Study and report on effects of Defense Logistics Agency class IX recovery rates on military depots and arsenals

(a) Study Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense, in coordination with the Director of the Defense Logistics Agency and each Secretary of a military department, shall conduct a study on— (1) the methodology used by Defense Logistics Agency to establish class IX recovery rates; and (2) the effects such rates have on the organic industrial base, with emphasis on military depots and arsenals. (b) Elements The study required by subsection (a) shall address each of the following: (1) The methodology used by the Defense Logistics Agency to set recovery rates for class IX items for all customers. (2) How class IX recovery rates affect the cost structures, budgeting, and execution of workload at military depots and arsenals. (3) Any differences between the effects of recovery rates on depot-level maintenance compared to other customers of the Defense Logistics Agency. (4) Any unintended consequences resulting from such cost recovery practices, including delays, cost overruns, or degraded readiness in depot and arsenal operations. (5) Recommendations for improving alignment between Defense Logistics Agency pricing policies and the sustainment, affordability, and readiness goals of military depots and arsenals. (c) Report Not later than 270 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report on the findings of the study required under subsection (a), which shall include the recommendations of the Secretary for any legislative or policy changes to address the matters addressed by the study.