US (United States) Code. Title 10. Subtitle A: General Military Law. Chapter 138: Cooperative agreements

Codificación normativa de EEUU (Estados Unidos) Legislación Federal estadounidense # Armed Forces NATO (North Atlantic Treaty Organization) allies and other countries

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10 USC CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO

ALLIES AND OTHER COUNTRIES 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER

COUNTRIES

.

-HEAD-

CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER

COUNTRIES

-MISC1-

Subchapter Sec.

I. Acquisition and Cross-Servicing Agreements 2341

II. Other Cooperative Agreements 2350a

AMENDMENTS

1990 - Pub. L. 101-510, div. A, title XIV, Sec. 1484(i)(7), Nov.

5, 1990, 104 Stat. 1718, inserted ''Sec.'' above ''2341''.

1989 - Pub. L. 101-189, div. A, title IX, Sec. 931(a)(1), Nov.

29, 1989, 103 Stat. 1531, substituted ''COOPERATIVE AGREEMENTS WITH

NATO ALLIES AND OTHER COUNTRIES'' for ''ACQUISITION AND

CROSS-SERVICING AGREEMENTS WITH NATO ALLIES AND OTHER COUNTRIES''

in chapter heading, and added subchapter analysis, consisting of

subchapters I and II.

1987 - Pub. L. 100-26, Sec. 7(a)(8), Apr. 21, 1987, 101 Stat.

278, substituted ''ACQUISITION AND CROSS-SERVICING AGREEMENTS WITH

NATO ALLIES AND OTHER COUNTRIES'' for ''NORTH ATLANTIC TREATY

ORGANIZATION ACQUISITION AND CROSS-SERVICING AGREEMENTS'' in

chapter heading.

PRIOR PROVISIONS

Chapter 138 was originally comprised of sections 2321 to 2331.

Sections 2321 to 2328, 2330, and 2331, were renumbered sections

2341 to 2348, 2349, and 2350, respectively, of this title, by Pub.

L. 99-145, title XIII, Sec. 1304(a)(1), (3), Nov. 8, 1985, 99 Stat.

741.

Section 2329, added Pub. L. 96-323, Sec. 2(a), Aug. 4, 1980, 94

Stat. 1018, required the Secretary of Defense to prescribe

regulations to implement this chapter, prior to repeal by Pub. L.

99-145, title XIII, Sec. 1304(a)(2), Nov. 8, 1985, 99 Stat. 741.

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10 USC SUBCHAPTER I - ACQUISITION AND CROSS-SERVICING

AGREEMENTS 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER

COUNTRIES

SUBCHAPTER I - ACQUISITION AND CROSS-SERVICING AGREEMENTS

.

-HEAD-

SUBCHAPTER I - ACQUISITION AND CROSS-SERVICING AGREEMENTS

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Sec.

2341. Authority to acquire logistic support, supplies, and services

for elements of the armed forces deployed outside the United

States.

2342. Cross-servicing agreements.

2343. Waiver of applicability of certain laws.

2344. Methods of payment for acquisitions and transfers by the

United States.

2345. Liquidation of accrued credits and liabilities.

2346. Crediting of receipts.

2347. Limitation on amounts that may be obligated or accrued by the

United States.

2348. Inventories of supplies not to be increased.

2349. Overseas Workload Program.

2349a. Annual report on non-NATO agreements.

2350. Definitions.

AMENDMENTS

1994 - Pub. L. 103-337, div. A, title XIII, Sec. 1317(c)(2)(B),

(i)(2), Oct. 5, 1994, 108 Stat. 2900, 2902, substituted ''Waiver of

applicability of certain laws'' for ''Law applicable to acquisition

and cross-servicing agreements'' in item 2343 and added item 2349a.

1993 - Pub. L. 103-160, div. A, title XIV, Sec. 1431(a)(2), Nov.

30, 1993, 107 Stat. 1833, added item 2349.

1990 - Pub. L. 101-510, div. A, title XIII, Sec. 1331(3), Nov.

5, 1990, 104 Stat. 1673, struck out item 2349 ''Annual reports''.

1989 - Pub. L. 101-189, div. A, title IX, Sec. 931(a)(1), Nov.

29, 1989, 103 Stat. 1531, added subchapter heading.

1986 - Pub. L. 99-661, div. A, title XI, Sec. 1104(g), Nov. 14,

1986, 100 Stat. 3965, substituted ''elements of the armed forces

deployed outside the United States'' for ''United States armed

forces in Europe'' in item 2341.

1985 - Pub. L. 99-145, title XIII, Sec. 1304(a)(6), Nov. 8, 1985,

99 Stat. 742, renumbered items 2321 to 2328 as 2341 to 2348,

respectively, and items 2330 and 2331 as 2349 and 2350,

respectively, and struck out item 2329 ''Regulations''.

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SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in section 2350d of this title.

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10 USC Sec. 2341 01/06/03

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TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER

COUNTRIES

SUBCHAPTER I - ACQUISITION AND CROSS-SERVICING AGREEMENTS

-HEAD-

Sec. 2341. Authority to acquire logistic support, supplies, and

services for elements of the armed forces deployed outside the

United States

-STATUTE-

Subject to section 2343 of this title and subject to the

availability of appropriations, the Secretary of Defense may -

(1) acquire from the Governments of North Atlantic Treaty

Organization countries, from North Atlantic Treaty Organization

subsidiary bodies, and from the United Nations Organization or

any regional international organization of which the United

States is a member logistic support, supplies, and services for

elements of the armed forces deployed outside the United States;

and

(2) acquire from any government not a member of the North

Atlantic Treaty Organization logistic support, supplies, and

services for elements of the armed forces deployed (or to be

deployed) outside the United States if that country -

(A) has a defense alliance with the United States;

(B) permits the stationing of members of the armed forces in

such country or the homeporting of naval vessels of the United

States in such country;

(C) has agreed to preposition materiel of the United States

in such country; or

(D) serves as the host country to military exercises which

include elements of the armed forces or permits other military

operations by the armed forces in such country.

-SOURCE-

(Added Pub. L. 96-323, Sec. 2(a), Aug. 4, 1980, 94 Stat. 1016, Sec.

2321; renumbered Sec. 2341 and amended Pub. L. 99-145, title XIII,

Sec. 1304(a)(1), (4), Nov. 8, 1985, 99 Stat. 741; Pub. L. 99-661,

div. A, title XI, Sec. 1104(a), Nov. 14, 1986, 100 Stat. 3963;

Pub. L. 102-484, div. A, title XIII, Sec. 1312(a), Oct. 23, 1992,

106 Stat. 2547; Pub. L. 103-337, div. A, title XIII, Sec. 1317(a),

Oct. 5, 1994, 108 Stat. 2899.)

-MISC1-

AMENDMENTS

1994 - Par. (1). Pub. L. 103-337 substituted a comma for ''and''

after ''countries'' and inserted '', and from the United Nations

Organization or any regional international organization of which

the United States is a member'' after ''subsidiary bodies''.

1992 - Par. (1). Pub. L. 102-484, Sec. 1312(a)(1), substituted

''outside the United States'' for ''in Europe and adjacent

waters''.

Par. (2). Pub. L. 102-484, Sec. 1312(a)(2), in introductory

provisions, struck out ''in which elements of the armed forces are

deployed (or are to be deployed)'' after ''North Atlantic Treaty

Organization'' and substituted ''outside the United States'' for

''in such country or in the military region in which such country

is located''.

1986 - Pub. L. 99-661 substituted ''elements of the armed forces

deployed outside the United States'' for ''United States armed

forces in Europe'' in section catchline.

Pub. L. 99-661 amended section generally, restating existing

provisions into introductory text and par. (1) and adding par. (2).

1985 - Pub. L. 99-145 renumbered section 2321 of this title as

this section and substituted ''section 2343'' for ''section 2323''.

EFFECTIVE DATE OF 1994 AMENDMENT

Section 1317(j) of Pub. L. 103-337 provided that: ''The

amendments made by this section (enacting section 2349a of this

title and amending this section and sections 2342 to 2347 and 2350

of this title) shall apply with regard to any acquisition or

transfer of logistic support, supplies, and services under the

authority of subchapter I of chapter 138 of title 10, United States

Code, that is initiated after the date of the enactment of this Act

(Oct. 5, 1994).''

EFFECTIVE DATE OF 1992 AMENDMENT

Section 1312(c) of Pub. L. 102-484 provided that: ''The

amendments made by this section (amending this section and section

2347 of this title) shall take effect on the date of enactment of

this Act (Oct. 23, 1992) and shall apply to acquisitions of

logistics support, supplies, and services under chapter 138 of

title 10, United States Code, that are initiated on or after the

date of enactment of this Act.''

SHORT TITLE

Section 1 of Pub. L. 96-323 provided: ''That this Act (enacting

this chapter) may be cited as the 'North Atlantic Treaty

Organization Mutual Support Act of 1979'.''

ACCEPTANCE OF REAL PROPERTY, SERVICES, AND COMMODITIES FROM FOREIGN

COUNTRIES BY AGENCIES OF DEPARTMENT OF DEFENSE

Pub. L. 101-165, title IX, Sec. 9008, Nov. 21, 1989, 103 Stat.

1130, which authorized agencies of Department of Defense to accept

use of real property from foreign countries for United States in

accordance with mutual defense agreements or occupational

arrangements and to accept services furnished by foreign countries

as reciprocal international courtesies or as services customarily

made available without charge and to use same for support of United

States forces in such areas without specific appropriation

therefor, was repealed and restated in section 2350g of this title

by Pub. L. 101-510, div. A, title XIV, Sec. 1451(b)(1), (c), Nov.

5, 1990, 104 Stat. 1692, 1693.

OVERSEAS WORKLOAD PROGRAM

Pub. L. 101-510, div. A, title XIV, Sec. 1465, Nov. 5, 1990, 104

Stat. 1700, as amended by Pub. L. 102-190, div. A, title X, Sec.

1085, Dec. 5, 1991, 105 Stat. 1483; Pub. L. 102-484, div. A, title

XIII, Sec. 1353, Oct. 23, 1992, 106 Stat. 2559, which related to

eligibility of a firm of any member nation of North Atlantic Treaty

Organization (NATO) or of any major non-NATO ally to bid on any

contract for maintenance, repair, or overhaul of equipment of the

Department of Defense to be awarded under competitive procedures as

part of the Overseas Workload Program, was repealed and restated in

section 2349 of this title by Pub. L. 103-160, div. A, title XIV,

Sec. 1431(a)(1), (b)(1), Nov. 30, 1993, 107 Stat. 1832, 1833.

Similar provisions were contained in the following authorization or

appropriation acts:

Pub. L. 102-396, title IX, Sec. 9130, Oct. 6, 1992, 106 Stat.

1935, as amended by Pub. L. 103-160, div. A, title XIV, Sec.

1431(b)(2), Nov. 30, 1993, 107 Stat. 1833.

Pub. L. 102-172, title VIII, Sec. 8122, Nov. 26, 1991, 105 Stat.

1205.

Pub. L. 101-511, title VIII, Sec. 8003, Nov. 5, 1990, 104 Stat.

1873.

Pub. L. 100-180, div. A, title X, Sec. 1021, Dec. 4, 1987, 101

Stat. 1143.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2343 of this title.

-CITE-

10 USC Sec. 2342 01/06/03

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TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER

COUNTRIES

SUBCHAPTER I - ACQUISITION AND CROSS-SERVICING AGREEMENTS

-HEAD-

Sec. 2342. Cross-servicing agreements

-STATUTE-

(a)(1) Subject to section 2343 of this title and to the

availability of appropriations, and after consultation with the

Secretary of State, the Secretary of Defense may enter into an

agreement described in paragraph (2) with any of the following:

(A) The government of a North Atlantic Treaty Organization

country.

(B) A subsidiary body of the North Atlantic Treaty

Organization.

(C) The United Nations Organization or any regional

international organization of which the United States is a

member.

(D) The government of a country not a member of the North

Atlantic Treaty Organization but which is designated by the

Secretary of Defense, subject to the limitations prescribed in

subsection (b), as a government with which the Secretary may

enter into agreements under this section.

(2) An agreement referred to in paragraph (1) is an agreement

under which the United States agrees to provide logistic support,

supplies, and services to military forces of a country or

organization referred to in paragraph (1) in return for the

reciprocal provisions of logistic support, supplies, and services

by such government or organization to elements of the armed forces.

(b) The Secretary of Defense may not designate a country for an

agreement under this section unless -

(1) the Secretary, after consultation with the Secretary of

State, determines that the designation of such country for such

purpose is in the interest of the national security of the United

States; and

(2) in the case of a country which is not a member of the North

Atlantic Treaty Organization, the Secretary submits to the

Committee on Armed Services and the Committee on Foreign

Relations of the Senate and the Committee on Armed Services and

the Committee on International Relations of the House of

Representatives notice of the intended designation at least 30

days before the date on which such country is designated by the

Secretary under subsection (a).

(c) The Secretary of Defense may not use the authority of this

subchapter to procure from any foreign government or international

organization any goods or services reasonably available from United

States commercial sources.

(d) The Secretary shall prescribe regulations to ensure that

contracts entered into under this subchapter are free from

self-dealing, bribery, and conflict of interests.

-SOURCE-

(Added Pub. L. 96-323, Sec. 2(a), Aug. 4, 1980, 94 Stat. 1016, Sec.

2322; renumbered Sec. 2342 and amended Pub. L. 99-145, title XIII,

Sec. 1304(a)(1), (4), Nov. 8, 1985, 99 Stat. 741; Pub. L. 99-661,

div. A, title XI, Sec. 1104(a), Nov. 14, 1986, 100 Stat. 3963;

Pub. L. 100-180, div. A, title XII, Sec. 1231(9), Dec. 4, 1987,

101 Stat. 1160; Pub. L. 101-189, div. A, title IX, Sec. 931(e)(1),

Nov. 29, 1989, 103 Stat. 1535; Pub. L. 101-510, div. A, title XIV,

Sec. 1451(a), Nov. 5, 1990, 104 Stat. 1692; Pub. L. 103-337, div.

A, title XIII, Sec. 1317(b), Oct. 5, 1994, 108 Stat. 2900; Pub. L.

104-106, div. A, title XV, Sec. 1502(a)(16), Feb. 10, 1996, 110

Stat. 504; Pub. L. 106-65, div. A, title X, Sec. 1067(1), Oct. 5,

1999, 113 Stat. 774.)

-MISC1-

AMENDMENTS

1999 - Subsec. (b)(2). Pub. L. 106-65 substituted ''and the

Committee on Armed Services'' for ''and the Committee on National

Security''.

1996 - Subsec. (b). Pub. L. 104-106 inserted ''unless'' after

''section'' in introductory provisions, struck out ''unless'' after

''(1)'' in par. (1), and substituted ''the Secretary submits to the

Committee on Armed Services and the Committee on Foreign Relations

of the Senate and the Committee on National Security and the

Committee on International Relations of the House of

Representatives notice of the intended designation'' for ''notifies

the Committees on Armed Services and Foreign Relations of the

Senate and the Committees on Armed Services and Foreign Affairs of

the House of Representatives'' in par. (2).

1994 - Subsec. (a)(1). Pub. L. 103-337, Sec. 1317(b)(1),

substituted ''with any of the following:'' for ''with - '' in

introductory provisions, substituted ''The government'' for ''the

government'' and a period for the semicolon in subpar. (A),

substituted ''A subsidiary'' for ''a subsidiary'' and

''Organization.'' for ''Organization; or'' in subpar. (B), added

subpar. (C), redesignated former subpar. (C) as (D) and substituted

''The government'' for ''the government''.

Subsec. (a)(2). Pub. L. 103-337, Sec. 1317(b)(2), substituted

''organization'' for ''subsidiary body'' in two places.

Subsec. (c). Pub. L. 103-337, Sec. 1317(b)(3), substituted ''or

international organization'' for ''as a routine or normal source''.

1990 - Subsec. (a). Pub. L. 101-510 amended subsec. (a)

generally, revising and restating former pars. (1) to (3) relating

to reciprocal logistical support agreements as pars. (1) and (2).

1989 - Subsecs. (c), (d). Pub. L. 101-189 substituted ''this

subchapter'' for ''this chapter''.

1987 - Pub. L. 100-180 substituted ''Cross-servicing'' for

''Cross servicing'' in section catchline.

1986 - Pub. L. 99-661 amended section generally, restating

existing provisions in introductory text and par. (1) of subsec.

(a), adding pars. (2) and (3) of subsec. (a), and adding subsecs.

(b) to (d).

1985 - Pub. L. 99-145 renumbered section 2322 of this title as

this section and substituted ''section 2343'' for ''section 2323''.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-337 applicable with regard to any

acquisition or transfer of logistic support, supplies, and services

under authority of this subchapter that is initiated after Oct. 5,

1994, see section 1317(j) of Pub. L. 103-337, set out as a note

under section 2341 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2343 of this title.

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10 USC Sec. 2343 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER

COUNTRIES

SUBCHAPTER I - ACQUISITION AND CROSS-SERVICING AGREEMENTS

-HEAD-

Sec. 2343. Waiver of applicability of certain laws

-STATUTE-

Sections 2207, 2304(a), 2306(a), 2306(b), 2306(e), 2306a, and

2313 of this title and section 3741 of the Revised Statutes (41

U.S.C. 22) shall not apply to acquisitions made under the authority

of section 2341 of this title or to agreements entered into under

section 2342 of this title.

-SOURCE-

(Added Pub. L. 96-323, Sec. 2(a), Aug. 4, 1980, 94 Stat. 1017, Sec.

2323; renumbered Sec. 2343 and amended Pub. L. 99-145, title IX,

Sec. 961(b), title XIII, Sec. 1304(a)(1), (5), Nov. 8, 1985, 99

Stat. 703, 741; Pub. L. 100-26, Sec. 7(g)(2), Apr. 21, 1987, 101

Stat. 282; Pub. L. 100-456, div. A, title XII, Sec. 1233(d), Sept.

29, 1988, 102 Stat. 2057; Pub. L. 101-189, div. A, title IX, Sec.

931(e)(1), Nov. 29, 1989, 103 Stat. 1535; Pub. L. 102-190, div. A,

title X, Sec. 1061(a)(12), Dec. 5, 1991, 105 Stat. 1473; Pub. L.

103-337, div. A, title XIII, Sec. 1317(c)(1), (2)(A), Oct. 5,

1994, 108 Stat. 2900.)

-MISC1-

AMENDMENTS

1994 - Pub. L. 103-337, Sec. 1317(c)(2)(A), substituted ''Waiver

of applicability of certain laws'' for ''Law applicable to

acquisition and cross-servicing agreements'' as section catchline.

Pub. L. 103-337, Sec. 1317(c)(1), designated subsec. (b) as

entire section and struck out former subsec. (a) which read as

follows: ''Except as provided in subsection (b), acquisition of

logistic support, supplies, and services under section 2341 of this

title and agreements entered into under section 2342 of this title

shall be made in accordance with chapter 137 of this title and the

provisions of this subchapter.''

1991 - Subsec. (b). Pub. L. 102-190 substituted ''this title

and'' for ''this title,'' and struck out '', and section 719 of the

Defense Production Act of 1950 (50 U.S.C. App. 2168)'' before

''shall not apply''.

1989 - Subsec. (a). Pub. L. 101-189 substituted ''this

subchapter'' for ''this chapter''.

1988 - Subsec. (b). Pub. L. 100-456 struck out ''section'' before

''2306a''.

1987 - Subsec. (b). Pub. L. 100-26 substituted ''section 2306a,''

for ''2306(f),''.

1985 - Pub. L. 99-145, Sec. 1304(a)(1), renumbered section 2323

of this title as this section.

Subsec. (a). Pub. L. 99-145, Sec. 1304(a)(5), substituted

''section 2341'' for ''section 2321'' and ''section 2342'' for

''section 2322''.

Subsec. (b). Pub. L. 99-145, Sec. 1304(a)(5), substituted

''section 2341'' for ''section 2321'' and ''section 2342'' for

''section 2322''.

Pub. L. 99-145, Sec. 961(b), substituted ''section 2304(a)'' for

''section 2304(g)''.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-337 applicable with regard to any

acquisition or transfer of logistic support, supplies, and services

under authority of this subchapter that is initiated after Oct. 5,

1994, see section 1317(j) of Pub. L. 103-337, set out as a note

under section 2341 of this title.

EFFECTIVE DATE OF 1985 AMENDMENT

Amendment by section 961(b) of Pub. L. 99-145 effective as if

included in enactment of Competition in Contracting Act of 1984,

Pub. L. 98-369, div. B, title VII, making amendment applicable

with respect to any solicitation for bids or proposals issued after

Mar. 31, 1985, see section 961(e) of Pub. L. 99-145, set out as a

note under section 2304 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2341, 2342 of this title.

-CITE-

10 USC Sec. 2344 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER

COUNTRIES

SUBCHAPTER I - ACQUISITION AND CROSS-SERVICING AGREEMENTS

-HEAD-

Sec. 2344. Methods of payment for acquisitions and transfers by the

United States

-STATUTE-

(a) Logistics support, supplies, and services may be acquired or

transferred by the United States under the authority of this

subchapter on a reimbursement basis or by replacement-in-kind or

exchange of supplies or services of an equal value.

(b)(1) In entering into agreements with the Government of another

North Atlantic Treaty Organization country or other foreign country

for the acquisition or transfer of logistic support, supplies, and

services on a reimbursement basis, the Secretary of Defense shall

negotiate for adoption of the following pricing principles for

reciprocal application:

(A) The price charged by a supplying country for logistics

support, supplies, and services specifically procured by the

supplying country from its contractors for a recipient country

shall be no less favorable than the price for identical items or

services charged by such contractors to the armed forces of the

supplying country, taking into account price differentials due to

delivery schedules, points of delivery, and other similar

considerations.

(B) The price charged a recipient country for supplies

furnished by a supplying country from its inventory, and the

price charged a recipient country for logistics support and

services furnished by the officers, employees, or governmental

agencies of a supplying country, shall be the same as the price

charged for identical supplies, support, or services acquired by

an armed force of the supplying country from such governmental

sources.

(2) To the extent that the Secretary of Defense is unable to

obtain mutual acceptance by the other country involved of the

reciprocal pricing principles for reimbursable transactions set

forth in paragraph (1) -

(A) the United States may not acquire from such country any

logistic support, supply, or service not governed by such

reciprocal pricing principles unless the United States forces

commander acquiring such support, supply, or service determines

(after price analysis) that the price thereof is fair and

reasonable; and

(B) transfers by the United States to such country under this

subchapter of any logistic support, supply, or service that is

not governed by such reciprocal pricing principles shall be

subject to the pricing provisions of the Arms Export Control Act

(22 U.S.C. 2751 et seq.).

(3) To the extent that indirect costs (including charges for

plant and production equipment), administrative surcharges, and

contract administration costs with respect to any North Atlantic

Treaty Organization country or other foreign country are not waived

by operation of the reciprocal pricing principles of paragraph (1),

the Secretary of Defense may, on a reciprocal basis, agree to waive

such costs.

(4) The pricing principles set forth in paragraph (2) and the

waiver authority provided in paragraph (3) shall also apply to

agreements with North Atlantic Treaty Organization subsidiary

bodies and the United Nations Organization or any regional

international organization of which the United States is a member

under this subchapter.

(c) In acquiring or transferring logistics support, supplies, or

services under the authority of this subchapter by exchange of

supplies or services, the Secretary of Defense may not agree to or

carry out the following:

(1) Transfers in exchange for property the acquisition of which

by the Department of Defense is prohibited by law.

(2) Transfers of source, byproduct, or special nuclear

materials or any other material, article, data, or thing of value

the transfer of which is subject to the Atomic Energy Act of 1954

(42 U.S.C. 2011 et seq.).

(3) Transfers of chemical munitions.

-SOURCE-

(Added Pub. L. 96-323, Sec. 2(a), Aug. 4, 1980, 94 Stat. 1017, Sec.

2324; amended Pub. L. 97-22, Sec. 11(a)(8), July 10, 1981, 95 Stat.

138; renumbered Sec. 2344, Pub. L. 99-145, title XIII, Sec.

1304(a)(1), Nov. 8, 1985, 99 Stat. 741; Pub. L. 99-661, div. A,

title XI, Sec. 1104(b), Nov. 14, 1986, 100 Stat. 3964; Pub. L.

101-189, div. A, title IX, Sec. 931(e)(1), 938(a), (b), Nov. 29,

1989, 103 Stat. 1535, 1539; Pub. L. 102-25, title VII, Sec.

701(f)(2), Apr. 6, 1991, 105 Stat. 115; Pub. L. 103-337, div. A,

title XIII, Sec. 1317(d), Oct. 5, 1994, 108 Stat. 2900.)

-REFTEXT-

REFERENCES IN TEXT

The Arms Export Control Act, referred to in subsec. (b)(2)(B), is

Pub. L. 90-629, Oct. 22, 1968, 82 Stat. 1320, as amended, which is

classified principally to chapter 39 (Sec. 2751 et seq.) of Title

22, Foreign Relations and Intercourse. For complete classification

of this Act to the Code, see Short Title note set out under section

2751 of Title 22 and Tables.

The Atomic Energy Act of 1954, referred to in subsec. (c)(2), is

act Aug. 1, 1946, ch. 724, as added by act Aug. 30, 1954, ch. 1073,

Sec. 1, 68 Stat. 921, and amended, which is classified generally to

chapter 23 (Sec. 2011 et seq.) of Title 42, The Public Health and

Welfare. For complete classification of this Act to the Code, see

Short Title note set out under section 2011 of Title 42 and Tables.

-MISC2-

AMENDMENTS

1994 - Subsec. (b)(4). Pub. L. 103-337 inserted ''and the United

Nations Organization or any regional international organization of

which the United States is a member'' after ''subsidiary bodies''.

1991 - Subsec. (c). Pub. L. 102-25 substituted ''subchapter'' for

''chapter'' in introductory provisions.

1989 - Subsec. (a). Pub. L. 101-189, Sec. 931(e)(1), 938(a),

substituted ''equal value'' for ''identical or substantially

identical nature'' and ''this subchapter'' for ''this chapter''.

Subsec. (b)(2)(B), (4). Pub. L. 101-189, Sec. 931(e)(1),

substituted ''this subchapter'' for ''this chapter''.

Subsec. (c). Pub. L. 101-189, Sec. 938(b), added subsec. (c).

1986 - Subsec. (b)(1), (3). Pub. L. 99-661 inserted ''or other

foreign country'' after ''country''.

1985 - Pub. L. 99-145 renumbered section 2324 of this title as

this section.

1981 - Subsec. (b)(2)(B). Pub. L. 97-22 substituted ''this

chapter'' for ''this Act''.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-337 applicable with regard to any

acquisition or transfer of logistic support, supplies, and services

under authority of this subchapter that is initiated after Oct. 5,

1994, see section 1317(j) of Pub. L. 103-337, set out as a note

under section 2341 of this title.

-CITE-

10 USC Sec. 2345 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER

COUNTRIES

SUBCHAPTER I - ACQUISITION AND CROSS-SERVICING AGREEMENTS

-HEAD-

Sec. 2345. Liquidation of accrued credits and liabilities

-STATUTE-

(a) Credits and liabilities of the United States accrued as a

result of acquisitions and transfers of logistic support, supplies,

and services under the authority of this subchapter shall be

liquidated not less often than once every 12 months by direct

payment to the entity supplying such support, supplies, or services

by the entity receiving such support, supplies, or services.

(b) Payment-in-kind or exchange entitlements accrued as a result

of acquisitions and transfers of logistic support, supplies, and

services under authority of this subchapter shall be satisfied

within 12 months after the date of the delivery of the logistic

support, supplies, or services.

-SOURCE-

(Added Pub. L. 96-323, Sec. 2(a), Aug. 4, 1980, 94 Stat. 1018, Sec.

2325; renumbered Sec. 2345, Pub. L. 99-145, title XIII, Sec.

1304(a)(1), Nov. 8, 1985, 99 Stat. 741; amended Pub. L. 99-661,

div. A, title XI, Sec. 1104(c), Nov. 14, 1986, 100 Stat. 3965;

Pub. L. 101-189, div. A, title IX, Sec. 931(e)(1), Nov. 29, 1989,

103 Stat. 1535; Pub. L. 103-337, div. A, title XIII, Sec. 1317(e),

Oct. 5, 1994, 108 Stat. 2900.)

-MISC1-

AMENDMENTS

1994 - Subsec. (a). Pub. L. 103-337 substituted ''12 months'' for

''three months''.

1989 - Subsecs. (a), (b). Pub. L. 101-189 substituted ''this

subchapter'' for ''this chapter''.

1986 - Pub. L. 99-661 designated existing provisions as subsec.

(a) and added subsec. (b).

1985 - Pub. L. 99-145 renumbered section 2325 of this title as

this section.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-337 applicable with regard to any

acquisition or transfer of logistic support, supplies, and services

under authority of this subchapter that is initiated after Oct. 5,

1994, see section 1317(j) of Pub. L. 103-337, set out as a note

under section 2341 of this title.

