NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1993 (P.L. 102-484, approved Oct. 23, 1992) DIVISION A-DEPARTMENT OF TITLE I-PROCUREMENT Subtitle H-Armament Retooling and Manufacturing SEC. 191. [10 U.S.C. 2501 note] SHORT TITLE. This subtitle may be cited as the "Armament Retooling and Manufacturing Support Act of 1992”. SEC. 192. [10 U.S.C. 2501 note] POLICY. It is the policy of the United States (1) to encourage, to the maximum extent practicable, nondefense commercial firms to use Government-owned, contractor-operated ammunition manufacturing facilities of the Department of the Army; (2) to use such facilities for supporting programs, projects, policies, and initiatives that promote competition in the private sector of the United States economy and that advance United States interests in the global marketplace; (3) to increase the manufacture of products inside the United States that, to a significant extent, are manufactured outside the United States; (4) to support policies and programs that provide manufacturers with incentives to assist the United States in making more efficient and economical use of Government-owned industrial plants and equipment for commercial purposes; (5) to provide, as appropriate, small businesses (including socially and economically disadvantaged small business concerns and new small businesses) with incentives that encourage those businesses to undertake manufacturing and other industrial processing activities that contribute to the prosperity of the United States; (6) to encourage the creation of jobs through increased investment in the private sector of the United States economy; (7) to foster a more efficient, cost-effective, and adaptable armaments industry in the United States; (8) to achieve, with respect to armaments manufacturing capacity, an optimum level of readiness of the defense industrial base of the United States that is consistent with the projected threats to the national security of the United States and the projected emergency requirements of the Armed Forces of the United States; and (9) to encourage facility contracting where feasible. SEC. 193. [10 U.S.C. 2501 note] ARMAMENT RETOOLING AND MANUFACTURING SUPPORT INITIATIVE. (a) AUTHORITY FOR INITIATIVE.-During fiscal years 1993 through 1998, the Secretary of the Army may carry out a program to be known as the "Armament Retooling and Manufacturing Support Initiative" (hereinafter in this subtitle referred to as the "ARMS Initiative"). (b) PURPOSES.-The purposes of the ARMS Initiative are as follows: (1) To encourage commercial firms, to the maximum extent practicable, to use Government-owned, contractor-operated ammunition manufacturing facilities of the Department of the Army for commercial purposes. (2) To increase the opportunities for small businesses (including socially and economically disadvantaged small business concerns and new small businesses) to use such facilities for those purposes. (3) To reduce the adverse effects of reduced Department of the Army spending that are experienced by States and communities by providing for such facilities to be used for commercial purposes that create jobs and promote prosperity. (4) To provide for the reemployment and retraining of skilled workers who, as a result of the closing of such facilities, are idled or underemployed. (5) To contribute to the attainment of economic stability in economically depressed regions of the United States where there are Government-owned, contractor-operated ammunition manufacturing facilities of the Department of the Army. (6) To maintain in the United States a work force having the skills in manufacturing processes that are necessary to meet industrial emergency planned requirements for national security purposes. (7) To be a model for future defense conversion initiatives. (8) To the maximum extent practicable, to allow the operation of Government-owned, contractor-operated ammunition manufacturing facilities of the Department of the Army to be rapidly responsive to the forces of free market competition. (9) Through the use of Government-owned, contractor-operated ammunition manufacturing facilities for commercial purposes, to encourage relocation of industrial production to the United States from outside the United States. (c) AVAILABILITY OF FACILITIES.-The Secretary of the Army may make the Government-owned, contractor-operated ammunition manufacturing facilities of the Department of the Army available for the purposes of the ARMS Initiative. SEC. 194. [10 U.S.C. 2501 note] FACILITIES CONTRACTS. (a) IN GENERAL.-In the case of each Government-owned, contractor-operated ammunition manufacturing facility of the Department of the Army that is made available for the ARMS Initiative, the Secretary of the Army may, by contract, authorize the facility contractor (1) to use the facility for one or more years consistent with the purposes of the ARMS Initiative; and (2) to enter into multiyear subcontracts for the commercial use of the facility consistent with such purposes. (b) FACILITY CONTRACTOR DEFINED. For purposes of subsection (a), the term "facility contractor", with respect to a Government-owned, contractor-operated ammunition manufacturing facility of the Department of the Army, means a contractor that, under a contract with the Secretary of the Army (1) is authorized to manufacture ammunition or any component of ammunition at the facility; and (2) is responsible for the overall operation and maintenance of the facility for meeting planned requirements in the event of an industrial emergency. SEC. 195. [10 U.S.C. 2501 note] ARMS INITIATIVE LOAN GUARANTEE PROGRAM. (a) PROGRAM AUTHORIZED.-Subject to subsection (b), the Secretary of the Army may carry out a loan guarantee program to encourage commercial firms to use ammunition manufacturing facilities pursuant to section 193. Under such program, the Secretary may guarantee the repayment of any loan made to a commercial firm to fund, in whole or in part, the establishment of a commercial activity under this subtitle. (b) ADVANCED BUDGET AUTHORITY.