[Congressional Record Volume 170, Number 114 (Wednesday, July 10, 2024)]
[Senate]
[Page S4405]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2162. Mr. SULLIVAN submitted an amendment intended to be proposed 
by him to the bill S. 4638, to authorize appropriations for fiscal year 
2025 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of subtitle F of title XII, add the following:

     SEC. 1291. AGREEMENTS WITH MANUFACTURERS FOR ACQUISITION OF 
                   LONG-LEAD GOVERNMENT-FURNISHED EQUIPMENT UNDER 
                   FOREIGN MILITARY SALES PROCESS.

       (a) In General.--Notwithstanding any other provision of 
     law, including section 30 of the Arms Export Control Act (22 
     U.S.C. 2770), 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.
       (b) Covered Agreement Defined.--In this paragraph, the term 
     ``covered agreement'' means an agreement between a United 
     States prime contractor and a manufacturer pursuant to 
     which--
       (1) 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;
       (2) 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
       (3) the United States Government assumes no liability with 
     respect to either party in the event the anticipated foreign 
     military sale does not occur.
       (c) Department of Defense Policy.--
       (1) 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.
       (2) Elements.--The policies required by paragraph (1) shall 
     require that--
       (A) 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 subsection (b)(2); and
       (ii) providing any payment to such manufacturer; and
       (B) 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.
       (d) Rule of Construction.--Nothing in this section 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.
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