(B) Australia, New Zealand, Japan, and the Republic of Korea. 48

(C) Any other country designated as an allied country for the purposes of this section by the Secretary of Defense with the concurrence of the Secretary of State.

(2) The term "North Atlantic Treaty Organization subsidiary bodies" has the meaning given to it by section 2331 of this title.

§ 2350d.49 Cooperative logistic support agreements: NATO coun

tries

(a) GENERAL AUTHORITY.—(1) The Secretary of Defense may enter into bilateral or multilateral agreements known as Weapon System Partnership Agreements with one or more governments of other member countries of the North Atlantic Treaty Organization (NATO) participating in the operation of the NATO Maintenance and Supply Organization. Any such agreement shall be for the purpose of providing cooperative logistics support for the armed forces of the countries which are parties to the agreement. Any such agreement

(A) shall be entered into pursuant to the terms of the charter of the NATO Maintenance and Supply Organization; and (B) shall provide for the common logistic support of a specific weapon system common to the participating countries. (2) Such an agreement may provide for

(A) the transfer of logistics support, supplies, and services by the United States to the NATO Maintenance and Supply Organization; and

(B) the acquisition of logistics support, supplies, and services by the United States from that Organization.

(b) AUTHORITY OF SECRETARY.-Under the terms of a Weapon System Partnership Agreement, the Secretary of Defense

(1) may agree that the NATO Maintenance and Supply Organization may enter into contracts for supply and acquisition of logistics support in Europe for requirements of the United States, to the extent the Secretary determines that the procedures of such Organization governing such supply and acquisition are appropriate; and

(2) may share the costs of set-up charges of facilities for use by the NATO Maintenance and Supply Organization to provide cooperative logistics support and in the costs of establishing a revolving fund for initial acquisition and replenishment of supply stocks to be used by the NATO Maintenance and Supply Organization to provide cooperative logistics support. (c) SHARING OF ADMINISTRATIVE EXPENSES.-Each Weapon System Partnership Agreement shall provide for joint management by the participating countries and for the equitable sharing of the

48 Sec. 1311(b) of Public Law 102-484 (106 Stat. 2547) struck out "or New Zealand", and inserted in lieu thereof ", New Zealand, Japan, and the Republic of Korea".

49 Sec. 931(c) of the National Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1534) added sec. 2350d.

administrative costs and costs of claims 50 incident to the agree

ment.

(d) APPLICATION OF CHAPTER 137.-Except as otherwise provided in this section, the provisions of chapter 137 of this title apply to a contract entered into by the Secretary of Defense for the acquisition of logistics support under a Weapon System Partnership Agreement.

(e) APPLICATION OF ARMS Export Control ACT.-Any transfer of defense articles or defense services to a member country of the North Atlantic Treaty Organization or to the NATO Maintenance and Supply Organization for the purposes of a Weapon System Partnership Agreement shall be carried out in accordance this chapter and 51 with the Arms Export Control Act (22 U.S.C. 2751 et seq.).

(f) SUPPLEMENTAL AUTHORITY.-The authority of the Secretary of Defense under this section is in addition to the authority of the Secretary under subchapter I and any other provision of law.

§ 2350e.52 NATO Airborne Warning and Control System (AWACS) program: authority of Secretary of Defense

(a) AUTHORITY UNDER AWACS PROGRAM.-The Secretary of Defense, in carrying out an AWACS memorandum of understanding, may do the following:

(1) Waive reimbursement for the cost of the following functions performed by personnel other than personnel employed in the United States Air Force Airborne Warning and Control System (AWACS) program office:

(A) Auditing.

(B) Quality assurance.
(C) Codification.

(D) Inspection.

(E) Contract administration.

(F) Acceptance testing.

(G) Certification services.

(H) Planning, programming, and management services. (2) Waive any surcharge for administrative services otherwise chargeable.

(3) In connection with that Program, assume contingent liability for

(A) program losses resulting from the gross negligence of any contracting officer of the United States;

(B) identifiable taxes, customs duties, and other charges levied within the United States on the program; and

(C) the United States share of the unfunded termination liability.

