
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 107-107 Section 832(b)(1)]
[Document affected by Public Law 107-107 Section 832(b)(2)]
[CITE: 10USC2241]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
          CHAPTER 134--MISCELLANEOUS ADMINISTRATIVE PROVISIONS
 
 SUBCHAPTER I--MISCELLANEOUS AUTHORITIES, PROHIBITIONS, AND LIMITATIONS 
                    ON THE USE OF APPROPRIATED FUNDS
 
Sec. 2241. Availability of appropriations for certain purposes

    (a) Operation and Maintenance Appropriations.--Amounts appropriated 
to the Department of Defense for operation and maintenance of the active 
forces may be used for the following purposes:
        (1) Morale, welfare, and recreation.
        (2) Modification of personal property.
        (3) Design of vessels.
        (4) Industrial mobilization.
        (5) Military communications facilities on merchant vessels.
        (6) Acquisition of services, special clothing, supplies, and 
    equipment.
        (7) Expenses for the Reserve Officers' Training Corps and other 
    units at educational institutions.

    (b) Necessary Expenses.--Amounts appropriated to the Department of 
Defense may be used for all necessary expenses, at the seat of the 
Government or elsewhere, in connection with communication and other 
services and supplies that may be necessary for the national defense.

(Added Pub. L. 100-370, Sec. 1(e)(1), July 19, 1988, 102 Stat. 844.)


                      Historical and Revision Notes

    Subsection (a) of this section and sections 2253(b) and 2661(a) of 
this title are based on Pub. L. 98-212, title VII, Sec. 735, Dec. 8, 
1983, 97 Stat. 1444, as amended by Pub. L. 98-525, title XIV, 
Secs. 1403(a)(2), 1404, Oct. 19, 1984, 98 Stat. 2621.
    In two instances, the source section for provisions to be codified 
provides that defense appropriations may be used for ``welfare and 
recreation'' or ``welfare and recreational'' purposes. (Section 735 of 
Public Law 98-212 and section 8006(b) of Public Law 99-190, to be 
codified as 10 U.S.C. 2241(a)(1) and 2490(2), respectively). The 
committee added the term ``morale'' in both of these two instances to 
conform to the usual ``MWR'' usage for morale, welfare, and recreation 
activities.
    Subsection (b) of this section and sections 2242(1), (4) and 
2253(a)(1) of this title are based on Pub. L. 98-212, title VII, 
Sec. 705, Dec. 8, 1983, 97 Stat. 1437.
    Section 705 of Public Law 98-212, to be codified as 10 U.S.C. 
2241(b), provides that defense appropriations may be used in connection 
with certain services and supplies ``as may be necessary to carry out 
the purposes of this Act''. The reference to ``this Act'' means Public 
Law 98-212, the FY84 Defense Appropriations Act. Language similar to 
section 705 had been enacted as part of the annual defense appropriation 
Act for many years. In the FY84 Act, section 705 was enacted as a 
permanent provision. The quoted phrase above was not, however, revised 
from the traditional annual wording as the provision had appeared in 
annual appropriations Acts in order to give it effect beyond the fiscal 
year concerned. Since the general purpose of a defense appropriations 
Act is to provide funds for national defense purposes, the committee, in 
codifying this provision, revised the quoted phrase so as to read ``that 
may be necessary for the national defense''. No change in meaning is 
intended.


   Funds Prohibited for Contracts With Persons Convicted of Unlawful 
          Manufacture or Sale of Congressional Medals of Honor

    Pub. L. 105-262, title VIII, Sec. 8118, Oct. 17, 1998, 112 Stat. 
2331, provided that: ``During the current fiscal year and hereafter, no 
funds appropriated or otherwise available to the Department of Defense 
may be used to award a contract to, extend a contract with, or approve 
the award of a subcontract to any person who within the preceding 15 
years has been convicted under section 704 of title 18, United States 
Code, of the unlawful manufacture or sale of the Congressional Medal of 
Honor.''


