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22 U.S.C. § 2769 — Foreign military construction sales
Federal law — U.S. Code and appendices · legal_authorities
The President may sell design and construction services to any eligible foreign country or international organization if such country or international organization agrees to pay in United States dollars not less than the full cost to the United States Government of furnishing such services. Payment shall be made to the United States Government in advance of the performance of such services by officers or employees of the United States Government. The President may, without requirement for charge to any appropriation or contract authorization otherwise provided, enter into contracts for the procurement of design and construction services for sale under this section if such country or international organization provides the United States Government with a dependable undertaking (1) to pay the full amount of such contract which will assure the United States Government against any loss on the contract, and (2) to make funds available in such amounts and at such time as may be required to meet the payments required by the contract and any damages and costs that may accrue from the cancellation of such contract, in advance of the time such payments, damages, or costs are due.
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Stable record: federal_law:legal_authorities:record_usc_9a6a9b2dfdb254d4c35f0192
Source file: Laws/federal/codes/united-states-code/title-22/section-2769-foreign-military-construction-sales--1bec4ec9b5.md
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Source location: Title 22, Chapter 39, § 2769; chapter-039-arms-export-control.md
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The President may sell design and construction services to any eligible foreign country or international organization if such country or international organization agrees to pay in United States dollars not less than the full cost to the United States Government of furnishing such services. Payment shall be made to the United States Government in advance of the performance of such services by officers or employees of the United States Government. The President may, without requirement for charge to any appropriation or contract authorization otherwise provided, enter into contracts for the procurement of design and construction services for sale under this section if such country or international organization provides the United States Government with a dependable undertaking (1) to pay the full amount of such contract which will assure the United States Government against any loss on the contract, and (2) to make funds available in such amounts and at such time as may be required to meet the payments required by the contract and any damages and costs that may accrue from the cancellation of such contract, in advance of the time such payments, damages, or costs are due.
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Federal law — U.S. Code and appendices · legal_authorities
As declared by the Congress in the Arms Control and Disarmament Act [[22 U.S.C. 2551](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2551&num=0&edition=prelim) et seq.], an ultimate goal of the United States continues to be a world which is free from the scourge of war and the dangers and burdens of armaments; in which the use of force has been subordinated to the rule of law; and in which international adjustments to a changing world are achieved peacefully. In furtherance of that goal, it remains the policy of the United States to encourage regional arms control and disarmament agreements and to discourage arms races.
Source: Supplied U.S. Code snapshot — release unconfirmed · 22 U.S.C. § 2751
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Authority to Use for Certain Purposes.—** The Secretary concerned may use one-step turn-key selection procedures for the purpose of entering into a contract for any of the following purposes:
(1) The construction of an authorized military construction project.
(2) A repair project (as defined in [section 2811(e) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section2811/e&num=0&edition=prelim)) with an approved cost equal to or less than $4,000,000.11 See Temporary Expansion of Authority for Use of One-Step Turn-Key Procedures for Repair Projects note below.
(3) The construction of a facility as part of an authorized security assistance activity.
**(b) Definitions.—** In this section:
(1) The term “one-step turn-key selection procedures” means procedures used for the selection of a contractor on the basis of price and other evaluation criteria to perform, in accordance with the provisions of a firm fixed-price contract, both the design and construction of a facility using performance specifications supplied by the Secretary concerned.
(2) The term “security assistance activity” means—
(A) humanitarian and civic assistance authorized by sections 401 and 2561 of this title;
(B) foreign disaster assistance authorized by [section 404 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section404&num=0&edition=prelim);
(C) foreign military construction sales authorized by section 29 of the Arms Export Control Act ([22 U.S.C. 2769](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2769&num=0&edition=prelim));
(D) foreign assistance authorized under sections 607 and 632 of the Foreign Assistance Act of 1961 ([22 U.S.C. 2357](https://uscode.house.gov/view.xhtml
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 2862
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Authority of President; dependable undertaking by foreign country or international organization; interest rates** Except as otherwise provided in this section, the President may, without requirement for charge to any appropriation or contract authorization otherwise provided, enter into contracts for the procurement of defense articles or defense services for sale for United States dollars to any foreign country or international organization if such country or international organization provides the United States Government with a dependable undertaking (1) to pay the full amount of such contract which will assure the United States Government against any loss on the contract, and (2) to make funds available in such amounts and at such times as may be required to meet the payments required by the contract, and any damages and costs that may accrue from the cancellation of such contract, in advance of the time such payments, damages, or costs are due. Interest shall be charged on any net amount by which any such country or international organization is in arrears under all of its outstanding unliquidated dependable undertakings, considered collectively. The rate of interest charged shall be a rate not less than a rate determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding short-term obligations of the United States as of the last day of the month preceding the net arrearage and shall be computed from the date of net arrearage.
