
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 50USC98e]

 
                   TITLE 50--WAR AND NATIONAL DEFENSE
 
     CHAPTER 5--ARSENALS, ARMORIES, ARMS, AND WAR MATERIAL GENERALLY
 
 SUBCHAPTER III--ACQUISITION AND DEVELOPMENT OF STRATEGIC RAW MATERIALS
 
Sec. 98e. Stockpile management


(a) Presidential powers

    The President shall--
        (1) acquire the materials determined under section 98b(a) of 
    this title to be strategic and critical materials;
        (2) provide for the proper storage, security, and maintenance of 
    materials in the stockpile;
        (3) provide for the upgrading, refining, or processing of any 
    material in the stockpile (notwithstanding any intermediate 
    stockpile quantity established for such material) when necessary to 
    convert such material into a form more suitable for storage, 
    subsequent disposition, and immediate use in a national emergency;
        (4) provide for the rotation of any material in the stockpile 
    when necessary to prevent deterioration or technological 
    obsolescence of such material by replacement of such material with 
    an equivalent quantity of substantially the same material or better 
    material;
        (5) subject to the notification required by subsection (d)(2) of 
    this section, provide for the timely disposal of materials in the 
    stockpile that (A) are excess to stockpile requirements, and (B) may 
    cause a loss to the Government if allowed to deteriorate; and
        (6) subject to the provisions of section 98d(b) of this title, 
    dispose of materials in the stockpile the disposal of which is 
    specifically authorized by law.

(b) Federal procurement practices

    Except as provided in subsections (c) and (d) of this section, 
acquisition of strategic and critical materials under this subchapter 
shall be made in accordance with established Federal procurement 
practices, and, except as provided in subsections (c) and (d) of this 
section and in section 98f(a) of this title, disposal of strategic and 
critical materials from the stockpile shall be made in accordance with 
the next sentence. To the maximum extent feasible--
        (1) competitive procedures shall be used in the acquisition and 
    disposal of such materials; and
        (2) efforts shall be made in the acquisition and disposal of 
    such materials to avoid undue disruption of the usual markets of 
    producers, processors, and consumers of such materials and to 
    protect the United States against avoidable loss.

(c) Barter; use of stockpile materials as payment for expenses of 
        acquiring, refining, processing, or rotating materials

    (1) The President shall encourage the use of barter in the 
acquisition under subsection (a)(1) of this section of strategic and 
critical materials for, and the disposal under subsection (a)(5) or 
(a)(6) of this section of materials from, the stockpile when acquisition 
or disposal by barter is authorized by law and is practical and in the 
best interest of the United States.
    (2) Materials in the stockpile (the disposition of which is 
authorized by paragraph (3) to finance the upgrading, refining, or 
processing of a material in the stockpile, or is otherwise authorized by 
law) shall be available for transfer at fair market value as payment for 
expenses (including transportation and other incidental expenses) of 
acquisition of materials, or of upgrading, refining, processing, or 
rotating materials, under this subchapter.
    (3) Notwithstanding section 98b(c) of this title or any other 
provision of law, whenever the President provides under subsection 
(a)(3) of this section for the upgrading, refining, or processing of a 
material in the stockpile to convert that material into a form more 
suitable for storage, subsequent disposition, and immediate use in a 
national emergency, the President may barter a portion of the same 
material (or any other material in the stockpile that is authorized for 
disposal) to finance that upgrading, refining, or processing.
    (4) To the extent otherwise authorized by law, property owned by the 
United States may be bartered for materials needed for the stockpile.

(d) Waiver; notification of proposed disposal of materials

    (1) The President may waive the applicability of any provision of 
the first sentence of subsection (b) of this section to any acquisition 
of material for, or disposal of material from, the stockpile. Whenever 
the President waives any such provision with respect to any such 
acquisition or disposal, or whenever the President determines that the 
application of paragraph (1) or (2) of such subsection to a particular 
acquisition or disposal is not feasible, the President shall notify the 
Committee on Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives in writing of the proposed 
acquisition or disposal at least 45 days before any obligation of the 
United States is incurred in connection with such acquisition or 
disposal and shall include in such notification the reasons for not 
complying with any provision of such subsection.
    (2) Materials in the stockpile may be disposed of under subsection 
(a)(5) of this section only if such congressional committees are 
notified in writing of the proposed disposal at least 45 days before any 
obligation of the United States is incurred in connection with such 
disposal.

