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50 U.S.C. § 98eStockpile management

submitted 87 years ago by Pub. L. 96-41 to r/title-50-WAR-AND-NATIONAL-DEFENSE · 1,238 words · no verdicts yet

in plain englishAI-generated · not legal advice

This section spells out how the National Defense Stockpile Manager runs the stockpile — buying, storing, rotating, and disposing of materials — and sets rules for competitive bidding, bartering, leases, and loans. It also creates a pilot program for commercial best practices and requires the recovery program to aim for positive cash flow.

(a) The National Defense Stockpile Manager must: (1) acquire the materials the President determined under section 98b(a) are strategic and critical; (2) properly store, secure, and maintain stockpile materials; (3) upgrade, refine, or process any stockpile material — even beyond any set intermediate quantity — when needed to make it more suitable for storage, later use, or immediate use in a national emergency; (4) rotate any stockpile material when needed to stop it from decaying or becoming outdated, by swapping in an equal amount of the same or better material; (5) recover strategic and critical materials that other federal agencies might have, whether as raw materials or embedded in excess, end-of-life items, or waste; (6) — subject to the notice required by subsection (d)(2) — dispose promptly of stockpile materials that are more than the stockpile needs and that might cause a loss to the government if left to deteriorate; and (7) dispose of stockpile materials according to the most recent annual materials plan sent to Congress, and notify Congress of those disposals as section 98d(b)(2) requires. (b) Except as subsections (c) and (d) allow, the Stockpile Manager must acquire strategic and critical materials using standard federal procurement practices. Except as subsections (c), (d), and section 98f(a) allow, disposals must follow the next rule too: as much as possible, the Manager must (1) use competitive bidding for both acquisitions and disposals, and (2) consult with producers and processors of the materials to avoid disrupting their usual markets and to protect the United States from avoidable loss. (c) Barter rules: (1) The President should encourage using barter — trading goods instead of money — to acquire materials under (a)(1) or to dispose of materials under (a)(6) or (a)(7), whenever barter is legal, practical, and in the United States' best interest. (2) If disposing of stockpile materials to pay for upgrading, refining, or processing other stockpile materials is authorized under paragraph (3) or otherwise by law, those materials can be transferred at fair market value to pay the costs — including transportation — of acquiring, upgrading, refining, processing, or rotating other materials. (3) Despite section 98b(c) or any other law, if the President is upgrading, refining, or processing a stockpile material under subsection (a)(3) to make it more useful in an emergency, the President can barter part of that same material — or any other stockpile material authorized for disposal — to pay for that work. (4) To the extent the law otherwise allows, the government can trade property it owns for materials the stockpile needs. (d) Waivers and notice: (1) The President can waive any rule in the first sentence of subsection (b) for a specific acquisition or disposal. Whenever the President does that — or decides that following paragraph (1) or (2) of that subsection isn't feasible for a specific deal — the President must notify the Senate and House Armed Services Committees in writing at least 30 days before the government commits to the deal, and must explain in that notice why the rule wasn't followed. (2) Materials can only be disposed of under subsection (a)(6) if those same congressional committees get written notice of the proposed disposal at least 30 days before the government commits to it. (e) The President can lease property — for up to twenty years — to store, secure, and maintain stockpile materials. (f) The President can loan stockpile materials to the Department of Energy or a military department, but only if the President (1) has reasonable assurance that similar or better materials will be returned to the stockpile, or paid for; (2) notifies the congressional defense committees in writing at least 30 days before making the loan; and (3) includes in that notice enough support for the assurance described in (1). (g) Pilot program for commercial best practices: (1) The Stockpile Manager must create a pilot program to use commercial best practices, as much as practical, when acquiring and disposing of stockpile materials. (2)(A) The Stockpile Manager must brief the congressional defense committees soon after starting the pilot program, and then every year until it ends. (B) The first briefing must cover which commercial best practices were chosen, how they were chosen, and the plan for using them. (C) Each later yearly briefing must summarize how the practices were used that year, how many times, the outcome each time, and any savings or lessons learned. (3) The pilot program ends five years after December 22, 2023. (h) Except when national defense requires otherwise, the Stockpile Manager must run each material-recovery program under subsection (a)(5) in a way designed to achieve positive cash flow.
the actual law source: uscode.house.gov ↗public domain
(a) Presidential powers

The National Defense Stockpile Manager shall—

(1)

acquire the materials determined under section 98b(a) of this title to be strategic and critical materials;

(2)

provide for the proper storage, security, and maintenance of materials in the stockpile;

