S.Amdt. 4153

SA 4153. Mr. KIRK (for himself, Mr. Durbin, Mr. Grassley, and Mrs.
Ernst) submitted an amendment intended to be proposed by him to the

[[Page S3198]]

bill S. 2943, to authorize appropriations for fiscal year 2017 for
military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:

At the end of subtitle H of title VIII, add the following:

SEC. 899C. ARMY ARSENAL REVITALIZATION.

(a) Definitions.--In this section:
(1) Legacy items.--The term ``legacy items'' means
manufactured items that are no longer produced by the private
sector but continue to be used for Department of Defense
weapons systems, excluding information technology and
information systems (as those terms are defined in section
11101 of title 40, United States Code).
(2) Organic industrial base.--The term ``organic industrial
base'' means United States military facilities that advance a
vital national security interest by producing necessary
materials, munitions, and hardware, including arsenals and
depots.
(b) Use of Arsenals to Manufacture Certain Items.--
(1) Report.--Not later than 180 days after the date of the
enactment of this Act, the Director of the Defense Logistics
Agency shall submit to the congressional defense committees a
report listing all legacy items used by the Department of
Defense with a contract value equal to or greater than
$5,000,000.
(2) Legacy item production requirement.--The Secretary of
Defense shall use Army arsenals for the production of all
legacy items identified in the report submitted under
paragraph (1).
(c) Use of Organic Industrial Base to Address Diminishing
Manufacturing Sources and Material Shortages.--
(1) Report.--Not later than one year after the date of the
enactment of this Act, the Secretary of Defense shall submit
to the congressional defense committees a report detailing
plans to update and improve its guidance and practices on
Diminishing Manufacturing Sources and Material Shortages
(DMSMS), including through the use of the organic industrial
base as a resource in the implementation of a DMSMS
management plan.
(2) Guidance regarding use of organic industrial base.--The
Secretary of the Army shall maintain the arsenals with
sufficient workloads to ensure affordability and technical
competence in all critical capability areas by establishing,
not later than March 30, 2017, clear, step-by-step,
prescriptive guidance on the process for conducting make-or-
buy analyses, including the use of the organic industrial
base.
(3) Identification of army arsenal critical capabilities
and minimum workloads.--
(A) Report.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Defense shall submit
to the congressional defense committees a report that--
(i) includes a standardized, consistent method to use for
identifying the critical capabilities and minimum workloads
of the Army arsenals;
(ii) provides analysis on the critical capabilities and
minimum workloads for each of the manufacturing arsenals; and
(iii) identifies fundamental elements, such as steps,
milestones, timeframes, and resources for implementing the
United States Army Organic Industrial Base Strategic Plan
2012-2022.
(B) Guidance.--Not later than one year after the date of
the enactment of this Act, the Secretary of Defense shall
issue guidance to implement the process for identifying the
critical capabilities of the Army's manufacturing arsenals
and the method for determining the minimum workload needed to
sustain these capabilities.
(d) Authority to Adjust Labor Rates to Reflect Work
Production.--
(1) Pilot program.--Not later than 90 days after the date
of the enactment of this Act, the Secretary of Defense shall
establish a three-year pilot program for the purpose of
permitting Army arsenals to adjust their labor rates
periodically throughout the year based upon changes in
workload and other factors.
(2) Annual report.--Not later than one year after the date
of the enactment of this Act, and annually thereafter, the
Secretary of Defense shall submit to the congressional
defense committees a report that assesses--
(A) each Army arsenal's changes in labor rates throughout
the previous year;
(B) the ability of each arsenal to meet the costs of their
working capital funds; and
(C) the effect on arsenal workloads of labor rate changes.
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