49 U.S.C. § 40111 — Multiyear procurement contracts for services and related items

submitted 32 years ago by Pub. L. 103-272 to r/title-49-TRANSPORTATION · 430 words · no verdicts yet

in plain englishAI-generated · not legal advice

The FAA Administrator can sign contracts up to 5 years for services like maintenance and training. First the Administrator must find a real ongoing need and a real benefit from competition. If funding stops, the contract ends, using money set aside for that purpose.

(a) General Authority. Normally, federal law only lets agencies commit money one fiscal year at a time. This section lets the FAA Administrator get around that and sign contracts of up to 5 years for: (1) running, maintaining, and supporting facilities and installations; (2) running, maintaining, and modifying aircraft, vehicles, and other complex equipment; (3) specialized training that needs skilled instructors, including pilot, aircrew, and foreign-language training; and (4) base services like ground maintenance, refueling, bus transportation, and trash collection. (b) Required Findings. Before signing such a contract, the Administrator must find that: (1) the FAA will keep needing this service for the whole contract period; (2) providing the service takes a big upfront investment in equipment or a big ongoing cost to hire and train a specialized workforce; and (3) the contract serves the country's best interests by encouraging real competition and saving money. (c) Considerations. When making the contract, the Administrator must follow these rules: (1) The part of equipment cost counted as a "cost of the contract" can't be bigger than the ratio of the contract period to how long the equipment will realistically stay useful — considering its location, specialization, and how quickly it becomes outdated. (2) The Administrator should consider (A) an option to renew the contract for up to 3 more years without re-charging costs already paid off, and (B) a right to take ownership of the equipment later by paying off what's left owed on it. (d) Ending Contracts. If Congress doesn't fund the contract's continuation into a new fiscal year, the contract must end. The cost of ending it can come from (1) money originally set aside for the contract, (2) unused money currently available for that type of service, or (3) money specifically appropriated to pay for ending contracts.

the actual law source: uscode.house.gov ↗public domain

(a)General Authority.—

Notwithstanding section 1341(a)(1)(B) of title 31, the Administrator of the Federal Aviation Administration may make a contract of not more than 5 years for the following types of services and items of supply related to those services for which amounts otherwise would be available for obligation only in the fiscal year for which appropriated:

(1)

operation, maintenance, and support of facilities and installations.

(2)

operation, maintenance, and modification of aircraft, vehicles, and other highly complex equipment.

(3)

specialized training requiring high quality instructor skills, including training of pilots and aircrew members and foreign language training.

(4)

base services, including ground maintenance, aircraft refueling, bus transportation, and refuse collection and disposal.

(b)Required Findings.—

The Administrator may make a contract under this section only if the Administrator finds that—

(1)

there will be a continuing requirement for the service consistent with current plans for the proposed contract period;

(2)

providing the service will require a substantial initial investment in plant or equipment, or will incur a substantial contingent liability for assembling, training, or transporting a specialized workforce; and

(3)

the contract will promote the best interests of the United States by encouraging effective competition and promoting economies in operation.

(c)Considerations.—

When making a contract under this section, the Administrator shall be guided by the following:

(1)

The part of the cost of a plant or equipment amortized as a cost of contract performance may not be more than the ratio between the period of contract performance and the anticipated useful commercial life (instead of physical life) of the plant or equipment, considering the location and specialized nature of the plant or equipment, obsolescence, and other similar factors.

(2)

The Administrator shall consider the desirability of—

(A)

obtaining an option to renew the contract for a reasonable period of not more than 3 years, at a price that does not include charges for nonrecurring costs already amortized; and

(B)

reserving in the Administrator the right, on payment of the unamortized part of the cost of the plant or equipment, to take title to the plant or equipment under appropriate circumstances.

(d)Ending Contracts.—

A contract made under this section shall be ended if amounts are not made available to continue the contract into a subsequent fiscal year. The cost of ending the contract may be paid from—

(1)

an appropriation originally available for carrying out the contract;

(2)

an appropriation currently available for procuring the type of service concerned and not otherwise obligated; or

(3)

amounts appropriated for payments to end the contract.

Source credit: (Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 1107.)

history & why it existsrecord from the source credit

1994Enacted · Pub. L. 103-272 · 108 Stat. 1107

A history note hasn’t been published yet. The record shows enactment by Pub. L. 103-272 on 1994-07-05.

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