
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 341]
[CITE: 10USC2466]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
   CHAPTER 146--CONTRACTING FOR PERFORMANCE OF CIVILIAN COMMERCIAL OR 
                        INDUSTRIAL TYPE FUNCTIONS
 
Sec. 2466. Limitations on the performance of depot-level 
        maintenance of materiel
        
    (a) Percentage Limitation.--Not more than 50 percent of the funds 
made available in a fiscal year to a military department or a Defense 
Agency for depot-level maintenance and repair workload may be used to 
contract for the performance by non-Federal Government personnel of such 
workload for the military department or the Defense Agency. Any such 
funds that are not used for such a contract shall be used for the 
performance of depot-level maintenance and repair workload by employees 
of the Department of Defense.
    [(b) Renumbered Sec. 2472(a)]
    (c) Waiver of Limitation.--The Secretary of the military department 
concerned and, with respect to a Defense Agency, the Secretary of 
Defense may waive the applicability of subsection (a) for a fiscal year, 
to a particular workload, or to a particular depot-level activity if the 
Secretary determines that the waiver is necessary for reasons of 
national security and notifies Congress regarding the reasons for the 
waiver.
    (d) Exception.--Subsection (a) shall not apply with respect to the 
Sacramento Army Depot, Sacramento, California.
    (e) Annual Reports.--(1) Not later than February 1 of each year, the 
Secretary of Defense shall submit to Congress a report identifying, for 
each of the armed forces (other than the Coast Guard) and each Defense 
Agency, the percentage of the funds referred to in subsection (a) that 
were expended during the preceding two fiscal years for performance of 
depot-level maintenance and repair workloads by the public and private 
sectors, as required by this section.
    (2) Not later than April 1 of each year, the Secretary of Defense 
shall submit to Congress a report identifying, for each of the armed 
forces (other than the Coast Guard) and each Defense Agency, the 
percentage of the funds referred to in subsection (a) that are projected 
to be expended during each of the next five fiscal years for performance 
of depot-level maintenance and repair workloads by the public and 
private sectors, as required by this section.
    (3) Not later than 60 days after the date on which the Secretary 
submits a report under this subsection, the Comptroller General shall 
submit to Congress the Comptroller General's views on whether--
        (A) in the case of a report under paragraph (1), the Department 
    of Defense has complied with the requirements of subsection (a) for 
    the fiscal years covered by the report; and
        (B) in the case of a report under paragraph (2), the expenditure 
    projections for future fiscal years are reasonable.

(Added Pub. L. 100-456, div. A, title III, Sec. 326(a), Sept. 29, 1988, 
102 Stat. 1955; amended Pub. L. 101-189, div. A, title III, Sec. 313, 
Nov. 29, 1989, 103 Stat. 1412; Pub. L. 102-190, div. A, title III, 
Sec. 314(a)(1), Dec. 5, 1991, 105 Stat. 1336; Pub. L. 102-484, div. A, 
title III, Sec. 352(a)-(c), Oct. 23, 1992, 106 Stat. 2378; Pub. L. 103-
337, div. A, title III, Sec. 332, Oct. 5, 1994, 108 Stat. 2715; Pub. L. 
104-106, div. A, title III, Secs. 311(f)(1), 312(b), Feb. 10, 1996, 110 
Stat. 248, 250; Pub. L. 105-85, div. A, title III, Secs. 357, 358, 363, 
Nov. 18, 1997, 111 Stat. 1695, 1702; Pub. L. 106-65, div. A, title III, 
Sec. 333, Oct. 5, 1999, 113 Stat. 567.)


