To amend title 10, United States Code, to provide for the permanent and expanded authority for Army industrial facilities to enter into certain cooperative arrangements with non-Army entities.

Repeals the limit (eight) on the number of cooperative arrangements that may be entered into by Army industrial facilities with non-Army entities. Makes such authority permanent (under current law, terminates at the end of FY2014). Revises a report requirement under the National Defense Authorization Act for Fiscal Year 2008 to include an assessment of the effectiveness of the use of such authority and recommendations to improve the ability of each facility to compete for such contracts.

Requires each military industrial facility of the military departments and defense agencies (other than facilities approved for closure or major realignment under the Defense Base Closure and Realignment Act of 1990) to be designated as a Center of Industrial and Technical Excellence in the recognized core competencies of the designee.