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49 U.S.C. § 5325 — Contract requirements
Federal law — U.S. Code and appendices · legal_authorities
Page 326
TITLE 49—TRANSPORTATION
§ 5325
curity shall jointly brief the Committee on Banking,
Housing, and Urban Affairs and the Committee on
Homeland Security and Governmental Affairs of the
Senate on the memorandum of agreement required
under paragraph (2).
‘‘(B) QUARTERLY BRIEFINGS.—Each quarter of the 1-
year period beginning on the date on which the Sec-
retary of Transportation and the Secretary of Home-
land Security enter into the memorandum of agree-
ment required under paragraph (2), the Secretary of
Transportation and the Secretary of Homeland Secu-
rity shall jointly brief the Committee on Banking,
Housing, and Urban Affairs and the Committee on
Homeland Security and Governmental Affairs of the
Senate on the implementation of the memorandum of
agreement.’’
§ 5325. Contract requirements
(a)
COMPETITION.—Recipients
of
assistance
under this chapter shall conduct all procure-
ment transactions in a manner that provides
full and open competition as determined by the
Secretary.
(b) ARCHITECTURAL, ENGINEERING, AND DESIGN
CONTRACTS.—
(1) PROCEDURES FOR AWARDING CONTRACT.—A
contract or requirement for program manage-
ment, architectural engineering, construction
management, a feasibility study, and prelimi-
nary engineering, design, architectural, engi-
neering, surveying, mapping, or related serv-
ices for a project for which Federal assistance
is provided under this chapter shall be award-
ed in the same way as a contract for architec-
tural and engineering services is negotiated
under chapter 11 of title 40 or an equivalent
qualifications-based requirement of a State
adopted before August 10, 2005.
(2) ADDITIONAL REQUIREMENTS.—When award-
ing a contract described in paragraph (1), re-
cipients of assistance under this chapter shall
comply
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Page 326
TITLE 49—TRANSPORTATION
§ 5325
curity shall jointly brief the Committee on Banking,
Housing, and Urban Affairs and the Committee on
Homeland Security and Governmental Affairs of the
Senate on the memorandum of agreement required
under paragraph (2).
‘‘(B) QUARTERLY BRIEFINGS.—Each quarter of the 1-
year period beginning on the date on which the Sec-
retary of Transportation and the Secretary of Home-
land Security enter into the memorandum of agree-
ment required under paragraph (2), the Secretary of
Transportation and the Secretary of Homeland Secu-
rity shall jointly brief the Committee on Banking,
Housing, and Urban Affairs and the Committee on
Homeland Security and Governmental Affairs of the
Senate on the implementation of the memorandum of
agreement.’’
§ 5325. Contract requirements
(a)
COMPETITION.—Recipients
of
assistance
under this chapter shall conduct all procure-
ment transactions in a manner that provides
full and open competition as determined by the
Secretary.
(b) ARCHITECTURAL, ENGINEERING, AND DESIGN
CONTRACTS.—
(1) PROCEDURES FOR AWARDING CONTRACT.—A
contract or requirement for program manage-
ment, architectural engineering, construction
management, a feasibility study, and prelimi-
nary engineering, design, architectural, engi-
neering, surveying, mapping, or related serv-
ices for a project for which Federal assistance
is provided under this chapter shall be award-
ed in the same way as a contract for architec-
tural and engineering services is negotiated
under chapter 11 of title 40 or an equivalent
qualifications-based requirement of a State
adopted before August 10, 2005.
(2) ADDITIONAL REQUIREMENTS.—When award-
ing a contract described in paragraph (1), re-
cipients of assistance under this chapter shall
comply with the following requirements:
(A) PERFORMANCE
OF
AUDITS.—Any con-
tract or subcontract awarded under this
chapter shall be performed and audited in
compliance with cost principles contained in
part 31 of the Federal Acquisition Regula-
tion, or any successor thereto.
(B) INDIRECT COST RATES.—A recipient of
funds under a contract or subcontract
awarded under this chapter shall accept in-
direct cost rates established in accordance
with the Federal Acquisition Regulation for
1-year applicable accounting periods by a
cognizant Federal or State government
agency, if such rates are not currently under
dispute.
