
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC2344]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
CHAPTER 138--COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER COUNTRIES
 
        SUBCHAPTER I--ACQUISITION AND CROSS-SERVICING AGREEMENTS
 
Sec. 2344. Methods of payment for acquisitions and transfers by 
        the United States
        
    (a) Logistics support, supplies, and services may be acquired or 
transferred by the United States under the authority of this subchapter 
on a reimbursement basis or by replacement-in-kind or exchange of 
supplies or services of an equal value.
    (b)(1) In entering into agreements with the Government of another 
North Atlantic Treaty Organization country or other foreign country for 
the acquisition or transfer of logistic support, supplies, and services 
on a reimbursement basis, the Secretary of Defense shall negotiate for 
adoption of the following pricing principles for reciprocal application:
        (A) The price charged by a supplying country for logistics 
    support, supplies, and services specifically procured by the 
    supplying country from its contractors for a recipient country shall 
    be no less favorable than the price for identical items or services 
    charged by such contractors to the armed forces of the supplying 
    country, taking into account price differentials due to delivery 
    schedules, points of delivery, and other similar considerations.
        (B) The price charged a recipient country for supplies furnished 
    by a supplying country from its inventory, and the price charged a 
    recipient country for logistics support and services furnished by 
    the officers, employees, or governmental agencies of a supplying 
    country, shall be the same as the price charged for identical 
    supplies, support, or services acquired by an armed force of the 
    supplying country from such governmental sources.

    (2) To the extent that the Secretary of Defense is unable to obtain 
mutual acceptance by the other country involved of the reciprocal 
pricing principles for reimbursable transactions set forth in paragraph 
(1)--
        (A) the United States may not acquire from such country any 
    logistic support, supply, or service not governed by such reciprocal 
    pricing principles unless the United States forces commander 
    acquiring such support, supply, or service determines (after price 
    analysis) that the price thereof is fair and reasonable; and
        (B) transfers by the United States to such country under this 
    subchapter of any logistic support, supply, or service that is not 
    governed by such reciprocal pricing principles shall be subject to 
    the pricing provisions of the Arms Export Control Act (22 U.S.C. 
    2751 et seq.).

    (3) To the extent that indirect costs (including charges for plant 
and production equipment), administrative surcharges, and contract 
administration costs with respect to any North Atlantic Treaty 
Organization country or other foreign country are not waived by 
operation of the reciprocal pricing principles of paragraph (1), the 
Secretary of Defense may, on a reciprocal basis, agree to waive such 
costs.
    (4) The pricing principles set forth in paragraph (2) and the waiver 
authority provided in paragraph (3) shall also apply to agreements with 
North Atlantic Treaty Organization subsidiary bodies and the United 
Nations Organization or any regional international organization of which 
the United States is a member under this subchapter.
    (c) In acquiring or transferring logistics support, supplies, or 
services under the authority of this subchapter by exchange of supplies 
or services, the Secretary of Defense may not agree to or carry out the 
following:
        (1) Transfers in exchange for property the acquisition of which 
    by the Department of Defense is prohibited by law.
        (2) Transfers of source, byproduct, or special nuclear materials 
    or any other material, article, data, or thing of value the transfer 
    of which is subject to the Atomic Energy Act of 1954 (42 U.S.C. 2011 
    et seq.).
        (3) Transfers of chemical munitions.

(Added Pub. L. 96-323, Sec. 2(a), Aug. 4, 1980, 94 Stat. 1017, 
Sec. 2324; amended Pub. L. 97-22, Sec. 11(a)(8), July 10, 1981, 95 Stat. 
138; renumbered Sec. 2344, Pub. L. 99-145, title XIII, Sec. 1304(a)(1), 
Nov. 8, 1985, 99 Stat. 741; Pub. L. 99-661, div. A, title XI, 
Sec. 1104(b), Nov. 14, 1986, 100 Stat. 3964; Pub. L. 101-189, div. A, 
title IX, Secs. 931(e)(1), 938(a), (b), Nov. 29, 1989, 103 Stat. 1535, 
1539; Pub. L. 102-25, title VII, Sec. 701(f)(2), Apr. 6, 1991, 105 Stat. 
115; Pub. L. 103-337, div. A, title XIII, Sec. 1317(d), Oct. 5, 1994, 
108 Stat. 2900.)

                       References in Text

    The Arms Export Control Act, referred to in subsec. (b)(2)(B), is 
Pub. L. 90-629, Oct. 22, 1968, 82 Stat. 1320, as amended, which is 
classified principally to chapter 39 (Sec. 2751 et seq.) of Title 22, 
Foreign Relations and Intercourse. For complete classification of this 
Act to the Code, see Short Title note set out under section 2751 of 
Title 22 and Tables.
    The Atomic Energy Act of 1954, referred to in subsec. (c)(2), is act 
Aug. 1, 1946, ch. 724, as added by act Aug. 30, 1954, ch. 1073, Sec. 1, 
68 Stat. 921, and amended, which is classified generally to chapter 23 
(Sec. 2011 et seq.) of Title 42, The Public Health and Welfare. For 
complete classification of this Act to the Code, see Short Title note 
set out under section 2011 of Title 42 and Tables.


                               Amendments

    1994--Subsec. (b)(4). Pub. L. 103-337 inserted ``and the United 
Nations Organization or any regional international organization of which 
the United States is a member'' after ``subsidiary bodies''.
    1991--Subsec. (c). Pub. L. 102-25 substituted ``subchapter'' for 
``chapter'' in introductory provisions.
    1989--Subsec. (a). Pub. L. 101-189, Secs. 931(e)(1), 938(a), 
substituted ``equal value'' for ``identical or substantially identical 
nature'' and ``this subchapter'' for ``this chapter''.
    Subsec. (b)(2)(B), (4). Pub. L. 101-189, Sec. 931(e)(1), substituted 
``this subchapter'' for ``this chapter''.
    Subsec. (c). Pub. L. 101-189, Sec. 938(b), added subsec. (c).
    1986--Subsec. (b)(1), (3). Pub. L. 99-661 inserted ``or other 
foreign country'' after ``country''.
    1985--Pub. L. 99-145 renumbered section 2324 of this title as this 
section.
    1981--Subsec. (b)(2)(B). Pub. L. 97-22 substituted ``this chapter'' 
for ``this Act''.


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-337 applicable with regard to any 
acquisition or transfer of logistic support, supplies, and services 
under authority of this subchapter that is initiated after Oct. 5, 1994, 
see section 1317(j) of Pub. L. 103-337, set out as a note under section 
2341 of this title.
