10 U.S.C. § 2342 — Cross-servicing agreements

**(a)** (1) Subject to [section 2343 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section2343&num=0&edition=prelim) and to the availability of appropriations, and after consultation with the Secretary of State, the Secretary of Defense may enter into an agreement described in paragraph (2) with any of the following: (A) The government of a North Atlantic Treaty Organization country. (B) A subsidiary body of the North Atlantic Treaty Organization. (C) The United Nations Organization or any regional international organization. (D) The government of a country not a member of the North Atlantic Treaty Organization but which is designated by the Secretary of Defense, subject to the limitations prescribed in subsection (b), as a government with which the Secretary may enter into agreements under this section. (2) An agreement referred to in paragraph (1) is an agreement under which the United States agrees to provide logistic support, supplies, and services to military forces of a country or organization referred to in paragraph (1) in return for the reciprocal provisions of logistic support, supplies, and services by such government or organization to elements of the armed forces. **(b)** (1) The Secretary of Defense may not designate a country for an agreement under this section unless— (A) the Secretary, after consultation with the Secretary of State, determines that the designation of such country for such purpose is in the interest of the national security of the United States; and (B) in the case of a country that is not a member of the North Atlantic Treaty Organization, the Secretary submits to the appropriate committees of Congress notice of the intended designation not less than 30 days before the date on which such country is designated by the Secretary under subsection (a). (2) In the case of a country that is not a member of the North Atlantic Treaty Organization, the Secretary of Defense may not enter into an agreement under this section unless the Secretary submits to the appropriate committees of Congress a notice of intent to enter into such an agreement not less than 30 days before the date on which the Secretary enters into the agreement. **(c)** The Secretary of Defense may not use the authority of this subchapter to procure from any foreign government or international organization any goods or services reasonably available from United States commercial sources. **(d)** The Secretary of Defense may not use an agreement with any government or an organization described in subsection (a)(1) to facilitate the transfer of logistic support, supplies, and services to any country or organization with which the Secretary has not signed an agreement described in subsection (a)(2). **(e)** An agreement described in subsection (a)(2) may not provide or otherwise constitute a commitment for the introduction of the armed forces into hostilities. **(f)** Not later than 30 days after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2020, the Secretary of Defense shall designate an existing senior civilian or military official who shall have primary responsibility for— (1) accounting for logistic support, supplies, and services received or provided under acquisition and cross-servicing agreements; (2) ensuring consistent standards and guidance to the armed forces and combatant commands in executing acquisition and cross-servicing agreements; (3) overseeing and monitoring the implementation of acquisition and cross-servicing agreements in coordination with the Under Secretary of Defense for Policy; and (4) such other responsibilities as may be prescribed by the Secretary. **(g)** (1) Not later than 90 days after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2020, the Secretary of Defense shall prescribe regulations to ensure that— (A) contracts entered into under this subchapter are free from self-dealing, bribery, and conflict of interests; (B) adequate processes and controls are in place to provide for the accurate accounting of logistic support, supplies, and services received or provided under the authority of this subchapter; and (C) personnel responsible for accounting for logistic support, supplies, and services received or provided under such authority are fully trained and aware of such responsibilities. (2) (A) Not later than 270 days after the issuance of the regulations under paragraph (1), the Comptroller General of the United States shall conduct a review of the implementation by the Secretary of such regulations. (B) The review conducted under subparagraph (A) shall— (i) assess the effectiveness of such regulations and the implementation of such regulations to ensure the effective management and oversight of an agreement under subsection (a)(1); and (ii) include any other matter the Comptroller General considers relevant. **(h)** Not later than January 15 each year, the Secretary of Defense shall submit to the appropriate committees of Congress a report on acquisition and cross-servicing activities that sets forth, in detail, the following: (1) A list of agreements that have entered into force or were applied provisionally pursuant to subsection (a)(1) during the preceding fiscal year. (2) The date on which each agreement listed under paragraph (1) was signed, and, in the case of an agreement with a country that is not a member of the North Atlantic Treaty Organization, the dates on which the Secretary notified Congress— (A) pursuant to subsection (b)(1)(B) of the designation of such country under subsection (a); and (B) pursuant to subsection (b)(2) of the intent of the Secretary to enter into the agreement. (3) The class of supply, total dollar amount, the amount collected, and the outstanding balance of logistic support, supplies, and services provided during the preceding fiscal year under each such agreement. (4) The class of supply, total dollar amount, the amount collected, and the outstanding balance of logistic support, supplies, and services received during the preceding fiscal year under each such agreement. (5) With respect to any transaction for logistic support, supplies, and services that has not been reconciled more than one year after the date on which the transaction occurred, a description of the transaction that includes the following: (A) The date on which the transaction occurred. (B) The country or organization to which logistic support, supplies, and services were provided. (C) The value of the transaction. (6) An explanation of any waiver granted under section 2347(c) during the preceding fiscal year, including an identification of the relevant contingency operation or non-combat operation. **(i)** In this section, the term “appropriate committees of Congress” means— (1) the Committee on Armed Services and the Committee on Foreign Relations of the Senate; and (2) the Committee on Armed Services and the Committee on Foreign Affairs of the House of Representatives.