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10 U.S.C. § 2401 — Transferred]

Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 2401 — Transferred]

### Statutory Notes #### Codification Subsecs. (a) to (h) of this section were transferred to chapter 257 of this title by Pub. L. 116–283, div. A, title XVIII, § 1825(a), Jan. 1, 2021, 134 Stat. 4205. Subsecs. (a) and (b) of this section were renumbered as [section 3671 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3671&num=0&edition=prelim) by Pub. L. 116–283, div. A, title XVIII, § 1825(b), Jan. 1, 2021, 134 Stat. 4206. Subsec. (c)(1) of this section was renumbered as [section 3672(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3672/a&num=0&edition=prelim) by Pub. L. 116–283, div. A, title XVIII, § 1825(d), Jan. 1, 2021, 134 Stat. 4207. Subsec. (c)(2) of this section was renumbered as [section 3673 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3673&num=0&edition=prelim) by Pub. L. 116–283, div. A, title XVIII, § 1825(c), Jan. 1, 2021, 134 Stat. 4206. Subsec. (d) of this section was renumbered as [section 3674 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3674&num=0&edition=prelim) by Pub. L. 116–283, div. A, title XVIII, § 1825(f)(1), Jan. 1, 2021, 134 Stat. 4207. Subsec. (e) of this section was renumbered as [section 3672(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3672/b&num=0&edition=prelim) by Pub. L. 116–283, div. A, title XVIII, § 1825(e), Jan. 1, 2021, 134 Stat. 4207. Subsec. (f) of this section was renumbered as [section 3675 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3675&num=0&edition=prelim) by Pub. L. 116–283, div. A, title XVIII, § 1825(g)(1), Jan. 1, 2021, 134 Stat. 4208. Subse

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Source location: Title 10, Chapter 141, § 2401; chapter-141-miscellaneous-provisions-relating-to-property.md

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Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 3675 — Capital lease or lease-purchase treated as an acquisition

**(a) In General.—** If a lease or charter covered by this chapter is a capital lease or a lease-purchase— (1) the lease or charter shall be treated as an acquisition and shall be subject to all applicable statutory and regulatory requirements for the acquisition of aircraft, naval vessels, or combat vehicles; and (2) funds appropriated to the Department of Defense for operation and maintenance may not be obligated or expended for the lease or charter. **(b) Definitions.—** In this section, the terms “capital lease” and “lease-purchase” have the meanings given those terms in Appendix B to Office of Management and Budget Circular A–11, as in effect on January 6, 2006.

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Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 3671 — Requirement for authorization by law of certain contracts relating to vessels, aircraft, and combat vehicles

**(a)** (1) The Secretary of a military department may make a contract for the lease of a vessel, aircraft, or combat vehicle or for the provision of a service through use by a contractor of a vessel, aircraft, or combat vehicle only as provided in subsection (b) if— (A) the contract will be a long-term lease or charter; or (B) the terms of the contract provide for a substantial termination liability on the part of the United States. (2) The Secretary of a military department may make a contract that is an agreement to lease or charter or an agreement to provide services and that is (or will be) accompanied by a contract for the actual lease, charter, or provision of services only as provided in subsection (b) if the contract for the actual lease, charter, or provision of services is (or will be) a contract described in paragraph (1). **(b)** (1) The Secretary may make a contract described in subsection (a)(1) if— (A) the Secretary has been specifically authorized by law to make the contract; (B) before a solicitation for proposals for the contract was issued the Secretary notified the congressional defense committees of the Secretary’s intention to issue such a solicitation; (C) the Secretary has notified those committees of the proposed contract and provided a detailed description of the terms of the proposed contract and a justification for entering into the proposed contract rather than providing for the lease, charter, or services involved through purchase of the vessel, aircraft, or combat vehicle to be used under the contract, and a period of 30 days of continuous session of Congress has expired following the date on which notice was received by such committees; and (D) the Secretary has certified to those committees— (i) that entering

