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”.
Inclusion of Certain Industrial Plants in the Armament Retooling and Manufacturing Support Initiative
Pub. L. 114–328, div. A, title III, § 323, Dec. 23, 2016, 130 Stat. 2076, provided that:
“During the five-year period beginning on the date of the enactment of this Act [Dec. 23, 2016
], the Secretary of Defense may treat a Government-owned, contractor-operated industrial plant of the Department of Defense as an eligible facility under section 4551(2) of title 10
, United States Code.”
Consideration of Army Arsenals’ Capabilities To Fulfill Manufacturing Requirements
Pub. L. 113–66, div. A, title III, § 323, Dec. 26, 2013, 127 Stat. 733, provided that:
“(a)Consideration of Capability of Arsenals.—
When undertaking a make-or-buy analysis, a program executive officer
or program manager of a military service or Defense Agency
shall consider the capability of arsenals owned by the United States to fulfill a manufacturing requirement.
“(b)Notification of Solicitations.—
Not later than 180 days after the date of the enactment of this Act [Dec. 26, 2013], the Secretary of Defense shall establish and begin implementation of a system for ensuring that the arsenals owned by the United States are notified of any solicitation that fulfills a manufacturing requirement for which there is no or limited domestic commercial source and which may be appropriate for manufacturing within an arsenal owned by the United States.”
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; Pub. L. 114–92, div. A, title X, § 1073(j), Nov. 25, 2015, 129 Stat. 996, 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:
To provide for the utilization of the existing skilled workforce at the Army
manufacturing arsenals by commercial firms.
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.
To encourage commercial firms, to the maximum extent practicable, to use these Army
arsenals for commercial purposes.
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.
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.
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
To the maximum extent practicable, to allow the operation of these Army
arsenals to be rapidly responsive to the forces of free market competition.
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
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:
Recapitalization of plant and equipment.
Promotion of commercial business ventures.
Other activities approved by the Secretary
of the Army.
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.
(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 4543 of title 10, United States Code—
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
to enter into subcontracts
for the commercial use of the arsenal consistent with such purposes.
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 4543 of title 10, United States Code—
to use the facility during the period of the program in a manner consistent with the purposes of the program; and
to enter into subcontracts
for the commercial use of the facility consistent with such purposes.
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.
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 U.S.C. 661c
“(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—
process applications for loan guarantees;
guarantee repayment of loans; and
provide any other services to the Secretary
of the Army to administer this subsection.
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—
$20,000,000, with respect to any single borrower; and
$320,000,000 with respect to all borrowers.
“(f)Transfer of Funds.—
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.”