(d) APPLICABILITY.-This section applies only to procurements of covered property and services involving the following small arms: (1) M16 series rifle. (2) MK19 grenade machine gun. (4) M240 series machine gun. (5) M249 squad automatic weapon. (e) SUBMISSION OF CERTIFIED COST OR PRICING DATA.-If a procurement under subsection (a) is a procurement of a commercial item, the Secretary may, notwithstanding section 2306a(b)(1)(B) of this title, require the submission of certified cost or pricing data under section 2306a(a) of this title. (Added P.L. 104-201, § 832(a), Sept. 23, 1996, 110 Stat. 2616; amended P.L. 105–261, §809(a)– (d), Oct. 17, 1998, 112 Stat. 2085, 2086; P.L. 106-65, §815(b), Oct. 5, 1999, 113 Stat. 712.) § 2474. Centers of Industrial and Technical Excellence: designation; public-private partnerships (a) DESIGNATION.-(1) The Secretary concerned, or the Secretary of Defense in the case of a Defense Agency, shall designate each depot-level activity of the military departments and the Defense Agencies (other than facilities approved for closure or major realignment under the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note)) as a Center of Industrial and Technical Excellence in the recognized core competencies of the designee. (2) The Secretary of Defense shall establish a policy to encourage the Secretary of each military department and the head of each Defense Agency to reengineer industrial processes and adopt bestbusiness practices at their Centers of Industrial and Technical Excellence in connection with their core competency requirements, so as to serve as recognized leaders in their core competencies throughout the Department of Defense and in the national technology and industrial base (as defined in section 2500(1) of this title). (3) The Secretary of a military department may conduct a pilot program, consistent with applicable requirements of law, to test any practices referred to in paragraph (2) that the Secretary determines could improve the efficiency and effectiveness of operations at Centers of Industrial and Technical Excellence, improve the support provided by the Centers for the armed forces user of the services of the Centers, and enhance readiness by reducing the time that it takes to repair equipment. (b) PUBLIC-PRIVATE PARTNERSHIPS. (1) To achieve one or more objectives set forth in paragraph (2), the Secretary designating a Center of Industrial and Technical Excellence under subsection (a) may authorize and encourage the head of the Center to enter into public-private cooperative arrangements (in this section referred to as a "public-private partnership") to provide for any of the following: (A) For employees of the Center, private industry, or other entities outside the Department of Defense to perform (under contract, subcontract, or otherwise) work related to the core competencies of the Center, including any depot-level mainte nance and repair work that involves one or more core competencies of the Center. (B) For private industry or other entities outside the Department of Defense to use, for any period of time determined to be consistent with the needs of the Department of Defense, any facilities or equipment of the Center that are not fully utilized for a military department's own production or maintenance requirements. (2) The objectives for exercising the authority provided in paragraph (1) are as follows: (A) To maximize the utilization of the capacity of a Center of Industrial and Technical Excellence. (B) To reduce or eliminate the cost of ownership of a Center by the Department of Defense in such areas of responsibility as operations and maintenance and environmental remediation. (C) To reduce the cost of products of the Department of Defense produced or maintained at a Center. (D) To leverage private sector investment in (i) such efforts as plant and equipment recapitalization for a Center; and (ii) the promotion of the undertaking of commercial business ventures at a Center. (E) To foster cooperation between the armed forces and private industry. (3) If the Secretary concerned, or the Secretary of Defense in the case of a Defense Agency, authorizes the use of public-private partnerships under this subsection, the Secretary shall submit to Congress a report evaluating the need for loan guarantee authority, similar to the ARMS Initiative loan guarantee program under section 4555 of this title, to facilitate the establishment of publicprivate partnerships and the achievement of the objectives set forth in paragraph (2). (c) PRIVATE SECTOR USE OF EXCESS CAPACITY.-Any facilities or equipment of a Center of Industrial and Technical Excellence made available to private industry may be used to perform maintenance or to produce goods in order to make more efficient and economical use of Government-owned industrial plants and encourage the creation and preservation of jobs to ensure the availability of a workforce with the necessary manufacturing and maintenance skills to meet the needs of the armed forces. (d) CREDITING OF AMOUNTS FOR PERFORMANCE.-Amounts received by a Center for work performed under a public-private partnership shall be credited to the appropriation or fund, including a working-capital fund, that incurs the cost of performing the work. Consideration in the form of rental payments or (notwithstanding section 3302(b) of title 31) in other forms may be accepted for a use of property accountable under a contract performed pursuant to this section. Notwithstanding section 2667(d) of this title, revenues generated pursuant to this section shall be available for facility operations, maintenance, and environmental restoration at the Center where the leased property is located. (e) AVAILABILITY OF EXCESS EQUIPMENT TO PRIVATE-SECTOR PARTNERS.