Co-development and co-production program with Germany for certain munitions

(a) In general Not later than March 1, 2027, the Secretary of Defense and the Secretary of State shall seek to engage with appropriate officials of Germany in a joint program for the purpose of enabling the co-development and co-production of air defense and air-to-air munitions capabilities, including the Patriot surface-to-air missile system, the Advanced Medium-Range Air-to-Air Missile, and the AIM–9 Sidewinder missile, for the Armed Forces of the United States and the Bundeswehr of Germany, consistent with applicable United States law and existing bilateral defense cooperation agreements. (b) Use of authorities (1) In general In carrying out a joint program under subsection (a), the Secretary of Defense, in coordination with the Secretary of State, may use the authorities under title 10, United States Code, and other applicable statutory authorities available to the Secretary of Defense. (2) Reciprocal procurement In carrying out paragraph (1), the Secretary of Defense, in coordination with the Secretary of State, shall leverage the existing United States-Germany Reciprocal Defense Procurement Memorandum of Understanding to the maximum extent practicable to facilitate contracting arrangements, quality assurance, and supply chain integration. (3) Co-development and co-production agreements The Secretary of Defense, with the concurrence of the Secretary of State, may enter into co-development agreements, co-production arrangements, and project agreements with Germany (in accordance with existing authorities for such agreements and arrangements) to carry out the joint program under subsection (a), including arrangements for— (A) joint research and development of next-generation variants of covered munitions systems; (B) the establishment of co-production facilities in the United States or Germany, or both; (C) technology transfer, consistent with applicable law, including the International Traffic in Arms Regulations; and (D) specialization to optimize defense industrial strengths and avoid duplication. (c) Briefing (1) In general Not later than 180 days after the date of the enactment of this Act, and annually thereafter through 2030, the Secretary of Defense and the Secretary of State shall provide the appropriate committees of Congress with a briefing on the joint program under subsection (a). (2) Elements Each briefing required by paragraph (1) shall include, for the period covered by the briefing, the following: (A) A summary of engagements under subsection (a). (B) A description of activities undertaken by the United States and Germany to enable co-development and co-production of munitions systems described in subsection (a). (C) A description of progress made in finalizing defense trade foundational agreements between the United States and Germany, including— (i) implementation and use of the existing Reciprocal Defense Procurement Memorandum of Understanding; (ii) a security of supply agreement for such munitions systems; (iii) a general security of military information agreement; and (iv) any cyber maturity model certification or equivalent industrial security arrangements. (D) A detailed assessment of the use of exemption and other authorities under, and any useful modifications that should be made to, the International Traffic in Arms Regulations and related statutory authorities that would support the expansion of co-development and co-production of munitions systems with Germany, including— (i) an assessment of the feasibility and advisability of seeking a Treaty on Defense Trade Cooperation with Germany, or an equivalent bilateral framework, to streamline technology transfer approvals for such munitions systems; and (ii) a description of any interagency coordination actions taken or planned to synchronize positions regarding technology transfer to Germany for such munitions systems. (E) An identification of the additional resources or authorities necessary to enable the fielding of munitions capabilities described in subsection (a). (F) Any other matter the Secretary of Defense and the Secretary of State consider appropriate. (d) Additional partners The President is authorized to use the authorities provided in this section to encourage enhanced co-development and co-production with other European security partners of the United States. (e) Appropriate committees of Congress defined In this section, the term appropriate committees of Congress means— (1) the Committee on Armed Services, the Committee on Appropriations, and the Committee on Foreign Relations of the Senate; and (2) the Committee on Armed Services, the Committee on Appropriations, and the Committee on Foreign Affairs of the House of Representatives.