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U.S. Code as of:
01/19/04
Section 4541. Army arsenals: treatment of unutilized or underutilized plant-capacity costs
(a) Estimate of Costs. - The Secretary of the Army shall include
in the budget justification documents submitted to Congress in
support of the President's budget for a fiscal year submitted under
section 1105 of title 31 an estimate of the funds to be required in
that fiscal year to cover unutilized and underutilized
plant-capacity costs at Army arsenals.
(b) Use of Funds. - Funds appropriated to the Secretary of the
Army for a fiscal year to cover unutilized and underutilized
plant-capacity costs at Army arsenals shall be used in such fiscal
year only for such costs.
(c) Treatment of Costs. - (1) The Secretary of the Army shall not
include unutilized and underutilized plant-capacity costs when
evaluating the bid of an Army arsenal for purposes of the arsenal's
contracting to provide a good or service to a Government agency.
(2) When an Army arsenal is serving as a subcontractor to a
private-sector entity with respect to a good or service to be
provided to a Government agency, the cost charged by the arsenal
shall not include unutilized and underutilized plant-capacity costs
that are funded by a direct appropriation.
(d) Definitions. - In this section:
(1) The term "Army arsenal" means a Government-owned,
Government-operated defense plant of the Department of the Army
that manufactures weapons, weapon components, or both.
(2) The term "unutilized and underutilized plant-capacity
costs" means the costs associated with operating and maintaining
the facilities and equipment of an Army arsenal that the
Secretary of the Army determines are required to be kept for
mobilization needs, in those months in which the facilities and
equipment are not used or are used only 20 percent or less of
available work days.
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