---
kind: "section"
citation: "10 U.S.C. § 4123"
title: "10"
title_heading: "Armed Forces"
number: "4123"
heading: "Mechanisms to provide funds for defense laboratories and test organizations for research and development of technologies for military missions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/10/4123"
units:
  - "Subtitle A — General Military Law"
  - "Part V — Acquisition"
  - "Subpart E — Research and Engineering"
  - "Chapter 303 — Research and Engineering Activities"
  - "Subchapter III — Research and Development Centers and Facilities"
---

# §4123. Mechanisms to provide funds for defense laboratories and test organizations for research and development of technologies for military missions

- (a) **Mechanisms to Provide Funds.—**
  - (1) The [Secretary](/usc/10/4951.md?p=3) of Defense, in consultation with the [Secretaries](/usc/10/4951.md?p=3) of the [military departments](/usc/10/101.md?p=a-8), shall establish mechanisms under which the director of a [defense laboratory](/usc/10/2199.md?p=1) or test organization may use an amount of funds equal to not less than two percent and not more than four percent of all funds available to the [defense laboratory](/usc/10/2199.md?p=1) or test organization for the following purposes:
    - (A) To fund innovative basic and applied research that is conducted at the [defense laboratory](/usc/10/2199.md?p=1) or test organization and supports [military](/usc/10/801.md?p=8) missions.
    - (B) To fund development [programs](/usc/10/2101.md?p=1) that support the transition of technologies developed by the [defense laboratory](/usc/10/2199.md?p=1) or test organization into operational use.
    - (C) To fund workforce development activities that improve the capacity of the [defense laboratory](/usc/10/2199.md?p=1) or test organization to recruit and retain personnel with necessary scientific and engineering expertise that support [military](/usc/10/801.md?p=8) missions.
    - (D) To fund the repair or minor [military construction](/usc/10/2801.md?p=a) of the laboratory or test organization infrastructure and equipment, in accordance with [subsection (b)](#b).
  - (2) The mechanisms established under [paragraph (1)](#a-1) shall provide that funding shall be used under [paragraph (1)](#a-1) at the discretion of the director of a [defense laboratory](/usc/10/2199.md?p=1) or test organization in consultation with the science and technology executive of the [military](/usc/10/801.md?p=8) [department](/usc/10/101.md?p=a-6) concerned.
  - (3) The science and technology executive of a [military](/usc/10/801.md?p=8) [department](/usc/10/101.md?p=a-6) may develop policies and guidance to leverage funding and promote cross-laboratory collaboration, including with laboratories or test organizations of other [military departments](/usc/10/101.md?p=a-8).
  - (4) After consultation with the science and technology executive of the [military](/usc/10/801.md?p=8) [department](/usc/10/101.md?p=a-6) concerned, the director of a [defense laboratory](/usc/10/2199.md?p=1) or test organization may charge customer activities a fixed percentage fee, in addition to normal costs of performance, in order to obtain funds to carry out activities authorized by this subsection. The fixed fee may not exceed four percent of costs.
- (b) **Availability of Funds for Infrastructure Projects.—** Funds shall be available in accordance with [subsection (a)(1)(D)](#a-1-D) only if—
  - (1) the [Secretary](/usc/10/4951.md?p=3) notifies the [congressional defense committees](/usc/10/101.md?p=a-16) of the total cost of the project before the date on which the [Secretary](/usc/10/4951.md?p=3) uses the mechanism under such subsection for such project; and
  - (2) the [Secretary](/usc/10/4951.md?p=3) ensures that the project complies with the applicable cost limitations in—
    - (A) [section 2805(d) of this title](/usc/10/2805.md?p=d), with respect to revitalization and recapitalization projects; and
    - (B) [section 2811 of this title](/usc/10/2811.md), with respect to repair projects.
- (c) **Release and Dissemination of Information on Contributions From Use of Authority to Military Missions.—**
  - (1) **Collection of information.—** The [Secretary](/usc/10/4951.md?p=3) shall establish and maintain mechanisms for the continuous collection of information on achievements, best practices identified, lessons learned, and challenges arising in the exercise of the authority in this section.
  - (2) **Release of information.—** The [Secretary](/usc/10/4951.md?p=3) shall establish and maintain mechanisms as follows:
    - (A) Mechanisms for the [release](/usc/10/2700.md?p=2) to the public of information on achievements and best practices described in [paragraph (1)](#c-1) in unclassified form.
    - (B) Mechanisms for dissemination to appropriate civilian and [military](/usc/10/801.md?p=8) officials of information on achievements and best practices described in [paragraph (1)](#c-1) in classified form.
- (d) **Test Organization Defined.—** In this section, the term “test organization” means a test organization of the Major [Range](/usc/10/101.md?p=f-1) and Test [Facility](/usc/10/2700.md?p=2) Base specified in [Department](/usc/10/101.md?p=a-6) of Defense Directive 3200.11 or any successor directive.

## Source credit

(Added Pub. L. 115–91, div. A, title II, § 220(a), Dec. 12, 2017, 131 Stat. 1332, § 2363; amended Pub. L. 115–232, div. A, title II, § 250, Aug. 13, 2018, 132 Stat. 1702; renumbered § 4123, Pub. L. 116–283, div. A, title XVIII, § 1843(b)(1), as added Pub. L. 117–81, div. A, title XVII, § 1701(u)(4)(A), Dec. 27, 2021, 135 Stat. 2153; Pub. L. 119–60, div. A, title II, § 212, Dec. 18, 2025, 139 Stat. 772.)

## Notes

### Editorial Notes

### Amendments

2025—Pub. L. 119–60, § 212(1), inserted “and test organizations” after “defense laboratories” in section catchline.

Subsec. (a). Pub. L. 119–60, § 212(2), inserted “or test organization” after “laboratory” wherever appearing.

Subsec. (a)(3). Pub. L. 119–60, § 212(3), inserted “or test organizations” after “laboratories”.

Subsec. (d). Pub. L. 119–60, § 212(4), added subsec. (d).

2021—Pub. L. 116–283, § 1843(b)(1), as added by Pub. L. 117–81, § 1701(u)(4)(A), renumbered section 2363 of this title as this section. A former section 1843(b)(1) of Pub. L. 116–283, which directed the renumbering of section 2363 of this title as section 4103 instead of this section, was repealed by Pub. L. 117–81, § 1701(u)(4)(A), effective as if included therein, so that such renumbering was no longer directed.

2018—Subsec. (c). Pub. L. 115–232 amended subsec. (c) generally. Prior to amendment, subsec. (c) related to annual reports on the use of the authority under subsec. (a).

### Statutory Notes and Related Subsidiaries

### Effective Date of 2021 Amendment

Amendment by Pub. L. 117–81 applicable as if included in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and note below.

Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.