(1) The United States has a long and proud 
history of manufacturing defense products. 
(2) Factories and arsenals of the Department 
of the Army that are owned and operated by the 
United States Government are a critical component 
of the organic industrial base. 
(3) The 2023 National Defense Industrial 
Strategy recognizes the need of the Department of 
Defense to more strategically utilize the organic in-
dustrial base in order to maintain a competitive mili-
tary advantage. 
(4) Sufficient workload at arsenals of the De-
partment of the Army that are owned and operated 
by the United States Government ensure cost effi-
ciency and technical competence in peacetime, while 
preserving the ability to provide an effective and 
timely response to mobilizations, national defense 
contingency situations, and other emergency require-
ments. 
SEC. 3. LIMITATION ON CONTRACTING FOR SUPPLIES 
NEEDED FOR THE DEPARTMENT OF THE 
ARMY FOR CERTAIN WORKLOAD ACTIVITIES. 
(a) IN GENERAL.—Section 7532 of title 10, United 
States Code, is amended— 
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(1) by striking ‘‘The Secretary of the Army’’ 
and inserting ‘‘(a) IN GENERAL.—The Secretary of 
the Army’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) TREATMENT OF WORKLOAD ACTIVITIES.— 
‘‘(1) PERCENTAGE
LIMITATION.—Not more 
than 50 percent of the funds made available in a fis-
cal year for a military department or a Defense 
Agency for workload activities pursuant to sub-
section (a) may be used to contract for the perform-
ance by non-United States Government personnel of 
such workload for that military department or De-
fense Agency. 
‘‘(2) AMOUNTS FOR ACTIVITIES BY EMPLOYEES 
OF DEPARTMENT OF DEFENSE.— 
‘‘(A) IN GENERAL.—Any funds made avail-
able in a fiscal year to a military department or 
a Defense Agency for workload activities pursu-
ant to subsection (a) that are not used for a 
contract described in paragraph (1) shall be 
used for the performance of those activities by 
employees of the Department of Defense. 
‘‘(B) TREATMENT
OF
PUBLIC-PRIVATE 
PARTNERSHIPS.—Workload activities conducted 
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pursuant to subsection (a) under a public-pri-
vate partnership shall be deemed to be activities 
performed by employees of the Department of 
Defense for purposes of subparagraph (A). 
‘‘(3) WAIVER OF LIMITATION.— 
‘‘(A) IN GENERAL.—The Secretary of De-
fense may waive the limitation under paragraph 
(1) for a fiscal year if the Secretary determines 
that the waiver is necessary for reasons of na-
tional security. 
‘‘(B) EFFECT.—A waiver under subpara-
graph (A) shall not take effect until the date 
that is 30 days after the Secretary submits to 
the congressional defense committees a notifica-
tion of the determination under such subpara-
graph, together with a justification for the de-
termination. 
‘‘(4) 
PREFERENCES
FOR
PUBLIC-PRIVATE 
PARTNERSHIPS IN SOURCE SELECTION PROCESS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
give preference to a non-public partner who has 
entered into a public-private partnership under 
section 2474 of this title in the source selection 
process if such partner uses an arsenal of the 
Department of the Army that is owned and op-
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erated by the United States Government as a 
partner in any type of contractual agreement 
with the United States Government to conduct 
workload activities pursuant to subsection (a), 
by adding 20 percent to the price of any offer 
that does not use an arsenal of the Department 
of the Army that is owned and operated by the 
United States Government as a partner in its 
bid. 
‘‘(B) NON-PUBLIC PARTNER DEFINED.—In 
this subparagraph, the term ‘non-public part-
ner’ means a corporation, individual, university, 
or nonprofit organization. 
‘‘(5) CONFORMANCE.—The establishment of 
sustained workload conducted under subsection (a) 
shall be consistent with the requirement under para-
graph (1) and shall be performed consistent with fol-
lowing: 
‘‘(A) The technical proficiencies set forth 
under section 2474(a) or 4841 of this title. 
‘‘(B) Fragility and criticality assessments 
of the Army.’’. 
(b) CONFORMING AMENDMENT.—Section 7544(c) of 
title 10, United States Code, is amended, in the matter 
preceding paragraph (1), by striking ‘‘may be carried out 
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at an Army industrial facility under a cooperative arrange-
ment entered into under subsection (a) only under the fol-
lowing conditions’’ and inserting ‘‘is presumptively and 
conditionally approved to be carried out at an Army indus-
trial facility under a cooperative arrangement entered into 
under subsection (a) unless it is demonstrated that the 
following conditions are not met’’. 
(c) ANNUAL REPORT.— 
(1) IN GENERAL.—On and after the date of the 
enactment of this Act, the Secretary of Defense shall 
submit to the appropriate congressional committees, 
with the budget of the President submitted under 
section 1105(a) of title 31, United States Code, for 
a fiscal year a report that details the following: 
(A) An outlook of expected workload at 
each arsenal of the Department of the Army 
that is owned and operated by the United 
States Government during the period covered 
by the future-years defense program submitted 
to Congress under section 221 of title 10, 
United States Code. 
(B) A breakout, by relevant budget ac-
counts, of workload that was achieved in the 
prior fiscal year, whether directly or through 
public-private partnerships. 
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