10 U.S.C. § 2216
Section 2216 · Defense Modernization Account
Current version, with additions and removals from the February 10, 1996 version.
(a) Establishment.—There is established in the Treasury an account to be known as the “Defense Modernization Account”.
(a) Establishment.—There is established in the Treasury an account to be known as the "Defense Modernization Account".
(b) Funds Available for Account.—The Defense Modernization Account shall consist of the following:
(1) Amounts appropriated to the Defense Modernization Account for the costs of projects described in subsection (d)(1), and amounts reimbursed to the Defense Modernization Account under subsection (c)(1)(B)(ii) out of savings derived from such projects.
(2) Amounts transferred to the Defense Modernization Account under subsection (c).
(ii) Unexpired funds that are available during the final 30 days of a fiscal year for support of installations and facilities and that, as a result of economies, efficiencies, and other savings, are excess to the requirements for support of installations and facilities.
(ii) Unexpired funds in appropriations accounts that are available for procurement or operation and maintenance of a system, if and to the extent that savings are achieved for such accounts through reductions in life cycle costs of such system that result from one or more projects undertaken with respect to such systems with funds made available from the Defense Modernization Account under subsection (b)(1).
(C) Any transfer under subparagraph (A) shall be made under regulations prescribed by the Secretary of Defense.
(C) Any transfer under subparagraph (A) shall be made under regulations prescribed by the Secretary of Defense.
(A) the funds are necessary for programs, projects, and activities that, as determined by the Secretary, have a higher priority than the purposes for which the funds would be available if transferred to that account; or
(B) the balance of funds in the account, after transfer of funds to the account, would exceed $1,000,000,000.
(4) The period of availability of funds for expenditure provided for in sections 1551 and 1552 of title 31 may not be extended by transfer into the Defense Modernization Account.
(c) Scope of Use of Funds.—Funds transferred to the Defense Modernization Account from funds appropriated for a military department, Defense Agency, or other element of the Department of Defense shall be available in accordance with subsections (f) and (g) only for transfer to funds available for that military department, Defense Agency, or other element.
(1) For paying the costs of any project that, in accordance with criteria prescribed by the Secretary concerned, is undertaken by the Secretary of a military department or the head of a Defense Agency or other element of the Department of Defense to reduce the life cycle cost of a new or existing system.
(2) For research, development, test, and evaluation and for procurement necessary for modernization of an existing system or of a system being procured under an ongoing procurement program.
(3) For research, development, test, and evaluation, for procurement, and for sustainment activities necessary for paying costs of unforeseen contingencies that are approved by the milestone decision authority concerned, that could prevent an ongoing acquisition program from meeting critical schedule or performance requirements.
(4) For paying costs of changes to program requirements or system configuration that are approved by the configuration steering board for a major defense acquisition program.
(A) result in procurement of a total quantity of items or services in excess of—
(A) result in procurement of a total quantity of items or services in excess of—
(i) a specific limitation provided by law on the quantity of the items or services that may be procured; or
(i) a specific limitation provided by law on the quantity of the items or services that may be procured; or
(ii) the requirement for the items or services as approved by the Joint Requirements Oversight Council and reported to Congress by the Secretary of Defense; or
(ii) the requirement for the items or services as approved by the Joint Requirements Oversight Council and reported to Congress by the Secretary of Defense; or
(3) Funds may not be transferred from the Defense Modernization Account in any year for the purpose of—
(3) Funds may not be transferred from the Defense Modernization Account in any year for the purpose of—
(A) making an expenditure for which there is no corresponding obligation; or
(A) making an expenditure for which there is no corresponding obligation; or
(B) making an expenditure that would satisfy an unliquidated or unrecorded obligation arising in a prior fiscal year.
(B) making an expenditure that would satisfy an unliquidated or unrecorded obligation arising in a prior fiscal year.
(2) Funds in the Defense Modernization Account may not be transferred under paragraph (1) until 30 days after the date on which the Secretary concerned notifies the congressional defense committees in writing of the amount and purpose of the proposed transfer.
(2) Funds in the Defense Modernization Account may not be transferred under paragraph (1) until 30 days after the date on which the Secretary concerned notifies the congressional defense committees in writing of the amount and purpose of the proposed transfer.
(3) The total amount of transfers from the Defense Modernization Account during any fiscal year under this subsection may not exceed $500,000,000.
(3) The total amount of transfers from the Defense Modernization Account during any fiscal year under this subsection may not exceed $500,000,000.
(i) Quarterly Reports.—(1) Not later than 15 days after the end of each calendar quarter, the Secretary of Defense shall submit to the congressional committees specified in paragraph (2) a report on the Defense Modernization Account. Each such report shall set forth the following:
(A) The amount and source of each credit to the account during that quarter.
(B) The amount and purpose of each transfer from the account during that quarter.
(C) The balance in the account at the end of the quarter and, of such balance, the amount attributable to transfers to the account from each Secretary concerned.
(2) The committees referred to in paragraph (1) are the congressional defense committees and the Committee on Governmental Affairs of the Senate and the Committee on Government Reform and Oversight of the House of Representatives.
(2) The regulations prescribed under paragraph (1) shall, at a minimum, provide for—
(A) the establishment and management of subaccounts for each of the military departments and Defense Agencies concerned for the use of funds in the Defense Modernization Account, consistent with each military department's or Defense Agency's deposits in the Account;
(B) the submission of proposals by the Secretaries concerned or heads of Defense Agencies or other elements of the Department of Defense to the Comptroller for the use of Defense Modernization Account funds for purposes set forth in subsection (d);
(C) the use of a competitive process for the evaluation of such proposals and the selection of programs, projects, and activities to be funded out of the Defense Modernization Account and subaccounts from among those proposed for such funding; and
(D) the calculation of—
(i) the savings to be derived from projects described in subsection (d)(1) that are to be funded out of the Defense Modernization Account; and
(ii) the amounts to be reimbursed to the Defense Modernization Account out of such savings pursuant to subsection (c)(1)(B)(ii).
(1) The term “Secretary concerned” includes the Secretary of Defense with respect to Defense-wide appropriations accounts.
(1) The term "major defense acquisition program" has the meaning given the term in section 2430(a) of this title.
(2) The term “unexpired funds” means funds appropriated for a definite period that remain available for obligation.
(2) The term "unexpired funds" means funds appropriated for a definite period that remain available for obligation.
(3) The term “congressional defense committees” means—
(A) the Committee on Armed Services and the Committee on Appropriations of the Senate; and
(B) the Committee on National Security and the Committee on Appropriations of the House of Representatives.
(j) Expiration of Authority and Account.—(1) The authority under subsection (c) to transfer funds into the Defense Modernization Account terminates at the close of September 30, 2022.
(2) Three years after the termination date specified in paragraph (1), the Defense Modernization Account shall be closed and any remaining balance in the account shall be canceled and thereafter shall not be available for any purpose.