                               Amendments

    1999--Subsec. (e). Pub. L. 106-65 amended heading and text of 
subsec. (e) generally. Text read as follows:
    ``(1) Not later than February 1 of each year, the Secretary of 
Defense shall submit to Congress a report identifying, for each military 
department and Defense Agency, the percentage of the funds referred to 
in subsection (a) that were expended during the preceding fiscal year 
for performance of depot-level maintenance and repair workloads by the 
public and private sectors as required by section 2466 of this title.
    ``(2) Not later than 90 days after the date on which the Secretary 
submits the annual report under paragraph (1), the Comptroller General 
shall submit to Congress the Comptroller General's views on whether the 
Department of Defense has complied with the requirements of subsection 
(a) for the fiscal year covered by the report.''
    1997--Pub. L. 105-85, Sec. 363, repealed Pub. L. 104-106, 
Sec. 311(f)(1). See 1996 Amendment note below.
    Subsec. (a). Pub. L. 105-85, Sec. 357, substituted ``50 percent'' 
for ``40 percent''.
    Subsec. (e). Pub. L. 105-85, Sec. 358, reenacted heading without 
change and amended text generally. Prior to amendment, text read as 
follows: ``Not later than January 15, 1995, the Secretary of Defense 
shall submit to Congress a report identifying, for each military 
department and Defense Agency, the percentage of funds referred to in 
subsection (a) that was used during fiscal year 1994 to contract for the 
performance by non-Federal Government personnel of depot-level 
maintenance and repair workload.''
    1996--Pub. L. 104-106, Sec. 311(f)(1), which directed repeal of this 
section, was repealed by Pub. L. 105-85, Sec. 363.
    Subsec. (b). Pub. L. 104-106, Sec. 312(b), redesignated subsec. (b) 
as section 2472(a) of this title.
    1994--Subsec. (a). Pub. L. 103-337, Sec. 332(a), amended heading and 
text of subsec. (a) generally. Prior to amendment, text read as follows:
    ``(1) Except as provided in paragraph (2), the Secretary of a 
military department and, with respect to a Defense Agency, the Secretary 
of Defense, may not contract for the performance by non-Federal 
Government personnel of more than 40 percent of the depot-level 
maintenance workload for the military department or the Defense Agency.
    ``(2) The Secretary of the Army shall provide for the performance by 
employees of the Department of Defense of not less than the following 
percentages of Army aviation depot-level maintenance workload:
        ``(A) For fiscal year 1993, 50 percent.
        ``(B) For fiscal year 1994, 55 percent.
        ``(C) For fiscal year 1995, 60 percent.''
    Subsec. (b). Pub. L. 103-337, Sec. 332(b), inserted ``and repair'' 
after ``maintenance'' in two places.
    Subsec. (e). Pub. L. 103-337, Sec. 332(c), amended heading and text 
of subsec. (e) generally. Prior to amendment, text read as follows:
    ``(1) Not later than January 15, 1992, and January 15, 1993, the 
Secretary of the Army and the Secretary of the Air Force shall jointly 
submit to Congress a report describing the progress during the preceding 
fiscal year to achieve and maintain the percentage of depot-level 
maintenance required to be performed by employees of the Department of 
Defense pursuant to subsection (a).
    ``(2) Not later than January 15, 1994, the Secretary of each 
military department and the Secretary of Defense, with respect to the 
Defense Agencies, shall jointly submit to Congress a report described in 
paragraph (1).''
    1992--Subsec. (a). Pub. L. 102-484, Sec. 352(a), amended subsec. (a) 
generally. Prior to amendment, subsec. (a) read as follows: ``Percentage 
Limitation.--Not less than 60 percent of the funds available for each 
fiscal year for depot-level maintenance of materiel managed for the 
Department of the Army and the Department of the Air Force shall be used 
for the performance of such depot-level maintenance by employees of the 
Department of Defense.''
    Subsec. (c). Pub. L. 102-484, Sec. 352(b), substituted ``The 
Secretary of the military department concerned and, with respect to a 
Defense Agency, the Secretary of Defense'' for ``The Secretary of the 
Army, with respect to the Department of the Army, and the Secretary of 
the Air Force, with respect to the Department of the Air Force,''.
    Subsec. (e). Pub. L. 102-484, Sec. 352(c), designated existing 
provisions as par. (1) and added par. (2).
    1991--Pub. L. 102-190 substituted section catchline for one which 
read ``Prohibition on certain depot maintenance workload competitions'' 
and amended text generally. Prior to amendment, text read as follows: 
``The Secretary of Defense shall prohibit the Secretary of the Army and 
the Secretary of the Air Force, in selecting an entity to perform any 
depot maintenance workload, from carrying out a competition for such 
selection--
    ``(1) between or among maintenance activities of the Department of 
the Army and the Department of the Air Force; or
    ``(2) between a maintenance activity of either such department and a 
private contractor.''
    1989--Pub. L. 101-189, in introductory provisions, substituted 
``shall prohibit'' for ``may not require'', ``Army and'' for ``Army 
or'', and ``from carrying out'' for ``to carry out''.


