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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 facili

ties 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, 88 342, 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 İnterim Guidance dated February 29, 2000, or any successor Department of Defense guidance or directive), for the following year.

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(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

result of the consolidation, restructuring, or engineering, 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 CHAPTER 147—COMMISSARIES AND EXCHANGES AND

out such plan. (Added P.L. 106–398, § 1[353(a)], Oct. 30, 2000, 114 Stat. 1654, 1654A-72.)

OTHER MORALE, WELFARE, AND RECREATION ACTIVITIES

Sec. [2481. Transferred.] 2482. Commissary stores: operation. 2482a. Nonappropriated fund instrumentalities: contracts with other agencies

and instrumentalities to provide and obtain goods and services. 2483. Commissary stores: reimbursement for use of commissary facilities by

military departments. 2484. Commissary stores: use of appropriated funds to cover operating expenses. 2485. Donation of unusable food: commissary ores and other activities. 2486. Commissary stores: merchandise that may be sold; uniform surcharges

and pricing. 2487. Commissary stores: release of certain commercially valuable information

to the public. 2488. Nonappropriated fund instrumentalities: purchase of alcoholic beverages. 2489. Overseas package stores: treatment of United States wines. 2489a. Sale or rental of sexually explicit material prohibited. (2490. Transferred.] 2490a. Combined exchange and commissary stores. 2492. Overseas commissary and exchange stores: access and purchase restric

tions. 2493. Fisher Houses: administration as nonappropriated fund instrumentality. 2494. Uniform funding and management of morale, welfare, and recreation pro

grams. [Former § 2481 transferred to $ 2686] $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 store. Such functions shall be carried out by personnel of the Department of Defense under regulations approved by the Secretary of Defense.

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).

(b) CONTRACTS WITH OTHER AGENCIES AND INSTRUMENTALITIES. (1) The Defense Commissary Agency, and any other agency of the Department of Defense that supports the operation of the commissary system, may enter into a contract or other agreement with another element of the Department of Defense or with another Federal department, agency, or instrumentality to provide or obtain services beneficial to the efficient management and operation of the commissary system. However, the Defense Commissary Agency may not pay for any such service provided by the United States Transportation Command any amount that exceeds the price at which the service could be procured through full and open competition, as such term is defined in section 4(6) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(6)).

(2) A commissary store operated by a nonappropriated fund instrumentality of the Department of Defense shall be operated in accordance with section 2484 of this title. Subject to such section, the Secretary of Defense may authorize a transfer of goods, supplies, and facilities of, and funds appropriated for, the Defense Commissary Agency or any other agency of the Department of Defense that supports the operation of the commissary system to a nonappropriated fund instrumentality for the operation of a commissary store.

(c) GOVERNING BOARD.—(1) Notwithstanding section 192(d) of this title, the Secretary of Defense shall establish a governing board for the commissary system to provide advice to the Secretary regarding the prudent operation of the commissary system and to assist in the overall supervision of the Defense Commissary Agency. The Secretary may authorize the board to have such supervisory authority as the Secretary considers appropriate to permit the board to carry out its responsibilities.

(2) The Secretary of Defense shall determine the membership of the governing board, which shall include, at a minimum, appropriate representatives from each military department.

(3) The governing board shall be accountable only to the Secretary of Defense and to the civilian officer of the Department of Defense who is assigned the responsibility for the overall supervision of the Defense Commissary Agency pursuant to section 192(a) of this title. The Director of the Defense Commissary Agency shall be accountable to and report to the board. (Aug. 10, 1956, ch. 1041, 70A Stat. 141; Sept. 29, 1988, P.L. 100–456, $321, 102 Stat. 1952; Feb. 10, 1996, P.L. 104-106, § 331(a), 110 Stat. 260; Sept. 23, 1996, P.L. 104–201, $ 341(b), 110 Stat. 2489; P.L. 105–261, $$ 361(b), 363(a), Oct. 17, 1998, 112 Stat. 1984, 1985.) $ 2482a. Nonappropriated fund instrumentalities: contracts

with other agencies and instrumentalities to pro

vide and obtain goods and services An agency or instrumentality of the Department of Defense that supports the operation of the exchange system, or the operation of a morale, welfare, and recreation system, of the Department of Defense may enter into a contract or other agreement with another element of the Department of Defense or with another Federal department, agency, or instrumentality to provide or obtain goods and services beneficial to the efficient management and operation of the exchange system or that morale, welfare, and recreation system. (Added P.L. 104–201, $341(a)(1), Sept. 23, 1996, 110 Stat. 2488.) $ 2483. Commissary stores: reimbursement for use of com

missary facilities by military departments (a) PAYMENT REQUIRED.—The Secretary of a military department shall pay the Defense Commissary Agency the amount determined under subsection (b) for any use of a commissary facility by the military department for a purpose other than commissary sales or operations in support of commissary sales.

(b) AMOUNT.—The amount payable under subsection (a) for use of a commissary facility by a military department shall be equal to the share of depreciation of the facility that is attributable to that use, as determined under regulations prescribed by the Secretary of Defense.

(c) COVERED FACILITIES.—This section applies with respect to a commissary facility that is acquired, constructed, converted, expanded, installed, or otherwise improved (in whole or in part) with the proceeds of an adjustment or surcharge applied under section 2486(c) of this title.

(d) CREDITING OF PAYMENTS.-The Director of the Defense Commissary Agency shall credit amounts paid under this section for use of a facility to an appropriate account to which proceeds of an adjustment or surcharge referred to in subsection (c) are credited. (Added P.L. 107–107, § 332(a), Dec. 28, 2001, 115 Stat. 1058.) § 2484. Commissary stores: use of appropriated funds to

cover operating expenses (a) OPERATION OF AGENCY AND SYSTEM.—Except as otherwise provided in this title, the operation of the Defense Commissary Agency and the defense commissary system may be funded using such amounts as are appropriated for such purpose.

(b) OPERATING EXPENSES OF COMMISSARY STORES.-Appropriated funds may be used to cover the expenses of operating commissary stores and central product processing facilities of the defense commissary system. For purposes of this subsection, operating expenses include the following:

(1) Salaries and wages of employees of the United States, host nations, and contractors supporting commissary store operations.

(2) Utilities.
(3) Communications.
(4) Operating supplies and services.

(5) Second destination transportation costs within or outside the United States.

(6) Any cost associated with above-store-level management or other indirect support of a commissary store or a central product processing facility, including equipment maintenance and information technology costs.

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