Use of Funds for Modification of Retired Aircraft, Weapon, Ship or Other 
                            Item of Equipment

    Pub. L. 105-56, title VIII, Sec. 8053, Oct. 8, 1997, 111 Stat. 1232, 
provided that: ``None of the funds provided in this Act [see Tables for 
classification] and hereafter shall be available for use by a military 
department to modify an aircraft, weapon, ship or other item of 
equipment, that the military department concerned plans to retire or 
otherwise dispose of within 5 years after completion of the 
modification: Provided, That this prohibition shall not apply to safety 
modifications: Provided further, That this prohibition may be waived by 
the Secretary of a military department if the Secretary determines it is 
in the best national security interest of the United States to provide 
such waiver and so notifies the congressional defense committees in 
writing.''
    Similar provisions were contained in the following prior 
appropriation acts:
    Pub. L. 104-208, div. A, title I, Sec. 101(b) [title VIII, 
Sec. 8055], Sept. 30, 1996, 110 Stat. 3009-71, 3009-99.
    Pub. L. 104-61, title VIII, Sec. 8068, Dec. 1, 1995, 109 Stat. 664.
    Pub. L. 103-335, title VIII, Sec. 8079, Sept. 30, 1994, 108 Stat. 
2636.
    Pub. L. 103-139, title VIII, Sec. 8098, Nov. 11, 1993, 107 Stat. 
1462.
    Pub. L. 102-396, title IX, Sec. 9034, Oct. 6, 1992, 106 Stat. 1908.
    Pub. L. 102-172, title VIII, Sec. 8034, Nov. 26, 1991, 105 Stat. 
1178.
    Pub. L. 101-511, title VIII, Sec. 8035, Nov. 5, 1990, 104 Stat. 
1882.


   Demonstration Project for Uniform Funding of Morale, Welfare, and 
         Recreation Activities at Certain Military Installations

    Pub. L. 104-106, div. A, title III, Sec. 335, Feb. 10, 1996, 110 
Stat. 262, provided that:
    ``(a) Demonstration Project Required.--(1) The Secretary of Defense 
shall conduct a demonstration project to evaluate the feasibility of 
using only nonappropriated funds to support morale, welfare, and 
recreation programs at military installations in order to facilitate the 
procurement of property and services for those programs and the 
management of employees used to carry out those programs.
    ``(2) Under the demonstration project--
        ``(A) procurements of property and services for programs 
    referred to in paragraph (1) may be carried out in accordance with 
    laws and regulations applicable to procurements paid for with 
    nonappropriated funds; and
        ``(B) appropriated funds available for such programs may be 
    expended in accordance with laws applicable to expenditures of 
    nonappropriated funds as if the appropriated funds were 
    nonappropriated funds.
    ``(3) The Secretary shall prescribe regulations to carry out 
paragraph (2). The regulations shall provide for financial management 
and accounting of appropriated funds expended in accordance with 
subparagraph (B) of such paragraph.
    ``(b) Covered Military Installations.--The Secretary shall select 
not less than three and not more than six military installations to 
participate in the demonstration project.
    ``(c) Period of Demonstration Project.--The demonstration project 
shall terminate not later than September 30, 1998.
    ``(d) Effect on Employees.--For the purpose of testing fiscal 
accounting procedures, the Secretary may convert, for the duration of 
the demonstration project, the status of an employee who carries out a 
program referred to in subsection (a)(1) from the status of an employee 
paid by appropriated funds to the status of a nonappropriated fund 
instrumentality employee, except that such conversion may occur only--
        ``(1) if the employee whose status is to be converted--
            ``(A) is fully informed of the effects of such conversion on 
        the terms and conditions of the employment of that employee for 
        purposes of title 5, United States Code, and on the benefits 
        provided to that employee under such title; and
            ``(B) consents to such conversion; or
        ``(2) in a manner which does not affect such terms and 
    conditions of employment or such benefits.
    ``(e) Reports.--(1) Not later than six months after the date of the 
enactment of this Act [Feb. 10, 1996], the Secretary shall submit to 
Congress an interim report on the implementation of this section.
    ``(2) Not later than December 31, 1998, the Secretary shall submit 
to Congress a final report on the results of the demonstration project. 
The report shall include a comparison of--
        ``(A) the cost incurred under the demonstration project in using 
    employees paid by appropriated funds together with nonappropriated 
    fund instrumentality employees to carry out the programs referred to 
    in subsection (a)(1); and
        ``(B) an estimate of the cost that would have been incurred if 
    only nonappropriated fund instrumentality employees had been used to 
    carry out such programs.''


