ment 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) 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 or remanufacturing services provided by such facilities, to persons outside the Department of Defense if— (1) the person purchasing the article or service is fulfilling

a Department of Defense contract; and

(2) the Department of Defense solicitation for such contract is open to competition between Department of Defense activities and private firms.

(k) 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 acquistion of capital equipment for such activities.

(Added P.L. 87-651, § 207(a), Sept. 7, 1962, 76 Stat. 521, and amended P.L. 97–295, § 1(22), Oct. 12, 1982, 96 Stat. 1290; P.L. 98-94, § 1204(a), Sept. 24, 1983, 97 Stat. 683; P.L. 98-525, $305, Oct. 19, 1984, 98 Stat. 2513; P.L. 100-26, § 7(d)(2), April 21, 1987, 101 Stat. 280; P.L. 101-510, §§ 801, 1301(6), Nov. 5, 1990, 104 Stat. 1588, 1668; P.L. 102-172, §8137, Nov. 26, 1991, 105 Stat. 1212; P.L. 102-484, §374, Oct. 23, 1992, 106 Stat. 2385; P.L. 103–160, § 158(b), Nov. 30, 1993, 107 Stat. 1582.)

§ 2209. Management funds

(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 appro

priation 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.

(Added P.L. 87-651, §207(a), Sept. 7, 1962, 76 Stat. 522.)

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

(a) 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.

(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.

(Added P.L. 87-651, §207(a), Sept. 7, 1962, 76 Stat. 522, and amended P.L. 96–513, §511(72), Dec. 12, 1980, 94 Stat. 2926.)

§2211. Reimbursement for equipment, material, or services furnished members of the United Nations

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)). (Added P.L. 87-651, §207(a), Sept. 7, 1962, 76 Stat. 522, and amended P.L. 96–513, §511(73), Dec. 12, 1980, 94 Stat. 2926.)

[§ 2212. Repealed. P.L. 103-355, § 2454(c)(1), Oct. 13, 1994, 108 Stat. 3326]

§ 2213. Limitation on acquisition of excess supplies

(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 writ

(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.

(Added P.L. 102–190, § 317(a), Dec. 5, 1991, 105 Stat. 1338.)

§ 2214. Transfer of funds: procedure and limitations 2

(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) 3 LIMITATIONS ON REQUESTS ΤΟ 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 require

2 Section 8005 of the Department of Defense Appropriations Act, 1995 (P.L. 103–335, 108 Stat. 2617), provides:

SEC. 8005. Upon determination by the Secretary of Defense that such action is necessary in the national interest, he may, with the approval of the Office of Management and Budget, transfer not to exceed $2,000,000,000 of working capital funds of the Department of Defense or funds made available in this Act to the Department of Defense for military functions (except military construction) between such appropriations or funds or any subdivision thereof, to be merged with and to be available for the same purposes, and for the same time period, as the appropriation or fund to which transferred: Provided, That such authority to transfer may not be used unless for higher priority items, based on unforeseen military requirements, than those for which originally appropriated and in no case where the item for which funds are requested has been denied by Congress: Provided further, That the Secretary of Defense shall notify the Congress promptly of all transfers made pursuant to this authority or any other authority in this Act.

Section 8080 of Department of Defense Appropriations Act, 1995 (P.L. 103–335, 108 Stat. 2636) provides:

SEC. 8080. No part of the funds in this Act shall be available to prepare or present a request to the Committees on Appropriations for reprogramming of funds, unless for higher priority items, based on unforeseen military requirements, than those for which originally appropriated and in no case where the item for which reprogramming is requested has been denied by the Congress.

ments, 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. (Added P.L. 101–510, § 1482(c), Nov. 5, 1990, 104 Stat. 1709.)

§2215. Transfer of funds to other departments and agencies: limitation

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 Committees on Armed Services and the Committees on Appropriations of the Senate and House of Representatives a certification that making those funds available to such other department or agency is in the national security interest of the United States.

(Added P.L. 103–160, §1106(a)(1), Nov. 30, 1993, 107 Stat. 1750 (former 2215 repealed by § 1301(7) of P.L. 101-510].)

[§ 2216. Repealed. P.L. 101-510, § 1301(8), Nov. 5, 1990, 104 Stat. 1668]

§ 2217. Comparable budgeting for common procurement weapon system

(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 Comptroller of the Department of Defense.

(c) DEFINITIONS.-In this section:

(1) The term "defense budget" means the budget of the epartment 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.

(Added P.L. 100–370, § 1(d)(3), July 19, 1988, 102 Stat. 843.)

§ 2218. National Defense Sealift Fund

(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(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; and

(D) research and development relating to national defense sealift.

(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 fiscal years after fiscal year 1993 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.