essary products or materials of the type usually produced or capable of being produced by that person or industry.

(b) COMPLIANCE WITH ORDER REQUIRED.-A person or industry with whom an order is placed under subsection (a), or the responsible head thereof, shall comply with that order and give it precedence over all orders not placed under that subsection.

(c) SEIZURE OF MANUFACTURING PLANTS UPON NONCOMPLIANCE.-In time of war or when war is imminent, the President, through the head of any department, may take immediate possession of any plant that is equipped to manufacture, or that in the opinion of the head of that department is capable of being readily transformed into a plant for manufacturing, arms or ammunition, parts thereof, or necessary supplies for the armed forces if the person or industry owning or operating the plant, or the responsible head thereof, refuses

(1) to give precedence to the order as prescribed in subsection (b);

(2) to manufacture the kind, quantity, or quality of arms or ammunition, parts thereof, or necessary supplies, as ordered by the head of such department; or

(3) to furnish them at a reasonable price as determined by the head of such department.

(d) USE OF SEIZED PLANT.-The President, through the head of any department, may manufacture products that are needed in time of war or when war is imminent, in any plant that is seized under subsection (c).

(e) COMPENSATION REQUIRED.-Each person or industry from whom products or materials are ordered under subsection (a) is entitled to fair and just compensation. Each person or industry whose plant is seized under subsection (c) is entitled to a fair and just rental.

(f) CRIMINAL PENALTY.-Whoever fails to comply with this section shall be imprisoned for not more than three years and fined under title 18.

(Added P.L. 103–160, §822(aX1), Nov. 30, 1993, 107 Stat. 1704, and amended P.L. 103-337, §811, Oct. 5, 1994, 108 Stat. 2815.)

§2539. Industrial mobilization: plants; lists

(a) LIST OF PLANTS EQUIPPED TO MANUFACTURE ARMS OR AMMUNITION.-The Secretary of Defense may maintain a list of all privately owned plants in the United States, and the territories, Commonwealths, and possessions of the United States, that are equipped to manufacture for the armed forces arms or ammunition, or parts thereof, and may obtain complete information of the kinds of those products manufactured or capable of being manufactured by each of those plants, and of the equipment and capacity of each of those plants.

(b) LIST OF PLANTS CONVERTIBLE INTO AMMUNITION FACTORIES.-The Secretary of Defense may maintain a list of privately owned plants in the United States, and the territories, Commonwealths, and possessions of the United States, that are capable of being readily transformed into factories for the manufacture of ammunition for the armed forces and that have a capacity sufficient to warrant conversion into ammunition plants in time of war or

when war is imminent, and may obtain complete information as to the

(c) CONVERSION PLANS.-The Secretary of Defense may prepare comprehensive plans for converting each plant listed pursuant to subsection (b) into a factory for the manufacture of ammunition or parts thereof.

(Added P.L. 103–160, § 822(a)(1), Nov. 30, 1993, 107 Stat. 1704.)

§ 2539a. Industrial mobilization: Board on Mobilization of Industries Essential for Military Preparedness

The President may appoint a nonpartisan Board on Mobilization of Industries Essential for Military Preparedness, and may provide necessary clerical assistance, to organize and coordinate operations under sections 2538 and 2539 of this title.

(Added as $2540 P.L. 103-160, §822(a)(1), Nov. 30, 1993, 107 Stat. 1704; redesignated 2539a P.L. 103-337, § 1070(a)(13)(A), Oct. 5, 1994, 108 Stat. 2856.)

§ 2539b. Availability of samples, drawings, information, equipment, materials, and certain services

(a) AUTHORITY.-The Secretary of Defense and the secretaries of the military departments, under regulations prescribed by the Secretary of Defense and when determined by the Secretary of Defense or the Secretary concerned to be in the interest of national defense, may each

(1) sell, rent, lend, or give samples, drawings, and manufacturing or other information (subject to the rights of third parties) to any person or entity;

(2) sell9 rent, or lend government equipment or materials to any person or entity

(A) for use in independent research and development programs, subject to the condition that the equipment or material be used exclusively for such research and development; or

(B) for use in demonstrations to a friendly foreign government; and

(3) make available to any person or entity, at an appropriate fee, the services of any government laboratory, center, range, or other testing facility for the testing of materials, equipment, models, computer software, and other items.

