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[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
  January 7, 2003 and December 19, 2003]
[CITE: 49USC40111]

 
                        TITLE 49--TRANSPORTATION
 
                     SUBTITLE VII--AVIATION PROGRAMS
 
                     PART A--AIR COMMERCE AND SAFETY
 
                           subpart i--general
 
                     CHAPTER 401--GENERAL PROVISIONS
 
Sec. 40111. Multiyear procurement contracts for services and 
        related items
        
    (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.

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1107.)

                                          Historical and Revision Notes
----------------------------------------------------------------------------------------------------------------
           Revised  Section                    Source (U.S. Code)               Source (Statutes at Large)
----------------------------------------------------------------------------------------------------------------
40111(a)..............................  49 App.:1344(e)(1).              Aug. 23, 1958, Pub. L. 85-726, Sec.
                                                                          303(e), 72 Stat. 747; May 21, 1970,
                                                                          Pub. L. 91-258, Sec.  51(a)(1), 84
                                                                          Stat. 234; July 12, 1976, Pub. L. 94-
                                                                          353, Sec.  16, 90 Stat. 882; Oct. 19,
                                                                          1980, Pub. L. 96-470, Sec.  112(e), 94
                                                                          Stat. 2240; Jan. 12, 1983, Pub. L. 97-
                                                                          449, Sec.  7(b), 96 Stat. 2444;
                                                                          restated Nov. 5, 1990, Pub. L. 101-
                                                                          508, Sec.  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.