TREATIES AND OTHER INTERNATIONAL ACTS SERIES 06-1107.1 

________________________________________________________________________ 

DEFENSE 

Test and Evaluation 

 Memorandum of Understanding Between 

the UNITED STATES OF AMERICA 

and the UNITED KINGDOM OF 

GREAT BRITAIN AND NORTHERN IRELAND 

Signed at Washington and London 

October 18 and November 7, 2006 

with 

Annexes 
 NOTE BY THE DEPARTMENT OF STATE 

 Pursuant to Public Law 89—497, approved July 8, 1966 

(80 Stat. 271; 1 U.S.C. 113)—

“. . .the Treaties and Other International Acts Series issued 

under the authority of the Secretary of State shall be competent 

 evidence . . . of the treaties, international agreements other than 

treaties, and proclamations by the President of such treaties and 

international agreements other than treaties, as the case may be, 

therein contained, in all the courts of law and equity and of maritime 

jurisdiction, and in all the tribunals and public offices of the 

United States, and of the several States, without any further proof 

or authentication thereof.” 
 UNITED KINGDOM OF GREAT BRITAIN 

 AND NORTHERN IRELAND 

 Defense: Test and Evaluation 

 Memorandum of understanding signed at 

 Washington and London 

 October 18 and November 7, 2006; 

 Entered into force November 7, 2006. 

 With annexes. 
MEMORANDUM OF UNDERSTANDING

BETWEEN

THE DEPARTMENT OF DEFENSE

OF THE UNITED STATES OF AMERICA

AND

THE SECRETARY OF STATE FOR DEFENCE

OF THE UNITED KINGDOM OF GREAT BRITAIN AND

NORTHERN IRELAND

FOR

TEST AND EVALUATION PROGRAM (TEP COOPERATION

(SHORT TITLE: TEP MOU)

DATE: October 16, 2006

THIS DOCUMENT IS CERTIFIED TO BE A TRUE COPY

CERTIFIED BY: THOMAS BLANN, SES
TABLE OF CONTENTS 

INTRODUCTION 3

SECTION I

DEFINITIONS 4

SECTION II

OBJECTIVES 9

SECTION HI

SCOPE OF WORK 10

SECTION IV

MANAGEMENT (ORGANIZATION AND RESPONSIBILITY) 13

SECTION V

FINANCIAL PROVISIONS 17

SECTION VI

CONTRACTING PROVISIONS 21

SECTION VII

PROJECT EQUIPMENT 23

SECTION VIII

DISCLOSURE AND USE OF INFORMATION -26

SECTION IX

CONTROLLED UNCLASSIFIED INFORMATION 32

SECTION X

VISITS TO ESTABLISHMENTS 34

SECTION XI

SECURITY 35

SECTION XII

THIRD PARTY SALES AND TRANSFERS 38

SECTION XIII

LIABILITY AND CLAIMS 40

SECTION XIV

CUSTOMS DUTIES, TAXES, AND SIMILAR CHARGES 41

SECTION XV

SETTLEMENT OF DISPUTES 42

SECTION XVI

GENERAL PROVISIONS 43

SECTION XVII

AMENDMENT, TERMINATION, ENTRY INTO EFFECT, AND DURATION 44

ANNEX A

MODEL RECIPROCAL USE OF TEST FACILITIES (RUTF) PROJECT ARRANGEMENT

(PA) A-1

APPENDIX 1 - COST ESTIMATE MODEL A-10

APPENDIX 2 -- INVENTORY OF PROJECT EQUIPMENT TRANSFERS A-11

ANNEX B

MODEL COOPERATIVE TEST & EVALUATION (CTE) PROJECT ARRANGEMENT

(PA) B-1

APPENDIX 1 - COOPERATIVE PROJECT PERSONNEL (CPP) B-i2

APPENDIX 2 - INVENTORY OF PROJECT EQUIPMENT TRANSFERS B-16

ANNEX C

MODEL PROJECT EQUIPMENT TRANSFER (PET) FORM C-1

2
INTRODUCTION

The Department of Defense of the United States of America (U.S. DoD) and the Secretary of

State for Defence of the United Kingdom of Great Britain and Northern Ireland (UK MoD),

hereinafter referred to as the "Participants":

Recognizing that the Agreement Concerning Defence Cooperation Arrangements of

May 27, 1993 between the Government of the United States of America and the

Government of the United Kingdom of Great Britain and Northern Ireland (Chapeau

Agreement) will apply to this MOU;

Recognizing the NATO Agreement for the Mutual Safeguarding of Secrecy of Inventions

Relating to Defense and for Which Applications for Patents Have Been Made, done in

Paris on September 21, 1960, and its implementing procedures (NATO Agreement on

Secrecy of Inventions and its Implementing Procedures);

Recognizing the General Security Agreement between the Government of the United

Kingdom of Great Britain and Northern Ireland and the Government of the United States

of America, dated April 14, 1961, as amended, including the Security Implementing

Arrangement thereto, of January 27, 2003 (Security Agreement);

Having a common interest in defense;

Recognizing the benefits to be obtained from standardization, rationalization, and

interoperability of military equipments;

Desiring to improve their mutual conventional defense capabilities through the

application of emerging technology;

Having a mutual need to engage in a broad range of cooperative or reciprocal Test and

Evaluation (T&E) Activities to satisfy common operational requirements; and

Having independently conducted testing of the applications of various technologies, and

having recognized the benefits of cooperation in the T&E arena;

Have reached the following understandings:

3
SECTION I

DEFINITIONS

The Participants have jointly decided upon the following definitions for terms used in this MOU:

Approval in Principle (AIP) The Performing Participant Managing Agent's preliminary

acceptance of a proposed RUTF PA, which will enable both

Participants to enter into technical discussions to formulate

implementation plans, negotiate costs, and develop a RUTF PA for

final approval.

Classified Information Official information that requires protection in the interests of

national security and is so designated by the application of a

security classification marking. This Information may be in oral,

visual, magnetic, or documentary form or in the form of equipment

or technology.

Computer Data Base A collection of data recorded in a form capable of being processed

by a computer. This definition does not include Computer

Software.

Computer Program

Computer Software

Computer Software

Documentation

Contract

Contracting Agency

A set of instructions, rules, or routines recorded in a form that is

capable of causing a computer to perform a specific operation or

series of operations.

Computer Programs, source code, source code listings, design

details, algorithms, processes, flow charts, formulae, and related

materials that would enable the software to be reproduced,

recreated, or recompiled. Computer Software does not include

Computer Data Bases or Computer Software Documentation.

Owner's manuals, user's manuals, installation instructions,

operating instructions, and other similar items, regardless of

storage medium, that explain the capabilities of the Computer

Software or provide instructions for using the Computer Software.

Any mutually binding legal relationship under national laws that

obligates a Contractor to furnish supplies or services, and obligates

one or both of the Participants to pay for them.

The entity within the government organization of a Participant,

which has authority to enter into, administer, or terminate

Contracts.

4
Contracting Officer

Contractor

Contractor Support

Personnel

Controlled Unclassified

Information

Cooperative Project

Personnel (CPP)

Financial Costs

A person representing a Contracting Agency of a Participant who

has the authority to enter into, administer, or terminate Contracts.

Any entity awarded a Contract by a Participant's Contracting

Agency.

Persons specifically identified as providing administrative,

managerial, scientific, or technical support services to a Participant

under a support Contract that prohibits those persons from using

Information received under the Contract for any purpose other

than those authorized under this MOU.

Unclassified Information to which access or distribution

limitations have been applied in accordance with applicable

national laws or regulations. It could include Information that has

been declassified but remains controlled.

Military members or civilian employees of a Participant assigned

under a specific Project Arrangement (PA) who perform

managerial, engineering, technical, administrative, contracting,

logistics, financial, planning, or other functions in furtherance of a

Cooperative Test and Evaluation Project Arrangement.

An implementing arrangement under this MOU that specifies the

provisions for cooperation on a specific TEP Activity.

