S.Amdt. 772

1. Adds SEC. 370. PILOT PROGRAM TO CONSOLIDATE AND IMPROVE AUTHORITIES FOR ARMY WORKING-CAPITAL FUNDED FACILITIES TO ENGAGE IN PUBLIC-PRIVATE PARTNERSHIPS on page 83, between lines 5 and 6

   Adds a sectionPrinted page

   Inserted: SEC. 370. PILOT PROGRAM TO CONSOLIDATE AND IMPROVE AUTHORITIES FOR ARMY WORKING-CAPITAL FUNDED FACILITIES TO ENGAGE IN PUBLIC-PRIVATE PARTNERSHIPS.

   Inserted: (a) Authority.--Chapter 433 of title 10, United States Code, is amended by adding at the end the following new section:

   Inserted: Sec. 4544. Army industrial facilities: public-private partnerships for Ground Systems Industrial Enterprise

   Inserted: "(a) Pilot Program Authority for Public-Private Partnerships.--During fiscal years 2004 through 2008, the head of a Ground Systems Industrial Enterprise of the Department of the Army may enter into cooperative arrangements with non-Army entities to carry out military or commercial projects with the non-Army entities. A cooperative arrangement under this section shall be known as a 'public-private partnership'.

   Inserted: "(b) Ground Systems Industrial Enterprises.--(1) The Secretary of the Army shall initially designate as members of the Ground Systems Industrial Enterprise the following Army facilities:

   Inserted: "(A) Rock Island Arsenal, Illinois.

   Inserted: "(B) Watervliet Arsenal, New York.

   Inserted: "(C) Anniston Army Depot, Alabama.

   Inserted: "(D) Red River Army Depot, Texas.

   Inserted: "(E) Sierra Army Depot, California.

   Inserted: "(F) Lima Army Tank Plant, Lima, Ohio.

   Inserted: "(2) The Secretary may designate additional working-capital funded Army industrial facilities as participants in the Ground Systems Industrial Enterprise or may terminate such a designation as a result of an Army reorganization or realignment.

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   Inserted: "(c) Authorized Partnership Activities.--A public-private partnership entered into by an Enterprise facility may, subject to subsection (d), engage in any of the following activities:

   Inserted: "(1) The sale of articles manufactured by the facility or services performed by the facility to persons outside the Department of Defense.

   Inserted: "(2) The performance of--

   Inserted: "(A) work by a non-Army entity at the facility; or

   Inserted: "(B) work for a non-Army entity by the facility.

   Inserted: "(3) The sharing of work by the facility and one or more non-Army entities.

   Inserted: "(4) 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.

   Inserted: "(5) The preparation and submission of joint offers by the facility and one or more non-Army entities for competitive procurements entered into with a department or agency of the United States.

   Inserted: "(6) Any other cooperative effort by the facility and one or more non-Army entities that the Secretary determines appropriate, whether or not the effort is similar to an activity described in another paragraph of this subsection.

   Inserted: "(d) Conditions for Public-Private Partnerships.--An activity described in subsection (c) may be carried out as a public-private partnership of an Enterprise facility only under the following conditions:

   Inserted: "(1) 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.

   Inserted: "(2) The activity does not interfere with performance of--

   Inserted: "(A) work by the facility for the Department of Defense or for a contractor of the Department of Defense; or

   Inserted: "(B) a military mission of the facility.

   Inserted: "(3) The activity meets one of the following objectives:

   Inserted: "(A) Maximize utilization of the capacity of the facility.

   Inserted: "(B) Reduce or eliminate the cost of ownership of the facility.

   Inserted: "(C) Preserve skills or equipment related to a core competency of the facility.

   Inserted: "(4) The non-Army entity partner or purchaser agrees to hold harmless and indemnify the United States from any liability or claim for damages or injury to any person or property, including any damages or injury arising out of a decision by the Secretary of the Army or the Secretary of Defense to suspend or terminate a public-private partnership, or any portion thereof, during a war or national emergency, except--

   Inserted: "(A) in any case of willful misconduct or gross negligence on the part of an officer or employee of the United States; and

   Inserted: "(B) 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 Government to comply with quality or cost performance requirements in the contract to provide the articles or services.

   Inserted: "(e) Methods of Public-Private Partnerships.--To conduct an activity of a public-private partnership under this section, the head of an Enterprise facility may, in the exercise of good business judgment--

   Inserted: "(1) enter into a public-private partnership on an exclusive basis;

   Inserted: "(2) enter into a firm, fixed-price contract (or, if agreed to by the purchaser, a cost reimbursement contract) for a sale of articles or services or use of equipment or facilities;

   Inserted: "(3) enter into a multiyear contract establishing the public-private partnership for any period determined by the head of the facility to be consistent with the needs of the facility, but not to extend beyond September 30, 2008;

   Inserted: "(4) charge a partner the variable costs associated with providing the articles, services, equipment or facilities;

   Inserted: "(5) authorize a partner to use incremental funding to pay for the articles, services, or use of equipment or facilities;

   Inserted: "(6) accept payment-in-kind;

   Inserted: "(7) perform a reasonable amount of work in advance of receipt of payment; and

   Inserted: "(8) develop and maintain working capital to be available for paying design costs, planning costs, procurement costs, capital investment items, and other costs associated with the partnership.

   Inserted: "(f) Deposit of Proceeds.--The proceeds of sales and articles and services of an Enterprise facility under this section shall be credited to the working-capital fund or funds or the appropriation used for paying the costs of manufacturing the articles or performing the services.

   Inserted: "(g) Approval of Sales.--The authority of an Enterprise facility to conduct a public-private partnership under this section 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 partnership on a case basis or a class basis.

   Inserted: "(h) Relationship to other laws.--(1) Nothing in this section shall be construed to affect the applicability of--

   Inserted: "(A) foreign military sales and the export controls provided for in sections 30 and 38 of the Arms Export Control Act (22 U.S.C. 2770 and 2778) to activities of a public-private partnership under this section; and

   Inserted: "(B) section 2667 of this title to leases of non-excess property in the administration of a public-private partnership under this section.

   Inserted: "(2) Section 1341 of title 31 does not apply in the case of a transaction entered into under the authority of this section for an activity of a public-private partnership.

   Inserted: "(3) Enterprise facilities shall use the authority under this section for the establishment and operation of a public-private partnership instead of the authorities under sections 2563, 2208(h), 2208(j), and 2474 of this title.

   Inserted: "(i) Definitions.--In this section:

   Inserted: "(1) The term 'Army industrial facility' includes an arsenal, a depot, and a manufacturing plant.

   Inserted: "(2) The term 'Enterprise facility' means an Army industrial facility designated as a member of the Ground Systems Industrial Enterprise under subsection (b).

   Inserted: "(3) The term 'non-Army entity' includes the following:

   Inserted: "(A) An entity in industry or commercial sales.

   Inserted: "(B) A State or political subdivision of a State.

   Inserted: "(C) An institution of higher education and a vocational training institution.

   Inserted: "(4) The term 'incremental funding' means a series of partial payments that--

   Inserted: "(A) are made as the work on manufacture of articles is being performed or services are being performed or equipment or facilities are used, as the case may be; and

   Inserted: "(B) result in full payment being completed as the required work is being completed.

   Inserted: "(5) 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.".

   Inserted: (b) Clerical Amendment.--The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

   Inserted: "4544. Army industrial facilities: public-private partnerships for Ground Systems Industrial Enterprise.".

   Original wording

   On page 83, between lines 5 and 6, insert the following:

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As printed