**(b) Issuance of letters of offer under emergency determination; availability of appropriations for payment** The President may, if he determines it to be in the national interest, issue letters of offer under this section which provide for billing upon delivery of the defense ar
Source: Supplied U.S. Code snapshot — release unconfirmed · 22 U.S.C. § 2762
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Report by President; contents** The President shall transmit to the Speaker of the House of Representatives, the Committee on Foreign Affairs of the House of Representatives, and to the chairman of the Committee on Foreign Relations of the Senate not more than sixty days after the end of each quarter an unclassified report (except that any material which was transmitted in classified form under subsection (b)(1) or (c)(1) of this section may be contained in a classified addendum to such report, and any letter of offer referred to in paragraph (1) of this subsection may be listed in such addendum unless such letter of offer has been the subject of an unclassified certification pursuant to subsection (b)(1) of this section, and any information provided under paragraph (11) of this subsection may also be provided in a classified addendum) containing—
(1) a listing of all letters of offer to sell any major defense equipment for $1,000,000 or more under this chapter to each foreign country and international organization, by category, if such letters of offer have not been accepted or canceled;
(2) a listing of all such letters of offer that have been accepted during the fiscal year in which such report is submitted, together with the total value of all defense articles and defense services sold to each foreign country and international organization during such fiscal year;
(3) the cumulative dollar amounts, by foreign country and international organization, of sales credit agreements under [section 2763 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2763&num=0&edition=prelim) and guaranty agreements under [section 2764 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2764&num=0&edi
Source: Supplied U.S. Code snapshot — release unconfirmed · 22 U.S.C. § 2776
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Permissible uses of cash payments under sections 2761, 2762, 2763, and 2769** Cash payments received under sections 2761, 2762, and 2769 of this title and advances received under [section 2763 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2763&num=0&edition=prelim) shall be available solely for payments to suppliers (including the military departments) and refunds to purchasers and shall not be available for financing credits and guaranties.
**(b) Transfer of funds to miscellaneous receipts of Treasury** Amounts received from foreign governments and international organizations as repayments for credits extended pursuant to [section 2763 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2763&num=0&edition=prelim), amounts received from the disposition of instruments evidencing indebtedness under [section 2764(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2764/b&num=0&edition=prelim) (excluding such portion of the sales proceeds as may be required at the time of disposition to be obligated as a reserve for payment of claims under guaranties issued pursuant to [section 2764(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2764/b&num=0&edition=prelim), which sums are made available for such obligations), and other collections (including fees and interest) shall be transferred to the miscellaneous receipts of the Treasury.
**(c) Credit of funds to reserve under section 2764(c)** Notwithstanding the provisions of subsection (b), to the extent that any of the funds constituting the reserve under [section 2764(c) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title2
Source: Supplied U.S. Code snapshot — release unconfirmed · 22 U.S.C. § 2777
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Adequate and timely reports to Secretary of State; maintenance of records** In accordance with such regulations as he may prescribe, the Secretary of State shall require adequate and timely reporting on political contributions, gifts, commissions and fees paid, or offered or agreed to be paid, by any person in connection with—
(1) sales of defense articles or defense services under [section 2762 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2762&num=0&edition=prelim), or of design and construction services under [section 2769 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2769&num=0&edition=prelim);
(2) commercial sales of defense articles or defense services licensed or approved under [section 2778 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2778&num=0&edition=prelim); or
(3) exports of defense articles or defense services pursuant to a treaty referenced in [section 2778(j)(1)(C)(i) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2778/j/1/C/i&num=0&edition=prelim);
to or for the armed forces of a foreign country or international organization in order to solicit, promote, or otherwise to secure the conclusion of such sales. Such regulations shall specify the amounts and the kinds of payments, offers, and agreements to be reported, and the form and timing of reports, and shall require reports on the names of sales agents and other persons receiving such payments. The Secretary of State shall by regulation require such recordkeeping as he determines is necessary.