50 Sec. 843(b)(2) of Public Law 102-484 (106 Stat. 2469) inserted "and costs of claims" after administrative costs". Subsec. (c) of that section further provided:

"(c) TERMINATION.-On the date which is two years after the date of the enactment of this Act [enacted October 23, 1992], subsections (a) [amending sec. 27(c) of the Arms Export Control Act] and (b) shall cease to be in effect, and section 27(c) of the Arms Export Control Act and section 2350a of title 10, United States Code, shall read as if such subsections had not been enacted.". 51 Sec. 938(c) of the National Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1539), added "this chapter and".

52 Sec. 932(a) of the National Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1536) added sec. 2350e.

(b) CONTRACT AUTHORITY LIMITATION.-Authority under this section to enter into contracts shall be effective for any fiscal year only to such extent or in such amounts as are provided in appropriation Acts.

(c) DEFINITION.-In this section, the term "AWACS memorandum of understanding" means

(1) the Multilateral Memorandum of Understanding Between the North Atlantic Treaty Organization (NATO) Ministers of Defence on the NATO E-3A Cooperative Programme, signed by the Secretary of Defense on December 6, 1978;

(2) the Memorandum of Understanding for Operations and Support of the NATO Airborne Early Warning and Control Force, signed by the United States Ambassador to NATO on September 26, 1984; 53

(3) 53 the Addendum to the Multilateral Memorandum of Understanding Between the North Atlantic Treaty Organization (NATO) Ministers of Defense on the NATO E-3A Cooperative Programme (dated December 6, 1978) relating to the modernization of the NATO Airborne Early Warning and Control (NAEW&C) System, dated December 7, 1990; and

(4) 53 any other follow-on support agreement for the NATO E-3A Cooperative Programme.

(d) EXPIRATION.-The authority provided by this section expires on September 30, 1993.54

§ 2350f.55 Procurement of communications support and related supplies and services

(a) As an alternative means of obtaining communications support and related supplies and services, the Secretary of Defense, subject to the approval of the Secretary of State, may enter into a bilateral arrangement with any allied country or allied international organization or may enter into a multilateral arrangement with allied countries and allied international organizations, 56 under which, in return for being provided communications support and related supplies and services, the United States would agree to provide to the allied country or countries or allied international organization or allied international organizations, as the case may be,57 an equivalent value of communications support and related supplies and

53 Sec. 1051(1) of the National Defense Authorization Act for Fiscal Years 1992 and 1993 (Public Law 102-190; 105 Stat. 1470) struck out "and" at the end of par. (2); redesignated par. (3) as (4); inserted a new par. (3).

54 Sec. 1051(2) of the National Defense Authorization Act for Fiscal Years 1992 and 1993 (Public Law 102-190; 105 Stat. 1470) struck out "September 30, 1991" and inserted in lieu thereof "September 30, 1993".

55 Sec. 2350f was enacted as sec. 2401a by sec. 1005 of the Department of Defense Authorization Act, 1985 (Public Law 98-525; 98 Stat. 2492 at 2578); and redesignated as sec. 2350f by sec. 933(a) of the National Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1537).

56 Sec. 933(b)(1) of the National Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1537) inserted text to this point beginning with "a bilateral arrangement", and struck out "an arrangement with the Minister of Defense or other appropriate official of any allied country or with the North Atlantic Treaty Organization (NATO)".

57 Sec. 933(b)(2) of the National Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1537), struck out "such country or NATO" and inserted in lieu thereof text to this point beginning with "the allied country or countries or".

services. The term of an arrangement entered into under this subsection may not exceed five years. 58

(b)(1) 59 Any arrangement entered into under this section shall require that any accrued credits and liabilities resulting from an unequal exchange of communications support and related supplies and services during the term of such arrangement would be liquidated by direct payment to the party having provided the greater amount of communications support and related supplies and services. Liquidations may be made at such times as the parties in an arrangement may agree upon, but in no case may final liquidation in the case of an arrangement be made later than 30 days after the end of the term for which the arrangement was entered into; and 59

(2) 59 Parties to an arrangement entered into under this section shall annually reconcile accrued credits and liabilities accruing under such agreement. Any liability of the United States resulting from a reconciliation shall be charged against the applicable appropriation available to the Department of Defense (at the time of the reconciliation) for obligation for communications support and related supplies and services.

