2013 US Code
Title 10 - Armed Forces
Subtitle B - Army (§§ 3001 - 4842)
Part IV - SERVICE, SUPPLY, AND PROCUREMENT (§§ 4501 - 4842)
Chapter 433 - PROCUREMENT (§§ 4531 - 4544)
Section 4544 - Army industrial facilities: cooperative activities with non-Army entities
Publication Title | United States Code, 2012 Edition, Supplement 1, Title 10 - ARMED FORCES |
Category | Bills and Statutes |
Collection | United States Code |
SuDoc Class Number | Y 1.2/5: |
Contained Within | Title 10 - ARMED FORCES Subtitle B - Army PART IV - SERVICE, SUPPLY, AND PROCUREMENT CHAPTER 433 - PROCUREMENT Sec. 4544 - Army industrial facilities: cooperative activities with non-Army entities |
Contains | section 4544 |
Date | 2013 |
Laws in Effect as of Date | January 16, 2014 |
Positive Law | Yes |
Disposition | standard |
Source Credit | Added Pub. L. 108-375, div. A, title III, §353(a), Oct. 28, 2004, 118 Stat. 1859; amended Pub. L. 109-163, div. A, title III, §321, Jan. 6, 2006, 119 Stat. 3191; Pub. L. 109-364, div. A, title X, §1071(a)(29), Oct. 17, 2006, 120 Stat. 2399; Pub. L. 110-181, div. A, title III, §328(a), Jan. 28, 2008, 122 Stat. 66; Pub. L. 111-84, div. A, title III, §324(a), Oct. 28, 2009, 123 Stat. 2253; Pub. L. 112-81, div. A, title III, §323(a), Dec. 31, 2011, 125 Stat. 1362. |
Statutes at Large References | 118 Stat. 1859 119 Stat. 3191 120 Stat. 2399 122 Stat. 66 123 Stat. 2253 125 Stat. 1362 126 Stat. 1948 |
Public Law References | Public Law 108-375, Public Law 109-163, Public Law 109-364, Public Law 110-181, Public Law 111-84, Public Law 112-81, Public Law 112-239 |
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(a)
(b)
(1) The sale of articles manufactured by the facility or services performed by the facility to persons outside the Department of the Army.
(2) The performance of work by a non-Army entity at the facility.
(3) The performance of work by the facility for a non-Army entity.
(4) The sharing of work by the facility and a non-Army entity.
(5) The leasing, or use under a facilities use contract or otherwise, of the facility (including excess capacity) or equipment (including excess equipment) of the facility by a non-Army entity.
(6) The preparation and submission of joint offers by the facility and a non-Army entity for competitive procurements entered into with Federal agency.
(c)
(1) In the case of an article to be manufactured or services to be performed by the facility, the articles can be substantially manufactured, or the services can be substantially performed, by the facility without subcontracting for more than incidental performance.
(2) The activity does not interfere with performance of—
(A) work by the facility for the Department of Defense; or
(B) a military mission of the facility.
(3) The activity meets one of the following objectives:
(A) Maximized utilization of the capacity of the facility.
(B) Reduction or elimination of the cost of ownership of the facility.
(C) Reduction in the cost of manufacturing or maintaining Department of Defense products at the facility.
(D) Preservation of skills or equipment related to a core competency of the facility.
(4) The non-Army entity agrees to hold harmless and indemnify the United States from any liability or claim for damages or injury to any person or property arising out of the activity, including any damages or injury arising out of a decision by the Secretary of the Army or the Secretary of Defense to suspend or terminate an activity, or any portion thereof, during a war or national emergency or to require the facility to perform other work or provide other services on a priority basis, except—
(A) in any case of willful misconduct or gross negligence; and
(B) in the case of a claim by a purchaser of articles or services under this section that damages or injury arose from the failure of the United States to comply with quality, schedule, or cost performance requirements in the contract to carry out the activity.
(d)
(1) enter into a firm, fixed-price contract (or, if agreed to by the non-Army entity, a cost reimbursement contract) for a sale of articles or services or use of equipment or facilities;
(2) enter into a multiyear contract for a period not to exceed five years, unless a longer period is specifically authorized by law;
(3) charge the non-Army entity the amounts necessary to recover the full costs of the articles or services provided, including capital improvement costs, and equipment depreciation costs associated with providing the articles, services, equipment, or facilities;
(4) authorize the non-Army entity to use incremental funding to pay for the articles, services, or use of equipment or facilities; and
(5) accept payment-in-kind.
(e)
(f)
(g)
(h)
(i)
(1) foreign military sales and the export controls provided for in sections 30 and 38 of the Arms Export Control Act (22 U.S.C. 2770 and 2778) to activities of a cooperative arrangement entered into under subsection (a); and
(2) section 2667 of this title to leases of non-excess property in the administration of such an arrangement.
(j)
(1) The term "Army industrial facility" includes an ammunition plant, an arsenal, a depot, and a manufacturing plant.
