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Reforms relating to Army organic industrial base

Division A · Title XVIII: Revitalization of the Defense Industrial Base · Subtitle C: Organic Industrial Base

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The Army must speed up the modernization of its own industrial facilities to better meet its needs, including improving production, updating management and funding structures, and enhancing workforce training. The Army is limited in reducing work at these depots without notifying Congress and providing a plan to maintain workforce levels. The Army must also regularly report to Congress on modernization progress, production activities, and future plans for these depots, while the Government Accountability Office will review the Army’s sustainment plans for new weapon systems.

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Section Text · Sec. 1863.
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(a) Modernization

Chapter 146 of title 10, United States Code, is amended by adding at the end the following new section:

2477. Modernization of organic industrial base of Department of the Army

(a) Modernization

The Secretary of the Army shall take such steps as may be necessary to accelerate the modernization of the organic industrial base of the Army to meet the requirements of the Army, including by carrying out the following:

(1)

Ensuring the production of additional materials by, or the expanded use of capabilities of, such organic industrial base.

(2)

Establishing an updated structure for the governance of such organic industrial base, under which—

(A)

decisions regarding resourcing and site operations overseen by the Army Materiel Command shall be delineated from, and reconciled with, workload and acquisition requirements overseen by the Assistant Secretary of the Army for Acquisition, Logistics, and Technology; and

(B)

the relationship between the Army Sustainment Command and the Joint Energetics Transition Office established under section 148 of this title shall be delineated with respect to such organic industrial base.

(3)

Establishing an updated resourcing model for such organic industrial base, for the purpose of—

(A)

reducing production costs associated with each covered Army depot; and

(B)

ensuring such costs are, to the maximum extent practicable, competitive with commercial capabilities.

(4)

Ensuring the updated resourcing model established under paragraph (3)—

(A)

details any modification to a working-capital fund of the Army necessary to achieve a purpose specified in such paragraph; and

(B)

accounts for the use of funds appropriated for the Army or relevant elements of the Department of Defense, including the Army Contracting Command, the Civilian Human Resources Agency of the Army, the Defense Finance and Accounting Service, and the Defense Information Systems Agency, or for base operating services.

(5)

Establishing key training pipelines, and desired throughput with respect to such pipelines, necessary to support each covered Army depot in accordance with this subsection, including by identifying appropriations necessary for such support.

(b) Limitation on actions to decrease workload

The Secretary of the Army may not carry out any action that would decrease the workload performed by any covered Army depot for a year by more than 10 percent as compared with the workload performed by that covered Army depot five years prior unless—

(1)

the Secretary of the Army submits to the congressional defense committees a notification that includes an explanation for such decrease and a plan to shift other workload requirements of the Army to the covered Army depot, to maintain workforce capability; and

(2)

a period of 30 days has elapsed following such notification.

(c) Reports on modernization efforts

Concurrent with the submission of each plan required by section 2473 of this title, the Secretary of the Army shall submit to the congressional defense committees a report detailing, with respect to the five-year period covered by the plan, the efforts of the Army over such period to modernize covered Army depots consistent with this section, including the criteria used to allocate funds available for such modernization between such depots.

(d) Annual report on certain activities

On an annual basis, the Secretary of the Army shall disseminate to each covered Army depot, and submit to the congressional defense committees, a report that includes—

(1)

with respect to the year preceding the date of the submission of the report, detailed information on—

(A)

the type and quantity of production activities and depot-level maintenance and repair activities performed by each such depot during such year; and

(B)

how such activities were coordinated with other production activities and depot-level maintenance and repair activities across the Department of Defense; and

(2)

with respect to the three-year period following the date of the submission of the report, a comprehensive plan for the production activities and depot-level maintenance and repair activities to be performed by each such depot during such period, including detailed information on—

(A)

the type and quantity of such activities;

(B)

how such activities would be coordinated with other production activities and depot-level maintenance and repair activities across the Department of Defense;

(C)

for each fiscal year within such period, how the projected use of funds for the depot-level maintenance and repair workload of each covered Army depot would contribute to the percentage limitation under section 2466 of this title; and

(D)

the current and projected needs of the Army, the other military departments, and foreign partners, that may be addressed through such activities.

(e) Definitions

In this section:

(1)

The term covered Army depot means a covered depot listed in section 2476(f)(1) of this title.

(2)

The term organic industrial base of the Army means each covered Army depot.

(b) Guidance

Not later than 180 days after the date of the enactment of this Act, the Secretary of the Army shall issue guidance to implement section 2477 of title 10, United States Code, as added by subsection (a).

(c) GAO review

(1) Review

The Comptroller General of the United States shall conduct a review of plans of the Army for sustainment with respect to the development and fielding of new weapon systems. Such review shall include the following:

(A)

An identification of key weapon systems expected to be fielded by the Army for the first time during the five-year period following the date of the commencement of such review.

(B)

An assessment of the plans of the Army for the maintenance and repair of, and the logistics, supply chain, and other sustainment functions for, such weapon systems.

(C)

An assessment of the extent to which the Army is developing and investing in the sustainment functions specified in subparagraph (B) concurrent with the fielding of such weapon systems.

(2) Briefing

Not later than April 1, 2027, the Comptroller General shall provide to the congressional defense committees a briefing on preliminary observations relating to the review under paragraph (1), including on planned reporting formats and schedules.

(3) Report

Not later than August 1, 2027, the Comptroller General shall submit to the congressional defense committees a report containing the results of the review under paragraph (1).