MANAGEMENT OF WORKING-CAPITAL FUNDS.

SEC. 1011. MANAGEMENT OF WORKING-CAPITAL FUNDS. (a) Contracting for Capital Assets Procurement in Advance of Funds.—Section 2208 of title 10, United States Code, is amended by striking out subsection (k) and inserting in lieu thereof the following new subsection: “(k) (1) Subject to paragraph (2), a contract for the procurement of a capital asset financed by a working-capital fund may be awarded in advance of the availability of funds in the workingcapital fund for the procurement. “(2) Paragraph (1) applies to any of the following capital assets that have a development or acquisition cost of not less than $100,000: “(A) An unspecified minor military construction project under section 2805(c)(1) of this title. “(B) Automatic data processing equipment or software. “(C) Any other equipment. “(D) Any other capital improvement.”. (b) Use of Advance Billing.—Such section is further amended by adding at the end the following new subsection: “(l) (1) An advance billing of a customer of a working-capital fund may be made if the Secretary of the military department concerned submits to Congress written notification of the advance billing within 30 days after the end of the month in which the advanced billing was made. The notification shall include the following: “(A) The reasons for the advance billing.111 STAT. 1874 “(B) An analysis of the effects of the advance billing on military readiness. “(C) An analysis of the effects of the advance billing on the customer. “(2) The Secretary of Defense may waive the notification requirements of paragraph (1)— “(A) during a period war or national emergency; or “(B) to the extent that the Secretary determines necessary to support a contingency operation. “(3) In this subsection: “(A) The term ‘advance billing’, with respect to a workingcapital fund, means a billing of a customer by the fund, or a requirement for a customer to reimburse or otherwise credit the fund, for the cost of goods or services provided (or for other expenses incurred) on behalf of the customer that is rendered or imposed before the customer receives the goods or before the services have been performed. “(B) The term ‘customer’ means a requisitioning component or agency.”. (c) Fiscal Year Limitations.—(1) The total amount of advance billings for Department of the Navy working-capital funds and the Defense Business Operations Fund may not exceed— (A) $1,000,000,000 for fiscal year 1998; and (B) $800,000,000 for fiscal year 1999. (2) For purposes of paragraph (1), the term “advance billing” has the meaning given such term in section 2208(l)(3) of title 10, United States Code, as added by subsection (b).