10 U.S.C. § 2344 — Methods of payment for acquisitions and

Page 1881 TITLE 10—ARMED FORCES § 2344 Editorial Notes AMENDMENTS 2021—Pub. L. 116–283, § 1883(b)(2), substituted ‘‘3201’’ for ‘‘2304(a)’’. Pub. L. 116–283, § 1862(c)(1), substituted ‘‘Sections 4651,’’ for ‘‘Sections 2207,’’. Pub. L. 116–283, § 1831(j)(3), as amended by Pub. L. 117–81, § 1701(b)(10)(I)(i), substituted ‘‘3701 through 3708, and 3841’’ for ‘‘2306a, and 2313’’. Pub. L. 116–283, § 1817(h), substituted ‘‘3351, 3352(a), 3352(c)’’ for ‘‘2306(a), 2306(b), 2306(e)’’. 2011—Pub. L. 111–350 substituted ‘‘section 6306 of title 41’’ for ‘‘section 3741 of the Revised Statutes (41 U.S.C. 22)’’. 1994—Pub. L. 103–337, § 1317(c)(2)(A), substituted ‘‘Waiver of applicability of certain laws’’ for ‘‘Law ap- plicable to acquisition and cross-servicing agreements’’ as section catchline. Pub. L. 103–337, § 1317(c)(1), designated subsec. (b) as entire section and struck out former subsec. (a) which read as follows: ‘‘Except as provided in subsection (b), acquisition of logistic support, supplies, and services under section 2341 of this title and agreements entered into under section 2342 of this title shall be made in ac- cordance with chapter 137 of this title and the provi- sions of this subchapter.’’ 1991—Subsec. (b). Pub. L. 102–190 substituted ‘‘this title and’’ for ‘‘this title,’’ and struck out ‘‘, and sec- tion 719 of the Defense Production Act of 1950 (50 U.S.C. App. 2168)’’ before ‘‘shall not apply’’. 1989—Subsec. (a). Pub. L. 101–189 substituted ‘‘this subchapter’’ for ‘‘this chapter’’. 1988—Subsec. (b). Pub. L. 100–456 struck out ‘‘section’’ before ‘‘2306a’’. 1987—Subsec. (b). Pub. L. 100–26 substituted ‘‘section 2306a,’’ for ‘‘2306(f),’’. 1985—Pub. L. 99–145, § 1304(a)(1), renumbered section 2323 of this title as this section. Subsec. (a). Pub. L. 99–145, § 1304(a)(5), substituted ‘‘section 2341’’ for ‘‘section 2321’’ and ‘‘section 2342’’ for ‘‘section 2322’’. Subsec. (b). Pub. L. 99–145, § 1304(a)(5), substituted ‘‘section 2341’’ for ‘‘section 2321’’ and ‘‘section 2342’’ for ‘‘section 2322’’. Pub. L. 99–145, § 961(b), substituted ‘‘section 2304(a)’’ for ‘‘section 2304(g)’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Amendment by Pub. L. 117–81 applicable as if in- cluded in the enactment of title XVIII of Pub. L. 116–283 as enacted, see section 1701(a)(2) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and note below. Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title. EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103–337 applicable with regard to any acquisition or transfer of logistic support, sup- plies, and services under authority of this subchapter that is initiated after Oct. 5, 1994, see section 1317(j) of Pub. L. 103–337, set out as a note under section 2341 of this title. EFFECTIVE DATE OF 1985 AMENDMENT Pub. L. 99–145, title IX, § 961(e), Nov. 8, 1985, 99 Stat. 704, provided that: ‘‘The amendments made by sub- sections (a) [amending section 2304 of this title and sec- tion 253 of Title 41, Public Contracts], (b) [amending this section], and (c) [amending section 759 of former Title 40, Public Buildings, Property, and Works] shall take effect as if included in the enactment of the Com- petition in Contracting Act of 1984 (title VII of division B of Public Law 98–369) [see Effective Date of 1984 Amendment note set out under section 4751 of this title].’’ § 2344. Methods of payment for acquisitions and transfers by the United States (a) Logistics support, supplies, and services may be acquired or transferred by the United States under the authority of this subchapter on a reimbursement basis or by replacement-in- kind or exchange of supplies or services of an equal value. (b)(1) In entering into agreements with the Government of another North Atlantic Treaty Organization country or other foreign country for the acquisition or transfer of logistic sup- port, supplies, and services on a reimbursement basis, the Secretary of Defense shall negotiate for adoption of the following pricing principles for reciprocal application: (A) The price charged by a supplying coun- try for logistics support, supplies, and