
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC2350b]

 
                         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 II--OTHER COOPERATIVE AGREEMENTS
 
Sec. 2350b. Cooperative projects under Arms Export Control Act: 
        acquisition of defense equipment
        
    (a)(1) If the President delegates to the Secretary of Defense the 
authority to carry out section 27(d) of the Arms Export Control Act (22 
U.S.C. 2767(d)), relating to cooperative projects (as defined in such 
section), the Secretary may utilize his authority under this title in 
carrying out contracts or obligations incurred under such section.
    (2) Except as provided in subsection (c), chapter 137 of this title 
shall apply to such contracts (referred to in paragraph (1)) entered 
into by the Secretary of Defense. Except to the extent waived under 
subsection (c) or some other provision of law, all other provisions of 
law relating to procurement, if otherwise applicable, shall apply to 
such contracts entered into by the Secretary of Defense.
    (b) When contracting or incurring obligations under section 27(d) of 
the Arms Export Control Act for cooperative projects, the Secretary of 
Defense may require subcontracts to be awarded to particular 
subcontractors in furtherance of the cooperative project.
    (c)(1) Subject to paragraph (2), when entering into contracts or 
incurring obligations under section 27(d) of the Arms Export Control Act 
outside the United States, the Secretary of Defense may waive with 
respect to any such contract or subcontract the application of any 
provision of law, other than a provision of the Arms Export Control Act 
or section 2304 of this title, that specifically prescribes--
        (A) procedures to be followed in the formation of contracts;
        (B) terms and conditions to be included in contracts;
        (C) requirements for or preferences to be given to goods grown, 
    produced, or manufactured in the United States or in United States 
    Government-owned facilities or for services to be performed in the 
    United States; or
        (D) requirements regulating the performance of contracts.

    (2) A waiver may not be made under paragraph (1) unless the 
Secretary determines that the waiver is necessary to ensure that the 
cooperative project will significantly further standardization, 
rationalization, and interoperability.
    (3) The authority of the Secretary to make waivers under this 
subsection may be delegated only to the Deputy Secretary of Defense or 
the Acquisition Executive designated for the Office of the Secretary of 
Defense.
    (d)(1) The Secretary of Defense shall notify the Congress each time 
he requires that a prime contract be awarded to a particular prime 
contractor or that a subcontract be awarded to a particular 
subcontractor to comply with a cooperative agreement. The Secretary 
shall include in each such notice the reason for exercising his 
authority to designate a particular contractor or subcontractor, as the 
case may be.
    (2) The Secretary shall also notify the Congress each time he 
exercises a waiver under subsection (c) and shall include in such notice 
the particular provision or provisions of law that were waived.
    (3) A report under this subsection shall be required only to the 
extent that the information required by this subsection has not been 
provided in a report made by the President under section 27(e) of the 
Arms Export Control Act (22 U.S.C. 2767(e)).
    (e)(1) In carrying out a cooperative project under section 27 of the 
Arms Export Control Act, the Secretary of Defense may agree that a 
participant (other than the United States) or a NATO organization may 
make a contract for requirements of the United States under the project 
if the Secretary determines that such a contract will significantly 
further standardization, rationalization, and interoperability. Except 
to the extent waived under this section or under any other provision of 
law, the Secretary shall ensure that such contract will be made on a 
competitive basis and that United States sources will not be precluded 
from competing under the contract.
    (2) If a participant (other than the United States) in such a 
cooperative project or a NATO organization makes a contract on behalf of 
such project to meet the requirements of the United States, the contract 
may permit the contracting party to follow its own procedures relating 
to contracting.
    (f) In carrying out a cooperative project, the Secretary of Defense 
may also agree to the disposal of property that is jointly acquired by 
the members of the project without regard to any laws of the United 
States applicable to the disposal of property owned by the United 
States. Disposal of such property may include a transfer of the interest 
of the United States in such property to one of the other governments 
participating in the cooperative agreement or the sale of such property. 
Payment for the transfer or sale of any interest of the United States in 
any such property shall be made in accordance with the terms of the 
cooperative agreement.
    (g) Nothing in this section shall be construed as authorizing--
        (1) the Secretary of Defense to waive any of the financial 
    management responsibilities administered by the Secretary of the 
    Treasury; or
        (2) to waive the cargo preference laws of the United States, 
    including section 2631 of this title and section 901(b) of the 
    Merchant Marine Act, 1936 (46 U.S.C. App. 1241(b)).

