Page:United States Statutes at Large Volume 119.djvu/3533

 PUBLIC LAW 109–163—JAN. 6, 2006

119 STAT. 3515

(2) by adding at the end the following new paragraph: ‘‘(2) The Secretary concerned may not enter into a contract to convey a utility system, or part of a utility system, under this subsection until— ‘‘(A) the Secretary submits to the congressional defense committees an economic analysis, based upon accepted lifecycle costing procedures approved by the Secretary of Defense, that demonstrates that— ‘‘(i) the long-term economic benefit to the United States of the conveyance of the utility system, or part thereof, exceeds the long-term economic cost to the United States of the conveyance; ‘‘(ii) the conveyance of the utility system, or part thereof, will reduce the long-term cost to the United States of utility services provided by the utility system; and ‘‘(iii) the economic benefit analysis under clause (i) and the cost reduction analysis under clause (ii) incorporate margins of error in the estimates, based upon guidance approved by the Secretary of Defense that minimize any underestimation of the costs resulting from privatization of the utility system, or part thereof, or any overestimation of the costs resulting from continued Government ownership and management of the utility system, or part thereof; and ‘‘(B) the end of the 21-day period beginning on the date on which the economic analysis prepared under subparagraph (A) with respect to the conveyance of the utility system, or part thereof, is received by the congressional defense committees or, if over earlier, the end of the 14-day period beginning on the date on which a copy of the economic analysis is provided in an electronic medium pursuant to section 480 of this title.’’. (b) CONSIDERATION.—Subsection (c)(1) of such section is amended by striking ‘‘shall’’ and inserting ‘‘may’’. (c) DURATION OF UTILITY SERVICES CONTRACTS IN CONNECTION WITH CONVEYANCES.—Such section is further amended— (1) by redesignating subsections (d) through (i) as subsections (e) through (j), respectively; and (2) by redesignating paragraph (3) of subsection (c) as subsection (d) and, in such subsection (as so redesignated)— (A) by striking ‘‘A contract’’ and inserting ‘‘CONTRACTS FOR UTILITY SERVICES.—(1) Except as provided in paragraph (2), a contract’’; (B) by striking ‘‘paragraph (1)’’ and inserting ‘‘subsection (c)’’; (C) by striking ‘‘50 years.’’ and inserting ‘‘10 years.’’; and (D) by adding at the end the following new paragraph: ‘‘(2) The Secretary of Defense, or the designee of the Secretary, may authorize a contract for utility services described in paragraph (1) to have a term in excess of 10 years, but not to exceed 50 years, if the Secretary determines that a contract for a longer term will be cost effective. The economic analysis submitted to the congressional defense committees under subsection (a)(2) for the conveyance of the utility system, or part thereof, with regard to which the utility services contract will be entered into by the Secretary concerned shall include the determination required by this paragraph, an explanation of the need for the longer term

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