# § 7554. Property management contracts and leases
**(a)** **In General.—** In the case of each eligible facility that is made available for the ARMS Initiative, the Secretary—
**(1)** shall make full use of facility use contracts, leases, and other such commercial contractual instruments as may be appropriate;
**(2)** shall evaluate, on the basis of efficiency, cost, emergency mobilization requirements, and the goals and purposes of the ARMS Initiative, the procurement of services from the property manager, including maintenance, operation, modification, infrastructure, environmental restoration and remediation, and disposal of ammunition manufacturing assets, and other services; and
**(3)** may, in carrying out paragraphs (1) and (2)—
**(A)** enter into contracts, and provide for subcontracts, for terms up to 25 years, as the Secretary considers appropriate and consistent with the needs of the Department of the Army and the goals and purposes of the ARMS Initiative; and
**(B)** use procedures that are authorized to be used under section 3204(a)(5) of this title when the contractor or subcontractor is a source specified in law.
**(b)** **Consideration for Use.—**
**(1)** To the extent provided in a contract entered into under this section for the use of property at an eligible facility that is accountable under the contract, the Secretary may accept consideration for such use that is, in whole or in part, in a form other than—
**(A)** rental payments; or
**(B)** revenue generated at the facility.
**(2)** Forms of consideration acceptable under paragraph (1) for a use of an eligible facility or any property at an eligible facility include the following:
**(A)** The improvement, maintenance, protection, repair, and restoration of the facility, the property, or any property within the boundaries of the installation where the facility is located.
**(B)** Reductions in overhead costs.
**(C)** Reductions in product cost.
**(D)** The demilitarization and storage of conventional ammunition.
**(3)** The authority under paragraph (1) may be exercised without regard to section 3302(b) of title 31 and any other provision of law.
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**Source Credit**: (Added Pub. L. 106–398, § 1 [[div. A], title III, § 344(a)(1)], Oct. 30, 2000, 114 Stat. 1654, 1654A–69, § 4554; amended Pub. L. 109–163, div. A, title III, § 323(b), Jan. 6, 2006, 119 Stat. 3194; renumbered § 7554, Pub. L. 115–232, div. A, title VIII, § 808(d), Aug. 13, 2018, 132 Stat. 1839; Pub. L. 116–283, div. A, title XVIII, § 1883(b)(2), Jan. 1, 2021, 134 Stat. 4294.)
## Editorial Notes
### Amendments
2021—Subsec. (a)(3)(B). substituted “section 3204(a)(5)” for “section 2304(c)(5)”.
2018— renumbered as this section.
2006—Subsec. (b)(2)(D). added subpar. (D).
## Statutory Notes and Related Subsidiaries
### Effective Date of 2021 Amendment
Amendment by effective , with additional provisions for delayed implementation and applicability of existing law, see , set out as a note preceding .
### Effective Date of 2018 Amendment
Amendment by effective , with provision for the coordination of amendments and special rule for certain redesignations, see , set out as a note preceding .
### Temporary Authority To Extend Contracts and Leases Under the Arms Initiative
> “Contracts or subcontracts entered into pursuant to
>
> , United States Code, on or before
>
> , may include an option to extend the term of the contract or subcontract for an additional 25 years.”
, , , as amended by , , ; , , , provided that: