CODIFICATION OF CERTAIN ALLIED COOPERATIVE AGREEMENTS STATUTES

SEC. 931. CODIFICATION OF CERTAIN ALLIED COOPERATIVE AGREEMENTS STATUTES (a) Statutory Reorganization.—Chapter 138 of title 10, United States Code, is amended— (1) by striking out the chapter heading and inserting in lieu thereof the following: “CHAPTER 138—COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER COUNTRIES “Subchapter “I. Acquisition and Cross-Servicing Agreements 2341 “II. Other Cooperative Agreements 2350a “SUBCHAPTER I—ACQUISITION AND CROSS-SERVICING AGREEMENTS”; and (2) by adding at the end the following: “SUBCHAPTER II—OTHER COOPERATIVE AGREEMENTS “Sec. “2350a. Cooperative research and development projects: allied 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. “§ 2350a. Cooperative research and development projects: allied countries “(a) Authority To Engage in Cooperative R&D Projects.—The Secretary of Defense may enter into a memorandum of understanding (or other formal agreement) with one or more major allies of the United States for the purpose of conducting cooperative research and development projects on defense equipment and munitions. “(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 (NATO) or the common conventional defense capabilities of the United States and its major non-NATO allies. “(2) The authority of the Secretary to make a determination under paragraph (1) may only be delegated to the Deputy Secretary of Defense or the Under Secretary of Defense for Acquisition. 103 STAT. 1532 “(c) Cost Sharing.—Each cooperative research and development project entered into under this section shall require sharing of the costs of the project 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 the major allies of the United States 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 major ally of the United States may not use any military or economic assistance grant, loan, or other funds provided by the United States for the purpose of making that ally’s contribution 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 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 one or more of the major allies of the United States. “(B) If a project similar to the one under consideration by the Department of Defense is in development or production by one or more major allies of the United States, an assessment by the Under Secretary of Defense for Acquisition 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 major allies of the United States. “(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 major allies of the United States. “(f) Reports to Congress.—(1) Not later than March 1 of each year, the Under Secretary of Defense for Acquisition 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 memo-103 STAT. 1533randa 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) The Secretary of Defense and the Secretary of State, when-ever they consider such action to be warranted, shall jointly 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 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. “(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 major allies of the United States 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. “(4) The Secretary of Defense shall include in the annual report to Congress required by section 2457(d) of this title information on— “(A) the equipment, munitions, and technologies manufactured and developed by major allies of the United States 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. “(h) Secretary To Encourage Similar Programs.—The Secretary of Defense shall encourage major allies of the United States 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 103 STAT. 1534States and one or more major allies of the United States 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 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. “(3) 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.”. (b) Transfer of Existing Title 10 Sections.—(1) Section 2407 of title 10, United States Code (relating to acquisition of defense equipment under cooperative agreements), is transferred to the end of chapter 138 of such title (as amended by subsection (a)) and redesignated as section 2350b. (2) Section 2213 of such title (relating to cooperative military airlift agreements), is transferred to the end of chapter 138 of such title (as amended by paragraph (1)), redesignated as section 2350c, and amended in subsection (d) by striking out “chapter 138 of this title” and inserting in lieu thereof “subchapter I”. (c) Codification of Existing Non-Title 10 Section.—Chapter 138 of such title (as amended by subsection (b)) is further amended by adding at the end the following new section: “§ 2350d. Cooperative logistic support agreements: NATO countries “(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 103 STAT. 1535procedures 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 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 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.”. (d) Conforming Repeals.—The following provisions of law are repealed: (1) Section 1103 of the Department of Defense Authorization Act, 1980 (Public Law 99–145; 99 Stat. 713). (2) Section 1102 and section 1105 of the National Defense Authorization Act for Fiscal Year 1987 (Public Law 99–661, 800 Stat. 3961, 3965). (e) Conforming and Clerical Amendments.—(1) Sections 2342 through 2350 of title 10, United States Code, are amended by striking out “this chapter” each place it appears and inserting in lieu thereof “this subchapter”. (2) The items relating to chapter 138 in the table of chapters at the beginning of subtitle A, and at the beginning of part IV of subtitle A, of such title are amended to read as follows: “138. Cooperative Agreements with NATO Allies and Other Countries 2341”. (3) The heading of section 2350b of such title (as redesignated by subsection (b)(1) is amended to read as follows: “§ 2350b. Cooperative projects under Arms Export Control Act: acquisition of defense equipment”. (4) The heading of section 2350c of such title (as redesignated by subsection (b)(2)) is amended to read as follows:103 STAT. 1536 “§ 2350c. Cooperative military airlift agreements; allied countries”.