Sec. 1679. ISRAELI COOPERATIVE MISSILE DEFENSE PROGRAM CODEVELOPMENT AND COPRODUCTION

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## SEC. 1679 ISRAELI COOPERATIVE MISSILE DEFENSE PROGRAM CODEVELOPMENT AND COPRODUCTION ###

(a)In general Subject to subsection (b), of the funds authorized to be appropriated for fiscal year 2016 for procurement, Defense-wide, and available for the Missile Defense Agency— ####

(1)not more than $150,000,000 may be provided to the Government of Israel to procure the David’s Sling Weapon System, including for coproduction of parts and components in the United States by United States industry; and ####

(2)not more than $15,000,000 may be provided to the Government of Israel for the Arrow 3 Upper Tier Interceptor Program, including for coproduction of parts and components in the United States by United States industry. ###

(b)Certification ####

(1)Criteria Except as provided by subsection (c), the Under Secretary of Defense for Acquisition, Technology, and Logistics shall submit to the appropriate congressional committees a certification that— #####

(A)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; #####

(B)such funds 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); #####

(C)the United States has entered into a bilateral agreement with Israel that establishes— ######

(i)in accordance with subparagraph (D), 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; ######

(ii)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; ######

(iii)technical milestones for coproduction of parts and components and procurement of such respective systems; and ######

(iv)joint approval processes for third-party sales of such respective systems and the components of such respective systems; and #####

(D)the level of coproduction described in subparagraph (C)(i) for the David’s Sling Weapon System is equal to or greater than 50 percent. ####

(2)Number In carrying out paragraph (1), the Under Secretary may submit— #####

(A)one certification covering both the David’s Sling Weapon System and the Arrow 3 Upper Tier Interceptor Program; or #####

(B)separate certifications for each such respective system. ####

(3)Timing The Under Secretary shall submit to the congressional defense committees the certification under paragraph

(1)by not later than 60 days before the funds specified in subsection

(a)for the respective system covered by the certification are provided to the Government of Israel. ###

(c)Waiver The Under Secretary may waive the certification required by subsection

(b)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— ####

(1)the funds specified in paragraph

(1)and

(2)of subsection

(a)are provided to Israel solely for funding the procurement of long-lead components 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; ####

(2)such long-lead components have successfully completed knowledge points, technical milestones, and production readiness reviews; and ####

(3)the long-lead procurement will be conducted in a manner that maximizes coproduction in the United States without incurring additional nonrecurring engineering activity or cost. ###

(d)Plan on Coproduction of David’s Sling Weapon System At the same time that the President submits to Congress the budget for fiscal year 2017 under section 1105(a) of title 31, United States Code, the Director of the Missile Defense Agency and the Under Secretary shall jointly submit to the appropriate congressional committees a plan to achieve a rate of coproduction by United States industry of parts and components of the David’s Sling Weapon System at a level that is not less than 50 percent. Such plan shall include— ####

(1)a timeline for achieving such a level of coproduction; ####

(2)any nonrecurring engineering or facilitization costs related to such coproduction, costs for additional testing and training, and other additional associated costs; ####

(3)a recommendation for whether carrying out such plan is in the national interest of the United States; and ####

(4)any other matter the Director and Under Secretary consider appropriate. ###

(e)Appropriate Congressional Committees Defined In this section, the term “appropriate congressional committees” means the following: ####

(1)The congressional defense committees. ####

(2)The Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate.