§ 4544. Army industrial facilities: cooperative activities with non-Army entities
(a)
Cooperative Arrangements Authorized.—
A working-capital funded Army industrial facility may enter into a contract or other cooperative arrangement with a non-Army entity to carry out with the non-Army entity a military or commercial project described in subsection (b), subject to the conditions prescribed in subsection (c). 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).
(b)
Authorized Activities.—
A cooperative arrangement entered into by an Army industrial facility under subsection (a) may provide for any of the following activities:
(1)
The sale of articles manufactured by the facility or services performed by the facility to persons outside the Department of the Army.
(c)
Conditions.—
An activity authorized by subsection (b) may be carried out at an Army industrial facility under a cooperative arrangement entered into under subsection (a) only under the following conditions:
(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.
(3)
The activity meets one of the following objectives:
(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—
(d)
Arrangement Methods and Authorities.—
To establish a cooperative arrangement under subsection (a) with a non-Army entity, the approval authority described in subsection (f) for an Army industrial facility may—
(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;
(e)
Proceeds Credited to Working Capital Fund.—
The proceeds received from the sale of an article or service pursuant to a contract or other cooperative arrangement under this section shall be credited to the working capital fund that incurs the cost of manufacturing the article or performing the service.
(f)
Approval Authority.—
The authority of an Army industrial facility to enter into a cooperative arrangement under subsection (a) shall be exercised at the level of the commander of the major subordinate command of the Army that has responsibility for the facility. The commander may approve such an arrangement on a case-by-case basis or a class basis.
(g)
Commercial Sales.—
Except in the case of work performed for the Department of Defense, for a contract of the Department of Defense, for foreign military sales, or for authorized foreign direct commercial sales (defense articles or defense services sold to a foreign government or international organization under export controls), a sale of articles or services may be made under this section only if the approval authority described in subsection (f) determines that the articles or services are not available from a commercial source located in the United States in the required quantity or quality, or within the time required.
(h)
Exclusion From Depot-Level Maintenance and Repair Percentage Limitation.—
Amounts expended for the performance of a depot-level maintenance and repair workload by non-Federal Government personnel at an Army industrial facility shall not be counted for purposes of applying the percentage limitation in section
2466
(a) of this title if the personnel are provided by a non-Army entity pursuant to a cooperative arrangement entered into under subsection (a).
(i)
Relationship to Other Laws.—
Nothing in this section shall be construed to affect the application of—
(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)
Definitions.—
In this section:
(1)
The term “Army industrial facility” includes an ammunition plant, an arsenal, a depot, and a manufacturing plant.
(3)
The term “incremental funding” means a series of partial payments that—
(k)
Expiration of Authority.—
The authority to enter into a cooperative arrangement under subsection (a) expires September 30, 2014.