Sec. 1687. Iron Dome short-range rocket defense system, Israeli cooperative missile defense program codevelopment and coproduction, and Arrow 3 testing
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Of the funds authorized to be appropriated by this Act or otherwise made available for fiscal year 2018 for procurement, Defense-wide, and available for the Missile Defense Agency, not more than $92,000,000 may be provided to the Government of Israel to procure system components for the Iron Dome Defense short-range rocket defense program, through the coproduction of such system components in the United States by industry of the United States. Funds described in paragraph
(1)for the Iron Dome short-range rocket defense program shall be available subject to the terms and conditions in the Agreement Between the Department of Defense of the United States of America and the Ministry of Defense of the State of Israel Concerning Iron Dome Defense System Procurement, signed on March 5, 2014, subject to an amended bilateral international agreement for coproduction for Tamir interceptors. In negotiations by the Missile Defense Agency and the Missile Defense Organization of the Government of Israel regarding such production, the goal of the United States is to maximize opportunities for coproduction of the Tamir interceptors described in paragraph
(1)in the United States by industry of the United States. Not later than 30 days prior to the initial obligation of funds described in paragraph (1), the Director of the Missile Defense Agency and the Under Secretary of Defense for Acquisition, Technology, and Logistics shall jointly submit to the appropriate congressional committees— a certification that the amended bilateral international agreement specified in subparagraph
(A)is being implemented as provided in such agreement; and an assessment detailing any risks relating to the implementation of such agreement. Subject to paragraph (2), of the funds authorized to be appropriated for fiscal year 2018 for procurement, Defense-wide, and available for the Missile Defense Agency— not more than $221,500,000 may be provided to the Government of Israel for the David’s Sling Weapon System Program, of which not more than $120,000,000 may be used to procure the David’s Sling Weapon System, including for coproduction of parts and components in the United States by United States industry; and not more than $287,300,000 may be provided to the Government of Israel for the Arrow Weapon System, including the Arrow 3 Upper Tier System, of which not more than $120,000,000 may be used to procure the Arrow 3 Upper Tier Interceptor System, including for coproduction of parts and components in the United States by United States industry. Except as provided by paragraph (3), the Under Secretary of Defense for Acquisition, Technology, and Logistics shall submit to the appropriate congressional committees a certification that— the Government of Israel has demonstrated the successful completion of the knowledge points, technical milestones, and production readiness reviews required by the research, development, and technology agreements for the David’s Sling Weapon System and the Arrow 3 Upper Tier Development Program, respectively; funds specified in subparagraphs
(A)and
(B)of paragraph
(1)will be provided on the basis of a one-for-one cash match made by Israel for such respective systems or in another matching amount that otherwise meets best efforts (as mutually agreed to by the United States and Israel); the United States has entered into a bilateral international agreement with Israel that establishes, with respect to the use of such funds— in accordance with clause (iv), the terms of coproduction of parts and components of such respective systems on the basis of the greatest practicable coproduction of parts, components, and all-up rounds (if appropriate) by United States industry and minimizes nonrecurring engineering and facilitization expenses to the costs needed for coproduction; complete transparency on the requirement of Israel for the number of interceptors and batteries of such respective systems that will be procured, including with respect to the procurement plans, acquisition strategy, and funding profiles of Israel; technical milestones for coproduction of parts and components and procurement of such respective systems; and joint approval processes for third-party sales of such respective systems and the components of such respective systems; the level of coproduction described in clause (iii)(I) for the Arrow 3 Upper Tier Interceptor Program and the David’s Sling Weapon System is not less than 50 percent; and there is a separate, clear plan for each of the David’s Sling Weapon System and the Arrow 3 Upper Tier Interceptor Program for improving the affordability of the respective system, and each such plan is approved by a United States-Israeli joint working group on cost-reduction for such respective system. In carrying out subparagraph (A), the Under Secretary may submit— one certification covering both the David’s Sling Weapon System and the Arrow 3 Upper Tier Interceptor Program; or separate certifications for each respective system. The Under Secretary shall submit to the congressional defense committees the certification under subparagraph
(A)by not later than 60 days before the funds specified in paragraph
(1)for the respective system covered by the certification are provided to the Government of Israel. The Under Secretary may waive the certification required by paragraph
(2)if the Under Secretary certifies to the appropriate congressional committees that the Under Secretary has received sufficient data from the Government of Israel to demonstrate— the funds specified in subparagraphs
(A)and
(B)of paragraph
(1)are provided to Israel solely for funding the procurement of long-lead components and critical hardware in accordance with a production plan, including a funding profile detailing Israeli contributions for production, including long-lead production, of either David’s Sling Weapon System or the Arrow 3 Upper Tier Interceptor Program; such long-lead components have successfully completed knowledge points, technical milestones, and production readiness reviews; and the long-lead procurement will be conducted in a manner that maximizes coproduction in the United States without incurring nonrecurring engineering activity or cost other than such activity or cost required for suppliers of the United States to start or restart production in the United States. Not later than 30 days after the date on which both plans described in paragraph (2)(A)(v) are completed, the Under Secretary shall provide to the appropriate congressional committees a joint briefing on such plans. Of the funds authorized to be appropriated by this Act or otherwise made available for fiscal year 2018 for the Missile Defense Agency, not more than $105,000,000 may be obligated or expended for— testing of the Arrow 3 Upper Tier Development Program that is carried out at ranges located in the United States; and expenses relating to such testing that the Director determines to be required and appropriate. The amounts and purposes referred to in this section correspond to amounts specified for such purposes in the funding tables in division D. In this section, the term appropriate congressional committees means the following: The congressional defense committees. The Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate.