LEASE OF NON-EXCESS PROPERTY OF DEFENSE AGENCIES.

SEC. 1062. LEASE OF NON-EXCESS PROPERTY OF DEFENSE AGENCIES. (a) Lease Authority.—Chapter 159 of title 10, United States Code, is amended by inserting after section 2667 the following new section: “§2667a. Leases: non-excess property of Defense agencies “(a) Lease Authority.—Whenever the Secretary of Defense considers it advantageous to the United States, the Secretary may lease to such lessee and upon such terms as the Secretary considers will promote the national defense or to be in the public interest, personal property that is— “(1) under the control of a Defense agency, “(2) not for the time needed for public use; and “(3) not excess property, as defined by section 3 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 472). “(b) Limitation, Terms, and Conditions.—A lease under subsection (a)—111 STAT. 1892 “(1) may not be for more than five years unless the Secretary of Defense determines that a lease for a longer period will promote the national defense or be in the public interest; “(2) may give the lessee the first right to buy the property if the lease is revoked to allow the United States to sell the property under any other provision of law; “(3) shall permit the Secretary to revoke the lease at any time, unless the Secretary determines that the omission of such a provision will promote the national defense or be in the public interest; “(4) shall provide for the payment (in cash or in kind) by the lessee of consideration in an amount that is not less than the fair market value of the lease interest, as determined by the Secretary; and “(5) may provide, notwithstanding any other provision of law, for the improvement, maintenance, protection, repair, restoration, or replacement by the lessee, of the property leased as the payment of part or all of the consideration for the lease. “(c) Competitive Selection.—(1) If the term of a proposed lease under subsection (a) exceeds one year and the fair market value of the lease interest exceeds $100,000, as determined by the Secretary of Defense, the Secretary shall use competitive procedures to select the lessee. “(2) Not later than 45 days before entering into a lease described in paragraph (1), the Secretary shall submit to Congress a written notice describing the terms of the proposed lease and the competitive procedures used to select the lessee. “(d) Disposition of Money Rent.—Money rentals received pursuant to a lease entered into by the Secretary of Defense under subsection (a) shall be deposited in a special account in the Treasury established for the Defense agency whose property is subject to the lease. Amounts in a Defense agency’s special account shall be available, to the extent provided in appropriations Acts, solely for the maintenance, repair, restoration, or replacement of the leased property.”. (b) Clerical Amendment.—The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2667 the following new item: “2667a. Leases: non-excess property of Defense agencies.”.