TITLE 10 - US CODE - CHAPTER 131 - PLANNING AND COORDINATION

10 USC 2201 - Apportionment of funds: authority for exemption; excepted expenses

(a) Exemption From Apportionment Requirement.— 
If the President determines such action to be necessary in the interest of national defense, the President may exempt from the provisions of section 1512 of title 31 appropriations, funds, and contract authorizations available for military functions of the Department of Defense.
(b) Airborne Alerts.— 
Upon a determination by the President that such action is necessary, the Secretary of Defense may provide for the cost of an airborne alert as an excepted expense under section 3732(a) of the Revised Statutes (41 U.S.C. 11 (a)).
(c) Members on Active Duty.— 
Upon a determination by the President that it is necessary to increase (subject to limits imposed by law) the number of members of the armed forces on active duty beyond the number for which funds are provided in appropriation Acts for the Department of Defense, the Secretary of Defense may provide for the cost of such additional members as an excepted expense under section 3732(a) of the Revised Statutes (41 U.S.C. 11 (a)).
(d) Notification to Congress.— 
The Secretary of Defense shall immediately notify Congress of the use of any authority under this section.

10 USC 2202 - Regulations on procurement, production, warehousing, and supply distribution functions

The Secretary of Defense shall prescribe regulations governing the performance within the Department of Defense of the procurement, production, warehousing, and supply distribution functions, and related functions, of the Department of Defense.

10 USC 2203 - Budget estimates

To account for, and report, the cost of performance of readily identifiable functional programs and activities, with segregation of operating and capital programs, budget estimates of the Department of Defense shall be prepared, presented, and justified, where practicable, and authorized programs shall be administered, in such form and manner as the Secretary of Defense, subject to the authority and direction of the President, may prescribe. As far as practicable, budget estimates and authorized programs of the military departments shall be uniform and in readily comparable form. The budget for the Department of Defense submitted to Congress for each fiscal year shall include data projecting the effect of the appropriations requested for materiel readiness requirements. The Secretary of Defense shall provide that the budget justification documents for such budget include information on the number of employees of contractors estimated to be working on contracts of the Department of Defense during the fiscal year for which the budget is submitted. Such information shall be set forth in terms of employee-years or such other measure as will be uniform and readily comparable with civilian personnel of the Department of Defense.

10 USC 2204 - Obligation of appropriations

To prevent overdrafts and deficiencies in the fiscal year for which appropriations are made, appropriations made to the Department of Defense or to a military department, and reimbursements thereto, are available for obligation and expenditure only under scheduled rates of obligation, or changes thereto, that have been approved by the Secretary of Defense. This section does not prohibit the Department of Defense from incurring a deficiency that it has been authorized by law to incur.

10 USC 2205 - Reimbursements

(a) Availability of Reimbursements.— 
Reimbursements made to appropriations of the Department of Defense or a department or agency thereof under sections 1535 and 1536 of title 31, or other amounts paid by or on behalf of a department or agency of the Department of Defense to another department or agency of the Department of Defense, or by or on behalf of personnel of any department or organization, for services rendered or supplies furnished, may be credited to authorized accounts. Funds so credited are available for obligation for the same period as the funds in the account so credited. Such an account shall be accounted for as one fund on the books of the Department of the Treasury.
(b) Fixed Rate for Reimbursement for Certain Services.— 
The Secretary of Defense and the Secretaries of the military departments may charge a fixed rate for reimbursement of the costs of providing planning, supervision, administrative, or overhead services incident to any construction, maintenance, or repair project to real property or for providing facility services, irrespective of the appropriation financing the project or facility services.

10 USC 2206 - Disbursement of funds of military department to cover obligation of another agency of Department of Defense

As far as authorized by the Secretary of Defense, a disbursing official of a military department may, out of available advances, make disbursements to cover obligations in connection with any function, power, or duty of another department or agency of the Department of Defense and charge those disbursements on vouchers, to the appropriate appropriation of that department or agency. Disbursements so made shall be adjusted in settling the accounts of the disbursing official.

10 USC 2207 - Expenditure of appropriations: limitation

(a) Money appropriated to the Department of Defense may not be spent under a contract other than a contract for personal services unless that contract provides that
(1) the United States may, by written notice to the contractor, terminate the right of the contractor to proceed under the contract if the Secretary concerned or his designee finds, after notice and hearing, that the contractor, or his agent or other representative, offered or gave any gratuity, such as entertainment or a gift, to an officer, official, or employee of the United States to obtain a contract or favorable treatment in the awarding, amending, or making of determinations concerning the performance, of a contract; and
(2) if a contract is terminated under clause (1), the United States has the same remedies against the contractor that it would have had if the contractor had breached the contract and, in addition to other damages, is entitled to exemplary damages in an amount at least three, but not more than 10, as determined by the Secretary or his designee, times the cost incurred by the contractor in giving gratuities to the officer, official, or employee concerned.

The existence of facts upon which the Secretary makes findings under clause (1) may be reviewed by any competent court.

(b) This section does not apply to a contract that is for an amount not greater than the simplified acquisition threshold (as defined in section 4(11) of the Office of Federal Procurement Policy Act (41 U.S.C. 403 (11))).

10 USC 2208 - Working-capital funds

(a) To control and account more effectively for the cost of programs and work performed in the Department of Defense, the Secretary of Defense may require the establishment of working-capital funds in the Department of Defense to
(1) finance inventories of such supplies as he may designate; and
(2) provide working capital for such industrial-type activities, and such commercial-type activities that provide common services within or among departments and agencies of the Department of Defense, as he may designate.
(b) Upon the request of the Secretary of Defense, the Secretary of the Treasury shall establish working-capital funds established under this section on the books of the Department of the Treasury.
(c) Working-capital funds shall be charged, when appropriate, with the cost of
(1) supplies that are procured or otherwise acquired, manufactured, repaired, issued, or used; and
(2) services or work performed;

including applicable administrative expenses, and be reimbursed from available appropriations or otherwise credited for those costs, including applicable administrative expenses and costs of using equipment.

(d) The Secretary of Defense may provide capital for working-capital funds by capitalizing inventories. In addition, such amounts may be appropriated for the purpose of providing capital for working-capital funds as have been specifically authorized by law.
(e) Subject to the authority and direction of the Secretary of Defense, the Secretary of each military department shall allocate responsibility for its functions, powers, and duties to accomplish the most economical and efficient organization and operation of the activities, and the most economical and efficient use of the inventories, for which working-capital funds are authorized by this section.
(f) The requisitioning agency may not incur a cost for supplies drawn from inventories, or services or work performed by industrial-type or commercial-type activities for which working-capital funds may be established under this section, that is more than the amount of appropriations or other funds available for those purposes.
(g) The appraised value of supplies returned to working-capital funds by a department, activity, or agency may be charged to that fund. The proceeds thereof shall be credited to current applicable appropriations and are available for expenditure for the same purposes that those appropriations are so available. Credits may not be made to appropriations under this subsection as the result of capitalization of inventories under subsection (d).
(h) The Secretary of Defense shall prescribe regulations governing the operation of activities and use of inventories authorized by this section. The regulations may, if the needs of the Department of Defense require it and it is otherwise authorized by law, authorize supplies to be sold to, or services to be rendered or work performed for, persons outside the Department of Defense. However, supplies available in inventories financed by working capital funds established under this section may be sold to contractors for use in performing contracts with the Department of Defense. Working-capital funds shall be reimbursed for supplies so sold, services so rendered, or work so performed by charges to applicable appropriations or payments received in cash.
(i) For provisions relating to sales outside the Department of Defense of manufactured articles and services by a working-capital funded Army industrial facility (including a Department of the Army arsenal) that manufactures large caliber cannons, gun mounts, recoil mechanisms, ammunition, munitions, or components thereof, see section 4543 of this title.
(j) 
(1) The Secretary of a military department may authorize a working capital funded industrial facility of that department to manufacture or remanufacture articles and sell these articles, as well as manufacturing, remanufacturing, and engineering services provided by such facilities, to persons outside the Department of Defense if
(A) the person purchasing the article or service is fulfilling a Department of Defense contract or a subcontract under a Department of Defense contract, and the solicitation for the contract or subcontract is open to competition between Department of Defense activities and private firms; or
(B) the Secretary would advance the objectives set forth in section 2474 (b)(2) of this title by authorizing the facility to do so.
(2) The Secretary of Defense may waive the conditions in paragraph (1) in the case of a particular sale if the Secretary determines that the waiver is necessary for reasons of national security and notifies Congress regarding the reasons for the waiver.
(k) 
(1) Subject to paragraph (2), a contract for the procurement of a capital asset financed by a working-capital fund may be awarded in advance of the availability of funds in the working-capital fund for the procurement.
(2) Paragraph (1) applies to any of the following capital assets that have a development or acquisition cost of not less than $100,000:
(A) An unspecified minor military construction project under section 2805 (c)(1) of this title.
(B) Automatic data processing equipment or software.
(C) Any other equipment.
(D) Any other capital improvement.
(l) 
(1) An advance billing of a customer of a working-capital fund may be made if the Secretary of the military department concerned submits to Congress written notification of the advance billing within 30 days after the end of the month in which the advanced billing was made. The notification shall include the following:
(A) The reasons for the advance billing.
(B) An analysis of the effects of the advance billing on military readiness.
(C) An analysis of the effects of the advance billing on the customer.
(2) The Secretary of Defense may waive the notification requirements of paragraph (1)
(A) during a period of war or national emergency; or
(B) to the extent that the Secretary determines necessary to support a contingency operation.
(3) The total amount of the advance billings rendered or imposed for all working-capital funds of the Department of Defense in a fiscal year may not exceed $1,000,000,000.
(4) In this subsection:
(A) The term advance billing, with respect to a working-capital fund, means a billing of a customer by the fund, or a requirement for a customer to reimburse or otherwise credit the fund, for the cost of goods or services provided (or for other expenses incurred) on behalf of the customer that is rendered or imposed before the customer receives the goods or before the services have been performed.
(B) The term customer means a requisitioning component or agency.
(m) Capital Asset Subaccounts.— 
Amounts charged for depreciation of capital assets shall be credited to a separate capital asset subaccount established within a working-capital fund.
(n) Separate Accounting, Reporting, and Auditing of Funds and Activities.— 
The Secretary of Defense, with respect to the working-capital funds of each Defense Agency, and the Secretary of each military department, with respect to the working-capital funds of the military department, shall provide for separate accounting, reporting, and auditing of funds and activities managed through the working-capital funds.
(o) Charges for Goods and Services Provided Through the Fund.— 

