Review and report

(a) Review (1) In general Not later than 1 year after the date of the enactment of this Act, and annually thereafter, the Secretary of State, in coordination with the Secretary of Defense, shall carry out a review of defense articles and defense services that are eligible to be provided under the Foreign Military Sales program under chapter 2 of the Arms Export Control Act, but not eligible to be provided under direct commercial sales under section 38 of such Act in order to identify those articles and services that should be eligible to be provided under direct commercial sales. (2) Matters to be addressed The review required by this subsection shall address the following with respect to each defense article and defense services identified under this subsection: (A) The length of time to complete a transfer of the article or service under the Foreign Military Sales program as compared to a transfer under a direct commercial sale. (B) The impact on the workload for the Department of State and Department of Defense by reason of a transfer of the article or service under a direct commercial sale. (C) The benefits to United States national security and United States competitiveness by reason of a transfer of the article or service under a direct commercial sale. (3) Consultation The Secretary of State shall consult with the Defense Trade Advisory Group of the Department of Defense and other interested parties in conducting the review required by this subsection. (b) Report (1) In general Not later than 30 days after the completion of each review required by subsection (a), the Secretary of State, in coordination of the Secretary of Defense, shall submit to the appropriate congressional committees a report that contains the results of the review, including— (A) the criteria used to identify defense articles and defense services under this subsection under the current review; and (B) an identification of those defense articles and defense services that have been newly identified or no longer identified under the current review and the reasons therefor. (2) Form The report required by this subsection shall be submitted in unclassified form, but may contain a classified annex. (3) Appropriate congressional committees defined In this subsection, the term appropriate congressional committees means— (A) the Committee on Foreign Affairs and the Committee on Armed Services of the House of Representatives; and (B) the Committee on Foreign Relations and the Committee on Armed Services of the Senate.