(e) Leasehold interests in property

    The President may acquire leasehold interests in property, for 
periods not in excess of twenty years, for storage, security, and 
maintenance of materials in the stockpile.

(June 7, 1939, ch. 190, Sec. 6, as added Pub. L. 96-41, Sec. 2(a), July 
30, 1979, 93 Stat. 321; amended Pub. L. 97-35, title II, Sec. 203(c), 
Aug. 13, 1981, 95 Stat. 382; Pub. L. 99-661, div. C, title II, 
Sec. 3207(b), Nov. 14, 1986, 100 Stat. 4069; Pub. L. 101-189, div. C, 
title XXXIII, Sec. 3314, Nov. 29, 1989, 103 Stat. 1688; Pub. L. 101-510, 
div. C, title XXXIII, Sec. 3301(a), (b), Nov. 5, 1990, 104 Stat. 1844; 
Pub. L. 102-190, div. C, title XXXIII, Sec. 3312, Dec. 5, 1991, 105 
Stat. 1584; Pub. L. 103-337, div. C, title XXXIII, Sec. 3302, Oct. 5, 
1994, 108 Stat. 3098; Pub. L. 104-106, div. A, title XV, 
Sec. 1502(e)(1), Feb. 10, 1996, 110 Stat. 509; Pub. L. 104-201, div. C, 
title XXXIII, Sec. 3312(b), (c), Sept. 23, 1996, 110 Stat. 2857; Pub. L. 
105-85, div. C, title XXXIII, Sec. 3306, Nov. 18, 1997, 111 Stat. 2058; 
Pub. L. 106-65, div. A, title X, Sec. 1067(13), Oct. 5, 1999, 113 Stat. 
775.)


                            Prior Provisions

    A prior section 98e, acts June 7, 1939, ch. 190, Sec. 6, 53 Stat. 
812; May 28, 1941, ch. 135, 55 Stat. 206; July 23, 1946, ch. 590, 60 
Stat. 598; Ex. Ord. No. 9809, eff. Dec. 12, 1946, 11 F.R. 14281; Ex. 
Ord. No. 9841, eff. Apr. 23, 1947, 12 F.R. 2645; June 30, 1949, ch. 288, 
title I, Sec. 105, 63 Stat. 381; 1953 Reorg. Plan No. 3, Sec. 2(b), eff. 
June 12, 1953, 18 F.R. 3375, 67 Stat. 634; 1958 Reorg. Plan No. 1, 
Sec. 2, eff. July 1, 1958, 23 F.R. 4991, 72 Stat. 1799; Oct. 21, 1968, 
Pub. L. 90-608, Sec. 402, 82 Stat. 1194; Ex. Ord. No. 11725, Sec. 3, 
eff. June 29, 1973, 38 F.R. 17175, related to transfer of surplus 
materials to stock piles, prior to repeal by section 2(a) of Pub. L. 96-
41. See section 98c(b) of this title.
    Provisions similar to those in this section were contained in former 
section 98b of this title prior to repeal by Pub. L. 96-41.


