Facility construction or repair: transactions other than contracts and grants

Source Credit

(a) Authority.—Subject to the requirements of section 2853 of this title, the Secretary concerned may enter into transactions (other than contracts, cooperative agreements, or grants) to carry out repair and construction projects for facilities, including the planning, design, engineering, prototyping, piloting, and execution of such repair and construction projects.
(b) Use of Amounts.—The Secretary concerned may carry out projects under subsection (a) using amounts available to such Secretary for military construction, operation and maintenance, or research, development, test, and evaluation, notwithstanding chapters 221 and 223 and section 2851(a) of this title.
(c) Follow-on Transactions.—A transaction entered into under this section for a project may provide for the award of a follow-on production contract or transaction to the participants in the transaction without further competition, if—
(1) competitive procedures were used for the selection of parties for participation in the original transaction; and
(2) the participants in the original transaction successfully completed—
(A) a complete and useable facility; or
(B) a complete and useable improvement to a facility.
(d) Notification Requirement.—(1) Not later than 14 days before entering into a transaction for a project under this section, the Secretary concerned shall submit to the congressional defense committees a notification of the intent to use this authority in an electronic medium pursuant to section 480 of this title.
(2) Each notification under paragraph (1) shall include—
(A) the project title;
(B) a description of the project and its location;
(C) the estimated project cost and source of funds;
(D) the recipient or contractor selected to execute the project, if known at the time of notification; and
(E) the rationale for using the authority under this section instead of the process for military construction projects under subchapter I of chapter 169 of title 10, United States Code.
(e) Report.—Not later than 180 days after the date of enactment of this section, and biannually thereafter, the Secretary of Defense shall submit to the congressional defense committees a report summarizing the use of the authority under this section during the period covered by the report, including—
(1) the military department or Defense Agency carrying out each project;
(2) the total cost of each project and the source of the funds obligated;
(3) a description of the scope, purpose, and location of each project;
(4) any observed differences in project delivery timelines or execution speed as a result of using the authority under this section;
(5) an assessment of cost savings, efficiencies, or risk reductions realized through the use of such authority; and
(6) lessons learned and recommendations to improve the implementation, oversight, or scope of such authority.

History

(Added Pub. L. 119–60, div. B, title XXVIII, §2802(a), Dec. 18, 2025, 139 Stat. 1292.)

Editorial Notes

Editorial Notes

References in Text
The date of enactment of this section, referred to in subsec. (e), is the date of enactment of Pub. L. 119–60, which was approved Dec. 18, 2025.

Statutory Notes and Related Subsidiaries

Effective Date
Pub. L. 119–60, div. B, title XXVIII, §2802(b), Dec. 18, 2025, 139 Stat. 1293, provided that: "The amendments made by this section [enacting this section] shall apply with respect to transactions entered into on or after the date of the enactment of this Act [Dec. 18, 2025]."