§3671 Requirement for Authorization by Law of Certain Contracts Relating to Vessels, Aircraft, and Combat Vehicles

Summary

Military department heads may only sign long-term leases or contracts that use a ship, aircraft, or combat vehicle — or that could leave the United States with large termination costs — if certain steps are followed. The law must specifically allow the contract. The defense committees in Congress must be told before any public request for bids is issued. The department head must give those committees the contract terms, a written reason why leasing is better than buying, and a certification that the lease is the most cost-effective option and that it follows all laws, Office of Management and Budget rules, and Department of Defense regulations. The rule also covers agreements to lease that will lead to an actual lease or charter. The committees must wait 30 continuous session days after they get the notice before the contract goes forward. That 30-day count stops only if Congress adjourns without a date to return, and days when either House is out for more than three days to a specific return date are not counted. The committees can ask the DoD Inspector General or the Comptroller General to review the proposed deal, and that reviewer must report before the 30 days end. The special operations commander can skip these rules only if the full cost, including any termination costs, is funded and obligated on or before the award date.