Sec. 2224a 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

Sec. 2224a. Information security: continued applicability of

expiring Governmentwide requirements to the Department of

Defense

-STATUTE-

(a) In General. - The provisions of subchapter II of chapter 35

of title 44 shall continue to apply through September 30, 2004,

with respect to the Department of Defense, notwithstanding the

expiration of authority under section 3536 (FOOTNOTE 1) of such

title.

(FOOTNOTE 1) See References in Text note below.

(b) Responsibilities. - In administering the provisions of

subchapter II of chapter 35 of title 44 with respect to the

Department of Defense after the expiration of authority under

section 3536 (FOOTNOTE 1) of such title, the Secretary of Defense

shall perform the duties set forth in that subchapter for the

Director of the Office of Management and Budget.

-SOURCE-

(Added Pub. L. 107-314, div. A, title X, Sec. 1052(b)(1), Dec. 2,

2002, 116 Stat. 2648.)

-REFTEXT-

REFERENCES IN TEXT

Provisions relating to the expiration of authority of subchapter

II of chapter 35 of title 44, referred to in text, did not appear

in section 3536 of title 44 subsequent to the general revision of

subchapter II by Pub. L. 107-296, title X, Sec. 1001(b)(1), Nov.

25, 2002, 116 Stat. 2259.

-CITE-

10 USC Sec. 2225 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

Sec. 2225. Information technology purchases: tracking and

management

-STATUTE-

(a) Collection of Data Required. - To improve tracking and

management of information technology products and services by the

Department of Defense, the Secretary of Defense shall provide for

the collection of the data described in subsection (b) for each

purchase of such products or services made by a military department

or Defense Agency in excess of the simplified acquisition

threshold, regardless of whether such a purchase is made in the

form of a contract, task order, delivery order, military

interdepartmental purchase request, or any other form of

interagency agreement.

(b) Data To Be Collected. - The data required to be collected

under subsection (a) includes the following:

(1) The products or services purchased.

(2) Whether the products or services are categorized as

commercially available off-the-shelf items, other commercial

items, nondevelopmental items other than commercial items, other

noncommercial items, or services.

(3) The total dollar amount of the purchase.

(4) The form of contracting action used to make the purchase.

(5) In the case of a purchase made through an agency other than

the Department of Defense -

(A) the agency through which the purchase is made; and

(B) the reasons for making the purchase through that agency.

(6) The type of pricing used to make the purchase (whether

fixed price or another type of pricing).

(7) The extent of competition provided in making the purchase.

(8) A statement regarding whether the purchase was made from -

(A) a small business concern;

(B) a small business concern owned and controlled by socially

and economically disadvantaged individuals; or

(C) a small business concern owned and controlled by women.

(9) A statement regarding whether the purchase was made in

compliance with the planning requirements under sections 5122 and

5123 of the Clinger-Cohen Act of 1996 (FOOTNOTE 1) (40 U.S.C.

1422, 1423).

(FOOTNOTE 1) See References in Text note below.

(c) Responsibility To Ensure Fairness of Certain Prices. - The

head of each contracting activity in the Department of Defense

shall have responsibility for ensuring the fairness and

reasonableness of unit prices paid by the contracting activity for

information technology products and services that are frequently

purchased commercially available off-the-shelf items.

(d) Limitation on Certain Purchases. - No purchase of information

technology products or services in excess of the simplified

acquisition threshold shall be made for the Department of Defense

from a Federal agency outside the Department of Defense unless -

(1) the purchase data is collected in accordance with

subsection (a); or

(2)(A) in the case of a purchase by a Defense Agency, the

purchase is approved by the Under Secretary of Defense for

Acquisition, Technology, and Logistics; or

(B) in the case of a purchase by a military department, the

purchase is approved by the senior procurement executive of the

military department.

(e) Annual Report. - Not later than March 15 of each year, the

Secretary of Defense shall submit to the Committees on Armed

Services of the Senate and the House of Representatives a report

containing a summary of the data collected in accordance with

subsection (a).