**(b) Presidential regulation** The President may, by regulation, prohibit, limit, or prescribe conditions with respect to su
Source: Supplied U.S. Code snapshot — release unconfirmed · 22 U.S.C. § 2779
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Considerations in procurement outside United States** In carrying out this chapter, special emphasis shall be placed on procurement in the United States, but, subject to the provisions of subsection (b) of this section, consideration shall also be given to coproduction or licensed production outside the United States of defense articles of United States origin when such production best serves the foreign policy, national security, and economy of the United States. In evaluating any sale proposed to be made pursuant to this chapter, there shall be taken into consideration (A) the extent to which the proposed sale damages or infringes upon licensing arrangements whereby United States entities have granted licenses for the manufacture of the defense articles selected by the purchasing country to entities located in friendly foreign countries, which licenses result in financial returns to the United States, (B) the portion of the defense articles so manufactured which is of United States origin, and (C) whether, and the extent to which, such sale might contribute to an arms race, aid in the development of weapons of mass destruction, support international terrorism, increase the possibility of outbreak or escalation of conflict, or prejudice the development of bilateral or multilateral arms control or nonproliferation agreements or other arrangements.
**(b) Information to Congress on credit sales and guaranties** No credit sale shall be extended under [section 2763 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2763&num=0&edition=prelim), and no guarantee shall be issued under [section 2764 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2764&num=0&edition=prelim), in any case invo
Source: Supplied U.S. Code snapshot — release unconfirmed · 22 U.S.C. § 2791
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Federal law — U.S. Code and appendices · legal_authorities
For purposes of this chapter, the term—
(1) “excess defense article” has the meaning provided by [section 2403(g) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2403/g&num=0&edition=prelim);
(2) “value” means, in the case of an excess defense article, except as otherwise provided in [section 2761(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2761/a&num=0&edition=prelim), not less than the greater of—
(A) the gross cost incurred by the United States Government in repairing, rehabilitating, or modifying such article, plus the scrap value; or
(B) the market value, if ascertainable;
(3) “defense article”, except as provided in paragraph (7) of this section, means, with respect to a sale or transfer by the United States under the authority of this chapter or any other foreign assistance or sales program of the United States—
(A) any weapon, weapons system, munition, aircraft, vessel, boat, or other implement of war,
(B) any property, installation, commodity, material, equipment, supply, or goods used for the purposes of making military sales,
(C) any machinery, facility, tool, material, supply, or other item necessary for the manufacture, production, processing, repair, servicing, storage, construction, transportation, operation, or use of any article listed in this paragraph, and
(D) any component or part of any article listed in this paragraph,
but does not include merchant vessels or (as defined by the Atomic Energy Act of 1954 [[42 U.S.C. 2011](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section2011&num=0&edition=prelim) et seq.]) source material (except uranium depleted in the isotope 235 which is incorporated in defense articles so
Source: Supplied U.S. Code snapshot — release unconfirmed · 22 U.S.C. § 2794
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Federal law — U.S. Code and appendices · legal_authorities
Page 1226
TITLE 22—FOREIGN RELATIONS AND INTERCOURSE
§ 2767a
paragraph (2) given the risks identified in the assess-
ment under paragraph (1).
‘‘(4) A listing of which, if any, requirements associ-
ated with the oversight and management of a major
defense acquisition program (as prescribed under De-
partment of Defense Instruction 5000.02 or related au-
thorities) will be waived, or in any way modified, in
carrying out the development contract to be entered
into under [subsection] (a)(1), and a full explanation
why such requirements need to be waived or modi-
fied.
‘‘(c) DEFINITIONS.—In this section:
‘‘(1) The term ‘engineering and manufacturing de-
velopment’ has the meaning given that term in De-
partment of Defense Instruction 5000.02.
‘‘(2) The term ‘major weapon system’ has the mean-
ing given that term in section 2379(f) of title 10,
United States Code [now 10 U.S.C. 3455(f)].’’
[Pub. L. 116–92, § 902(84), which directed the amend-
ment of section 836(a)(2) of Pub. L. 112–81, set out
above, by substituting ‘‘the Under Secretary of Defense
for Acquisition and Sustainment, the Under Secretary
of Defense for Research and Engineering,’’ for ‘‘the
Under Secretary of Defense for Acquisition, Tech-
nology, and Logistics, the Assistant Secretary of De-
fense for Research,’’, was executed by making the sub-
stitution for ‘‘the Under Secretary of Defense for Ac-
quisition, Technology, and Logistics, the Assistant
Secretary of Defense for Research and Engineering,’’ to
reflect the probable intent of Congress.]
Executive Documents
DELEGATION OF FUNCTIONS
For delegation of functions of the President under
this section, with certain conditions, see section 1(f) of
Ex. Ord. No. 13637, Mar. 8, 2013, 78 F.R. 16129, set out as
a note under section 2751 of this
Source: Supplied 2024 U.S. Code historical extraction · 22 U.S.C. § 2769
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.