Defense Bill Could Encourage Services’ Use of EUL Projects

House and Senate Armed Services committee leaders hashing out a compromise version of the fiscal 2014 defense authorization bill retained language allowing installation officials to use the proceeds from enhanced used leasing (EUL) projects to cover the administrative costs of launching and managing new projects, a move that could make it easier for the services to consider new projects.

As a result, installation officials no longer would need to commit base support funding for administrative expenses associated with studying the feasibility of new EUL efforts and managing the acquisition process to select a developer.

Covered expenses include those “related to assessing, negotiating, executing and managing lease and easement transactions,” according to section 2812 of the measure, which amends 10 U.S.C. Sec. 2667. Government personnel costs, however, are not considered covered expenses. The provision is only slightly changed from the original language, section 2811, in the Senate version of the annual policy bill. It also allows installations to use the proceeds from easements to offset administrative costs.

At press time, the Senate was scheduled to hold a final vote on the authorization bill Thursday night. The bill is expected to pass relatively easily, sending it to President Obama’s desk for his signature.

Earlier in the day, the chamber rejected a motion to open up the debate to amendments. Majority Leader Harry Reid (D-Nev.) is preventing any changes to the measure, as the House adjourned for the year after passing the compromise bill last week and won’t have an opportunity to revisit the legislation.

The text of the bill is available on the House Armed Services Committee website.

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