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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Army Arsenal Revital-
ization Act of 2016’’. 
SEC. 2. DEFINITIONS. 
In this Act: 
(1) CONGRESSIONAL DEFENSE COMMITTEES.— 
The term ‘‘congressional defense committees’’ has 
the meaning given that term in section 101(a)(16) 
of title 10, United States Code. 
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(2) LEGACY ITEMS.—The term ‘‘legacy items’’ 
means manufactured items that are no longer pro-
duced by the private sector but continue to be used 
for Department of Defense weapons systems, exclud-
ing information technology and information systems 
(as those terms are defined in section 11101 of title 
40, United States Code). 
(3) ORGANIC
INDUSTRIAL
BASE.—The term 
‘‘organic industrial base’’ means United States mili-
tary facilities that advance a vital national security 
interest by producing necessary materials, muni-
tions, and hardware, including arsenals, depots, and 
ammunition plants. 
SEC. 3. USE OF ARSENALS TO MANUFACTURE CERTAIN 
ITEMS. 
(a) PRODUCTION OF LEGACY ITEMS.— 
(1) REPORT.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary 
of Defense shall submit to the congressional defense 
committees a report listing all legacy items used by 
the Department of Defense with a contract value 
equal to or greater than $5,000,000. 
(2) PRODUCTION REQUIREMENT.—For the pro-
duction of all legacy items identified in the report 
submitted under paragraph (1), the Secretary of De-
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fense shall use Army arsenals that conform to the 
site and meets the criteria for maintaining critical 
skill capabilities. 
(b) USE OF SOLE SOURCE CONTRACTS FOR CERTAIN 
ITEMS.— 
(1) REPORT.—Not later than one year after the 
date of the enactment of this Act, the Secretary of 
Defense shall submit to the congressional defense 
committees a report listing all sole source contracts 
for the procurement of manufactured items the lack 
of which would constitute a critical national security 
issue for the Department of Defense. 
(2) COMPETITION
REQUIREMENT.—The Sec-
retary of Defense shall establish Army arsenals as a 
second source for production of any manufactured 
item included in the report submitted under para-
graph (1). 
(c) REPORT
ON EQUIPMENT PURCHASED UNDER 
DOMESTIC SOLE SOURCE CONTRACTS.— 
(1) REPORT.—Not later than March 30, 2017, 
the Secretary of Defense shall submit to the con-
gressional defense committees a report containing a 
list of each contract awarded by the Department of 
Defense during fiscal years 2011 through 2015 
using procedures other than competitive procedures 
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for the procurement of equipment, weapons, weap-
ons systems, components, subcomponents, or end- 
items with a contract value equal to or greater than 
$3,000,000. 
(2) ELEMENTS.—The report under paragraph 
(1) shall include, for each contract listed, the fol-
lowing information: 
(A) An identification of the items pur-
chased under the contract. 
(B) The rationale for using an exception or 
waiver to award the contracts using procedures 
other than competitive procedures. 
(C) A list of potential alternative manufac-
turing sources from the public and private sec-
tor that could be developed to establish com-
petition for those items. 
SEC. 4. USE OF ORGANIC INDUSTRIAL BASE TO ADDRESS 
DIMINISHING 
MANUFACTURING 
SOURCES 
AND MATERIAL SHORTAGES. 
(a) REPORT.—Not later than one year after the date 
of the enactment of this Act, the Secretary of Defense 
shall submit to the congressional defense committees a re-
port detailing plans to update and improve its guidance 
and practices on Diminishing Manufacturing Sources and 
Material Shortages (DMSMS), including through the use 
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of the organic industrial base as a resource in the imple-
mentation of a DMSMS management plan. 
(b) GUIDANCE REGARDING USE OF ORGANIC INDUS-
TRIAL BASE.—The Secretary of the Army shall maintain 
the arsenals with sufficient workloads to ensure afford-
ability and technical competence in all critical capability 
areas by establishing, not later than March 30, 2017, 
clear, step-by-step, prescriptive guidance on the process 
for conducting make-or-buy analyses, including the use of 
the organic industrial base. 
(c) IDENTIFICATION OF ARMY ARSENAL CRITICAL 
CAPABILITIES AND EFFICIENT WORKLOADS.— 
(1) REPORT.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary 
of Defense shall submit to the congressional defense 
committees a report that— 
(A) includes a standardized, consistent 
method to use for identifying the critical capa-
bilities and efficient workloads of the Army ar-
senals; 
(B) provides analysis on the critical capa-
bilities and efficient workloads for each of the 
manufacturing arsenals; and 
(C) identifies fundamental elements, such 
as steps, milestones, timeframes, and resources 
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for implementing the United States Army Or-
ganic Industrial Base Strategic Plan 2012– 
2022. 
(2) GUIDANCE.—Not later than one year after 
the date of the enactment of this Act, the Secretary 
of Defense shall issue guidance to implement the 
process for identifying the critical capabilities of the 
Army’s manufacturing arsenals and the method for 
determining the workload needed to sustain these 
capabilities. 
SEC. 5. AUTHORITY TO ADJUST LABOR RATES TO REFLECT 
WORK PRODUCTION. 
(a) PILOT PROGRAM.—Not later than 90 days after 
the date of the enactment of this Act, the Secretary of 
Defense shall establish a three-year pilot program for the 
purpose of permitting the Army arsenals to adjust periodi-
cally, throughout the year, their labor rates charged to 
customers based upon changes in workload and other fac-
tors. 
(b) ANNUAL REPORT.—Not later than one year after 
the date of the enactment of this Act, and annually there-
after, the Secretary of Defense shall submit to the con-
gressional defense committees a report that assesses— 
(1) each Army arsenal’s changes in labor rates 
throughout the previous year; 
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(2) the ability of each arsenal to meet the costs 
of their working capital funds; and 
(3) the effect on arsenal workloads of labor rate 
changes. 
Æ 
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