Title 10Armed ForcesRelease 119-73

§2812 Lease-purchase of facilities

Title 10 › Subtitle Subtitle A— - General Military Law › Part PART IV— - SERVICE, SUPPLY, AND PROPERTY › Chapter CHAPTER 169— - MILITARY CONSTRUCTION AND MILITARY FAMILY HOUSING › Subchapter SUBCHAPTER I— - MILITARY CONSTRUCTION › § 2812

Last updated Apr 6, 2026|Official source

Summary

The Secretary in charge can make a lease with a private contractor for a facility the contractor builds at its own cost on a Department of Defense military base. The rule covers nine kinds of facilities, including offices, troop housing, energy and utility plants, hospitals, temporary lodging, storage depots, child care, and classrooms/labs. Leases can run no longer than 32 years. At the end of the lease, ownership goes to the United States. Leases must include any other terms the Secretary finds needed to protect U.S. interests and must say that yearly lease payments depend on available appropriations. Before signing, the Secretary must wait 14 days after sending an electronic justification to the appropriate congressional committees under section 480. That justification must include an economic life‑cycle cost analysis showing the lease is cheaper than building the same facility. A Secretary may enter no more than three such leases in fiscal year 1990 and no more than five in each of fiscal years 1991 and 1992.

Full Legal Text

Title 10, §2812

Armed Forces — Source: USLM XML via OLRC

(a)(1)The Secretary concerned may enter into an agreement with a private contractor for the lease of a facility of the kind specified in paragraph (2) if the facility is provided at the expense of the contractor on a military installation under the jurisdiction of the Department of Defense.
(2)The facilities that may be leased pursuant to paragraph (1) are as follows:
(A)Administrative office facilities.
(B)Troop housing facilities.
(C)Energy production facilities.
(D)Utilities, including potable and waste water treatment facilities.
(E)Hospital and medical facilities.
(F)Transient quarters.
(G)Depot or storage facilities.
(H)Child care centers.
(I)Classroom and laboratories.
(b)Leases entered into under subsection (a)—
(1)may not exceed a term of 32 years;
(2)shall provide that, at the end of the term of the lease, title to the leased facility shall vest in the United States; and
(3)shall include such other terms and conditions as the Secretary concerned determines are necessary or desirable to protect the interests of the United States.
(c)(1)The Secretary concerned may enter into a lease under this section only after the end of the 14-day period beginning on the date on which the Secretary submits, in an electronic medium pursuant to section 480 of this title, to the appropriate committees of Congress a justification of the need for the facility covered by the proposed lease, including an economic analysis (based upon accepted life-cycle costing procedures) that demonstrates the cost effectiveness of the proposed lease compared with a military construction project for the same facility.
(2)Each Secretary concerned may, under this section, enter into—
(A)not more than three leases in fiscal year 1990; and
(B)not more than five leases in each of the fiscal years 1991 and 1992.
(d)Each lease entered into under this section shall include a provision that the obligation of the United States to make payments under the lease in any fiscal year is subject to the availability of appropriations for that purpose.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2017—Subsec. (c)(1). Pub. L. 115–91 added par. (1) and struck out former par. (1) which set out justification, economic analysis, and wait requirements for entering into a lease. 2003—Subsec. (c)(1)(B). Pub. L. 108–136 inserted before period at end “or, if over sooner, a period of 14 days has expired following the date on which a copy of the justification and economic analysis are provided in an electronic medium pursuant to section 480 of this title”. 1990—Subsec. (a)(2)(I). Pub. L. 101–510 added subpar. (I).

Reference

Citations & Metadata

Citation

10 U.S.C. § 2812

Title 10Armed Forces

Last Updated

Apr 6, 2026

Release point: 119-73