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Establishment of Civil Reserve Industrial Base

Division A · Title III: Operation and Maintenance · Subtitle C: Logistics and Sustainment

Plain-language summaryAI

The Department of Defense will create a program to partner with commercial facilities that provide repair, maintenance, and supply services to support military operations. These partnerships will help ensure that equipment and parts are available and ready during both peacetime and emergencies by using commercial capabilities in the areas where military commands operate, including allied countries. The Secretary of Defense must also report to Congress within a year on how the program is set up, the facilities involved, benefits, challenges, and any needed changes to support the program.

AI-generated from this section’s text — a quick orientation, not a substitute for the full text below. Not legal advice.

Section Text · Sec. 323.

(a) In general

Chapter 131 of title 10, United States Code, is amended by inserting after section 2224a the following new section:

2224b. Civil Reserve Industrial Base

(a) In general

The Secretary of Defense, acting through the Under Secretary of Defense for Acquisition and Sustainment, shall establish the Civil Reserve Industrial Base program under which the Secretary shall enter into agreements under subsection (c) with covered commercial facilities—

(1)

to enhance the availability and responsiveness of sustainment and repair capabilities in support of military operations; and

(2)

to strengthen the collaboration during peacetime between the Department of Defense and the defense industrial base in theater by leveraging the capacity of covered commercial facilities and the co-sustainment capabilities of allies and partners of the United States, including through the assignment of recurring low-volume or mid-volume workloads, to ensure the availability of logistics, sustainment, and repair surge capacity during contingency operations.

(b) Program elements

In carrying out this section, the Secretary shall—

(1)

identify covered commercial facilities that are located within the area of operations of each of the geographic combatant commands, including facilities in allied and partner nations;

(2)

develop arrangements to store, maintain, and manage replenishment parts and related equipment at covered commercial facilities identified under paragraph (1) that enter into agreements with the Secretary under subsection (c);

(3)

enter into agreements under subsection (c) with such facilities under which such facilities agree to provide peacetime workload or sustainment activities or receive other incentives to ensure such facilities and personnel employed by such facilities remain qualified, ready, and available to support contingency operations; and

(4)

integrate the participating facilities and the capabilities such facilities provide into the product support strategy developed in accordance with section 4324 of this title, other relevant sustainment planning, logistics posture efforts, and the operational plans of the geographic combatant commands.

(c) Agreements

In carrying out this section, the Secretary of Defense may enter into contracts, grants, cooperative agreements, or other appropriate agreements with covered commercial facilities under which such facilities agree to provide for the storage, maintenance, repair, overhaul, and distribution of replenishment parts and related equipment. An agreement under this subsection may—

(1)

provide for the use of commercial facilities and personnel during peacetime and contingency operations;

(2)

include terms addressing force protection, continuity of operations, and security requirements;

(3)

provide for the sustainment of capability through recurring peacetime workload, as appropriate;

(4)

provide for support for commercial entities headquartered in the United States in order to provide surge operational support when required by the Secretary; and

(5)

support and encourage the negotiation of voluntary license agreements directly between original equipment manufacturers and third parties in accordance with section 3771(b)(9)(C) of this title.

(d) Contractor and subcontractor technical data

Sections 3771 through 3775 of this title shall apply to contractor and subcontractor technical data in contracts or agreements entered into under this section.

(e) Definitions

In this section:

(1)

The term covered commercial facility means a commercial facility owned by a United States entity that is capable of providing one or more of the following:

(A)

Warehousing and secure storage.

(B)

Supply chain management and distribution.

(C)

Maintenance, repair, and overhaul.

(D)

Repairable management, component repair, and test capability.

(E)

Other sustainment-related capabilities identified by the Secretary.

(2)

The term replenishment parts means repair parts, components, or other items to support the sustainment of Department of Defense systems and equipment through replacement, repair, or overhaul.

(b) 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 on the implementation of section 2224b of title 10, United States Code, as added by subsection (a). Such report shall include each of the following:

(1)

A description of the structure and governance of the Civil Reserve Industrial Base program, as established by such section.

(2)

A description of the types of covered commercial facilities and capabilities identified under subsection (b)(1) of such section, including the number of such facilities identified that are located in the area of operations of each of geographic combatant commands.

(3)

An assessment of the sustainment, readiness, and resiliency benefits of leveraging commercial facilities for in-theater replenishment parts storage and maintenance, including the expected effect on time-to-repair and time-to-resupply for key platforms.

(4)

A description of the contracting mechanisms, incentives, or public-private partnership authorities required to enable recurring peacetime use by the Department of Defense of covered commercial facilities under the Civil Reserve Industrial Base program.

(5)

A description of any force protection, operational security, or continuity-of-operations requirements applicable to covered commercial facilities participating in the Civil Reserve Industrial Base in the event of conflict.

(6)

An identification of statutory, regulatory, or policy barriers that limit the ability of the Department to implement the Civil Reserve Industrial Base, including barriers related to contracting, logistics policy, or cross-border sustainment.

(7)

Any recommendations for additional authorities needed to expand or sustain the Civil Reserve Industrial Base.