-CITE-

10 USC Sec. 2346 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER

COUNTRIES

SUBCHAPTER I - ACQUISITION AND CROSS-SERVICING AGREEMENTS

-HEAD-

Sec. 2346. Crediting of receipts

-STATUTE-

Any receipt of the United States as a result of an agreement

entered into under this subchapter shall be credited, at the option

of the Secretary of Defense, to (1) the appropriation, fund, or

account used in incurring the obligation, or (2) an appropriate

appropriation, fund, or account currently available for the

purposes for which the expenditures were made.

-SOURCE-

(Added Pub. L. 96-323, Sec. 2(a), Aug. 4, 1980, 94 Stat. 1018, Sec.

2326; renumbered Sec. 2346, Pub. L. 99-145, title XIII, Sec.

1304(a)(1), Nov. 8, 1985, 99 Stat. 741; amended Pub. L. 101-189,

div. A, title IX, Sec. 931(e)(1), Nov. 29, 1989, 103 Stat. 1535;

Pub. L. 103-337, div. A, title XIII, Sec. 1317(f), Oct. 5, 1994,

108 Stat. 2900.)

-MISC1-

AMENDMENTS

1994 - Pub. L. 103-337 substituted ''shall be credited, at the

option of the Secretary of Defense, to (1) the appropriation, fund,

or account used in incurring the obligation, or (2) an appropriate

appropriation, fund, or account currently available for the

purposes for which the expenditures were made'' for ''shall be

credited to applicable appropriations, accounts, and funds of the

Department of Defense''.

1989 - Pub. L. 101-189 substituted ''this subchapter'' for ''this

chapter''.

1985 - Pub. L. 99-145 renumbered section 2326 of this title as

this section.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-337 applicable with regard to any

acquisition or transfer of logistic support, supplies, and services

under authority of this subchapter that is initiated after Oct. 5,

1994, see section 1317(j) of Pub. L. 103-337, set out as a note

under section 2341 of this title.

-CITE-

10 USC Sec. 2347 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER

COUNTRIES

SUBCHAPTER I - ACQUISITION AND CROSS-SERVICING AGREEMENTS

-HEAD-

Sec. 2347. Limitation on amounts that may be obligated or accrued

by the United States

-STATUTE-

(a)(1) Except during a period of active hostilities involving the

armed forces, the total amount of reimbursable liabilities that the

United States may accrue under this subchapter (before the

computation of offsetting balances) with other member countries of

the North Atlantic Treaty Organization, subsidiary bodies of the

North Atlantic Treaty Organization, or from the United Nations

Organization or any regional international organization of which

the United States is a member may not exceed $200,000,000 in any

fiscal year, and of such amount not more than $50,000,000 in

liabilities may be accrued for the acquisition of supplies (other

than petroleum, oils, and lubricants).

(2) Except during a period of active hostilities involving the

armed forces, the total amount of reimbursable liabilities that the

United States may accrue under this subchapter (before the

computation of offsetting balances) with a country which is not a

member of the North Atlantic Treaty Organization, but with which

the United States has one or more acquisition or cross-servicing

agreements, may not exceed $60,000,000 in any fiscal year, and of

such amount not more than $20,000,000 in liabilities may be accrued

for the acquisition of supplies (other than petroleum, oils, and

lubricants). The $60,000,000 limitation specified in this

paragraph is in addition to the limitation specified in paragraph

(1).

(b)(1) Except during a period of active hostilities involving the

armed forces, the total amount of reimbursable credits that the

United States may accrue under this subchapter (before the

computation of offsetting balances) with other member countries of

the North Atlantic Treaty Organization, subsidiary bodies of the

North Atlantic Treaty Organization, or from the United Nations

Organization or any regional international organization of which

the United States is a member may not exceed $150,000,000 in any

fiscal year.

(2) Except during a period of active hostilities involving the

armed forces, the total amount of reimbursable credits that the

United States may accrue under this subchapter (before the

computation of offsetting balances) with a country which is not a

member of the North Atlantic Treaty Organization, but with which

the United States has one or more acquisition or cross-servicing

agreements may not exceed $75,000,000 in any fiscal year. Such

limitation specified in this paragraph is in addition to the

limitation specified in paragraph (1).

(c) When the armed forces are involved in a contingency operation

or in a non-combat operation (including an operation in support of

the provision of humanitarian or foreign disaster assistance or in

support of peacekeeping operations under chapter VI or VII of the

Charter of the United Nations), the restrictions in subsections (a)

and (b) are waived for the purposes and duration of that operation.

-SOURCE-

(Added Pub. L. 96-323, Sec. 2(a), Aug. 4, 1980, 94 Stat. 1018, Sec.

2327; renumbered Sec. 2347, Pub. L. 99-145, title XIII, Sec.

1304(a)(1), Nov. 8, 1985, 99 Stat. 741; amended Pub. L. 99-661,

div. A, title XI, Sec. 1104(d), Nov. 14, 1986, 100 Stat. 3965;

Pub. L. 100-456, div. A, title X, Sec. 1001, Sept. 29, 1988, 102

Stat. 2037; Pub. L. 101-189, div. A, title IX, Sec. 931(e)(1),

Nov. 29, 1989, 103 Stat. 1535; Pub. L. 102-484, div. A, title

XIII, Sec. 1312(b), Oct. 23, 1992, 106 Stat. 2547; Pub. L. 103-35,

title II, Sec. 202(a)(10), May 31, 1993, 107 Stat. 101; Pub. L.

103-337, div. A, title XIII, Sec. 1317(g), Oct. 5, 1994, 108 Stat.

2901.)

-MISC1-

AMENDMENTS

1994 - Subsec. (a)(1). Pub. L. 103-337, Sec. 1317(g)(1),

substituted ''Organization, subsidiary'' for ''Organization and

subsidiary'', inserted '', or from the United Nations Organization

or any regional international organization of which the United

States is a member'' after ''Treaty Organization'', and substituted

''$200,000,000'' for ''$150,000,000'' and ''$50,000,000'' for

''$25,000,000''.

Subsec. (a)(2). Pub. L. 103-337, Sec. 1317(g)(2), substituted

''$60,000,000'' for ''$10,000,000'' in two places and

''$20,000,000'' for ''$2,500,000''.

Subsec. (b)(1). Pub. L. 103-337, Sec. 1317(g)(3), substituted

''Organization, subsidiary'' for ''Organization and subsidiary'',

inserted '', or from the United Nations Organization or any

regional international organization of which the United States is a

member'' after ''Treaty Organization'', and substituted

''$150,000,000'' for ''$100,000,000''.

Subsec. (b)(2). Pub. L. 103-337, Sec. 1317(g)(4), substituted

''$75,000,000'' for ''$10,000,000''.

Subsec. (c). Pub. L. 103-337, Sec. 1317(g)(5), added subsec. (c).

1993 - Subsec. (b)(2). Pub. L. 103-35 made technical amendment to

directory language of Pub. L. 102-484, Sec. 1312(b)(4)(B). See 1992

Amendment note below.

1992 - Subsec. (a)(1). Pub. L. 102-484, Sec. 1312(b)(1),

substituted ''armed forces'' for ''North Atlantic Treaty

Organization'' and inserted ''with other member countries of the

North Atlantic Treaty Organization and subsidiary bodies of the

North Atlantic Treaty Organization'' after ''(before the

computation of offsetting balances)''.

Subsec. (a)(2). Pub. L. 102-484, Sec. 1312(b)(2), substituted

''involving the armed forces, the total amount of reimbursable

liabilities that the United States may accrue under this subchapter

(before the computation of offsetting balances) with'' for ''in the

military region affecting'' and struck out ''the total amount of

reimbursable liabilities that the United States may accrue under

this subchapter (before the computation of offsetting balances)

with such country'' after ''cross-servicing agreements,''.

Subsec. (b)(1). Pub. L. 102-484, Sec. 1312(b)(3), substituted

''armed forces'' for ''North Atlantic Treaty Organization'' and

inserted ''with other member countries of the North Atlantic Treaty

Organization and subsidiary bodies of the North Atlantic Treaty

Organization'' after ''(before the computation of offsetting

balances)''.

Subsec. (b)(2). Pub. L. 102-484, Sec. 1312(b)(4)(A), substituted

''involving the armed forces'' for ''in the military region

affecting a country referred to in paragraph (1)''.

Pub. L. 102-484, Sec. 1312(b)(4)(B), as amended by Pub. L.

103-35, substituted ''(before the computation of offsetting

balances) with a country which is not a member of the North

Atlantic Treaty Organization, but with which the United States has

one or more acquisition or cross-servicing agreements'' for ''from

such country (before computation of offsetting balances)''.

1989 - Pub. L. 101-189 substituted ''this subchapter'' for ''this

chapter'' wherever appearing.

1988 - Subsec. (a)(1). Pub. L. 100-456 substituted

''$150,000,000'' for ''$100,000,000''.

1986 - Subsec. (a). Pub. L. 99-661, Sec. 1104(d)(1), designated

existing provisions as par. (1) and added par. (2).

Subsec. (b). Pub. L. 99-661, Sec. 1104(d)(2), designated existing

provisions as par. (1) and added par. (2).

1985 - Pub. L. 99-145 renumbered section 2327 of this title as

this section.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-337 applicable with regard to any

acquisition or transfer of logistic support, supplies, and services

under authority of this subchapter that is initiated after Oct. 5,

1994, see section 1317(j) of Pub. L. 103-337, set out as a note

under section 2341 of this title.

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-35 applicable as if included in the

enactment of Pub. L. 102-484, see section 202(b) of Pub. L. 103-35,

set out as a note under section 155 of this title.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-484 effective Oct. 23, 1992, and

applicable to acquisitions of logistics support, supplies, and

services under this chapter that are initiated on or after Oct. 23,

1992, see section 1312(c) of Pub. L. 102-484, set out as a note

under section 2341 of this title.

-CITE-

10 USC Sec. 2348 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER

COUNTRIES

SUBCHAPTER I - ACQUISITION AND CROSS-SERVICING AGREEMENTS

-HEAD-

Sec. 2348. Inventories of supplies not to be increased

-STATUTE-

Inventories of supplies for elements of the armed forces may not

be increased for the purpose of transferring supplies under the

authority of this subchapter.

-SOURCE-

(Added Pub. L. 96-323, Sec. 2(a), Aug. 4, 1980, 94 Stat. 1018, Sec.

2328; amended Pub. L. 97-22, Sec. 11(a)(8), July 10, 1981, 95 Stat.

138; renumbered Sec. 2348, Pub. L. 99-145, title XIII, Sec.

1304(a)(1), Nov. 8, 1985, 99 Stat. 741; Pub. L. 99-661, div. A,

title XI, Sec. 1104(e), Nov. 14, 1986, 100 Stat. 3965; Pub. L.

101-189, div. A, title IX, Sec. 931(e)(1), Nov. 29, 1989, 103

Stat. 1535.)

-MISC1-

AMENDMENTS

1989 - Pub. L. 101-189 substituted ''this subchapter'' for ''this

chapter''.

1986 - Pub. L. 99-661 struck out ''to military forces of any

North Atlantic Treaty Organization country or any North Atlantic

Treaty Organization subsidiary body'' after ''chapter''.

1985 - Pub. L. 99-145 renumbered section 2328 of this title as

this section.

1981 - Pub. L. 97-22 substituted ''this chapter'' for ''this

Act''.

-CITE-

10 USC Sec. 2349 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER

COUNTRIES

SUBCHAPTER I - ACQUISITION AND CROSS-SERVICING AGREEMENTS

-HEAD-

Sec. 2349. Overseas Workload Program

-STATUTE-

(a) In General. - A firm of any member nation of the North

Atlantic Treaty Organization or of any major non-NATO ally shall be

eligible to bid on any contract for the maintenance, repair, or

overhaul of equipment of the Department of Defense located outside

the United States to be awarded under competitive procedures as

part of the program of the Department of Defense known as the

Overseas Workload Program.

(b) Site of Performance. - A contract awarded to a firm described

in subsection (a) may be performed in the theater in which the

equipment is normally located or in the country in which the firm

is located.

(c) Exceptions. - The Secretary of a military department may

restrict the geographic region in which a contract referred to in

subsection (a) may be performed if the Secretary determines that

performance of the contract outside that specific region -

(1) could adversely affect the military preparedness of the

armed forces; or

(2) would violate the terms of an international agreement to

which the United States is a party.

(d) Definition. - In this section, the term ''major non-NATO

ally'' has the meaning given that term in section 2350a(i)(3)

(FOOTNOTE 1) of this title.

(FOOTNOTE 1) See References in Text note below.

-SOURCE-

(Added Pub. L. 103-160, div. A, title XIV, Sec. 1431(a)(1), Nov.

30, 1993, 107 Stat. 1832.)

-REFTEXT-

REFERENCES IN TEXT

Section 2350a of this title, referred to in subsec. (d), was

subsequently amended, and section 2350a(i)(3) no longer defines the

term ''major non-NATO ally''. However, such term is defined

elsewhere in that section.

-MISC2-

PRIOR PROVISIONS

A prior section 2349, added Pub. L. 96-323, Sec. 2(a), Aug. 4,

1980, 94 Stat. 1018, Sec. 2330; renumbered Sec. 2349, Pub. L.

99-145, title XIII, Sec. 1304(a)(3), Nov. 8, 1985, 99 Stat. 741;

Pub. L. 101-189, div. A, title IX, Sec. 931(e)(1), Nov. 29, 1989,

103 Stat. 1535, directed Secretary of Defense to submit a report to

Congress annually relating to agreements under this chapter, prior

to repeal by Pub. L. 101-510, Sec. 1301(11).

Provisions similar to those in this section were contained in

Pub. L. 101-510, div. A, title XIV, Sec. 1465, Nov. 5, 1990, 104

Stat. 1700, as amended, which was set out as a note under section

2341 of this title, prior to repeal by Pub. L. 103-160, Sec.

1431(b)(1). Other prior similar provisions, formerly set out under

section 2341 of this title, were contained in the following

authorization or appropriation acts:

Pub. L. 102-396, title IX, Sec. 9130, Oct. 6, 1992, 106 Stat.

1935, as amended by Pub. L. 103-160, div. A, title XIV, Sec.

1431(b)(2), Nov. 30, 1993, 107 Stat. 1833.

Pub. L. 102-172, title VIII, Sec. 8122, Nov. 26, 1991, 105 Stat.

1205.

Pub. L. 101-511, title VIII, Sec. 8003, Nov. 5, 1990, 104 Stat.

1873.

Pub. L. 100-180, div. A, title X, Sec. 1021, Dec. 4, 1987, 101

Stat. 1143.

-CITE-

10 USC Sec. 2349a 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER

COUNTRIES

SUBCHAPTER I - ACQUISITION AND CROSS-SERVICING AGREEMENTS

-HEAD-

Sec. 2349a. Annual report on non-NATO agreements

-STATUTE-

(a) Report. - The Secretary of Defense shall submit to Congress,

not later than January 15 of each of 1996, 1997, 1998, 1999, and

2000, a report covering non-NATO cross-servicing and acquisition

actions in effect during the preceding fiscal year.

