82 STAT. ]
PUBLIC LAW 90-378-JULY 5, 1968
289
Public Law 90-378 AN ACT To amend section 2306 of title 10, United States Code, to authorize certain contracts for services and related supplies to extend beyond one year.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 2306 of title 10, United States Code, is amended by adding the following new subsection after subsection (f): " (g)(1) The head of an agency may enter into contracts for periods of not more than five years for the following types of services (and items of supply related to such services) to be performed outside the forty-eight contiguous States and the District of Columbia 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) maintenance or modification of aircraft, ships, vehicles, and other highly complex military equipment; " (C) specialized training necessitating high quality instructor skills (for example, pilot and other aircrew members; foreign language training); and " (D) base services (for example, ground maintenance; in-plane refueling; bus transportation; refuse collection and disposal); whenever he finds that: "(i) there will be a continuing requirement for the services consonant with current plans for the proposed contract period; "(ii) 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 work force; and " (iii) the use of such a contract will promote the best inteirests of the United States by encouraging effective competition and promoting economies in operation. "(2) I n entering into such contracts, the head of the agency 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 anticipajted 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, with due consideration given to such factors as location of facilities, specialized nature thereof, and obsolescence. " (B) consideration shall be given to the desirability of obta.ining an option to renew the contract for a reasonable period not to exceed three 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 agency the right, upon payment of the unamortized portion of the cost of the plant or equipment, to take title thereto under appropriate circumstances. "(3) In the event funds are not made available for the continuation of such a contract 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;
July 5, 1968 [H. R. 15789]
MuTuyearpro-' curement, authori^^*oT 75 Stat.*52'8. '
Guidelines.
Renewal option.
cancellation.
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