(C) APPLICATION OF RATES.—After a firm’s
indirect cost rates are accepted under sub-
paragraph (B), the recipient of the funds
shall apply such rates for the purposes of
contract estimation, negotiation, adminis-
tration, reporting, and contract payment,
and shall not be limited by administrative
or de facto ceilings.
(D) PRENOTIFICATION; CONFIDENTIALITY
OF
DATA.—A recipient requesting or using the
cost and rate data described in subparagraph
(C) shall notify any affected firm before such
request or use. Such data shall be confiden-
tial and shall not be accessible or provided
by the group of agencies sharing cost data
under this subparagraph, except by written
permission of the audited firm. If prohibited
by law, such cost and rate data shall not be
disclosed under any circumstances.
(c) EFFICIENT PROCUREMENT.—A recipient may
award a procurement contract under this chap-
ter to other than the lowest bidder if the award
furthers an objective consistent with the pur-
poses of this chapter, including improved long-
term operating efficiency and lower long-term
costs.
(d) DESIGN-BUILD PROJECTS.—
(1) TERM
DEFINED.—In this subsection, the
term ‘‘design-build project’’—
(A) means a project under which a recipi-
ent enters into a contract with a seller, firm,
or consortium of firms to design and build a
public transportation system, or an operable
segment of such system, that meets specific
performance criteria; and
(B) may include an option to finance, or
operate for a period of time, the system or
segment or any combination of designing,
building, operating, or maintaining such
system or segment.
(2)
FINANCIAL
ASSISTANCE
FOR
CAPITAL
COSTS.—Federal financial assistance under
this chapter may be provided for the capital
costs of a design-build project after the recipi-
ent complies with Government requirements.
(e) MULTIYEAR ROLLING STOCK.—
(1) CONTRACTS.—A recipient procuring roll-
ing stock with Government financial assist-
ance
under
this
chapter
may
make
a
multiyear contract to buy the rolling stock
and replacement parts under which the recipi-
ent has an option to buy additional rolling
stock or replacement parts for—
(A) not more than 5 years after the date of
the original contract for bus procurements;
and
(B) not more than 7 years after the date of
the original contract for rail procurements,
provided that such option does not allow for
significant changes or alterations to the
rolling stock.
(2) COOPERATION
AMONG
RECIPIENTS.—The
Secretary shall allow recipients to act on a co-
operative basis to procure rolling stock in
compliance with this subsection and other
Government procurement requirements.
(f) ACQUIRING ROLLING STOCK.—A recipient of
financial assistance under this chapter may
enter into a contract to expend that assistance
to acquire rolling stock—
(1) based on—
(A) initial capital costs; or
(B)
performance,
standardization,
life
cycle costs, and other factors; or
(2) with a party selected through a competi-
tive procurement process.
(g) EXAMINATION OF RECORDS.—Upon request,
the Secretary and the Comptroller General, or
any of their representatives, shall have access to
and the right to examine and inspect all records,
documents, and papers, including contracts, re-
lated to a project for which a grant is made
under this chapter.
Page 327
TITLE 49—TRANSPORTATION
§ 5325
(h) GRANT
PROHIBITION.—A grant awarded
under this chapter or the Federal Public Trans-
portation Act of 2015 may not be used to support
a procurement that uses an exclusionary or dis-
criminatory specification.
(i) BUS DEALER REQUIREMENTS.—No State law
requiring buses to be purchased through in-
State dealers shall apply to vehicles purchased
with a grant under this chapter.
(j) AWARDS TO RESPONSIBLE CONTRACTORS.—
(1) IN GENERAL.—Federal financial assistance
under this chapter may be provided for con-
tracts only if a recipient awards such con-
tracts to responsible contractors possessing
the ability to successfully perform under the
terms and conditions of a proposed procure-
ment.
(2) CRITERIA.—Before making an award to a
contractor under paragraph (1), a recipient
shall consider—
(A) the integrity of the contractor;
(B) the contractor’s compliance with pub-
lic policy;
(C) the contractor’s past performance; and
(D) the contractor’s financial and tech-
nical resources.