(b) Matters To Be Included. - Each such report shall set forth in

detail the following with respect to the preceding fiscal year:

(1) The total dollar amounts involved.

(2) A description of any services and equipment provided or

received through those actions.

(3) A description of any equipment provided through those

actions that is not returned.

(4) The volume of credits and liabilities accrued and

liquidated.

(c) Non-NATO Agreements. - For purposes of this section, a

non-NATO cross-servicing and acquisition agreement is a

cross-servicing and acquisition agreement under this subchapter

that involves countries or organizations other than North Atlantic

Treaty Organization countries or subsidiary bodies.

-SOURCE-

(Added Pub. L. 103-337, div. A, title XIII, Sec. 1317(i)(1), Oct.

5, 1994, 108 Stat. 2902.)

-MISC1-

EFFECTIVE DATE

Section applicable with regard to any acquisition or transfer of

logistic support, supplies, and services under authority of this

subchapter that is initiated after Oct. 5, 1994, see section

1317(j) of Pub. L. 103-337, set out as an Effective Date of 1994

Amendment note under section 2341 of this title.

-CITE-

10 USC Sec. 2350 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER

COUNTRIES

SUBCHAPTER I - ACQUISITION AND CROSS-SERVICING AGREEMENTS

-HEAD-

Sec. 2350. Definitions

-STATUTE-

In this subchapter:

(1) The term ''logistic support, supplies, and services'' means

food, billeting, transportation (including airlift), petroleum,

oils, lubricants, clothing, communications services, medical

services, ammunition, base operations support (and construction

incident to base operations support), storage services, use of

facilities, training services, spare parts and components, repair

and maintenance services, calibration services, and port

services. Such term includes temporary use of general purpose

vehicles and other nonlethal items of military equipment which

are not designated as significant military equipment on the

United States Munitions List promulgated pursuant to section

38(a)(1) of the Arms Export Control Act.

(2) The term ''North Atlantic Treaty Organization subsidiary

bodies'' means -

(A) any organization within the meaning of the term

''subsidiary bodies'' in article I of the multilateral treaty

on the Status of the North Atlantic Treaty Organisation,

National Representatives and International Staff, signed at

Ottawa on September 20, 1951 (TIAS 2992; 5 UST 1087); and

(B) any international military headquarters or organization

to which the Protocol on the Status of International Military

Headquarters Set Up Pursuant to the North Atlantic Treaty,

signed at Paris on August 28, 1952 (TIAS 2978; 5 UST 870),

applies.

(3) The term ''military region'' means the geographical area of

responsibility assigned to the commander of a unified combatant

command (excluding Europe and adjacent waters).

(4) The term ''transfer'' means selling (whether for payment in

currency, replacement-in-kind, or exchange of supplies or

services of equal value), leasing, loaning, or otherwise

temporarily providing logistic support, supplies, and services

under the terms of a cross-servicing agreement.

-SOURCE-

(Added Pub. L. 96-323, Sec. 2(a), Aug. 4, 1980, 94 Stat. 1019, Sec.

2331; renumbered Sec. 2350, Pub. L. 99-145, title XIII, Sec.

1304(a)(3), Nov. 8, 1985, 99 Stat. 741; amended Pub. L. 99-661,

div. A, title XI, Sec. 1104(f), Nov. 14, 1986, 100 Stat. 3965;

Pub. L. 100-26, Sec. 7(k)(2), Apr. 21, 1987, 101 Stat. 284; Pub. L.

101-189, div. A, title IX, Sec. 931(e)(1), Nov. 29, 1989, 103

Stat. 1535; Pub. L. 103-337, div. A, title XIII, Sec. 1317(h),

Oct. 5, 1994, 108 Stat. 2901; Pub. L. 105-85, div. A, title XII,

Sec. 1222, Nov. 18, 1997, 111 Stat. 1937.)

-REFTEXT-

REFERENCES IN TEXT

Section 38(a)(1) of the Arms Export Control Act, referred to in

par. (1), is classified to section 2778(a)(1) of Title 22, Foreign

Relations and Intercourse.

-MISC2-

AMENDMENTS

1997 - Par. (1). Pub. L. 105-85, in second sentence, substituted

''other nonlethal items of military equipment which are not

designated as significant military equipment on the United States

Munitions List promulgated'' for ''other items of military

equipment not designated as part of the United States Munitions

List''.

1994 - Par. (1). Pub. L. 103-337, Sec. 1317(h)(1), inserted

''(including airlift)'' after ''transportation'', ''calibration

services,'' after ''maintenance services,'', and ''Such term

includes temporary use of general purpose vehicles and other items

of military equipment not designated as part of the United States

Munitions List pursuant to section 38(a)(1) of the Arms Export

Control Act.'' at end.

Par. (4). Pub. L. 103-337, Sec. 1317(h)(2), added par. (4).

1989 - Pub. L. 101-189 substituted ''this subchapter'' for ''this

chapter'' in introductory provisions.

1987 - Pub. L. 100-26 inserted ''The term'' after each par.

designation and struck out uppercase letter of first word after

first quotation marks in pars. (1) and (3) and substituted

lowercase letter.

1986 - Par. (3). Pub. L. 99-661 added par. (3).

1985 - Pub. L. 99-145 renumbered section 2331 of this title as

this section.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-337 applicable with regard to any

acquisition or transfer of logistic support, supplies, and services

under authority of this subchapter that is initiated after Oct. 5,

1994, see section 1317(j) of Pub. L. 103-337, set out as a note

under section 2341 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2350a, 2350c of this

title.

-CITE-

10 USC SUBCHAPTER II - OTHER COOPERATIVE AGREEMENTS 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER

COUNTRIES

SUBCHAPTER II - OTHER COOPERATIVE AGREEMENTS

.

-HEAD-

SUBCHAPTER II - OTHER COOPERATIVE AGREEMENTS

-MISC1-

Sec.

2350a. Cooperative research and development agreements: NATO

organizations; allied and friendly foreign countries.

2350b. Cooperative projects under Arms Export Control Act:

acquisition of defense equipment.

2350c. Cooperative military airlift agreements: allied countries.

2350d. Cooperative logistic support agreements: NATO countries.

2350e. NATO Airborne Warning and Control System (AWACS) program:

authority of Secretary of Defense.

2350f. Procurement of communications support and related supplies

and services.

2350g. Authority to accept use of real property, services, and

supplies from foreign countries in connection with mutual defense

agreements and occupational arrangements.

2350h. Memorandums of agreement: Department of Defense ombudsman

for foreign signatories.

2350i. Foreign contributions for cooperative projects.

2350j. Burden sharing contributions by designated countries and

regional organizations.

2350k. Relocation within host nation of elements of armed forces

overseas.

2350l. Cooperative agreements for reciprocal use of test

facilities: foreign countries and international organizations.

AMENDMENTS

2001 - Pub. L. 107-107, div. A, title XII, Sec. 1212(e)(2),

1213(b), Dec. 28, 2001, 115 Stat. 1250, 1251, substituted

''Cooperative research and development agreements: NATO

organizations; allied and friendly foreign countries'' for

''Cooperative research and development projects: allied countries''

in item 2350a and added item 2350l.

1996 - Pub. L. 104-106, div. A, title XIII, Sec. 1332(a)(2),

Feb. 10, 1996, 110 Stat. 484, added item 2350k.

1993 - Pub. L. 103-160, div. A, title XIV, Sec. 1402(b), Nov.

30, 1993, 107 Stat. 1826, added item 2350j.

1991 - Pub. L. 102-190, div. A, title X, Sec. 1047(b), Dec. 5,

1991, 105 Stat. 1468, added item 2350i.

Pub. L. 102-25, title VII, Sec. 704(a)(9), Apr. 6, 1991, 105

Stat. 119, made clarifying amendment to directory language of Pub.

L. 101-510, div. A, title XIV, Sec. 1451(b)(2), Nov. 5, 1990, 104

Stat. 1693. See 1990 Amendment note below.

1990 - Pub. L. 101-510, div. A, title XIV, Sec. 1452(a)(2), Nov.

5, 1990, 104 Stat. 1694, added item 2350h.

Pub. L. 101-510, div. A, title XIV, Sec. 1451(b)(2), Nov. 5,

1990, 104 Stat. 1693, as amended by Pub. L. 102-25, title VII, Sec.

704(a)(9), Apr. 6, 1991, 105 Stat. 119, added item 2350g.

-CITE-

10 USC Sec. 2350a 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER

COUNTRIES

SUBCHAPTER II - OTHER COOPERATIVE AGREEMENTS

-HEAD-

Sec. 2350a. Cooperative research and development agreements: NATO

organizations; allied and friendly foreign countries

-STATUTE-

(a) Authority To Engage in Cooperative R&D Projects. - (1) The

Secretary of Defense may enter into a memorandum of understanding

(or other formal agreement) with one or more countries or

organizations referred to in paragraph (2) for the purpose of

conducting cooperative research and development projects on defense

equipment and munitions.

(2) The countries and organizations with which the Secretary may

enter into a memorandum of agreement (or other formal agreement)

under paragraph (1) are as follows:

(A) The North Atlantic Treaty Organization.

(B) A NATO organization.

(C) A member nation of the North Atlantic Treaty Organization.

(D) A major non-NATO ally.

(E) Any other friendly foreign country.

(3) If such a memorandum of understanding (or other formal

agreement) is with a country referred to in subparagraph (E) of

paragraph (2), such memorandum (or agreement) may go into effect

only after the Secretary submits to the Committees on Armed

Services and on Foreign Relations of the Senate and to the

Committees on Armed Services and on International Relations of the

House of Representatives a report with respect to the proposed

memorandum (or agreement) and a period of 30 days has passed after

the report has been submitted.

(b) Requirement That Projects Improve Conventional Defense

Capabilities. - (1) The Secretary of Defense may not enter into a

memorandum of understanding (or other formal agreement) to conduct

a cooperative research and development project under this section

unless the Secretary determines that the proposed project will

improve, through the application of emerging technology, the

conventional defense capabilities of the North Atlantic Treaty

Organization or the common conventional defense capabilities of the

United States and a country or organization referred to in

subsection (a)(2).

(2) The authority of the Secretary to make a determination under

paragraph (1) may only be delegated to the Deputy Secretary of

Defense and to one other official of the Department of Defense.

(c) Cost Sharing. - Each cooperative research and development

project entered into under this section shall require sharing of

the costs of the project (including the costs of claims) between

the participants on an equitable basis.

(d) Restrictions on Procurement of Equipment and Services. - (1)

In order to assure substantial participation on the part of

countries and organizations referred to in subsection (a)(2) in

cooperative research and development projects, funds made available

for such projects may not be used to procure equipment or services

from any foreign government, foreign research organization, or

other foreign entity.

(2) A country or organization referred to in subsection (a)(2)

may not use any military or economic assistance grant, loan, or

other funds provided by the United States for the purpose of making

the contribution of that country or organization to a cooperative

research and development program entered into with the United

States under this section.

(e) Cooperative Opportunities Document. - (1)(A) In order to

ensure that opportunities to conduct cooperative research and

development projects are considered at an early point during the

formal development review process of the Department of Defense in

connection with any planned project of the Department, the Under

Secretary of Defense for Acquisition, Technology, and Logistics

shall prepare an arms cooperation opportunities document with

respect to that project for review by the Defense Acquisition Board

at formal meetings of the Board.

(B) The Under Secretary shall also prepare an arms cooperation

opportunities document for review of each new project for which a

document known as a Mission Need Statement is prepared.

(2) An arms cooperation opportunities document referred to in

paragraph (1) shall include the following:

(A) A statement indicating whether or not a project similar to

the one under consideration by the Department of Defense is in

development or production by any country or organization referred

to in subsection (a)(2) or NATO organizations.

(B) If a project similar to the one under consideration by the

Department of Defense is in development or production by one or

more countries and organizations referred to in subsection

(a)(2), an assessment by the Under Secretary of Defense for

Acquisition, Technology, and Logistics as to whether that project

could satisfy, or could be modified in scope so as to satisfy,

the military requirements of the project of the United States

under consideration by the Department of Defense.

(C) An assessment of the advantages and disadvantages with

regard to program timing, developmental and life cycle costs,

technology sharing, and Rationalization, Standardization, and

Interoperability (RSI) of seeking to structure a cooperative

development program with one or more countries and organizations

referred to in subsection (a)(2) or NATO organizations.

(D) The recommendation of the Under Secretary as to whether the

Department of Defense should explore the feasibility and

desirability of a cooperative development program with one or

more countries and organizations referred to in subsection (a)(2)

or NATO organizations.

(f) Reports to Congress. - (1) Not later than March 1 of each

year, the Under Secretary of Defense for Acquisition, Technology,

and Logistics shall submit to the Speaker of the House of

Representatives and the Committees on Armed Services and

Appropriations of the Senate a report on cooperative research and

development projects under this section. Each such report shall

include -

(A) a description of the status, funding, and schedule of

existing projects carried out under this section for which

memoranda of understanding (or other formal agreements) have been

entered into; and

(B) a description of the purpose, funding, and schedule of any

new projects proposed to be carried out under this section

(including those projects for which memoranda of understanding

(or other formal agreements) have not yet been entered into) for

which funds have been included in the budget submitted to

Congress pursuant to section 1105 of title 31 for the fiscal year

following the fiscal year in which the report is submitted.

(2) Not later than January 1 of each year, the Secretary of

Defense shall submit to the Committees on Armed Services and on

Foreign Relations of the Senate and to the Committees on Armed

Services and on International Relations of the House of

Representatives a report specifying -

(A) the countries that are eligible to participate in a

cooperative project agreement under this section; and

(B) the criteria used to determine the eligibility of such

countries.

(g) Side-by-Side Testing. - (1) It is the sense of Congress -

(A) that the Secretary of Defense should test conventional

defense equipment, munitions, and technologies manufactured and

developed by countries referred to in subsection (a)(2) to

determine the ability of such equipment, munitions, and

technologies to satisfy United States military requirements or to

correct operational deficiencies; and

(B) that while the testing of nondevelopmental items and items

in the late state of the development process are preferred, the

testing of equipment, munitions, and technologies may be

conducted to determine procurement alternatives.

(2) The Secretary of Defense may acquire equipment, munitions,

and technologies of the type described in paragraph (1) for the

purpose of conducting the testing described in that paragraph.

(3) The Deputy Director, Defense Research and Engineering (Test

and Evaluation) shall notify the Speaker of the House of

Representatives and the Committees on Armed Services and on

Appropriations of the Senate of the Deputy Director's intent to

obligate funds made available to carry out this subsection not less

than 30 days before such funds are obligated.

