PRIA, Government Policy, Made Personal

Summary

The FAA Administrator may sign contracts up to 5 years long for certain services and the supplies needed for them, even if money was only meant for one year. Covered work includes running and fixing facilities; running, fixing, and changing aircraft, vehicles, and other complex equipment; specialized training like pilot, aircrew, and foreign language training; and base services such as ground work, refueling, bus transport, and trash removal. The Administrator must find there is a continuing need, that the work needs a big initial investment or a big cost to put together and train a special workforce, and that the contract will help competition and save money. Costs for equipment must be charged only in proportion to the contract years versus the equipment’s expected commercial life. The Administrator should consider a renewal option up to 3 years at a price that excludes costs already paid, and may reserve the right to buy equipment by paying the unamortized share. If no funds are available to continue the next year, the contract must end, and winding-up costs may come from the original appropriation, a current available appropriation for that service, or money set aside for ending contracts.

Title 49, §40111

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(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.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 40111(a)49 App.:1344(e)(1).Aug. 23, 1958, Pub. L. 85–726, § 303(e), 72 Stat. 747; May 21, 1970, Pub. L. 91–258, § 51(a)(1), 84 Stat. 234; July 12, 1976, Pub. L. 94–353, § 16, 90 Stat. 882; Oct. 19, 1980, Pub. L. 96–470, § 112(e), 94 Stat. 2240; Jan. 12, 1983, Pub. L. 97–449, § 7(b), 96 Stat. 2444; restated Nov. 5, 1990, Pub. L. 101–508, § 9118(a), 104 Stat. 1388–366. 40111(b)49 App.:1344(e)(2). 40111(c)49 App.:1344(e)(3). 40111(d)49 App.:1344(e)(4). In this section, the word “Administrator” in section 303(e) of the Federal Aviation Act of 1958 (Public Law 85–726, 72 Stat. 747) is retained on authority of 49:106(g). In subsection (a), before clause (1), the words “periods of” are omitted as surplus. In clause (3), the words “training of” are added for clarity. In clause (4), the word “aircraft” is substituted for “in-plane” for clarity. In subsection (c)(2)(A), the words “plant, equipment, and other” are omitted as surplus. In subsection (d), the words “canceled or” and “cancellation or” are omitted as being included in “ended” and “ending”, respectively.

§40111 Multiyear Procurement Contracts for Services and Related Items

Summary

Title 49, §40111

Notes & Related Subsidiaries

Historical and Revision Notes

Citations & Metadata