(b) CONFIDENTIALITY OF TEST RESULTS.-The results of tests performed with services made available under subsection (a)(3) are confidential and may not be disclosed outside the Federal Government without the consent of the persons for whom the tests are performed.

(c) FEES.-Fees for services made available under subsection (a)(3) shall be established in the regulations prescribed pursuant to subsection (a). Such fees may not exceed the amount necessary to recoup the direct costs involved, such as direct costs of utilities, contractor support, and salaries of personnel that are incurred by the United States to provide for the testing.

In section 2539b(a)(2), the word “sell” should be followed by a comma. The amendment made by section 3022 of the Federal Acquisition Streamlining Act of 1994 (P.L. 103-355; 108 Stat. 3333), which directed the insertion of "rent," after "sell," was executed by inserting "rent," after "sell" to reflect the probable intent of Congress.

(d) USE OF FEES.-Fees received for services made available under subsection (a)(3) may be credited to the appropriations or other funds of the activity making such services available.

(Added as §2541 P.L. 103-160, §822(b)(1), Nov. 30, 1993, 107 Stat. 1705; redesignated §2539b P.L. 103-337, § 1070(a)(13)(A), Oct. 5, 1994, 108 Stat. 2856; amended P.L. 103–355, § 3022, Oct. 13, 1994, 108 Stat. 3333.)

[CHAPTER 149-REPEALED]

[§§ 2511-2516. Repealed P.L. 102-494, § 4202(a), Oct. 23, 1992, 106 Stat. 2659]

[§ 2517. Transferred to § 2523]

[§ 2518. Transferred to § 2522]

[CHAPTER 150-REPEALED]

[§§ 2521-2523. Repealed P.L. 102-494, § 4202(a), Oct. 23, 1992, 106 Stat. 2659]

[§ 2524. Transferred to § 2513]

[§ 2525. Transferred to § 2517] [§ 2526. Transferred to § 2518]

Sec. 2631.

CHAPTER 157-TRANSPORTATION

Supplies: preference to United States vessels.

§ 2631. Supplies: preference to United States vessels

(a) Only vessels of the United States or belonging to the United States may be used in the transportation by sea of supplies bought for the Army, Navy, Air Force, or Marine Corps. However, if the President1 finds that the freight charged by those vessels is excessive or otherwise unreasonable, contracts for transportation may be made as otherwise provided by law. Charges made for the transportation of those supplies by those vessels may not be higher than the charges made for transporting like goods for private per

sons.

(b)(1) In each request for proposals to enter into a time-charter contract for the use of a vessel for the transportation of supplies under this section, the Secretary of Defense shall require that any reflagging or repair work on a vessel for which a proposal is submitted in response to the request for proposals be performed in the United States (including any territory of the United States).

(2) In paragraph (1), the term "reflagging or repair work" means work performed on a vessel

(A) to enable the vessel to meet applicable standards to become a vessel of the United States; or

(B) to convert the vessel to a more useful military configuration.

(3) The Secretary of Defense may waive the requirement described in paragraph (1) if the Secretary determines that such waiver is critical to the national security of the United States. The Secretary shall immediately notify the Congress of any such waiver and the reasons for such waiver.

(Aug. 10, 1956, ch. 1041, 70A Stat. 146; Nov. 30, 1993, P.L. 103-160, §315(a), 107 Stat. 1619.)

1The functions of the President under section 2631(a) were delegated to the Secretary of Defense, with authority for redelegation, by a memorandum of the President of August 7, 1985 (50 Fed. Reg. 36565).