(h) Secretary To Encourage Similar Programs. - The Secretary of

Defense shall encourage member nations of the North Atlantic Treaty

Organization, major non-NATO allies, and other friendly foreign

countries to establish programs similar to the one provided for in

this section.

(i) Definitions. - In this section:

(1) The term ''cooperative research and development project''

means a project involving joint participation by the United

States and one or more countries and organizations referred to in

subsection (a)(2) under a memorandum of understanding (or other

formal agreement) to carry out a joint research and development

program -

(A) to develop new conventional defense equipment and

munitions; or

(B) to modify existing military equipment to meet United

States military requirements.

(2) The term ''major non-NATO ally'' means a country (other

than a member nation of the North Atlantic Treaty Organization)

that is designated as a major non-NATO ally for purposes of this

section by the Secretary of Defense with the concurrence of the

Secretary of State.

(3) The term ''NATO organization'' means any North Atlantic

Treaty Organization subsidiary body referred to in section

2350(2) of this title and any other organization of the North

Atlantic Treaty Organization.

-SOURCE-

(Added Pub. L. 101-189, div. A, title IX, Sec. 931(a)(2), Nov. 29,

1989, 103 Stat. 1531; amended Pub. L. 101-510, div. A, title XIII,

Sec. 1331(4), Nov. 5, 1990, 104 Stat. 1673; Pub. L. 102-190, div.

A, title X, Sec. 1053, Dec. 5, 1991, 105 Stat. 1471; Pub. L.

102-484, div. A, title VIII, Sec. 843(b)(1), Oct. 23, 1992, 106

Stat. 2469; Pub. L. 103-160, div. A, title IX, Sec. 904(d)(1),

Nov. 30, 1993, 107 Stat. 1728; Pub. L. 103-337, div. A, title

XIII, Sec. 1301, Oct. 5, 1994, 108 Stat. 2888; Pub. L. 104-106,

div. A, title XV, Sec. 1502(a)(17), Feb. 10, 1996, 110 Stat. 504;

Pub. L. 106-65, div. A, title IX, Sec. 911(a)(1), title X, Sec.

1067(1), Oct. 5, 1999, 113 Stat. 717, 774; Pub. L. 107-107, div.

A, title X, Sec. 1048(b)(2), title XII, Sec. 1212(a)-(e)(1), Dec.

28, 2001, 115 Stat. 1225, 1248-1250; Pub. L. 107-314, div. A,

title X, Sec. 1041(a)(9), 1062(f)(2), Dec. 2, 2002, 116 Stat. 2645,

2651.)

-MISC1-

PRIOR PROVISIONS

Provisions relating to NATO countries were contained in Pub. L.

99-145, title XI, Sec. 1103, Nov. 8, 1985, 99 Stat. 712, which was

set out as a note under section 2407 of this title, prior to repeal

by Pub. L. 101-189, Sec. 931(d)(1).

Provisions relating to major non-NATO allies were contained in

section 2767a of Title 22, Foreign Relations and Intercourse, prior

to repeal by Pub. L. 101-189, Sec. 931(d)(2).

AMENDMENTS

2002 - Subsec. (g)(1)(A). Pub. L. 107-314, Sec. 1062(f)(2),

amended directory language of Pub. L. 107-107, Sec. 1212(a)(5). See

2001 Amendment note below.

Subsec. (g)(4). Pub. L. 107-314, Sec. 1041(a)(9), struck out par.

(4) which read as follows: ''The Secretary of Defense shall submit

to Congress each year, not later than March 1, a report containing

information on -

''(A) the equipment, munitions, and technologies manufactured

and developed by countries referred to in subsection (a)(2) that

were evaluated under this subsection during the previous fiscal

year;

''(B) the obligation of any funds under this subsection during

the previous fiscal year; and

''(C) the equipment, munitions, and technologies that were

tested under this subsection and procured during the previous

fiscal year.''

Subsec. (g)(4)(A). Pub. L. 107-314, Sec. 1062(f)(2), amended

directory language of Pub. L. 107-107, Sec. 1212(a)(5). See 2001

Amendment note below.

2001 - Pub. L. 107-107, Sec. 1212(e)(1), substituted

''Cooperative research and development agreements: NATO

organizations; allied and friendly foreign countries'' for

''Cooperative research and development projects: allied countries''

in section catchline.

Subsec. (a)(1). Pub. L. 107-107, Sec. 1212(a)(1)(A), (B),

designated existing provisions of subsec. (a) as par. (1) and

substituted ''countries or organizations referred to in paragraph

(2)'' for ''major allies of the United States or NATO

organizations''.

Subsec. (a)(2). Pub. L. 107-107, Sec. 1212(a)(1)(C), added par.

(2).

Subsec. (a)(3). Pub. L. 107-107, Sec. 1212(b), added par. (3).

Subsec. (b)(1). Pub. L. 107-107, Sec. 1212(a)(2), struck out

''(NATO)'' after ''North Atlantic Treaty Organization'' and

substituted ''a country or organization referred to in subsection

(a)(2)'' for ''its major non-NATO allies''.

Subsec. (b)(2). Pub. L. 107-107, Sec. 1212(c), substituted

''Deputy Secretary of Defense and to one other official of the

Department of Defense'' for ''Deputy Secretary of Defense or the

Under Secretary of Defense for Acquisition, Technology, and

Logistics''.

Subsec. (d)(1). Pub. L. 107-107, Sec. 1212(a)(3)(A), substituted

''countries and organizations referred to in subsection (a)(2)''

for ''the major allies of the United States''.

Subsec. (d)(2). Pub. L. 107-107, Sec. 1212(a)(3)(B), substituted

''country or organization referred to in subsection (a)(2)'' for

''major ally of the United States'' and ''the contribution of that

country or organization'' for ''that ally's contribution''.

Subsec. (e)(1)(A). Pub. L. 107-107, Sec. 1048(b)(2), substituted

''Under Secretary of Defense for Acquisition, Technology, and

Logistics'' for ''Under Secretary of Defense for Acquisition and

Technology''.

Subsec. (e)(2)(A). Pub. L. 107-107, Sec. 1212(a)(4)(A),

substituted ''any country or organization referred to in subsection

(a)(2)'' for ''one or more of the major allies of the United

States''.

Subsec. (e)(2)(B). Pub. L. 107-107, Sec. 1048(b)(2),

1212(a)(4)(B), substituted ''countries and organizations referred

to in subsection (a)(2)'' for ''major allies of the United States

or NATO organizations'' and ''Under Secretary of Defense for

Acquisition, Technology, and Logistics'' for ''Under Secretary of

Defense for Acquisition and Technology''.

Subsec. (e)(2)(C). Pub. L. 107-107, Sec. 1212(a)(4)(C),

substituted ''countries and organizations referred to in subsection

(a)(2)'' for ''major allies of the United States''.

Subsec. (e)(2)(D). Pub. L. 107-107, Sec. 1212(a)(4)(D),

substituted ''countries and organizations referred to in subsection

(a)(2)'' for ''major allies of the United States''.

Subsec. (f)(1). Pub. L. 107-107, Sec. 1048(b)(2), substituted

''Under Secretary of Defense for Acquisition, Technology, and

Logistics'' for ''Under Secretary of Defense for Acquisition and

Technology''.

Subsec. (f)(2). Pub. L. 107-107, Sec. 1212(d), amended par. (2)

generally. Prior to amendment, par. (2) read as follows: ''The

Secretary of Defense and the Secretary of State, whenever they

consider such action to be warranted, shall jointly submit to the

Committee on Armed Services and the Committee on Foreign Relations

of the Senate and the Committee on Armed Services and the Committee

on International Relations of the House of Representatives a report

-

''(A) enumerating those countries to be added to or deleted

from the existing designation of countries designated as major

non-NATO allies for purposes of this section; and

''(B) specifying the criteria used in determining the

eligibility of a country to be designated as a major non-NATO

ally for purposes of this section.''

Subsec. (g)(1)(A), (4)(A). Pub. L. 107-107, Sec. 1212(a)(5), as

amended by Pub. L. 107-314, Sec. 1062(f)(2), substituted

''countries referred to in subsection (a)(2)'' for ''major allies

of the United States and other friendly foreign countries''.

Subsec. (h). Pub. L. 107-107, Sec. 1212(a)(6), substituted

''member nations of the North Atlantic Treaty Organization, major

non-NATO allies, and other friendly foreign countries'' for ''major

allies of the United States''.

Subsec. (i)(1). Pub. L. 107-107, Sec. 1212(a)(7)(A), substituted

''countries and organizations referred to in subsection (a)(2)''

for ''major allies of the United States or NATO organizations''.

Subsec. (i)(2) to (4). Pub. L. 107-107, Sec. 1212(a)(7)(B), (C),

redesignated pars. (3) and (4) as (2) and (3), respectively, and

struck out former par. (2) which read as follows: ''The term 'major

ally of the United States' means -

''(A) a member nation of the North Atlantic Treaty Organization

(other than the United States); or

''(B) a major non-NATO ally.''

1999 - Subsec. (b)(2). Pub. L. 106-65, Sec. 911(a)(1),

substituted ''Under Secretary of Defense for Acquisition,

Technology, and Logistics'' for ''Under Secretary of Defense for

Acquisition and Technology''.

Subsec. (f)(2). Pub. L. 106-65, Sec. 1067(1), substituted ''and

the Committee on Armed Services'' for ''and the Committee on

National Security''.

1996 - Subsec. (f)(2). Pub. L. 104-106 substituted ''submit to

the Committee on Armed Services and the Committee on Foreign

Relations of the Senate and the Committee on National Security and

the Committee on International Relations of the House of

Representatives'' for ''submit to the Committees on Armed Services

and Foreign Relations of the Senate and to the Committees on Armed

Services and Foreign Affairs of the House of Representatives''.

1994 - Subsecs. (a), (e)(2)(A) to (D), (i)(1). Pub. L. 103-337,

Sec. 1301(a), inserted ''or NATO organizations'' after ''major

allies of the United States''.

Subsec. (i)(4). Pub. L. 103-337, Sec. 1301(b), added par. (4).

1993 - Subsecs. (b)(2), (e)(1)(A), (2)(B), (f)(1). Pub. L.

103-160 substituted ''Under Secretary of Defense for Acquisition

and Technology'' for ''Under Secretary of Defense for

Acquisition''.

1992 - Subsec. (c). Pub. L. 102-484 inserted ''(including the

costs of claims)'' after ''the project''.

1991 - Subsec. (g)(1)(A), (4)(A). Pub. L. 102-190 inserted ''and

other friendly foreign countries'' after ''major allies of the

United States''.

1990 - Subsec. (g)(4). Pub. L. 101-510 amended introductory

provisions generally, substituting ''submit to Congress each year,

not later than March 1, a report containing'' for ''include in the

annual report to Congress required by section 2457(d) of this

title''.

EFFECTIVE DATE OF 2002 AMENDMENT

Pub. L. 107-314, div. A, title X, Sec. 1062(f), Dec. 2, 2002,

116 Stat. 2651, provided that the amendment made by section

1062(f)(2) is effective as of Dec. 28, 2001, and as if included in

Pub. L. 107-107 as enacted.

TERMINATION DATE OF 1992 AMENDMENT

Section 843(c) of Pub. L. 102-484, as amended by Pub. L. 103-35,

title II, Sec. 202(a)(7), May 31, 1993, 107 Stat. 101, provided

that, effective Oct. 23, 1994, subsections (a) and (b) of section

843 of Pub. L. 102-484 (amending sections 2350a and 2350d of this

title and section 2767 of Title 22, Foreign Relations and

Intercourse) were to cease to be in effect, and section 27(c) of

the Arms Export Control Act (22 U.S.C. 2767(c)) and sections

2350a(c) and 2350d(c) of this title were to read as if such

subsections had not been enacted, prior to repeal by Pub. L.

103-337, div. A, title XIII, Sec. 1318, Oct. 5, 1994, 108 Stat.

2902.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2349, 2540 of this title;

title 22 section 2349aa-10.

-CITE-

10 USC Sec. 2350b 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER

COUNTRIES

SUBCHAPTER II - OTHER COOPERATIVE AGREEMENTS

-HEAD-

Sec. 2350b. Cooperative projects under Arms Export Control Act:

acquisition of defense equipment

-STATUTE-

(a)(1) If the President delegates to the Secretary of Defense the

authority to carry out section 27(d) of the Arms Export Control Act

(22 U.S.C. 2767(d)), relating to cooperative projects (as defined

in such section), the Secretary may utilize his authority under

this title in carrying out contracts or obligations incurred under

such section.

(2) Except as provided in subsection (c), chapter 137 of this

title shall apply to such contracts (referred to in paragraph (1))

entered into by the Secretary of Defense. Except to the extent

waived under subsection (c) or some other provision of law, all

other provisions of law relating to procurement, if otherwise

applicable, shall apply to such contracts entered into by the

Secretary of Defense.

(b) When contracting or incurring obligations under section 27(d)

of the Arms Export Control Act for cooperative projects, the

Secretary of Defense may require subcontracts to be awarded to

particular subcontractors in furtherance of the cooperative

project.

(c)(1) Subject to paragraph (2), when entering into contracts or

incurring obligations under section 27(d) of the Arms Export

Control Act outside the United States, the Secretary of Defense may

waive with respect to any such contract or subcontract the

application of any provision of law, other than a provision of the

Arms Export Control Act or section 2304 of this title, that

specifically prescribes -

(A) procedures to be followed in the formation of contracts;

(B) terms and conditions to be included in contracts;

(C) requirements for or preferences to be given to goods grown,

produced, or manufactured in the United States or in United

States Government-owned facilities or for services to be

performed in the United States; or

(D) requirements regulating the performance of contracts.

(2) A waiver may not be made under paragraph (1) unless the

Secretary determines that the waiver is necessary to ensure that

the cooperative project will significantly further standardization,

rationalization, and interoperability.

(3) The authority of the Secretary to make waivers under this

subsection may be delegated only to the Deputy Secretary of Defense

or the Acquisition Executive designated for the Office of the

Secretary of Defense.

(d)(1) The Secretary of Defense shall notify the Congress each

time he requires that a prime contract be awarded to a particular

prime contractor or that a subcontract be awarded to a particular

subcontractor to comply with a cooperative agreement. The

Secretary shall include in each such notice the reason for

exercising his authority to designate a particular contractor or

subcontractor, as the case may be.

(2) The Secretary shall also notify the Congress each time he

exercises a waiver under subsection (c) and shall include in such

notice the particular provision or provisions of law that were

waived.

(3) A report under this subsection shall be required only to the

extent that the information required by this subsection has not

been provided in a report made by the President under section 27(e)

of the Arms Export Control Act (22 U.S.C. 2767(e)).