(k) VETERANS EMPLOYMENT.—Recipients and
subrecipients of Federal financial assistance
under this chapter shall ensure that contractors
working on a capital project funded using such
assistance give a hiring preference, to the extent
practicable, to veterans (as defined in section
2108 of title 5) who have the requisite skills and
abilities to perform the construction work re-
quired under the contract. This subsection shall
not be understood, construed or enforced in any
manner that would require an employer to give
a preference to any veteran over any equally
qualified applicant who is a member of any ra-
cial or ethnic minority, female, an individual
with a disability, or a former employee.
(Pub. L. 103–272, § 1(d), July 5, 1994, 108 Stat. 825;
Pub. L. 104–287, § 5(16), Oct. 11, 1996, 110 Stat.
3390; Pub. L. 105–178, title III, § 3022, June 9, 1998,
112 Stat. 363; Pub. L. 105–206, title IX, § 9009(n),
July 22, 1998, 112 Stat. 857; Pub. L. 107–217,
§ 3(n)(2), Aug. 21, 2002, 116 Stat. 1302; Pub. L.
109–59, title III, § 3025(a), Aug. 10, 2005, 119 Stat.
1620; Pub. L. 110–244, title II, § 201(k), June 6,
2008, 122 Stat. 1611; Pub. L. 112–141, div. B,
§§ 20018, 20030(d), July 6, 2012, 126 Stat. 706, 730;
Pub. L. 114–94, div. A, title III, § 3030(e), Dec. 4,
2015, 129 Stat. 1497.)
HISTORICAL AND REVISION NOTES
PUB. L. 103–272
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
5325(a) ........
49 App.:1608(b)(1).
July 9, 1964, Pub. L. 88–365,
§ 12(b)(1),
78
Stat.
306;
Sept.
8,
1966,
Pub.
L.
89–562, § 2(a)(1), 80 Stat.
715; May 25, 1967, Pub. L.
90–19, § 20(a), 81 Stat. 25;
Nov. 6, 1978, Pub. L. 95–599,
§ 308(a)(1), 92 Stat. 2745.
5325(b) ........
49 App.:1608(b)(2).
July 9, 1964, Pub. L. 88–365,
78
Stat.
302,
§ 12(b)(2);
added Nov. 6, 1978, Pub. L.
95–599, § 308(a)(2), 92 Stat.
2745; restated Jan. 6, 1983,
Pub. L. 97–424, § 308, 96
Stat. 2151.
HISTORICAL AND REVISION NOTES—CONTINUED
PUB. L. 103–272
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
5325(c) ........
49 App.:1608(b)(3).
July 9, 1964, Pub. L. 88–365,
78
Stat.
302,
§ 12(b)(3);
added Apr. 2, 1987, Pub. L.
100–17, § 315(a), 101 Stat.
232.
5325(d) ........
49 App.:1608(b)(4).
July 9, 1964, Pub. L. 88–365,
78
Stat.
302,
§ 12(b)(4);
added Apr. 2, 1987, Pub. L.
100–17, § 316, 101 Stat. 232.
In subsection (a), the words ‘‘reconstruction’’, ‘‘in
furtherance of the purposes’’, ‘‘by applicants’’, ‘‘proce-
dures as defined by the Secretary’’, ‘‘of the contracting
parties’’, and ‘‘the operations or activities under’’ are
omitted as surplus. The words ‘‘shall be made available
to’’ are substituted for ‘‘shall . . . have access to’’, and
the words ‘‘an officer or employee of the Secretary or
Comptroller General’’ are substituted for ‘‘any of their
duly authorized representatives’’, for consistency in
the revised title and with other titles of the United
States Code.
Subsection (b) is substituted for 49 App.:1608(b)(2) for
clarity. The text of 49 App.:1608(b)(2) (last sentence) is
omitted as executed.
PUB. L. 104–287
This amends the catchline for 49:5325(d) to make a
clarifying amendment.
Editorial Notes
REFERENCES IN TEXT
The Federal Public Transportation Act of 2015, re-
ferred to in subsec. (h), is title III of Pub. L. 114–94, Dec.
4, 2015, 129 Stat. 1446. For complete classification of this
Act to the Code, see Short Title of 2015 Amendment
note set out under section 5101 of this title and Tables.