(1) Charges for goods and services provided for an activity through a working-capital fund shall include the following:
(A) Amounts necessary to recover the full costs of the goods and services provided for that activity.
(B) Amounts for depreciation of capital assets, set in accordance with generally accepted accounting principles.
(2) Charges for goods and services provided through a working-capital fund may not include the following:
(A) Amounts necessary to recover the costs of a military construction project (as defined in section 2801 (b) of this title), other than a minor construction project financed by the fund pursuant to section 2805 (c)(1) of this title.
(B) Amounts necessary to cover costs incurred in connection with the closure or realignment of a military installation.
(C) Amounts necessary to recover the costs of functions designated by the Secretary of Defense as mission critical, such as ammunition handling safety, and amounts for ancillary tasks not directly related to the mission of the function or activity managed through the fund.
(p) Procedures For Accumulation of Funds.— 
The Secretary of Defense, with respect to each working-capital fund of a Defense Agency, and the Secretary of a military department, with respect to each working-capital fund of the military department, shall establish billing procedures to ensure that the balance in that working-capital fund does not exceed the amount necessary to provide for the working-capital requirements of that fund, as determined by the Secretary.
(q) Annual Reports and Budget.— 
The Secretary of Defense, with respect to each working-capital fund of a Defense Agency, and the Secretary of each military department, with respect to each working-capital fund of the military department, shall annually submit to Congress, at the same time that the President submits the budget under section 1105 of title 31, the following:
(1) A detailed report that contains a statement of all receipts and disbursements of the fund (including such a statement for each subaccount of the fund) for the fiscal year ending in the year preceding the year in which the budget is submitted.
(2) A detailed proposed budget for the operation of the fund for the fiscal year for which the budget is submitted.
(3) A comparison of the amounts actually expended for the operation of the fund for the fiscal year referred to in paragraph (1) with the amount proposed for the operation of the fund for that fiscal year in the Presidents budget.
(4) A report on the capital asset subaccount of the fund that contains the following information:
(A) The opening balance of the subaccount as of the beginning of the fiscal year in which the report is submitted.
(B) The estimated amounts to be credited to the subaccount in the fiscal year in which the report is submitted.
(C) The estimated amounts of outlays to be paid out of the subaccount in the fiscal year in which the report is submitted.
(D) The estimated balance of the subaccount at the end of the fiscal year in which the report is submitted.
(E) A statement of how much of the estimated balance at the end of the fiscal year in which the report is submitted will be needed to pay outlays in the immediately following fiscal year that are in excess of the amount to be credited to the subaccount in the immediately following fiscal year.
(r) Notification of Transfers.— 

(1) Notwithstanding any authority provided in this section to transfer funds, the transfer of funds from a working-capital fund, including a transfer to another working-capital fund, shall not be made under such authority unless the Secretary of Defense submits, in advance, a notification of the proposed transfer to the congressional defense committees in accordance with customary procedures.
(2) The amount of a transfer covered by a notification under paragraph (1) that is made in a fiscal year does not count toward any limitation on the total amount of transfers that may be made for that fiscal year under authority provided to the Secretary of Defense in a law authorizing appropriations for a fiscal year for military activities of the Department of Defense or a law making appropriations for the Department of Defense.

10 USC 2209 - Management funds

(a) To conduct economically and efficiently the operations of the Department of Defense that are financed by at least two appropriations but whose costs cannot be immediately distributed and charged to those appropriations, there is the Army Management Fund, the Navy Management Fund, and the Air Force Management Fund, each within its respective department and under the direction of the Secretary of that department. Each such fund shall consist of a corpus of $1,000,000 and such amounts as may be appropriated thereto from time to time. An account for an operation that is to be financed by such a fund may be established only with the approval of the Secretary of Defense.
(b) Under such regulations as the Secretary of Defense may prescribe, expenditures may be made from a management fund for material (other than for stock), personal services, and services under contract. However, obligation may not be incurred against that fund if it is not chargeable to funds available under an appropriation of the department concerned or funds of another department or agency of the Department of Defense. The fund shall be promptly reimbursed from those funds for expenditures made from it.
(c) Notwithstanding any other provision of law, advances, by check or warrant, or reimbursements, may be made from available appropriations to a management fund on the basis of the estimated cost of a project. As adequate data becomes available, the estimated cost shall be revised and necessary adjustments made. Final adjustment shall be made with the appropriate funds for the fiscal year in which the advances or reimbursements are made. Except as otherwise provided by law, amounts advanced to management funds are available for obligation only during the fiscal year in which they are advanced.

10 USC 2210 - Proceeds of sales of supplies: credit to appropriations

(a) 
(1) A working-capital fund established pursuant to section 2208 of this title may retain so much of the proceeds of disposals of property referred to in paragraph (2) as is necessary to recover the expenses incurred by the fund in disposing of such property. Proceeds from the sale or disposal of such property in excess of amounts necessary to recover the expenses may be credited to current applicable appropriations of the Department of Defense.
(2) Paragraph (1) applies to disposals of supplies, material, equipment, and other personal property that were not financed by stock funds established under section 2208 of this title.
(b) Obligations may, without regard to fiscal year limitations, be incurred against anticipated reimbursements to stock funds in such amounts and for such period as the Secretary of Defense, with the approval of the President, may determine to be necessary to maintain stock levels consistently with planned operations for the next fiscal year.

10 USC 2211 - Reimbursement for equipment, material, or services furnished members of the United Nations

Amounts paid by members of the United Nations for equipment or materials furnished, or services performed, in joint military operations shall be credited to appropriate appropriations of the Department of Defense in the manner authorized by section 632(d) of the Foreign Assistance Act of 1961 (22 U.S.C. 2392 (d)).