The Participant on whose behalf a test effort is conducted at a Test

Facility of the Performing Participant.

Manufacture or other use in any part of the world by or for the

armed forces of either Participant.

The security office approved by national authorities to be

responsible for the security aspects of this MOU.

Any item of cost that is easily and readily identified to a.specific

unit of work or output within the Test Facility where the use

occurred that would not have been incurred if such use had not

occurred; it may include costs of labor, materials, facilities,

utilities, equipment, supplies, and any other resources of the Test

Facility that are consumed or damaged in connection with the use

or the maintenance of the Test Facility for the purposes of the use.

Any costs that, due to their nature, will be paid using monetary

contributions from the Participants.

Cooperative Test &

Evaluation (CTE) Project

Arrangement (PA)

Customer Participant

Defense Purposes

Designated Security

Authority (DSA)

Direct Cost

(Applies only to U.S. DoD,

but correlates to UK MoD

Variable Costs.)

5
Fixed Costs

(Applies only to UK MoD,

but correlates to U.S. DoD

Indirect Costs.)

Host Participant

Indirect Cost

(Applies only to U.S. DoD,

but correlates to UK MoD

Fixed Costs.)

Information

Non-financial Costs

Patent

Any item of cost that is not easily and readily identified to a

specific unit of work or output within a Test Facility where the use

occurred. These costs may include salary, insurance, cost of

capital, administration costs, general overheads, and any other

resources of the Test Facility that are related to the operation or

the maintenance of the Test Facility.

The Participant to which Cooperative Project Personnel are

assigned for duty pursuant to a CTE PA.

Any item of cost that is not easily and readily identified to a

specific unit of work or output within the Test Facility where the

use occurred; may include general and administrative expenses for

such activities as supporting base operations, manufacturing,

supervision, procurement of office supplies, and utilities that are

accumulated costs allocated among several users.

Any information provided to, generated in, or used in a TEP

Activity under this MOU regardless of form or type, including, but

not limited to, that of a scientific, technical, business, or financial

nature, and also including photographs, reports, manuals, threat

data, experimental data, test data, Computer Software, designs,

specifications, processes, techniques, inventions, drawings,

technical writings, sound recordings, pictorial representations, and

other graphical presentations, whether in magnetic tape, computer

memory, or any other form and whether or not subject to

copyright, Patent, or other legal protections.

Any costs that, due to their nature, will be met using non-monetary

contributions from the Participants.

The Participant to which Cooperative Project Personnel belong.

A signatory to this MOU represented by its military and civilian

personnel. Contractors and Contractor Support Personnel will not

be representatives of a Participant under this MOU.

Grant by the Government of the right to exclude others from

making, using, or selling an invention. The term refers to any and

all Patents including, but not limited to, Patents of

implementation, improvement or addition, petty Patents; utility

models, appearance design Patents, registered designs, and

inventor certificates or like statutory protection as well as

divisions, reissues, continuations, renewals, and extensions of any

of these.

Parent Participant

Participant

6
Performing Participant

Preferred Rate

(Applies only to UK MoD)

Prospective Contractor

Reciprocal Use of Test

Facilities (RUTF) PA

The Participant conducting a test effort at its Test Facilities on

behalf of the Customer Participant.

The special rate some non-governmental T&E facilities in the

United Kingdom charge the UK MoD for T&E services; which is

less than the rate charged to commercial customers.

Information not generated in the performance of a TEP Activity.

Any test articles, material, equipment, end item, subsystem,

component, special tooling or test equipment jointly acquired or

provided for use in a TEP PA or a Project Equipment Transfer

(PET).

Information generated in the performance of a TEP Activity.

Any invention or discovery formulated or made (conceived or

"first actually reduced to practice") in the course of work

performed under a PA. The term "first actually reduced to

practice" means the first demonstration, sufficient to establish to

one skilled in the art to which the invention pertains, of the

operability of an invention for its intended purpose and in its

intended environment.

Any entity that seeks to enter into a Contract awarded by a

Participant's Contracting Agency and that, in the case of a

solicitation involving the release of export-controlled Information,

is eligible to receive such information.