                       Interagency Courier Service

    Pub. L. 103-335, title VIII, Sec. 8119, Sept. 30, 1994, 108 Stat. 
2649, provided that: ``During the current fiscal year and hereafter, the 
Department of State and the Department of Defense are authorized to 
provide interagency courier service on a non-reimbursable basis.''


       Restrictions on Procurements From Outside of United States

    Pub. L. 104-208, div. A, title I, Sec. 101(b) [title VIII, 
Sec. 8109], Sept. 30, 1996, 110 Stat. 3009-71, 3009-111, provided that: 
``In applying section 9005 of the Department of Defense Appropriations 
Act, 1993, Public Law 102-396 (10 U.S.C. 2241 note), during the current 
fiscal year and thereafter--
        ``(1) the term `synthetic fabric and coated synthetic fabric' 
    shall be deemed to include all textile fibers and yarns that are for 
    use in such fabrics; and
        ``(2) such section shall be treated, notwithstanding section 34 
    of Public Law 93-400 (41 U.S.C. 430), as being applicable to 
    contracts and subcontracts for the procurement of commercial items 
    that are articles or items, specialty metals, or tools covered by 
    that section 9005.''
    Pub. L. 102-396, title IX, Sec. 9005, Oct. 6, 1992, 106 Stat. 1900, 
as amended by Pub. L. 103-139, title VIII, Sec. 8005, Nov. 11, 1993, 107 
Stat. 1438; Pub. L. 103-355, title IV, Sec. 4401(e), Oct. 13, 1994, 108 
Stat. 3348, provided that: ``During the current fiscal year and 
hereafter, no part of any appropriation or any other funds available to 
the Department of Defense, except for purchases for amounts not greater 
than the simplified acquisition threshold covered by section 2304(g) of 
title 10, United States Code, shall be available for the procurement of 
any article or item of food, clothing, tents, tarpaulins, covers, cotton 
and other natural fiber products, woven silk or woven silk blends, spun 
silk yarn for cartridge cloth, synthetic fabric or coated synthetic 
fabric, canvas products, or wool (whether in the form of fiber or yarn 
or contained in fabrics, materials, or manufactured articles), or any 
item of individual equipment manufactured from or containing such 
fibers, yarns, fabrics, or materials, or specialty metals including 
stainless steel flatware, or hand or measuring tools, not grown, 
reprocessed, reused, or produced in the United States or its 
possessions, except to the extent that the Secretary of the Department 
concerned shall determine that satisfactory quality and sufficient 
quantity of any articles or items of food, individual equipment, tents, 
tarpaulins, covers, or clothing or any form of cotton or other natural 
fiber products, woven silk and woven silk blends, spun silk yarn for 
cartridge cloth, synthetic fabric or coated synthetic fabric, canvas 
products, wool, or specialty metals including stainless steel flatware, 
grown, reprocessed, reused, or produced in the United States or its 
possessions cannot be procured as and when needed at United States 
market prices and except procurements outside the United States in 
support of combat operations, procurements by vessels in foreign waters, 
and emergency procurements or procurements of perishable foods by 
establishments located outside the United States for the personnel 
attached thereto: Provided, That nothing herein shall preclude the 
procurement of specialty metals or chemical warfare protective clothing 
produced outside the United States or its possessions when such 
procurement is necessary to comply with agreements with foreign 
governments requiring the United States to purchase supplies from 
foreign sources for the purposes of offsetting sales made by the United 
States Government or United States firms under approved programs serving 
defense requirements or where such procurement is necessary in 
furtherance of agreements with foreign governments in which both 
governments agree to remove barriers to purchases of supplies produced 
in the other country or services performed by sources of the other 
country, so long as such agreements with foreign governments comply, 
where applicable, with the requirements of section 36 of the Arms Export 
Control Act [22 U.S.C. 2776] and with section 2457 of title 10, United 
States Code: Provided further, That nothing herein shall preclude the 
procurement of foods manufactured or processed in the United States or 
its possessions.''