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Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 3674 — Long-term lease or charter defined; substantial termination liability

**(a) Long-term Lease or Charter.—** (1) **General rule.—** (A) In this chapter, the term “long-term lease or charter” (except as provided in paragraph (2)) means a lease, charter, service contract, or conditional sale agreement— (i) the term of which is for a period of five years or longer or more than one-half the useful life of the vessel, aircraft, or combat vehicle; or (ii) the initial term of which is for a period of less than five years but which contains an option to renew or extend the agreement for a period which, when added to the initial term (or any previous renewal or extension), is five years or longer. (B) Such term includes the extension or renewal of a lease or charter agreement if the term of the extension or renewal thereof is for a period of five years or longer or if the term of the lease or charter agreement being extended or renewed was for a period of five years or longer. (2) **Special rule.—** (A) In the case of an agreement under which the lessor first places the property in service under the agreement or the property has been in service for less than one year and there is allowable to the lessor or charterer an investment tax credit or depreciation for the property leased, chartered, or otherwise provided under the agreement under section 168 of the Internal Revenue Code of 1986 (unless the lessor or charterer has elected depreciation on a straightline method for such property), the term “long-term lease or charter” means a lease, charter, service contract, or conditional sale agreement— (i) the term of which is for a period of three years or longer; or (ii) the initial term of which is for a period of less than three years but which contains an option to renew or extend the agreement for a period which, when a

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Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 3676 — Guidelines

The Director of the Office of Management and Budget and the Secretary of the Treasury shall jointly issue guidelines for determining under what circumstances the Department of Defense may use lease or charter arrangements for aircraft, naval vessels, and combat vehicles rather than directly procuring such aircraft, vessels, and combat vehicles.

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Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 3677 — Contracts for lease or use of vessels for a term of greater than two years but less than five years: prior notice to congressional committees

The Secretary of a military department may make a contract for the lease of a vessel or for the provision of a service through use by a contractor of a vessel, the term of which is for a period of greater than two years, but less than five years, only if— (1) the Secretary has notified the congressional defense committees of the proposed contract and included in such notification— (A) a detailed description of the terms of the proposed contract and a justification for entering into the proposed contract rather than obtaining the capability provided for by the lease, charter, or services involved through purchase of the vessel; (B) a determination that entering into the proposed contract as a means of obtaining the vessel is the most cost-effective means of obtaining such vessel; and (C) a plan for meeting the requirement provided by the proposed contract upon completion of the term of the lease contract; and (2) a period of 60 days has expired following the date on which notice was received by such committees.

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10 U.S.C. § 3673 — Limitation on indemnification

Funds appropriated to the Department of Defense may not be used to indemnify any person under the terms of a contract entered into under this chapter— (1) for any amount paid or due by any person to the United States for any liability arising under the Internal Revenue Code of 1986; or (2) to pay any attorneys’ fees in connection with such contract.

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Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 2461 — Public-private competition required before conversion to contractor performance

**(a) Public-Private Competition.—** (1) No function of the Department of Defense performed by Department of Defense civilian employees may be converted, in whole or in part, to performance by a contractor unless the conversion is based on the results of a public-private competition that— (A) formally compares the cost of performance of the function by Department of Defense civilian employees with the cost of performance by a contractor; (B) creates an agency tender, including a most efficient organization plan, in accordance with Office of Management and Budget Circular A–76, as implemented on May 29, 2003, or any successor circular; (C) includes the issuance of a solicitation; (D) determines whether the submitted offers meet the needs of the Department of Defense with respect to factors other than cost, including quality, reliability, and timeliness; (E) examines the cost of performance of the function by Department of Defense civilian employees and the cost of performance of the function by one or more contractors to demonstrate whether converting to performance by a contractor will result in savings to the Government over the life of the contract, including— (i) the estimated cost to the Government (based on offers received) for performance of the function by a contractor; (ii) the estimated cost to the Government for performance of the function by Department of Defense civilian employees; and (iii) an estimate of all other costs and expenditures that the Government would incur because of the award of such a contract; (F) requires continued performance of the function by Department of Defense civilian employees unless the difference in the cost of performance of the function by a contractor compared to the cost of performance of the

