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1 1 (September 13, 2019)

handle is hein.crs/govbbaq0001 and id is 1 raw text is: Cogesoa Resarc Seric September 13, 2019 Department of Defense Outleasing and Enhanced Use Leases Pursuant to 10 U.S.C. §2667, the Secretary of Defense and the Secretaries of the Military Departments are authorized to lease-out (otherwise outlease) department-owned non- excess real or personal property (commonly called outlease authority). According to 40 U.S.C. § 102(3), excess property is defined as property under the control of a federal agency that the head of the agency determines is not required to meet the agency's needs or responsibilities. DOD's outlease authority applies only to non-excess property, meaning that to some degree it meets a DOD need, and is not in a disposal process where it would be removed from DOD's inventory. Other requirements are that the property must not for the time be needed for public use, and that it must be under the control of the Secretary concerned. DOD exercises its outlease authority for real property generally through two types of contracts: short-term cash consideration leases (five years or less) for activities such as farming or grazing, or more complex ground leases called Enhanced Use Leases (EULs), which typically have longer leasing periods (e.g., 5-55 years) and may include unique development terms that can benefit military installations. DOD's outlease authority also permits the collection of in-kind consideration in addition to, or in lieu of, cash payments, as long as the amount is generally not less than the fair market value of the lease interest. Types of in-kind consideration named in 10 U.S.C. §2667 include: * Maintenance, protection, alteration, repair, improvement, or restoration (incl. environmental restoration) of property or facilities under the control of the Secretary concerned. * Construction of new facilities for the Secretary concerned. * Provision of facilities for use by the Secretary concerned. * Provision or payment of utility services for the Secretary concerned, which shall prioritize energy resilience in the event of commercial grid outages. * Provision of real property maintenance services for the Secretary concerned. * Provision of such other services relating to activities that will occur on the leased property as the Secretary concerned considers appropriate. An EUL is not a legally defined partnership between DOD and a selected developer, since DOD does not contribute equity to a project or guarantee revenue to the developer. However, EULs may offer several benefits to each party involved and can encourage public-private partnerships and public-to-public partnerships through relationship building. DOD can also use an EUL to support additional federal contracting authorities such as: cooperative research and development agreements (CRADAs), intergovernmental support agreements (IGSAs), and power purchase agreements (PPAs). DOD views EULs as a useful contracting tool that can help manage deteriorating and underused facilities (i.e., facilities that are vacant or partially vacant) and undeveloped land that a department does not seek to label excess, but also lacks the funding to improve or modernize. Thus, DOD has continued to use EULs for underutilized real property, to be able to repair and maintain existing facilities, or to construct new facilities that promote the national defense or are in the public interest. Payments received from outleasing are placed in a special account in the Treasury, where at least 50% of the proceeds are made available to the originating military installation or defense agency location. Congressional Involvement Congress participates in the approval process for EULs and has oversight responsibilities to try to ensure DOD is adhering to its statutory requirements, such as those set forth in 10 U.S.C. §2667 (see GAO-1 1-574). Members of Congress may also play a role in the development of EULs by helping identify developers, facilitating government communications, and encouraging and promoting projects. DOD Management of EULs The Deputy Assistant Secretary of Defense (DASD) for Infrastructure (INF) manages real property accountability and real estate policy in DOD, on behalf of the Secretary of Defense. However, because outleasing authority is granted to each of the Service Secretaries, and pertains to both real and personal property, each Military Department is responsible for establishing and managing leases under section 2667 for property they own. EULs for DOD-owned property (i.e., the Defense Agencies, DOD Field Activities, and U.S. Special Operations Command) are authorized by the Secretary of Defense and managed by the Office of the Secretary of Defense. EULs are not governed by the Federal Acquisition Regulation System. Army Management Within the Department of the Army, the Deputy Assistant Secretary of the Army for Installations, Housing, and Partnerships (DASA-IH&P) provides worldwide policy, programming and oversight of the Secretary of the Army's Title 10 U.S. Code responsibilities in the areas of real estate. The DASA-IH&P must approve leases for any real property for more than five years, including EULs. The U.S. Army Corps of Engineers manages the Army EUL program and is responsible for EUL project development, execution, and management (see Army Regulation 700-90, Army Industrial Base Process). Air Force Management Within the Department of the Air Force, the Deputy Assistant Secretary of the Air Force for Installations (SAF/IEI), provides guidance, direction, and oversight of matters pertaining to the shaping and strengthening of Air Force installations, and has responsibility for Air Force https:I/crsreports.conc -- _-_ 0

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