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CHAPTER 4334 PROCUREMENT

Sec. [4531. Repealed.] 4532. Factories and arsenals: manufacture at; abolition of. [4533 to 4535. Repealed.] 4536. Equipment: post bakeries, schools, kitchens, and mess halls. [4537 to 4539. Repealed.] 4540. Architectural and engineering services. 4541. Army arsenals: treatment of unutilized or underutilized plant-capacity

costs. 4542. Technical data packages for large-caliber.cannon: prohibition on transfers

to foreign countries; exception. 4543. Army industrial facilities: sales of manufactured articles or services

outside Department of Defense. [§ 4531. Repealed. P.L. 103–160, $823(2), Nov. 30, 1993, 107

Stat. 1707] $ 4532. Factories and arsenals: manufacture at; abolition of

(a) The Secretary of the Army shall have supplies needed for the Department of the Army made in factories or arsenals owned by the United States, so far as those factories or arsenals can make

se supplies on an economical basis.

(b) The Secretary may abolish any United States arsenal that he considers unnecessary. (Aug. 10, 1956, ch. 1041, 70A Stat. 254.) [$$ 4533 to 4535. Repealed. P.L. 103–160, § 823(3)–(5), Nov. 30,

1993, 107 Stat. 1707) $ 4536. Equipment: post bakeries, schools, kitchens, and

mess halls Money necessary for the following items for the use of enlisted members of the Army may be spent from appropriations for regular supplies:

(1) Equipment for post bakeries.

(2) Furniture, textbooks, paper, and equipment for post schools.

(3) Tableware and mess furniture for kitchens and mess halls. (Aug. 10, 1956, ch. 1041, 70A Stat. 254.) [$$ 4537, 4538. Repealed. P.L. 103–160, § 823(6), (7), Nov. 30,

1993, 107 Stat. 1706] [8 4539. Repealed. P.L. 91-482, § 1(a), Oct. 21, 1970, 84 Stat.

1082] § 4540. Architectural and engineering services

(a) Whenever he considers that it is advantageous to the national defense and that existing facilities of the Department of the Army are inadequate, the Secretary of the Army may, by contract or otherwise, employ the architectural or engineering services of any person outside that Department for producing and delivering designs, plans, drawings, and specifications needed for any public works or utilities project of the Department.

(b) The fee for any service under this section may not be more than 6 percent of the estimated cost, as determined by the Secretary, of the project to which it applies.

(c) Sections 305, 3324, and 7204, chapter 51, and subchapters III, IV, and VI of chapter 53 of title 5 do not apply to employment under this section. (Aug. 10, 1956, ch. 1041, 70A Stat. 255; Nov. 2, 1966, P.L. 89–718, $ 28, 80 Stat. 1119; Oct. 13, 1978, P.L. 95–454, $ 703(c)(3), $801(a)(3)(I), 92 Stat. 1217, 1222; Dec. 12, 1980, P.L. 96–513, $512(16), 94 Stat. 2930.) $ 4541. Army arsenals: treatment of unutilized or underuti

lized plant-capacity costs (a) ESTIMATE OF COSTS.—The Secretary of the Army shall include in the budget justification documents submitted to Congress in support of the President's budget for a fiscal year submitted under section 1105 of title 31 an estimate of the funds to be required in that fiscal year to cover unutilized and underutilized plant-capacity costs at Army arsenals.

(b) USE OF FUNDS.-Funds appropriated to the Secretary of the Army for a fiscal year to cover unutilized and underutilized plantcapacity costs at Army arsenals shall be used in such fiscal year only for such costs.

(c) TREATMENT OF COSTS.1) The Secretary of the Army shall not include unutilized and underutilized plant-capacity costs when evaluating the bid of an Army arsenal for purposes of the arsenals contracting to provide a good or service to a Government agency.

(2) When an Army arsenal is serving as a subcontractor to a private-sector entity with respect to a good or service to be provided to a Government agency, the cost charged by the arsenal shall not include unutilized and underutilized plant-capacity costs that are funded by a direct appropriation. (d) DEFINITIONS.—In this section:

(1) The term “Army arsenal” means a Government-owned, Government-operated defense plant of the Department of the Army that manufactures weapons, weapon components, or both.

(2) The term “unutilized and underutilized plant-capacity costs” means the costs associated with operating and maintaining the facilities and equipment of an Army arsenal that the Secretary of the Army determines are required to be kept for mobilization needs, in those months in which the facilities and equipment are not used or are used only 20 percent or less of $ 4542. Technical data packages for large-caliber cannon:

available work days. (Added P.L. 106–398, § 1[342(a)), Oct. 30, 2000, 114 Stat. 1654, 1654A-64.)

prohibition on transfers to foreign countries; ex

ception (a) GENERAL RULE.–Funds appropriated to the Department of Defense may not be used

(1) to transfer to a foreign country a technical data package for a defense item being manufactured or developed in an arsenal; or

(2) to assist a foreign country in producing such a defense item.

