(Added Pub. L. 106–398, § 1 [[div. A], title III, § 344(a)(1)], Oct. 30, 2000, 114 Stat. 1654, 1654A–67; amended Pub. L. 109–163, div. A, title III, § 323(a),Jan. 6, 2006, 119 Stat. 3193.)
2006—Par. (2). Pub. L. 109–163
, § 323(a), inserted “, or a Government-owned, contractor-operated depot for the storage, maintenance, renovation, or demilitarization of ammunition,” after “manufacturing facility”.
Arsenal Support Program Initiative
Pub. L. 106–398
, § 1 [[div. A], title III, § 343], Oct. 30, 2000, 114 Stat. 1654
, 1654A–65, as amended by Pub. L. 107–314
, div. A, title III, § 362,Dec. 2, 2002, 116 Stat. 2519
; Pub. L. 108–375
, div. A, title III, § 342,Oct. 28, 2004, 118 Stat. 1857
; Pub. L. 110–181
, div. A, title III, § 341,Jan. 28, 2008, 122 Stat. 69
; Pub. L. 111–84
, div. A, title III, § 354,Oct. 28, 2009, 123 Stat. 2264
; Pub. L. 111–383
, div. A, title III, § 342,Jan. 7, 2011, 124 Stat. 4190
, provided that:
“(a) Demonstration Program Required.—To help maintain the viability of the Army manufacturing arsenals and the unique capabilities of these arsenals to support the national security interests of the United States, the Secretary of the Army shall carry out a demonstration program under this section during fiscal years 2001 through 2012 at each manufacturing arsenal of the Department of the Army.
“(b) Purposes of Demonstration Program.—The purposes of the demonstration program are as follows:
“(1) To provide for the utilization of the existing skilled workforce at the Army manufacturing arsenals by commercial firms.
“(2) To provide for the reemployment and retraining of skilled workers who, as a result of declining workload and reduced Army spending on arsenal production requirements at these Army arsenals, are idled or underemployed.
“(3) To encourage commercial firms, to the maximum extent practicable, to use these Army arsenals for commercial purposes.
“(4) To increase the opportunities for small businesses (including socially and economically disadvantaged small business concerns and new small businesses) to use these Army arsenals for those purposes.
“(5) 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.
“(6) To demonstrate innovative business practices, to support Department of Defense acquisition reform, and to serve as both a model and a laboratory for future defense conversion initiatives of the Department of Defense.
“(7) To the maximum extent practicable, to allow the operation of these Army arsenals to be rapidly responsive to the forces of free market competition.
“(8) To reduce or eliminate the cost of Government ownership of these Army arsenals, including the costs of operations and maintenance, the costs of environmental remediation, and other costs.
“(9) To reduce the cost of products of the Department of Defense produced at these Army arsenals.
“(10) To leverage private investment at these Army arsenals through long-term facility use contracts, property management contracts, leases, or other agreements that support and advance the demonstration program for the following activities:
“(A) Recapitalization of plant and equipment.
“(B) Environmental remediation.
“(C) Promotion of commercial business ventures.
“(D) Other activities approved by the Secretary of the Army.
“(11) To foster cooperation between the Department of the Army, property managers, commercial interests, and State and local agencies in the implementation of sustainable development strategies and investment in these Army arsenals.
“(c) Contract Authority.—(1) In the case of each Army manufacturing arsenal, the Secretary of the Army may enter into contracts with commercial firms to authorize the contractors, consistent with section
, United States Code—
“(A) to use the arsenal, or a portion of the arsenal, and the skilled workforce at the arsenal to manufacture weapons, weapon components, or related products consistent with the purposes of the program; and
“(B) to enter into subcontracts for the commercial use of the arsenal consistent with such purposes.
“(2) A contract under paragraph (1) shall require the contractor to contribute toward the operation and maintenance of the Army manufacturing arsenal covered by the contract.
“(3) In the event an Army manufacturing arsenal is converted to contractor operation, the Secretary may enter into a contract with the contractor to authorize the contractor, consistent with section
, United States Code—
“(A) to use the facility during the period of the program in a manner consistent with the purposes of the program; and
“(B) to enter into subcontracts for the commercial use of the facility consistent with such purposes.
“(d) Loan Guarantees.—(1) Subject to paragraph (2), the Secretary of the Army 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 at an Army manufacturing arsenal under this section.
“(2) Loan guarantees under this subsection 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
“(3) The Secretary of the Army 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 subsection—
“(A) process applications for loan guarantees;
“(B) guarantee repayment of loans; and
“(C) provide any other services to the Secretary of the Army to administer this subsection.
“(4) An Administrator referred to in paragraph (3) 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. To the extent practicable, each Administrator shall use the same procedures for processing loan guarantee applications under this subsection as the Administrator uses for processing loan guarantee applications under other loan guarantee programs that the Administrator administers.
“(e) Loan Limits.—The maximum amount of loan principal guaranteed during a fiscal year under subsection (d) may not exceed—
“(1) $20,000,000, with respect to any single borrower; and
“(2) $320,000,000 with respect to all borrowers.
“(f) Transfer of Funds.—The Secretary of the Army may transfer to an Administrator providing services under subsection (d), and the Administrator may accept, such funds as may be necessary to administer loan guarantees under such subsection.
“(g) Reporting Requirements.—(1) Not later than July 1 of each year in which a guarantee issued under subsection (d) is in effect, the Secretary of the Army shall submit to Congress a report specifying the amounts of loans guaranteed under such subsection during the preceding calendar year. No report is required after fiscal year 2012.
“(2) Not later than July 1, 2007, the Secretary of the Army shall submit to the congressional defense committees [Committees on Armed Services and Appropriations of the Senate and the House of Representatives] a report on the results of the demonstration program since its implementation, including the Secretary’s views regarding the benefits of the program for Army manufacturing arsenals and the Department of the Army and the success of the program in achieving the purposes specified in subsection (b). The report shall contain a comprehensive review of contracting at the Army manufacturing arsenals covered by the program and such recommendations as the Secretary considers appropriate regarding changes to the program.”