10 USC 2212 - Obligations for contract services: reporting in budget object classes

(a) Limitation on Reporting in Miscellaneous Services Object Class.— 
The Secretary of Defense shall ensure that, in reporting to the Office of Management and Budget (pursuant to OMB Circular A11 (relating to preparation and submission of budget estimates)) obligations of the Department of Defense for any period of time for contract services, no more than 15 percent of the total amount of obligations so reported is reported in the miscellaneous services object class.
(b) Definition of Reporting Categories for Advisory and Assistance Services.— 
In carrying out section 1105 (g) of title 31 for the Department of Defense (and in determining what services are to be reported to the Office of Management and Budget in the advisory and assistance services object class), the Secretary of Defense shall apply to the terms used for the definition of advisory and assistance services in paragraph (2)(A) of that section the following meanings (subject to the authorized exemptions):
(1) Management and professional support services.— 
The term management and professional support services (used in clause (i) of section 1105 (g)(2)(A) of title 31) means services that provide engineering or technical support, assistance, advice, or training for the efficient and effective management and operation of organizations, activities, or systems. Those services
(A) are closely related to the basic responsibilities and mission of the using organization; and
(B) include efforts that support or contribute to improved organization or program management, logistics management, project monitoring and reporting, data collection, budgeting, accounting, auditing, and administrative or technical support for conferences and training programs.
(2) Studies, analyses, and evaluations.— 
The term studies, analyses, and evaluations (used in clause (ii) of section 1105 (g)(2)(A) of title 31) means services that provide organized, analytic assessments to understand or evaluate complex issues to improve policy development, decisionmaking, management, or administration and that result in documents containing data or leading to conclusions or recommendations. Those services may include databases, models, methodologies, and related software created in support of a study, analysis, or evaluation.
(3) Engineering and technical services.— 
The term engineering and technical services (used in clause (iii) of section 1105 (g)(2)(A) of title 31) means services that take the form of advice, assistance, training, or hands-on training necessary to maintain and operate fielded weapon systems, equipment, and components (including software when applicable) at design or required levels of effectiveness.
(c) Proper Classification of Advisory and Assistance Services.— 
Before the submission to the Office of Management and Budget of the proposed Department of Defense budget for inclusion in the Presidents budget for a fiscal year pursuant to section 1105 of title 31, the Secretary of Defense, acting through the Under Secretary of Defense (Comptroller), shall conduct a review of Department of Defense services expected to be performed as contract services during the fiscal year for which that budget is to be submitted in order to ensure that those services that are advisory and assistance services (as defined in accordance with subsection (b)) are in fact properly classified, in accordance with that subsection, in the advisory and assistance services object class.
(d) Report to Congress.— 
The Secretary shall submit to Congress each year, not later than 30 days after the date on which the budget for the next fiscal year is submitted pursuant to section 1105 of title 31, a report containing the information derived from the review under subsection (c).
(e) Assessment by Comptroller General.— 

(1) The Comptroller General shall conduct a review of the report of the Secretary of Defense under subsection (d) each year and shall
(A) assess the methodology used by the Secretary in obtaining the information submitted to Congress in that report; and
(B) assess the information submitted to Congress in that report.
(2) Not later than 120 days after the date on which the Secretary submits to Congress the report required under subsection (d) for any year, the Comptroller General shall submit to Congress the Comptroller Generals report containing the results of the review for that year under paragraph (1).
(f) Definitions.— 
In this section:
(1) The term contract services means all services that are reported to the Office of Management and Budget pursuant to OMB Circular A11 (relating to preparation and submission of budget estimates) in budget object classes that are designated in the Object Class 25 series.
(2) The term advisory and assistance services object class means those contract services constituting the budget object class that is denominated Advisory and Assistance Service and designated (as of October 17, 1998) as Object Class 25.1 (or any similar object class established after October 17, 1998, for the reporting of obligations for advisory and assistance contract services).
(3) The term miscellaneous services object class means those contract services constituting the budget object class that is denominated Other Services (services not otherwise specified in the 25 series) and designated (as of October 17, 1998) as Object Class 25.2 (or any similar object class established after October 17, 1998, for the reporting of obligations for miscellaneous or unspecified contract services).
(4) The term authorized exemptions means those exemptions authorized (as of October 17, 1998) under Department of Defense Directive 4205.2, captioned Acquiring and Managing Contracted Advisory and Assistance Services (CAAS) and issued by the Under Secretary of Defense for Acquisition and Technology on February 10, 1992, such exemptions being set forth in Enclosure 3 to that directive (captioned CAAS Exemptions).

10 USC 2213 - Limitation on acquisition of excess supplies

(a) Two-Year Supply.— 
The Secretary of Defense may not incur any obligation against a stock fund of the Department of Defense for the acquisition of any item of supply if that acquisition is likely to result in an on-hand inventory (excluding war reserves) of that item of supply in excess of two years of operating stocks.
(b) Exceptions.— 
The head of a procuring activity may authorize the acquisition of an item of supply in excess of the limitation contained in subsection (a) if that activity head determines in writing
(1) that the acquisition is necessary to achieve an economical order quantity and will not result in an on-hand inventory (excluding war reserves) in excess of three years of operating stocks and that the need for the item is unlikely to decline during the period for which the acquisition is made; or
(2) that the acquisition is necessary for purposes of maintaining the industrial base or for other reasons of national security.

10 USC 2214 - Transfer of funds: procedure and limitations

(a) Procedure for Transfer of Funds.— 
Whenever authority is provided in an appropriation Act to transfer amounts in working capital funds or to transfer amounts provided in appropriation Acts for military functions of the Department of Defense (other than military construction) between such funds or appropriations (or any subdivision thereof), amounts transferred under such authority shall be merged with and be available for the same purposes and for the same time period as the fund or appropriations to which transferred.
(b) Limitations on Programs for Which Authority May Be Used.— 
Such authority to transfer amounts
(1) may not be used except to provide funds for a higher priority item, based on unforeseen military requirements, than the items for which the funds were originally appropriated; and
(2) may not be used if the item to which the funds would be transferred is an item for which Congress has denied funds.
(c) Notice to Congress.— 
The Secretary of Defense shall promptly notify the Congress of each transfer made under such authority to transfer amounts.
(d) Limitations on Requests to Congress for Reprogrammings.— 
Neither the Secretary of Defense nor the Secretary of a military department may prepare or present to the Congress, or to any committee of either House of the Congress, a request with respect to a reprogramming of funds
(1) unless the funds to be transferred are to be used for a higher priority item, based on unforeseen military requirements, than the item for which the funds were originally appropriated; or
(2) if the request would be for authority to reprogram amounts to an item for which the Congress has denied funds.

10 USC 2215 - Transfer of funds to other departments and agencies: limitation

Funds available for military functions of the Department of Defense may not be made available to any other department or agency of the Federal Government pursuant to a provision of law enacted after November 29, 1989, unless, not less than 30 days before such funds are made available to such other department or agency, the Secretary of Defense submits to the congressional defense committees a certification that making those funds available to such other department or agency is in the national security interest of the United States.

10 USC 2216 - Defense Modernization Account

(a) Establishment.— 
There is established in the Treasury an account to be known as the Defense Modernization Account.
(b) Funds Available for Account.— 
The Defense Modernization Account shall consist of the following:
(1) Amounts appropriated to the Defense Modernization Account for the costs of commencing projects described in subsection (d)(1), and amounts reimbursed to the Defense Modernization Account under subsection (c)(1)(B)(iii) out of savings derived from such projects.
(2) Amounts transferred to the Defense Modernization Account under subsection (c).
(c) Transfers to Account.— 

(1) 
(A) Upon a determination by the Secretary of a military department or the Secretary of Defense with respect to Defense-wide appropriations accounts of the availability and source of funds described in subparagraph (B), that Secretary may transfer to the Defense Modernization Account during any fiscal year any amount of funds available to the Secretary described in that subparagraph. Such funds may be transferred to that account only after the Secretary concerned notifies the congressional defense committees in writing of the amount and source of the proposed transfer.
(B) This subsection applies to the following funds available to the Secretary concerned:
(i) Unexpired funds in appropriations accounts that are available for procurement and that, as a result of economies, efficiencies, and other savings achieved in carrying out a particular procurement, are excess to the requirements of that procurement.
(ii) Unexpired funds that are available during the final 30 days of a fiscal year for support of installations and facilities and that, as a result of economies, efficiencies, and other savings, are excess to the requirements for support of installations and facilities.
(iii) Unexpired funds in appropriations accounts that are available for procurement or operation and maintenance of a system, if and to the extent that savings are achieved for such accounts through reductions in life cycle costs of such system that result from one or more projects undertaken with respect to such systems with funds made available from the Defense Modernization Account under subsection (b)(1).
(C) Any transfer under subparagraph (A) shall be made under regulations prescribed by the Secretary of Defense.
(2) Funds referred to in paragraph (1), other than funds referred to in subparagraph (B)(iii) of such paragraph, may not be transferred to the Defense Modernization Account if
(A) the funds are necessary for programs, projects, and activities that, as determined by the Secretary, have a higher priority than the purposes for which the funds would be available if transferred to that account; or
(B) the balance of funds in the account, after transfer of funds to the account, would exceed $1,000,000,000.
(3) Amounts credited to the Defense Modernization Account shall remain available for transfer until the end of the third fiscal year that follows the fiscal year in which the amounts are credited to the account.
(4) The period of availability of funds for expenditure provided for in sections 1551 and 1552 of title 31 may not be extended by transfer into the Defense Modernization Account.
(d) Authorized Use of Funds.— 
Funds in the Defense Modernization Account may be used for the following purposes:
(1) For paying the costs of commencing any project that, in accordance with criteria prescribed by the Secretary of Defense, is undertaken by the Secretary of a military department or the head of a Defense Agency or other element of the Department of Defense to reduce the life cycle cost of a new or existing system.
(2) For increasing, subject to subsection (e), the quantity of items and services procured under a procurement program in order to achieve a more efficient production or delivery rate.
(3) For research, development, test, and evaluation and for procurement necessary for modernization of an existing system or of a system being procured under an ongoing procurement program.
(e) Limitations.— 

