110 STAT. 392 PUBLIC LAW 104-106—FEB. 10, 1996 10 USC 2401a note. Reports. Reports. "§ 2401a. Lease of vehicles, equipment, vessels, and aircraft". (2) The item relating to section 2401a in the table of sections at the beginning of chapter 141 of such title is amended to read as follows: "2401a. Lease of vehicles, equipment, vessels, and aircraft.". (b) REPORT. —Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report setting forth changes in legislation that would be required to facilitate the use of leasing in the acquisition of equipment by the Department of Defense. (c) PILOT PROGRAM. —(1) The Secretary of the Army may conduct a pilot program for leasing commercial utility cargo vehicles in accordance with this subsection. (2) Under the pilot program— (A) the Secretary may trade existing commercial utility cargo vehicles of the Army for credit against the costs of leasing new replacement commercial utility cargo vehicles for the Army; (B) the quantities and trade-in value of commercial utility cargo vehicles to be traded in shall be subject to negotiation between the Secretary and the lessors of the new replacement commercial utility cargo vehicles; (C) the lease agreement for a new commercial utility cargo vehicle may be executed with or without an option to purchase at the end of the lease period; (D) the lease period for a new commercial utility cargo vehicle may not exceed the warranty period for the vehicle; and (E) up to 40 percent of the validated requirement for commercial utility cargo vehicles may be satisfied by leasing such vehicles, except that one or more options for satisfying the remainder of the validated requirement may be provided for and exercised (subject to the requirements of paragraph (6)). (3) In awarding contracts under the pilot program, the Secretary shall comply with section 2304 of title 10, United States Code. (4) The pilot program may not be commenced until— (A) the Secretary submits to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report that contains the plans of the Secretary for implementing the program and that sets forth in detail the savings in operating and support costs expected to be derived from retiring older commercial utility cargo vehicles, as compared to the expected costs of leasing newer commercial utility cargo vehicles; and (B) a period of 30 calendar days has elapsed after submission of such report. (5) Not later than one year after the date on which the first lease under the pilot program is entered into, the Secretary of the Army shall submit to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives a report on the status of the pilot program. Such report shall be based on at least six months of experience in operating the pilot program.
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