S.Amdt. 2781

SA 2781. Mr. HATCH submitted an amendment intended to be proposed to
amendment SA 2282 proposed by Mr. Inhofe (for himself and Mr. McCain)
to the bill H.R. 5515, to authorize appropriations for fiscal year 2019
for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:

At the end of title XXVIII, add the following:

Subtitle E--Real Property and Facilities Administration

SEC. 2851. PILOT PROGRAM ALLOWING FOR LEASING OF FACILITIES
CONSTRUCTED BY AN EXISTING GROUND LESSEE.

(a) Pilot Program.--
(1) In general.--The Secretary of the Air Force shall
establish a pilot program at the Secretary's discretion at
one Air Force installation in accordance with criteria listed
in subsection (b) to lease facilities constructed and owned
by an existing ground lessee of land to support any missions
or operations required to be located on the installation.
(2) Duration.--The pilot program shall be in effect for a
period not to exceed five years. Any construction commenced
prior to the expiration of such pilot program period may
continue to completion.
(3) Authority.--During the pilot period, the Secretary
concerned may enter into a facility lease, including a build-
to-suit lease, with the ground lessee or owner which shall be
for a term that is customary and reasonable in the commercial
leasing industry for similar leases and which shall allow for
unrestricted assignment and sublease by the Secretary
concerned to other military services or Federal agencies upon
terms and conditions the Secretary concerned determines may
be advantageous or beneficial.
(4) Termination.--The Secretary of the Air Force or
installation commander may terminate any agreement entered
into under paragraph (1) with appropriate advance notice to
the other party.
(b) Secretarial Determination.--Before exercising the
authority under subsection (a)(3), the Secretary concerned
must make a determination that--
(1) there is an existing ground lessee of land on an
installation controlled by the Secretary which is in good
standing and not in breach of any existing agreement with the
Air Force, has a proven record of success constructing and
leasing commercial facilities on the installation, and is in
at least the tenth year of operation on the installation; and
(2) there is a need to have access to newly constructed
facilities on the installation concerned that can be
available for--
(A) a mission or operation on the installation controlled
by the Secretary concerned which is required to be located on
the installation, but for which there are no suitable
facilities existing and immediately available on the
installation to meet the needs or requirements of the
Secretary; or
(B) a mission or operation on the installation controlled
by the Secretary concerned which is not required to be
located on the installation, but for which there are no
suitable facilities existing and immediately available within
reasonable distance outside the installation to accommodate
the needs or requirements of the Secretary.
(c) Data and Information.--The ground lessee who will
construct and own the facilities to be leased by the
Secretary concerned pursuant to the pilot program shall
maintain accurate data, documentation, and information
concerning the facilities constructed, including plans,
specifications, materials, labor, hard and soft costs,
expenses, change orders, schedules, delays, time of delivery,
and any other information and data necessary or desired by
the Secretary concerned to make the evaluations and
determinations that are the purpose of the pilot program.
(d) Evaluation Report.--
(1) In general.--Not later that six years after the date of
enactment of this Act, the Secretary concerned shall submit
to the congressional defense committees a report on the pilot
program.
(2) Elements.--The report required under paragraph (1)
shall include the following elements:
(A) An analysis and evaluation of the data, documentation,
and information provided pursuant to subsection (c).
(B) The business, economic, risk, and technical
justification for leasing newly constructed facilities from
an existing ground lessee on an installation as an
alternative to utilizing the military construction process in
order to have access to cost-effective rapidly and readily
available newly constructed facilities to meet organizational
or functional missions or goals.
(C) An evaluation of the impact if the pilot program were
to be made permanent and adopted enterprise-wide.
(D) Recommendations for any additional legislation needed
to ensure that expansion of the pilot program.
(e) Non-applicability of Laws and Regulations.--Section
2667 of title 10, United States Code, OMB Circular A-11, and
applicable regulations promulgated by the General Services
Administration shall not be construed as prohibiting or
restricting leasebacks or governing leases of facilities
under the pilot program.
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