AMENDMENTS
2015—Subsec. (e)(2). Pub. L. 114–94, § 3030(e)(1), struck
out ‘‘at least two’’ after ‘‘allow’’.
Subsec. (h). Pub. L. 114–94, § 3030(e)(2), substituted
‘‘Federal Public Transportation Act of 2015’’ for ‘‘Fed-
eral Public Transportation Act of 2012’’.
2012—Subsec. (b)(2)(A). Pub. L. 112–141, § 20030(d), sub-
stituted ‘‘the Federal Acquisition Regulation, or any
successor thereto’’ for ‘‘title 48, Code of Federal Regu-
lations (commonly known as the Federal Acquisition
Regulation)’’.
Subsec. (e)(1). Pub. L. 112–141, § 20018(1), added par. (1)
and struck out former par. (1). Prior to amendment,
text read as follows: ‘‘A recipient procuring rolling
stock with Government financial assistance under this
chapter may make a multiyear contract to buy the
rolling stock and replacement parts under which the
recipient has an option to buy additional rolling stock
or replacement parts for not more than 5 years after
the date of the original contract.’’
Subsec. (h). Pub. L. 112–141, § 20018(2), substituted
‘‘Federal Public Transportation Act of 2012’’ for ‘‘Fed-
eral Public Transportation Act of 2005’’.
Subsec. (j)(2)(C). Pub. L. 112–141, § 20018(3), struck out
‘‘, including the performance reported in the Con-
tractor Performance Assessment Reports required
under section 5309(l)(2)’’ after ‘‘past performance’’.
Subsec. (k). Pub. L. 112–141, § 20018(4), added subsec.
(k).
2008—Subsec. (b)(1). Pub. L. 110–244, § 201(k)(1), in-
serted ‘‘adopted before August 10, 2005’’ before period at
end.
Subsec. (b)(2), (3). Pub. L. 110–244, § 201(k)(2), (3), re-
designated par. (3) as (2) and struck out former par. (2).
Text read as follows: ‘‘Paragraph (1) does not apply to
the extent a State has adopted by law, before the date
of enactment of the Federal Public Transportation Act
of 2005, an equivalent State qualifications-based re-
Page 328
TITLE 49—TRANSPORTATION
§ 5325
quirement for contracting for architectural, engineer-
ing, and design services.’’
2005—Pub. L. 109–59 amended section generally. Prior
to amendment, section consisted of subsecs. (a) to (c)
relating to noncompetitive bidding in subsec. (a), pro-
cedures for award of architectural, engineering, and de-
sign contracts in subsec. (b), and efficient procurement
in subsec. (c).
2002—Subsec. (b). Pub. L. 107–217 substituted ‘‘chapter
11 of title 40’’ for ‘‘title IX of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 541 et
seq.)’’.
1998—Subsec. (b). Pub. L. 105–178, § 3022(b), as added by
Pub. L. 105–206, inserted ‘‘or requirement’’ after ‘‘A con-
tract’’ and ‘‘When awarding such contracts, recipients
of assistance under this chapter shall maximize effi-
ciencies of administration by accepting nondisputed
audits conducted by other governmental agencies, as
provided in subparagraphs (C) through (F) of section
112(b)(2) of title 23, United States Code.’’ before ‘‘This
subsection does not apply’’.
Pub. L. 105–178, § 3022(a)(1), (2), redesignated subsec.
(d) as (b) and struck out heading and text of former
subsec. (b). Text read as follows: ‘‘A recipient of finan-
cial assistance of the United States Government under
this chapter may make a contract to expend that as-
sistance to acquire rolling stock—
‘‘(1) based on—
‘‘(A) initial capital costs; or
‘‘(B) performance, standardization, life cycle
costs, and other factors; or
‘‘(2) with a party selected through a competitive
procurement process.’’