(e)(1) In carrying out a cooperative project under section 27 of

the Arms Export Control Act, the Secretary of Defense may agree

that a participant (other than the United States) or a NATO

organization may make a contract for requirements of the United

States under the project if the Secretary determines that such a

contract will significantly further standardization,

rationalization, and interoperability. Except to the extent waived

under this section or under any other provision of law, the

Secretary shall ensure that such contract will be made on a

competitive basis and that United States sources will not be

precluded from competing under the contract.

(2) If a participant (other than the United States) in such a

cooperative project or a NATO organization makes a contract on

behalf of such project to meet the requirements of the United

States, the contract may permit the contracting party to follow its

own procedures relating to contracting.

(f) In carrying out a cooperative project, the Secretary of

Defense may also agree to the disposal of property that is jointly

acquired by the members of the project without regard to any laws

of the United States applicable to the disposal of property owned

by the United States. Disposal of such property may include a

transfer of the interest of the United States in such property to

one of the other governments participating in the cooperative

agreement or the sale of such property. Payment for the transfer

or sale of any interest of the United States in any such property

shall be made in accordance with the terms of the cooperative

agreement.

(g) Nothing in this section shall be construed as authorizing -

(1) the Secretary of Defense to waive any of the financial

management responsibilities administered by the Secretary of the

Treasury; or

(2) to waive the cargo preference laws of the United States,

including section 2631 of this title and section 901(b) of the

Merchant Marine Act, 1936 (46 U.S.C. App. 1241(b)).

-SOURCE-

(Added Pub. L. 99-145, title XI, Sec. 1102(b)(1), Nov. 8, 1985, 99

Stat. 710, Sec. 2407; amended Pub. L. 99-661, div. A, title XI,

Sec. 1103(b)(1), (2)(A), title XIII, Sec. 1343(a)(15), Nov. 14,

1986, 100 Stat. 3963, 3993; renumbered Sec. 2350b and amended Pub.

L. 101-189, div. A, title IX, Sec. 931(b)(1), (e)(3), Nov. 29,

1989, 103 Stat. 1534, 1535; Pub. L. 104-106, div. A, title XIII,

Sec. 1335, div. D, title XLIII, Sec. 4321(b)(10), Feb. 10, 1996,

110 Stat. 484, 672.)

-REFTEXT-

REFERENCES IN TEXT

The Arms Export Control Act, referred to in subsec. (c)(1), is

Pub. L. 90-629, Oct. 22, 1968, 82 Stat. 1320, as amended, which is

classified principally to chapter 39 (Sec. 2751 et seq.) of Title

22, Foreign Relations and Intercourse. For complete classification

of this Act to the Code, see Short Title note set out under section

2751 of Title 22 and Tables.

-MISC2-

AMENDMENTS

1996 - Subsec. (c)(1). Pub. L. 104-106, Sec. 4321(b)(10)(A),

inserted ''prescribes'' after ''specifically'' in introductory

provisions and struck out ''prescribe'' before ''procedures'' in

subpar. (A), before ''terms'' in subpar. (B), and before

''requirements'' in subpars. (C) and (D).

Subsec. (d)(1). Pub. L. 104-106, Sec. 4321(b)(10)(B), struck out

''to'' after ''subcontract''.

Subsec. (e)(1). Pub. L. 104-106, Sec. 1335(1), inserted ''or a

NATO organization'' after ''United States)''.

Subsec. (e)(2). Pub. L. 104-106, Sec. 1335(2), substituted ''such

a cooperative project or a NATO organization'' for ''a cooperative

project''.

1989 - Pub. L. 101-189 renumbered section 2407 of this title as

this section and substituted ''Cooperative projects under Arms

Export Control Act: acquisition of defense equipment'' for

''Acquisition of defense equipment under cooperative projects'' as

section catchline.

1986 - Pub. L. 99-661, Sec. 1103(b)(2)(A), struck out ''North

Atlantic Treaty Organization'' before ''cooperative projects'' in

section catchline.

Subsec. (a)(1). Pub. L. 99-661, Sec. 1103(b)(1)(A), struck out

''North Atlantic Treaty Organization (NATO)'' before ''cooperative

projects''.

Subsec. (c)(2). Pub. L. 99-661, Sec. 1103(b)(1)(B), struck out

''NATO'' after ''will significantly further''.

Subsec. (e). Pub. L. 99-661, Sec. 1103(b)(1)(C), struck out

''NATO'' after ''will significantly further'' in par. (1) and after

''United States) in a'' in par. (2).

Subsec. (g)(2). Pub. L. 99-661, Sec. 1343(a)(15), substituted

''section 2631 of this title and section 901(b) of the Merchant

Marine Act, 1936 (46 U.S.C. App. 1241(b))'' for ''the Military

Cargo Preference Act of 1904 (10 U.S.C. 2631) and the Cargo

Preference Act of 1954 (46 U.S.C. 1241(b))''.

EFFECTIVE DATE OF 1996 AMENDMENT

For effective date and applicability of amendment by section

4321(b)(10) of Pub. L. 104-106, see section 4401 of Pub. L.

104-106, set out as a note under section 251 of Title 41, Public

Contracts.

-CITE-

10 USC Sec. 2350c 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER

COUNTRIES

SUBCHAPTER II - OTHER COOPERATIVE AGREEMENTS

-HEAD-

Sec. 2350c. Cooperative military airlift agreements: allied

countries

-STATUTE-

(a) Subject to the availability of appropriations, and after

consultation with the Secretary of State, the Secretary of Defense

may enter into cooperative military airlift agreements with the

government of any allied country for the transportation of the

personnel and cargo of the military forces of that country on

aircraft operated by or for the military forces of the United

States in return for the reciprocal transportation of the personnel

and cargo of the military forces of the United States on aircraft

operated by or for the military forces of that allied country. Any

such agreement shall include the following terms:

(1) The rate of reimbursement for transportation provided shall

be the same for each party and shall be not less than the rate

charged to military forces of the United States, as determined by

the Secretary of Defense under section 2208(h) of this title.

(2) Credits and liabilities accrued as a result of providing or

receiving transportation shall be liquidated as agreed upon by

the parties. Liquidation shall be either by direct payment to

the country that has provided the greater amount of

transportation or by the providing of in-kind transportation

services to that country. The liquidation shall occur on a

regular basis, but not less often than once every 12 months.

(3) During peacetime, the only military airlift capacity that

may be used to provide transportation is that capacity that (A)

is not needed to meet the transportation requirements of the

military forces of the country providing the transportation, and

(B) was not created solely to accommodate the requirements of the

military forces of the country receiving the transportation.

(4) Defense articles purchased by an allied country from the

United States under the Arms Export Control Act (22 U.S.C. 2751

et seq.) or from a commercial source under the export controls of

the Arms Export Control Act may not be transported (for the

purpose of delivery incident to the purchase of the defense

articles) to the purchasing allied country on aircraft operated

by or for the military forces of the United States except at a

rate of reimbursement that is equal to the full cost of

transportation of the defense articles, as required by section

21(a)(3) of the Arms Export Control Act (22 U.S.C. 2761(a)(3)).

(b) Subject to the availability of appropriations, and after

consultation with the Secretary of State, the Secretary of Defense

may enter into nonreciprocal military airlift agreements with North

Atlantic Treaty Organization subsidiary bodies for the

transportation of the personnel and cargo of such subsidiary bodies

on aircraft operated by or for the military forces of the United

States. Any such agreement shall be subject to such terms as the

Secretary of Defense considers appropriate.

(c) Any amount received by the United States as a result of an

agreement entered into under this section shall be credited to

applicable appropriations, accounts, and funds of the Department of

Defense.

(d) In this section:

(1) The term ''allied country'' means any of the following:

(A) A country that is a member of the North Atlantic Treaty

Organization.

(B) Australia, New Zealand, Japan, and the Republic of Korea.

(C) Any other country designated as an allied country for the

purposes of this section by the Secretary of Defense with the

concurrence of the Secretary of State.

(2) The term ''North Atlantic Treaty Organization subsidiary

bodies'' has the meaning given to it by section 2350 of this

title.

-SOURCE-

(Added Pub. L. 97-252, title XI, Sec. 1125(a), Sept. 8, 1982, 96

Stat. 757, Sec. 2213; amended Pub. L. 99-145, title XIII, Sec.

1304(b), Nov. 8, 1985, 99 Stat. 742; Pub. L. 100-26, Sec. 7(k)(2),

Apr. 21, 1987, 101 Stat. 284; renumbered Sec. 2350c and amended

Pub. L. 101-189, div. A, title IX, Sec. 931(b)(2), (e)(4), Nov.

29, 1989, 103 Stat. 1534, 1535; Pub. L. 102-484, div. A, title

XIII, Sec. 1311, Oct. 23, 1992, 106 Stat. 2547; Pub. L. 106-398,

Sec. 1 ((div. A), title XII, Sec. 1222), Oct. 30, 2000, 114 Stat.

1654, 1654A-328.)

-REFTEXT-

REFERENCES IN TEXT

The Arms Export Control Act (22 U.S.C. 2751 et seq.), referred to

in subsec. (a)(4), is Pub. L. 90-629, Oct. 22, 1968, 82 Stat. 1320,

as amended, which is classified principally to chapter 39 (Sec.

2751 et seq.) of Title 22, Foreign Relations and Intercourse. For

complete classification of this Act to the Code, see Short Title

note set out under section 2751 of Title 22 and Tables.

-MISC2-

AMENDMENTS

2000 - Subsecs. (d), (e). Pub. L. 106-398 redesignated subsec.

(e) as (d) and struck out former subsec. (d) which read as follows:

''Notwithstanding subchapter I, the Secretary of Defense may enter

into military airlift agreements with allied countries only under

the authority of this section.''

1992 - Subsec. (a)(2). Pub. L. 102-484, Sec. 1311(a), substituted

''as agreed upon by the parties. Liquidation shall be either by

direct payment to the country that has provided the greater amount

of transportation or by the providing of in-kind transportation

services to that country. The liquidation shall occur on a regular

basis, but not less often than once every 12 months.'' for ''not

less often than once every 3 months by direct payment to the

country that has provided the greater amount of transportation.''

Subsec. (e)(1)(B). Pub. L. 102-484, Sec. 1311(b), substituted '',

New Zealand, Japan, and the Republic of Korea'' for ''or New

Zealand''.

1989 - Pub. L. 101-189 renumbered section 2213 of this title as

this section and inserted '': allied countries'' after ''airlift

agreements'' in section catchline.

Subsec. (d). Pub. L. 101-189, Sec. 931(b)(2), substituted

''subchapter I'' for ''chapter 138 of this title''.

1987 - Subsec. (e). Pub. L. 100-26 inserted ''The term'' after

each par. designation and substituted ''allied'' for ''Allied'' in

par. (1).

1985 - Subsec. (e)(2). Pub. L. 99-145 substituted ''section

2350'' for ''section 2331''.

-CITE-

10 USC Sec. 2350d 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER

COUNTRIES

SUBCHAPTER II - OTHER COOPERATIVE AGREEMENTS

-HEAD-

Sec. 2350d. Cooperative logistic support agreements: NATO countries

-STATUTE-

(a) General Authority. - (1) The Secretary of Defense may enter

into bilateral or multilateral agreements known as Weapon System

Partnership Agreements with one or more governments of other member

countries of the North Atlantic Treaty Organization (NATO)

participating in the operation of the NATO Maintenance and Supply

Organization. Any such agreement shall be for the purpose of

providing cooperative logistics support for the armed forces of the

countries which are parties to the agreement. Any such agreement -

(A) shall be entered into pursuant to the terms of the charter

of the NATO Maintenance and Supply Organization; and

(B) shall provide for the common logistic support of a specific

weapon system common to the participating countries.

(2) Such an agreement may provide for -

(A) the transfer of logistics support, supplies, and services

by the United States to the NATO Maintenance and Supply

Organization; and

(B) the acquisition of logistics support, supplies, and

services by the United States from that Organization.

(b) Authority of Secretary. - Under the terms of a Weapon System

Partnership Agreement, the Secretary of Defense -

(1) may agree that the NATO Maintenance and Supply Organization

may enter into contracts for supply and acquisition of logistics

support in Europe for requirements of the United States, to the

extent the Secretary determines that the procedures of such

Organization governing such supply and acquisition are

appropriate; and

(2) may share the costs of set-up charges of facilities for use

by the NATO Maintenance and Supply Organization to provide

cooperative logistics support and in the costs of establishing a

revolving fund for initial acquisition and replenishment of

supply stocks to be used by the NATO Maintenance and Supply

Organization to provide cooperative logistics support.

(c) Sharing of Administrative Expenses. - Each Weapon System

Partnership Agreement shall provide for joint management by the

participating countries and for the equitable sharing of the

administrative costs and costs of claims incident to the agreement.

(d) Application of Chapter 137. - Except as otherwise provided in

this section, the provisions of chapter 137 of this title apply to

a contract entered into by the Secretary of Defense for the

acquisition of logistics support under a Weapon System Partnership

Agreement.

(e) Application of Arms Export Control Act. - Any transfer of

defense articles or defense services to a member country of the

North Atlantic Treaty Organization or to the NATO Maintenance and

Supply Organization for the purposes of a Weapon System Partnership

Agreement shall be carried out in accordance with this chapter and

the Arms Export Control Act (22 U.S.C. 2751 et seq.).

(f) Supplemental Authority. - The authority of the Secretary of

Defense under this section is in addition to the authority of the

Secretary under subchapter I and any other provision of law.

-SOURCE-

(Added and amended Pub. L. 101-189, div. A, title IX, Sec. 931(c),

938(c), Nov. 29, 1989, 103 Stat. 1534, 1539; Pub. L. 102-484, div.

A, title VIII, Sec. 843(b)(2), Oct. 23, 1992, 106 Stat. 2469.)

-REFTEXT-

REFERENCES IN TEXT

The Arms Export Control Act, referred to in subsec. (e), is Pub.

L. 90-629, Oct. 22, 1968, 82 Stat. 1320, as amended, which is

classified principally to chapter 39 (Sec. 2751 et seq.) of Title

22, Foreign Relations and Intercourse. For complete classification

of this Act to the Code, see Short Title note set out under section

2751 of Title 22 and Tables.

-MISC2-

PRIOR PROVISIONS

Provisions similar to those in this section were contained in

Pub. L. 99-661, div. A, title XI, Sec. 1102, Nov. 14, 1986, 100

Stat. 3961, which was set out as a note under section 2407 of this

title, prior to repeal by Pub. L. 101-189, Sec. 931(d)(2).

AMENDMENTS

1992 - Subsec. (c). Pub. L. 102-484 inserted ''and costs of

claims'' after ''administrative costs''.

1989 - Subsec. (e). Pub. L. 101-189, Sec. 938(c), inserted ''this

chapter and'' after ''in accordance with''.

