LONG-TERM FACILITIES CONTRACTS.

SEC. 2805. LONG-TERM FACILITIES CONTRACTS. (a) Modification and Permanent Extension of Test Program.—(1) Section 2809 of title 10, United States Code, is amended to read as follows: “§ 2809. Longterm facilities contracts for certain activities and services “(a) Submission and Authorization of Proposed Projects.—The Secretary concerned may enter into a contract for the procurement of services in connection with the construction, management, and operation of a facility on or near a military installation for the provision of an activity or service described in subsection (b) if— “(1) the Secretary concerned has identified the proposed project for that facility in the budget material submitted to Congress by the Secretary of Defense in connection with the budget submitted pursuant to section 1105 of title 31 for the fiscal year in which the contract is proposed to be awarded; “(2) the Secretary concerned has determined that the services to be provided at that facility can be more economically provided through the use of a longterm contract than through the use of conventional means; and 105 STAT. 1538 “(3) the project has been authorized by law. “(b) Authorized Purposes of Contract.—The activities and services referred to in subsection (a) are as follows: “(1) Child care services. “(2) Utilities, including potable and waste water treatment services. “(3) Depot supply activities. “(4) Troop housing. “(5) Transient quarters. “(6) Hospital or medical facilities. “(7) Other logistic and administrative services, other than depot maintenance. “(c) Conditions on Obligation of Funds.—A contract entered into for a project pursuant to subsection (a) shall include the following provisions: “(1) A statement that the obligation of the United States to make payments under the contract in any fiscal year is subject to appropriations being provided specifically for that fiscal year and specifically for that project. “(2) A commitment to obligate the necessary amount for each fiscal year covered by the contract when and to the extent that funds are appropriated for that project for that fiscal year. “(3) A statement that such a commitment given under the authority of this section does not constitute an obligation of the United States. “(d) Competitive Procedures.—Each contract entered into under this section shall be awarded through the use of competitive procedures as provided in chapter 137 of this title. In accordance with such procedures, the Secretary concerned shall solicit bids or proposals for a contract for each project that has been authorized by law. “(e) Term of Contract.—A contract under this section may be for any period not in excess of 32 years, excluding the period for construction. “(f) Notice and Wait Requirements.—A contract may not be entered into under this section until— “(1) the Secretary concerned submits to the appropriate committees of Congress, in writing, a justification of the need for the facility for which the contract is to be awarded and an economic analysis (based upon accepted life cycle costing procedures) which demonstrates that the proposed contract is cost effective when compared with alternative means of furnishing the same facility; and “(2) a period of 21 calendar days has expired following the date on which the justification and the economic analysis are received by the committees.”. (2) The item relating to such section in the table of sections at the beginning of subchapter I of chapter 169 of such title is amended to read as follows: “2809. Longterm facilities contracts for certain activities and services.”. (b) Application of Amendment.—Section 2809 of title 10, United States Code, as amended by subsection (a), shall apply with respect to contracts entered into under that section on or after the date of the enactment of this Act. 105 STAT. 1539