An implementing arrangement under this MOU that specifies the

cost, schedule and performance aspects of a test effort conducted

by the Performing Participant's test facility for the Customer

Participant.

Project Background

Information

Project Equipment

Project Foreground

Information

Project Invention

TEP The U.S. DoD – UK MoD Test & Evaluation Program.

TEP Activity Any activity in support of Information exchange, Working

Groups, Project Arrangements and PETs, as specified in Section

HI (Scope of Work) of this MOU.

TEP Project Arrangement An implementing arrangement under this MOU that can be either

a Reciprocal Use of Test Facilities (RUTF) PA or a Cooperative

Test & Evaluation (CTE) PA.
Test and Evaluation (T&E)

Test Facility

Third Party

Variable Costs

(Applies only to

UK MoD, but correlates to

U.S. DoD Direct Costs.)

Working Group

The overall process of data taking, data reduction, and the analysis

of that data for a specific purpose or application.

Range, facility, or other capability where testing of defense

equipment may be performed.

A government other than the government of a Participant and any

person or other entity whose government is not the government of

a Participant.

Any item of cost that is easily and readily identified to a specific

unit of work or output within the Test Facility where the use took

place, which would not have been incurred if that use had not

occurred. This may include: travel and subsistence allowances for

personnel involved in support of activities; accommodation and

messing; running costs of military equipment/assets; repairs; raw

materials, consumable stores and utilities; and services and

facilities obtained under existing MoD Contracts.

Any group authorized to conduct TEP-related T&E activities by

the Management Agents (MAs), in accordance with Section III

(Scope of Work) and Section IV (Management).

8
SECTION II

OBJECTIVES

2.1 This MOU establishes a comprehensive framework for implementing a program of

cooperation on mutually determined topics related to defense Test & Evaluation (T&E). Specific

objectives of this MOU are:

2.1.1 to share test resources through reciprocal and cooperative use of Test Facilities,

ranges, and other test capabilities and testing tools;

2.1.2 to provide for the conduct of cooperative test and evaluation of systems of shared

interest;

2.1.3 to conduct joint T&E-related tests and experiments to advance test technologies

and procedures;

2.1.4 to conduct cooperative development of test capabilities, test procedures and

methods, and test standards and criteria;

2.1.5 to exchange testing-related Information such as test capability specifications, test

criteria, standards, procedures, lessons learned, and certain test data;

2.1.6 to provide for the transfer of test technologies and procedures; and

2.1.7 to maximize the effective utilization of each Participant's Test Facilities.

2.2 The Participants intend to use their best efforts to accommodate testing requirements of

the other Participant. Each Participant may, however, refuse to conduct a proposed TEP Activity

in its country on a case-by-case basis.

9
SECTION III

SCOPE OF WORK

3.1 The scope of work for this MOU will include the following TEP Activities:

3.1.1 accommodation of testing requirements on a customer-reimbursable basis under

the provisions of a Reciprocal Use of Test Facilities Project Arrangement (RUTF

PA). This may include access to, or transfer of, test instrumentation and other

testing tools;

3.1.2 conduct of Cooperative T&E (CTE PA) on systems of shared interest;

3.1.3 conduct of joint tests and experiments to advance the state of the art of test

technology;

3.1.4 cooperative development of new or existing test instrumentation, equipment,

other testing tools and Test Facilities;

3.1.5 cooperative development of testing criteria, standards, and procedures;

3.1.6 exchange of information on T&E policy, testing criteria, standards and

procedures, and other test-related or test-derived information including, but not

limited to, doctrine, tactics and operational requirements related to TEP;

3.1.7 transfer of test technologies and procedures;

3.1.8 familiarization with each other's facilities and identification of potential

cooperative T&E opportunities; and

3.1.9 assignment of personnel between the Participants to facilitate development of test

capabilities and to assist with the conduct of T&E efforts.

