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LegalText 10 U.S.C. § 7541 Army arsenals: treatment of unutilized or underutilized plant-capacity costs us united_states_code code_section 10 ARMED FORCES 763 PROCUREMENT 7541 10 U.S.C. § 7541 current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc10@119-100.zip /us/usc/t10/s7541 data/legal/raw/us/code/title-10/usc10.xml ac3f5b6ba0d41bb56c687f34e97c75371c4875250753b4636c3fc5e0a5c04b08 06a2679d38355c44f4219c983fdad34009233205d6ba271593a4c1b17a739ec1 f7897bb6617fa7f6a37b6da6e383f3a07deb8560a2439454ac71c7dffe8a777e 2026-07-04 official
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10 U.S.C. § 7541 - Army arsenals: treatment of unutilized or underutilized plant-capacity costs

Text

(a) Estimate of Costs.— The Secretary of the Army shall include in the budget justification documents submitted to Congress in support of the Presidents budget for a fiscal year submitted under section 1105 of title 31 an estimate of the funds to be required in that fiscal year to cover unutilized and underutilized plant-capacity costs at Army arsenals.

(b) Use of Funds.— Funds appropriated to the Secretary of the Army for a fiscal year to cover unutilized and underutilized plant-capacity costs at Army arsenals shall be used in such fiscal year only for such costs.

(c) Treatment of Costs.— (1) The Secretary of the Army shall not include unutilized and underutilized plant-capacity costs when evaluating the bid of an Army arsenal for purposes of the arsenals contracting to provide a good or service to a Government agency.

(2) When an Army arsenal is serving as a subcontractor to a private-sector entity with respect to a good or service to be provided to a Government agency, the cost charged by the arsenal shall not include unutilized and underutilized plant-capacity costs that are funded by a direct appropriation.

(d) Definitions.— In this section:

(1) The term “Army arsenal” means a Government-owned, Government-operated defense plant of the Department of the Army that manufactures weapons, weapon components, or both.

(2) The term “unutilized and underutilized plant-capacity costs” means the costs associated with operating and maintaining the facilities and equipment of an Army arsenal that the Secretary of the Army determines are required to be kept for mobilization needs, in those months in which the facilities and equipment are not used or are used only 20 percent or less of available work days.

(Added Pub. L. 106398, § 1 [[div. A], title III, § 342(a)], Oct. 30, 2000, 114 Stat. 1654, 1654A64, § 4541; renumbered § 7541, Pub. L. 115232, div. A, title VIII, § 808(d), Aug. 13, 2018, 132 Stat. 1839.)

Notes

Editorial Notes

Prior ProvisionsPrior sections 7541 to 7541b were renumbered sections 8761 to 8761b of this title, respectively.

Amendments2018—Pub. L. 115232 renumbered section 4541 of this title as this section.

Statutory Notes and Related Subsidiaries

Effective Date of 2018 AmendmentAmendment by Pub. L. 115232 effective Feb. 1, 2019, with provision for the coordination of amendments and special rule for certain redesignations, see section 800 of Pub. L. 115232, set out as a note preceding section 3001 of this title.