S.Amdt. 6541

SA 6541 is an amendment proposed by Mr. Moran and Mr. Cotton to be added to bill S. 4784. Its purpose is to give the Secretary of the Army the authority to enter into long-term leases or charters for aircraft and related equipment and support for the High Accuracy Detection and Exploitation System (HADES) program.

The amendment aims to add the following to the bill:

• Contract Rules: It allows for contracts up to ten years long. These may include options to purchase the aircraft after the fifth year or to acquire the title at the end of the contract. The Secretary can also terminate the contract for the convenience of the Government on an annual basis.

• Funding and Payments: It specifies that these contracts be treated as operating leases. This means budget authority is only required for payments due in each fiscal year plus any termination liability. Funds for operation and maintenance can be used for these contracts, and the Secretary does not have to obligate the total lease amount or net present value in the first year.

• Reporting: Instead of standard notification requirements, the Secretary must notify congressional defense committees 30 days before a contract is signed. This notice must include the contract description, a cost comparison between leasing and buying, and how the contract helps Army intelligence, surveillance, and reconnaissance requirements.

• Deadline: The authority to start new contracts under this amendment expires on September 30, 2030, though any contracts signed before then remain valid.