-Equipment or facilities of a Center of Industrial and Technical Excellence may be made available for use by a privatesector entity under this section only if (1) the use of the equipment or facilities will not have a significant adverse effect on the readiness of the armed forces, as determined by the Secretary concerned or, in the case of a Center in a Defense Agency, by the Secretary of Defense; and (2) the private-sector entity agrees (A) to reimburse the Department of Defense for the direct and indirect costs (including any rental costs) that are attributable to the entity's use of the equipment or facilities, as determined by that Secretary; and (B) to hold harmless and indemnify the United States from (i) any claim for damages or injury to any person or property arising out of the use of the equipment or facilities, except under the circumstances described in section 2563(c)(3) of this title; and (ii) any liability or claim for damages or injury to any person or property arising out of a decision by the Secretary concerned or the Secretary of Defense to suspend or terminate that use of equipment or facilities during a war or national emergency. (f) EXCLUSION OF CERTAIN EXPENDITURES FROM PERCENTAGE LIMITATION. (1) Amounts expended for the performance of a depot-level maintenance and repair workload by non-Federal Government personnel at a Center of Industrial and Technical Excellence under any contract entered into during fiscal years 2003 through 2006 shall not be counted for purposes of applying the percentage limitation in section 2466(a) of this title if the personnel are provided by private industry or other entities outside the Department of Defense pursuant to a public-private partnership. (2) All funds covered by paragraph (1) shall be included as a separate item in the reports required under paragraphs (1), (2), and (3) of section 2466(e) of this title. (g) CONSTRUCTION OF PROVISION.-Nothing in this section may be construed to authorize a change, otherwise prohibited by law, from the performance of work at a Center of Industrial and Technical Excellence by Department of Defense personnel to performance by a contractor. (Added P.L. 105-85, §361(a)(1), Nov. 18, 1997, 111 Stat. 1700; amended P.L. 106-398, §1[341(a)-(e)], Oct. 30, 2000, 114 Stat. 1654, 1654A-61; P.L. 107-107, 88342, 343(b), Dec. 28, 2001, 115 Stat. 1060, 1061; P.L. 107–314, § 334, Dec. 2, 2002, 116 Stat. 2514.) § 2475. Consolidation, restructuring, or reengineering of organizations, functions, or activities: notification requirements (a) REQUIREMENT TO SUBMIT PLAN ANNUALLY.-Concurrently with the submission of the President's annual budget request under section 1105 of title 31, the Secretary of Defense shall submit to Congress each Strategic Sourcing Plan of Action for the Department of Defense (as identified in the Department of Defense Interim Guidance dated February 29, 2000, or any successor Department of Defense guidance or directive), for the following year. (b) NOTIFICATION OF DECISION TO EXECUTE PLAN.-If a decision is made to consolidate, restructure, or reengineer an organization, function, or activity of the Department of Defense pursuant to a Strategic Sourcing Plan of Action described in subsection (a), and such consolidation, restructuring, or reengineering would result in a manpower reduction affecting 50 or more personnel of the Department of Defense (including military and civilian personnel)— (1) the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report describing that decision, including— (A) a projection of the savings that will be realized as a result of the consolidation, restructuring, or reengineering, compared with the cost incurred by the Department of Defense to perform the function or to operate the organization or activity prior to such proposed consolidation, restructuring, or reengineering; (B) a description of all missions, duties, or military requirements that will be affected as a result of the decision to consolidate, restructure, or reengineer the organization, function, or activity that was analyzed; (C) the Secretary's certification that the consolidation, restructuring, or reengineering will not result in any diminution of military readiness; (D) a schedule for performing the consolidation, restructuring, or reengineering; and (E) the Secretary's certification that the entire analysis for the consolidation, restructuring, or reengineering is available for examination; and (2) the head of the Defense Agency or the Secretary of the military department concerned may not implement the plan until 30 days after the date that the agency head or Secretary submits notification to the Committees on Armed Services of the Senate and House of Representatives of the intent to carry out such plan. (Added P.L. 106-398, § 1[353(a)], Oct. 30, 2000, 114 Stat. 1654, 1654A-72.) CHAPTER 147-COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE, AND RECREATION ACTIVITIES Sec. [2481. Transferred.] 2482. 2482a. 2483. 2484. 2485. 2486. 2487. 2488. 2489. 2489a. [2490. 2490a. 2492. 2493. 2494. Commissary stores: operation. Nonappropriated fund instrumentalities: contracts with other agencies Commissary stores: use of appropriated funds to cover operating expenses. Commissary stores: merchandise that may be sold; uniform surcharges Commissary stores: release of certain commercially valuable information Nonappropriated fund instrumentalities: purchase of alcoholic beverages. Sale or rental of sexually explicit material prohibited. Transferred.] Combined exchange and commissary stores. Overseas commissary and exchange stores: access and purchase restrictions. Fisher Houses: administration as nonappropriated fund instrumentality. Uniform funding and management of morale, welfare, and recreation programs. [Former § 2481 transferred to § 2686] 1 § 2482. Commissary stores: operation 1 (a) PRIVATE OPERATION.-Private persons may operate commissary stores under such regulations as the Secretary of Defense may approve. A contract with a private person for the operation of any commissary store may not require or permit the contractor to carry out functions for the procurement of products to be sold in the store or to engage in functions relating to the overall management of a commissary system or the management of any such 1 Section 367 of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (P.L. 105-261; 112 Stat. 1987) provides: SEC. 367. PROHIBITION ON CONSOLIDATION OR OTHER ORGANIZATIONAL CHANGES OF DEPARTMENT OF DEFENSE RETAIL SYSTEMS. (a) DEFENSE RETAIL SYSTEMS DEFINED.-For purposes of this section, the term "defense retail systems" means the defense commissary system and exchange stores and other revenue-generating facilities operated by nonappropriated fund activities of the Department of Defense for the morale, welfare, and recreation of members of the Armed Forces. (b) PROHIBITION.-The operation and administration of the defense retail systems may not be consolidated or otherwise merged unless the consolidation or merger is specifically authorized by a law enacted after [Oct. 17, 1998]. (c) EFFECT ON EXISTING STUDY.-Nothing in this section shall be construed to prohibit the study of defense retail systems, known as the "Joint Exchange Due Diligence Study", which is underway on [Oct. 17, 1998] pursuant to a contract awarded by the Department of the Navy on April 21, 1998, except that any recommendation contained in the completed study regarding the operation or administration of the defense retail systems may not be implemented unless implementation of the recommendation is specifically authorized by a law enacted after [Oct. 17, 1998]. |