
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 107-117 Section 8159]
[CITE: 10USC2401a]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
            CHAPTER 141--MISCELLANEOUS PROCUREMENT PROVISIONS
 
Sec. 2401a. Lease of vehicles, equipment, vessels, and aircraft

    (a) Leasing of Commercial Vehicles and Equipment.--The Secretary of 
Defense may use leasing in the acquisition of commercial vehicles and 
equipment whenever the Secretary determines that such leasing is 
practicable and efficient.
    (b) Limitation on Contracts With Terms of 18 Months or More.--The 
Secretary of Defense or the Secretary of a military department may not 
enter into any contract with a term of 18 months or more, or extend or 
renew any contract for a term of 18 months or more, for any vessel, 
aircraft, or vehicle, through a lease, charter, or similar agreement, 
unless the Secretary has considered all costs of such contract 
(including estimated termination liability) and has determined in 
writing that the contract is in the best interest of the Government.

(Added Pub. L. 103-355, title III, Sec. 3065(a)(1), Oct. 13, 1994, 108 
Stat. 3337; amended Pub. L. 104-106, div. A, title VIII, Sec. 807(a)(1), 
Feb. 10, 1996, 110 Stat. 391; Pub. L. 105-85, div. A, title X, 
Sec. 1073(a)(52), Nov. 18, 1997, 111 Stat. 1903.)


                            Prior Provisions

    Provisions similar to those in subsec. (b) were contained in Pub. L. 
101-165, title IX, Sec. 9081, Nov. 21, 1989, 103 Stat. 1147, which was 
set out as a note under section 2401 of this title, prior to repeal by 
Pub. L. 103-355, Sec. 3065(b).
    A prior section 2401a was renumbered section 2350f of this title.


                               Amendments

    1997--Subsec. (a). Pub. L. 105-85 substituted ``such leasing'' for 
``leasing of such vehicles''.
    1996--Pub. L. 104-106 substituted ``Lease of vehicles, equipment, 
vessels, and aircraft'' for ``Lease of vessels, aircraft, and vehicles'' 
as section catchline, designated existing text as subsec. (b), inserted 
subsec. (b) heading, and added subsec. (a).


                 Multi-Year Aircraft Lease Pilot Program

    Pub. L. 106-79, title VIII, Sec. 8133, Oct. 25, 1999, 113 Stat. 
1267, provided that:
    ``(a) The Secretary of the Air Force may establish a multi-year 
pilot program for leasing aircraft for operational support purposes, 
including transportation for the combatant Commanders in Chief, on such 
terms and conditions as the Secretary may deem appropriate, consistent 
with this section.
    ``(b) Sections 2401 and 2401a of title 10, United States Code, shall 
not apply to any aircraft lease authorized by this section.
    ``(c) Under the aircraft lease Pilot Program authorized by this 
section:
        ``(1) The Secretary may include terms and conditions in lease 
    agreements that are customary in aircraft leases by a non-Government 
    lessor to a non-Government lessee.
        ``(2) The term of any individual lease agreement into which the 
    Secretary enters under this section shall not exceed 10 years.
        ``(3) The Secretary may provide for special payments to a lessor 
    if either the Secretary terminates or cancels the lease prior to the 
    expiration of its term or aircraft are damaged or destroyed prior to 
    the expiration of the term of the lease. Such special payments shall 
    not exceed an amount equal to the value of one year's lease payment 
    under the lease. The amount of special payments shall be subject to 
    negotiation between the Air Force and lessors.
        ``(4) Notwithstanding any other provision of law, any payments 
    required under a lease under this section, and any payments made 
    pursuant to subsection (3) above may be made from:
            ``(A) appropriations available for the performance of the 
        lease at the time the lease takes effect;
            ``(B) appropriations for the operation and maintenance 
        available at the time which the payment is due; and
            ``(C) funds appropriated for those payments.
        ``(5) The Secretary may lease aircraft, on such terms and 
    conditions as the Secretary may deem appropriate, consistent with 
    this section, through an operating lease consistent with OMB 
    Circular A-11.
        ``(6) The Secretary may exchange or sell existing aircraft and 
    apply the exchange allowance or sale proceeds in whole or in part 
    toward the cost of leasing replacement aircraft under this section.
        ``(7) Lease arrangements authorized by this section may not 
    commence until:
            ``(A) The Secretary submits a report to the congressional 
        defense committees [Committees on Armed Services and 
        Subcommittees on Defense of the Committees on Appropriations of 
        the Senate and the House of Representatives] outlining the plans 
        for implementing the Pilot Program. The report shall describe 
        the terms and conditions of proposed contracts and the savings 
        in operations and support costs expected to be derived from 
        retiring older aircraft as compared to the expected cost of 
        leasing newer replacement aircraft.
            ``(B) A period of not less than 30 calendar days has elapsed 
        after submitting the report.
        ``(8) Not later than 1 year after the date on which the first 
    aircraft is delivered under this Pilot Program, and yearly 
    thereafter on the anniversary of the first delivery, the Secretary 
    shall submit a report to the congressional defense committees 
    describing the status of the Pilot Program. The Report will be based 
    on at least 6 months of experience in operating the Pilot Program.
        ``(9) No lease of operational support aircraft may be entered 
    into under this section after September 30, 2004.
    ``(d) The authority granted to the Secretary of the Air Force by 
this section is separate from and in addition to, and shall not be 
construed to impair or otherwise affect, the authority of the Secretary 
to procure transportation or enter into leases under a provision of law 
other than this section.
    ``(e) The authority provided under this section may be used to lease 
not more than a total of six aircraft for the purposes of providing 
operational support.''