(Added Pub. L. 99-145, title XI, Sec. 1102(b)(1), Nov. 8, 1985, 99 Stat. 
710, Sec. 2407; amended Pub. L. 99-661, div. A, title XI, 
Sec. 1103(b)(1), (2)(A), title XIII, Sec. 1343(a)(15), Nov. 14, 1986, 
100 Stat. 3963, 3993; renumbered Sec. 2350b and amended Pub. L. 101-189, 
div. A, title IX, Sec. 931(b)(1), (e)(3), Nov. 29, 1989, 103 Stat. 1534, 
1535; Pub. L. 104-106, div. A, title XIII, Sec. 1335, div. D, title 
XLIII, Sec. 4321(b)(10), Feb. 10, 1996, 110 Stat. 484, 672.)

                       References in Text

    The Arms Export Control Act, referred to in subsec. (c)(1), 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.


                               Amendments

    1996--Subsec. (c)(1). Pub. L. 104-106, Sec. 4321(b)(10)(A), inserted 
``prescribes'' after ``specifically'' in introductory provisions and 
struck out ``prescribe'' before ``procedures'' in subpar. (A), before 
``terms'' in subpar. (B), and before ``requirements'' in subpars. (C) 
and (D).
    Subsec. (d)(1). Pub. L. 104-106, Sec. 4321(b)(10)(B), struck out 
``to'' after ``subcontract''.
    Subsec. (e)(1). Pub. L. 104-106, Sec. 1335(1), inserted ``or a NATO 
organization'' after ``United States)''.
    Subsec. (e)(2). Pub. L. 104-106, Sec. 1335(2), substituted ``such a 
cooperative project or a NATO organization'' for ``a cooperative 
project''.
    1989--Pub. L. 101-189 renumbered section 2407 of this title as this 
section and substituted ``Cooperative projects under Arms Export Control 
Act: acquisition of defense equipment'' for ``Acquisition of defense 
equipment under cooperative projects'' as section catchline.
    1986--Pub. L. 99-661, Sec. 1103(b)(2)(A), struck out ``North 
Atlantic Treaty Organization'' before ``cooperative projects'' in 
section catchline.
    Subsec. (a)(1). Pub. L. 99-661, Sec. 1103(b)(1)(A), struck out 
``North Atlantic Treaty Organization (NATO)'' before ``cooperative 
projects''.
    Subsec. (c)(2). Pub. L. 99-661, Sec. 1103(b)(1)(B), struck out 
``NATO'' after ``will significantly further''.
    Subsec. (e). Pub. L. 99-661, Sec. 1103(b)(1)(C), struck out ``NATO'' 
after ``will significantly further'' in par. (1) and after ``United 
States) in a'' in par. (2).
    Subsec. (g)(2). Pub. L. 99-661, Sec. 1343(a)(15), substituted 
``section 2631 of this title and section 901(b) of the Merchant Marine 
Act, 1936 (46 U.S.C. App. 1241(b))'' for ``the Military Cargo Preference 
Act of 1904 (10 U.S.C. 2631) and the Cargo Preference Act of 1954 (46 
U.S.C. 1241(b))''.


                    Effective Date of 1996 Amendment

    For effective date and applicability of amendment by section 
4321(b)(10) of Pub. L. 104-106, see section 4401 of Pub. L. 104-106, set 
out as a note under section 251 of Title 41, Public Contracts.