Subsec. (c). Pub. L. 105–178, § 3022(a)(1), (3), added sub-
sec. (c) and struck out heading and text of former sub-
sec. (c). Text read as follows: ‘‘A recipient of a grant
under section 5307 of this title procuring an associated
capital maintenance item under section 5307(b) may
make a contract directly with the original manufac-
turer or supplier of the item to be replaced, without re-
ceiving prior approval of the Secretary, if the recipient
first certifies in writing to the Secretary that—
‘‘(1) the manufacturer or supplier is the only source
for the item; and
‘‘(2) the price of the item is no more than the price
similar customers pay for the item.’’
Subsec. (d). Pub. L. 105–178, § 3022(a)(2), redesignated
subsec. (d) as (b).
1996—Subsec. (d). Pub. L. 104–287 substituted ‘‘ARCHI-
TECTURAL, ENGINEERING, AND DESIGN CONTRACTS’’ for
‘‘MANAGEMENT, ARCHITECTURAL, AND ENGINEERING CON-
TRACTS’’ in heading.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2015 AMENDMENT
Amendment by Pub. L. 114–94 effective Oct. 1, 2015,
see section 1003 of Pub. L. 114–94, set out as a note
under section 5313 of Title 5, Government Organization
and Employees.
EFFECTIVE DATE OF 2012 AMENDMENT
Amendment by Pub. L. 112–141 effective Oct. 1, 2012,
see section 3(a) of Pub. L. 112–141, set out as an Effec-
tive and Termination Dates of 2012 Amendment note
under section 101 of Title 23, Highways.
EFFECTIVE DATE OF 1998 AMENDMENT
Title IX of Pub. L. 105–206 effective simultaneously
with enactment of Pub. L. 105–178 and to be treated as
included in Pub. L. 105–178 at time of enactment, and
provisions of Pub. L. 105–178, as in effect on day before
July 22, 1998, that are amended by title IX of Pub. L.
105–206 to be treated as not enacted, see section 9016 of
Pub. L. 105–206, set out as a note under section 101 of
Title 23, Highways.
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by Pub. L. 104–287 effective July 5, 1994,
see section 8(1) of Pub. L. 104–287, set out as a note
under section 5303 of this title.
INNOVATIVE PROCUREMENT
Pub. L. 114–94, div. A, title III, § 3019, Dec. 4, 2015, 129
Stat. 1488, provided that:
‘‘(a) DEFINITION.—In this section, the term ‘grantee’
means a recipient or subrecipient of assistance under
chapter 53 of title 49, United States Code.
‘‘(b) COOPERATIVE PROCUREMENT.—
‘‘(1) DEFINITIONS; GENERAL RULES.—
‘‘(A) DEFINITIONS.—In this subsection—
‘‘(i) the term ‘cooperative procurement con-
tract’ means a contract—
‘‘(I) entered into between a State government
or eligible nonprofit entity and 1 or more ven-
dors; and
‘‘(II) under which the vendors agree to provide
an option to purchase rolling stock and related
equipment to multiple participants;
‘‘(ii)
the
term
‘eligible
nonprofit
entity’
means—
‘‘(I) a nonprofit cooperative purchasing orga-
nization that is not a grantee; or
‘‘(II) a consortium of entities described in sub-
clause (I);
‘‘(iii) the terms ‘lead nonprofit entity’ and ‘lead
procurement agency’ mean an eligible nonprofit
entity or a State government, respectively, that
acts in an administrative capacity on behalf of
each participant in a cooperative procurement
contract;
‘‘(iv) the term ‘participant’ means a grantee
that participates in a cooperative procurement
contract; and
‘‘(v) the term ‘participate’ means to purchase
rolling stock and related equipment under a coop-
erative procurement contract using assistance
provided under chapter 53 of title 49, United
States Code.
‘‘(B) GENERAL RULES.—
‘‘(i) PROCUREMENT NOT LIMITED TO INTRASTATE
PARTICIPANTS.—A grantee may participate in a
cooperative procurement contract without regard
to whether the grantee is located in the same
State as the parties to the contract.
‘‘(ii) VOLUNTARY
PARTICIPATION.—Participation
by grantees in a cooperative procurement con-
tract shall be voluntary.
‘‘(iii) CONTRACT TERMS.—The lead procurement
agency or lead nonprofit entity for a cooperative
procurement contract shall develop the terms of
the contract.
