22 U.S.C. § 2767: Authority of President to enter into cooperative projects with friendly foreign countries

The President may enter into a cooperative project agreement with the North Atlantic Treaty Organization or with one or more member countries of that Organization. for one or more of the other participants to share with the United States the costs of research on and development, testing, evaluation, or joint production (including follow-on support) of certain defense articles; for concurrent production in the United States and in another member country of a defense article jointly developed in accordance with subparagraph (A); or for procurement by the United States of a defense article or defense service from another member country or for procurement by the United States of munitions from the North Atlantic Treaty Organization or a subsidiary of such organization; for one or more of the other participants to share with the United States the costs of research on and development, testing, evaluation, or joint production (including follow-on support) of certain defense articles; for concurrent production in the United States and in the country of another participant of a defense article jointly developed in accordance with subparagraph (A); or for procurement by the United States of a defense article or defense service from another participant to the agreement; and the term “other participant” means a participant in a cooperative project other than the United States. Each agreement for a cooperative project shall provide that the United States and each of the other participants will contribute to the cooperative project its equitable share of the full cost of such cooperative project and will receive an equitable share of the results of such cooperative project. The full costs of such cooperative project shall include overhead costs, administrative costs, and costs of claims. The United States and the other participants may contribute their equitable shares of the full cost of such cooperative project in funds or in defense articles or defense services needed for such cooperative project. Military assistance and financing received from the United States Government may not be used by any other participant to provide its share of the cost of such cooperative project. Such agreements shall provide that no requirement shall be imposed by a participant for worksharing or other industrial or commercial compensation in connection with such agreement that is not in accordance with such agreement. The President may enter into contracts or incur other obligations for a cooperative project on behalf of the other participants, without charge to any appropriation or contract authorization, if each of the other participants in the cooperative project agrees (1) to pay its equitable share of the contract or other obligation, and (2) to make such funds available in such amounts and at such times as may be required by the contract or other obligation and to pay any damages and costs that may accrue from the performance of or cancellation of the contract or other obligation in advance of the time such payments, damages, or costs are due. For those cooperative projects entered into on or after the effective date 1 of the International Security and Development Cooperation Act of 1985, the President may reduce or waive the charge or charges which would otherwise be considered appropriate under 1 See References in Text note below. section 2761(e) of this title in connection with sales under sections 2761 and 2762 of this title when such sales are made as part of such cooperative project, if the other participants agree to reduce or waive corresponding charges. Notwithstanding provisions of section 2761(e)(1)(A) and section 2792(b) of this title , administrative surcharges shall not be increased on other sales made under this chapter in order to compensate for reductions or waivers of such surcharges under this section. Funds received pursuant to such other sales shall not be available to reimburse the costs incurred by the United States Government for which reduction or waiver is approved by the President under this section. a detailed description of the cooperative project with respect to which the certification is made; an estimate of the quantity of the defense articles expected to be produced in furtherance of such cooperative project; an estimate of the full cost of the cooperative project, with an estimate of the part of the full cost to be incurred by the United States Government, including an estimate of the costs as a result of waivers of section 2 2761(e)(1)(A) and 2792(b) of this title, for its participation in such cooperative project and an estimate of that part of the full costs to be incurred by the other participants; 2 So in original. Probably should be “sections”. an estimate of the dollar value of the funds to be contributed by the United States and each of the other participants on behalf of such cooperative project; a description of the defense articles and defense services expected to be contributed by the United States and each of the other participants on behalf of such cooperative project; a statement of the foreign policy and national security benefits anticipated to be derived from such cooperative project; and to the extent known, whether it is likely that prime contracts will be awarded to particular prime contractors or that subcontracts will be awarded to particular subcontractors to comply with the proposed agreement. In the case of a cooperative project with a North Atlantic Treaty Organization country, section, 3 2776(b) of this title shall not apply to sales made under section 2761 or 2762 of this title and to production and exports made pursuant to cooperative projects under this section, and 3 So in original. The comma probably should not appear. section 2776(c) of this title shall not apply to the issuance of licenses or other approvals under section 2778 of this title , if such sales are made, such production and exports ensue, or such licenses or approvals are issued, as part of a cooperative project. The authority under this section is in addition to the authority under sections 2761 and 2762 of this title and under any other provision of law. With the approval of the Secretary of State and the Secretary of Defense, a cooperative agreement which was entered into by the United States before the effective date 1 of the amendment to this section made by the International Security and Development Cooperation Act of 1985 and which meets the requirements of this section as so amended may be treated on and after such date as having been made under this section as so amended. Notwithstanding the amendment made 4 to this section made by the International Security and Development Cooperation Act of 1985, projects entered into under the authority of this section before the effective date 4 So in original. The word “made” probably should not appear. 1 of that amendment may be carried through to conclusion in accordance with the terms of this section as in effect immediately before the effective date 1 of that amendment. The President may enter into a cooperative project agreement with any friendly foreign country not a member of the North Atlantic Treaty Organization under the same general terms and conditions as the President is authorized to enter into such an agreement with one or more member countries of the North Atlantic Treaty Organization if the President determines that the cooperative project agreement with such country would be in the foreign policy or national security interests of the United States. Omitted. Not later than two days after the President transmits a certification to Congress pursuant to section 27(f) of the Arms Export Control Act ( 22 U.S.C. 2767(f) ) regarding a proposed cooperative project agreement that is expected to result in the award of a Department of Defense contract for the engineering and manufacturing development of a major weapon system, the Secretary of Defense shall submit to the Chairmen of the Committees on Armed Services of the Senate and the House of Representatives a report setting forth a risk assessment of the proposed cooperative project. The Secretary shall prepare each report required by paragraph (1) in consultation with the Under Secretary of Defense for Acquisition and Sustainment, the Under Secretary of Defense for Research and Engineering, and the Director of Cost Assessment and Program Evaluation of the Department of Defense. An assessment of the design, technical, manufacturing, and integration risks associated with developing and procuring the weapon system to be procured under the cooperative project. A statement identifying any termination liability that would be incurred under the development contract to be entered into under subsection (a)(1), and a statement of the extent to which such termination liability would not be fully funded by appropriations available or sought in the fiscal year in which the agreement for the cooperative project is signed on behalf of the United States. An assessment of the advisability of incurring any unfunded termination liability identified under paragraph (2) given the risks identified in the assessment under paragraph (1). A listing of which, if any, requirements associated with the oversight and management of a major defense acquisition program (as prescribed under Department of Defense Instruction 5000.02 or related authorities) will be waived, or in any way modified, in carrying out the development contract to be entered into under [subsection] (a)(1), and a full explanation why such requirements need to be waived or modified. The term ‘engineering and manufacturing development’ has the meaning given that term in Department of Defense Instruction 5000.02. The term ‘major weapon system’ has the meaning given that term in section 101(a) of title 10 , United States Code.”