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Code · BILL · 114th Congress · S. 2943 (Engrossed in Senate) — To authorize appropriations for fiscal year 2017 for military activities of the Department of Defense, for military c... · Sec. 873

Sec. 873. Distribution support and services for weapon systems contractors

505 words·~2 min read·/bill/114/s/2943/es/section-873·

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The Secretary of Defense may make available storage and distribution services support to a contractor in support of the performance by the contractor of a contact for the production, modification, maintenance, or repair of a weapon system that is entered into by an official of the Department of Defense. Any storage and distribution services to be provided under this section to a contractor in support of the performance of a contract described in subsection
(a)shall be provided under a separate contract that is entered into by the Director of the Defense Logistics Agency with that contractor. The requirements of section 2208(h) of title 10, United States Code, and the regulations prescribed pursuant to such section shall apply to the contract between the Director of the Defense Logistics Agency and the contractor. The storage and distribution support services that may be provided under this section in support of the performance of a contract described in subsection
(a)are storage and distribution of materiel and repair parts necessary for the performance of that contract. Before exercising the authority under this section, the Secretary of Defense shall prescribe in regulations such requirements, conditions, and restrictions as the Secretary determines appropriate to ensure that storage and distribution services are provided under this section only when it is in the best interests of the United States to do so. The regulations shall include, at a minimum, the following: A requirement for the solicitation of offers for a contract described in subsection (a), for which storage and distribution services are to be made available under this section, including— a statement that the storage and distribution services are to be made available under the authority of this section to any contractor awarded the contract, but only on a basis that does not require acceptance of the support and services; and a description of the range of the storage and distribution services that are to be made available to the contractor. A requirement for the rates charged a contractor for storage and distribution services provided to a contractor under this section to reflect the full cost to the United States of the resources used in providing the support and services, including the costs of resources used, but not paid for, by the Department of Defense. With respect to a contract described in subsection
(a)that is being performed for a department or agency outside the Department of Defense, a prohibition, in accordance with applicable contracting procedures, on the imposition of any charge on that department or agency for any effort of Department of Defense personnel or the contractor to correct deficiencies in the performance of such contract. A prohibition on the imposition of any charge on a contractor for any effort of the contractor to correct a deficiency in the performance of storage and distribution services provided to the contractor under this section. The Secretary shall ensure that the exercise of authority under this section does not conflict with any obligation of the United States under any treaty or other international agreement.
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