(3)

provide for the upgrading, refining, or processing of any material in the stockpile (notwithstanding any intermediate stockpile quantity established for such material) when necessary to convert such material into a form more suitable for storage, subsequent disposition, and immediate use in a national emergency;

(4)

provide for the rotation of any material in the stockpile when necessary to prevent deterioration or technological obsolescence of such material by replacement of such material with an equivalent quantity of substantially the same material or better material;

(5)

provide for the appropriate recovery of any strategic and critical materials under section 98b(a) of this title that may be available from other Federal agencies, either directly as materials or embedded in excess-to-need, end-of-life items, or waste streams;

(6)

subject to the notification required by subsection (d)(2), provide for the timely disposal of materials in the stockpile that (A) are excess to stockpile requirements, and (B) may cause a loss to the Government if allowed to deteriorate; and

(7)

dispose of materials in the stockpile in accordance with the most recent annual materials plan submitted to the congressional defense committees (as defined in section 101(a) of title 10) under section 98h–2(b)(1)(G) of this title and notify the congressional defense committees of such disposals as required by section 98d(b)(2) of this title.

(b) Federal procurement practices

Except as provided in subsections (c) and (d), acquisition of strategic and critical materials under this subchapter shall be made in accordance with established Federal procurement practices, and, except as provided in subsections (c) and (d) and in section 98f(a) of this title, disposal of strategic and critical materials from the stockpile shall be made in accordance with the next sentence. To the maximum extent feasible—

(1)

competitive procedures shall be used in the acquisition and disposal of such materials; and

(2)

efforts shall be made in the acquisition and disposal of such materials to consult with producers and processors of such materials to avoid undue disruption of the usual markets of producers, processors, and consumers of such materials and to protect the United States against avoidable loss.

(c) Barter; use of stockpile materials as payment for expenses of acquiring, refining, processing, or rotating materials
(1)

The President shall encourage the use of barter in the acquisition under subsection (a)(1) of strategic and critical materials for, and the disposal under subsection (a)(6) or (a)(7) of materials from, the stockpile when acquisition or disposal by barter is authorized by law and is practical and in the best interest of the United States.

(2)

Materials in the stockpile (the disposition of which is authorized by paragraph (3) to finance the upgrading, refining, or processing of a material in the stockpile, or is otherwise authorized by law) shall be available for transfer at fair market value as payment for expenses (including transportation and other incidental expenses) of acquisition of materials, or of upgrading, refining, processing, or rotating materials, under this subchapter.

(3)

Notwithstanding section 98b(c) of this title or any other provision of law, whenever the President provides under subsection (a)(3) for the upgrading, refining, or processing of a material in the stockpile to convert that material into a form more suitable for storage, subsequent disposition, and immediate use in a national emergency, the President may barter a portion of the same material (or any other material in the stockpile that is authorized for disposal) to finance that upgrading, refining, or processing.

(4)

To the extent otherwise authorized by law, property owned by the United States may be bartered for materials needed for the stockpile.

(d) Waiver; notification of proposed disposal of materials
(1)

The President may waive the applicability of any provision of the first sentence of subsection (b) to any acquisition of material for, or disposal of material from, the stockpile. Whenever the President waives any such provision with respect to any such acquisition or disposal, or whenever the President determines that the application of paragraph (1) or (2) of such subsection to a particular acquisition or disposal is not feasible, the President shall notify the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives in writing of the proposed acquisition or disposal at least 30 days before any obligation of the United States is incurred in connection with such acquisition or disposal and shall include in such notification the reasons for not complying with any provision of such subsection.

(2)

Materials in the stockpile may be disposed of under subsection (a)(6) only if such congressional committees are notified in writing of the proposed disposal at least 30 days before any obligation of the United States is incurred in connection with such disposal.

(e) Leasehold interests in property

The President may acquire leasehold interests in property, for periods not in excess of twenty years, for storage, security, and maintenance of materials in the stockpile.

(f) Loan of stockpile materials

The President may loan stockpile materials to the Department of Energy or the military departments if the President—

(1)

has a reasonable assurance that stockpile materials of a similar or superior quantity and quality to the materials loaned will be returned to the stockpile or paid for;

(2)

notifies the congressional defense committees (as defined in section 101(a) of title 10), in writing, not less than 30 days before making any such loan; and

(3)

includes in the written notification under paragraph (2) sufficient support for the assurance described in paragraph (1).

(g) Pilot program to use commercial best practices in acquiring and disposing of strategic and critical materials
(1)

The National Defense Stockpile Manager shall establish a pilot program to use, to the maximum extent practicable, commercial best practices in the acquisition and disposal of strategic and critical materials for the stockpile.

