PROCUREMENT AUTHORITY.

SEC. 9118. PROCUREMENT AUTHORITY. (a) In General.—Section 303 of the Federal Aviation Act of 1958 (49 U.S.C. App. 1344) is amended to read as follows: “SEC. 303. PROCUREMENT AUTHORITY. “(a) Acquisition and Disposal of Property.—Subject to subsection (b), the Administrator, on behalf of the United States, is authorized, where appropriate— “(1) within the limits of available appropriations made by the Congress therefor, to acquire by purchase, condemnation, lease for a term not to exceed 20 years, or otherwise, personal property or services and real property or interests therein, including, in the case of air navigation facilities (including airports) owned by the United States and operated under the direction of the Administrator, easements through or other interests in airspace immediately adjacent thereto and needed in connection therewith; “(2) for adequate compensation, by sale, lease, or otherwise, to dispose of any real or personal property or interest therein; except that, other than for airport and airway property and technical equipment used for the special purposes of the Federal Aviation Administration, such disposition shall be made in accordance with the Federal Property and Administrative Services Act of 1949; and “(3) to construct, improve, or renovate laboratories and other test facilities and to purchase or otherwise acquire real property required therefor. “(b) Special Rules for Certain Acquisitions.— “(1) Acquisitions by condemnation.—Any acquisition by condemnation under subsection (a) may be made in accordance with the provision of the Act of August 1, 1888 (40 U.S.C. 257; 25 Stat. 357), the Act of February 26, 1931 (40 U.S.C. 258a-258e-l; 46 Stat. 1421), or any other applicable Act; except that, in the case of condemnations of easements through or other interests in airspace, in fixing condemnation awards, consideration may be given to the reasonable probable future use of the underlying land. “(2) Acquisitions of public buildings.—The Administrator may, under subsection (a) construct or acquire by purchase, condemnation, or lease a public building, or interest in a public building (as defined in section 13 of the Public Buildings Act of 104 STAT. 1388–3661959 (40 U.S.C. 612)) only under a delegation of authority from the Administrator of General Services. “(c) Procurement Procedures.—In procuring personal property or services and real property and interests therein under subsection (a), the Administrator may use procedures other than competitive procedures in circumstances which are set forth in section 303(c) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253(c)). “(d) Sole Source Approval by Administrator.—For procurements by the Federal Aviation Administration, the Administrator shall be the senior procurement executive referred to in paragraph (3) of section 16 of Office of Federal Procurement Policy Act (41 U.S.C. 414) for the purposes of approving the justification for the use of noncompetitive procedures required under section 303(f)(1)(B)(iii) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253(f)(1)(B)(iii)). “(e) Multiyear Service Contracts — “(1) In general.—Notwithstanding section 1341(a)(l)(B) of title 31, United States Code, the Administrator may enter into contracts for periods of not more than 5 years for the following types of services (and items of supply related to such services) for which funds would otherwise be available for obligation only within the fiscal year for which appropriated— “(A) operation, maintenance, and support of facilities and installations; “(B) operation, maintenance, or modification of aircraft, vehicles, and other highly complex equipment; “(C) specialized training necessitating high quality instructor skills (for example, pilot and aircrew members; foreign language training); and “(D) base services (for example, ground maintenance, in-plane refueling; bus transportation; refuse collection and disposal). “(2) Findings.—The Administrator may enter into a contract described in paragraph (1) only if the Administrator finds that— “(A) there will be a continuing requirement for the services consonant with current plans for the proposed contract period; “(B) the furnishing of such services will require a substantial initial investment in plant or equipment, or the incurrence of substantial contingent liabilities for the assembly, training, or transportation of a specialized workforce; and “(C) the use of such a contract will promote the best interests of the United States by encouraging effective competition and promoting economies in operation. “(3) Guidance principles.—In entering into contracts described in paragraph (1), the Administrator shall be guided by the following principles: “(A) The portion of the cost of any plant or equipment amortized as a cost of contract performance should not exceed the ratio between the period of contract performance and the anticipated useful commercial life of such plant or equipment. Useful commercial life, for this purpose, means the commercial utility of the facilities rather than the physical life thereof, the due consideration given 104 STAT. 1388–367to such factors as location of facilities, specialized nature thereof, and obsolescence. “(B) Consideration shall be given to the desirability of obtaining an option to renew the contract for a reasonable period not to exceed 3 years, at prices not to include charges for plant, equipment, and other nonrecurring costs, already amortized. “(C) Consideration shall be given to the desirability of reserving in the Federal Aviation Administration the right, upon payment of the unamortized portion of the cost of the plant or equipment, to take title thereto under appropriate circumstances. “(4) Termination.—In the event funds are not made available for the continuation of a contract described in paragraph (1) into a subsequent fiscal year, the contract shall be canceled or terminated, and the costs of cancellation or termination may be paid from— “(A) appropriations originally available for the performance of the contract concerned; “(B) appropriations currently available for procurement of the type of services concerned, and not otherwise obligated; or “(C) funds appropriated for those payments. “(f) Multiyear Property Acquisition Contracts.— “(1) In general.—Notwithstanding section 1341(a)(1)(B) of title 31, United States Code, to the extent that funds are otherwise available for obligation, the Administrator may make multiyear contracts (other than contracts described in paragraph (6)) for the purchase of property, whenever the Administrator finds— “(A) that the use of such a contract will promote the safety or efficiency of the National Airspace System and will result in reduced total costs under the contract; “(B) that the minimum need for the property to be purchased is expected to remain substantially unchanged during the contemplated contract period in terms of production rate, procurement rate, and total quantities; “(C) that there is a reasonable expectation that through-out the contemplated contract period the Administrator will request funding for the contract at the level required to avoid contract cancellation; “(D) that there is a stable design for the property to be acquired and that the technical risks associated with such property are not excessive; and “(E) that the estimates of both the cost of the contract and the anticipated cost avoidance through the use of a multiyear contract are realistic. “(2) Regulations.— “(A) General rule.—The Administrator shall issue regulations for acquisition of property under this subsection to promote the use of multiyear contracting as authorized by paragraph (1) in a manner that will allow the most efficient use of multiyear contracting. “(B) Cancellation provisions.—The regulations issued under this paragraph may provide for cancellation provisions in multiyear contracts described in paragraph (1) to the extent that such provisions are necessary and in the 104 STAT. 1388–368best interests of the United States. Such cancellation provisions may include consideration of both recurring and nonrecurring costs of the contractor associated with the production of the items to be delivered under the contract. “(C) Broadening industrial base.— In order to broaden the aviation industrial base, the regulations issued under this paragraph shall provide that, to the extent practicable— “(i) multiyear contracting under paragraph (1) shall be used in such a manner as to seek, retain, and promote the use under such contracts of companies that are subcontractors, vendors, or suppliers; and “(ii) upon accrual of any payment or other benefit under such a multiyear contract to any subcontract, vendor, or supplier company participating in such con-tractor, such payment or benefit shall be delivered to such company in the most expeditious manner practicable. “(D) Protection of federal interests.—The regulations issued under this paragraph shall also provide that, to the extent practicable, the administration of this subsection, and of the regulations issued under this subsection, shall not be carried out in a manner to preclude or curtail the existing ability of the Federal Aviation Administration to—“(i) provide for competition in the production of items to be delivered under such a contract; or “(ii) provide for termination of a prime contract the performance of which is deficient with respect to cost, quality, or schedule. “(3) Special rule for contracts with high cancellation ceiling.—Before any contract described in paragraph (1) that contains a clause setting forth a cancellation ceiling in excess of $100,000,000 may be awarded, the Administrator shall give written notification of the proposed contract and of the pro-posed cancellation ceiling for that contract to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Public Works and Transportation of the House of Representatives, and such contract may not then be awarded until the end of a period of 30 days beginning on the date of such notification. “(4) Advance procurement.—Contracts made under this subsection may be used for the advance procurement of components, parts, and materials necessary to the manufacture of equipment to be used in the National Airspace System, and contracts may be made under this subsection for such advance procurement, if feasible and practicable, in order to achieve economic-lot purchases and more efficient production rates. “(5) Termination.—In the event funds are not made available for the continuation of a contract made under this subsection into a subsequent fiscal year, the contract shall be canceled or terminated, and the costs of cancellation or termination may be paid from— “(A) appropriations originally available for the performance of the contract concerned; “(B) appropriations currently available for procurement of the type of property concerned, and not otherwise obligated; or 104 STAT. 1388–369 “(C) funds appropriated for those payments. “(6) Limitation on applicability.—This subsection does not apply to contracts for the construction, alteration, or major repair or improvements to real property or contracts for the purchase of property to which section 111 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 759) applies. “(7) Multiyear contract defined.—For the purposes of this subsection, a multiyear contract is a contract for the purchase of property or services for more than 1, but not more than 5, fiscal years. Such a contract may provide that performance under the contract during the second and subsequent years of the contract is contingent upon the appropriation of funds and (if it does so provide) may provide for a cancellation payment to be made to the contractor if such appropriations are not made. “(8) Price options.—The Administrator may incorporate into a proposed multiyear contract negotiated priced options for varying the quantities of end items to be procured over the period of the contract.”. (b) Conforming Amendment.—The portion of the table of contents contained in the first section of such Act relating to section 303 is amended to read as follows: “Sec. 303. Procurement authority. “(a) Acquisition and disposal of property. “(b) Special rules for acquisitions. “(c) Procurement procedures. “(d) Sole source approval by Administrator. “(e) Multiyear service contracts. “(f) Multiyear property acquisition contracts.”.