[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2265 Introduced in Senate (IS)]

<DOC>






118th CONGRESS
  1st Session
                                S. 2265

To streamline and expedite the foreign military sales process, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 12, 2023

 Mr. Sullivan introduced the following bill; which was read twice and 
             referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 A BILL


 
To streamline and expedite the foreign military sales process, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Speeding the Execution of Arms 
Deliveries for Allies and Securing Trust Act'' or the ``STEADFAST 
Act''.

SEC. 2. STREAMLINING AND EXPEDITING FOREIGN MILITARY SALES PROCESS.

    (a) Security Cooperation Workforce and Defense Acquisition 
Workforce.--
            (1) Responsibilities of secretary of defense.--
                    (A) In general.--The Secretary of Defense shall--
                            (i) expand, carry out activities to 
                        professionalize, and increase the resources 
                        available to the security cooperation workforce 
                        so as to enable the full implementation of this 
                        section and the amendments made by this 
                        section;
                            (ii) ensure that members of the defense 
                        acquisition workforce involved in the foreign 
                        military sales process are aware of evolving 
                        United States regional and country-level 
                        defense capability-building priorities; and
                            (iii) ensure that members of the defense 
                        acquisition workforce are professionally 
                        evaluated using metrics to measure--
                                    (I) responsiveness to foreign 
                                partner requests;
                                    (II) ability to meet foreign 
                                partner capability and delivery 
                                schedule requirements; and
                                    (III) advancement of foreign 
                                capability-building priorities 
                                described in the semiannual guidance 
                                issued under paragraph (2).
                    (B) Report.--Not later than 90 days after the date 
                of the enactment of this Act, the Secretary of Defense 
                shall submit to the Committees on Armed Services of the 
                Senate and the House of Representatives a report on the 
                resources necessary to implement subparagraph (A), 
                including--
                            (i) the anticipated costs of new personnel 
                        and training to carry out such subparagraph; 
                        and
                            (ii) the estimated increase in foreign 
                        military sales administrative user fees 
                        necessary to offset such costs.
            (2) Guidance.--
                    (A) In general.--Not less frequently than 
                semiannually, the Secretary of Defense, in coordination 
                with the commander of each relevant combatant command, 
                shall develop and publish guidance--
                            (i) based on the National Security Strategy 
                        and the National Defense Strategy for 
                        dissemination to the security cooperation 
                        workforce and the defense acquisition 
                        workforce; and
                            (ii) informed by the theater campaign plans 
                        and theater security cooperation strategies of 
                        such combatant commands.
                    (B) Elements.--The guidance required by 
                subparagraph (A) shall--
                            (i) identify--
                                    (I) regional and country-level 
                                foreign defense capability-building 
                                priorities; and
                                    (II) levels of urgency and desired 
                                timelines for achieving foreign 
                                capability-building objectives; and
                            (ii) provide guidance to the defense 
                        acquisition workforce regarding levels of 
                        resourcing, innovation, and risk tolerance that 
                        should be considered in meeting urgent needs.
            (3) Commission.--
                    (A) Establishment.--The Secretary of Defense shall 
                establish a commission (in this section referred to as 
                the ``Commission''), independent of the Department of 
                Defense, which shall, subject to applicable law, 
                provide independent advice on matters studied under 
                subparagraph (B) directly to the Secretary of Defense 
                and the Deputy Secretary of Defense without obtaining 
                the approval or concurrence of any other official 
                within the Department of Defense.
                    (B) Study.--The Commission shall conduct a study 
                of--
                            (i) the requirements for establishing a 
                        contracting capacity that is--
                                    (I) led by the Defense Security 
                                Cooperation Agency; and
                                    (II) specific to the foreign 
                                military sales process; and
                            (ii) the feasibility and advisability of--
                                    (I) establishing, at the Department 
                                of Defense level or the military 
                                department level, a contracting 
                                capacity that--
                                            (aa) is specific to the 
                                        execution of contracts for 
                                        foreign military sales;
                                            (bb) is fully funded by the 
                                        Defense Security Cooperation 
                                        Agency using foreign military 
                                        sales administrative funds so 
                                        as to ensure that such capacity 
                                        is dedicated solely to foreign 
                                        military sales contracting;
                                            (cc) is monitored by the 
                                        Defense Security Cooperation 
                                        Agency Chief Performance Office 
                                        to ensure effectiveness in 
                                        meeting foreign military sales 
                                        contracting requirements; and
                                            (dd) empowers the Director 
                                        of the Defense Security 
                                        Cooperation Agency, in 
                                        coordination with the Under 
                                        Secretary of Defense for Policy 
                                        and the Under Secretary of 
                                        Defense for Acquisition and 
                                        Sustainment, to increase or 
                                        decrease foreign military sales 
                                        contracting capacity through 
                                        the semiannual guidance under 
                                        paragraph (2); and
                                    (II) with respect to technology 
                                release deliberations of the Defense 
                                Technology Security Administration, 
                                incorporating greater global and 
                                regional strategic considerations, 
                                including by--
                                            (aa) transferring the 
                                        organization, manpower, and 
                                        functions of the Defense 
                                        Technology Security 
                                        Administration to the Defense 
                                        Security Cooperation Agency so 
                                        as to enable the Director of 
                                        the Defense Security 
                                        Cooperation Agency, as the head 
                                        of the security cooperation 
                                        enterprise of the Department of 
                                        Defense--