     Lease of Firefighting, Crash Rescue, and Snow Removal Equipment

    Pub. L. 105-262, title VIII, Sec. 8126, Oct. 17, 1998, 112 Stat. 
2333, provided that:
    ``(a) The Secretary of the Army and the Secretary of the Air Force 
may each enter into one or more multiyear leases of nontactical 
firefighting equipment, nontactical crash rescue equipment, or 
nontactical snow removal equipment. The period of a lease entered into 
under this section shall be for any period not in excess of 10 years. 
Any such lease shall provide that performance under the lease during the 
second and subsequent years of the contract is contingent upon the 
appropriation of funds and shall provide for a cancellation payment to 
be made to the lessor if such appropriations are not made.
    ``(b) Lease payments made under subsection (a) shall be made from 
amounts provided in this or future appropriations Acts.
    ``(c) This section is effective for all fiscal years beginning after 
September 30, 1998.''


       Pilot Program for Leasing Commercial Utility Cargo Vehicles

    Section 807(c) of Pub. L. 104-106, as amended by Pub. L. 106-65, 
div. A, title X, Sec. 1067(6), Oct. 5, 1999, 113 Stat. 774, provided 
that:
    ``(1) The Secretary of the Army may conduct a pilot program for 
leasing commercial utility cargo vehicles in accordance with this 
subsection.
    ``(2) Under the pilot program--
        ``(A) the Secretary may trade existing commercial utility cargo 
    vehicles of the Army for credit against the costs of leasing new 
    replacement commercial utility cargo vehicles for the Army;
        ``(B) the quantities and trade-in value of commercial utility 
    cargo vehicles to be traded in shall be subject to negotiation 
    between the Secretary and the lessors of the new replacement 
    commercial utility cargo vehicles;
        ``(C) the lease agreement for a new commercial utility cargo 
    vehicle may be executed with or without an option to purchase at the 
    end of the lease period;
        ``(D) the lease period for a new commercial utility cargo 
    vehicle may not exceed the warranty period for the vehicle; and
        ``(E) up to 40 percent of the validated requirement for 
    commercial utility cargo vehicles may be satisfied by leasing such 
    vehicles, except that one or more options for satisfying the 
    remainder of the validated requirement may be provided for and 
    exercised (subject to the requirements of paragraph (6)).
    ``(3) In awarding contracts under the pilot program, the Secretary 
shall comply with section 2304 of title 10, United States Code.
    ``(4) The pilot program may not be commenced until--
        ``(A) the Secretary submits to the Committee on Armed Services 
    of the Senate and the Committee on Armed Services of the House of 
    Representatives a report that contains the plans of the Secretary 
    for implementing the program and that sets forth in detail the 
    savings in operating and support costs expected to be derived from 
    retiring older commercial utility cargo vehicles, as compared to the 
    expected costs of leasing newer commercial utility cargo vehicles; 
    and
        ``(B) a period of 30 calendar days has elapsed after submission 
    of such report.
    ``(5) Not later than one year after the date on which the first 
lease under the pilot program is entered into, the Secretary of the Army 
shall submit to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives a report on 
the status of the pilot program. Such report shall be based on at least 
six months of experience in operating the pilot program.
    ``(6) The Secretary may exercise an option provided for under 
paragraph (2) only after a period of 60 days has elapsed after the 
submission of the report.
    ``(7) No lease of commercial utility cargo vehicles may be entered 
into under the pilot program after September 30, 2000.''