services specifically procured by the supplying country from its contractors for a recipient country shall be no less favorable than the price for identical items or services charged by such contractors to the armed forces of the sup- plying country, taking into account price dif- ferentials due to delivery schedules, points of delivery, and other similar considerations. (B) The price charged a recipient country for supplies furnished by a supplying country from its inventory, and the price charged a re- cipient country for logistics support and serv- ices furnished by the officers, employees, or governmental agencies of a supplying country, shall be the same as the price charged for identical supplies, support, or services ac- quired by an armed force of the supplying country from such governmental sources. (2) To the extent that the Secretary of Defense is unable to obtain mutual acceptance by the other country involved of the reciprocal pricing principles for reimbursable transactions set forth in paragraph (1)— (A) the United States may not acquire from such country any logistic support, supply, or service not governed by such reciprocal pric- ing principles unless the United States forces commander acquiring such support, supply, or service determines (after price analysis) that the price thereof is fair and reasonable; and (B) transfers by the United States to such country under this subchapter of any logistic support, supply, or service that is not gov- erned by such reciprocal pricing principles shall be subject to the pricing provisions of the Arms Export Control Act (22 U.S.C. 2751 et seq.). (3) To the extent that indirect costs (including charges for plant and production equipment), administrative surcharges, and contract admin- istration costs with respect to any North Atlan- tic Treaty Organization country or other foreign country are not waived by operation of the re- ciprocal pricing principles of paragraph (1), the Secretary of Defense may, on a reciprocal basis, agree to waive such costs. (4) The pricing principles set forth in para- graph (2) and the waiver authority provided in Page 1882 TITLE 10—ARMED FORCES § 2345 paragraph (3) shall also apply to agreements with North Atlantic Treaty Organization sub- sidiary bodies and the United Nations Organiza- tion or any regional international organization under this subchapter. (c) In acquiring or transferring logistics sup- port, supplies, or services under the authority of this subchapter by exchange of supplies or serv- ices, the Secretary of Defense may not agree to or carry out the following: (1) Transfers in exchange for property the acquisition of which by the Department of De- fense is prohibited by law. (2) Transfers of source, byproduct, or special nuclear materials or any other material, arti- cle, data, or thing of value the transfer of which is subject to the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.). (3) Transfers of chemical munitions. (Added Pub. L. 96–323, § 2(a), Aug. 4, 1980, 94 Stat. 1017, § 2324; amended Pub. L. 97–22, § 11(a)(8), July 10, 1981, 95 Stat. 138; renumbered § 2344, Pub. L. 99–145, title XIII, § 1304(a)(1), Nov. 8, 1985, 99 Stat. 741; Pub. L. 99–661, div. A, title XI, § 1104(b), Nov. 14, 1986, 100 Stat. 3964; Pub. L. 101–189, div. A, title IX, §§ 931(e)(1), 938(a), (b), Nov. 29, 1989, 103 Stat. 1535, 1539; Pub. L. 102–25, title VII, § 701(f)(2), Apr. 6, 1991, 105 Stat. 115; Pub. L. 103–337, div. A, title XIII, § 1317(d), Oct. 5, 1994, 108 Stat. 2900; Pub. L. 109–163, div. A, title XII, § 1204, Jan. 6, 2006, 119 Stat. 3456.) Editorial Notes REFERENCES IN TEXT The Arms Export Control Act, referred to in subsec. (b)(2)(B), is Pub. L. 90–629, Oct. 22, 1968, 82 Stat. 1320, as amended, which is classified principally to chapter 39 (§ 2751 et seq.) of Title 22, Foreign Relations and Inter- course. For complete classification of this Act to the Code, see Short Title note set out under section 2751 of Title 22 and Tables. The Atomic Energy Act of 1954, referred to in subsec. (c)(2), is act Aug. 1, 1946, ch. 724, as added by act Aug. 30, 1954, ch. 1073, § 1, 68 Stat. 919, which is classified principally to chapter 23 (§ 2011 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 2011 of Title 42 and Tables. AMENDMENTS 2006—Subsec. (b)(4). Pub. L. 109–163 struck out ‘‘of which the United States is a member’’ before ‘‘under this subchapter’’. 