---
kind: "section"
citation: "10 U.S.C. § 7541"
title: "10"
title_heading: "Armed Forces"
number: "7541"
heading: "Army arsenals: treatment of unutilized or underutilized plant-capacity costs"
release: "119-102"
url: "https://uscodex.org/usc/10/7541"
units:
  - "Subtitle B — Army"
  - "Part IV — Service, Supply, and Procurement"
  - "Chapter 763 — Procurement"
---

# §7541. Army arsenals: treatment of unutilized or underutilized plant-capacity costs

- (a) **Estimate of Costs.—** The Secretary of the [Army](/usc/10/7001.md) shall include in the [budget](/usc/10/236.md?p=c-1) justification documents submitted to Congress in support of the President’s [budget](/usc/10/236.md?p=c-1) for a fiscal year submitted under [section 1105 of title 31](/usc/31/1105.md) an estimate of the [funds](/usc/10/2871.md?p=6) to be required in that fiscal year to cover [unutilized and underutilized plant-capacity costs](#d-2) at [Army arsenals](#d-1).
- (b) **Use of Funds.—** [Funds](/usc/10/2871.md?p=6) appropriated to the Secretary of the [Army](/usc/10/7001.md) for a fiscal year to cover [unutilized and underutilized plant-capacity costs](#d-2) at [Army arsenals](#d-1) shall be used in such fiscal year only for such costs.
- (c) **Treatment of Costs.—**
  - (1) The Secretary of the [Army](/usc/10/7001.md) shall not include [unutilized and underutilized plant-capacity costs](#d-2) when evaluating the bid of an [Army arsenal](#d-1) for purposes of the arsenal’s contracting to provide a good or service to a Government [agency](/usc/10/4701.md?p=g-1).
  - (2) When an [Army arsenal](#d-1) is serving as a subcontractor to a private-sector entity with respect to a good or service to be provided to a Government [agency](/usc/10/4701.md?p=g-1), the cost charged by the arsenal shall not include [unutilized and underutilized plant-capacity costs](#d-2) 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](/usc/10/101.md?p=a-6) of the [Army](/usc/10/7001.md) 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](/usc/10/227.md?p=b-2) and equipment of an [Army arsenal](#d-1) that the Secretary of the [Army](/usc/10/7001.md) determines are required to be kept for mobilization needs, in those months in which the [facilities](/usc/10/227.md?p=b-2) and equipment are not used or are used only 20 percent or less of available work days.

## Source credit

(Added Pub. L. 106–398, § 1 [[div. A], title III, § 342(a)], Oct. 30, 2000, 114 Stat. 1654, 1654A–64, § 4541; renumbered § 7541, Pub. L. 115–232, div. A, title VIII, § 808(d), Aug. 13, 2018, 132 Stat. 1839.)

## Notes

### Editorial Notes

### Prior Provisions

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

### Amendments

2018—Pub. L. 115–232 renumbered section 4541 of this title as this section.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2018 Amendment

Amendment by Pub. L. 115–232 effective Feb. 1, 2019, with provision for the coordination of amendments and special rule for certain redesignations, see section 800 of Pub. L. 115–232, set out as a note preceding section 3001 of this title.