Sec. 1212. Modifications to foreign military sales processes
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/bill/119/s/1071/eah/section-1212·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Secretary of Defense shall, with respect to the foreign military sales process— establish a requirement that, in developing letters of offer and acceptance for a foreign military sale, the acquisition program manager, or other official responsible for the program, shall develop an acquisition strategy that is— informed by input from the purchaser of such foreign military sale; and executed in a manner that effectively addresses urgency of need and associated risk tolerance of such purchaser; and in establishing such requirement, ensure that such purchaser is provided an opportunity to provide input on urgency of need and associated risk tolerance, alternative acquisition approaches that may be taken to accelerate program delivery, and the schedule, cost, and capability trade-offs associated with such alternate approaches.
A United States prime contractor may enter into a covered agreement with a manufacturer to begin the process of acquiring long-lead Government-furnished equipment based on forecasted requirements prior to the execution of a contract for a commercial sale or issuance of a letter of offer and acceptance for a foreign military sale. The Secretary of Defense and each Secretary of a military department shall implement policies that allow United States prime contractors to enter into covered agreements described in paragraph (1).
The policies required by subparagraph
(A)shall require— United States prime contractors to be responsible for— negotiating directly with the manufacturer of Government-furnished equipment, including with respect to the terms and conditions described in subsection (c)(1)(B); and providing any payment to such manufacturer; and transfer of Government-furnished equipment from such manufacturer to the prime contractor shall not occur until the date on which a contract for a commercial sale or letter of offer and acceptance is executed with respect to the foreign military sale that is the subject of the covered agreement. Nothing in this subsection shall be construed as authorizing, requiring, or providing for the United States Government to assume any liability or other financial responsibility with respect to a covered agreement. In this section: The term covered agreement means an agreement between a United States prime contractor and a manufacturer pursuant to which— the prime contractor, in anticipation of a foreign military sale, enters into a contract with the manufacturer for the production of one or more defense articles (as defined in section 301 of title 10, United States Code) that will be supplied to the prime contractor as Government-furnished equipment; the parties agree to the allocation of risks, obligations, profits, and costs in the event the anticipated foreign military sale does not occur, including whether the defense articles manufactured under the agreement are retained by the manufacturer; and the United States Government assumes no liability with respect to either party in the event the anticipated foreign military sale does not occur. The term foreign military sales process means the processes for foreign military sales authorized under chapter 2 of the Arms Export Control Act ( 22 U.S.C. 2761 et seq. ).
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Sec. 1212
Modifications to foreign military sales processes
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