                                                    (AA) to readily 
                                                balance potential risks 
                                                to technologies with an 
                                                existing understanding 
                                                of foreign partner 
                                                capability needs and 
                                                levels of urgency; and

                                                    (BB) to provide 
                                                release recommendations 
                                                to the Office of the 
                                                Secretary of Defense at 
                                                the Under Secretary 
                                                level or the Assistant 
                                                Secretary level, as 
                                                appropriate; and

                                            (bb) converting the Defense 
                                        Technology Security 
                                        Administration into an 
                                        organization that reports to 
                                        the Under Secretary of Defense 
                                        for Research and Engineering to 
                                        ensure a greater understanding 
                                        of the state of play with 
                                        regard to cutting-edge 
                                        technologies.
                    (C) Membership.--
                            (i) In general.--The Commission shall be 
                        composed of not fewer than seven members, each 
                        of whom shall have expertise in the foreign 
                        military sales process.
                            (ii) Restriction.--The Commission may not 
                        have as a member--
                                    (I) an officer or employee of the 
                                Department of Defense; or
                                    (II) a member of the United States 
                                Armed Forces.
                    (D) Report.--Not later than 1 year after the date 
                of the enactment of this Act, the Commission shall 
                submit to the Committees on Armed Services of the 
                Senate and the House of Representatives a report on the 
                results of the study required by subparagraph (B).
    (b) Modification of Foreign Military Sales Processing.--
            (1) Deadlines.--
                    (A) Responses.--
                            (i) 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.
                            (ii) Letters of request for letters of 
                        offer and acceptance.--
                                    (I) In general.--Subject to 
                                subclause (II), 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--
                                            (aa) 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;
                                            (bb) 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
                                            (cc) 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.
                                    (II) Eligible foreign purchasers 
                                with special designations.--The 
                                Secretary of Defense shall ensure that 
                                an eligible foreign purchaser with a 
                                special designation that has submitted 
                                a letter of request for a letter of 
                                offer and acceptance receives a 
                                response--
                                            (aa) in the case of an 
                                        eligible foreign purchaser that 
                                        is a member of the national 
                                        technology and industrial 
                                        base--

                                                    (AA) in the case of 
                                                a letter of request for 
                                                a defined-order letter 
                                                of offer and 
                                                acceptance, not later 
                                                than 65 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; and

                                                    (BB) in the case of 
                                                a letter of request for 
                                                a defined-order letter 
                                                of offer and acceptance 
                                                involving extenuating 
                                                factors, as approved by 
                                                the Director of the 
                                                Defense Security 
                                                Cooperation Agency, not 
                                                later than 90 days 
                                                after such date;

                                            (bb) in the case of Israel, 
                                        Japan, the Republic of Korea, 
                                        New Zealand, or an eligible 
                                        foreign purchaser that is a 
                                        member of the North Atlantic 
                                        Treaty Organization or a major 
                                        non-NATO ally--

                                                    (AA) in the case of 
                                                a letter of request for 
                                                a defined-order letter 
                                                of offer and 
                                                acceptance, not later 
                                                than 75 days after such 
                                                date; and

                                                    (BB) in the case of 
                                                a letter of request for 
                                                a defined-order letter 
                                                of offer and acceptance 
                                                involving extenuating 
                                                factors, as approved by 
                                                the Director of the 
                                                Defense Security 
                                                Cooperation Agency, not 
                                                later than 100 days 
                                                after such date; and

                                            (cc) in the case of an 
                                        eligible foreign purchaser that 
                                        is a major defense partner or a 
                                        major security partner--

                                                    (AA) in the case of 
                                                a letter of request for 
                                                a defined-order letter 
                                                of offer and 
                                                acceptance, not later 
                                                than 85 days after such 
                                                date; and

                                                    (BB) in the case of 
                                                a letter of request for 
                                                a defined-order letter 
                                                of offer and acceptance 
                                                involving extenuating 
                                                factors, as approved by 
                                                the Director of the 
                                                Defense Security 
                                                Cooperation Agency, not 
                                                later than 125 days.

