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Title 10, Armed ForcesRelease 119-110

§2350b Cooperative Projects Under Arms Export Control Act: Acquisition of Defense Equipment

Title 10 › Subtitle A — General Military Law › PART IV — SERVICE, SUPPLY, AND PROPERTY › CHAPTER 138 — COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER COUNTRIES › SUBCHAPTER II — OTHER COOPERATIVE AGREEMENTS › § 2350b

Last updated Sep 23, 2026|Official source

Summary

When the President gives the Secretary of Defense the authority under section 27(d) of the Arms Export Control Act (22 U.S.C. 2767(d)), the Secretary can use Department of Defense contracting rules to make and manage contracts and obligations for those cooperative projects. Chapter 137 of title 10 and other procurement laws apply to those contracts unless a waiver in this law or another law allows otherwise. The Secretary can require that certain prime contracts or subcontracts go to particular contractors to support the project. When contracting outside the United States, the Secretary may waive many U.S. legal rules about how contracts are formed, their terms, U.S.-made preferences, or how work is performed—but not the Arms Export Control Act or section 2304 of title 10—and only if the Secretary finds the waiver is needed to greatly improve standardization, rationalization, and interoperability. That waiver power can be delegated only to the Deputy Secretary of Defense or the Acquisition Executive for the Office of the Secretary of Defense. The Secretary must tell Congress whenever he requires a specific contractor or subcontractor and must also report any waiver used, unless the information was already given in the President’s report under section 27(e). The Secretary may let a foreign project participant or a NATO organization make a contract that meets U.S. needs if it will significantly improve standardization, rationalization, and interoperability. Unless a waiver applies, such contracts should be competitive and allow U.S. firms to compete. If a partner or NATO makes a contract for the project, that contract may use the partner’s own contracting rules. The Secretary can agree to dispose of jointly bought project property, including transferring or selling the U.S. share, with payment handled as the cooperative agreement says. The Secretary may not waive Treasury financial-management duties or U.S. cargo preference laws, including section 2631 of title 10 and 46 U.S.C. 55305.

Full Legal Text

Title 10, §2350b

Armed Forces, Source: USLM XML via OLRC

(a)(1)If the President delegates to the Secretary of Defense the authority to carry out section 27(d) of the Arms Export Control Act (22 U.S.C. 2767(d)), relating to cooperative projects (as defined in such section), the Secretary may utilize his authority under this title in carrying out contracts or obligations incurred under such section.
(2)Except as provided in subsection (c), chapter 137 of this title shall apply to such contracts (referred to in paragraph (1)) entered into by the Secretary of Defense. Except to the extent waived under subsection (c) or some other provision of law, all other provisions of law relating to procurement, if otherwise applicable, shall apply to such contracts entered into by the Secretary of Defense.
(b)When contracting or incurring obligations under section 27(d) of the Arms Export Control Act for cooperative projects, the Secretary of Defense may require subcontracts to be awarded to particular subcontractors in furtherance of the cooperative project.
(c)(1)Subject to paragraph (2), when entering into contracts or incurring obligations under section 27(d) of the Arms Export Control Act outside the United States, the Secretary of Defense may waive with respect to any such contract or subcontract the application of any provision of law, other than a provision of the Arms Export Control Act or section 2304 1 of this title, that specifically prescribes—
(A)procedures to be followed in the formation of contracts;
(B)terms and conditions to be included in contracts;
(C)requirements for or preferences to be given to goods grown, produced, or manufactured in the United States or in United States Government-owned facilities or for services to be performed in the United States; or
(D)requirements regulating the performance of contracts.
(2)A waiver may not be made under paragraph (1) unless the Secretary determines that the waiver is necessary to ensure that the cooperative project will significantly further standardization, rationalization, and interoperability.
(3)The authority of the Secretary to make waivers under this subsection may be delegated only to the Deputy Secretary of Defense or the Acquisition Executive designated for the Office of the Secretary of Defense.
(d)(1)The Secretary of Defense shall notify the Congress each time he requires that a prime contract be awarded to a particular prime contractor or that a subcontract be awarded to a particular subcontractor to comply with a cooperative agreement. The Secretary shall include in each such notice the reason for exercising his authority to designate a particular contractor or subcontractor, as the case may be.
(2)The Secretary shall also notify the Congress each time he exercises a waiver under subsection (c) and shall include in such notice the particular provision or provisions of law that were waived.
(3)A report under this subsection shall be required only to the extent that the information required by this subsection has not been provided in a report made by the President under section 27(e) of the Arms Export Control Act (22 U.S.C. 2767(e)).
(e)(1)In carrying out a cooperative project under section 27 of the Arms Export Control Act, the Secretary of Defense may agree that a participant (other than the United States) or a NATO organization may make a contract for requirements of the United States under the project if the Secretary determines that such a contract will significantly further standardization, rationalization, and interoperability. Except to the extent waived under this section or under any other provision of law, the Secretary shall ensure that such contract will be made on a competitive basis and that United States sources will not be precluded from competing under the contract.
(2)If a participant (other than the United States) in such a cooperative project or a NATO organization makes a contract on behalf of such project to meet the requirements of the United States, the contract may permit the contracting party to follow its own procedures relating to contracting.
(f)In carrying out a cooperative project, the Secretary of Defense may also agree to the disposal of property that is jointly acquired by the members of the project without regard to any laws of the United States applicable to the disposal of property owned by the United States. Disposal of such property may include a transfer of the interest of the United States in such property to one of the other governments participating in the cooperative agreement or the sale of such property. Payment for the transfer or sale of any interest of the United States in any such property shall be made in accordance with the terms of the cooperative agreement.
(g)Nothing in this section shall be construed as authorizing the Secretary of Defense—
(1)to waive any of the financial management responsibilities administered by the Secretary of the Treasury; or
(2)to waive the cargo preference laws of the United States, including section 2631 of this title and section 55305 of title 46.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

