10 U.S.C. § 7554: Property management…

Summary

Allows the Secretary of the Army to use commercial contracts, leases, and similar agreements for any eligible facility put into the ARMS Initiative. The Secretary must weigh efficiency, cost, emergency mobilization needs, and the Initiative’s goals when deciding to hire a property manager for services like maintenance, operations, modifications, infrastructure work, environmental cleanup, disposal of ammunition-manufacturing assets, and other related services. The Secretary may sign contracts and subcontracts for terms up to 25 years and may use the contracting procedures allowed under section 3204(a)(5) of this title when the contractor is a source specified by law. For facilities covered by a contract, the Secretary may accept payment that is not rent or facility revenue. Acceptable non-cash payments include improving, maintaining, protecting, repairing, or restoring the facility or other property inside the installation; reducing overhead or product costs; and demilitarizing and storing conventional ammunition. The Secretary may use this authority even if section 3302(b) of title 31 or other laws would normally apply.

Title 10, §7554

Armed Forces, Source: USLM XML via OLRC

(a)In General.—

In the case of each eligible facility that is made available for the ARMS Initiative, the Secretary—

(1)shall make full use of facility use contracts, leases, and other such commercial contractual instruments as may be appropriate;

(2)shall evaluate, on the basis of efficiency, cost, emergency mobilization requirements, and the goals and purposes of the ARMS Initiative, the procurement of services from the property manager, including maintenance, operation, modification, infrastructure, environmental restoration and remediation, and disposal of ammunition manufacturing assets, and other services; and

(3)may, in carrying out paragraphs (1) and (2)—

(A)enter into contracts, and provide for subcontracts, for terms up to 25 years, as the Secretary considers appropriate and consistent with the needs of the Department of the Army and the goals and purposes of the ARMS Initiative; and

(B)use procedures that are authorized to be used under section 3204(a)(5) of this title when the contractor or subcontractor is a source specified in law.

(b)Consideration for Use.—

(1)To the extent provided in a contract entered into under this section for the use of property at an eligible facility that is accountable under the contract, the Secretary may accept consideration for such use that is, in whole or in part, in a form other than—

(A)rental payments; or

(B)revenue generated at the facility.

(2)Forms of consideration acceptable under paragraph (1) for a use of an eligible facility or any property at an eligible facility include the following:

(A)The improvement, maintenance, protection, repair, and restoration of the facility, the property, or any property within the boundaries of the installation where the facility is located.

(B)Reductions in overhead costs.

(C)Reductions in product cost.

(D)The demilitarization and storage of conventional ammunition.

(3)The authority under paragraph (1) may be exercised without regard to section 3302(b) of title 31 and any other provision of law.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2021—Subsec. (a)(3)(B). Pub. L. 116–283 substituted “section 3204(a)(5)” for “section 2304(c)(5)”. 2018—Pub. L. 115–232 renumbered section 4554 of this title as this section. 2006—Subsec. (b)(2)(D). Pub. L. 109–163 added subpar. (D).

Statutory Notes and Related Subsidiaries

Effective Date

of 2021 AmendmentAmendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.

Effective Date

of 2018 AmendmentAmendment by Pub. L. 115–232 effective Feb. 1, 2019, with provision for the coordination of

Amendments

and special rule for certain redesignations, see section 800 of Pub. L. 115–232, set out as a note preceding section 3001 of this title. Temporary Authority To Extend Contracts and Leases Under the Arms Initiative Pub. L. 114–92, div. A, title III, § 343, Nov. 25, 2015, 129 Stat. 794, as amended by Pub. L. 115–232, div. A, title VIII, § 809(b)(9), Aug. 13, 2018, 132 Stat. 1841; Pub. L. 117–81, div. A, title III, § 374, Dec. 27, 2021, 135 Stat. 1667, provided that: “Contracts or subcontracts entered into pursuant to section 7554(a)(3)(A) of title 10, United States Code, on or before November 25, 2025, may include an option to extend the term of the contract or subcontract for an additional 25 years.”

§7554 Property Management Contracts and Leases

Summary

Title 10, §7554

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Amendments

Citations & Metadata