S.Amdt. 360

SA 360. Mr. SULLIVAN submitted an amendment intended to be proposed
by him to the bill S. 2226, to authorize appropriations for fiscal year
2024 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 1299K and insert the following:

SEC. 1299K. MODIFICATION OF FOREIGN MILITARY SALES
PROCESSING.

(a) Deadlines.--
(1) Responses.--
(A) Letters of request for pricing and availability.--The
Secretary of Defense shall ensure that an eligible foreign
purchaser that has submitted a letter of request for pricing
and availability data receives a response to the letter not
later than 45 days after the date on which the letter is
received by a United States security cooperation
organization, the Defense Security Cooperation Agency, or
other implementing agency.
(B) Letters of request for letters of offer and
acceptance.--The Secretary of Defense and the Secretary of
State shall ensure that an eligible foreign purchaser that
has submitted a letter of request for a letter of offer and
acceptance receives a response--
(i) in the case of a letter of request for a blanket-order
letter of offer and acceptance, cooperative logistics supply
support arrangements, or associated amendments and
modifications, not later than 45 days after the date on which
the letter of request is received by a United States security
cooperation organization, the Defense Security Cooperation
Agency, or other implementing agency;
(ii) in the case of a letter of request for a defined-order
letter of offer and acceptance or associated amendments and
modifications, not later than 100 days after such date; and
(iii) in the case of a letter of request for a defined-
order letter of offer and acceptance or associated amendments
that involve extenuating factors, as approved by the Director
of the Defense Security Cooperation Agency, not later than
150 days after such date.
(C) Waiver.--The Secretary of Defense may waive
subparagraphs (A) and (B) if--
(i) such a waiver is in the national security interests of
the United States; and
(ii) not later than 5 days after exercising such waiver
authority, the Secretary provides to the Committee on Foreign
Relations of the Senate and the Committee on Foreign Affairs
of the House of Representatives notice of the exercise of
such authority, including an explanation of the one or more
reasons for failing to meet the applicable deadline.
(2) Expansion of country prioritization.--With respect to
foreign military sales to member countries of the North
Atlantic Treaty Organization, major non-NATO allies, major
defense partners, and major security partners, the Secretary
of Defense may assign a Defense Priorities and Allocations
System order rating of DX (within the meaning of section
700.11 of title 15, Code of Federal Regulations (as in effect
on the date of the enactment of this Act)).
(3) Definitions.--In this subsection:

[[Page S2538]]

(A) Blanket-order letter of offer and acceptance.--The term
``blanket-order letter of offer and acceptance'' means an
agreement between an eligible foreign purchaser and the
United States Government for a specific category of items or
services (including training) that--
(i) does not include a definitive listing of items or
quantities; and
(ii) specifies a maximum dollar amount against which orders
for defense articles and services may be placed.
(B) Cooperative logistics supply support arrangement.--The
term ``cooperative logistics supply support arrangement''
means a military logistics support arrangement designed to
provide responsive and continuous supply support at the depot
level for United States-made military materiel possessed by
foreign countries or international organizations.
(C) Defined-order letter of offer and acceptance.--The term
``defined-order letter of offer and acceptance'' means a
foreign military sales case characterized by an order for a
specific defense article or service that is separately
identified as a line item on a letter of offer and
acceptance.
(D) Implementing agency.--The term ``implementing agency''
means the military department or defense agency assigned, by
the Director of the Defense Security Cooperation Agency, the
responsibilities of--
(i) preparing a letter of offer and acceptance;
(ii) implementing a foreign military sales case; and
(iii) carrying out the overall management of the activities
that--

(I) will result in the delivery of the defense articles or
services set forth in the letter of offer and acceptance; and
(II) was accepted by an eligible foreign purchaser.

(E) Letter of request.--The term ``letter of request''--
(i) means a written document--

(I) submitted to a United States security cooperation
organization, the Defense Security Cooperation Agency, or an
implementing agency by an eligible foreign purchaser for the
purpose of requesting to purchase or otherwise obtain a
United States defense article or defense service through the
foreign military sales process; and
(II) that contains all relevant information in such form as
may be required by the Secretary of Defense; and

(ii) includes--

(I) a formal letter;
(II) an e-mail;
(III) signed meeting minutes from a recognized official of
the government of an eligible foreign purchaser; and
(IV) any other form of written document, as determined by
the Secretary of Defense or the Director of the Defense
Security Cooperation Agency.