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Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 3672 — Requirement of specific authorization by law for appropriation, and for obligation and expenditure, of funds for certain contracts relating to aircraft, naval vessels, and combat vehicles

**(a) Limitation.—** Funds may not be appropriated for any fiscal year to or for any armed force or obligated or expended for— (1) the long-term lease or charter of any aircraft, naval vessel, or combat vehicle; or (2) for the lease or charter of any aircraft, naval vessel, or combat vehicle the terms of which provide for a substantial termination liability on the part of the United States, unless funds for that purpose have been specifically authorized by law. **(b) Matter to Be Submitted to Congress.—** (1) Whenever a request is submitted to Congress for the authorization of the long-term lease or charter of aircraft, naval vessels, or combat vehicles or for the authorization of a lease or charter of aircraft, naval vessels, or combat vehicles which provides for a substantial termination liability on the part of the United States, the Secretary of Defense shall submit with that request an analysis of the cost to the United States (including lost tax revenues) of any such lease or charter arrangement compared with the cost to the United States of direct procurement of the aircraft, naval vessels, or combat vehicles by the United States. (2) Any such analysis shall be reviewed and evaluated by the Director of the Office of Management and Budget and the Secretary of the Treasury within 30 days after the date on which the request and analysis are submitted to Congress. The Director and Secretary shall conduct such review and evaluation on the basis of the guidelines issued pursuant to [section 3676 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3676&num=0&edition=prelim) and shall report to Congress in writing on the results of their review and evaluation at the earliest practicable date, but in no event more than 45 days a

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Federal law — U.S. Code and appendices · legal_authorities

10 U.S.C. § 2401 — Untitled legal text

Page 1923 TITLE 10—ARMED FORCES [§ 2406 Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL For effective date and applicability of repeal, see sec- tion 4401 of Pub. L. 104–106, set out as an Effective Date of 1996 Amendment note under section 2220 of this title. [§ 2398. Renumbered § 2922c] [§ 2398a. Renumbered § 2922d] [§ 2399. Renumbered § 4171] Editorial Notes PRIOR PROVISIONS A prior section 2399, added Pub. L. 97–295, § 1(29)(A), Oct. 12, 1982, 96 Stat. 1293, which related to limitation on availability of appropriations to reimburse a con- tractor for the cost of commercial insurance, was re- pealed by Pub. L. 100–370, § 1(f)(2)(B), July 19, 1988, 102 Stat. 846, and was restated in section 2324(e)(1)(L) of this title (now 10 U.S.C. 3744(a)(12)) by section 1(f)(2)(A) of Pub. L. 100–370. [§ 2400. Renumbered § 4231] Editorial Notes PRIOR PROVISIONS A prior section 2400 was renumbered section 4864 of this title. [§ 2401. Transferred] Editorial Notes CODIFICATION Subsecs. (a) to (h) of this section were transferred to chapter 257 of this title by Pub. L. 116–283, div. A, title XVIII, § 1825(a), Jan. 1, 2021, 134 Stat. 4205. Subsecs. (a) and (b) of this section were renumbered as section 3671 of this title by Pub. L. 116–283, div. A, title XVIII, § 1825(b), Jan. 1, 2021, 134 Stat. 4206. Subsec. (c)(1) of this section was renumbered as section 3672(a) of this title by Pub. L. 116–283, div. A, title XVIII, § 1825(d), Jan. 1, 2021, 134 Stat. 4207. Subsec. (c)(2) of this section was re- numbered as section 3673 of this title by Pub. L. 116–283, div. A, title XVIII, § 1825(c), Jan. 1, 2021, 134 Stat. 4206. Subsec. (d) of this section was renumbered as section 3674 of this title by Pub. L. 116–283, div. A, title XVIII, § 1825(f)(

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