(f) Definitions. - In this section:

(1) The term ''senior procurement executive'', with respect to

a military department, means the official designated as the

senior procurement executive for the military department for the

purposes of section 16(3) of the Office of Federal Procurement

Policy Act (41 U.S.C. 414(3)).

(2) The term ''simplified acquisition threshold'' has the

meaning given the term in section 4(11) of the Office of Federal

Procurement Policy Act (41 U.S.C. 403(11)).

(3) The term ''small business concern'' means a business

concern that meets the applicable size standards prescribed

pursuant to section 3(a) of the Small Business Act (15 U.S.C.

632(a)).

(4) The term ''small business concern owned and controlled by

socially and economically disadvantaged individuals'' has the

meaning given that term in section 8(d)(3)(C) of the Small

Business Act (15 U.S.C. 637(d)(3)(C)).

(5) The term ''small business concern owned and controlled by

women'' has the meaning given that term in section 8(d)(3)(D) of

the Small Business Act (15 U.S.C. 637(d)(3)(D)).

-SOURCE-

(Added Pub. L. 106-398, Sec. 1 ((div. A), title VIII, Sec.

812(a)(1)), Oct. 30, 2000, 114 Stat. 1654, 1654A-212.)

-REFTEXT-

REFERENCES IN TEXT

Sections 5122 and 5123 of the Clinger-Cohen Act of 1996 (40

U.S.C. 1422, 1423), referred to in subsec. (b)(9), are sections

5122 and 5123 of Pub. L. 104-106, which were classified to sections

1422 and 1423 of former Title 40, Public Buildings, Property, and

Works, and were repealed and reenacted as sections 11312 and 11313

of Title 40, Public Buildings, Property, and Works, by Pub. L.

107-217, Sec. 1, 6(b), Aug. 21, 2002, 116 Stat. 1062, 1304.

-MISC2-

TIME FOR IMPLEMENTATION; APPLICABILITY

Pub. L. 106-398, Sec. 1 ((div. A), title VIII, Sec. 812(b)), Oct.

30, 2000, 114 Stat. 1654, 1654A-214, provided that:

''(1) The Secretary of Defense shall collect data as required

under section 2225 of title 10, United States Code (as added by

subsection (a)) for all contractual actions covered by such section

entered into on or after the date that is one year after the date

of the enactment of this Act (Oct. 30, 2000).

''(2) Subsection (d) of such section shall apply with respect to

purchases described in that subsection for which solicitations of

offers are issued on or after the date that is one year after the

date of the enactment of this Act.''

GAO REPORT

Pub. L. 106-398, Sec. 1 ((div. A), title VIII, Sec. 812(c)), Oct.

30, 2000, 114 Stat. 1654, 1654A-214, provided that: ''Not later

than 15 months after the date of the enactment of this Act (Oct.

30, 2000), the Comptroller General shall submit to the

congressional defense committees (Committees on Armed Services and

Appropriations of the Senate and the House of Representatives) a

report on the collection of data under such section 2225. The

report shall include the Comptroller General's assessment of the

extent to which the collection of data meets the requirements of

that section.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2330a of this title.

-CITE-

10 USC Sec. 2226 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

Sec. 2226. Contracted property and services: prompt payment of

vouchers

-STATUTE-

(a) Requirement. - Of the contract vouchers that are received by

the Defense Finance and Accounting Service by means of the

mechanization of contract administration services system, the

number of such vouchers that remain unpaid for more than 30 days as

of the last day of each month may not exceed 5 percent of the total

number of the contract vouchers so received that remain unpaid on

that day.

(b) Contract Voucher Defined. - In this section, the term

''contract voucher'' means a voucher or invoice for the payment to

a contractor for services, commercial items (as defined in section

4(12) of the Office of Federal Procurement Policy Act (41 U.S.C.

