Streamlining and expediting sales of defense articles and services

(a) Acquisition strategies (1) In general With respect to purchasers with a special designation, the Secretary of Defense shall establish a requirement that, in developing letters of offer and acceptance, the acquisition program office of each military department shall develop, at program inception— (A) an acquisition strategy that documents the standard acquisition path; and (B) an acquisition strategy that documents the fastest acquisition path. (2) Associated risk In developing each acquisition strategy required by subparagraphs (A) and (B) of paragraph (1), the acquisition program office of the military department concerned shall— (A) measure, and justify with respect to the urgency of delivering a capability in full or in phases, the associated risk, risk mitigation, and risk cost; (B) in the case of a sole-source program that is not a program of record, transparently consult with the prime contractor to seek consensus on cost and schedule; and (C) provide, in coordination with the appropriate regional directorate of the Office of the Under Secretary of Defense for Policy and the Director of the Defense Security Cooperation Agency, to the acquisition leadership of such military department a briefing on the results of the measurements under subparagraph (A) and the consultation under subparagraph (B). (3) Decision Not later than 30 days after the date of a briefing under paragraph (2)(C), the acquisition leadership of the military department concerned shall issue a decision with respect to the acquisition strategy selected. (b) Input from purchaser with special designation (1) In general The Secretary of Defense shall ensure that, in the development of acquisition strategies for purchasers with a special designation under subsection (a), the purchaser with a special designation is provided an opportunity to provide input with respect to risk tolerance. (2) Information sharing In carrying out paragraph (1), the Secretary of Defense shall ensure that a purchaser with a special designation is briefed on risks identified, alternate approaches that may be taken, and the schedule, cost, and capability tradeoffs associated with such alternate approaches. (3) Inclusion in briefing Purchaser input gathered under this paragraph shall be included in the briefing required by subsection (a)(2)(C) and appropriately weighed in making a final decision with respect to the appropriate acquisition approach. (c) Agreements with manufacturers (1) In general A United States prime contractor may enter into a covered agreement with a manufacturer to begin the process of acquiring long-lead Government-furnished equipment, including sensitive and closely controlled items such as communications security devices, military grade GPS, and anti-spoofing devices, on forecast prior to the execution of a signed commercial contract or issuance of a letter of offer and acceptance. (2) Covered agreement defined In this subsection, the term covered agreement means an agreement between a United States prime contractor and a manufacturer pursuant to which— (A) the prime contractor, in anticipation of a foreign military sale, contracts for the production by the manufacturer of one or more articles that will be supplied to the prime contractor as government-furnished equipment prior to execution of a signed commercial contract or issuance of a letter of offer and acceptance in connection with such sale; (B) the parties agree to the allocation of risks, obligations, profits, and costs in the event the anticipated foreign military sale does not occur, including whether the articles manufactured under the agreement are retained by the manufacturer for eventual supply to the prime contractor or a third party in connection with a future foreign military sale or other transaction; and (C) the United States Government assumes no liability with respect to either party in the event the anticipated foreign military sale does not occur. (3) Department of Defense policy (A) In general The Secretary of Defense shall implement policies, and ensure that the head of each military department implements policies, that allow United States prime contractors to enter into covered agreements with manufacturers of Government-furnished equipment. (B) Elements The policies required by subparagraph (A) shall require that— (i) United States prime contractors shall be responsible for— (I) negotiating directly with the manufacturer of Government-furnished equipment, including with respect to the terms and conditions described in paragraph (2)(B); and (II) providing any payment to such manufacturer; and (ii) transfer of Government-furnished equipment from such manufacturer to the primary contractor shall not occur until the date on which a letter of offer and acceptance or commercial contract is produced. (4) Rule of construction Nothing in this subsection shall be construed as authorizing, requiring, or providing for the United States Government to assume any liability or other financial responsibility with respect to a covered agreement. (d) Purchaser with a special designation defined In this section, the term purchaser with a special designation means Israel, Japan, the Republic of Korea, New Zealand, the Philippines, Thailand, Taiwan, member countries of the North Atlantic Treaty Organization, major defense partners, major security partners, and eligible purchasers that are members of the national technology and industrial base.