(1) Funds in the Defense Modernization Account may not be used to increase the quantity of an item or services procured under a particular procurement program to the extent that doing so would
(A) result in procurement of a total quantity of items or services in excess of
(i) a specific limitation provided by law on the quantity of the items or services that may be procured; or
(ii) the requirement for the items or services as approved by the Joint Requirements Oversight Council and reported to Congress by the Secretary of Defense; or
(B) result in an obligation or expenditure of funds in excess of a specific limitation provided by law on the amount that may be obligated or expended, respectively, for that procurement program.
(2) Funds in the Defense Modernization Account may not be used for a purpose or program for which Congress has not authorized appropriations.
(3) Funds may not be transferred from the Defense Modernization Account in any year for the purpose of
(A) making an expenditure for which there is no corresponding obligation; or
(B) making an expenditure that would satisfy an unliquidated or unrecorded obligation arising in a prior fiscal year.
(f) Transfer of Funds.— 

(1) The Secretary of Defense may transfer funds in the Defense Modernization Account to appropriations available for purposes set forth in subsection (d).
(2) Funds in the Defense Modernization Account may not be transferred under paragraph (1) until 30 days after the date on which the Secretary concerned notifies the congressional defense committees in writing of the amount and purpose of the proposed transfer.
(3) The total amount of transfers from the Defense Modernization Account during any fiscal year under this subsection may not exceed $500,000,000.
(g) Availability of Funds by Appropriation.— 
In addition to transfers under subsection (f), funds in the Defense Modernization Account may be made available for purposes set forth in subsection (d) in accordance with the provisions of appropriations Acts, but only to the extent authorized in an Act other than an appropriations Act.
(h) Secretary To Act Through Comptroller.— 

(1) The Secretary of Defense shall carry out this section through the Under Secretary of Defense (Comptroller), who shall be authorized to implement this section through the issuance of any necessary regulations, policies, and procedures after consultation with the General Counsel and Inspector General of the Department of Defense.
(2) The regulations prescribed under paragraph (1) shall, at a minimum, provide for
(A) the submission of proposals by the Secretaries concerned or heads of Defense Agencies or other elements of the Department of Defense to the Comptroller for the use of Defense Modernization Account funds for purposes set forth in subsection (d);
(B) the use of a competitive process for the evaluation of such proposals and the selection of programs, projects, and activities to be funded out of the Defense Modernization Account from among those proposed for such funding; and
(C) the calculation of
(i) the savings to be derived from projects described in subsection (d)(1) that are to be funded out of the Defense Modernization Account; and
(ii) the amounts to be reimbursed to the Defense Modernization Account out of such savings pursuant to subsection (c)(1)(B)(iii).
(i) Annual Report.— 

(1) Not later than 15 days after the end of each fiscal year, the Secretary of Defense shall submit to the congressional committees specified in paragraph (2) a report on the Defense Modernization Account. Each such report shall set forth the following:
(A) The amount and source of each credit to the account during that fiscal year.
(B) The amount and purpose of each transfer from the account during that fiscal year.
(C) The balance in the account at the end of the fiscal year and, of such balance, the amount attributable to transfers to the account from each Secretary concerned.
(2) The committees referred to in paragraph (1) are the congressional defense committees and the Committee on Governmental Affairs of the Senate and the Committee on Government Reform and Oversight of the House of Representatives.
(j) Definitions.— 
In this section:
(1) The term Secretary concerned includes the Secretary of Defense with respect to Defense-wide appropriations accounts.
(2) The term unexpired funds means funds appropriated for a definite period that remain available for obligation.
(k) Expiration of Authority and Account.— 

(1) The authority under subsection (c) to transfer funds into the Defense Modernization Account terminates at the close of September 30, 2006.
(2) Three years after the termination date specified in paragraph (1), the Defense Modernization Account shall be closed and any remaining balance in the account shall be canceled and thereafter shall not be available for any purpose.

10 USC 2216a - Repealed. Pub. L. 105261, div. A, title X, 1008(b), Oct. 17, 1998, 112 Stat. 2117]

Section, added Pub. L. 104–106, div. A, title III, 371(a)(1), Feb. 10, 1996, 110 Stat. 277, 2216; renumbered 2216a and amended Pub. L. 104–201, div. A, title III, 363(c), 364, title X, 1074(a)(10), Sept. 23, 1996, 110 Stat. 2493, 2494, 2659, related to Defense Business Operations Fund.

10 USC 2217 - Comparable budgeting for common procurement weapon systems

(a) Matters To Be Included in Annual Defense Budgets.— 
In preparing the defense budget for any fiscal year, the Secretary of Defense shall
(1) specifically identify each common procurement weapon system included in the budget;
(2) take all feasible steps to minimize variations in procurement unit costs for any such system as shown in the budget requests of the different armed forces requesting procurement funds for the system; and
(3) identify and justify in the budget all such variations in procurement unit costs for common procurement weapon systems.
(b) Comptroller.— 
The Secretary shall carry out this section through the Under Secretary of Defense (Comptroller).
(c) Definitions.— 
In this section:
(1) The term defense budget means the budget of the Department of Defense included in the Presidents budget submitted to Congress under section 1105 of title 31 for a fiscal year.
(2) The term common procurement weapon system means a weapon system for which two or more of the Army, Navy, Air Force, and Marine Corps request procurement funds in a defense budget.

10 USC 2218 - National Defense Sealift Fund

(a) Establishment.— 
There is established in the Treasury of the United States a fund to be known as the National Defense Sealift Fund.
(b) Administration of Fund.— 
The Secretary of Defense shall administer the Fund consistent with the provisions of this section.
(c) Fund Purposes.— 

(1) Funds in the National Defense Sealift Fund shall be available for obligation and expenditure only for the following purposes:
(A) Construction (including design of vessels), purchase, alteration, and conversion of Department of Defense sealift vessels.
(B) Operation, maintenance, and lease or charter of Department of Defense vessels for national defense purposes.
(C) Installation and maintenance of defense features for national defense purposes on privately owned and operated vessels that are constructed in the United States and documented under the laws of the United States.
(D) Research and development relating to national defense sealift.
(E) Expenses for maintaining the National Defense Reserve Fleet under section 11 of the Merchant Ship Sales Act of 1946 (50 App. U.S.C. 1744), and for the costs of acquisition of vessels for, and alteration and conversion of vessels in (or to be placed in), the fleet, but only for vessels built in United States shipyards.
(2) Funds in the National Defense Sealift Fund may be obligated or expended only in amounts authorized by law.
(3) Funds obligated and expended for a purpose set forth in subparagraph (B) or (D) of paragraph (1) may be derived only from funds deposited in the National Defense Sealift Fund pursuant to subsection (d)(1).
(d) Deposits.— 
There shall be deposited in the Fund the following:
(1) All funds appropriated to the Department of Defense for
(A) construction (including design of vessels), purchase, alteration, and conversion of national defense sealift vessels;
(B) operations, maintenance, and lease or charter of national defense sealift vessels;
(C) installation and maintenance of defense features for national defense purposes on privately owned and operated vessels; and
(D) research and development relating to national defense sealift.
(2) All receipts from the disposition of national defense sealift vessels, excluding receipts from the sale, exchange, or scrapping of National Defense Reserve Fleet vessels under sections 57101–57104 and chapter 573 of title 46.
(3) All receipts from the charter of vessels under section 1424(c) of the National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 7291 note ).
(e) Acceptance of Support.— 

