S.Amdt. 2008

SA 2008. Mr. GRAHAM submitted an amendment intended to be proposed to
amendment SA 1463 proposed by Mr. McCain to the bill H.R. 1735, to
authorize appropriations for fiscal year 2016 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:

Strike section 1645 and insert the following:

SEC. 1645. ISRAELI COOPERATIVE MISSILE DEFENSE PROGRAM
CODEVELOPMENT AND POTENTIAL COPRODUCTION.

(a) In General.--Except as otherwise provided in this
section, of the amount authorized to be appropriated for
fiscal year 2016 for Procurement, Defense-wide, and available
for the Missile Defense Agency, $150,000,000 may be provided
to the Government of Israel to procure the David's Sling
Weapon System

[[Page S4113]]

and $15,000,000 for the Arrow 3 Upper Tier Interceptor
Program, including for co-production of parts and components
in the United States by United States industry.
(b) Disbursement.--
(1) In general.--Except as provided in paragraph (2),
following successful completion of milestones that inform
production decisions and production readiness reviews in the
research, development, and technology agreements for the
David's Sling Weapon System and the Arrow 3 Upper Tier
Development Program, the Director of the Missile Defense
Agency may disburse amounts available pursuant to subsection
(a) on the basis of what is mutually agreed to by the United
States and Israel, on or after the date that the United
States enters into a bilateral agreement with the Government
of Israel that, as determined by the Director, accomplishes
the following:
(A) Establishes the terms of co-production of parts and
components of the respective systems--
(i) in a manner that will minimize non-recurring
engineering and facilitization expenses; and
(ii) that ensures that an optimal production share is
carried out by United States persons.
(B) Ensures that, in the case of coproduction of the
David's Sling Weapon System, a study is jointly conduced by
the Israel Missile Defense Organization and the Missile
Defense Agency of the United States as follows:
(i) The purpose of the study shall be to determine the most
effective and efficient ways to reach a target of 50 percent
production in the United States by the end of the multi-year
coproduction plan.
(ii) The study shall identify and assess, with respect to
the process of moving production to the United States--

(I) the best opportunities for United States contractors;
(II) cost, schedule, and operational risks; and
(III) imports required.

(iii) The study shall be carried out so that the results
will inform future negotiations on the amendments to the
bilateral agreement with regard to United States work share.
(C) Establishes a plan for procurement, using amounts
disbursed under this subsection and based on the Israeli
requirement for the number of interceptors and batteries of
the respective systems that will be procured.
(D) Allows the Director of the Missile Defense Agency and
the Under Secretary of Defense for Acquisition, Technology
and Logistics to establish technical milestones for co-
production and procurement of the respective systems.
(E) Establishes joint approval processes for third party
sales of such systems.
(2) Exception for long lead time and critical items.--(A)
The Director may make a disbursement under paragraph (1)
before the date that the United States enters into a
bilateral agreement described in such paragraph for long lead
time and critical procurement items and activities, not to
exceed $90,000,000 for the David's Sling Weapon System and
$15,000,000 for the Arrow 3 Upper Tier Interceptor Program.
(B) Amounts disbursed under subparagraph (A) shall be
considered amounts disbursed under a bilateral agreement
described in paragraph (1).
______