(a) Acquisition strategies (1) In general With respect to purchasers with a special designation, the Secretary of Defense shall establish a requirement that, in developing letters of offer and acceptance, the acquisition program office of each military department shall develop, at program inception— (A) an acquisition strategy that documents the standard acquisition path; and (B) an acquisition strategy that documents the fastest acquisition path. (2) Associated risk In developing each acquisition strategy required by subparagraphs (A) and (B) of paragraph (1), the acquisition program office of the military department concerned shall— (A) measure, and justify with respect to the urgency of delivering a capability in full or in phases, the associated risk, risk mitigation, and risk cost; (B) in the case of a sole-source program that is not a program of record, transparently consult with the prime contractor to seek consensus on cost and schedule; and (C) provide, in coordination with the appropriate regional directorate of the Office of the Under Secretary of Defense for Policy and the Director of the Defense Security Cooperation Agency, to the acquisition leadership of such military department a briefing on the results of the measurements under subparagraph (A) and the consultation under subparagraph (B). (3) Decision Not later than 30 days after the date of a briefing under paragraph (2)(C), the acquisition leadership of the military department concerned shall issue a decision with respect to the acquisition strategy selected. (b) Input from purchaser with special designation (1) In general The Secretary of Defense shall ensure that, in the development of acquisition strategies for purchasers with a special designation under subsection (a), the purchaser with a special designation is provided an opportunity to provide input with respect to risk tolerance. (2) Information sharing In carrying out paragraph (1), the Secretary of Defense shall ensure that a purchaser with a special designation is briefed on risks identified, alternate approaches that may be taken, and the schedule, cost, and capability tradeoffs associated with such alternate approaches. (3) Inclusion in briefing Purchaser input gathered under this paragraph shall be included in the briefing required by subsection (a)(2)(C) and appropriately weighed in making a final decision with respect to the appropriate acquisition approach. (c) Agreements with manufacturers (1) In general A United States prime contractor may enter into a covered agreement with a manufacturer to begin the process of acquiring long-lead Government-furnished equipment, including sensitive and closely controlled items such as communications security devices, military grade GPS, and anti-spoofing devices, on forecast prior to the execution of a signed commercial contract or issuance of a letter of offer and acceptance. (2) Covered agreement defined In this subsection, the term covered agreement means an agreement between a United States prime contractor and a manufacturer pursuant to which— (A) the prime contractor, in anticipation of a foreign military sale, contracts for the production by the manufacturer of one or more articles that will be supplied to the prime contractor as government-furnished equipment prior to execution of a signed commercial contract or issuance of a letter of offer and acceptance in connection with such sale; (B) the parties agree to the allocation of risks, obligations, profits, and costs in the event the anticipated foreign military sale does not occur, including whether the articles manufactured under the agreement are retained by the manufacturer for eventual supply to the prime contractor or a third party in connection with a future foreign military sale or other transaction; and (C) the United States Government assumes no liability with respect to either party in the event the anticipated foreign military sale does not occur. (3) Department of Defense policy (A) In general The Secretary of Defense shall implement policies, and ensure that the head of each military department implements policies, that allow United States prime contractors to enter into covered agreements with manufacturers of Government-furnished equipment. (B) Elements The policies required by subparagraph (A) shall require that— (i) United States prime contractors shall be responsible for— (I) negotiating directly with the manufacturer of Government-furnished equipment, including with respect to the terms and conditions described in paragraph (2)(B); and (II) providing any payment to such manufacturer; and (ii) transfer of Government-furnished equipment from such manufacturer to the primary contractor shall not occur until the date on which a letter of offer and acceptance or commercial contract is produced. (4) Rule of construction Nothing in this subsection shall be construed as authorizing, requiring, or providing for the United States Government to assume any liability or other financial responsibility with respect to a covered agreement. (d) Purchaser with a special designation defined In this section, the term purchaser with a special designation means Israel, Japan, the Republic of Korea, New Zealand, the Philippines, Thailand, Taiwan, member countries of the North Atlantic Treaty Organization, major defense partners, major security partners, and eligible purchasers that are members of the national technology and industrial base.