3.2 The following mechanisms will be used to undertake the TEP Activities described in

paragraph 3.1:

3.2.1 Information Exchange:

3.2.1.1 Information exchange will take place on an equitable basis in all areas

concerning TEP. Computer Data Bases, Computer Software and

Computer Software Documentation may be exchanged as Information

under this MOU. Information may be exchanged for any purpose

concerning TEPs, including harmonizing the Participants' respective TEP

requirements and for formulating, developing, and negotiating any TEP

10
Activity. Information exchange need not necessarily coincide in time,

technical field, or in the form of Information.

3.2.1.2 Computer Data Bases, Computer Software or Computer Software

Documentation associated with TEP Activities may be transferred under

this MOU in accordance with national procedures.

3.2.2 Working Groups (WGs):

3.2.2.1 WGs may be established to explore, study, and report on specific T&E

issues. A WG normally will be limited in scope to a well-defined area and

will endeavor to assess the T&E issue based on information provided by

both Participants in such a way as to arrive at a jointly determined position

within a set time limit. Each WG will have its own written terms of

reference (TOR).

3.2.3 TEP Project Arrangements (PAs):

3.2.3.1 Reciprocal Use of Test Facilities (RUTF) PA: This type of PA will

include specific provisions, consistent with this MOU, that specify the

Performing and Customer Participants' responsibilities concerning the

objectives, scope of work, estimated test schedule, management structure,

financial provisions, contracting provisions, Project Equipment Transfers

(PETs) (if required), additional disclosure and use-of-information

provisions, security classification for the PA, and other special provisions

as required. An Approval in Principle (AIP) will be required prior to

negotiating a RUTF PA.

3.2.3.2 Cooperative T&E (CTE) PA: This type of PA will include specific

provisions, consistent with this MOU, concerning the objectives, scope of

work, sharing of work, management structure, financial provisions (if

required), contracting provisions, PETs (if required), additional disclosure

and use of information provisions, security classification for the

applicable PA and other special provisions as required.

3.2.3.3 The Participants recognize that there may be instances where a project

contains elements including cooperative effort as well as the reciprocal

use of Test Facilities. Such projects will be treated as cooperative

projects. Equitability will be required in all such projects.

3.2.4 Project Equipment Transfer:

3.2.4.1 The Participants recognize that it may be necessary to transfer Project

Equipment for the purpose of implementing this MOU but not for the

purposes of a specific TEP PA. In such cases, the Participants may

conclude PETs consistent with the model at Annex C.

1 1
3.2.5 Familiarization Visits:

3.2.5.1 Familiarization visits may occur, in accordance with Section X (Visits to

Establishments), to promote awareness of each other's facilities and to

identify potential cooperative T&E opportunities.

3.3 Acquisition or production programs that may evolve from cooperation under one or more

PAs under this MOU are outside the scope of this MOU and require conclusion of separate

arrangements.

12
SECTION IV

MANAGEMENT (ORGANIZATION AND RESPONSIBILITY)

4.1 The Director, Operational Test & Evaluation (DOT&E), Office of the Secretary of

Defense (or his/her successor in the event of reorganization) is designated U.S. MOU Director

(U.S. MD). The Director General (Research & Technology) (or his/her successor in the event of

reorganization) is designated UK MOU Director (UK MD). The MDs will consult or meet as

mutually determined. The chairperson for each meeting will be the host Participant's MD or

his/her designee. During such meetings, all decisions will be made unanimously. In the event

that the Participants' representatives are unable to reach a timely decision on an issue, they will

refer the issue to their respective higher authority for resolution. In the meantime, approved TEP

Activities will continue to be implemented without interruption until the issue is resolved by

higher authority. The MDs will be responsible for:

4.1.1 monitoring implementation of this MOU and exercising executive-level oversight;

4.1.2 monitoring the overall use and effectiveness of the MOU;

4.1.3 recommending amendments to this MOU to the Participants;

4.1.4 resolving issues brought forth by the Management Agents; and

4.1.5 approving PAs pursuant to paragraph 3.2.3 and the Participants' respective

national procedures.

