H. R. 1758—361
(B) a foreign air carrier not engaged directly in operating
aircraft in foreign air transportation.
(2) The exemption is effective to the extent and for periods
that the Secretary decides are in the public interest.
(b) SAFETY REGULATION.—The Administrator of the Federal
Aviation Administration may grant an exemption from a regulation
prescribed in carrying out sections 40103(b)(1) and (2), 40119,
44901, 44903, 44906, and 44935–44937 of this title when the
Administrator decides the exemption is in the public interest.
(c) OTHER ECONOMIC REGULATION.—Except as provided in this
section, the Secretary may exempt to the extent the Secretary
considers necessary a person or class of persons from a provision
of chapter 411, sections 41301–41306, 41308–41310(a), 41501,
41503, 41504, 41506, 41510, 41511, 41701, 41702, 41705–41709,
41711, 41712, and 41731–41742, chapter 419, subchapter II of chap-
ter 421, and section 46301(b) of this title, or a regulation or term
prescribed under any of those provisions, when the Secretary
decides that the exemption is consistent with the public interest.
(d) LABOR REQUIREMENTS.—The Secretary may not exempt an
air carrier from section 42112 of this title. However, the Secretary
may exempt from section 42112(b)(1) and (2) an air carrier not
providing scheduled air transportation, and the operations con-
ducted during daylight hours by an air carrier providing scheduled
air transportation, when the Secretary decides that—
(1) because of the limited extent of, or unusual cir-
cumstances affecting, the operation of the air carrier, the
enforcement of section 42112(b)(1) and (2) of this title is or
would be an unreasonable burden on the air carrier that would
obstruct its development and prevent it from beginning or
continuing operations; and
(2) the exemption would not affect adversely the public
interest.
(e) MAXIMUM FLYING HOURS.—The Secretary may not exempt
an air carrier under this section from a provision referred to in
subsection (c) of this section, or a regulation or term prescribed
under any of those provisions, that sets maximum flying hours
for pilots or copilots.
(f) SMALLER AIRCRAFT.—(1) An air carrier is exempt from sec-
tion 41101(a)(1) of this title, and the Secretary may exempt an
air carrier from another provision of subpart II of this part, if
the air carrier—
(A)(i) provides passenger transportation only with aircraft
having a maximum capacity of 55 passengers; or
(ii) provides the transportation of cargo only with aircraft
having a maximum payload of less than 18,000 pounds; and
(B) complies with liability insurance requirements and
other regulations the Secretary prescribes.
(2) The Secretary may increase the passenger or payload capac-
ities when the public interest requires.
(3)(A) An exemption under this subsection applies to an air
carrier providing air transportation between 2 places in Alaska,
or between Alaska and Canada, only if the carrier is authorized
by Alaska to provide the transportation.
(B) The Secretary may limit the number or location of places
that may be served by an air carrier providing transportation
only in Alaska under an exemption from section 41101(a)(1) of
this title, or the frequency with which the transportation may
H. R. 1758—362
be provided, only when the Secretary decides that providing the
transportation substantially impairs the ability of an air carrier
holding a certificate issued by the Secretary to provide its author-
ized transportation, including the minimum transportation require-
ment for Alaska specified under section 41732(b)(1)(B) of this title.
(g) EMERGENCY AIR TRANSPORTATION
BY FOREIGN AIR CAR-
RIERS.—(1) To the extent that the Secretary decides an exemption
is in the public interest, the Secretary may exempt by order a
foreign air carrier from the requirements and limitations of this
part for not more than 30 days to allow the foreign air carrier
to carry passengers or cargo in interstate air transportation in
certain markets if the Secretary finds that—
(A) because of an emergency created by unusual cir-
cumstances not arising in the normal course of business, air
carriers holding certificates under section 41102 of this title
cannot accommodate traffic in those markets;
(B) all possible efforts have been made to accommodate
the traffic by using the resources of the air carriers, including
the use of—
(i) foreign aircraft, or sections of foreign aircraft, under
lease or charter to the air carriers; and
(ii) the air carriers’ reservations systems to the extent
practicable;
(C) the exemption is necessary to avoid unreasonable hard-
ship for the traffic in the markets that cannot be accommodated
by the air carriers; and
(D) granting the exemption will not result in an unreason-
able advantage to any party in a labor dispute where the
inability to accommodate traffic in a market is a result of
the dispute.
(2) When the Secretary grants an exemption to a foreign air
carrier under this subsection, the Secretary shall—
(A) ensure that air transportation that the foreign air car-
rier provides under the exemption is made available on reason-
able terms;
(B) monitor continuously the passenger load factor of air
carriers in the market that hold certificates under section 41102
of this title; and
(C) review the exemption at least every 30 days to ensure
that the unusual circumstances that established the need for
the exemption still exist.
(3) The Secretary may renew an exemption (including renewals)
under this subsection for not more than 30 days. An exemption
may continue for not more than 5 days after the unusual cir-
cumstances that established the need for the exemption cease.
(h) NOTICE AND OPPORTUNITY FOR HEARING.—The Secretary
may act under subsections (d) and (f)(3)(B) of this section only
after giving the air carrier notice and an opportunity for a hearing.