(1) The Secretary of Defense may accept from any person, foreign government, or international organization any contribution of money, personal property (excluding vessels), or assistance in kind for support of the sealift functions of the Department of Defense.
(2) Any contribution of property accepted under paragraph (1) may be retained and used by the Department of Defense or disposed of in accordance with procedures prescribed by the Secretary of Defense.
(3) The Secretary of Defense shall deposit in the Fund money and receipts from the disposition of any property accepted under paragraph (1).
(f) Limitations.— 

(1) A vessel built in a foreign ship yard may not be purchased with funds in the National Defense Sealift Fund pursuant to subsection (c)(1), unless specifically authorized by law.
(2) Construction, alteration, or conversion of vessels with funds in the National Defense Sealift Fund pursuant to subsection (c)(1) shall be conducted in United States ship yards and shall be subject to section 1424(b) of Public Law 101510 (104 Stat. 1683).
(g) Expiration of Funds After 5 Years.— 
No part of an appropriation that is deposited in the National Defense Sealift Fund pursuant to subsection (d)(1) shall remain available for obligation more than five years after the end of fiscal year for which appropriated except to the extent specifically provided by law.
(h) Budget Requests.— 
Budget requests submitted to Congress for the National Defense Sealift Fund shall separately identify
(1) the amount requested for programs, projects, and activities for construction (including design of vessels), purchase, alteration, and conversion of national defense sealift vessels;
(2) the amount requested for programs, projects, and activities for operation, maintenance, and lease or charter of national defense sealift vessels;
(3) the amount requested for programs, projects, and activities for installation and maintenance of defense features for national defense purposes on privately owned and operated vessels that are constructed in the United States and documented under the laws of the United States; and
(4) the amount requested for programs, projects, and activities for research and development relating to national defense sealift.
(i) Title or Management of Vessels.— 
Nothing in this section (other than subsection (c)(1)(E)) shall be construed to affect or modify title to, management of, or funding responsibilities for, any vessel of the National Defense Reserve Fleet, or assigned to the Ready Reserve Force component of the National Defense Reserve Fleet, as established by section 11 of the Merchant Ship Sales Act of 1946 (50 App. U.S.C. 1744).
(j) Contracts for Incorporation of Defense Features in Commercial Vessels.— 

(1) The head of an agency may enter into a contract with a company submitting an offer for that company to install and maintain defense features for national defense purposes in one or more commercial vessels owned or controlled by that company in accordance with the purpose for which funds in the National Defense Sealift Fund are available under subsection (c)(1)(C). The head of the agency may enter into such a contract only after the head of the agency makes a determination of the economic soundness of the offer. As consideration for a contract with the head of an agency under this subsection, the company entering into the contract shall agree with the Secretary of Defense to make any vessel covered by the contract available to the Secretary, fully crewed and ready for sea, at any time at any port determined by the Secretary, and for whatever duration the Secretary determines necessary.
(2) The head of an agency may make advance payments to the contractor under a contract under paragraph (1) in a lump sum, in annual payments, or in a combination thereof for costs associated with the installation and maintenance of the defense features on a vessel covered by the contract, as follows:
(A) The costs to build, procure, and install a defense feature in the vessel.
(B) The costs to periodically maintain and test any defense feature on the vessel.
(C) Any increased costs of operation or any loss of revenue attributable to the installation or maintenance of any defense feature on the vessel.
(D) Any additional costs associated with the terms and conditions of the contract.
(E) Payments of such sums as the Government would otherwise expend, if the vessel were placed in the Ready Reserve Fleet, for maintaining the vessel in the status designated as ROS4 status in the Ready Reserve Fleet for 25 years.
(3) For any contract under paragraph (1) under which the United States makes advance payments under paragraph (2) for the costs associated with installation or maintenance of any defense feature on a commercial vessel, the contractor shall provide to the United States such security interests in the vessel, by way of a preferred mortgage under section 31322 of title 46 or otherwise, as the head of the agency may prescribe in order to adequately protect the United States against loss for the total amount of those costs.
(4) Each contract entered into under this subsection shall
(A) set forth terms and conditions under which, so long as a vessel covered by the contract is owned or controlled by the contractor, the contractor is to operate the vessel for the Department of Defense notwithstanding any other contract or commitment of that contractor; and
(B) provide that the contractor operating the vessel for the Department of Defense shall be paid for that operation at fair and reasonable rates.
(5) The head of an agency may not delegate authority under this subsection to any officer or employee in a position below the level of head of a procuring activity.
(6) The head of an agency may not enter into a contract under paragraph (1) that would provide for payments to the contractor as authorized in paragraph (2)(E) until notice of the proposed contract is submitted to the congressional defense committees and a period of 90 days has elapsed.
(k) Definitions.— 
In this section:
(1) The term Fund means the National Defense Sealift Fund established by subsection (a).
(2) The term Department of Defense sealift vessel means any ship owned, operated, controlled, or chartered by the Department of Defense that is any of the following:
(A) A fast sealift ship, including any vessel in the Fast Sealift Program established under section 1424 of Public Law 101510 (104 Stat. 1683).
(B) Any other auxiliary vessel that was procured or chartered with specific authorization in law for the vessel, or class of vessels, to be funded in the National Defense Sealift Fund.
(3) The term national defense sealift vessel means
(A) a Department of Defense sealift vessel; and
(B) a national defense reserve fleet vessel, including a vessel in the Ready Reserve Force maintained under section 11 of the Merchant Ship Sales Act of 1946 (50 App. U.S.C. 1744).
(4) The term head of an agency has the meaning given that term in section 2302 (1) of this title.

10 USC 2219 - Renumbered 2491c]

10 USC 2220 - Performance based management: acquisition programs

(a) Establishment of Goals.— 
The Secretary of Defense shall approve or define the cost, performance, and schedule goals for major defense acquisition programs of the Department of Defense and for each phase of the acquisition cycle of such programs.
(b) Evaluation of Cost Goals.— 
The Under Secretary of Defense (Comptroller) shall evaluate the cost goals proposed for each major defense acquisition program of the Department.

10 USC 2221 - Repealed. Pub. L. 105261, div. A, title IX, 906(f)(1), Oct. 17, 1998, 112 Stat. 2096]

Section, added Pub. L. 104–106, div. A, title IX, 914(a)(1), Feb. 10, 1996, 110 Stat. 412; amended Pub. L. 104–201, div. A, title X, 1008(a), Sept. 23, 1996, 110 Stat. 2633; Pub. L. 105–85, div. A, title X, 1006(a), Nov. 18, 1997, 111 Stat. 1869; Pub. L. 105–261, div. A, title X, 1069(b)(2), Oct. 17, 1998, 112 Stat. 2136, related to Fisher House trust funds. See section 2493 of this title.

10 USC 2222 - Defense business systems: architecture, accountability, and modernization

(a) Conditions for Obligation of Funds for Defense Business System Modernization.— 
Effective October 1, 2005, funds appropriated to the Department of Defense may not be obligated for a defense business system modernization that will have a total cost in excess of $1,000,000 unless
(1) the approval authority designated for the defense business system certifies to the Defense Business Systems Management Committee established by section 186 of this title that the defense business system modernization
(A) is in compliance with the enterprise architecture developed under subsection (c);
(B) is necessary to achieve a critical national security capability or address a critical requirement in an area such as safety or security; or
(C) is necessary to prevent a significant adverse effect on a project that is needed to achieve an essential capability, taking into consideration the alternative solutions for preventing such adverse effect; and
(2) the certification by the approval authority is approved by the Defense Business Systems Management Committee.
(b) Obligation of Funds in Violation of Requirements.— 
The obligation of Department of Defense funds for a business system modernization in excess of the amount specified in subsection (a) that has not been certified and approved in accordance with such subsection is a violation of section 1341 (a)(1)(A) of title 31.
(c) Enterprise Architecture for Defense Business Systems.— 
Not later than September 30, 2005, the Secretary of Defense, acting through the Defense Business Systems Management Committee, shall develop
(1) an enterprise architecture to cover all defense business systems, and the functions and activities supported by defense business systems, which shall be sufficiently defined to effectively guide, constrain, and permit implementation of interoperable defense business system solutions and consistent with the policies and procedures established by the Director of the Office of Management and Budget, and
(2) a transition plan for implementing the enterprise architecture for defense business systems.
(d) Composition of Enterprise Architecture.— 
The defense business enterprise architecture developed under subsection (c)(1) shall include the following:
(1) An information infrastructure that, at a minimum, would enable the Department of Defense to
(A) comply with all Federal accounting, financial management, and reporting requirements;
(B) routinely produce timely, accurate, and reliable financial information for management purposes;
(C) integrate budget, accounting, and program information and systems; and
(D) provide for the systematic measurement of performance, including the ability to produce timely, relevant, and reliable cost information.
(2) Policies, procedures, data standards, and system interface requirements that are to apply uniformly throughout the Department of Defense.
(e) Composition of Transition Plan.— 

(1) The transition plan developed under subsection (c)(2) shall include the following:
(A) The acquisition strategy for new systems that are expected to be needed to complete the defense business enterprise architecture.
(B) A listing of the defense business systems as of December 2, 2002 (known as legacy systems), that will not be part of the objective defense business enterprise architecture, together with the schedule for terminating those legacy systems that provides for reducing the use of those legacy systems in phases.
(C) A listing of the legacy systems (referred to in subparagraph (B)) that will be a part of the objective defense business system, together with a strategy for making the modifications to those systems that will be needed to ensure that such systems comply with the defense business enterprise architecture.
(2) Each of the strategies under paragraph (1) shall include specific time-phased milestones, performance metrics, and a statement of the financial and nonfinancial resource needs.
(f) Approval Authorities and Accountability for Defense Business Systems.— 
The Secretary of Defense shall delegate responsibility for review, approval, and oversight of the planning, design, acquisition, deployment, operation, maintenance, and modernization of defense business systems as follows:
(1) The Under Secretary of Defense for Acquisition, Technology and Logistics shall be responsible and accountable for any defense business system the primary purpose of which is to support acquisition activities, logistics activities, or installations and environment activities of the Department of Defense.
(2) The Under Secretary of Defense (Comptroller) shall be responsible and accountable for any defense business system the primary purpose of which is to support financial management activities or strategic planning and budgeting activities of the Department of Defense.
(3) The Under Secretary of Defense for Personnel and Readiness shall be responsible and accountable for any defense business system the primary purpose of which is to support human resource management activities of the Department of Defense.
(4) The Assistant Secretary of Defense for Networks and Information Integration and the Chief Information Officer of the Department of Defense shall be responsible and accountable for any defense business system the primary purpose of which is to support information technology infrastructure or information assurance activities of the Department of Defense.
(5) The Deputy Secretary of Defense or an Under Secretary of Defense, as designated by the Secretary of Defense, shall be responsible for any defense business system the primary purpose of which is to support any activity of the Department of Defense not covered by paragraphs (1) through (4).
(g) Defense Business System Investment Review.— 

(1) The Secretary of Defense shall require each approval authority designated under subsection (f) to establish, not later than March 15, 2005, an investment review process, consistent with section 11312 of title 40, to review the planning, design, acquisition, development, deployment, operation, maintenance, modernization, and project cost benefits and risks of all defense business systems for which the approval authority is responsible. The investment review process so established shall specifically address the responsibilities of approval authorities under subsection (a).
(2) The review of defense business systems under the investment review process shall include the following:
(A) Review and approval by an investment review board of each defense business system as an investment before the obligation of funds on the system.
(B) Periodic review, but not less than annually, of every defense business system investment.
(C) Representation on each investment review board by appropriate officials from among the armed forces, combatant commands, the Joint Chiefs of Staff, and Defense Agencies.
(D) Use of threshold criteria to ensure an appropriate level of review within the Department of Defense of, and accountability for, defense business system investments depending on scope, complexity, and cost.
(E) Use of procedures for making certifications in accordance with the requirements of subsection (a).
(F) Use of procedures for ensuring consistency with the guidance issued by the Secretary of Defense and the Defense Business Systems Management Committee, as required by section 186 (c) of this title, and incorporation of common decision criteria, including standards, requirements, and priorities that result in the integration of defense business systems.
(h) Budget Information.— 
In the materials that the Secretary submits to Congress in support of the budget submitted to Congress under section 1105 of title 31 for fiscal year 2006 and fiscal years thereafter, the Secretary of Defense shall include the following information:
(1) Identification of each defense business system for which funding is proposed in that budget.
(2) Identification of all funds, by appropriation, proposed in that budget for each such system, including
(A) funds for current services (to operate and maintain the system); and
(B) funds for business systems modernization, identified for each specific appropriation.
(3) For each such system, identification of the official to whom authority for such system is delegated under subsection (f).
(4) For each such system, a description of each certification made under subsection (d) with regard to such system.
(i) Congressional Reports.— 
Not later than March 15 of each year from 2005 through 2013, the Secretary of Defense shall submit to the congressional defense committees a report on Department of Defense compliance with the requirements of this section. The first report shall define plans and commitments for meeting the requirements of subsection (a), including specific milestones and performance measures. Subsequent reports shall
(1) describe actions taken and planned for meeting the requirements of subsection (a), including
(A) specific milestones and actual performance against specified performance measures, and any revision of such milestones and performance measures; and
(B) specific actions on the defense business system modernizations submitted for certification under such subsection;
(2) identify the number of defense business system modernizations so certified;
(3) identify any defense business system modernization with an obligation in excess of $1,000,000 during the preceding fiscal year that was not certified under subsection (a), and the reasons for the waiver; and
(4) discuss specific improvements in business operations and cost savings resulting from successful defense business systems modernization efforts.
(j) Definitions.— 
In this section:
(1) The term approval authority, with respect to a defense business system, means the Department of Defense official responsible for the defense business system, as designated by subsection (f).
(2) The term defense business system means an information system, other than a national security system, operated by, for, or on behalf of the Department of Defense, including financial systems, mixed systems, financial data feeder systems, and information technology and information assurance infrastructure, used to support business activities, such as acquisition, financial management, logistics, strategic planning and budgeting, installations and environment, and human resource management.
(3) The term defense business system modernization means
(A) the acquisition or development of a new defense business system; or
(B) any significant modification or enhancement of an existing defense business system (other than necessary to maintain current services).
(4) The term enterprise architecture has the meaning given that term in section 3601 (4) of title 44.
(5) The terms information system and information technology have the meanings given those terms in section 11101 of title 40.
(6) The term national security system has the meaning given that term in section 3542 (b)(2) of title 44.

10 USC 2223 - Information technology: additional responsibilities of Chief Information Officers

(a) Additional Responsibilities of Chief Information Officer of Department of Defense.— 
In addition to the responsibilities provided for in chapter 35 of title 44 and in section 11315 of title 40, the Chief Information Officer of the Department of Defense shall
(1) review and provide recommendations to the Secretary of Defense on Department of Defense budget requests for information technology and national security systems;
(2) ensure the interoperability of information technology and national security systems throughout the Department of Defense;
(3) ensure that information technology and national security systems standards that will apply throughout the Department of Defense are prescribed;
(4) provide for the elimination of duplicate information technology and national security systems within and between the military departments and Defense Agencies; and
(5) maintain a consolidated inventory of Department of Defense mission critical and mission essential information systems, identify interfaces between those systems and other information systems, and develop and maintain contingency plans for responding to a disruption in the operation of any of those information systems.
(b) Additional Responsibilities of Chief Information Officer of Military Departments.— 
In addition to the responsibilities provided for in chapter 35 of title 44 and in section 11315 of title 40, the Chief Information Officer of a military department, with respect to the military department concerned, shall
(1) review budget requests for all information technology and national security systems;
(2) ensure that information technology and national security systems are in compliance with standards of the Government and the Department of Defense;
(3) ensure that information technology and national security systems are interoperable with other relevant information technology and national security systems of the Government and the Department of Defense; and
(4) coordinate with the Joint Staff with respect to information technology and national security systems.
(c) Definitions.— 
In this section:
(1) The term Chief Information Officer means the senior official designated by the Secretary of Defense or a Secretary of a military department pursuant to section 3506 of title 44.
(2) The term information technology has the meaning given that term by section 11101 of title 40.
(3) The term national security system has the meaning given that term by section 3542 (b)(2) of title 44.