(2) The term "non-Army entity" includes the following:
(A) A Federal agency (other than the Department of the Army).
(B) An entity in industry or commercial sales.
(C) A State or political subdivision of a State.
(D) An institution of higher education or vocational training institution.
(3) The term "incremental funding" means a series of partial payments that—
(A) are made as the work on manufacture or articles is being performed or services are being performed or equipment or facilities are used, as the case may be; and
(B) result in full payment being completed as the required work is being completed.
(4) The term "full costs", with respect to articles or services provided under a cooperative arrangement entered into under subsection (a), means the variable costs and the fixed costs that are directly related to the production of the articles or the provision of the services.
(5) The term "variable costs" means the costs that are expected to fluctuate directly with the volume of sales or services provided or the use of equipment or facilities.
(Added Pub. L. 108–375, div. A, title III, §353(a), Oct. 28, 2004, 118 Stat. 1859; amended Pub. L. 109–163, div. A, title III, §321, Jan. 6, 2006, 119 Stat. 3191; Pub. L. 109–364, div. A, title X, §1071(a)(29), Oct. 17, 2006, 120 Stat. 2399; Pub. L. 110–181, div. A, title III, §328(a), Jan. 28, 2008, 122 Stat. 66; Pub. L. 111–84, div. A, title III, §324(a), Oct. 28, 2009, 123 Stat. 2253; Pub. L. 112–81, div. A, title III, §323(a), Dec. 31, 2011, 125 Stat. 1362.)
AMENDMENTS2011—Subsec. (a). Pub. L. 112–81, §323(a)(1), struck out second sentence which read as follows: "This authority may be used to enter into not more than eight contracts or cooperative agreements in addition to the contracts and cooperative agreements in place as of the date of the enactment of the National Defense Authorization Act for Fiscal Year 2008 (Public Law 110–181)."
Subsec. (k). Pub. L. 112–81, §323(a)(2), struck out subsec. (k). Prior to amendment, text read as follows: "The authority to enter into a cooperative arrangement under subsection (a) expires September 30, 2014."
2009—Subsec. (a). Pub. L. 111–84 inserted "in addition to the contracts and cooperative agreements in place as of the date of the enactment of the National Defense Authorization Act for Fiscal Year 2008 (Public Law 110–181)" after "not more than eight contracts or cooperative agreements".
2008—Subsec. (a). Pub. L. 110–181, §328(a)(1), inserted at end "This authority may be used to enter into not more than eight contracts or cooperative agreements."
Subsec. (k). Pub. L. 110–181, §328(a)(2), substituted "2014" for "2009".
2006—Subsec. (d). Pub. L. 109–364 substituted "Arrangement" for "Arangement" in heading.
Pub. L. 109–163, §321(b)(1), substituted "subsection (f)" for "subsection (e)" in introductory provisions.
Subsecs. (e), (f). Pub. L. 109–163, §321(b)(2), (3), added subsec. (e) and redesignated former subsec. (e) as (f). Former subsec. (f) redesignated (g).
Subsec. (g). Pub. L. 109–163, §321(b)(4), substituted "subsection (f)" for "subsection (e)".
Pub. L. 109–163, §321(b)(2), redesignated subsec. (f) as (g). Former subsec. (g) redesignated (h).
Subsecs. (h), (i). Pub. L. 109–163, §321(b)(2), redesignated subsecs. (g) and (h) as (h) and (i), respectively. Former subsec. (i) redesignated (j).
Subsec. (j). Pub. L. 109–163, §321(b)(2), redesignated subsec. (i) as (j). Former subsec. (j) redesignated (k).
Pub. L. 109–163, §321(a), substituted "September 30, 2009." for "September 30, 2009, and arrangements entered into under such subsection shall terminate not later than that date."
Subsec. (k). Pub. L. 109–163, §321(b)(2), redesignated subsec. (j) as (k).
REPORTSPub. L. 110–181, div. A, title III, §328(b), Jan. 28, 2008, 122 Stat. 66, as amended by Pub. L. 111–84, div. A, title III, §324(b), Oct. 28, 2009, 123 Stat. 2253; Pub. L. 112–81, div. A, title III, §323(b), Dec. 31, 2011, 125 Stat. 1362; Pub. L. 112–239, div. A, title X, §1076(a)(2), Jan. 2, 2013, 126 Stat. 1948, provided that:
"(1)
"(2)
"(A) assessing the effect of the use of such authority on the rates charged by each Army industrial facility when bidding on contracts for the Army or for a Defense agency and providing recommendations to improve the ability of each category of Army industrial facility (as defined in section 4544(j) of title 10, United States Code) to compete for such contracts;
"(B) assessing the benefit to the Federal Government of using such authority;
"(C) assessing the impact of the use of such authority on the availability of facilities needed by the Army and on the private sector; and
"(D) describing the steps taken to comply with the requirements under section 4544(g) of title 10, United States Code."
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