§ 3136.
(b)
Funds Available for Account.—
The Defense Modernization Account shall consist of the following:
(1)
Amounts appropriated to the Defense Modernization Account for the costs of projects described in subsection (d)(1), and amounts reimbursed to the Defense Modernization Account under subsection (c)(1)(B)(ii) out of savings derived from such projects.
(2)
Amounts transferred to the Defense Modernization Account under subsection (c).
(d)
Authorized Use of Funds.—
Funds in the Defense Modernization Account may be used for the following purposes:
(1)
For paying the costs of any project that, in accordance with criteria prescribed by the Secretary concerned, is undertaken by the Secretary of a military department or the head of a Defense Agency or other element of the Department of Defense to reduce the life cycle cost of a new or existing system.
(2)
For increasing, subject to subsection (e), the quantity of items and services procured under an acquisition program in order to achieve a more efficient production or delivery rate.
(3)
For research, development, test, and evaluation, for procurement, and for sustainment activities necessary for paying costs of unforeseen contingencies that are approved by the milestone decision authority concerned, that could prevent an ongoing acquisition program from meeting critical schedule or performance requirements.
(4)
For paying costs of changes to program requirements or system configuration that are approved by the configuration steering board for a major defense acquisition program.
(5)
For procuring and integrating available commercial technologies and services to satisfy a joint urgent operational need, joint emergent operational need, or a validated service requirement.
(6)
For providing infrastructure to support Department goals of accelerating the fielding and adoption of new capabilities.
(g)
Availability of Funds by Appropriation.—
In addition to transfers under subsection (f), funds in the Defense Modernization Account may be made available for purposes set forth in subsection (d), but only to the extent authorized in an Act other than an appropriations Act. Funds deposited in the Defense Modernization Account shall remain available for obligation until the end of the third fiscal year that follows the fiscal year in which the amounts are deposited in the account.
(h)
Secretary To Act Through Comptroller.—
(1)
The Secretary of Defense shall carry out this section through the Under Secretary of Defense (Comptroller), who shall be authorized to implement this section through the issuance of any necessary regulations, policies, and procedures after consultation with the General Counsel and Inspector General of the Department of Defense.
(2)
The regulations prescribed under paragraph (1) shall, at a minimum, provide for—
(A)
the establishment and management of subaccounts for each of the military departments and Defense Agencies concerned for the use of funds in the Defense Modernization Account, consistent with each military department’s or Defense Agency’s deposits in the Account;
(B)
the submission of proposals by the Secretaries concerned or heads of Defense Agencies or other elements of the Department of Defense to the Comptroller for the use of Defense Modernization Account funds for purposes set forth in subsection (d);
(C)
the use of a competitive process for the evaluation of such proposals and the selection of programs, projects, and activities to be funded out of the Defense Modernization Account and subaccounts from among those proposed for such funding; and
(D)
the calculation of—
(i)
the savings to be derived from projects described in subsection (d)(1) that are to be funded out of the Defense Modernization Account; and
(ii)
the amounts to be reimbursed to the Defense Modernization Account out of such savings pursuant to subsection (c)(1)(B)(ii).
(Added [Pub. L. 104–106, div. A, title IX, § 912(a)(1)], Feb. 10, 1996, [110 Stat. 407], § 2216; amended [Pub. L. 106–65, div. A, title X, § 1067(1)], Oct. 5, 1999, [113 Stat. 774]; [Pub. L. 108–136, div. A, title X], §§ 1008(a)–(f)(1), 1043(b)(8), Nov. 24, 2003, [117 Stat. 1586], 1587, 1611; [Pub. L. 109–364, div. A, title X, § 1071(a)(16)], Oct. 17, 2006, [120 Stat. 2399]; [Pub. L. 113–66, div. A, title X, § 1084(a)(2)], Dec. 26, 2013, [127 Stat. 871]; [Pub. L. 114–328, div. A, title VIII, § 804], Dec. 23, 2016, [130 Stat. 2250]; [Pub. L. 116–92, div. A, title XVII, § 1731(a)(30)], Dec. 20, 2019, [133 Stat. 1814]; renumbered § 3136 and amended [Pub. L. 116–283, div. A, title XVIII], §§ 1809(g)(1), 1883(b)(2), Jan. 1, 2021, [134 Stat. 4161], 4294; [Pub. L. 117–263, div. A, title VIII, § 813],