(F) Major defense partner.--The term ``major defense
partner'' means--
(i) India; and
(ii) any other country, as designated by the Secretary of
Defense.
(G) Major non-nato ally.--The term ``major non-NATO
ally''--
(i) has the meaning given the term in section 644 of the
Foreign Assistance Act of 1961 (22 U.S.C. 2403)); and
(ii) includes Taiwan, as required by section 1206 of the
Security Assistance Act of 2002 (Public Law 107-228; 22U.S.C.
2321k note).
(H) Major security partner.--The term ``major security
partner'' means--
(i) the United Arab Emirates;
(ii) Bahrain;
(iii) Saudi Arabia; and
(iv) any other country, as designated by the Secretary of
Defense, in consultation with the Secretary of State and the
Director of National Intelligence.
(b) Limitation on Period of Department of State
Consultation With Respect to Proposed Foreign Military Sales
to Certain Countries.--
(1) In general.--Any period of consultation between the
Secretary of State and Congress with respect to a proposed
foreign military sale to Israel, Japan, the Republic of
Korea, New Zealand, Australia, or an eligible foreign
purchaser that is a member of the North Atlantic Treaty
Organization may not be longer than 10 days.
(2) Notification.--In the case of a proposed foreign
military sale described in paragraph (1) for which the 10-day
period under that paragraph has elapsed without objection
from the Committee on Foreign Relations of the Senate or the
Committee on Foreign Affairs of the House of Representatives,
such sale shall be considered approved for formal
notification under section 36(c)(2) of the Arms Export
Control Act (22 U.S.C. 2776(c)(2)).
(c) Limitations on Price Modifications for Sale of Defense
Articles or Services.--
(1) In general.--With respect to the dollar amount of an
offer to sell or the sale of United States defense articles
or services developed by a military department and the
Defense Security Cooperation Agency for purposes of the
foreign military sales process documented in a letter of
offer to an eligible foreign purchaser and submitted to the
Secretary of State for review, the Secretary of Defense may
subsequently direct an increase of--
(A) not more than 20 percent of such dollar amount to
account for supply chain disruptions, including the
unavailability of materials and inflation; and
(B) not less than 20 percent of such dollar amount, subject
to review by the Foreign Military Sales Cost Review Board.
(2) Foreign military sales cost review board.--
(A) Establishment.--The Secretary of Defense shall
establish within the Department of Defense a board, to be
known as the ``Foreign Military Sales Cost Review Board'' (in
this paragraph referred to as the ``Board'')--
(i) to review requests by the Director of the Defense
Security Cooperation Agency for an increase in the dollar
amount described in paragraph (1) that is more than 20
percent of the dollar amount documented in a letter of offer
and acceptance to an eligible foreign purchaser and submitted
to the Secretary of State for review; and
(ii) to make recommendations to the Secretary of Defense as
to whether such an increase in such dollar amount should be
directed, and if so, the recommended amount of such increase
to be implemented.
(B) Consultation.--The Board shall conduct reviews under
subparagraph (A)(i) in consultation with the eligible foreign
purchaser concerned.
(3) Justification for price increase.--In the case of an
increase in the dollar amount described in paragraph (1), the
Secretary of Defense shall provide to the eligible foreign
purchaser and the primary defense industry provider concerned
documentation justifying such increase.
(4) Report.--Beginning on December 15, 2025, and annually
thereafter, the Under Secretary of Defense for Acquisition
and Sustainment and the Under Secretary of Defense for Policy
shall submit a report, and provide a briefing, to the
Committees on Armed Services of the Senate and the House of
Representatives on each request for a dollar amount increase
reviewed by the Board during the fiscal year ending on
September 30 of the applicable year.
(d) Clarification With Respect to Special Defense
Acquisition Fund.--Section 51 of the Arms Export Control Act
(22 U.S.C. 2795) is amended by adding at the end the
following new subsection:
``(d) Decisions with respect to the use of a portion of the
Fund for the acquisition of defense articles and defense
services in anticipation of their transfer pursuant to this
Act, the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et
seq.), or as otherwise authorized by law, to eligible foreign
countries and international organizations shall be made
independently of acquisition decisions relating to the
requirements of the United States Armed Forces.''.
(e) Expedited Deliveries to Priority Foreign Purchasers.--
(1) Acquisition strategies.--
(A) In general.--With respect to a foreign country or
capability identified by the Secretary of Defense as a
regional or country-level foreign defense capability-building
priority, the Secretary shall establish a requirement that,
in developing letters of offer and acceptance, the
acquisition program office of each military department shall
develop, at program inception--
(i) an acquisition strategy that documents the standard
acquisition path; and
(ii) an acquisition strategy that documents the fastest
acquisition path.
(B) Associated risk.--In developing each acquisition
strategy required by clauses (i) and (ii) of subparagraph
(A), the acquisition program office of the military
department concerned shall--
(i) measure, and justify with respect to the urgency of
delivering a capability in full or in phases, the associated
risk, risk mitigation, and risk cost; and
(ii) provide, in coordination with the appropriate regional
directorate of the Office of the Under Secretary of Defense
for Policy and the Director of the Defense Security
Cooperation Agency, to the acquisition leadership of such
military department a briefing on the results of the
measurements under clause (i).
(C) Decision.--Not later than 30 days after the date of a
briefing under subparagraph (B)(ii), the acquisition
leadership of the military department concerned shall issue a
decision with respect to the acquisition strategy selected.
(2) Input from eligible foreign purchaser.--
(A) In general.--The Secretary of Defense shall ensure
that, in the development of acquisition strategies for
priority countries and capabilities under paragraph (1), the
foreign purchaser is provided an opportunity to provide input
with respect to risk tolerance.
(B) Information sharing.--In carrying out subparagraph (A),
the Secretary of Defense shall ensure that a foreign
purchaser is briefed on risks identified, alternate
approaches that may be taken, and the schedule, cost, and
capability tradeoffs associated with such alternate
approaches.
(C) Inclusion in briefing.--Foreign purchaser input
gathered under this paragraph shall be included in the
briefing required by paragraph (1)(B)(ii) and appropriately
weighted in making final a decision with respect to the
appropriate acquisition approach.
(3) Agreements with manufacturers.--
(A) In general.--The Secretary of Defense shall allow
United States companies to enter into agreements with
manufacturers to begin the process of acquiring long-lead
Government-furnished equipment on forecast.
(B) High-demand systems.--United States companies that
produce high-demand systems shall purchase certain sensitive
and closely controlled items, such as communications security
devices, military grade

