10 U.S.C. § 8481 — Support of athletic and physical fitness programs

(a) Authority. (1) Contracts and cooperative agreements: The Secretary of the Navy may sign contracts and cooperative agreements with the Naval Academy Athletic Association ("the Association") to support the Naval Academy's athletic and physical fitness programs. Normally a law requires competitive bidding, but the Secretary may skip that and deal with the Association directly, on a sole-source basis. Even though another law usually limits what a cooperative agreement can buy, an agreement under this section may be used to get property or services that directly benefit the Naval Academy. (2) Leases: The Secretary may also lease or license property to the Association for the same purpose. Any such lease or license automatically counts as satisfying a specific legal condition that would otherwise need separate approval.

(b) Use of Navy personal property by the Association. The Secretary may let the Association use Navy personal property for free, to help run the Academy's athletic and fitness programs.

(c) Acceptance of support. (1) Support from the Association: Despite a law that normally limits accepting outside funds, the Secretary may accept money, supplies^*, and services from the Association for these programs. People who work for the Association are not treated as federal employees. (2) Funds from the NCAA: The Secretary may also accept funds from the National Collegiate Athletic Association for the same purpose. (3) Limitation: The Secretary must make sure this support never makes it look like the Navy, its employees, or service members cannot do their jobs fairly and honestly, and must not let it compromise the integrity of any Navy program.

(d) Retention and use of funds. Despite a law that would normally make unused funds expire, money the Navy receives under this section can be kept and used for the Academy's athletic and fitness programs until it is spent.

(e) Trademarks and service marks. (1) Licensing, marketing, and sponsorship agreements: An agreement under subsection (a)(1) may — with Department of the Navy approval, and consistent with two other named laws — let the Association enter licensing, marketing, and sponsorship deals using Naval Academy trademarks and service marks. (2) Limitations: No such deal is allowed if it would make it look like the Navy, its employees, or service members cannot act fairly, or if the Secretary decides it would hurt the integrity of any Navy program or the people in it.

(f) Service on Association Board of Control. The Association is an approved organization for which Navy personnel may be authorized, under two other named laws, to serve on its board.

(g) Conditions. The Navy may use these powers only as long as the Association keeps (1) its status as a nonprofit organization under section 501(c)(3) of the tax code, and follows this section, Maryland law, and its own constitution and bylaws; and (2) its sole purpose of supporting the Naval Academy's athletic and physical fitness programs.

(h) Association defined. In this section, "Association" means the Naval Academy Athletic Association.