4.2 The Principal Deputy Director, Operational Test & Evaluation (PD, OT&E) (or his/her

successor in the event of reorganization or his/her designee), is designated U.S. Management

Agent (U.S. MA) for the MOU. The Director of Analysis, Experimentation and Simulation

(DAES) (or his/her successor in the event of reorganization or his/her designee) is designated

UK Management Agent (UK MA). The MAs will be responsible for:

4.2.1 monitoring and evaluating the work conducted under each TEP Activity and

providing guidance and direction as necessary;

4.2.2 designating points of contact (POCs) and exercising overall supervision for

Information exchanges pursuant to paragraph 3.2.1;

4.2.3 approving the formation of WGs and their TORs pursuant to paragraph 3.2.2;

4.2.4 granting AIP for RUTF PAs, as specified in paragraph 4.7 below;

4.2.5 developing PAs pursuant to paragraph 3.2.3 and recommending approval of such

PAs to the MDs;

13
4.2.6 establishing a Steering Committee (SC), when considered necessary, to monitor

conduct of a CTE PA and exercising overall supervision of the SC members, if

established, a Joint Project Office (JPO), if established, or Project Officers (POs)

(if no SC or JPO is established);

4.2.7 obtaining Designated Security Authority (DSA) approval for Project Security

Instructions and Classification Guides for CTE PAs that contain provisions for the

generation or exchange of Classified Information;

4.2.8 developing and entering into PETs pursuant to paragraph 3.2.4;

4.2.9 approving familiarization visits pursuant to paragraph 3.2.5;

4.2.10 monitoring Third Party Sales and Transfers authorized in accordance with Section

XII (Third Party Sales and Transfers);

4.2.11 Discussing and employing their best efforts to resolve, with one or both

Participants' export control authorities, any export control issues raised by the

POs;

4.2.12 approving a Financial Management Procedures Document (FMPD) pursuant to

paragraph 5.5, in the absence of an SC; and

4.2.13 forwarding, when necessary, issues to the MDs for resolution.

4.3 Each WG established by the MAs under this MOU will be responsible for:

4.3.1 submitting a proposed TOR to the MAs for approval;

4.3.2 conducting its assigned tasks and providing periodic progress reports to the

MAs, including requesting further guidance as necessary; and

4.3.3 submitting final reports to the MAs for submission to the MDs.

4.4 If an SC is established under a particular PA, it will be responsible for:

4.4.1 providing policy and management direction to the POs during PA execution;

4.4.2 monitoring overall implementation, including technical, cost, and schedule

performance against requirements;

4.4.3 approving plans for transfers of Project Equipment or disposal of jointly acquired

Project Equipment, in accordance with Section VII;

4.4.4 monitoring export control arrangements required to implement this MOU and, if

applicable, discussing and resolving export control issues with one or both

14
Participants' export control authorities;

4.4.5 maintaining oversight of the security aspects of a project, including preparing a

Project Security Instruction and a Classification Guide in the event that a CTE PA

contains provisions for the generation or exchange of Classified Information;

4.4.6 approving assignment of personnel working on a project at the other Participant's

facilities in accordance with the provisions set out in Appendix 1 to Annex B;

4.4.7 establishing and approving the detailed financial procedures of a CTE PA through

an FMPD in the event that one Participant contracts on behalf of the other

Participant or on behalf of both Participants;

4.4.8 resolving issues brought forward by the POs; and

4.4.9 reporting status and activity of assigned PAs on an annual basis to the MAs and

MDs.

4.5 In accordance with the terms of any TEP PA, the POs will have primary responsibility for

effective implementation, efficient management, and direction of their assigned PA including

technical, cost, and schedule performance against requirements. Additionally, the POs will have

the responsibilities under paragraph 4.4 if no SC is established for their CTE PA, except that the

MAs will be responsible for approving the FMPD and resolving issues brought forth by the POs.

The POs will also maintain a list of all PETs by either of the Participants under a TEP PA.

4.6 In accordance with the terms of an approved CTE PA and with the provisions set out in

Appendix 1 to Annex B of this MOU attached to the approved CTE PA, a Participant may assign

Cooperative Project Personnel (CPP) to the JPO, or to the other Participant's facilities to assist in

the implementation of an approved PA.