10 USC 2224 - Defense Information Assurance Program

(a) Defense Information Assurance Program.— 
The Secretary of Defense shall carry out a program, to be known as the Defense Information Assurance Program, to protect and defend Department of Defense information, information systems, and information networks that are critical to the Department and the armed forces during day-to-day operations and operations in times of crisis.
(b) Objectives of the Program.— 
The objectives of the program shall be to provide continuously for the availability, integrity, authentication, confidentiality, nonrepudiation, and rapid restitution of information and information systems that are essential elements of the Defense Information Infrastructure.
(c) Program Strategy.— 
In carrying out the program, the Secretary shall develop a program strategy that encompasses those actions necessary to assure the readiness, reliability, continuity, and integrity of Defense information systems, networks, and infrastructure, including through compliance with subchapter II of chapter 35 of title 44, including through compliance with subchapter III of chapter 35 of title 44. The program strategy shall include the following:
(1) A vulnerability and threat assessment of elements of the defense and supporting nondefense information infrastructures that are essential to the operations of the Department and the armed forces.
(2) Development of essential information assurances technologies and programs.
(3) Organization of the Department, the armed forces, and supporting activities to defend against information warfare.
(4) Joint activities of the Department with other departments and agencies of the Government, State and local agencies, and elements of the national information infrastructure.
(5) The conduct of exercises, war games, simulations, experiments, and other activities designed to prepare the Department to respond to information warfare threats.
(6) Development of proposed legislation that the Secretary considers necessary for implementing the program or for otherwise responding to the information warfare threat.
(d) Coordination.— 
In carrying out the program, the Secretary shall coordinate, as appropriate, with the head of any relevant Federal agency and with representatives of those national critical information infrastructure systems that are essential to the operations of the Department and the armed forces on information assurance measures necessary to the protection of these systems.
[(e) Repealed. Pub. L. 108–136, div. A, title X, 1031(a)(12), Nov. 24, 2003, 117 Stat. 1597.]
(f) Information Assurance Test Bed.— 
The Secretary shall develop an information assurance test bed within the Department of Defense to provide
(1) an integrated organization structure to plan and facilitate the conduct of simulations, war games, exercises, experiments, and other activities to prepare and inform the Department regarding information warfare threats; and
(2) organization and planning means for the conduct by the Department of the integrated or joint exercises and experiments with elements of the national information systems infrastructure and other non-Department of Defense organizations that are responsible for the oversight and management of critical information systems and infrastructures on which the Department, the armed forces, and supporting activities depend for the conduct of daily operations and operations during crisis.

10 USC 2224a - Information security: continued applicability of expiring Governmentwide requirements to the Department of Defense

(a) In General.— 
The provisions of subchapter II of chapter 35 of title 44 shall continue to apply through September 30, 2004, with respect to the Department of Defense, notwithstanding the expiration of authority under section 35361 of such title.
(b) Responsibilities.— 
In administering the provisions of subchapter II of chapter 35 of title 44 with respect to the Department of Defense after the expiration of authority under section 35361 of such title, the Secretary of Defense shall perform the duties set forth in that subchapter for the Director of the Office of Management and Budget.
[1] See References in Text note below.

10 USC 2225 - Information technology purchases: tracking and management

(a) Collection of Data Required.— 
To improve tracking and management of information technology products and services by the Department of Defense, the Secretary of Defense shall provide for the collection of the data described in subsection (b) for each purchase of such products or services made by a military department or Defense Agency in excess of the simplified acquisition threshold, regardless of whether such a purchase is made in the form of a contract, task order, delivery order, military interdepartmental purchase request, or any other form of interagency agreement.
(b) Data To Be Collected.— 
The data required to be collected under subsection (a) includes the following:
(1) The products or services purchased.
(2) Whether the products or services are categorized as commercially available off-the-shelf items, other commercial items, nondevelopmental items other than commercial items, other noncommercial items, or services.
(3) The total dollar amount of the purchase.
(4) The form of contracting action used to make the purchase.
(5) In the case of a purchase made through an agency other than the Department of Defense
(A) the agency through which the purchase is made; and
(B) the reasons for making the purchase through that agency.
(6) The type of pricing used to make the purchase (whether fixed price or another type of pricing).
(7) The extent of competition provided in making the purchase.
(8) A statement regarding whether the purchase was made from
(A) a small business concern;
(B) a small business concern owned and controlled by socially and economically disadvantaged individuals; or
(C) a small business concern owned and controlled by women.
(9) A statement regarding whether the purchase was made in compliance with the planning requirements under sections 11312 and 11313 of title 40.
(c) Responsibility To Ensure Fairness of Certain Prices.— 
The head of each contracting activity in the Department of Defense shall have responsibility for ensuring the fairness and reasonableness of unit prices paid by the contracting activity for information technology products and services that are frequently purchased commercially available off-the-shelf items.
(d) Limitation on Certain Purchases.— 
No purchase of information technology products or services in excess of the simplified acquisition threshold shall be made for the Department of Defense from a Federal agency outside the Department of Defense unless
(1) the purchase data is collected in accordance with subsection (a); or
(2) 
(A) in the case of a purchase by a Defense Agency, the purchase is approved by the Under Secretary of Defense for Acquisition, Technology, and Logistics; or
(B) in the case of a purchase by a military department, the purchase is approved by the senior procurement executive of the military department.
(e) Annual Report.— 
Not later than March 15 of each year, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report containing a summary of the data collected in accordance with subsection (a).
(f) Definitions.— 
In this section:
(1) The term senior procurement executive, with respect to a military department, means the official designated as the senior procurement executive for the military department for the purposes of section 16(c) of the Office of Federal Procurement Policy Act (41 U.S.C. 414 (c)).
(2) The term simplified acquisition threshold has the meaning given the term in section 4(11) of the Office of Federal Procurement Policy Act (41 U.S.C. 403 (11)).
(3) The term small business concern means a business concern that meets the applicable size standards prescribed pursuant to section 3(a) of the Small Business Act (15 U.S.C. 632 (a)).
(4) The term small business concern owned and controlled by socially and economically disadvantaged individuals has the meaning given that term in section 8(d)(3)(C) of the Small Business Act (15 U.S.C. 637 (d)(3)(C)).
(5) The term small business concern owned and controlled by women has the meaning given that term in section 8(d)(3)(D) of the Small Business Act (15 U.S.C. 637 (d)(3)(D)).

10 USC 2226 - Contracted property and services: prompt payment of vouchers

(a) Requirement.— 
Of the contract vouchers that are received by the Defense Finance and Accounting Service by means of the mechanization of contract administration services system, the number of such vouchers that remain unpaid for more than 30 days as of the last day of each month may not exceed 5 percent of the total number of the contract vouchers so received that remain unpaid on that day.
(b) Contract Voucher Defined.— 
In this section, the term contract voucher means a voucher or invoice for the payment to a contractor for services, commercial items (as defined in section 4(12) of the Office of Federal Procurement Policy Act (41 U.S.C. 403 (12))), or other deliverable items provided by the contractor under a contract funded by the Department of Defense.

10 USC 2227 - Electronic submission and processing of claims for contract payments

(a) Submission of Claims.— 
The Secretary of Defense shall require that any claim for payment under a Department of Defense contract shall be submitted to the Department of Defense in electronic form.
(b) Processing.— 
A contracting officer, contract administrator, certifying official, or other officer or employee of the Department of Defense who receives a claim for payment in electronic form in accordance with subsection (a) and is required to transmit the claim to any other officer or employee of the Department of Defense for processing under procedures of the department shall transmit the claim and any additional documentation necessary to support the determination and payment of the claim to such other officer or employee electronically.
(c) Waiver Authority.— 
If the Secretary of Defense determines that the requirement for using electronic means for submitting claims under subsection (a), or for transmitting claims and supporting documentation under subsection (b), is unduly burdensome in any category of cases, the Secretary may exempt the cases in that category from the application of the requirement.
(d) Implementation of Requirements.— 
In implementing subsections (a) and (b), the Secretary of Defense shall provide for the following:
(1) Policies, requirements, and procedures for using electronic means for the submission of claims for payment to the Department of Defense and for the transmission, between Department of Defense officials, of claims for payment received in electronic form, together with supporting documentation (such as receiving reports, contracts and contract modifications, and required certifications).
(2) The format in which information can be accepted by the corporate database of the Defense Finance and Accounting Service.
(3) The requirements to be included in contracts regarding the electronic submission of claims for payment by contractors.
(e) Claim for Payment Defined.— 
In this section, the term claim for payment means an invoice or any other demand or request for payment.