                               Amendments

    1999--Subsec. (d)(1). Pub. L. 106-65 substituted ``and the Committee 
on Armed Services'' for ``and the Committee on National Security''.
    1997--Subsec. (b). Pub. L. 105-85, in first sentence, substituted 
``strategic and critical materials from the stockpile shall be made in 
accordance with the next sentence'' for ``materials from the stockpile 
shall be made by formal advertising or competitive negotiation 
procedures''.
    1996--Subsec. (d)(1). Pub. L. 104-201, Sec. 3312(b), substituted 
``45 days'' for ``thirty days''.
    Pub. L. 104-106, Sec. 1502(e)(1)(A), substituted ``Committee on 
Armed Services of the Senate and the Committee on National Security of 
the House of Representatives'' for ``Committees on Armed Services of the 
Senate and House of Representatives''.
    Subsec. (d)(2). Pub. L. 104-201, Sec. 3312(c), substituted ``45 
days'' for ``thirty days''.
    Pub. L. 104-106, Sec. 1502(e)(1)(B), substituted ``such 
congressional committees'' for ``the Committees on Armed Services of the 
Senate and House of Representatives''.
    1994--Subsec. (a)(4). Pub. L. 103-337 inserted ``or technological 
obsolescence'' after ``deterioration''.
    1991--Subsec. (a)(4). Pub. L. 102-190 inserted before semicolon ``or 
better material''.
    1990--Subsec. (a)(3). Pub. L. 101-510, Sec. 3301(b)(1), substituted 
``upgrading, refining,'' for ``refining'', inserted ``(notwithstanding 
any intermediate stockpile quantity established for such material)'' 
after ``stockpile'', and substituted ``storage, subsequent disposition, 
and immediate use in a national emergency'' for ``storage and subsequent 
disposition''.
    Subsec. (c)(1). Pub. L. 101-510, Sec. 3301(b)(2), inserted ``under 
subsection (a)(1) of this section'' after ``the acquisition'' and 
``under subsection (a)(5) or (a)(6) of this section'' after ``the 
disposal''.
    Subsec. (c)(2). Pub. L. 101-510, Sec. 3301(b)(3), substituted ``(the 
disposition of which is authorized by paragraph (3) to finance the 
upgrading, refining, or processing of a material in the stockpile, or is 
otherwise authorized by law)'' for ``, the disposition of which is 
authorized by law,'' and ``of upgrading, refining'' for ``of refining''.
    Subsec. (c)(3), (4). Pub. L. 101-510, Sec. 3301(a), added par. (3) 
and redesignated former par. (3) as (4).
    1989--Subsec. (b). Pub. L. 101-189, Sec. 3314(1), inserted ``and'' 
at end of par. (1), substituted a period for ``; and'' at end of par. 
(2), and struck out par. (3) which read as follows: ``disposal of such 
materials shall be made for domestic consumption.''
    Subsec. (d)(1). Pub. L. 101-189, Sec. 3314(2), substituted 
``paragraph (1) or (2)'' for ``paragraph (1), (2), or (3)''.
    1986--Subsec. (a)(3). Pub. L. 99-661 substituted ``a form more'' for 
``the form most''.
    1981--Subsec. (a)(6). Pub. L. 97-35 inserted reference to section 
98d(b) of this title.

                         Delegation of Functions

    Functions of President under this section delegated to Secretary of 
Defense by section 1 of Ex. Ord. No. 12636, Feb. 25, 1988, 53 F.R. 6114, 
set out under section 98 of this title.


         Acquisition of Germanium for National Defense Stockpile

    Pub. L. 102-172, title VIII, Sec. 8094, Nov. 26, 1991, 105 Stat. 
1196, provided that: ``Using funds available in the National Defense 
Stockpile Transaction Fund, during the period of fiscal years 1992 
through 1994 and using procedures covered by section 3301 of the 
National Defense Authorization Act, 1991 (Public Law 101-510; 104 Stat. 
1844-45) [amending this section and section 98h of this title], the 
President may acquire 50,000 kilograms of germanium to be held in the 
National Defense Stockpile.''


     Acquisition of Depleted Uranium for National Defense Stockpile

    Pub. L. 101-511, title VIII, Sec. 8095, Nov. 5, 1990, 104 Stat. 
1896, directed President, using funds available in National Defense 
Stockpile Transaction Fund, to acquire over a period of ten years from 
current domestic sources not less than thirty-six million pounds of 
depleted uranium to be held in National Defense Stockpile, prior to 
repeal by Pub. L. 102-172, title VIII, Sec. 8027A, Nov. 26, 1991, 105 
Stat. 1177.

                  Section Referred to in Other Sections

    This section is referred to in sections 98d, 98h, 98h-2 of this 
title.
