((a)) ** .—** Subject to the provisions of chapter 137  of this title, and to the extent that funds are otherwise available for obligation, the Secretary—

((1)) may contract with any citizen of the United States for the inclusion or incorporation of defense features in any new or existing aircraft to be owned or controlled by that citizen; and

((2)) may contract with United States aircraft manufacturers for the inclusion or incorporation of defense features in new aircraft to be operated by a United States air carrier.

((b)) ** .—** Each contract entered into under this section shall provide—

((1)) that any aircraft covered by the contract shall be committed to the Civil Reserve Air Fleet;

((2)) that, so long as the aircraft is owned or controlled by a contractor, the contractor shall operate the aircraft for the Department of Defense as needed during any activation of the Civil Reserve Air Fleet, notwithstanding any other contract or commitment of that contractor; and

((3)) that the contractor operating the aircraft for the Department of Defense shall be paid for that operation at fair and reasonable rates.

((c)) ** .—** Each contract entered into under subsection (a) shall include a provision that requires the contractor to repay to the United States a percentage (to be established in the contract) of any amount paid by the United States to the contractor under the contract with respect to any aircraft if—

((1)) the aircraft is destroyed or becomes unusable, as defined in the contract;

((2)) the defense features specified in the contract are rendered unusable or are removed from the aircraft;

((3)) control over the aircraft is transferred to any person that is unable or unwilling to assume the contractor’s obligations under the contract; or

((4)) the registration of the aircraft under is terminated for any reason not beyond the control of the contractor.

((d)) ** .—**

((1)) A contract under subsection (a) for the inclusion or incorporation of defense features in an aircraft may include a provision authorizing the Secretary—

((A)) to contract, with the concurrence of the contractor, directly with another person for the performance of the work necessary for the inclusion or incorporation of defense features in such aircraft; and

((B)) to pay such other person directly for such work.

((2)) A contract entered into pursuant to paragraph (1) may include such specifications for work and equipment as the Secretary considers necessary to meet the needs of the United States.

((e)) ** .—** Notwithstanding section 101 of the Defense Production Act of 1950 (), each aircraft covered by a contract entered into under this section shall be committed exclusively to the Civil Reserve Air Fleet for use by the Department of Defense as needed during any activation of the Civil Reserve Air Fleet unless the aircraft is released from that use by the Secretary.