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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

House Conference Report 109-360

SEC. 815. MODIFICATION OF REQUIREMENTS APPLICABLE TO CONTRACTS AUTHORIZED BY LAW FOR CERTAIN MILITARY MATERIEL.

(a) Inclusion of Combat Vehicles Under Requirements- Section 2401 of title 10, United States Code, is amended--

(1) by striking `vessel or aircraft' each place it appears and inserting `vessel, aircraft, or combat vehicle';

(2) in subsection (c), by striking `aircraft or naval vessel' each place it appears and inserting `aircraft, naval vessel, or combat vehicle';

(3) in subsection (e), by striking `aircraft or naval vessels' each place it appears and inserting `aircraft, naval vessels, or combat vehicles'; and

(4) in subsection (f)--

(A) by striking `aircraft and naval vessels' and inserting `aircraft, naval vessels, and combat vehicles'; and

(B) by striking `such aircraft and vessels' and inserting `such aircraft, vessels, and combat vehicles'.

(b) Additional Information for Congress- Subsection (b) of such section is amended--

(1) in paragraph (1)--

(A) in subparagraph (B), by striking `and' at the end;

(B) in subparagraph (C), by striking the period at the end and inserting `; and'; and

(C) by adding at the end the following new subparagraph:

`(D) the Secretary has certified to those committees--

`(i) that entering into the proposed contract as a means of obtaining the vessel, aircraft, or combat vehicle is the most cost-effective means of obtaining such vessel, aircraft, or combat vehicle; and

`(ii) that the Secretary has determined that the lease complies with all applicable laws, Office of Management and Budget circulars, and Department of Defense regulations.'; and

(2) by adding at the end the following new paragraphs:

`(3) Upon receipt of a notice under paragraph (1)(C), a committee identified in paragraph (1)(B) may request the Inspector General of the Department of Defense or the Comptroller General of the United States to conduct a review of the proposed contract to determine whether or not such contract meets the requirements of this section.

`(4) If a review is requested under paragraph (3), the Inspector General of the Department of Defense or the Comptroller General of the United States, as the case may be, shall submit to the Secretary and the congressional defense committees a report on such review before the expiration of the period specified in paragraph (1)(C).'.

(c) Applicability of Acquisition Regulations- Such section is further amended--

(1) by redesignating subsection (f) as subsection (g); and

(2) by inserting after subsection (e) the following new subsection (f):

`(f)(1) If a lease or charter covered by this section is a capital lease or a lease-purchase--

`(A) the lease or charter shall be treated as an acquisition and shall be subject to all applicable statutory and regulatory requirements for the acquisition of aircraft, naval vessels, or combat vehicles; and

`(B) funds appropriated to the Department of Defense for operation and maintenance may not be obligated or expended for the lease or charter.

`(2) In this subsection, the terms `capital lease' and `lease-purchase' have the meanings given those terms in Appendix B to Office of Management and Budget Circular A-11, as in effect on the date of the enactment of the National Defense Authorization Act for Fiscal Year 2006.'.

(d) Conforming and Clerical Amendments-

(1) SECTION HEADING- The heading of such section is amended to read as follows:

`Sec. 2401. Requirement for authorization by law of certain contracts relating to vessels, aircraft, and combat vehicles'.

(2) TABLE OF SECTIONS- The table of sections at the beginning of chapter 141 of such title is amended by striking the item relating to section 2401 and inserting the following new item:

`2401. Requirement for authorization by law of certain contracts relating to vessels, aircraft, and combat vehicles.'.

The Senate amendment contained a provision (sec. 808) that would modify section 2401 of title 10, United States Code, with respect to requirements for authorization by law of certain contracts for leasing military equipment.

The House bill contained no similar provision.

The House recedes.