1994—Subsec. (b)(4). Pub. L. 103–337 inserted ‘‘and the United Nations Organization or any regional inter- national organization of which the United States is a member’’ after ‘‘subsidiary bodies’’. 1991—Subsec. (c). Pub. L. 102–25 substituted ‘‘sub- chapter’’ for ‘‘chapter’’ in introductory provisions. 1989—Subsec. (a). Pub. L. 101–189, §§ 931(e)(1), 938(a), substituted ‘‘equal value’’ for ‘‘identical or substan- tially identical nature’’ and ‘‘this subchapter’’ for ‘‘this chapter’’. Subsec. (b)(2)(B), (4). Pub. L. 101–189, § 931(e)(1), sub- stituted ‘‘this subchapter’’ for ‘‘this chapter’’. Subsec. (c). Pub. L. 101–189, § 938(b), added subsec. (c). 1986—Subsec. (b)(1), (3). Pub. L. 99–661 inserted ‘‘or other foreign country’’ after ‘‘country’’. 1985—Pub. L. 99–145 renumbered section 2324 of this title as this section. 1981—Subsec. (b)(2)(B). Pub. L. 97–22 substituted ‘‘this chapter’’ for ‘‘this Act’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103–337 applicable with regard to any acquisition or transfer of logistic support, sup- plies, and services under authority of this subchapter that is initiated after Oct. 5, 1994, see section 1317(j) of Pub. L. 103–337, set out as a note under section 2341 of this title. § 2345. Liquidation of accrued credits and liabil- ities (a) Credits and liabilities of the United States accrued as a result of acquisitions and transfers of logistic support, supplies, and services under the authority of this subchapter shall be liq- uidated not less often than once every 12 months by direct payment to the entity supplying such support, supplies, or services by the entity re- ceiving such support, supplies, or services. (b) Payment-in-kind or exchange entitlements accrued as a result of acquisitions and transfers of logistic support, supplies, and services under authority of this subchapter shall be satisfied within 12 months after the date of the delivery of the logistic support, supplies, or services. (c)(1) Any credits of the United States accrued as a result of the provision of logistic support, supplies, and services under the authority of this subchapter that remain unliquidated more than 18 months after the date of delivery of the logistic support, supplies, or services may, at the option of the Secretary of Defense, with the concurrence of the Secretary of State, be liq- uidated by offsetting the credits against any amount owed by the Department of Defense, pursuant to a transaction or transactions con- cluded under the authority of this subchapter, to the government or international organization to which the logistic support, supplies, or serv- ices were provided by the United States. (2) The amount of any credits offset pursuant to paragraph (1) shall be credited as specified in section 2346 of this title as if it were a receipt of the United States. (Added Pub. L. 96–323, § 2(a), Aug. 4, 1980, 94 Stat. 1018, § 2325; renumbered § 2345, Pub. L. 99–145, title XIII, § 1304(a)(1), Nov. 8, 1985, 99 Stat. 741; amended Pub. L. 99–661, div. A, title XI, § 1104(c), Nov. 14, 1986, 100 Stat. 3965; Pub. L. 101–189, div. A, title IX, § 931(e)(1), Nov. 29, 1989, 103 Stat. 1535; Pub. L. 103–337, div. A, title XIII, § 1317(e), Oct. 5, 1994, 108 Stat. 2900; Pub. L. 114–328, div. A, title X, § 1083(a), Dec. 23, 2016, 130 Stat. 2420.) Editorial Notes AMENDMENTS 2016—Subsec. (c). Pub. L. 114–328 added subsec. (c). 1994—Subsec. (a). Pub. L. 103–337 substituted ‘‘12 months’’ for ‘‘three months’’. 1989—Subsecs. (a), (b). Pub. L. 101–189 substituted ‘‘this subchapter’’ for ‘‘this chapter’’. 1986—Pub. L. 99–661 designated existing provisions as subsec. (a) and added subsec. (b). 1985—Pub. L. 99–145 renumbered section 2325 of this title as this section. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2016 AMENDMENT Pub. L. 114–328, div. A, title X, § 1083(b), Dec. 23, 2016, 130 Stat. 2420, provided that: ‘‘Subsection (c) of section