Sec. 332. Report on equipment purchased from foreign entities and authority to adjust Army arsenal labor rates

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Not later than 30 days after the date on which the budget of the President for fiscal year 2018 is submitted to Congress pursuant to section 1105 of title 31, Unites States Code, the Secretary of Defense shall submit to the congressional defense committees a report on the equipment, weapons, weapons systems, components, subcomponents, and end-items purchased from foreign entities that identifies those items which could be manufactured in the military arsenals of the United States or the military depots of the United States to meet the goals of this section or section 2464 of title 10, United States Code, as well as a plan for moving that workload into such arsenals or depots.

The report under subsection

(a)shall include each of the following: A list of items identified in the report required under section 333 of the National Defense Authorization Act for Fiscal Year 2016 ( Public Law 114–92 ; 129 Stat. 792) and a list of any items purchased from foreign manufacturers after the date of the submission of such report that are— described in section 8302(a)(1) of title 41, United States Code, and purchased from a foreign manufacturer by reason of an exception under section 8302(a)(2)(A) or section 8302(a)(2)(B) of such title; described in section 2533b(a)(1) of title 10, United States Code, and purchased from a foreign manufacturer by reason of an exception under section 2533b(b); and described in section 2534(a) of such title and purchased from a foreign manufacturer by reason of a waiver exercised under paragraph (1), (2), (4), or

(5)of section 2534(d) of such title. An assessment of the skills required to manufacture the items described in paragraph

(1)and a comparison of those skills with skills required to meet the critical capabilities identified in the report of the Army to Congress on Critical Manufacturing Capabilities and Capacities, dated August 2013, and the core logistics capabilities identified by each military service pursuant to section 2464 of title 10, United States Code, as of the date of the enactment of this Act. An identification of the tooling, equipment, and facilities upgrades necessary for a military arsenal or depot to manufacture items described in paragraph (1). An identification of items described in paragraph

(1)most appropriate for transfer to military arsenals or depots to meet the goals of this section or the requirements of section 2464 of title 10, United States Code. An explanation of the rationale for continuing to sole-source the manufacturing of items described in paragraph

(1)from a foreign source rather than a military arsenal, depot, or other organic facility. Such other information the Secretary determines to be appropriate. Not later than March 1, 2017, the Secretary of Defense shall establish a two-year pilot program for the purpose of permitting the Army arsenals to adjust periodically, throughout the year, their labor rates charged to customers based upon changes in workload and other factors. Not later than May 1, 2019, the Secretary of Defense shall provide to the Committees on Armed Services of the Senate and the House of Representatives a briefing that assesses— each Army arsenal’s changes in labor rates throughout the previous year; the ability of each arsenal to meet the costs of their working-capital funds; and the effect on arsenal workloads of labor rate changes.

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Pub. L. 114-92
129 Stat. 792

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Sec. 332

Report on equipment purchased from foreign entities and authority to adjust Army arsenal labor rates

Pub. L.Pub. L. 114-92

Stat.129 Stat. 792

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