I 

114TH CONGRESS 

2D SESSION H. R. 4690 

To revitalize Army arsenals, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 3, 2016 

Mrs. BUSTOS (for herself, Mr. WESTERMAN, Mr. LOEBSACK, Ms. 

DUCKWORTH, and Mr. TONKO) introduced the following bill; which was 

referred to the Committee on Armed Services 

A BILL 

To revitalize Army arsenals, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Army Arsenal Revital5 ization Act of 2016’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) CONGRESSIONAL DEFENSE COMMITTEES.— 

9 The term ‘‘congressional defense committees’’ has 

10 the meaning given that term in section 101(a)(16) 

11 of title 10, United States Code. 


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1 (2) LEGACY ITEMS.—The term ‘‘legacy items’’ 

2 means manufactured items that are no longer pro3 duced by the private sector but continue to be used 

4 for Department of Defense weapons systems, exclud5 ing information technology and information systems 

6 (as those terms are defined in section 11101 of title 

7 40, United States Code). 

8 (3) ORGANIC INDUSTRIAL BASE.—The term 

9 ‘‘organic industrial base’’ means United States mili10 tary facilities that advance a vital national security 

11 interest by producing necessary materials, muni12 tions, and hardware, including arsenals, depots, and 

13 ammunition plants. 

14 SEC. 3. USE OF ARSENALS TO MANUFACTURE CERTAIN 

15 ITEMS. 

16 (a) PRODUCTION OF LEGACY ITEMS.— 

17 (1) REPORT.—Not later than 180 days after 

18 the date of the enactment of this Act, the Secretary 

19 of Defense shall submit to the congressional defense 

20 committees a report listing all legacy items used by 

21 the Department of Defense with a contract value 

22 equal to or greater than $5,000,000. 

23 (2) PRODUCTION REQUIREMENT.—For the pro24 duction of all legacy items identified in the report 

25 submitted under paragraph (1), the Secretary of DeVerDate Sep 11 2014 03:15 Mar 04, 2016 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4690.IH H4690

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1 fense shall use Army arsenals that conform to the 

2 site and meets the criteria for maintaining critical 

3 skill capabilities. 

4 (b) USE OF SOLE SOURCE CONTRACTS FOR CERTAIN

5 ITEMS.— 

6 (1) REPORT.—Not later than one year after the 

7 date of the enactment of this Act, the Secretary of 

8 Defense shall submit to the congressional defense 

9 committees a report listing all sole source contracts 

10 for the procurement of manufactured items the lack 

11 of which would constitute a critical national security 

12 issue for the Department of Defense. 

13 (2) COMPETITION REQUIREMENT.—The Sec14 retary of Defense shall establish Army arsenals as a 

15 second source for production of any manufactured 

16 item included in the report submitted under para17 graph (1). 

18 (c) REPORT ON EQUIPMENT PURCHASED UNDER

19 DOMESTIC SOLE SOURCE CONTRACTS.— 

20 (1) REPORT.—Not later than March 30, 2017, 

21 the Secretary of Defense shall submit to the con22 gressional defense committees a report containing a 

23 list of each contract awarded by the Department of 

24 Defense during fiscal years 2011 through 2015 

25 using procedures other than competitive procedures 


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1 for the procurement of equipment, weapons, weap2 ons systems, components, subcomponents, or end3 items with a contract value equal to or greater than 

4 $3,000,000. 

5 (2) ELEMENTS.—The report under paragraph 

6 (1) shall include, for each contract listed, the fol7 lowing information: 

8 (A) An identification of the items pur9 chased under the contract. 

10 (B) The rationale for using an exception or 

11 waiver to award the contracts using procedures 

12 other than competitive procedures. 

13 (C) A list of potential alternative manufac14 turing sources from the public and private sec15 tor that could be developed to establish com16 petition for those items. 

17 SEC. 4. USE OF ORGANIC INDUSTRIAL BASE TO ADDRESS 

18 DIMINISHING MANUFACTURING SOURCES 

19 AND MATERIAL SHORTAGES. 

20 (a) REPORT.—Not later than one year after the date 

21 of the enactment of this Act, the Secretary of Defense 

22 shall submit to the congressional defense committees a re23 port detailing plans to update and improve its guidance 

24 and practices on Diminishing Manufacturing Sources and 

25 Material Shortages (DMSMS), including through the use 


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1 of the organic industrial base as a resource in the imple2 mentation of a DMSMS management plan. 

3 (b) GUIDANCE REGARDING USE OF ORGANIC INDUS4 TRIAL BASE.—The Secretary of the Army shall maintain 

5 the arsenals with sufficient workloads to ensure afford6 ability and technical competence in all critical capability 

7 areas by establishing, not later than March 30, 2017, 

8 clear, step-by-step, prescriptive guidance on the process 

9 for conducting make-or-buy analyses, including the use of 

10 the organic industrial base. 

11 (c) IDENTIFICATION OF ARMY ARSENAL CRITICAL

12 CAPABILITIES AND EFFICIENT WORKLOADS.— 

13 (1) REPORT.—Not later than 180 days after 

14 the date of the enactment of this Act, the Secretary 

15 of Defense shall submit to the congressional defense 

16 committees a report that— 

17 (A) includes a standardized, consistent 

18 method to use for identifying the critical capa19 bilities and efficient workloads of the Army ar20 senals; 

21 (B) provides analysis on the critical capa22 bilities and efficient workloads for each of the 

23 manufacturing arsenals; and 

24 (C) identifies fundamental elements, such 

25 as steps, milestones, timeframes, and resources 


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1 for implementing the United States Army Or2 ganic Industrial Base Strategic Plan 2012– 

3 2022. 

4 (2) GUIDANCE.—Not later than one year after 

5 the date of the enactment of this Act, the Secretary 

6 of Defense shall issue guidance to implement the 

7 process for identifying the critical capabilities of the 

8 Army’s manufacturing arsenals and the method for 

9 determining the workload needed to sustain these 

10 capabilities. 

11 SEC. 5. AUTHORITY TO ADJUST LABOR RATES TO REFLECT 

12 WORK PRODUCTION. 

13 (a) PILOT PROGRAM.—Not later than 90 days after 

14 the date of the enactment of this Act, the Secretary of 

15 Defense shall establish a three-year pilot program for the 

16 purpose of permitting the Army arsenals to adjust periodi17 cally, throughout the year, their labor rates charged to 

18 customers based upon changes in workload and other fac19 tors. 

20 (b) ANNUAL REPORT.—Not later than one year after 

21 the date of the enactment of this Act, and annually there22 after, the Secretary of Defense shall submit to the con23 gressional defense committees a report that assesses— 

24 (1) each Army arsenal’s changes in labor rates 

25 throughout the previous year; 


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1 (2) the ability of each arsenal to meet the costs 

2 of their working capital funds; and 

3 (3) the effect on arsenal workloads of labor rate 

4 changes. 

Æ 


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