-CITE-

10 USC Sec. 2350e 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER

COUNTRIES

SUBCHAPTER II - OTHER COOPERATIVE AGREEMENTS

-HEAD-

Sec. 2350e. NATO Airborne Warning and Control System (AWACS)

program: authority of Secretary of Defense

-STATUTE-

(a) Authority Under AWACS Program. - The Secretary of Defense, in

carrying out an AWACS memorandum of understanding, may do the

following:

(1) Waive reimbursement for the cost of the following functions

performed by personnel other than personnel employed in the

United States Air Force Airborne Warning and Control System

(AWACS) program office:

(A) Auditing.

(B) Quality assurance.

(C) Codification.

(D) Inspection.

(E) Contract administration.

(F) Acceptance testing.

(G) Certification services.

(H) Planning, programming, and management services.

(2) Waive any surcharge for administrative services otherwise

chargeable.

(3) In connection with that Program, assume contingent

liability for -

(A) program losses resulting from the gross negligence of any

contracting officer of the United States;

(B) identifiable taxes, customs duties, and other charges

levied within the United States on the program; and

(C) the United States share of the unfunded termination

liability.

(b) Contract Authority Limitation. - Authority under this section

to enter into contracts shall be effective for any fiscal year only

to such extent or in such amounts as are provided in appropriation

Acts.

(c) Definition. - In this section, the term ''AWACS memorandum of

understanding'' means -

(1) the Multilateral Memorandum of Understanding Between the

North Atlantic Treaty Organization (NATO) Ministers of Defence on

the NATO E-3A Cooperative Programme, signed by the Secretary of

Defense on December 6, 1978;

(2) the Memorandum of Understanding for Operations and Support

of the NATO Airborne Early Warning and Control Force, signed by

the United States Ambassador to NATO on September 26, 1984;

(3) the Addendum to the Multilateral Memorandum of

Understanding Between the North Atlantic Treaty Organization

(NATO) Ministers of Defence on the NATO E-3A Cooperative

Programme (dated December 6, 1978) relating to the modernization

of the NATO Airborne Early Warning and Control (NAEW&C) System,

dated December 7, 1990; and

(4) any other follow-on support agreement for the NATO E-3A

Cooperative Programme.

-SOURCE-

(Added Pub. L. 101-189, div. A, title IX, Sec. 932(a)(1), Nov. 29,

1989, 103 Stat. 1536; amended Pub. L. 102-190, div. A, title X,

Sec. 1051, Dec. 5, 1991, 105 Stat. 1470; Pub. L. 103-160, div. A,

title XIV, Sec. 1413, Nov. 30, 1993, 107 Stat. 1829.)

-MISC1-

PRIOR PROVISIONS

Provisions similar to those in this section were contained in

Pub. L. 97-86, title I, Sec. 103, Dec. 1, 1981, 95 Stat. 1100, as

amended, which was set out as a note under section 2407 of this

title, prior to repeal by Pub. L. 101-189, Sec. 932(b).

AMENDMENTS

1993 - Subsec. (d). Pub. L. 103-160 struck out subsec. (d) which

read as follows: ''Expiration. - The authority provided by this

section expires on September 30, 1993.''

1991 - Subsec. (c)(3), (4). Pub. L. 102-190, Sec. 1051(1), added

par. (3) and redesignated former par. (3) as (4).

Subsec. (d). Pub. L. 102-190, Sec. 1051(2), substituted ''1993''

for ''1991''.

-CITE-

10 USC Sec. 2350f 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER

COUNTRIES

SUBCHAPTER II - OTHER COOPERATIVE AGREEMENTS

-HEAD-

Sec. 2350f. Procurement of communications support and related

supplies and services

-STATUTE-

(a) As an alternative means of obtaining communications support

and related supplies and services, the Secretary of Defense,

subject to the approval of the Secretary of State, may enter into a

bilateral arrangement with any allied country or allied

international organization or may enter into a multilateral

arrangement with allied countries and allied international

organizations, under which, in return for being provided

communications support and related supplies and services, the

United States would agree to provide to the allied country or

countries or allied international organization or allied

international organizations, as the case may be, an equivalent

value of communications support and related supplies and services.

The term of an arrangement entered into under this subsection may

not exceed five years.

(b)(1) Any arrangement entered into under this section shall

require that any accrued credits and liabilities resulting from an

unequal exchange of communications support and related supplies and

services during the term of such arrangement would be liquidated by

direct payment to the party having provided the greater amount of

communications support and related supplies and services.

Liquidations may be made at such times as the parties in an

arrangement may agree upon, but in no case may final liquidation in

the case of an arrangement be made later than 30 days after the end

of the term for which the arrangement was entered into.

(2) Parties to an arrangement entered into under this section

shall annually reconcile accrued credits and liabilities accruing

under such agreement. Any liability of the United States resulting

from a reconciliation shall be charged against the applicable

appropriation available to the Department of Defense (at the time

of the reconciliation) for obligation for communications support

and related supplies and services.

(3) Payments received by the United States shall be credited to

the appropriation from which such communications support and

related supplies and services have been provided.

((c) Repealed. Pub. L. 107-314, div. A, title X, Sec.

1041(a)(10), Dec. 2, 2002, 116 Stat. 2645.)

(d) In this section:

(1) The term ''allied country'' means -

(A) a country that is a member of the North Atlantic Treaty

Organization;

(B) Australia, New Zealand, Japan, or the Republic of Korea;

or

(C) any other country designated as an allied country for

purposes of this section by the Secretary of Defense with the

concurrence of the Secretary of State.

(2) The term ''allied international organization'' means the

North Atlantic Treaty Organization (NATO) or any other

international organization designated as an allied international

organization for the purposes of this section by the Secretary of

Defense with the concurrence of the Secretary of State.

-SOURCE-

(Added Pub. L. 98-525, title X, Sec. 1005(a), Oct. 19, 1984, 98

Stat. 2578, Sec. 2401a; amended Pub. L. 100-26, Sec. 7(k)(3), Apr.

21, 1987, 101 Stat. 284; renumbered Sec. 2350f and amended Pub. L.

101-189, div. A, title IX, Sec. 933(a)-(d), Nov. 29, 1989, 103

Stat. 1537; Pub. L. 101-510, div. A, title XIV, Sec. 1484(k)(8),

Nov. 5, 1990, 104 Stat. 1719; Pub. L. 104-106, div. A, title XV,

Sec. 1502(a)(2), Feb. 10, 1996, 110 Stat. 502; Pub. L. 106-65,

div. A, title X, Sec. 1067(1), Oct. 5, 1999, 113 Stat. 774; Pub.

L. 107-314, div. A, title X, Sec. 1041(a)(10), Dec. 2, 2002, 116

Stat. 2645.)

-MISC1-

AMENDMENTS

2002 - Subsec. (c). Pub. L. 107-314 struck out subsec. (c) which

read as follows: ''The Secretary of Defense shall submit to the

Committee on Armed Services of the Senate and the Committee on

Armed Services of the House of Representatives copies of all

documents evidencing an arrangement entered into under subsection

(a) not later than 45 days after entering into such an

arrangement.''

1999 - Subsec. (c). Pub. L. 106-65 substituted ''and the

Committee on Armed Services'' for ''and the Committee on National

Security''.

1996 - Subsec. (c). Pub. L. 104-106 substituted ''Committee on

Armed Services of the Senate and the Committee on National Security

of the House of Representatives'' for ''Committees on Armed

Services of the Senate and the House of Representatives''.

1990 - Subsec. (d)(1)(A). Pub. L. 101-510 substituted a semicolon

for '', or'' at end.

1989 - Pub. L. 101-189, Sec. 933(a), renumbered section 2401a of

this title as this section.

Subsec. (a). Pub. L. 101-189, Sec. 933(b), substituted ''a

bilateral arrangement with any allied country or allied

international organization or may enter into a multilateral

arrangement with allied countries and allied international

organizations'' for ''an arrangement with the Minister of Defense

or other appropriate official of any allied country or with the

North Atlantic Treaty Organization (NATO),'' and ''the allied

country or countries or allied international organization or allied

international organizations, as the case may be,'' for ''such

country or NATO'' and inserted ''The term of an arrangement entered

into under this subsection may not exceed five years.''

Subsec. (b). Pub. L. 101-189, Sec. 933(c), designated first

sentence as par. (1), inserted ''Liquidations may be made at such

times as the parties in an arrangement may agree upon, but in no

case may final liquidation in the case of an arrangement be made

later than 30 days after the end of the term for which the

arrangement was entered into.'' after ''supplies and services.'',

added par. (2), and designated second sentence as par. (3).

Subsec. (d). Pub. L. 101-189, Sec. 933(d)(1), (2), substituted

''In this section:'' and par. (1) for ''In this section, the term

'allied country' means - '' and redesignated former cls. (1) and

(2) as cls. (A) and (B).

Subsec. (d)(1)(A). Pub. L. 101-189, Sec. 933(d)(3), which

directed amendment of cl. (A) by substituting a semicolon for '';

or'' at end, could not be executed because ''; or'' did not appear.

Subsec. (d)(1)(B). Pub. L. 101-189, Sec. 933(d)(4), substituted

''; or'' for period at end.

Subsec. (d)(1)(C), (2). Pub. L. 101-189, Sec. 933(d)(5), added

cl. (C) and par. (2).

1987 - Subsec. (d). Pub. L. 100-26 inserted ''the term'' after

''In this section,''.

-CITE-

10 USC Sec. 2350g 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER

COUNTRIES

SUBCHAPTER II - OTHER COOPERATIVE AGREEMENTS

-HEAD-

Sec. 2350g. Authority to accept use of real property, services, and

supplies from foreign countries in connection with mutual

defense agreements and occupational arrangements

-STATUTE-

(a) Authority To Accept. - The Secretary of Defense may accept

from a foreign country, for the support of any element of the armed

forces in an area of that country -

(1) real property or the use of real property and services and

supplies for the United States or for the use of the United

States in accordance with a mutual defense agreement or

occupational arrangement; and

(2) services furnished as reciprocal international courtesies

or as services customarily made available without charge.

(b) Authority to Use Property, Services, and Supplies. -

Property, services, or supplies referred to in subsection (a) may

be used by the Secretary of Defense without specific authorization,

except that such property, services, and supplies may not be used

in connection with any program, project, or activity if the use of

such property, services, or supplies would result in the violation

of any prohibition or limitation otherwise applicable to that

program, project, or activity.

(c) Periodic Audits by GAO. - The Comptroller General of the

United States shall make periodic audits of money and property

accepted under this section, at such intervals as the Comptroller

General determines to be warranted. The Comptroller General shall

submit to Congress a report on the results of each such audit.

-SOURCE-

(Added Pub. L. 101-510, div. A, title XIV, Sec. 1451(b)(1), Nov.

5, 1990, 104 Stat. 1692; amended Pub. L. 103-160, div. A, title

XI, Sec. 1105(a), Nov. 30, 1993, 107 Stat. 1749; Pub. L. 106-65,

div. A, title X, Sec. 1032(a)(3), Oct. 5, 1999, 113 Stat. 751.)

-MISC1-

PRIOR PROVISIONS

Provisions similar to those in this section were contained in

Pub. L. 101-165, title IX, Sec. 9008, Nov. 21, 1989, 103 Stat.

1130, which was set out as a note under section 2341 of this title,

prior to repeal by Pub. L. 101-510, Sec. 1451(c).

AMENDMENTS

1999 - Subsecs. (b) to (d). Pub. L. 106-65 redesignated subsecs.

(c) and (d) as (b) and (c), respectively, and struck out heading

and text of former subsec. (b). Text read as follows:

''(1) Not later than 30 days after the end of each quarter of

each fiscal year, the Secretary of Defense shall submit to Congress

a report on property, services, and supplies accepted by the

Secretary under this section during the preceding quarter. The

Secretary shall include in each such report a description of all

property, services, and supplies having a value of more than

$1,000,000.

''(2) In computing the value of any property, services, and

supplies referred to in paragraph (1), the Secretary shall

aggregate the value of -

''(A) similar items of property, services, and supplies

accepted by the Secretary during the quarter concerned; and

''(B) components which, if assembled, would comprise all or a

substantial part of an item of equipment or a facility.''

1993 - Subsec. (d). Pub. L. 103-160 substituted ''Periodic

Audits'' for ''Annual Audit'' in heading and amended text

generally. Prior to amendment, text read as follows: ''The

Comptroller General of the United States shall conduct an annual

audit of property, services, and supplies accepted by the Secretary

of Defense under this section and shall submit a copy of the

results of each such audit to Congress.''

-CITE-

10 USC Sec. 2350h 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER

COUNTRIES

SUBCHAPTER II - OTHER COOPERATIVE AGREEMENTS

-HEAD-

Sec. 2350h. Memorandums of agreement: Department of Defense

ombudsman for foreign signatories

-STATUTE-

The Secretary of Defense shall designate an official to act as

ombudsman within the Department of Defense on behalf of foreign

governments who are parties to memorandums of agreement with the

United States concerning acquisition matters under the jurisdiction

of the Secretary of Defense. The official so designated shall

assist officials of those foreign governments in understanding and

complying with procedures and requirements of the Department of

Defense (and, as appropriate, other departments and agencies of the

United States) insofar as they relate to any such memorandum of

agreement.

-SOURCE-

(Added Pub. L. 101-510, div. A, title XIV, Sec. 1452(a)(1), Nov.

5, 1990, 104 Stat. 1693.)

-MISC1-

DEADLINE FOR DESIGNATION OF OMBUDSMAN

Section 1452(b) of Pub. L. 101-510 provided that: ''The official

required to be designated under section 2350h of title 10, United

States Code, as added by subsection (a), shall be designated by the

Secretary of Defense not later than 90 days after the date of the

enactment of this Act (Nov. 5, 1990).''

-CITE-

10 USC Sec. 2350i 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER

COUNTRIES

SUBCHAPTER II - OTHER COOPERATIVE AGREEMENTS

-HEAD-

Sec. 2350i. Foreign contributions for cooperative projects

-STATUTE-

(a) Crediting of Contributions. - Whenever the United States

participates in a cooperative project with a friendly foreign

country or the North Atlantic Treaty Organization (NATO) on a

cost-sharing basis, any contribution received by the United States

from that foreign country or NATO to meet its share of the costs of

the project may be credited to appropriations available to an

appropriate military department or another appropriate organization

within the Department of Defense, as determined by the Secretary of

Defense.

(b) Use of Amounts Credited. - The amount of a contribution

credited pursuant to subsection (a) to an appropriation account in

connection with a cooperative project referred to in that

subsection shall be available only for payment of the share of the

project expenses allocated to the foreign country or NATO making

the contribution. Payments for which such amount is available

include the following:

(1) Payments to contractors and other suppliers (including the

Department of Defense and other participants acting as suppliers)

for necessary articles and services.

(2) Payments for any damages and costs resulting from the

performance or cancellation of any contract or other obligation.