(b) EXCEPTION.-The Secretary of the Army may use funds appropriated to the Department of Defense to transfer a technical data package, or to provide assistance, described in subsection (a) if

(1) the transfer or provision of assistance is to a friendly foreign try (as determined by the Secretary of Defense in consultation with the Secretary of State);

(2) the Secretary of the Army determines that such action

(A) would have a clear benefit to the preservation of the production base for the production of cannon at the arsenal concerned; and

(B) would not transfer technology (including production techniques) considered unique to the arsenal concerned, except as provided in subsection (e); and

(3) the Secretary of Defense enters into an agreement with the country concerned described in subsection (c) or (d).

(c) COPRODUCTION AGREEMENTS.-An agreement under this subsection shall be in the form of a Government-to-Government Memorandum of Understanding and shall include provisions that

(1) prescribe the content of the technical data package or assistance to be transferred to the foreign country participating in the agreement;

(2) require that production by the participating foreign country of the defense item to which the technical data package or assistance relates be shared with the arsenal concerned;

(3) subject to such exceptions as may be approved under subsection (f), prohibit transfer by the participating foreign country to a third party or country of

(A) any defense article, technical data package, technology, or assistance provided by the United States under the agreement; and

(B) any defense article produced by the participating foreign country under the agreement; and

(4) require the Secretary of Defense to monitor compliance with the agreement and the participating foreign country to report periodically to the Secretary of Defense concerning the agreement.

(d) COOPERATIVE PROJECT AGREEMENTS.-An agreement under this subsection is a cooperative project agreement under section 27 of the Arms Export Control Act (22 U.S.C. 2767) which includes provisions that,

(1) for development phases describe the technical data to be transferred and for the production phase prescribe the content of the technical data package or assistance to be transferred to the foreign country participating in the agreement;

(2) require that at least the United States production of the defense item to which the technical data package or assistance relates be carried out by the arsenal concerned; and

(3) require the Secretary of Defense to monitor compliance with the agreement.

(e) LICENSING FEES AND ROYALTIES.—The limitation in subsection (b)(2)(B) shall not apply if the technology (or production technique) transferred is subject to nonexclusive license and payment of any negotiated licensing fee or royalty that reflects the cost of development, implementation, and prove-out of the technology or production technique. Any negotiated license fee or royalty shall be placed in the operating fund of the arsenal concerned for the purpose of capital investment and technology development at that arsenal.

(f) TRANSFERS TO THIRD PARTIES.-A transfer described in subsection (c)(3) may be made if

(1) the defense article, technical data package, or technology to be transferred is a product of a cooperative research and development program or a cooperative project in which the United States and the participating foreign country were partners; or (2) the President

(A) complies with all requirements of section 3(d) of the Arms Export Control Act (22 U.S.C. 2753(d)) with respect to such transfer; and

(B) certifies to Congress, before the transfer, that the transfer would provide a clear benefit to the production

base of the United States for large-caliber cannon. (g) NOTICE AND REPORTS TO CONGRESS.—(1) The Secretary of the Army shall submit to Congress a notice of each agreement entered into under this section.

(2) The Secretary shall submit to Congress a semiannual report on the operation of this section and of agreements entered into under this section.

(h) ARSENAL DEFINED.-In this section, the term "arsenal” means a Government-owned, Government-operated defense plant that manufactures large-caliber cannon. (Added by identical amendments P.L. 99-500, 99–591, 99–661, $ 101(c) ($9036(b)], $ 101(c) [$ 9036(b)], $ 1203(a), Oct. 18, 1986, Oct. 30, 1986, Nov. 14, 1986, 100 Stat. 1783–107, 3341-107, 3968; amended P.L. 101–189, $ 806, Nov. 29, 1989, 103 Stat. 1489; P.L. 102–190, § 1061(a)(24), Dec. 5, 1991, 105 Stat. 1473.) $ 4543. Army industrial facilities: sales of manufactured arti

cles or services outside Department of Defense 1 (a) AUTHORITY TO SELL OUTSIDE DOD.—Regulations under section 2208(h) of this title shall authorize a working-capital fund

1 Section 141 of the National Defense Authorization Act for Fiscal Year 1998 (P.L. 105–85), as amended, provides:

Continued

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