                         Congressional Findings

    Section 331 of Pub. L. 103-337 provided that: ``Congress makes the 
following findings:
        ``(1) By providing the Armed Forces with a critical capacity to 
    respond to the needs of the Armed Forces for depot-level maintenance 
    and repair of weapon systems and equipment, the depot-level 
    maintenance and repair activities of the Department of Defense play 
    an essential role in maintaining the readiness of the Armed Forces.
        ``(2) It is appropriate for the capability of the depot-level 
    maintenance and repair activities of the Department of Defense to 
    perform maintenance and repair of weapon systems and equipment to be 
    based on policies that take into consideration the readiness, 
    mobilization, and deployment requirements of the military 
    departments.
        ``(3) It is appropriate for the management of employees of the 
    depot-level maintenance and repair activities of the Department of 
    Defense to be based on the amount of workload necessary to be 
    performed by such activities to maintain the readiness of the weapon 
    systems and equipment of the military departments and on the funds 
    made available for the performance of such workload.''


           Reutilization Initiative for Depot-Level Activities

    Section 337 of Pub. L. 103-337 provided that:
    ``(a) Program Authorized.--The Secretary of Defense shall conduct 
activities to encourage commercial firms to enter into partnerships with 
depot-level activities of the military departments for the purposes of--
        ``(1) demonstrating commercial uses of the depot-level 
    activities that are related to the principal mission of the depot-
    level activities;
        ``(2) preserving employment and skills of employees currently 
    employed by the depot-level activities or providing for the 
    reemployment and retraining of employees who, as the result of the 
    closure, realignment, or reduced in-house workload of such 
    activities, may become unemployed; and
        ``(3) supporting the goals of other defense conversion, 
    reinvestment, and transition assistance programs while also allowing 
    the depot-level activities to remain in operation to continue to 
    perform their defense readiness mission.
    ``(b) Conditions.--The Secretary shall ensure that activities 
conducted under this section--
        ``(1) do not interfere with the closure or realignment of a 
    depot-level activity of the military departments under a base 
    closure law; and
        ``(2) do not adversely affect the readiness or primary mission 
    of a participating depot-level activity.''


  Continuation of Percentage Limitations on Performance of Depot-Level 
                               Maintenance

    Pub. L. 103-160, div. A, title III, Sec. 343, Nov. 30, 1993, 107 
Stat. 1624, provided that: ``The Secretary of Defense shall ensure that 
the percentage limitations applicable to the depot-level maintenance 
workload performed by non-Federal Government personnel set forth in 
section 2466 of title 10, United States Code, are adhered to.''


             Effect of 1992 Amendments on Existing Contracts

    Section 352(d) of Pub. L. 102-484 provided that: ``The Secretary of 
a military department and the Secretary of Defense, with respect to the 
Defense Agencies, may not cancel a depot-level maintenance contract in 
effect on the date of the enactment of this Act [Oct. 23, 1992] in order 
to comply with the requirements of section 2466(a) of title 10, United 
States Code, as amended by subsection (a).''


 Prohibition on Cancellation of Contracts in Effect on December 5, 1991

    Section 314(a)(3) of Pub. L. 102-190 provided that: ``The Secretary 
of the Army and the Secretary of the Air Force may not cancel a depot-
level maintenance contract in effect on the date of the enactment of 
this Act [Dec. 5, 1991] in order to comply with the requirements of 
section 2466(a) of such title, as amended by subsection (a).''


              Competition Pilot Program; Review and Report

    Section 314(b)-(d) of Pub. L. 102-190, as amended by Pub. L. 102-
484, div. A, title III, Sec. 354, Oct. 23, 1992, 106 Stat. 2379, 
provided that:
    ``[(b) Repealed. Pub. L. 102-484, div. A, title III, Sec. 354, Oct. 
23, 1992, 106 Stat. 2379.]
    ``(c) Review by Comptroller General.--Not later than February 1, 
1994, the Comptroller General shall submit to Congress an evaluation of 
all depot maintenance workloads of the Department of Defense, including 
Navy depot maintenance workloads, that are performed by an entity 
selected pursuant to competitive procedures.
    ``(d) Report by Secretary of Defense.--Not later than December 1, 
1993, the Secretary of Defense shall submit to Congress a report--
        ``(1) containing a five-year strategy of the Department of 
    Defense to use competitive procedures for the selection of entities 
    to perform depot maintenance workloads; and
        ``(2) describing the cost savings anticipated through the use of 
    those procedures.''


        Pilot Program for Depot Maintenance Workload Competition

    Pub. L. 101-510, div. A, title IX, Sec. 922, Nov. 5, 1990, 104 Stat. 
1627, authorized a depot maintenance workload competition pilot program 
during fiscal year 1991, outlined elements of the program, and provided 
for a report not later than Mar. 31, 1992, to congressional defense 
committees, prior to repeal by Pub. L. 102-190, div. A, title III, 
Sec. 314(b)(2), Dec. 5, 1991, 105 Stat. 1337.