403(12))), or other deliverable items provided by the contractor

under a contract funded by the Department of Defense.

-SOURCE-

(Added Pub. L. 106-398, Sec. 1 ((div. A), title X, Sec.

1006(a)(1)), Oct. 30, 2000, 114 Stat. 1654, 1654A-247.)

-MISC1-

EFFECTIVE DATE

Pub. L. 106-398, Sec. 1 ((div. A), title X, Sec. 1006(b)), Oct.

30, 2000, 114 Stat. 1654, 1654A-248, provided that: ''Section 2226

of title 10, United States Code (as added by subsection (a)), shall

take effect on December 1, 2000.''

CONDITIONAL REQUIREMENT FOR REPORT

Pub. L. 106-398, Sec. 1 ((div. A), title X, Sec. 1006(c)), Oct.

30, 2000, 114 Stat. 1654, 1654A-248, provided that:

''(1) If for any month of the noncompliance reporting period the

requirement in section 2226 of title 10, United States Code (as

added by subsection (a)), is not met, the Secretary of Defense

shall submit to the Committee on Armed Services of the Senate and

the Committee on Armed Services of the House of Representatives a

report on the magnitude of the unpaid contract vouchers. The

report for a month shall be submitted not later than 30 days after

the end of that month.

''(2) A report for a month under paragraph (1) shall include

information current as of the last day of the month as follows:

''(A) The number of the vouchers received by the Defense

Finance and Accounting Service by means of the mechanization of

contract administration services system during each month.

''(B) The number of the vouchers so received, whenever received

by the Defense Finance and Accounting Service, that remain unpaid

for each of the following periods:

''(i) Over 30 days and not more than 60 days.

''(ii) Over 60 days and not more than 90 days.

''(iii) More than 90 days.

''(C) The number of the vouchers so received that remain unpaid

for the major categories of procurements, as defined by the

Secretary of Defense.

''(D) The corrective actions that are necessary, and those that

are being taken, to ensure compliance with the requirement in

subsection (a).

''(3) For purposes of this subsection:

''(A) The term 'noncompliance reporting period' means the

period beginning on December 1, 2000, and ending on November 30,

2004.

''(B) The term 'contract voucher' has the meaning given that

term in section 2226(b) of title 10, United States Code (as added

by subsection (a)).''

-CITE-

10 USC Sec. 2227 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

Sec. 2227. Electronic submission and processing of claims for

contract payments

-STATUTE-

(a) Submission of Claims. - The Secretary of Defense shall

require that any claim for payment under a Department of Defense

contract shall be submitted to the Department of Defense in

electronic form.

(b) Processing. - A contracting officer, contract administrator,

certifying official, or other officer or employee of the Department

of Defense who receives a claim for payment in electronic form in

accordance with subsection (a) and is required to transmit the

claim to any other officer or employee of the Department of Defense

for processing under procedures of the department shall transmit

the claim and any additional documentation necessary to support the

determination and payment of the claim to such other officer or

employee electronically.

(c) Waiver Authority. - If the Secretary of Defense determines

that the requirement for using electronic means for submitting

claims under subsection (a), or for transmitting claims and

supporting documentation under subsection (b), is unduly burdensome

in any category of cases, the Secretary may exempt the cases in

that category from the application of the requirement.

(d) Implementation of Requirements. - In implementing subsections

(a) and (b), the Secretary of Defense shall provide for the

following:

(1) Policies, requirements, and procedures for using electronic

means for the submission of claims for payment to the Department

of Defense and for the transmission, between Department of

Defense officials, of claims for payment received in electronic

form, together with supporting documentation (such as receiving

reports, contracts and contract modifications, and required

certifications).

(2) The format in which information can be accepted by the

corporate database of the Defense Finance and Accounting Service.

(3) The requirements to be included in contracts regarding the

electronic submission of claims for payment by contractors.

(e) Claim for Payment Defined. - In this section, the term

''claim for payment'' means an invoice or any other demand or

request for payment.

-SOURCE-

(Added Pub. L. 106-398, Sec. 1 ((div. A), title X, Sec.

1008(a)(1)), Oct. 30, 2000, 114 Stat. 1654, 1654A-249.)

-MISC1-

EFFECTIVE DATE

Pub. L. 106-398, Sec. 1 ((div. A), title X, Sec. 1008(c)), Oct.

30, 2000, 114 Stat. 1654, 1654A-250, provided that:

''(1) Subject to paragraph (2), the Secretary of Defense shall

apply section 2227 of title 10, United States Code (as added by

subsection (a)), with respect to contracts for which solicitations

of offers are issued after June 30, 2001.

''(2)(A) The Secretary may delay the implementation of section

2227 to a date after June 30, 2001, upon a finding that it is

impracticable to implement that section until that later date. In

no event, however, may the implementation be delayed to a date

after October 1, 2002.

''(B) Upon determining to delay the implementation of such

section 2227 to a later date under subparagraph (A), the Secretary

shall promptly publish a notice of the delay in the Federal

Register. The notice shall include a specification of the later

date on which the implementation of that section is to begin. Not

later than 30 days before the later implementation date, the

Secretary shall publish in the Federal Register another notice that

such section is being implemented beginning on that date.''

(Notice by Department of Defense of delay in the implementation

of this section from June 30, 2001, until Oct. 1, 2002, was

published on Aug. 21, 2001, at 66 F.R. 43841.)

IMPLEMENTATION PLAN

Pub. L. 106-398, Sec. 1 ((div. A), title X, Sec. 1008(b)), Oct.

30, 2000, 114 Stat. 1654, 1654A-250, provided that: ''Not later

than March 30, 2001, the Secretary of Defense shall submit to the

Committees on Armed Services of the Senate and the House of

Representatives a plan for the implementation of the requirements

imposed under section 2227 of title 10, United States Code (as

added by subsection (a)). The plan shall provide for each of the

matters specified in subsection (d) of that section.''

-CITE-

10 USC Sec. 2228 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 131 - PLANNING AND COORDINATION

-HEAD-

Sec. 2228. Military equipment and infrastructure: prevention and

mitigation of corrosion

-STATUTE-

(a) Designation of Responsible Official or Organization. - The

Secretary of Defense shall designate an officer or employee of the

Department of Defense, or a standing board or committee of the

Department of Defense, as the senior official or organization

responsible in the Department to the Secretary of Defense (after

the Under Secretary of Defense for Acquisition, Technology, and

Logistics) for the prevention and mitigation of corrosion of the

military equipment and infrastructure of the Department.

(b) Duties. - (1) The official or organization designated under

subsection (a) shall oversee and coordinate efforts throughout the

Department of Defense to prevent and mitigate corrosion of the

military equipment and infrastructure of the Department. The duties

under this paragraph shall include the duties specified in

paragraphs (2) through (5).

(2) The designated official or organization shall develop and

recommend any policy guidance on the prevention and mitigation of

corrosion to be issued by the Secretary of Defense.

(3) The designated official or organization shall review the

programs and funding levels proposed by the Secretary of each

military department during the annual internal Department of

Defense budget review process as those programs and funding

proposals relate to programs and funding for the prevention and

mitigation of corrosion and shall submit to the Secretary of

Defense recommendations regarding those programs and proposed

funding levels.

(4) The designated official or organization shall provide

oversight and coordination of the efforts within the Department of

Defense to prevent or mitigate corrosion during -

(A) the design, acquisition, and maintenance of military

equipment; and

(B) the design, construction, and maintenance of

infrastructure.

(5) The designated official or organization shall monitor

acquisition practices within the Department of Defense -

(A) to ensure that the use of corrosion prevention technologies

and the application of corrosion prevention treatments are fully

considered during research and development in the acquisition

process; and

(B) to ensure that, to the extent determined appropriate for

each acquisition program, such technologies and treatments are

incorporated into that program, particularly during the

engineering and design phases of the acquisition process.

(c) Long-Term Strategy. - (1) The Secretary of Defense shall

develop and implement a long-term strategy to reduce corrosion and

the effects of corrosion on the military equipment and

infrastructure of the Department of Defense.

(2) The strategy under paragraph (1) shall include the following:

(A) Expansion of the emphasis on corrosion prevention and

mitigation within the Department of Defense to include coverage

of infrastructure.

(B) Application uniformly throughout the Department of Defense

of requirements and criteria for the testing and certification of

new corrosion-prevention technologies for equipment and

infrastructure with similar characteristics, similar missions, or

similar operating environments.

(C) Implementation of programs, including supporting databases,

to ensure that a focused and coordinated approach is taken

throughout the Department of Defense to collect, review,

validate, and distribute information on proven methods and

products that are relevant to the prevention of corrosion of

military equipment and infrastructure.

(D) Establishment of a coordinated research and development

program for the prevention and mitigation of corrosion for new

and existing military equipment and infrastructure that includes

a plan to transition new corrosion prevention technologies into

operational systems.

(3) The strategy shall include, for the matters specified in

paragraph (2), the following:

(A) Policy guidance.

(B) Performance measures and milestones.

(C) An assessment of the necessary personnel and funding

necessary to accomplish the long-term strategy.

(d) Definitions. - In this section:

(1) The term ''corrosion'' means the deterioration of a

material or its properties due to a reaction of that material

with its chemical environment.

(2) The term ''military equipment'' includes all weapon

systems, weapon platforms, vehicles, and munitions of the

Department of Defense, and the components of such items.

(3) The term ''infrastructure'' includes all buildings,

structures, airfields, port facilities, surface and subterranean

utility systems, heating and cooling systems, fuel tanks,

pavements, and bridges.

-SOURCE-

(Added Pub. L. 107-314, div. A, title X, Sec. 1067(a)(1), Dec. 2,

2002, 116 Stat. 2657.)

-MISC1-

DEADLINE FOR DESIGNATION OF RESPONSIBLE OFFICIAL OR ORGANIZATION;

INTERIM REPORT; DEADLINE FOR LONG-TERM STRATEGY; GAO REVIEW

Pub. L. 107-314, div. A, title X, Sec. 1067(b)-(e), Dec. 2,

2002, 116 Stat. 2658, 2659, provided that:

''(b) Deadline for Designation of Responsible Official or

Organization. - The Secretary of Defense shall designate an

officer, employee, or standing board or committee of the Department

of Defense under subsection (a) of section 2228 of title 10, United

States Code, as added by subsection (a), not later than 90 days

after the date of the enactment of this Act (Dec. 2, 2002).

''(c) Interim Report. - When the President submits the budget for

fiscal year 2004 to Congress pursuant to section 1105(a) of title

31, United States Code, the Secretary of Defense shall submit to

Congress a report regarding the actions taken to that date under

section 2228 of title 10, United States Code, as added by

subsection (a). That report shall include the following:

''(1) A description of the organizational structure for the

personnel carrying out the responsibilities of the official or

organization designated under subsection (a) of that section with

respect to the prevention and mitigation of corrosion.

''(2) An outline for the long-term strategy for prevention and

mitigation of corrosion required by subsection (c) of that

section and milestones for development of that strategy.

''(d) Deadline for Long-Term Strategy. - The Secretary of Defense

shall submit to Congress a report setting forth the long-term

strategy required under subsection (c) of section 2228 of title 10,

United States Code, as added by subsection (a), not later than one

year after the date of the enactment of this Act.

''(e) GAO Review. - The Comptroller General shall monitor the

implementation of the long-term strategy required under subsection

(c) of section 2228 of title 10, United States Code, as added by

subsection (a), and, not later than 18 months after the date of the

enactment of this Act, shall submit to Congress an assessment of

the extent to which that strategy has been implemented.''

-CITE-