‘‘(iv) DURATION.—A cooperative procurement
contract—
‘‘(I) subject to subclauses (II) and (III), may be
for an initial term of not more than 2 years;
‘‘(II) may include not more than 3 optional ex-
tensions for terms of not more than 1 year each;
and
‘‘(III) may be in effect for a total period of not
more than 5 years, including each extension au-
thorized under subclause (II).
‘‘(v) ADMINISTRATIVE
EXPENSES.—A lead pro-
curement agency or lead nonprofit entity, as ap-
plicable, that enters into a cooperative procure-
ment contract—
‘‘(I) may charge the participants in the con-
tract for the cost of administering, planning,
and providing technical assistance for the con-
tract in an amount that is not more than 1 per-
cent of the total value of the contract; and
‘‘(II) with respect to the cost described in sub-
clause (I), may incorporate the cost into the
price of the contract or directly charge the par-
ticipants for the cost, but not both.
‘‘(2) STATE COOPERATIVE PROCUREMENT SCHEDULES.—
‘‘(A) AUTHORITY.—A State government may enter
into a cooperative procurement contract with 1 or
more vendors if—
‘‘(i) the vendors agree to provide an option to
purchase rolling stock and related equipment to
Page 329
TITLE 49—TRANSPORTATION
§ 5326
the State government and any other participant;
and
‘‘(ii) the State government acts throughout the
term of the contract as the lead procurement
agency.
‘‘(B) APPLICABILITY
OF
POLICIES
AND
PROCE-
DURES.—In procuring rolling stock and related
equipment under a cooperative procurement con-
tract under this subsection, a State government
shall comply with the policies and procedures that
apply to procurement by the State government
when using non-Federal funds, to the extent that
the policies and procedures are in conformance with
applicable Federal law.
‘‘(3) PILOT
PROGRAM
FOR
NONPROFIT
COOPERATIVE
PROCUREMENTS.—
‘‘(A) ESTABLISHMENT.—The Secretary [of Trans-
portation] shall establish and carry out a pilot pro-
gram to demonstrate the effectiveness of coopera-
tive procurement contracts administered by eligi-
ble nonprofit entities.
‘‘(B) DESIGNATION.—In carrying out the program
under this paragraph, the Secretary shall designate
not less than 3 eligible nonprofit entities to enter
into a cooperative procurement contract under
which the eligible nonprofit entity acts throughout
the term of the contract as the lead nonprofit enti-
ty.
‘‘(C) NOTICE OF INTENT TO PARTICIPATE.—At a time
determined appropriate by the lead nonprofit enti-
ty, each participant in a cooperative procurement
contract under this paragraph shall submit to the
lead nonprofit entity a nonbinding notice of intent
to participate.
‘‘(4) JOINT PROCUREMENT CLEARINGHOUSE.—
‘‘(A) IN GENERAL.—The Secretary shall establish a
clearinghouse for the purpose of allowing grantees
to aggregate planned rolling stock purchases and
identify joint procurement participants.
‘‘(B) NONPROFIT
CONSULTATION.—In establishing
the clearinghouse under subparagraph (A), the Sec-
retary may consult with nonprofit entities with ex-
pertise in public transportation or procurement,
and other stakeholders as the Secretary determines
appropriate.
‘‘(C) INFORMATION ON PROCUREMENTS.—The clear-
inghouse may include information on bus size, en-
gine type, floor type, and any other attributes nec-
essary to identify joint procurement participants.
‘‘(D) LIMITATIONS.—
‘‘(i) ACCESS.—The clearinghouse shall only be
accessible to the Federal Transit Administration,
a nonprofit entity coordinating for such clearing-
house with the Secretary, and grantees.
‘‘(ii) PARTICIPATION.—No grantee shall be re-
quired to submit procurement information to the
database.
‘‘(c) LEASING ARRANGEMENTS.—
‘‘(1) CAPITAL LEASE DEFINED.—
‘‘(A) IN
GENERAL.—In this subsection, the term
‘capital lease’ means any agreement under which a
grantee acquires the right to use rolling stock or
related equipment for a specified period of time, in
exchange for a periodic payment.
‘‘(B) MAINTENANCE.—A capital lease may require
that the lessor provide maintenance of the rolling
stock or related equipment covered by the lease.
