
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 1048(a)(23)]
[CITE: 10USC2535]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
 CHAPTER 148--NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE, DEFENSE 
                  REINVESTMENT, AND DEFENSE CONVERSION
 
    SUBCHAPTER V--MISCELLANEOUS TECHNOLOGY BASE POLICIES AND PROGRAMS
 
Sec. 2535. Defense Industrial Reserve

    (a) Declaration of Purpose and Policy.--It is the intent of Congress 
(1) to provide a comprehensive and continuous program for the future 
safety and for the defense of the United States by providing adequate 
measures whereby an essential nucleus of Government-owned industrial 
plants and an industrial reserve of machine tools and other industrial 
manufacturing equipment may be assured for immediate use to supply the 
needs of the Armed Forces in time of national emergency or in 
anticipation thereof; (2) that such Government-owned plants and such 
reserve shall not exceed in number or kind the minimum requirements for 
immediate use in time of national emergency, and that any such items 
which shall become excess to such requirements shall be disposed of as 
expeditiously as possible; (3) that to the maximum extent practicable, 
reliance will be placed upon private industry for support of defense 
production; and (4) that machine tools and other industrial 
manufacturing equipment may be held in plant equipment packages or in a 
general reserve to maintain a high state of readiness for production of 
critical items of defense materiel, to provide production capacity not 
available in private industry for defense materiel, or to assist private 
industry in time of national disaster.
    (b) Powers and Duties of the Secretary of Defense.--(1) To execute 
the policy set forth in this section, the Secretary is authorized and 
directed to--
        (A) determine which industrial plants and installations 
    (including machine tools and other industrial manufacturing 
    equipment) should become a part of the defense industrial reserve;
        (B) designate what excess industrial property shall be disposed 
    of;
        (C) establish general policies and provide for the 
    transportation, handling, care, storage, protection, maintenance, 
    repair, rebuilding, utilization, recording, leasing and security of 
    such property;
        (D) direct the transfer without reimbursement of such property 
    to other Government agencies with the consent of such agencies;
        (E) direct the leasing of any of such property to designated 
    lessees;
        (F) authorize the disposition in accordance with existing law of 
    any of such property when in the opinion of the Secretary such 
    property is no longer needed by the Department of Defense; and
        (G) notwithstanding title II of the Federal Property and 
    Administrative Services Act of 1949 (40 U.S.C. 481 et seq.) and any 
    other provision of law, authorize the transfer to a nonprofit 
    educational institution or training school, on a nonreimbursable 
    basis, of any such property already in the possession of such 
    institution or school whenever the program proposed by such 
    institution or school for the use of such property is in the public 
    interest.

    (2)(A) The Secretary of a military department to which equipment or 
other property is transferred from the Defense Industrial Reserve shall 
reimburse appropriations available for the purposes of the Defense 
Industrial Reserve for the full cost (including direct and indirect 
costs) of--
        (i) storage of such property;
        (ii) repair and maintenance of such property; and
        (iii) overhead allocated to such property.

    (B) The Secretary of Defense shall prescribe regulations 
establishing general policies and fee schedules for reimbursements under 
subparagraph (A).
    (c) Definitions.--In this section:
        (1) The term ``Secretary'' means Secretary of Defense.
        (2) The term ``Defense Industrial Reserve'' means (A) a general 
    reserve of industrial manufacturing equipment, including machine 
    tools, selected by the Secretary of Defense for retention for 
    national defense or for other emergency use; (B) those industrial 
    plants and installations held by and under the control of the 
    Department of Defense in active or inactive status, including 
    Government-owned/Government-operated plants and installations and 
    Government-owned/contractor-operated plants and installations which 
    are retained for use in their entirety, or in part, for production 
    of military weapons systems, munitions, components, or supplies; (C) 
    those industrial plants and installations under the control of the 
    Secretary which are not required for the immediate need of any 
    department or agency of the Government and which should be sold, 
    leased, or otherwise disposed of.
        (3) The term ``plant equipment package'' means a complement of 
    active and idle machine tools and other industrial manufacturing 
    equipment held by and under the control of the Department of Defense 
    and approved by the Secretary for retention to produce particular 
    defense materiel or defense supporting items at a specific level of 
    output in the event of emergency.

(Added and amended Pub. L. 102-484, div. D, title XLII, Sec. 4235, Oct. 
23, 1992, 106 Stat. 2690; Pub. L. 103-35, title II, Sec. 201(c)(8), May 
31, 1993, 107 Stat. 98; Pub. L. 103-337, div. A, title III, Sec. 379(a), 
Oct. 5, 1994, 108 Stat. 2737.)

                       References in Text

    The Federal Property and Administrative Services Act of 1949, 
referred to in subsec. (b)(1)(G), is act June 30, 1949, ch. 288, 63 
Stat. 377, as amended. Title II of the Act, is classified principally to 
subchapter II (Sec. 481 et seq.) of chapter 10 of Title 40, Public 
Buildings, Property, and Works. For complete classification of this Act 
to the Code, see Short Title note set out under section 471 of Title 40 
and Tables.