[[Page S2539]]

GPS, and anti-spoofing devices, as Government-furnished
equipment.
(C) Department of defense policy.--
(i) In general.--The Secretary of Defense shall implement
policies, and ensure that the head of each military
department implements policies, that allow United States
companies to enter into agreements with manufacturers of
Government-furnished equipment so that production on long-
lead Government-furnished equipment may begin before the
execution of a signed commercial contract or the issuance of
a letter of offer and acceptance.
(ii) Elements.--The policies required by clause (i) shall
require that--

(I) United States companies shall--

(aa) before entering into an agreement under this
paragraph, obtain the concurrence or approval of the head of
the military department concerned to do so; and
(bb) be responsible for--
(AA) negotiating directly with the manufacturer of
Government-furnished equipment; and
(BB) providing any payment to such manufacturer; and

(II) transfer of Government-furnished equipment from such
manufacturer to the purchasing company shall not occur until
the date on which a letter of offer and acceptance or
commercial contract is produced.

(D) Recovery of costs for certain sales.--In the case of
defense sales, purchasing companies may recoup costs
associated with ordering the Government-furnished equipment
described in the applicable letter of offer and acceptance.
(f) Modifications to Reporting and Notification
Requirements for Foreign Military Sales.--Section 36 of the
Arms Export Control Act (22 U.S.C. 2776) is amended--
(1) in subsection (a)--
(A) in paragraph (11)(D), by striking ``; and'' and
inserting a semicolon;
(B) in paragraph (12), by striking the period at the end
and inserting ``; and''; and
(C) by inserting after paragraph (12) the following new
paragraph:
``(13) with respect to each letter of offer listed under
paragraph (1), the date on which the corresponding letter of
request for a letter of offer and acceptance was
submitted.'';
(2) in subsection (b), by adding at the end the following
new paragraph:
``(7) In addition to the other information required to be
contained in a certification submitted to Congress under this
subsection, each such certification shall include the date on
which the corresponding letter of request for a letter of
offer and acceptance was submitted.''; and
(3) in subsection (c), by adding at the end the following
new paragraph:
``(7) In addition to the other information required to be
contained in a certification submitted to Congress under this
subsection, each such certification shall include the date on
which the corresponding letter of request for a letter of
offer and acceptance was submitted.''.
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