10 U.S.C. § 2208: Working-capital funds

finance inventories of such supplies as he may designate; and 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. 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. supplies that are procured or otherwise acquired, manufactured, repaired, issued, or used, including the cost of the procurement and qualification of technology-enhanced maintenance capabilities that improve either reliability, maintainability, sustainability, or supportability and have, at a minimum, been demonstrated to be functional in an actual system application or operational environment; and services or work performed; 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. Undertaking efforts to optimize the rate structure for all requisitioning entities. Encouraging a working capital fund activity to perform reimbursable work for other entities to sustain the efficient use of the workforce. Determining the appropriate leadership level for approving work from outside entities to maximize efficiency. 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. 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). 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. 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 7543 of this title . 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 the Secretary would advance the objectives set forth in section 2474(b)(2) of this title by authorizing the facility to do so. 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. 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. An unspecified minor military construction project under section 2805(c) of this title . Automatic data processing equipment or software. Any other equipment. Any other capital improvement. The reasons for the advance billing. An analysis of the effects of the advance billing on military readiness. An analysis of the effects of the advance billing on the customer. during a period of war or national emergency; or to the extent that the Secretary determines necessary to support a contingency operation. Except as provided in subparagraph (B), 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. The dollar limitation under subparagraph (A) shall not apply with respect to advance billing for relief efforts following a declaration of a major disaster or emergency under the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5121 et seq.). This subsection shall not apply to advance billing for background investigation and related services performed by the Defense Counterintelligence and Security Agency. 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. The term “customer” means a requisitioning component or agency. Amounts charged for depreciation of capital assets shall be credited to a separate capital asset subaccount established within a working-capital fund. 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. Amounts necessary to recover the full costs of the goods and services provided for that activity. Amounts for depreciation of capital assets, set in accordance with generally accepted accounting principles. 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) of this title . Amounts necessary to cover costs incurred in connection with the closure or realignment of a military installation. 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. 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. 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. A detailed proposed budget for the operation of the fund for the fiscal year for which the budget is submitted. 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 President’s budget. The opening balance of the subaccount as of the beginning of the fiscal year in which the report is submitted. The estimated amounts to be credited to the subaccount in the fiscal year in which the report is submitted. The estimated amounts of outlays to be paid out of the subaccount in the fiscal year in which the report is submitted. The estimated balance of the subaccount at the end of the fiscal year in which the report is submitted. 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. 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. 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. to suspend the employment of indirectly funded Government employees of the Department of Defense who are paid for out of working-capital funds by ceasing or suspending the distribution of such funds; or to cease or suspend the distribution of funds from a working-capital fund for a current project undertaken to carry out the functions or activities of the Department. the working-capital fund is insolvent; or there are insufficient funds in the working-capital fund to pay labor costs for the current project concerned. The Secretary of Defense or the Secretary of a military department may waive the limitation in paragraph (1) if such Secretary determines that the waiver is in the national security interests of the United States. This subsection shall not be construed to provide for the exclusion of any particular category of employees of the Department of Defense from furlough due to absence of or inadequate funding. From amounts available for Working Capital Fund, Defense, the Secretary shall reserve up to $1,000,000,000, to remain available without fiscal year limitation, for petroleum market price fluctuations. Such amounts may only be disbursed if the Secretary determines such a disbursement is necessary to absorb volatile market changes in fuel prices without affecting the standard price charged for fuel. A budget request for the anticipated costs of fuel may not take into account the availability of funds reserved under paragraph (1). The Secretary of a military department may use a working capital fund of the department under this section to fund an unspecified minor military construction project under section 2805 of this title for the revitalization and recapitalization of a defense industrial base facility owned by the United States and under the jurisdiction of the Secretary. Except as provided in subparagraph (B), section 2805 of this title shall apply with respect to a project funded using a working capital fund under the authority of this subsection in the same manner as such section applies to any unspecified minor military construction project under section 2805 of this title . For purposes of applying subparagraph (A), the dollar limitation specified in subsection (a)(2) of section 2805 of this title , subject to adjustment as provided in subsection (f) of such section, shall apply rather than the dollar limitation specified in subsection (c) of such section. In this subsection, the term “defense industrial base facility” means any Department of Defense depot, arsenal, shipyard, or plant located within the United States. The authority to use a working capital fund to fund a project under the authority of this subsection expires on September 30, 2027 . Notwithstanding section 2208( l )(3) of title 10, United States Code, during fiscal year 2020, the total amount of the advance billings rendered or imposed for all working-capital funds of the Department of Defense may exceed the amount otherwise specified in such section. In this section, the term ‘advance billing’ has the meaning given that term in section 2208( l )(4) [now 2208( l )(5)] of title 10, United States Code.” The Secretary of Defense shall develop and carry out a pilot program to effectively and efficiently acquire commercial satellite communications services to meet the requirements of the military departments, Defense Agencies, and combatant commanders. Of the funds authorized to be appropriated for any of fiscal years 2015 through 2020 for the Department of Defense for the acquisition of satellite communications, not more than $50,000,000 may be obligated or expended for such pilot program during such a fiscal year. In carrying out the pilot program under paragraph (1), the Secretary may not use the authorities provided in sections 2208(k) and 2210(b) of title 10, United States Code. In carrying out the pilot program under paragraph (1), the Secretary may use a variety of methods authorized by law to effectively and efficiently acquire commercial satellite communications services, including by carrying out multiple pathfinder activities under the pilot program. provides a cost-effective and strategic method to acquire commercial satellite communications services; incentivizes private-sector participation and investment in technologies to meet future requirements of the Department of Defense with respect to commercial satellite communications services; takes into account the potential for a surge or other change in the demand of the Department for commercial satellite communications services in response to global or regional events; ensures the ability of the Secretary to control and account for the cost of programs and work performed under the pilot program; and demonstrates the potential to achieve order-of-magnitude improvements in satellite communications capability. The pilot program under subsection (a)(1) shall terminate on October 1, 2020 . a plan and schedule to carry out the pilot program under subsection (a)(1); and a description of the appropriate metrics established by the Secretary to meet the goals of the pilot program. At the same time as the President submits to Congress the budget pursuant to section 1105 of title 31 , for each of fiscal years 2017 through 2020, the Secretary shall provide to the congressional defense committees briefing on the pilot program. an assessment of the pilot program and whether the pilot program effectively and efficiently acquires commercial satellite communications services to meet the requirements of the military departments, Defense Agencies, and combatant commanders; and any contract entered into under the pilot program, the funding used under such contract, and the efficiencies realized under such contract; the advantages and challenges of using the pilot program; any additional authorities the Secretary determines necessary to acquire commercial satellite communications services as described in subsection (a)(1); and any recommendations of the Secretary with respect to improving or extending the pilot program. In developing and carrying out the pilot program under subsection (a)(1), by not later than September 30, 2017 , the Secretary shall take actions to begin the implementation of each goal specified in subsection (b).”