‘‘(2) PROGRAM TO SUPPORT INNOVATIVE LEASING AR-
RANGEMENTS.—
‘‘(A) AUTHORITY.—A grantee may use assistance
provided under chapter 53 of title 49, United States
Code, to enter into a capital lease if—
‘‘(i) the rolling stock or related equipment cov-
ered under the lease is eligible for capital assist-
ance under such chapter; and
‘‘(ii) there is or will be no Federal interest in
the rolling stock or related equipment covered
under the lease as of the date on which the lease
takes effect.
‘‘(B) GRANTEE REQUIREMENTS.—A grantee that en-
ters into a capital lease shall—
‘‘(i) maintain an inventory of the rolling stock
or related equipment acquired under the lease;
and
‘‘(ii) maintain on the accounting records of the
grantee the liability of the grantee under the
lease.
‘‘(C) ELIGIBLE LEASE COSTS.—The costs for which
a grantee may use assistance under chapter 53 of
title 49, United States Code, with respect to a cap-
ital lease, include—
‘‘(i) the cost of the rolling stock or related
equipment;
‘‘(ii) associated financing costs, including inter-
est, legal fees, and financial advisor fees;
‘‘(iii) ancillary costs such as delivery and in-
stallation charges; and
‘‘(iv) maintenance costs.
‘‘(D) TERMS.—A grantee shall negotiate the terms
of any lease agreement that the grantee enters
into.
‘‘(E) APPLICABILITY
OF
PROCUREMENT
REQUIRE-
MENTS.—
‘‘(i) LEASE REQUIREMENTS.—Part 639 of title 49,
Code of Federal Regulations, or any successor
regulation, and implementing guidance applicable
to leasing shall not apply to a capital lease.
‘‘(ii) BUY
AMERICA.—The requirements under
section 5323(j) of title 49, United States Code,
shall apply to a capital lease.
‘‘(3) CAPITAL LEASING OF CERTAIN ZERO EMISSION VE-
HICLE COMPONENTS.—
‘‘(A) DEFINITIONS.—In this paragraph—
‘‘(i) the term ‘removable power source’—
‘‘(I) means a power source that is separately
installed in, and removable from, a zero emis-
sion vehicle; and
‘‘(II) may include a battery, a fuel cell, an
ultra-capacitor, or other advanced power source
used in a zero emission vehicle; and
‘‘(ii) the term ‘zero emission vehicle’ has the
meaning given the term in section 5339(c) of title
49, United States Code.
‘‘(B) LEASED
POWER
SOURCES.—Notwithstanding
any other provision of law, for purposes of this sub-
section, the cost of a removable power source that
is necessary for the operation of a zero emission ve-
hicle shall not be treated as part of the cost of the
vehicle if the removable power source is acquired
using a capital lease.
‘‘(C) ELIGIBLE CAPITAL LEASE.—A grantee may ac-
quire a removable power source by itself through a
capital lease.
‘‘(D) PROCUREMENT REGULATIONS.—For purposes of
this section, a removable power source shall be sub-
ject to section 200.88 of title 2, Code of Federal Reg-
ulations.
‘‘(4) REPORTING
REQUIREMENT.—Not later than 3
years after the date on which a grantee enters into a
capital lease under this subsection, the grantee shall
submit to the Secretary a report that contains—
‘‘(A) an evaluation of the overall costs and bene-
fits of leasing rolling stock; and
‘‘(B) a comparison of the expected short-term and
long-term maintenance costs of leasing versus buy-
ing rolling stock.
‘‘(5) REPORT.—The Secretary shall make publicly
available an annual report on this subsection for each
fiscal year, not later than December 31 of the cal-
endar year in which that fiscal year ends. The report
shall include a detailed description of the activities
carried out under this subsection, and evaluation of
the program including the evaluation of the data re-
ported in paragraph (4).
‘‘(d) BUY
AMERICA.—The requirements of section
5323(j) of title 49, United States Code, shall apply to all
procurements under this section.’’