-Loan guarantees under this section may not be committed except to the extent that appropriations of budget authority to cover their costs are made in advance, as required by section 504 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661c). (c) PROGRAM ADMINISTRATION. (1) The Secretary may enter into agreements with the Administrator of the Small Business Administration or the Administrator of the Farmers Home Administration, the Administrator of the Rural Development Administration, or the head of other appropriate agencies of the Department of Agriculture, under which such Administrators may, under this section (A) process applications for loan guarantees; (C) provide any other services to the Secretary to administer the loan guarantee program. (2) Each Administrator may guarantee loans under this section to commercial firms of any size, notwithstanding any limitations on the size of applicants imposed on other loan guarantee programs that the Administrator administers. (3) To the extent practicable, each Administrator shall use the same procedures for processing loan guarantee applications under this section as the Administrator uses for processing loan guarantee applications under other loan guarantee programs that the Administrator administers. (d) LOAN LIMITS.-The maximum amount of loan principal guaranteed during a fiscal year under this section may not exceed (1) $20,000,000, with respect to any single borrower; and (2) $320,000,000 with respect to all borrowers. (e) TRANSFER OF FUNDS.-The Secretary of the Army may transfer to an Administrator providing services under subsection (c), and the Administrator may accept, such funds as may be necessary to administer the loan guarantee program under this section. (f) REPORTING REQUIREMENT.-Not later than July 1 of each year in which a guarantee issued under this section is in effect, the Secretary shall submit to the congressional defense committees a report specifying the amounts of loans guaranteed under this section during the preceding calendar year. No report is required after fiscal year 1997. SEC. 196. [10 U.S.C. 2501 note] REPORTING REQUIREMENT. Not later than July 1, 1993, the Secretary of the Army shall submit to the congressional defense committees a report on the ARMS Initiative. The report shall contain— (1) a comprehensive review of contracting of Governmentowned, contractor-operated ammunition manufacturing facilities, under the ARMS Initiative; and (2) any recommendations the Secretary may have for changes to the ARMS Initiative. SEC. 330. [10 U.S.C. 2687 note] INDEMNIFICATION OF TRANSFEREES OF CLOSING DEFENSE PROPERTY. (a) IN GENERAL. (1) Except as provided in paragraph (3) and subject to subsection (b), the Secretary of Defense shall hold harmless, defend, and indemnify in full the persons and entities described in paragraph (2) from and against any suit, claim, demand or action, liability, judgment, cost or other fee arising out of any claim for personal injury or property damage (including death, illness, or loss of or damage to property or economic loss) that results from, or is in any manner predicated upon, the release or threatened release of any hazardous substance, pollutant or contaminant, or petroleum or petroleum derivative as a result of Department of Defense activities at any military installation (or portion thereof) that is closed pursuant to a base closure law. (2) The persons and entities described in this paragraph are the following: (A) Any State (including any officer, agent, or employee of the State) that acquires ownership or control of any facility at a military installation (or any portion thereof) described in paragraph (1). (B) Any political subdivision of a State (including any officer, agent, or employee of the State) that acquires such ownership or control. (C) Any other person or entity that acquires such ownership or control. (D) Any successor, assignee, transferee, lender, or lessee of a person or entity described in subparagraphs (A) through (C). (3) To the extent the persons and entities described in paragraph (2) contributed to any such release or threatened release, paragraph (1) shall not apply. (b) CONDITIONS.-No indemnification may be afforded under this section unless the person or entity making a claim for indemnification (1) notifies the Department of Defense in writing within two years after such claim accrues or begins action within six months after the date of mailing, by certified or registered mail, of notice of final denial of the claim by the Department of Defense; (2) furnishes to the Department of Defense copies of pertinent papers the entity receives; (3) furnishes evidence or proof of any claim, loss, or damage covered by this section; and (4) provides, upon request by the Department of Defense, access to the records and personnel of the entity for purposes of defending or settling the claim or action. (c) AUTHORITY OF SECRETARY OF DEFENSE.—(1) In any case in which the Secretary of Defense determines that the Department of Defense may be required to make indemnification payments to a person under this section for any suit, claim, demand or action, liability, judgment, cost or other fee arising out of any claim for personal injury or property damage referred to in subsection (a)(1), the Secretary may settle or defend, on behalf of that person, the claim for personal injury or property damage. (2) In any case described in paragraph (1), if the person to whom the Department of Defense may be required to make indemnification payments does not allow the Secretary to settle or defend the claim, the person may not be afforded indemnification with respect to that claim under this section. (d) ACCRUAL OF ACTION.-For purposes of subsection (b)(1), the date on which a claim accrues is the date on which the plaintiff knew (or reasonably should have known) that the personal injury or property damage referred to in subsection (a) was caused or contributed to by the release or threatened release of a hazardous substance, pollutant or contaminant, or petroleum or petroleum derivative as a result of Department of Defense activities at any military installation (or portion thereof) described in subsection (a)(1). (e) RELATIONSHIP TO OTHER LAW.-Nothing in this section. shall be construed as affecting or modifying in any way section 120(h) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9620(h)). (f) DEFINITIONS.-In this section: (1) The terms "facility", "hazardous substance", "release", and "pollutant or contaminant" have the meanings given such terms under paragraphs (9), (14), (22), and (33) of section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, respectively (42 U.S.C. 9601 (9), (14), (22), and (33)). |