Page:United States Statutes at Large Volume 114 Part 3.djvu/104

 114 STAT. 1654A-62 PUBLIC LAW 106-398—APPENDIX (A) by inserting "of Defense" after "The Secretary"; and (B) by striking "depot-level activities" and inserting "Centers of Industrial and Technical Excellence"; and (3) in paragraph (3)— (A) by striking "depot-level operations" and inserting "operations at Centers of Industrial and Technical Excellence"; (B) by striking "depot-level activities" and inserting "the Centers"; and (C) by striking "such activities" and inserting "the Centers". (b) PUBLIC-PRIVATE PARTNERSHIPS. —Subsection (b) of such section is amended to read as follows: "(b) PUBLIC-PRIVATE PARTNERSHIPS.— (1) To achieve one or more objectives set forth in paragraph (2), the Secretary designating a Center of Industrial and Technical Excellence under subsection (a) may authorize and encourage the head of the Center to enter into public-private cooperative arrangements (in this section referred to as a 'public-private partnership') to provide for any of the following: "(A) For employees of the Center, private industry, or other entities outside the Department of Defense to perform (under contract, subcontract, or otherwise) work related to the core competencies of the Center, including any depot-level maintenance and repair work that involves one or more core competencies of the Center. "(B) For private industry or other entities outside the Department of Defense to use, for any period of time determined to be consistent with the needs of the Department of Defense, any facilities or equipment of the Center that are not fully utilized for a military department's own production or maintenance requirements. "(2) The objectives for exercising the authority provided in paragraph (1) are as follows: "(A) To maximize the utilization of the capacity of a Center of Industrial and Technical Excellence. "(B) To reduce or eliminate the cost of ownership of a Center by the Department of Defense in such areas of responsibility as operations and maintenance and environmental remediation. "(C) To reduce the cost of products of the Department of Defense produced or maintained at a Center. "(D) To leverage private sector investment in— "(i) such efforts as plant and equipment recapitalization for a Center; and "(ii) the promotion of the undertaking of commercial business ventures at a Center. "(E) To foster cooperation between the armed forces and private industry. "(3) If the Secretary concerned, or the Secretary of Defense in the case of a Defense Agency, authorizes the use of publicprivate partnerships under this subsection, the Secretary shall submit to Congress a report evaluating the need for loan guarantee authority, similar to the ARMS Initiative loan guarantee program under section 4555 of this title, to facilitate the establishment

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