§ 40110. General procurement authority
(a) GENERAL.—In carrying out this part, the Administrator
of the Federal Aviation Administration may—
(1) acquire, to the extent that amounts are available for
obligation, services or an interest in property, including an
interest in airspace immediately adjacent to and needed for
airports and other air navigation facilities owned by the United
States Government and operated by the Administrator;
H. R. 1758—363
(2) dispose of an interest in property for adequate com-
pensation; and
(3) construct and improve laboratories and other test facili-
ties.
(b) DUTIES AND POWERS.—When carrying out subsection (a)
of this section, the Administrator of the Federal Aviation Adminis-
tration—
(1) is the senior procurement executive referred to in sec-
tion 16(3) of the Office of Federal Procurement Policy Act
(41 U.S.C. 414(3)) for approving the justification for using proce-
dures other than competitive procedures, as required under
section 303(f)(1)(B)(iii) of the Federal Property and Administra-
tive Services Act of 1949 (41 U.S.C. 253(f)(1)(B)(iii)); and
(2) may—
(A) lease an interest in property for not more than
20 years;
(B) consider the reasonable probable future use of the
underlying land in making an award for a condemnation
of an interest in airspace;
(C) construct, or acquire an interest in, a public build-
ing (as defined in section 13 of the Public Buildings Act
of 1959 (40 U.S.C. 612)) only under a delegation of author-
ity from the Administrator of General Services;
(D) use procedures other than competitive procedures,
as provided under section 303(c) of the Federal Property
and Administrative Services Act of 1949 (41 U.S.C. 253(c));
(E) use procedures other than competitive procedures
only when the property or services needed by the Adminis-
trator of the Federal Aviation Administration are available
from only one responsible source or only from a limited
number of responsible sources and no other type of property
or services will satisfy the needs of the Administrator;
and
(F) dispose of property under subsection (a)(2) of this
section, except for airport and airway property and tech-
nical equipment used for the special purposes of the
Administration, only under title II of the Federal Property
and Administrative Services Act of 1949 (40 U.S.C. 481
et seq.).
§ 40111. Multiyear procurement contracts for services and
related items
(a) 
GENERAL
AUTHORITY.—Notwithstanding 
section
1341(a)(1)(B) of title 31, the Administrator of the Federal Aviation
Administration may make a contract of not more than 5 years
for the following types of services and items of supply related
to those services for which amounts otherwise would be available
for obligation only in the fiscal year for which appropriated:
(1) operation, maintenance, and support of facilities and
installations.
(2) operation, maintenance, and modification of aircraft,
vehicles, and other highly complex equipment.
(3) specialized training requiring high quality instructor
skills, including training of pilots and aircrew members and
foreign language training.
(4) base services, including ground maintenance, aircraft
refueling, bus transportation, and refuse collection and disposal.
H. R. 1758—364
(b) REQUIRED FINDINGS.—The Administrator may make a con-
tract under this section only if the Administrator finds that—
(1) there will be a continuing requirement for the service
consistent with current plans for the proposed contract period;
(2) providing the service will require a substantial initial
investment in plant or equipment, or will incur a substantial
contingent liability for assembling, training, or transporting
a specialized workforce; and
(3) the contract will promote the best interests of the United
States by encouraging effective competition and promoting
economies in operation.
(c) CONSIDERATIONS.—When making a contract under this sec-
tion, the Administrator shall be guided by the following:
(1) The part of the cost of a plant or equipment amortized
as a cost of contract performance may not be more than the
ratio between the period of contract performance and the antici-
pated useful commercial life (instead of physical life) of the
plant or equipment, considering the location and specialized
nature of the plant or equipment, obsolescence, and other simi-
lar factors.
(2) The Administrator shall consider the desirability of—
(A) obtaining an option to renew the contract for a
reasonable period of not more than 3 years, at a price
that does not include charges for nonrecurring costs already
amortized; and
(B) reserving in the Administrator the right, on pay-
ment of the unamortized part of the cost of the plant
or equipment, to take title to the plant or equipment under
appropriate circumstances.
(d) ENDING CONTRACTS.—A contract made under this section
shall be ended if amounts are not made available to continue
the contract into a subsequent fiscal year. The cost of ending
the contract may be paid from—
(1) an appropriation originally available for carrying out
the contract;
(2) an appropriation currently available for procuring the
type of service concerned and not otherwise obligated; or
(3) amounts appropriated for payments to end the contract.
§ 40112. Multiyear procurement contracts for property
(a) 
GENERAL
AUTHORITY.—Notwithstanding 
section
1341(a)(1)(B) of title 31 and to the extent that amounts otherwise
are available for obligation, the Administrator of the Federal Avia-
tion Administration may make a contract of more than one but
not more than 5 fiscal years to purchase property, except a contract
to construct, alter, or make a major repair or improvement to
real property or a contract to purchase property to which section
111 of the Federal Property and Administrative Services Act of
1949 (40 U.S.C. 759) applies.
(b) REQUIRED FINDINGS.—The Administrator may make a con-
tract under this section if the Administrator finds that—
(1) the contract will promote the safety or efficiency of
the national airspace system and will result in reduced total
contract costs;
(2) the minimum need for the property to be purchased
is expected to remain substantially unchanged during the pro-