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

Summary

The Secretary of the Army must include in the budget papers sent to Congress an estimate of how much money is needed that year to pay unutilized and underutilized plant-capacity costs at Army arsenals. Money appropriated for those costs in a fiscal year may be used only to pay those costs in that year. When an arsenal bids to provide goods or services to a government agency, those costs must not be counted in the bid. If an arsenal is a subcontractor to a private company on a government contract, the arsenal’s charge cannot include those costs if they are paid 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 run and keep facilities and equipment held for mobilization when unused or used 20 percent or less of available work days.