AUTHORITY GOVERNING OPERATION OF WORKING-CAPITAL FUNDED ACTIVITIES

SEC. 801. AUTHORITY GOVERNING OPERATION OF WORKING-CAPITAL FUNDED ACTIVITIES Section 2208(i) of title 10, United States Code, is amended— (1) by redesignating paragraph (3) as paragraph (2); and (2) by striking out paragraphs (1) and (2) and inserting in lieu thereof the following new paragraph: “(1) Regulations under subsection (n) shall authorize a working capital funded Army industrial facility (including a Department of the Army arsenal) that manufactures large caliber cannons, gun mounts, recoil mechanisms, ammunition, munitions, or components thereof to sell manufactured articles or services to a person outside the Department of Defense if— “(A) in the case of an article, the article is sold to a United States manufacturer, assembler, developer, or other concern— “(i) for use in developing new products; “(ii) for incorporation into items to be sold to, or to be used in a contract with, an agency of the United States; “(iii) for incorporation into items to be sold to, or to be used in a contract with, or to be used for purposes of soliciting a contract with, a friendly foreign government; or “(iv) for use in commercial products; “(B) in the case of an article, the purchaser is determined by the Department of Defense to be qualified to carry out the proposed work involving the article to be purchased; “(C) the article or service is not readily available to the purchaser from a commercial source in the United States in a timely manner that meets the requirements of the purchaser; “(D) the sale is to be made on a basis that does not interfere with performance of work by the facility for the Department of Defense or for a contractor of the Department of Defense; and “(E) in the case of services, the services are related to an article authorized to be sold under this subsection and are to be performed in the United States for the purchaser.”.