(2)
(A)

The Stockpile Manager shall brief the congressional defense committees (as defined in section 101(a) of title 10)—

(i)

as soon as practicable after the establishment of the pilot program under paragraph (1); and

(ii)

annually thereafter until the termination of the pilot program under paragraph (3).

(B)

The briefing required by subparagraph (A)(i) shall address—

(i)

the commercial best practices selected for use under the pilot program;

(ii)

how the Stockpile Manager determined which commercial best practices to select; and

(iii)

the plan of the Stockpile Manager for using such practices.

(C)

Each briefing required by subparagraph (A)(ii) shall provide a summary of—

(i)

how the Stockpile Manager has used commercial best practices under the pilot program during the year preceding the briefing;

(ii)

how many times the Stockpile Manager has used such practices;

(iii)

the outcome of each use of such practices; and

(iv)

any savings achieved or lessons learned as a result of the use of such practices.

(3)

The pilot program established under paragraph (1) shall terminate effective on the date that is 5 years after December 22, 2023.

(h) Ensuring programs achieve positive cash flow

Except to the extent necessary for the national defense, the National Defense Stockpile Manager shall ensure that each program for the recovery of strategic and critical materials implemented under subsection (a)(5) operates in a manner designed to achieve positive cash flow.

Source credit: (June 7, 1939, ch. 190, § 6, as added Pub. L. 96–41, § 2(a), July 30, 1979, 93 Stat. 321; amended Pub. L. 97–35, title II, § 203(c), Aug. 13, 1981, 95 Stat. 382; Pub. L. 99–661, div. C, title II, § 3207(b), Nov. 14, 1986, 100 Stat. 4069; Pub. L. 101–189, div. C, title XXXIII, § 3314, Nov. 29, 1989, 103 Stat. 1688; Pub. L. 101–510, div. C, title XXXIII, § 3301(a), (b), Nov. 5, 1990, 104 Stat. 1844; Pub. L. 102–190, div. C, title XXXIII, § 3312, Dec. 5, 1991, 105 Stat. 1584; Pub. L. 103–337, div. C, title XXXIII, § 3302, Oct. 5, 1994, 108 Stat. 3098; Pub. L. 104–106, div. A, title XV, § 1502(e)(1), Feb. 10, 1996, 110 Stat. 509; Pub. L. 104–201, div. C, title XXXIII, § 3312(b), (c), Sept. 23, 1996, 110 Stat. 2857; Pub. L. 105–85, div. C, title XXXIII, § 3306, Nov. 18, 1997, 111 Stat. 2058; Pub. L. 106–65, div. A, title X, § 1067(13), Oct. 5, 1999, 113 Stat. 775; Pub. L. 113–66, div. A, title XIV, § 1411(a), Dec. 26, 2013, 127 Stat. 934; Pub. L. 117–81, div. A, title XIV, §§ 1411(1), 1412, Dec. 27, 2021, 135 Stat. 2018; Pub. L. 118–31, div. A, title XIV, § 1411(b), Dec. 22, 2023, 137 Stat. 523; Pub. L. 119–60, div. A, title XIV, § 1411(b)(2), (c), Dec. 18, 2025, 139 Stat. 1135.)

history & why it existsrecord from the source credit
  • 1939Enacted · Pub. L. 96-41 · 93 Stat. 321
  • 1981Amended · Pub. L. 97-35 · 95 Stat. 382
  • 1986Amended · Pub. L. 99-661 · 100 Stat. 4069
  • 1989Amended · Pub. L. 101-189 · 103 Stat. 1688
  • 1990Amended · Pub. L. 101-510 · 104 Stat. 1844
  • 1991Amended · Pub. L. 102-190 · 105 Stat. 1584
  • 1994Amended · Pub. L. 103-337 · 108 Stat. 3098
  • 1996Amended · Pub. L. 104-106 · 110 Stat. 509
  • 1996Amended · Pub. L. 104-201 · 110 Stat. 2857
  • 1997Amended · Pub. L. 105-85 · 111 Stat. 2058
  • 1999Amended · Pub. L. 106-65 · 113 Stat. 775
  • 2013Amended · Pub. L. 113-66 · 127 Stat. 934
  • 2021Amended · Pub. L. 117-81 · 135 Stat. 2018
  • 2023Amended · Pub. L. 118-31 · 137 Stat. 523
  • 2025Amended · Pub. L. 119-60 · 139 Stat. 1135

A history note hasn’t been published yet. The record shows enactment by Pub. L. 96-41 on 1939-06-07.

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