                            (iii) Rule of construction.--Nothing in 
                        this subparagraph may be construed to include, 
                        within a deadline set forth in this 
                        subparagraph--
                                    (I) any period for the issuance of 
                                a decision under subparagraph (B);
                                    (II) any period of consultation 
                                described in subparagraph (C); or
                                    (III) a notification period under 
                                section 36(c)(2) of the Arms Export 
                                Control Act (22 U.S.C. 2776(c)(2)).
                    (B) Licenses for release of sensitive technology.--
                            (i) Deadline for decision.--With respect to 
                        an application of a defense industry provider 
                        for a license for the release of sensitive 
                        technology as part of foreign military sales 
                        negotiations, not later than 120 days after the 
                        date on which such an application containing 
                        all relevant information in the form required 
                        is received by the Department of State 
                        Directorate of Defense Trade Controls, the 
                        Secretary of State shall issue a decision on 
                        the application.
                            (ii) Approval.--In the case of a decision 
                        under clause (i) to approve such an 
                        application, the defense industry provider 
                        concerned may commence negotiations with the 
                        eligible foreign purchaser on the earliest date 
                        practicable following the issuance of such 
                        decision.
                            (iii) Denial.--Concurrently with the 
                        issuance of a decision under clause (i) denying 
                        such an application, the Secretary of State 
                        shall provide to the Committee on Armed 
                        Services and the Committee on Foreign Relations 
                        of the Senate and the Committee on Armed 
                        Services and the Committee on Foreign Affairs 
                        of the House of Representatives written notice 
                        of the decision, including the basis for the 
                        denial.
                            (iv) Rule of construction.--Nothing in this 
                        subparagraph may be construed to include, 
                        within the deadline set forth in clause (i)--
                                    (I) any response period under 
                                subparagraph (A);
                                    (II) any period of consultation 
                                described in subparagraph (C); or
                                    (III) a notification period under 
                                section 36(c)(2) of the Arms Export 
                                Control Act (22 U.S.C. 2776(c)(2)).
                    (C) Department of state consultation.--Any period 
                of consultation between the Secretary of State and 
                Congress with respect to a proposed foreign military 
                sale may not--
                            (i) be longer than 20 days; or
                            (ii) be construed to include a notification 
                        period under section 36(c)(2) of the Arms 
                        Export Control Act (22 U.S.C. 2776(c)(2)).
            (2) Expansion of country prioritization.--
                    (A) DX ratings.--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 
                section)).
                    (B) Rapid technology release review and rapid 
                acquisition.--The Secretary of Defense shall establish 
                a path within the foreign military sales process that 
                prioritizes Israel, Japan, the Republic of Korea, New 
                Zealand, member countries of the North Atlantic Treaty 
                Organization, major non-NATO allies, major defense 
                partners, major security partners, and eligible 
                purchasers that are members of the national technology 
                and industrial base for rapid technology release review 
                and rapid acquisition of United States defense articles 
                and defense services.
            (3) Limitations on price modifications.--
                    (A) 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--
                            (i) not more than 20 percent of such dollar 
                        amount to account for supply chain disruptions, 
                        including the unavailability of materials and 
                        inflation; and
                            (ii) not less than 20 percent of such 
                        dollar amount, subject to review by the Foreign 
                        Military Sales Cost Review Board.
                    (B) Foreign military sales cost review board.--
                            (i) 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 subparagraph 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 
                                subparagraph (A) 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.
                            (ii) Consultation.--The Board shall conduct 
                        reviews under clause (i)(I) in consultation 
                        with the eligible foreign purchaser concerned.
                    (C) Justification for price increase.--In the case 
                of an increase in the dollar amount described in 
                subparagraph (A), the Secretary of Defense shall 
                provide to the eligible foreign purchaser and the 
                primary defense industry provider concerned 
                documentation justifying such increase.
                    (D) 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.
            (4) Definitions.--In this subsection:
                    (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 email;
                                    (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; 22 U.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.
                    (I) National technology and industrial base.--The 
                term ``national technology and industrial base'' has 
                the meaning given the term in section 4801 of title 10, 
                United States Code.
    (c) Modification of Reporting Requirements.--Section 36 of the Arms 
Export Control Act (22 U.S.C. 2776) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``any letter of offer'' and 
                        all that follows through ``$14,000,000 or 
                        more'' and inserting ``any letter of offer to 
                        sell any defense articles or services under 
                        this Act for $170,000,000 or more, any design 
