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<PRE>[DOCID: f:s581is.txt]






107th CONGRESS
  1st Session
                                 S. 581

 To amend title 10, United States Code, to authorize Army arsenals to 
 undertake to fulfill orders or contracts for articles or services in 
     advance of the receipt of payment under certain circumstances.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 20, 2001

Mr. Fitzgerald (for himself and Mrs. Clinton) introduced the following 
   bill; which was read twice and referred to the Committee on Armed 
                                Services

_______________________________________________________________________

                                 A BILL


 
 To amend title 10, United States Code, to authorize Army arsenals to 
 undertake to fulfill orders or contracts for articles or services in 
     advance of the receipt of payment under certain circumstances.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. PERFORMANCE OF ORDERS FOR ARTICLES OR SERVICES BY ARMY 
              ARSENALS BEFORE RECEIPT OF PAYMENT.

    (a) Authority.--(1) Chapter 433 of title 10, United States Code, is 
amended by inserting after section 4541 the following new section:
``Sec. 4541a. Army arsenals: performance before receipt of payment
    ``(a) Authority.--Regulations under section 2208(h) of this title 
shall authorize the Army arsenals to undertake, with working-capital 
funds, to fulfill orders or contracts of customers referred to in 
subsection (b) for articles or services in advance of the receipt of 
payment for the articles or services.
    ``(b) Transactions to Which Applicable.--The authority provided in 
subsection (a) applies with respect to an order or contract for 
articles or services that is placed or entered into, respectively, with 
an arsenal by a customer that--
            ``(1) is--
                    ``(A) a department or agency of the United States;
                    ``(B) a person using the articles or services in 
                fulfillment of a contract of a department or agency of 
                the United States; or
                    ``(C) a person supplying the articles or services 
                to a foreign government under sections 22, 23, and 24 
                of the Arms Export Control Act (22 U.S.C. 2762, 2763, 
                2764); and
            ``(2) is eligible under any other provision of law to 
        obtain the articles or services from the arsenal.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 4541 the 
following new item:

``4541a. Army arsenals: performance before receipt of payment.''.
    (b) Regulations.--The Secretary of Defense shall prescribe the 
regulations to carry out section 4541a of title 10, United States Code 
(as added by subsection (a)), not later than 60 days after the date of 
the enactment of this Act.
                                 &lt;all&gt;

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