S.Amdt. 2162

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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