                        and construction services for $681,000,000 or 
                        more, or any major defense equipment for 
                        $47,000,000 or more''; and
                            (ii) in the undesignated matter at the end, 
                        in the second sentence, by striking ``or New 
                        Zealand'' and inserting ``New Zealand, any 
                        major non-NATO ally (as defined in section 644 
                        of the Foreign Assistance Act of 1961 (22 
                        U.S.C. 2403)), or any major defense partner, or 
                        major security partner'';
                    (B) in paragraph (2), by striking ``or New 
                Zealand'' and inserting ``New Zealand, any major non-
                NATO ally, or any major defense partner or major 
                security partner''; and
                    (C) in paragraph (6), in the matter preceding 
                subparagraph (A)--
                            (i) by striking ``or New Zealand'' and 
                        inserting ``New Zealand, a major non-NATO ally, 
                        or a major defense partner or major security 
                        partner'';
                            (ii) in subparagraph (A), by striking 
                        ``$25,000,000'' and inserting ``$85,000,000'';
                            (iii) in subparagraph (B), by striking 
                        ``$100,000,000'' and inserting 
                        ``$340,000,000''; and
                            (iv) in subparagraph (C), by striking 
                        ``$300,000,000'' and inserting 
                        ``$1,000,000,000'';
            (2) in subsection (c)--
                    (A) in paragraph (2)(A), by striking ``or New 
                Zealand'' and inserting ``New Zealand, any major non-
                NATO ally, or any major defense partner or major 
                security partner'';
                    (B) in paragraph (5), by striking ``or New 
                Zealand'' and inserting ``New Zealand, a major non-NATO 
                ally, or a major defense partner or major security 
                partner''; and
                    (C) by adding at the end the following new 
                paragraph:
    ``(7) A sale of major defense equipment, defense articles, or 
defense services that is the subject of an application for which 
notification has been provided under this subsection, including such a 
sale for which the number of such equipment, articles, or services is 
increased, shall not require subsequent notification under this 
subsection unless the dollar amount of the offer to sell or the sale 
exceeds 150 percent of the dollar amount of the offer to sell or the 
sale set forth in the notification provided.'';
            (3) in subsection (d)(2)(A), by striking ``or New Zealand'' 
        and inserting ``New Zealand, a major non-NATO ally, or a major 
        defense partner or major security partner''; and
            (4) by adding at the end the following new subsection:
    ``(j) Definitions.--In this section:
            ``(1) Major defense partner.--The term `major defense 
        partner' means--
                    ``(A) India; and
                    ``(B) any other country, as designated by the 
                Secretary of Defense.
            ``(2) Major non-nato ally.--The term `major non-NATO 
        ally'--
                    ``(A) has the meaning given the term in section 644 
                of the Foreign Assistance Act of 1961 (22 U.S.C. 
                2403)); and
                    ``(B) includes Taiwan, as required by section 1206 
                of the Security Assistance Act of 2002 (Public Law 107-
                228; 22U.S.C. 2321k note).
            ``(3) Major security partner.--The term `major security 
        partner' means--
                    ``(A) the United Arab Emirates;
                    ``(B) Bahrain;
                    ``(C) Saudi Arabia; and
                    ``(D) any other country, as designated by the 
                Secretary of Defense, in consultation with the 
                Secretary of State and the Director of National 
                Intelligence.''.
    (d) Assistant Secretary of Defense for Technology Cooperation and 
Security Review.--
            (1) In general.--Section 138 of title 10, United States 
        Code, is amended--
                    (A) in subsection (a)(1), by striking ``19'' and 
                inserting ``20''; and
                    (B) in subsection (b), by adding at the end the 
                following new paragraph:
    ``(9) One of the Assistant Secretaries is the Assistance Secretary 
of Defense for Technology Cooperation and Security Review. The 
Assistant Secretary shall serve under the authority, direction, and 
control of the Under Secretary of Defense for Acquisition and 
Sustainment. The principal duty of the Assistant Secretary shall be the 
overall supervision of policy and processes of the Department of 
Defense for technology cooperation and security review in the context 
of foreign military sales and direct commercial sales.''.
            (2) Conforming amendment.--Section 5315 of title 5, United 
        States Code, is amended by striking ``Assistant Secretaries of 
        Defense (19)'' and inserting ``Assistant Secretaries of Defense 
        (20)''.
    (e) 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.''.
    (f) Expedited Deliveries to Priority Foreign Purchasers.--
            (1) Acquisition strategies.--
                    (A) In general.--With respect to a foreign country 
                or capability identified in guidance issued under 
                subsection (a)(2) as a regional or country-level 
                foreign defense capability-building priority, the 
                Secretary of Defense 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 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.
    (g) Modification of Authority for Sales to United States Companies 
for Incorporation Into End Items.--Section 30(a)(2) of the Arms Export 
Control Act (22 U.S.C. 2770(a)(2)) is amended by inserting ``or for the 
purpose of providing defense capabilities through provision of a 
service'' after ``to be sold by such a company''.
    (h) Treatment of National Technology and Industrial Base as 
Domestic Source Under Defense Production Act of 1950.--Section 
702(7)(A) of the Defense Production Act of 1950 (50 U.S.C. 4552(7)(A)) 
is amended by striking ``the United States or Canada'' and inserting 
``the United States, any other country, the persons or organizations 
within the national technology and industrial base, or Japan''.
    (i) Definitions.--In this section:
            (1) Defense acquisition workforce.--The term ``defense 
        acquisition workforce'' means the Department of Defense 
        acquisition workforce described in chapter 87 of title 10, 
        United States Code.
            (2) Security cooperation workforce.--The term ``security 
        cooperation workforce'' has the meaning given the term in 
        section 384 of title 10, United States Code.
                                 <all>