§ 5326. Transit asset management
(a) DEFINITIONS.—In this section the following
definitions shall apply:
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Federal law — U.S. Code and appendices · legal_authorities
Except as otherwise provided in this subchapter, the Administrator of General Services shall supervise and direct the disposition of surplus property in accordance with this subtitle.
Source: Supplied U.S. Code snapshot — release unconfirmed · 40 U.S.C. § 541
Stored review status: release_metadata_unconfirmed. The source passage cites 40 U.S.C. § 541. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 45
TITLE 40—PUBLIC BUILDINGS, PROPERTY, AND WORKS
§ 545
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF REPEAL
Pub. L. 118–99, § 2(e), Oct. 1, 2024, 138 Stat. 1579, pro-
vided that the repeal of this section by section 2(e)(2)
is effective on the date that is 5 years after Oct. 1, 2024.
SUBCHAPTER III—DISPOSING OF
PROPERTY
§ 541. Supervision and direction
Except as otherwise provided in this sub-
chapter, the Administrator of General Services
shall supervise and direct the disposition of sur-
plus property in accordance with this subtitle.
(Pub. L. 107–217, Aug. 21, 2002, 116 Stat. 1086.)
HISTORICAL AND REVISION NOTES
Revised
Section
Source (U.S. Code)
Source (Statutes at Large)
541 .............
40:484(a).
June 30, 1949, ch. 288, title
II, § 203(a), 63 Stat. 385.
The words ‘‘shall supervise and direct the disposition
of surplus property in accordance with this subtitle’’
are substituted for ‘‘shall have supervision and direc-
tion over the disposition of surplus property. Such
property shall be disposed of to such extent, at such
time, in such areas, by such agencies, at such terms
and conditions, and in such manner, as may be pre-
scribed in or pursuant to this Act’’ for clarity and to
eliminate unnecessary words.
Statutory Notes and Related Subsidiaries
TRANSFERRED PROPERTIES; REQUESTS PRIOR TO
NOVEMBER 30, 1983
Pub. L. 98–181, title I [title I, § 126(a)(2), (3)], Nov. 30,
1983, 97 Stat. 1175, provided that:
‘‘(2) Notwithstanding paragraph (1) [repealing former
40 U.S.C. 484b], the Secretary of Housing and Urban De-
velopment and the Secretary of Agriculture may dis-
pose of Federal surplus real property pursuant to the
terms of section 414 of such Act [former 40 U.S.C. 484b]
if, prior to the date of the enactment of this A
Source: Supplied 2024 U.S. Code historical extraction · 40 U.S.C. § 541
Stored review status: historical_2024_not_currentness_verified. The source passage cites 40 U.S.C. § 541. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Competition.—** Recipients of assistance under this chapter shall conduct all procurement transactions in a manner that provides full and open competition as determined by the Secretary.
**(b) Architectural, Engineering, and Design Contracts.—**
(1) **Procedures for awarding contract.—** — A contract or requirement for program management, architectural engineering, construction management, a feasibility study, and preliminary engineering, design, architectural, engineering, surveying, mapping, or related services for a project for which Federal assistance is provided under this chapter shall be awarded in the same way as a contract for architectural and engineering services is negotiated under chapter 11 of title 40 or an equivalent qualifications-based requirement of a State adopted before August 10, 2005.
(2) **Additional requirements.—** — When awarding a contract described in paragraph (1), recipients of assistance under this chapter shall comply with the following requirements:
(A) *Performance of audits.—* — Any contract or subcontract awarded under this chapter shall be performed and audited in compliance with cost principles contained in part 31 of the Federal Acquisition Regulation, or any successor thereto.
(B) *Indirect cost rates.—* — A recipient of funds under a contract or subcontract awarded under this chapter shall accept indirect cost rates established in accordance with the Federal Acquisition Regulation for 1-year applicable accounting periods by a cognizant Federal or State government agency, if such rates are not currently under dispute.
(C) *Application of rates.—* — After a firm’s indirect cost rates are accepted under subparagraph (B), the recipient of the funds shall apply such rates for the purposes of contract estimation, neg
Source: Supplied U.S. Code snapshot — release unconfirmed · 49 U.S.C. § 5325
Stored review status: release_metadata_unconfirmed. Same stored citation; legal effect and authority still require review.