Chapter 137 of this title, referred to in subsec. (a)(2), was repealed by Pub. L. 116–283, div. A, title XVIII, § 1881(a), Jan. 1, 2021, 134 Stat. 4293, effective Jan. 1, 2022, in conjunction with the transfer and reorganization of acquisition provisions in this title by Pub. L. 116–283, div. A, title XVIII, Jan. 1, 2022, 134 Stat. 4149. For definition of “chapter 137 legacy provisions”, see section 3016 of this title. The Arms Export Control Act, referred to in subsec. (c)(1), 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 Intercourse. For complete classification of this Act to the Code, see

Short Title

note set out under section 2751 of Title 22 and Tables. section 2304 of this title, referred to in subsec. (c)(1), was repealed by Pub. L. 116–283, div. A, title XVIII, §§ 1801(d), 1881(a), Jan. 1, 2021, 134 Stat. 4151, 4293, effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law. Subsecs. (a) to (l) of section 2304 were transferred to various provisions in chapter 221 of this title, with the same

Effective Date

and conditions, by Pub. L. 116–283, div. A, title XVIII, § 1811(c)(2)–(5), (d)(2)–(9), Jan. 1, 2021, 134 Stat. 4165–4170.

Amendments

2021—Subsec. (c)(1). Pub. L. 116–283, which directed that each reference in the text of title 10 to a section that was redesignated by title XVIII of Pub. L. 116–283, as such section was in effect before the redesignation, be amended by striking such reference and inserting a reference to the appropriate redesignated section, was not executed in introductory provisions with respect to “section 2304”, which was redesignated as multiple sections. 2006—Subsec. (g)(2). Pub. L. 109–304 substituted “section 55305 of title 46” for “section 901(b) of the Merchant Marine Act, 1936 (46 U.S.C. App. 1241(b))”. 2004—Subsec. (g). Pub. L. 108–375, § 1084(d)(19)(A), inserted “the Secretary of Defense” after “authorizing” in introductory provisions. Subsec. (g)(1). Pub. L. 108–375, § 1084(d)(19)(B), struck out “the Secretary of Defense” before “to waive”. 1996—Subsec. (c)(1). Pub. L. 104–106, § 4321(b)(10)(A), inserted “prescribes” after “specifically” in introductory provisions and struck out “prescribe” before “procedures” in subpar. (A), before “terms” in subpar. (B), and before “requirements” in subpars. (C) and (D). Subsec. (d)(1). Pub. L. 104–106, § 4321(b)(10)(B), struck out “to” after “subcontract”. Subsec. (e)(1). Pub. L. 104–106, § 1335(1), inserted “or a NATO organization” after “United States)”. Subsec. (e)(2). Pub. L. 104–106, § 1335(2), substituted “such a cooperative project or a NATO organization” for “a cooperative project”. 1989—Pub. L. 101–189 renumbered section 2407 of this title as this section and substituted “Cooperative projects under Arms Export Control Act: acquisition of defense equipment” for “Acquisition of defense equipment under cooperative projects” as section catchline. 1986—Pub. L. 99–661, § 1103(b)(2)(A), struck out “North Atlantic Treaty Organization” before “cooperative projects” in section catchline. Subsec. (a)(1). Pub. L. 99–661, § 1103(b)(1)(A), struck out “North Atlantic Treaty Organization (NATO)” before “cooperative projects”. Subsec. (c)(2). Pub. L. 99–661, § 1103(b)(1)(B), struck out “NATO” after “will significantly further”. Subsec. (e). Pub. L. 99–661, § 1103(b)(1)(C), struck out “NATO” after “will significantly further” in par. (1) and after “United States) in a” in par. (2). Subsec. (g)(2). Pub. L. 99–661, § 1343(a)(15), substituted “section 2631 of this title and section 901(b) of the Merchant Marine Act, 1936 (46 U.S.C. App. 1241(b))” for “the Military Cargo Preference Act of 1904 (10 U.S.C. 2631) and the Cargo Preference Act of 1954 (46 U.S.C. 1241(b))”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2021 AmendmentAmendment 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 1996 AmendmentFor

Effective Date

and applicability of amendment by section 4321(b)(10) of Pub. L. 104–106, see section 4401 of Pub. L. 104–106, set out as a note under section 2220 of this title.

Reference

Citations & Metadata

Citation

10 U.S.C. § 2350b

Title 10, Armed Forces

Last Updated

Sep 23, 2026

Release point: 119-110