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H.R. 5580 (96th): North Atlantic Treaty Organization Mutual Support Act of 1979


The text of the bill below is as of Aug 4, 1980 (Passed Congress).


94 STAT. 1016                     PUBLIC LAW 96-323—AUG. 4, 1980

                 Public Law 96-323
                 96th Congress
                                                      A n Act
  Aug. 4,1980    rj,^ amend title 10, United States Code, to authorize the Secretary of Defense to
  [H.R. 5580]       enter into certain agreements to further the readiness of the nulitaiy forces of
                    the North Atlantic Treaty Organization.

                   Be it enacted by the Senate and House of Rmresentatives of the
North Atlantic   United States ofAmerica in Conjgress assembled, That this Act may be
Treaty           cited as the "North Atlantic Treaty Organization Mutual Support
MKfsup^rt        Act of 1979".
Act of 1979.        SEC. 2. (a) Title 10, United States Code, is amended by inserting
10 use 2321      after chapter 137 the following new chapter:
note.
                 "CHAPTER 138—NORTH ATLANTIC TREATY ORGANIZATION
                    ACQUISITION AND CROSS-SERVICING AGREEMENTS
                 "Sec.
                 "2321. Authority to acquire logistic support, supplies, and services for United States
                          armed forces in Europe.
                 "2322. Cross-servicing agreements.
                 "2323. Law applicable to acquisition and cross-servicing agreements.
                 "2324. Methods of pajmient for acquisitions and transfers by the United States.
                 "2325. Liquidation of accrued credits and liabilities.
                 "2326. Crediting of receipts.
                 "2327. Limitation on amounts that may be obligated or accrued by the United
                          States.
                 "2328. Inventories of supplies not to be increased.
                 "2329. Regulations.
                 "2330. Annual reports.
                 "2331. Definitions.
10 use 2321.      "§2321. Authority to acquire logistic support, supplies, and serv-
                             ices for United States armed forces in Europe
                    "Subject to section 2323 of this title and subject to the availability
                 of appropriations, the Secretary of Defense may acquire from the
                 Governments of North Atlantic Treatjr Organization countries and
                 from North Atlantic Treaty Organization subsidiary bodies logistic
                 support, suppUes, and services for elements of the armed forces
                 deployed in Europe and adjacent waters.
10 use 2322.      Ǥ 2322. Cross-servicing agreements
                    "Subject to section 2323 of this title and to the availability of
                 appropriations, and after consultation with the Secretary of State,
                 the Secretary of Defense may enter into agreements with the Govern-
                 ment of any North Atlantic Treaty Organization country and with
                 any North Atlantic Treaty Organization subsidiary body under
                 which the United States agrees to provide logistic support, supplies,
                 and services to military forces of such country or subsidiary body
                 deployed in Europe and adjacent waters in return for the reciprocal
                 provision of logistic support, supplies, and services by such coimtry or
                 subsidiary body to elements of the armed forces deployed in Europe
                 and ac^acent waters.

