§7541 Army Arsenals: Treatment of Unutilized or Underutilized Plant-capacity Costs

Summary

The Secretary of the Army must put in the budget papers sent to Congress with the President’s budget an estimate of how much money is needed that year to pay for unutilized and underutilized plant-capacity costs at Army arsenals. Money appropriated for those costs may only be used for them in that same fiscal year. Those costs must not be counted when an arsenal’s price is judged for a government contract. If an arsenal is a subcontractor to a private company on a government job, its charge must not include those costs if they are paid for by a direct appropriation. Army arsenal: a government-owned, government-operated Army plant that makes weapons or weapon parts. Unutilized and underutilized plant-capacity costs: costs to keep facilities and equipment ready for mobilization when they are not used or are used 20 percent or less of available work days.