    Prohibition on Use of Funds To Purchase Dogs or Cats for Medical 
                                Training

    Pub. L. 101-511, title VIII, Sec. 8019, Nov. 5, 1990, 104 Stat. 
1879, provided that: ``None of the funds appropriated by this Act [see 
Tables for classification] or hereafter shall be used to purchase dogs 
or cats or otherwise fund the use of dogs or cats for the purpose of 
training Department of Defense students or other personnel in surgical 
or other medical treatment of wounds produced by any type of weapon: 
Provided, That the standards of such training with respect to the 
treatment of animals shall adhere to the Federal Animal Welfare Law and 
to those prevailing in the civilian medical community.''


 Restoration, Cancellation, or Closure of Certain Department of Defense 
                     Appropriation Account Balances

    Pub. L. 101-511, title VIII, Sec. 8080, Nov. 5, 1990, 104 Stat. 
1893, provided that:
    ``(a) Upon the date of enactment of this Act [Nov. 5, 1990], the 
balances of any unobligated amount of an appropriation of the Department 
of Defense which has been withdrawn under the provisions of section 
1552(a)(2) of title 31, United States Code, the obligated balance of 
which has not been transferred pursuant to the provisions of section 
1552(a)(1) of title 31, United States Code, shall be restored to that 
appropriation. Thirty days following enactment of this Act all balances 
of unobligated funds withdrawn from any account of the Department of 
Defense under the provisions of section 1552(a)(2) of title 31, United 
States Code, prior to the enactment of this Act, (other than those 
restored pursuant to the provisions of this subsection) are cancelled.
    ``(b) During the current fiscal year and thereafter--
        ``(1) on the 3rd September 30th after enactment of this section 
    [Nov. 5, 1990], all obligated balances transferred under section 
    1552(a)(1) of title 31, United States Code;
        ``(2) on September 30th of the 5th fiscal year after the period 
    of availability of an appropriation account of the Department of 
    Defense available for obligation for a definite period ends or has 
    ended, with respect to those accounts which, upon the date of 
    enactment of this section have expired for obligation but whose 
    obligated balances have not been transferred pursuant to the 
    provisions of section 1552(a)(1) of title 31, United States Code; 
    and
        ``(3) with respect to any appropriation account made available 
    to the Department of Defense for an indefinite period against which 
    no obligations have been made for two consecutive years and upon a 
    determination by the Secretary of Defense or the President that the 
    purposes of such indefinite appropriation have been carried out,
any remaining obligated or unobligated balance of such accounts are 
closed and thereafter shall not be available for obligation or 
expenditure for any purpose: Provided, That collections authorized to be 
credited to an account which were not credited to the account before it 
was closed shall be deposited in the Treasury as miscellaneous receipts: 
Provided further, That, without prior action by the Comptroller General 
but without relieving the Comptroller General of the duty to make 
decisions under any law or to settle claims and accounts, when an 
account is closed (including accounts covered by subsection (a) of this 
section) and currently applicable appropriations of the Department of 
Defense are not chargeable, obligations and adjustments to obligations 
that would have been chargeable to an account prior to closing, may be 
chargeable to currently applicable appropriations of the Department of 
Defense available for the same purpose in amounts equal to one percent 
of the total appropriation for the current account or the amount of the 
original appropriation, whichever is less: Provided further, That after 
the end of the period of availability of an appropriation account 
available for a definite period and before closing of that account under 
this section such account shall be available for recording, adjusting, 
and liquidating obligations properly chargeable to such account in 
amounts not to exceed the unobligated expired balances of such 
appropriation: Provided further, That with respect to a change to a 
contract under which the contractor is required to perform additional 
work, other than adjustments to pay claims or increases under an 
escalation clause (hereinafter referred to as a contract change), if 
such a charge for such a contract change with respect to a program, 
project or activity would cause the total amount of such obligations to 
exceed $4,000,000 in any single fiscal year for a program, project, or 
activity, the obligation may only be made if the obligation is approved 
by the Secretary of Defense or, if such a change would cause the total 
amount of such obligations to exceed $25,000,000 in any single fiscal 
year for a program, project or activity, the obligation may be made only 
after 30 days have elapsed after the Secretary of Defense submits to the 
Committees on Appropriations and Armed Services of the Senate and the 
House of Representatives a notice of the intention to obligate such 
funds, together with the legal basis and the policy reasons for making 
such an obligation.
    ``(c) The provisions of this section shall apply to any 
appropriation account now or hereafter made unless the appropriation Act 
for that account specifically provides for an extension of the 
availability of such account and provides an exception to the five year 
period of availability for recording, adjusting and liquidating 
obligations properly chargeable to that account.''


