Sec. 4324. Sales to United States companies for incorporation into end items
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/bill/113/hr/1793/ih/section-4324·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Subject to the conditions specified in subsection (b), the President may, on a negotiated contract basis, under cash terms— sell defense articles at not less than their estimated replacement cost (or actual cost in the case of services); or procure or manufacture and sell defense articles at not less than their contract or manufacturing cost to the United States Government, to any United States company for incorporation into end items (and for concurrent or follow-on support) to be sold by such a company either— on a direct commercial basis to a foreign country or international organization pursuant to an export license or approval under section 4301; or in the case of ammunition parts subject to subsection (b), using commercial practices which restrict actual delivery directly to a foreign country or international organization pursuant to approval under section 4301.
The President may also sell defense services in support of such sales of defense articles, subject to the requirements of this chapter. Such services may be performed only in the United States. The amount of reimbursement received from such sales shall be credited to the current applicable appropriation, fund, or account of the selling agency of the United States Government. Defense articles and defense services may be sold, procured and sold, or manufactured and sold, pursuant to subsection
(a)only if— the end item to which the articles apply is to be procured for the armed forces of a country or international organization; the articles would be supplied to the prime contractor as government-furnished equipment or materials if the end item were being procured for the use of the United States Armed Forces; and the articles and services are available only from United States Government sources or are not available to the prime contractor directly from United States commercial sources at such times as may be required to meet the prime contractor’s delivery schedule.