S4092-118

1. Short title This Act may be cited as the Arsenal Workload Sustainment Act.

2. Findings Congress finds the following: The United States has a long and proud history of manufacturing defense products. 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. The 2023 National Defense Industrial Strategy recognizes the need of the Department of Defense to more strategically utilize the organic industrial base in order to maintain a competitive military advantage. Sufficient workload at arsenals of the Department of the Army that are owned and operated by the United States Government 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.

3. Limitation on contracting for supplies needed for the Department of the Army for certain workload activities Section 7532 of title 10, United States Code, is amended— by striking The Secretary of the Army and inserting (a) In general.—The Secretary of the Army; and by adding at the end the following new subsection: Not more than 50 percent of the funds made available in a fiscal year for a military department or a Defense Agency for workload activities pursuant to subsection (a) may be used to contract for the performance by non-United States Government personnel of such workload for that military department or Defense Agency. Any funds made available in a fiscal year to a military department or a Defense Agency for workload activities pursuant 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. Workload activities conducted pursuant to subsection (a) under a public-private partnership shall be deemed to be activities performed by employees of the Department of Defense for purposes of subparagraph (A). The Secretary of Defense may waive the limitation under paragraph (1) for a fiscal year if the Secretary determines that the waiver is necessary for reasons of national security. A waiver under subparagraph (A) shall not take effect until the date that is 30 days after the Secretary submits to the congressional defense committees a notification of the determination under such subparagraph, together with a justification for the determination. 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 operated 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. In this subparagraph, the term non-public partner means a corporation, individual, university, or nonprofit organization. The establishment of sustained workload conducted under subsection (a) shall be consistent with the requirement under paragraph (1) and shall be performed consistent with following: The technical proficiencies set forth under section 2474(a) or 4841 of this title. Fragility and criticality assessments of the Army. Section 7544(c) of title 10, United States Code, is amended, in the matter preceding paragraph (1), by striking may be carried out at an Army industrial facility under a cooperative arrangement entered into under subsection (a) only under the following conditions and inserting is presumptively and conditionally approved to be carried out at an Army industrial facility under a cooperative arrangement entered into under subsection (a) unless it is demonstrated that the following conditions are not met. 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: 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. A breakout, by relevant budget accounts, of workload that was achieved in the prior fiscal year, whether directly or through public-private partnerships. The capital investments required to be made at each arsenal of the Department of the Army that is owned and operated by the United States Government in order to ensure compliance and operational capacity. In this subsection, the term appropriate congressional committees means— the Committee on Armed Services and the Subcommittee on Defense of the Committee on Appropriations of the Senate; and the Committee on Armed Services and the Subcommittee on Defense of the Committee on Appropriations of the House of Representatives. (b)Treatment of workload activities(1)Percentage limitationNot more than 50 percent of the funds made available in a fiscal year for a military department or a Defense Agency for workload activities pursuant to subsection (a) may be used to contract for the performance by non-United States Government personnel of such workload for that military department or Defense Agency.(2)Amounts for activities by employees of Department of Defense(A)In generalAny funds made available in a fiscal year to a military department or a Defense Agency for workload activities pursuant 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 partnershipsWorkload activities conducted pursuant to subsection (a) under a public-private 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 generalThe Secretary of Defense may waive the limitation under paragraph (1) for a fiscal year if the Secretary determines that the waiver is necessary for reasons of national security.(B)EffectA waiver under subparagraph (A) shall not take effect until the date that is 30 days after the Secretary submits to the congressional defense committees a notification of the determination under such subparagraph, together with a justification for the determination.(4)Preferences for public-private partnerships in source selection process(A)In generalThe 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 operated 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 definedIn this subparagraph, the term non-public partner means a corporation, individual, university, or nonprofit organization.(5)ConformanceThe establishment of sustained workload conducted under subsection (a) shall be consistent with the requirement under paragraph (1) and shall be performed consistent with following:(A)The technical proficiencies set forth under section 2474(a) or 4841 of this title.(B)Fragility and criticality assessments of the Army..