                     Availability of Appropriations

    The following general provisions, that had been repeated as fiscal 
year provisions in prior appropriation acts, were enacted as permanent 
law in the Department of Defense Appropriations Act, 1990, Pub. L. 101-
165, title IX, Secs. 9002, 9006, 9020, 9025, 9030, 9079, Nov. 21, 1989, 
103 Stat. 1129, 1130, 1133-1135, 1147:
    ``Sec. 9002. [Authorized Secretaries of Defense, Army, Navy, and Air 
Force to procure services in accordance with section 3109 of Title 5, 
Government Organization and Employees, under regulations prescribed by 
the Secretary of Defense, and to pay in connection therewith travel 
expenses of individuals while traveling from their homes or places of 
business to official duty stations and return; and was repealed and 
restated in section 129b of this title by Pub. L. 101-510, div. A, title 
XIV, Sec. 1481(b)(1), (3), Nov. 5, 1990, 104 Stat. 1704, 1705.]
    ``Sec. 9006. [Provided that no appropriations available to the 
Department of Defense could be used for operating aircraft under the 
jurisdiction of the armed forces for the purpose of proficiency flying, 
as defined in Department of Defense Directive 1340.4, except in 
accordance with regulations prescribed by the Secretary of Defense; and 
was repealed and restated in section 2245 of this title by Pub. L. 101-
510, div. A, title XIV, Sec. 1481(e)(1), (3), Nov. 5, 1990, 104 Stat. 
1706.]
    ``Sec. 9020. [Provided that no funds available to the Department of 
Defense could be used to provide medical care in the United States on an 
inpatient basis to foreign military and diplomatic personnel or their 
dependents unless the Department is reimbursed for the costs of 
providing such care; and was repealed and restated in section 2549 of 
this title by Pub. L. 101-510, div. A, title XIV, Sec. 1481(f)(1), (3), 
Nov. 5, 1990, 104 Stat. 1707.]
    ``Sec. 9025. [Provided that no funds available to the Department of 
Defense could be used to lease to non-Federal agencies in the United 
States aircraft or vehicles owned or operated by the Department when 
suitable aircraft or vehicles are commercially available in the private 
sector; and was repealed and restated in section 2550 of this title by 
Pub. L. 101-510, div. A, title XIV, Sec. 1481(g)(1), (4), Nov. 5, 1990, 
104 Stat. 1707.]
    ``Sec. 9030. [Provided that funds available to the Department of 
Defense could be used by the Department for helicopters and motorized 
equipment at Defense installations for removal of feral burros and 
horses; and was repealed and restated in section 2678 of this title by 
Pub. L. 101-510, div. A, title XIV, Sec. 1481(h)(1), (3), Nov. 5, 1990, 
104 Stat. 1708.]
    ``Sec. 9079. None of the funds appropriated by this Act or hereafter 
shall be obligated for the second career training program authorized by 
Public Law 96-347 [amending sections 2109, 3307, 3381 to 3385, and 8335 
of Title 5, Government Organization and Employees].''
    The following general provision, that had been repeated as fiscal 
year provision in prior appropriation acts, was enacted as permanent law 
in the Department of Defense Appropriations Act, 1989, Pub. L. 100-463, 
title VIII, Sec. 8098, Oct. 1, 1988, 102 Stat. 2270-35, which provided 
that appropriations available to the Department of Defense for operation 
and maintenance could be used to pay claims authorized by law to be paid 
by the Department (except for civil functions), was repealed and 
restated in section 2732 of this title by Pub. L. 101-510, div. A, title 
XIV, Sec. 1481(j)(1), (3), Nov. 5, 1990, 104 Stat. 1708, 1709.
