Page:United States Statutes at Large Volume 98 Part 3.djvu/142

 98 STAT. 2514 22 USC 2778.

PUBLIC LAW 98-525—OCT. 19, 1984

Arms Export Control Act to items which incorporate or are produced through the use of an article sold under this subsection, "(j) The Secretary of Defense shall provide that of the total amount of payments received in a fiscal year by funds established under this section for industrial-type activities, not less than 3 percent during fiscal year 1985, not less than 4 percent during fiscal year 1986, and not less than 5 percent during fiscal year 1987 shall be used for the acquisition of capital equipment for such activities.". ADMINISTRATIVE TRANSITION PROVISION FOR NAVY STOCK FUND MANAGEMENT CHANGE

SEC. 306. (a) In the management of the Navy Stock Fund established under section 2208 of title 10, United States Code, the Secretary of the Navy may provide for a withdrawal credit to be made by the stock fund to the current applicable appropriation accounts of an activity of the Navy in connection with the acquisition by that activity from the stock fund of supplies described in subsection (b). The amount of any such credit shall be the amount of the charge of the stock fund to the activity for the supplies. (b) Subsection (a) applies in the case of the acquisition by an activity of the Navy from the Navy Stock Fund of supplies— (1) that are aircraft components (or that are used in connection with aviation activities) that are repairable only at a repair depot; and (2) that are capitalized into the Navy Stock Fund as a result of the management change effective on April 1, 1985, relating to depot-level repairable assets and that are charged to an activity of the Navy that is a customer of the Navy Stock Fund. (c) A withdrawal credit may be made under this section without regard to the last sentence of section 2208(g) of title 10, United States Code. LIMITATION ON CONTRACTING-OUT CORE LOGISTICS FUNCTIONS Defense and national security. 10 USC 2304 note.

Waiver.

Regulations.

SEC. 307. (a)(1) It is essential for the national defense that Department of Defense activities maintain a logistics capability (including personnel, equipment, and facilities) to ensure a ready and controlled source of technical competence and resources necessary to ensure effective and timely response to a mobilization, national defense contingency situations, and other emergency requirements. (2) The Secretary of Defense shall identify those logistics activities that are necessary to maintain the logistics capability described in paragraph (1). 01)X1) Except as provided in paragraph (2), performance of a logistics activity identified by the Secretary under subsection (a)(2) may not be contracted for performance by non-Government personnel under the procedures and requirements of Office of Management and Budget Circular A-76 or any successor administrative regulation or policy (hereinafter in this section referred to as "OMB Circular A-76"). (2) The Secretary of Defense may waive paragraph (1) in the case of any logistics activity and provide that performance of such activity shall be considered for conversion to contractor performance in accordance with OMB Circular A-76. Any such waiver shall be made under regulations prescribed by the Secretary and shall be based on a determination by the Secretary that Government per-

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