A bill to provide strategic workload to Army arsenals in their function as a critical component of the organic defense industrial base.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Army Arsenal Strategic Workload 
Enhancement Act of 2012''.

SEC. 2. DEPARTMENT OF DEFENSE USE OF ARSENALS.

    (a) In General.--Chapter 143 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2425. Department of Defense use of arsenals
    ``(a) In General.--The Secretary of Defense shall develop and 
promulgate measurable and enforceable guidelines for the Department of 
Defense, defense agencies, and the military services to have supplies, 
components, end items, parts, assemblies, and sub-assemblies made in 
factories or arsenals owned by the United States, to the extent those 
factories or arsenals can make those supplies, components, end items, 
parts, assemblies, and sub-assemblies on an economical basis while 
preserving the ability to provide an effective and timely response to 
mobilizations, national defense contingency situations, and other 
emergency requirements.
    ``(b) Determination of Economical Basis.--For purposes of 
determining whether supplies, components, end items, parts, assemblies, 
and sub-assemblies can be made on an `economical basis' under 
subsection (a), the Secretary of Defense shall analyze the direct costs 
associated with the manufacture of such supplies, components, end 
items, parts, assemblies, and sub-assemblies. If an analysis is not 
performed, the Secretary of Defense or the relevant defense agency or 
military service shall promptly report to the congressional defense 
committees the justification for not performing an analysis.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2425. Department of Defense use of arsenals.''.

SEC. 3. ASSIGNMENT OF WORKLOAD AT ARMY FACTORIES AND ARSENALS.

    (a) In General.--Section 4532 of title 10, United States Code, is 
amended to read as follows:
``Sec. 4532. Assignment of workload at Army factories and arsenals
    ``(a) Assignment of Workload.--(1) The Secretary of the Army shall 
assign Government-owned and Government-operated Department of the Army 
factories and arsenals sufficient workload to ensure cost efficiency 
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 requirements.
    ``(2) At a minimum, workload may be derived from manufacturing of 
supplies, components, parts, systems, subsystems, and foreign military 
sales.
    ``(3) The Secretary of the Army shall develop and promulgate 
guidelines to make the arsenals available to the Department of Defense, 
defense agencies, and military services for procurement of supplies, 
components, parts, systems, and subsystems.
    ``(b) Waiver Authority.--(1) The Secretary of the Army may waive 
the requirement under subsection (a)(1) if such a waiver is necessary 
for the national defense.
    ``(2) A waiver under paragraph (1) shall not take effect until 30 
days after the Secretary submits to the congressional defense 
committees a notification of the determination, together with the 
justification for the determination.
    ``(3) The authority to grant a waiver under paragraph (1) may not 
be delegated.
    ``(c) Annual Arsenal Report.--In 2013 and each year thereafter, not 
later than 60 days after the date on which the budget of the President 
for a fiscal year is submitted to Congress, the Secretary of Defense 
shall submit to Congress a report for the Army identifying, for the 
relevant fiscal year, each of the following:
            ``(1) The core arsenal manufacturing capability.
            ``(2) The workload required to cost-effectively support the 
        arsenals and the manufacturing capability inherent in these 
        installations.
            ``(3) The Secretary of the Army's performance in 
        maintaining the Department of the Army's factories and arsenals 
        with sufficient workload to ensure affordability and technical 
        competence in peacetime.
            ``(4) The capital investments required to be made in order 
        to ensure compliance and operational capacity.
    ``(d) Comptroller General Review.--The Comptroller General shall 
review each report required under subsection (c) for completeness and 
compliance and provide findings and recommendations to the 
congressional defense committees not later than 60 days after the 
report is submitted to Congress.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 433 of title 10, United States Code, is amended by striking the 
item relating to section 4532 and inserting the following new item:

``4532. Assignment of workload at Army factories and arsenals.''.
    (c) Initial Workload Plan Report.--The first report required under 
subsection (c) of section 4532 of title 10, United States Code, as 
amended by subsection (a), shall be submitted not later than 180 days 
after the date of the enactment of this Act.

Summary: Army Arsenal Strategic Workload Enhancement Act of 2012 - Directs the Secretary of Defense (Secretary) to develop and promulgate guidelines for the Department of Defense (DOD), defense agencies, and military services to have supplies, components, end items, parts, assemblies, and sub-assemblies (supplies and parts) made in factories or arsenals owned by the United States, to the extent that such factories or arsenals can make such supplies and parts on an economical basis while preserving the ability to provide an effective and timely response to mobilizations, national defense contingency situations, and other emergency requirements.

Requires the Secretary of the Army to: (1) assign government-owned and operated Army factories and arsenals sufficient workload to ensure cost efficiency and technical competence in peacetime, while preserving the response ability described above; and (2) make Army arsenals available to DOD, the defense agencies, and military services for the procurement of supplies, components, parts, systems, and subsystems.

Directs: (1) the Secretary to report annually to Congress on Army arsenal capabilities, workload, performance, and required capital investments; and (2) the Comptroller General to review each report for completeness and compliance and provide findings to the congressional defense committees.