Source: https://www.law.cornell.edu/uscode/text/10/4544
Timestamp: 2019-04-21 08:47:04+00:00

Document:
A working-capital funded Army industrial facility may enter into a contract or other cooperative arrangement with a non-Army entity to carry out with the non-Army entity a military or commercial project described in subsection (b), subject to the conditions prescribed in subsection (c).
The sale of articles manufactured by the facility or services performed by the facility to persons outside the Department of the Army.
The performance of work by a non-Army entity at the facility.
The performance of work by the facility for a non-Army entity.
The sharing of work by the facility and a non-Army entity.
The leasing, or use under a facilities use contract or otherwise, of the facility (including excess capacity) or equipment (including excess equipment) of the facility by a non-Army entity.
The preparation and submission of joint offers by the facility and a non-Army entity for competitive procurements entered into with Federal agency.
In the case of an article to be manufactured or services to be performed by the facility, the articles can be substantially manufactured, or the services can be substantially performed, by the facility without subcontracting for more than incidental performance.
a military mission of the facility.
Maximized utilization of the capacity of the facility.
Reduction or elimination of the cost of ownership of the facility.
Reduction in the cost of manufacturing or maintaining Department of Defense products at the facility.
Preservation of skills or equipment related to a core competency of the facility.
in the case of a claim by a purchaser of articles or services under this section that damages or injury arose from the failure of the United States to comply with quality, schedule, or cost performance requirements in the contract to carry out the activity.
The proceeds received from the sale of an article or service pursuant to a contract or other cooperative arrangement under this section shall be credited to the working capital fund that incurs the cost of manufacturing the article or performing the service.
The authority of an Army industrial facility to enter into a cooperative arrangement under subsection (a) shall be exercised at the level of the commander of the major subordinate command of the Army that has responsibility for the facility. The commander may approve such an arrangement on a case-by-case basis or a class basis.
Except in the case of work performed for the Department of Defense, for a contract of the Department of Defense, for foreign military sales, or for authorized foreign direct commercial sales (defense articles or defense services sold to a foreign government or international organization under export controls), a sale of articles or services may be made under this section only if the approval authority described in subsection (f) determines that the articles or services are not available from a commercial source located in the United States in the required quantity or quality, or within the time required.
Amounts expended for the performance of a depot-level maintenance and repair workload by non-Federal Government personnel at an Army industrial facility shall not be counted for purposes of applying the percentage limitation in section 2466(a) of this title if the personnel are provided by a non-Army entity pursuant to a cooperative arrangement entered into under subsection (a).
section 2667 of this title to leases of non-excess property in the administration of such an arrangement.
The term “Army industrial facility” includes an ammunition plant, an arsenal, a depot, and a manufacturing plant.
A Federal agency (other than the Department of the Army).
An entity in industry or commercial sales.
A State or political subdivision of a State.
An institution of higher education or vocational training institution.
result in full payment being completed as the required work is being completed.
The term “full costs”, with respect to articles or services provided under a cooperative arrangement entered into under subsection (a), means the variable costs and the fixed costs that are directly related to the production of the articles or the provision of the services.
The term “variable costs” means the costs that are expected to fluctuate directly with the volume of sales or services provided or the use of equipment or facilities.
2009—Subsec. (a). Pub. L. 111–84 inserted “in addition to the contracts and cooperative agreements in place as of the date of the enactment of the National Defense Authorization Act for Fiscal Year 2008 (Public Law 110–181)” after “not more than eight contracts or cooperative agreements”.
Subsec. (k). Pub. L. 110–181, § 328(a)(2), substituted “2014” for “2009”.
2006—Subsec. (d). Pub. L. 109–364 substituted “Arrangement” for “Arangement” in heading.
Pub. L. 109–163, § 321(b)(1), substituted “subsection (f)” for “subsection (e)” in introductory provisions.
Subsecs. (e), (f). Pub. L. 109–163, § 321(b)(2), (3), added subsec. (e) and redesignated former subsec. (e) as (f). Former subsec. (f) redesignated (g).
Subsec. (g). Pub. L. 109–163, § 321(b)(4), substituted “subsection (f)” for “subsection (e)”.
Pub. L. 109–163, § 321(b)(2), redesignated subsec. (f) as (g). Former subsec. (g) redesignated (h).
Subsecs. (h), (i). Pub. L. 109–163, § 321(b)(2), redesignated subsecs. (g) and (h) as (h) and (i), respectively. Former subsec. (i) redesignated (j).
Subsec. (j). Pub. L. 109–163, § 321(b)(2), redesignated subsec. (i) as (j). Former subsec. (j) redesignated (k).
Subsec. (k). Pub. L. 109–163, § 321(b)(2), redesignated subsec. (j) as (k).
Pub. L. 110–181, div. A, title III, § 328(b), Jan. 28, 2008, 122 Stat. 66, as amended by Pub. L. 111–84, div. A, title III, § 324(b), Oct. 28, 2009, 123 Stat. 2253; Pub. L. 112–81, div. A, title III, § 323(b), Dec. 31, 2011, 125 Stat. 1362; Pub. L. 112–239, div. A, title X, § 1076(a)(2), Jan. 2, 2013, 126 Stat. 1948, which required the Secretary of the Army to submit to Congress an annual report on use of authority at the same time the budget of the President was submitted for fiscal years 2009 through 2016, and, not later than September 30, 2012, to the Committees on Armed Services and Appropriations of the Senate and the House of Representatives a report providing an analysis of use of authority, was repealed by Pub. L. 115–91, div. A, title X, § 1051(m)(1), Dec. 12, 2017, 131 Stat. 1564.

References: § 328
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 § 328
 § 324
 § 323
 § 1076
 § 1051