(3) 59 Payments received by the United States shall be credited to the appropriation from which such communications support and related supplies and services have been provided.

(c) The Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives copies of all documents evidencing an arrangement entered into under subsection (a) not later than 45 days after entering into such an arrangement.

(d) 60 In this section:

(1) The term "allied country" means—

(A) a country that is a member of the North Atlantic Treaty Organization; 61

(B) Australia, New Zealand, Japan, or the Republic of Korea; or

(C) any other country designated as an allied country for purposes of this section by the Secretary of Defense with the concurrence of the Secretary of State.

(2) The term "allied international organization" means the North Atlantic Treaty Organization (NATO) or any other international organization designated as an allied international organization for the purposes of this section by the Secretary of Defense with the concurrence of the Secretary of State.

58 Sec. 933(b)(3) of the National Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1537), added this last sentence.

59 Sec. 933(c) of the National Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1537), added paragraph designation (1); added par. (2), designated the last sentence of par. (1) as par. (3); and added the last sentence to par. (1).

60 Sec. 933(d) of Public Law 101-189 struck "In this section, the term 'allied country' means" from (d), inserted in lieu thereof "In this section:"; redesignated clauses (1) and (2) as (A) and (B), respectively; made technical corrections to clauses redesignated as (A) and (B); and added a new clause (C) and par. (2).

61 Sec. 1484(k)(8) of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1719) struck out ", or" here and inserted a semicolon.

§ 2350g.62 Authority to accept use of real property, services, and supplies from foreign countries in connection with mutual defense agreements and occupational arrangements

(a) AUTHORITY TO ACCEPT.-The Secretary of Defense may accept from a foreign country, for the support of any element of the armed forces in an area of that country

(1) real property or the use of real property and services and supplies for the United States or for the use of the United States in accordance with a mutual defense agreement or occupational arrangement; and

(2) services furnished as reciprocal international courtesies or as services customarily made available without charge. (b) QUARTERLY REPORTS. (1) Not later than 30 days after the end of each quarter of each fiscal year, the Secretary of Defense shall submit to Congress a report on property, services, and supplies accepted by the Secretary under this section during the preceding quarter. The Secretary shall include in each such report a description of all property, services, and supplies having a value of more than $1,000,000.

(2) In computing the value of any property, services, and supplies referred to in paragraph (1), the Secretary shall aggregate the value of

(A) similar items of property, services, and supplies accepted by the Secretary during the quarter concerned; and

(B) components which, if assembled, would comprise all or a substantial part of an item of equipment or a facility.

(c) AUTHORITY TO USE PROPERTY, SERVICES, AND SUPPLIES.-Property, services, or supplies referred to in subsection (a) may be used by the Secretary of Defense without specific authorization, except that such property, services, and supplies may not be used in connection with any program, project, or activity if the use of such property, services, or supplies would result in the violation of any prohibition or limitation otherwise applicable to that program, project, or activity.

(d) ANNUAL AUDIT BY GAO.-The Comptroller General of the United States shall conduct an annual audit of property, services, and supplies accepted by the Secretary of Defense under this section and shall submit a copy of the results of each such audit to Congress.

§ 2350h.63 Memorandums of agreement: Department of Defense ombudsman for foreign signatories

The Secretary of Defense shall designate an official to act as ombudsman within the Department of Defense on behalf of foreign

62 Sec. 1451(b)(1) of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1693) added sec. 2350g.

63 Sec. 1452(a)(1) of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1694) added sec. 2350h. Sec. 1452(b) of that Act also provided that: "The official required to be designated under section 2350(h) of title 10, United States Code, as added by subsection (a), shall be designated by the Secretary of Defense not later than 90 days after the date of the enactment of this Act.".