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PART IV-SERVICE, SUPPLY, AND
131. Planning and Coordination
134. Miscellaneous Administrative Provisions
137. Procurement Generally
138. Cooperative Agreements with NATO Allies and Other Countries
139. Research and Development
Procurement of Commercial Items
142. Procurement Technical Assistance Cooperative Agreement Program
143. Production by Military Agencies
144. Major Defense Acquisition Programs
148. National Defense Technology and Industrial Base,
CHAPTER 131-PLANNING AND COORDINATION
Apportionment of funds: authority for exemption; excepted expenses.
Obligation of appropriations.
Disbursement of funds of military department to cover obligations of an-
Proceeds of sales of supplies: credit to appropriations.
Reimbursement for equipment, material, or services furnished members of
the United Nations.
§ 2201. Apportionment of funds: authority for exemptions;
Limitation on acquisition of excess supplies.
Transfer of funds to other departments and agencies: limitation.
Comparable budgeting for common procurement weapon systems.
Retention of morale, welfare, and recreation funds by military installations: limitation.
Performance based management: acquisition programs.
(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-
(2) shall submit monthly reports to Congress on the estimated obligations incurred pursuant to subsections (b) and (c). (Added P.L. 100–370, § 1(d)(1), July 19, 1988, 102 Stat. 841.)
production, warehousing, and supply distribution functions
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.
(Aug. 10, 1956, ch. 1041, 70A Stat. 120; Dec. 4, 1987, P.L. 100-180, § 1202, 101 Stat. 1153; revised in its entirety P.L. 103–355, § 3061(a), Oct. 13, 1994, 108 Stat. 3336.)
$2203. Budget estimates
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. (Added P.L. 87-651, §207(a), Sept. 7, 1962, 76 Stat. 520, and amended P.L. 97–295, § 1(21), Oct. 12, 1982, 96 Stat. 1290; P.L. 99-661, §311, Nov. 14, 1986, 100 Stat. 3851.)
§2204. Obligation of appropriations
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.
(Added P.L. 87–651, §207(a), Sept. 7, 1962, 76 Stat. 520.) §2205. Reimbursements
(a) AVAILABILITY OF
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.
(Added P.L. 87-651, §207(a), Sept. 7, 1962, 76 Stat. 520, and amended P.L. 96-513, §511(71), Dec. 12, 1980, 94 Stat. 2926; P.L. 97-258, §3(b)(4), Sept. 13, 1982, 96 Stat. 1063; P.L. 103–337, § 2804(a), (b)(1), Oct. 5, 1994, 108 Stat. 3053.)
§ 2206. Disbursement of funds of military department to cover obligation of another agency of Department of Defense
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.
(Added P.L. 87-651, § 207(a), Sept. 7, 1962, 76 Stat. 520, and amended P.L. 97–258, § 2(b)(1XA), Sept. 13, 1982, 96 Stat. 1052.)
§ 2207. Expenditure of appropriations: limitation
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 not 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. (Added P.L. 87-651, § 207(a), Sept. 7, 1962, 76 Stat. 520.)
§ 2208. Working-capital funds 1
(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 workingcapital 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 Depart
1 Section 316 of the National Defense Authorization Act for Fiscal Years 1992 and 1993 (P.L. 102-190, 105 Stat. 1338), as amended, provides that working-capital funds established under section 2208 may be managed through the Defense Business Operations Fund.