(3) Payments or reimbursements of other program expenses,

including program office overhead and administrative costs.

(4) Refunds to other participants.

(c) Definitions. - In this section:

(1) The term ''cooperative project'' means a jointly managed

arrangement, described in a written cooperative agreement entered

into by the participants, that -

(A) is undertaken by the participants in order to improve the

conventional defense capabilities of the participants; and

(B) provides for -

(i) one or more participants (other than the United States)

to share with the United States the cost of research and

development, testing, evaluation, or joint production

(including follow-on support) of defense articles;

(ii) the United States and another participant concurrently

to produce in the United States and the country of such other

participant a defense article jointly developed in a

cooperative project described in clause (i); or

(iii) the United States to procure a defense article or a

defense service from another participant in the cooperative

project.

(2) The term ''defense article'' has the meaning given such

term in section 47(3) of the Arms Export Control Act (22 U.S.C.

2794(3)).

(3) The term ''defense service'' has the meaning given such

term in section 47(4) of the Arms Export Control Act (22 U.S.C.

2794(4)).

-SOURCE-

(Added Pub. L. 102-190, div. A, title X, Sec. 1047(a), Dec. 5,

1991, 105 Stat. 1467.)

-CITE-

10 USC Sec. 2350j 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER

COUNTRIES

SUBCHAPTER II - OTHER COOPERATIVE AGREEMENTS

-HEAD-

Sec. 2350j. Burden sharing contributions by designated countries

and regional organizations

-STATUTE-

(a) Authority To Accept Contributions. - The Secretary of

Defense, after consultation with the Secretary of State, may accept

cash contributions from any country or regional organization

designated for purposes of this section by the Secretary of

Defense, in consultation with the Secretary of State, for the

purposes specified in subsection (c).

(b) Accounting. - Contributions accepted under subsection (a)

which are not related to security assistance may be accepted,

managed, and expended in dollars or in the currency of the host

nation (or, in the case of a contribution from a regional

organization, in the currency in which the contribution was

provided). Any such contribution shall be placed in an account

established for such purpose and shall remain available until

expended for the purposes specified in subsection (c). The

Secretary of Defense shall establish a separate account for such

purpose for each country or regional organization from which such

contributions are accepted under subsection (a).

(c) Availability of Contributions. - Contributions accepted under

subsection (a) shall be available only for the payment of the

following costs:

(1) Compensation for local national employees of the Department

of Defense.

(2) Military construction projects of the Department of

Defense.

(3) Supplies and services of the Department of Defense.

(d) Authorization of Military Construction. - Contributions

placed in an account established under subsection (b) may be used -

(1) by the Secretary of Defense to carry out a military

construction project that is consistent with the purposes for

which the contributions were made and is not otherwise authorized

by law; or

(2) by the Secretary of a military department, with the

approval of the Secretary of Defense, to carry out such a

project.

(e) Notice and Wait Requirements. - (1) When a decision is made

to carry out a military construction project under subsection (d),

the Secretary of Defense shall submit to the congressional

committees specified in subsection (g) a report containing -

(A) an explanation of the need for the project;

(B) the then current estimate of the cost of the project; and

(C) a justification for carrying out the project under that

subsection.

(2) The Secretary of Defense or the Secretary of a military

department may not commence a military construction project under

subsection (d) until the end of the 21-day period beginning on the

date on which the Secretary of Defense submits the report under

paragraph (1) regarding the project.

(3)(A) A military construction project under subsection (d) may

be carried out without regard to the requirement in paragraph (1)

and the limitation in paragraph (2) if the project is necessary to

support the armed forces in the country or region in which the

project is carried out by reason of a declaration of war, or a

declaration by the President of a national emergency pursuant to

the National Emergencies Act (50 U.S.C. 1601 et seq.), that is in

force at the time of the commencement of the project.

(B) When a decision is made to carry out a military construction

project under subparagraph (A), the Secretary of Defense shall

submit to the congressional committees specified in subsection (g)

-

(i) a notice of the decision; and

(ii) a statement of the current estimated cost of the project,

including the cost of any real property transaction in connection

with the project.

(f) Reports. - Not later than 30 days after the end of each

fiscal year, the Secretary of Defense shall submit to Congress a

report specifying separately for each country and regional

organization from which contributions have been accepted by the

Secretary under subsection (a) -

(1) the amount of the contributions accepted by the Secretary

during the preceding fiscal year under subsection (a) and the

purposes for which the contributions were made; and

(2) the amount of the contributions expended by the Secretary

during the preceding fiscal year and the purposes for which the

contributions were expended.

(g) Congressional Committees. - The congressional committees

referred to in subsection (e) are -

(1) the Committee on Armed Services and the Committee on

Appropriations of the Senate; and

(2) the Committee on Armed Services and the Committee on

Appropriations of the House of Representatives.

-SOURCE-

(Added Pub. L. 103-160, div. A, title XIV, Sec. 1402(a), Nov. 30,

1993, 107 Stat. 1825; amended Pub. L. 103-337, div. A, title X,

Sec. 1070(a)(10), Oct. 5, 1994, 108 Stat. 2856; Pub. L. 104-106,

div. A, title XIII, Sec. 1331, Feb. 10, 1996, 110 Stat. 482; Pub.

L. 106-65, div. A, title X, Sec. 1067(1), div. B, title XXVIII,

Sec. 2801, Oct. 5, 1999, 113 Stat. 774, 845.)

-REFTEXT-

REFERENCES IN TEXT

The National Emergencies Act, referred to in subsec. (e)(3), is

Pub. L. 94-412, Sept. 14, 1976, 90 Stat. 1255, as amended, which is

classified principally to chapter 34 (Sec. 1601 et seq.) of Title

50, War and National Defense. For complete classification of this

Act to the Code, see Short Title note set out under section 1601 of

Title 50 and Tables.

-COD-

CODIFICATION

Section, as added by Pub. L. 103-160, consists of text of Pub. L.

102-190, div. A, title X, Sec. 1045, Dec. 5, 1991, 105 Stat. 1465,

as amended by Pub. L. 102-484, div. A, title XIII, Sec. 1305(a),

(b), Oct. 23, 1992, 106 Stat. 2546, and revised by Pub. L. 103-160,

in subsec. (a), by substituting ''The Secretary'' for ''During

fiscal years 1992 and 1993, the Secretary'', inserting '', after

consultation with the Secretary of State,'' after ''Secretary of

Defense'', and substituting ''from any country or regional

organization designated for purposes of this section by the

Secretary of Defense, in consultation with the Secretary of State''

for ''from Japan, Kuwait, and the Republic of Korea'', and in

subsec. (f), by substituting ''each fiscal year'' for ''each

quarter of fiscal years 1992 and 1993'', ''Congress'' for

''congressional defense committees'', ''each country and regional

organization from which contributions have been accepted by the

Secretary under subsection (a)'' for ''Japan, Kuwait, and the

Republic of Korea'', and ''the preceding fiscal year'' for ''the

preceding quarter'' in pars. (1) and (2).

-MISC3-

AMENDMENTS

1999 - Subsec. (e)(3). Pub. L. 106-65, Sec. 2801(a), added par.

(3).

Subsec. (g). Pub. L. 106-65, Sec. 2801(b), substituted

''subsection (e)'' for ''subsection (e)(1)'' in introductory

provisions.

Subsec. (g)(2). Pub. L. 106-65, Sec. 1067(1), substituted

''Committee on Armed Services'' for ''Committee on National

Security''.

1996 - Subsec. (b). Pub. L. 104-106, Sec. 1331(a), amended

subsec. (b) generally. Prior to amendment, subsec. (b) read as

follows: ''Credit to Appropriations. - Contributions accepted in a

fiscal year under subsection (a) shall be credited to

appropriations of the Department of Defense that are available for

that fiscal year for the purposes for which the contributions are

made. The contributions so credited shall be -

''(1) merged with the appropriations to which they are

credited; and

''(2) available for the same time period as those

appropriations.''

Subsec. (d). Pub. L. 104-106, Sec. 1331(b), substituted ''placed

in an account established under subsection (b)'' for ''credited

under subsection (b) to an appropriation account of the Department

of Defense''.

Subsec. (e)(1). Pub. L. 104-106, Sec. 1331(c)(1), substituted

''to the congressional committees specified in subsection (g) a

report'' for ''a report to the congressional defense committees''.

Subsec. (g). Pub. L. 104-106, Sec. 1331(c)(2), added subsec. (g).

1994 - Subsec. (a). Pub. L. 103-337, Sec. 1070(a)(10)(A),

inserted a comma after second reference to ''Secretary of State''.

Subsec. (f). Pub. L. 103-337, Sec. 1070(a)(10)(B), struck out

''the'' before ''Congress'' in introductory provisions.

-CITE-

10 USC Sec. 2350k 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER

COUNTRIES

SUBCHAPTER II - OTHER COOPERATIVE AGREEMENTS

-HEAD-

Sec. 2350k. Relocation within host nation of elements of armed

forces overseas

-STATUTE-

(a) Authority To Accept Contributions. - The Secretary of Defense

may accept contributions from any nation because of or in support

of the relocation of elements of the armed forces from or to any

location within that nation. Such contributions may be accepted in

dollars or in the currency of the host nation. Any such

contribution shall be placed in an account established for such

purpose and shall remain available until expended for the purposes

specified in subsection (b). The Secretary shall establish a

separate account for such purpose for each country from which such

contributions are accepted.

(b) Use of Contributions. - The Secretary may use a contribution

accepted under subsection (a) only for payment of costs incurred in

connection with the relocation concerning which the contribution

was made. Those costs include the following:

(1) Design and construction services, including development and

review of statements of work, master plans and designs,

acquisition of construction, and supervision and administration

of contracts relating thereto.

(2) Transportation and movement services, including packing,

unpacking, storage, and transportation.

(3) Communications services, including installation and

deinstallation of communications equipment, transmission of

messages and data, and rental of transmission capability.

(4) Supply and administration, including acquisition of

expendable office supplies, rental of office space, budgeting and

accounting services, auditing services, secretarial services, and

translation services.

(5) Personnel costs, including salary, allowances and overhead

of employees whether full-time or part-time, temporary or

permanent (except for military personnel), and travel and

temporary duty costs.

(6) All other clearly identifiable expenses directly related to

relocation.

(c) Method of Contribution. - Contributions may be accepted in

any of the following forms:

(1) Irrevocable letter of credit issued by a financial

institution acceptable to the Treasurer of the United States.

(2) Drawing rights on a commercial bank account established and

funded by the host nation, which account is blocked such that

funds deposited cannot be withdrawn except by or with the

approval of the United States.

(3) Cash, which shall be deposited in a separate trust fund in

the United States Treasury pending expenditure and which shall

accrue interest in accordance with section 9702 of title 31.

-SOURCE-

(Added Pub. L. 104-106, div. A, title XIII, Sec. 1332(a)(1), Feb.

10, 1996, 110 Stat. 482; amended Pub. L. 107-314, div. A, title X,

Sec. 1041(a)(11), Dec. 2, 2002, 116 Stat. 2645.)

-MISC1-

AMENDMENTS

2002 - Subsec. (d). Pub. L. 107-314 struck out heading and text

of subsec. (d). Text read as follows: ''Not later than 30 days

after the end of each fiscal year, the Secretary shall submit to

Congress a report specifying -

''(1) the amount of the contributions accepted by the Secretary

during the preceding fiscal year under subsection (a) and the

purposes for which the contributions were made; and

''(2) the amount of the contributions expended by the Secretary

during the preceding fiscal year and the purposes for which the

contributions were expended.''

EFFECTIVE DATE

Section 1332(b) of Pub. L. 104-106 provided that: ''Section 2350k

of title 10, United States Code, as added by subsection (a), shall

take effect on the date of the enactment of this Act (Feb. 10,

1996) and shall apply to contributions for relocation of elements

of the Armed Forces in or to any nation received on or after such

date.''

-CITE-

10 USC Sec. 2350l 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 138 - COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER

COUNTRIES

SUBCHAPTER II - OTHER COOPERATIVE AGREEMENTS

-HEAD-

Sec. 2350l. Cooperative agreements for reciprocal use of test

facilities: foreign countries and international organizations

-STATUTE-

(a) Authority. - The Secretary of Defense, with the concurrence

of the Secretary of State, may enter into a memorandum of

understanding (or other formal agreement) with a foreign country or

international organization to provide for the testing, on a

reciprocal basis, of defense equipment (1) by the United States

using test facilities of that country or organization, and (2) by

that country or organization using test facilities of the United

States.

(b) Payment of Costs. - A memorandum or other agreement under

subsection (a) shall provide that, when a party to the agreement

uses a test facility of another party to the agreement, the party

using the test facility is charged by the party providing the test

facility in accordance with the following principles:

(1) The user party shall be charged the amount equal to the

direct costs incurred by the provider party in furnishing test

and evaluation services by the providing party's officers,

employees, or governmental agencies.

(2) The user party may also be charged indirect costs relating

to the use of the test facility, but only to the extent specified

in the memorandum or other agreement.

(c) Determination of Indirect Costs; Delegation of Authority. -

(1) The Secretary of Defense shall determine the appropriateness of

the amount of indirect costs charged by the United States pursuant

to subsection (b)(2).

(2) The Secretary may delegate the authority under paragraph (1)

only to the Deputy Secretary of Defense and to one other official

of the Department of Defense.

(d) Retention of Funds Collected by the United States. - Amounts

collected by the United States from a party using a test facility

of the United States pursuant to a memorandum or other agreement

under this section shall be credited to the appropriation accounts

from which the costs incurred by the United States in providing

such test facility were paid.

(e) Definitions. - In this section:

(1) The term ''direct cost'', with respect to the use of a test

facility pursuant to a memorandum or other agreement under

subsection (a) -

(A) means any item of cost that is easily and readily

identified to a specific unit of work or output within the test

facility where the use occurred, that would not have been

incurred if such use had not occurred; and

(B) may include costs of labor, materials, facilities,

utilities, equipment, supplies, and any other resources of the

test facility that are consumed or damaged in connection with -

(i) the use; or

(ii) the maintenance of the test facility for purposes of

the use.

(2) The term ''indirect cost'', with respect to the use of a

test facility pursuant to a memorandum or other agreement under

subsection (a) -

(A) means any item of cost that is not easily and readily

identified to a specific unit of work or output within the test

facility where the use occurred; and

(B) may include general and administrative expenses for such

activities as supporting base operations, manufacturing,

supervision, procurement of office supplies, and utilities that

are accumulated costs allocated among several users.

(3) The term ''test facility'' means a range or other facility

at which testing of defense equipment may be carried out.

-SOURCE-

(Added Pub. L. 107-107, div. A, title XII, Sec. 1213(a), Dec. 28,

2001, 115 Stat. 1250.)

-CITE-