competitive pricing for sales of defense articles

competitive pricing for sales of defense articles Sec. 531A. (a) Costing Basis.— Section 22 of the Arms Export Control Act (22 U.S.C. 2762) is amended by adding at the end the following: “(d) Competitive Pricing.— Procurement contracts made in implementation of sales under this section for defense articles and defense services wholly paid for from funds made available on a nonrepayable basis shall be priced on the same costing basis with regard to profit, overhead, independent research and development, bid and proposal, and other costing elements, as is applicable to procurements of like items purchased by the Department of Defense for its own use.”. (b) Effective Date and Implementing Regulations.— Section 22(d) of the Arms Export Control Act, as added by subsection (a)— (1) shall take effect on the 60th day following the date of the enactment of this Act; (2) shall be applicable only to contracts made in implementation of sales made after such effective date; and (3) shall be implemented by revised procurement regulations, which shall be issued prior to such effective date. (c) Direct Costs Allowable.— Direct costs associated with meeting a foreign customer’s additional or unique requirements will continue to be allowable under such contracts. Loadings applicable to such direct costs shall be permitted at the same rates applicable to procurement of like items purchased by the Department of Defense for its own use.