
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC4551]

 
                         TITLE 10--ARMED FORCES
 
                            Subtitle B--Army
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
                 CHAPTER 434--ARMAMENTS INDUSTRIAL BASE
 
Sec. 4551. Definitions

    In this chapter:
        (1) The term ``ARMS Initiative'' means the Armament Retooling 
    and Manufacturing Support Initiative authorized by this chapter.
        (2) The term ``eligible facility'' means a Government-owned, 
    contractor-operated ammunition manufacturing facility of the 
    Department of the Army that is in an active, inactive, layaway, or 
    caretaker status.
        (3) The term ``property manager'' includes any person or entity 
    managing an eligible facility made available under the ARMS 
    Initiative through a property management contract.
        (4) The term ``property management contract'' includes facility 
    use contracts, site management contracts, leases, and other 
    agreements entered into under the authority of this chapter.
        (5) The term ``Secretary'' means the Secretary of the Army.

(Added Pub. L. 106-398, Sec. 1 [[div. A], title III, Sec. 344(a)(1)], 
Oct. 30, 2000, 114 Stat. 1654, 1654A-67.)


                   Arsenal Support Program Initiative

    Pub. L. 106-398, Sec. 1 [[div. A], title III, Sec. 343], Oct. 30, 
2000, 114 Stat. 1654, 1654A-65, provided that:
    ``(a) Demonstration Program Required.--To help maintain the 
viability of the Army manufacturing arsenals and the unique capabilities 
of these arsenals to support the national security interests of the 
United States, the Secretary of the Army shall carry out a demonstration 
program under this section during fiscal years 2001 and 2002 at each 
manufacturing arsenal of the Department of the Army.
    ``(b) Purposes of Demonstration Program.--The purposes of the 
demonstration program are as follows:
        ``(1) To provide for the utilization of the existing skilled 
    workforce at the Army manufacturing arsenals by commercial firms.
        ``(2) To provide for the reemployment and retraining of skilled 
    workers who, as a result of declining workload and reduced Army 
    spending on arsenal production requirements at these Army arsenals, 
    are idled or underemployed.
        ``(3) To encourage commercial firms, to the maximum extent 
    practicable, to use these Army arsenals for commercial purposes.
        ``(4) To increase the opportunities for small businesses 
    (including socially and economically disadvantaged small business 
    concerns and new small businesses) to use these Army arsenals for 
    those purposes.
        ``(5) To maintain in the United States a work force having the 
    skills in manufacturing processes that are necessary to meet 
    industrial emergency planned requirements for national security 
    purposes.
        ``(6) To demonstrate innovative business practices, to support 
    Department of Defense acquisition reform, and to serve as both a 
    model and a laboratory for future defense conversion initiatives of 
    the Department of Defense.
        ``(7) To the maximum extent practicable, to allow the operation 
    of these Army arsenals to be rapidly responsive to the forces of 
    free market competition.
        ``(8) To reduce or eliminate the cost of Government ownership of 
    these Army arsenals, including the costs of operations and 
    maintenance, the costs of environmental remediation, and other 
    costs.
        ``(9) To reduce the cost of products of the Department of 
    Defense produced at these Army arsenals.
        ``(10) To leverage private investment at these Army arsenals 
    through long-term facility use contracts, property management 
    contracts, leases, or other agreements that support and advance the 
    demonstration program for the following activities:
            ``(A) Recapitalization of plant and equipment.
            ``(B) Environmental remediation.
            ``(C) Promotion of commercial business ventures.
            ``(D) Other activities approved by the Secretary of the 
        Army.
        ``(11) To foster cooperation between the Department of the Army, 
    property managers, commercial interests, and State and local 
    agencies in the implementation of sustainable development strategies 
    and investment in these Army arsenals.
    ``(c) Contract Authority.--(1) In the case of each Army 
manufacturing arsenal, the Secretary of the Army may enter into 
contracts with commercial firms to authorize the contractors, consistent 
with section 4543 of title 10, United States Code--
        ``(A) to use the arsenal, or a portion of the arsenal, and the 
    skilled workforce at the arsenal to manufacture weapons, weapon 
    components, or related products consistent with the purposes of the 
    program; and
        ``(B) to enter into subcontracts for the commercial use of the 
    arsenal consistent with such purposes.
    ``(2) A contract under paragraph (1) shall require the contractor to 
contribute toward the operation and maintenance of the Army 
manufacturing arsenal covered by the contract.
    ``(3) In the event an Army manufacturing arsenal is converted to 
contractor operation, the Secretary may enter into a contract with the 
contractor to authorize the contractor, consistent with section 4543 of 
title 10, United States Code--
        ``(A) to use the facility during the period of the program in a 
    manner consistent with the purposes of the program; and
        ``(B) to enter into subcontracts for the commercial use of the 
    facility consistent with such purposes.
    ``(d) Loan Guarantees.--(1) Subject to paragraph (2), the Secretary 
of the Army may guarantee the repayment of any loan made to a commercial 
firm to fund, in whole or in part, the establishment of a commercial 
activity at an Army manufacturing arsenal under this section.
    ``(2) Loan guarantees under this subsection may not be committed 
except to the extent that appropriations of budget authority to cover 
their costs are made in advance, as required by section 504 of the 
Federal Credit Reform Act of 1990 (2 U.S.C. 661c).
    ``(3) The Secretary of the Army may enter into agreements with the 
Administrator of the Small Business Administration or the Administrator 
of the Farmers Home Administration, the Administrator of the Rural 
Development Administration, or the head of other appropriate agencies of 
the Department of Agriculture, under which such Administrators may, 
under this subsection--
        ``(A) process applications for loan guarantees;
        ``(B) guarantee repayment of loans; and
        ``(C) provide any other services to the Secretary of the Army to 
    administer this subsection.
    ``(4) An Administrator referred to in paragraph (3) may guarantee 
loans under this section to commercial firms of any size, 
notwithstanding any limitations on the size of applicants imposed on 
other loan guarantee programs that the Administrator administers. To the 
extent practicable, each Administrator shall use the same procedures for 
processing loan guarantee applications under this subsection as the 
Administrator uses for processing loan guarantee applications under 
other loan guarantee programs that the Administrator administers.
    ``(e) Loan Limits.--The maximum amount of loan principal guaranteed 
during a fiscal year under subsection (d) may not exceed--
        ``(1) $20,000,000, with respect to any single borrower; and
        ``(2) $320,000,000 with respect to all borrowers.
    ``(f) Transfer of Funds.--The Secretary of the Army may transfer to 
an Administrator providing services under subsection (d), and the 
Administrator may accept, such funds as may be necessary to administer 
loan guarantees under such subsection.
    ``(g) Reporting Requirements.--(1) Not later than July 1 of each 
year in which a guarantee issued under subsection (d) is in effect, the 
Secretary of the Army shall submit to Congress a report specifying the 
amounts of loans guaranteed under such subsection during the preceding 
calendar year. No report is required after fiscal year 2002.
    ``(2) Not later than July 1, 2001, the Secretary of the Army shall 
submit to the congressional defense committees [Committees on Armed 
Services and Appropriations of the Senate and the House of 
Representatives] a report on the implementation of the demonstration 
program. The report shall contain a comprehensive review of contracting 
at the Army manufacturing arsenals covered by the program and such 
recommendations as the Secretary considers appropriate regarding changes 
to the program.''