10 USC 2228 - Office of Corrosion Policy and Oversight

(a) Office and Director.— 

(1) There is an Office of Corrosion Policy and Oversight within the Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics.
(2) The Office shall be headed by a Director of Corrosion Policy and Oversight, who shall be assigned to such position by the Under Secretary from among civilian employees of the Department of Defense with the qualifications described in paragraph (3). The Director is responsible in the Department of Defense to the Secretary of Defense (after the Under Secretary of Defense for Acquisition, Technology, and Logistics) for the prevention and mitigation of corrosion of the military equipment and infrastructure of the Department of Defense. The Director shall report directly to the Under Secretary.
(3) In order to qualify to be assigned to the position of Director, an individual shall
(A) have management expertise in, and professional experience with, corrosion project and policy implementation, including an understanding of the effects of corrosion policies on infrastructure; research, development, test, and evaluation; and maintenance; and
(B) have an understanding of Department of Defense budget formulation and execution, policy formulation, and planning and program requirements.
(4) The Secretary of Defense shall designate the position of Director as a critical acquisition position under section 1733 (b)(1)(C) of this title.
(b) Duties.— 

(1) The Director of Corrosion Policy and Oversight (in this section referred to as the Director) shall oversee and coordinate efforts throughout the Department of Defense to prevent and mitigate corrosion of the military equipment and infrastructure of the Department. The duties under this paragraph shall include the duties specified in paragraphs (2) through (5).
(2) The Director shall develop and recommend any policy guidance on the prevention and mitigation of corrosion to be issued by the Secretary of Defense.
(3) The Director shall review the programs and funding levels proposed by the Secretary of each military department during the annual internal Department of Defense budget review process as those programs and funding proposals relate to programs and funding for the prevention and mitigation of corrosion and shall submit to the Secretary of Defense recommendations regarding those programs and proposed funding levels.
(4) The Director shall provide oversight and coordination of the efforts within the Department of Defense to prevent or mitigate corrosion during
(A) the design, acquisition, and maintenance of military equipment; and
(B) the design, construction, and maintenance of infrastructure.
(5) The Director shall monitor acquisition practices within the Department of Defense
(A) to ensure that the use of corrosion prevention technologies and the application of corrosion prevention treatments are fully considered during research and development in the acquisition process; and
(B) to ensure that, to the extent determined appropriate for each acquisition program, such technologies and treatments are incorporated into that program, particularly during the engineering and design phases of the acquisition process.
(c) Additional Authorities for Director.— 
The Director is authorized to
(1) develop, update, and coordinate corrosion training with the Defense Acquisition University;
(2) participate in the process within the Department of Defense for the development of relevant directives and instructions; and
(3) interact directly with the corrosion prevention industry, trade associations, other government corrosion prevention agencies, academic research and educational institutions, and scientific organizations engaged in corrosion prevention, including the National Academy of Sciences.
(d) Long-Term Strategy.— 

(1) The Secretary of Defense shall develop and implement a long-term strategy to reduce corrosion and the effects of corrosion on the military equipment and infrastructure of the Department of Defense.
(2) The strategy under paragraph (1) shall include the following:
(A) Expansion of the emphasis on corrosion prevention and mitigation within the Department of Defense to include coverage of infrastructure.
(B) Application uniformly throughout the Department of Defense of requirements and criteria for the testing and certification of new corrosion-prevention technologies for equipment and infrastructure with similar characteristics, similar missions, or similar operating environments.
(C) Implementation of programs, including supporting databases, to ensure that a focused and coordinated approach is taken throughout the Department of Defense to collect, review, validate, and distribute information on proven methods and products that are relevant to the prevention of corrosion of military equipment and infrastructure.
(D) Establishment of a coordinated research and development program for the prevention and mitigation of corrosion for new and existing military equipment and infrastructure that includes a plan to transition new corrosion prevention technologies into operational systems, including through the establishment of memoranda of agreement, joint funding agreements, public-private partnerships, university research and education centers, and other cooperative research agreements.
(3) The strategy shall include, for the matters specified in paragraph (2), the following:
(A) Policy guidance.
(B) Performance measures and milestones.
(C) An assessment of the necessary personnel and funding necessary to accomplish the long-term strategy.
(e) Report.— 

(1) For each budget for a fiscal year, beginning with the budget for fiscal year 2009, the Secretary of Defense shall submit, with the defense budget materials, a report on the following:
(A) Funding requirements for the long-term strategy developed under subsection (d).
(B) The return on investment that would be achieved by implementing the strategy.
(C) The funds requested in the budget compared to the funding requirements.
(D) An explanation if the funding requirements are not fully funded in the budget.
(2) Within 60 days after submission of the budget for a fiscal year, the Comptroller General shall provide to the congressional defense committees
(A) an analysis of the budget submission for corrosion control and prevention by the Department of Defense; and
(B) an analysis of the report required under paragraph (1).
(f) Definitions.— 
In this section:
(1) The term corrosion means the deterioration of a material or its properties due to a reaction of that material with its chemical environment.
(2) The term military equipment includes all weapon systems, weapon platforms, vehicles, and munitions of the Department of Defense, and the components of such items.
(3) The term infrastructure includes all buildings, structures, airfields, port facilities, surface and subterranean utility systems, heating and cooling systems, fuel tanks, pavements, and bridges.
(4) The term budget, with respect to a fiscal year, means the budget for that fiscal year that is submitted to Congress by the President under section 1105 (a) of title 31.
(5) The term defense budget materials, with respect to a fiscal year, means the materials submitted to Congress by the Secretary of Defense in support of the budget for that fiscal year.

10 USC 2229 - Strategic policy on prepositioning of materiel and equipment

(a) Policy Required.— 
The Secretary of Defense shall maintain a strategic policy on the programs of the Department of Defense for the prepositioning of materiel and equipment. Such policy shall take into account national security threats, strategic mobility, service requirements, and the requirements of the combatant commands.
(b) Limitation of Diversion of Prepositioned Materiel.— 
The Secretary of a military department may not divert materiel or equipment from prepositioned stocks except
(1) in accordance with a change made by the Secretary of Defense to the policy maintained under subsection (a); or
(2) for the purpose of directly supporting a contingency operation or providing humanitarian assistance under chapter 20 of this title.
(c) Congressional Notification.— 
The Secretary of Defense may not implement or change the policy required under subsection (a) until the Secretary submits to the congressional defense committees a report describing the policy or change to the policy.

10 USC 2229a - Annual report on prepositioned materiel and equipment

(a) Annual Report Required.— 
Not later than the date of the submission of the Presidents budget request for a fiscal year under section 1105 of title 31, the Secretary of Defense shall submit to the congressional defense committees a report on the status of the materiel in the prepositioned stocks as of the end of the fiscal year preceding the fiscal year during which the report is submitted. Each report shall be unclassified and may contain a classified annex. Each report shall include the following information:
(1) The level of fill for major end items of equipment and spare parts in each prepositioned set as of the end of the fiscal year covered by the report.
(2) The material condition of equipment in the prepositioned stocks as of the end of such fiscal year, grouped by category or major end item.
(3) A list of major end items of equipment drawn from the prepositioned stocks during such fiscal year and a description of how that equipment was used and whether it was returned to the stocks after being used.
(4) A timeline for completely reconstituting any shortfall in the prepositioned stocks.
(5) An estimate of the amount of funds required to completely reconstitute any shortfall in the prepositioned stocks and a description of the Secretarys plan for carrying out such complete reconstitution.
(6) A list of any operations plan affected by any shortfall in the prepositioned stocks and a description of any action taken to mitigate any risk that such a shortfall may create.
(b) Comptroller General Review.— 

(1) By not later than 120 days after the date on which a report is submitted under subsection (a), the Comptroller General shall review the report and, as the Comptroller General determines appropriate, submit to the congressional defense committees any additional information that the Comptroller General determines will further inform such committees on issues relating to the status of the materiel in the prepositioned stocks.
(2) The Secretary of Defense shall ensure the full cooperation of the Department of Defense with the Comptroller General for purposes of the conduct of the review required by this subsection, both before and after each report is submitted under subsection (a). The Secretary shall conduct periodic briefings for the Comptroller General on the information covered by each report required under subsection (a) and provide to the Comptroller General access to the data and preliminary results to be used by the Secretary in preparing each such report before the Secretary submits the report to enable the Comptroller General to conduct each review required under paragraph (1) in a timely manner.
(3) The requirement to conduct a review under this subsection shall terminate on September 30, 2015.