PUBLIC LAW 96-323—AUG. 4, 1980 94 STAT. 1017 "§2323. Law applicable to acquisition and cross-servicing agree- 10 use 2323. ments "(a) Except as provided in subsection (b), acquisition of logistic support, supplies, and services under section 2321 of this title and agreements enteredinto under section 2322 of this title shall be made in accordance with chapter 137 of this title and the provisions of this 10 u s e 2301 et chapter. seq. "(b) Sections 2207,2304(g), 2306(a), 2306(b), 2306(e), 2306(f), and 2313 of this title, section 3741 of the Revised Statutes (41 U.S.C. 22), and 10 u s e 2207, section 719 of the Defense Production Act of 1950 (50 U.S.C. App. 2304, 2306, 2313. 2168) shall not apply to acquisitions made under the authority of section 2321 of this title or to agreements entered into under section 2322 of this title. "§2324. Methods of payment for acquisitions and transfers by the 10 use 2324. United States "(a) Logistics support, supplies, and services may be acquired or transferred by the United States under the authority of this chapter on a reimbursement basis or by replacement-in-kind or exchange of supplies or services of an identical or substantially identical nature. "(b)(1) In entering into agreements with the Government of Reciprocal another North Atlantic Treaty Organization country for the acquisi- pricing principles. tion or transfer of logistic support, supplies, and services on a reim- bursement basis, the Secretary of Defense shall negotiate for adoption of the following pricing principles for reciprocal application: "(A) The price charged by a supplying country for logistics support, supplies, and services specifically procured by the sup- plying country from its contractors for a recipient country shall be no less favorable than the price for identical items or services charged by such contractors to the armed forces of the supplying country, taking into account price differentials due to delivery schedules, points of delivery, and other similar considerations. "(B) The price charged a recipient country for supplies fur- nished by a supplying country from its inventory, and the price charged a recipient country for logistics support and services furnished by the officers, employees, or governmental agencies of a supplying country, shall be the same as the price charged for identical supplies, support, or services acquired by an armed force of the supplying country from such governmental sources. "(2) To the extent that the Secretary of Defense is unable to obtain mutual acceptance by the other country involved of the reciprocal pricing principles for reimbursable transactions set forth in para- graph (1)— "(A) the United States may not acquire from such country any logistic support, supply, or service not governed by such recipro- cal pricing principles unless the United States forces commander acquiring such support, supply, or service determines (after price analysis) that the price thereof is fair and reasonable; and "(B) transfers by the United States to such country under this Act of any logistic support, supply, or service that is not governed by such reciprocal pricing principles shall be subject to the pricing provisions of the Arms Export Control Act (22 U.S.C. 2751 et seq.). "(3) To the extent that indirect costs (including charges for plant Waiver, and production equipment), administrative surcharges, and contract administration costs with respect to any North Atlantic Treaty Organization country are not waived by operation of the reciprocal
94 STAT. 1018 PUBLIC LAW 96-323—AUG. 4, 1980 pricing principles of paragraph (1), the Secretary of Defense may, on a reciprocal basis, agree to waive such costs. "(4) The pricing principles set forth in paragraph (2) and the waiver authority provided in paragr^h (3) shall also apply to a^eements with North Atlantic Treaty Organization subsidiary bodies under this chapter. 10 u s e 2325. *'§2325. Liquidation of accrued credits and liabilities ''Credits and liabilities of the United States accrued as a result of acquisitions and transfers of logistic support, supplies, and services unaer the authority of this chapter shall oe liquidated not less often than once every three months by direct payment to the entity supplying such support, supplies, or services by the entity receiving such support, supplies, or services. 10 u s e 2326. "§2326. Crediting of receipts "Any receipt of the United States as a result of an agreement entered into under this chapter shall be credited to applicable appropriations, accounts, and funds of the Department of Defense. 10 u s e 2327. "§2327. Limitation on amounts that may be obligated or accrued by the United States Liabilities. "(a) Except during a period of active hostilities involving the North Atlantic Treaty Organization, the total amount of reimbursable liabilities that the United States may accrue under this chapter (before the computation of ofTsetting balances) may not exceed $100,000,000 in any fiscal year, and of such amount not more than $25,000,000 in liabilities may be accrued for the acquisition of supplies (other than petroleum, oils, and lubricants). Credits. (b) Except during a period of active hostilities involving the North Atlantic Treaty Oi^anization, the total amount of reimbursable credits that the United States may accrue under this chapter Oi^efore the computation of ofTsetting balances) may not exceed $100,000,000 in any fiscal year. 10 u s e 2328. "§2328. Inventories of supplies not to be increased "Inventories of supplies for elements of the armed forces may not be increased for the purpose of transferring supplies imder the authority of this Act to military forces of any North Atlantic Treaty Organization coimtry or any North Atlantic Treaty Organization subsidiary body. 10 u s e 2329. "§2329. Regulations Copies, "The Secretary of Defense shall prescribe regulations to implement transmittal to this chapter and shall, not later than sixty days before the effective Congress. date of such regulations, transmit copies of such regulations to the Congress. No agreement to make an acquisition or transfer under the authority provided by this chapter may be entered into until such regulations take effect. 10 u s e 2330. "§2330. Annual reports Submittal to "The Secretary of Defense shall submit to the Congress not later Congress. than February 1 of each year a report containing— "(1) a description of each agreement entered into under the authority of this chapter that was in effect during the fiscal year preceding the fiscal year in which such report is submitted; "(2) a report of the dollar value of each reimbursable acquisi- tion or transfer of logistic support, supplies, or services by the
PUBLIC LAW 96-323—AUG. 4, 1980 94 STAT. 1019 United States (by appropriation, account, or fiind) during such fiscal year under each such agreement; "(3) a report of nonreimbursable acquisitions and transfers of logistic support and services by the United States Oby appropri- ation, account, and fund) during such fiscal year under each such agreement; and ''(4) a description of each agreement entered into (or expected to be entered into) under the authority of this chapter that is expected to be in effect during the fiscal year in which such report is submitted, together with a report of the estimated total dollar value of acquisitions and transfers by the United States (by appropriation, account, or fund) expected to be made during such fiscal year under each such agreement. 10 u s e 2331. ''§2331. Definitions "In this chapter: "(1) 'Logistic support, supplies, and services' means food, billet- ing, transportation, petroleum, oils, lubricants, clothing, commu- nications services, medical services, ammunition, base oper- ations support (and construction incident to base operations support), storage services, use of facilities, training services, spare parts and components, repair and maintenance services, and port services. "(2) 'North Atlantic Treaty Organization subsidiary bodies' means— "(A) any oiganization within the meaning of the term 'subsidiary bodies' in article I of the multilateral treaty on the Status of the North Atlantic Treaty Organisation, Na- tional Representatives and International Staff, signed at Ottawa on September 20,1951 (TIAS 2992; 5 UST1087); and "(B) any international military headquarters or organiza- tion to which the Protocol on the Status of International Military Headquarters Set Up Pursuant to the North Atlan- tic Treaty, signed at Paris on August 28,1952 (TIAS 2978; 5 UST870),appUes.". (Jb) The tables of chapters at the beginning of subtitle A, and at the beginning of i)art IV of subtitle A, of title 10, United States Code, are amended by inserting after the item relating to chapter 137 the following new item: "138. North Atlantic Treaty Oiganization Acquisition and Cross- Servicing Agreements 2321". Approved August 4, 1980. LEGISLATIVE HISTORY: HOUSE REPORTS: No. 96-612, Pt. 1 (Coram, on Armed Services) and Pt. 2 (Coram, on Foreign Affairs). SENATE REPORTS: No. 96-795 (Comra. on Armed Services) and No. 96-842 (Coram, on Foreign Relations). CONGRESSIONAL RECORD: Vol. 125 (1979): Dec. 3, considered and passed House. Vol. 126 (1980): July 21, considered and passed Senate.