                          Codification

    The text of section 451 of Title 50, War and National Defense, which 
was transferred to this section, designated subsec. (a), and amended by 
Pub. L. 102-484, Sec. 4235(a)(2), was based on acts July 2, 1948, ch. 
811, Sec. 2, 62 Stat. 1225; Nov. 16, 1973, Pub. L. 93-155, title VIII, 
Sec. 809, 87 Stat. 617.
    The text of section 453 of Title 50 which was transferred to this 
section, designated subsec. (b), and amended by Pub. L. 102-484, 
Sec. 4235(a)(3), was based on acts July 2, 1948, ch. 811, Sec. 4, 62 
Stat. 1226; Nov. 16, 1973, Pub. L. 93-155, title VIII, Sec. 809, 87 
Stat. 617; Nov. 14, 1986, Pub. L. 99-661, div. A, title XIII, 
Sec. 1359(a), 100 Stat. 3999. For effective date of 1986 amendment, see 
section 1359(b) of Pub. L. 99-661.
    The text of section 452 of Title 50 which was transferred to this 
section, designated subsec. (c), and amended by Pub. L. 102-484, 
Sec. 4235(b), was based on acts July 2, 1948, ch. 811, Sec. 3, 62 Stat. 
1225; Nov. 16, 1973, Pub. L. 93-155, title VIII, Sec. 809, 87 Stat. 617.


                               Amendments

    1994--Subsec. (b)(1)(G). Pub. L. 103-337 amended subpar. (G) 
generally. Prior to amendment, subpar. (G) read as follows: ``authorize 
and regulate the lending of any such property to any nonprofit 
educational institution or training school whenever (i) the program 
proposed by such institution or school for the use of such property will 
contribute materially to national defense, and (ii) such institution or 
school shall by agreement make such provision as the Secretary shall 
deem satisfactory for the proper maintenance and care of such property 
and for its return, without expense to the Government, upon request of 
the Secretary.''
    1993--Subsec. (b)(2)(B). Pub. L. 103-35 substituted ``subparagraph 
(A)'' for ``paragraph (1)''.
    1992--Pub. L. 102-484, Sec. 4235(a), added section number and 
catchline.
    Subsec. (a). Pub. L. 102-484, Sec. 4235(a)(2), transferred the text 
of section 451 of Title 50, War and National Defense, to this section, 
designated it subsec. (a), inserted heading, and substituted ``It'' for 
``In enacting this chapter it'' in introductory provisions. See 
Codification note above.
    Subsec. (b). Pub. L. 102-484, Sec. 4235(a)(3), transferred the text 
of section 453 of Title 50, War and National Defense, to the end of this 
section and designated it subsec. (b), inserted heading, redesignated 
former subsec. (a) of section 453 as par. (1), substituted ``in this 
section'' for ``in this chapter'' in introductory provisions, 
redesignated former pars. (1) to (7) as subpars. (A) to (G), 
respectively, in subpar. (G) redesignated former subpars. (A) and (B) as 
cls. (i) and (ii), respectively, redesignated former subsec. (b) of 
section 453 as par. (2), and in par. (2) redesignated former par. (1) as 
subpar. (A), former subpars. (A) to (C) as cls. (i) to (iii), and former 
par. (2) as subpar. (B). See Codification note above.
    Subsec. (c). Pub. L. 102-484, Sec. 4235(b), transferred the text of 
section 452 of Title 50, War and National Defense, to the end of this 
section, designated it subsec. (c), inserted heading, and substituted 
``In this section:'' for ``As used in this chapter--'' in introductory 
provisions. See Codification note above.


  Treatment of Property Loaned Before December 31, 1993 to Educational 
                    Institutions or Training Schools

    Section 379(b) of Pub. L. 103-337 provided that: ``Except for 
property determined by the Secretary of Defense to be needed by the 
Department of Defense, property loaned before December 31, 1993, to an 
educational institution or training school under section 2535(b) of 
title 10, United States Code, or section 4(a)(7) of the Defense 
Industrial Reserve Act (as in effect before October 23, 1992 [former 
section 453(a)(7) of Title 50, War and National Defense, see 
Codification and 1992 Amendment notes above]) shall be regarded as 
surplus property. Upon certification by the Secretary to the 
Administrator of General Services that the property is being used by the 
borrowing educational institution or training school for a purpose 
consistent with that for which the property was loaned, the 
Administrator may authorize the conveyance of all right, title, and 
interest of the United States in such property to the borrower if the 
borrower agrees to accept the property. The Administrator may require 
any additional terms and conditions in connection with a conveyance so 
authorized that the Administrator considers appropriate to protect the 
interests of the United States.''