4.7 Special Procedures for RUTF PAs. The following special procedures will apply only to

RUTF PAs:

4.7.1 The Customer Participant's MA will submit a project proposal to the Performing

Participant's MA. The project proposal will briefly describe the test effort

requested.

4.7.2 The Performing Participant's Test Facility will review the project proposal to

determine if it is able and willing to provide the requested test effort.

4.7.3 If the Performing Participant's MA determines that performing the requested test

effort is feasible, he or she will notify the Customer Participant's MA of an AIP.

AIP does not constitute a commitment to perform the test effort, but provides

authority for the Participants to proceed with development and approval of the

RUTF PA. If AIP will not be granted, the Performing Participant's MA will

notify the Customer Participant's MA as soon as possible.

15
4.7.4 Each Participant's MA will submit a 12-month forecast of proposed tests to the

other Participant's MA for AIP in accordance with a mutually determined

schedule. Out-of-cycle project proposals may also be submitted for AIP to the

Performing Participant's MA.

4.8 The MAs, SCs, and/or POs will consult or meet as required, but at least annually. The

chairperson for each meeting will be the senior representative of the host Participant. During

such meetings, all decisions will be made unanimously. In the event that the Participants'

representatives are unable to reach a timely decision on an issue, they will refer the issue to their

respective higher authority for resolution. In the meantime, approved PM will continue to be

implemented without interruption under the direction of the SC and/or POs while the issue is

being resolved by higher authority.

16
SECTION V

FINANCIAL PROVISIONS

5.1 This MOU creates no financial commitments regarding individual TEP Activities.

Detailed descriptions of the financial provisions for a specific project, including the total cost of

the project and each Participant's cost share, will be contained in the specific RUTF or CTE PA.

5.2 For RUTF PAs, charges between Participants will be mutually determined on a case-bycase basis and specified in the PA.

5.2.1 For the U.S. DoD, charges will consist of Direct Costs and applicable Indirect

Costs. Direct Costs, except for the cost of military personnel chargeable to the

Customer Participant, will not be greater than what one component of the

Performing Participant would charge to another component of the Performing

Participant for the type and scope of the services provided. If required, Indirect

Costs may also be charged depending on the nature and specifics of the effort.

Indirect Costs charged to the Customer Participant will be only those required by

the Performing Participant's laws and regulations.

5.2.2 For the UK MoD, T&E charges for services provided by government facilities

will consist of Variable Costs and applicable Fixed Costs. Variable Costs, with

the exception of the costs for military personnel chargeable to the Customer

Participant, will not exceed those which one component of the Performing

Participant would charge to another component of the Performing Participant for

the type and scope of the services provided. If necessary, and depending on the

nature and specifics of the T&E effort, Fixed Costs may also be charged. Fixed

Costs charged to the Customer Participant will only be those required by the

Performing Participant's laws and regulations. T&E services provided by nongovernmental facilities will be provided by the UK MoD only when the UK MoD

has established a Preferred Rate.

5.2.3 The methods used for determining charges for T&E services by the U.S. DoD

and UK MoD are deemed to be substantially equivalent.

5.3 For CTE PAs, each Participant will contribute its equitable share of the full Financial and

Non-Financial Costs, including overhead costs, administrative costs and cost of claims, and will

receive an equitable share of the results of each CTE PA as mutually determined.

5.4 The financial and non-financial provisions for a CTE PA, including the total cost of the

CTE PA and each Participant's share of the total cost, will be included in the CTE PA.

5.5 For each CTE PA, the POs will be responsible for establishing the detailed financial

management procedures under which the project will operate. Where necessary, these

17
procedures will be detailed in an FMPD proposed by the POs, and subject to the approval of the

MAs or SC, if one is established.

5.6 Each Participant will perform, or have performed, its tasks and will use its best efforts to

perform the tasks within the cost estimates specified in each PA. Each Participant will bear the

full costs it incurs for performing, managing, and administering its own activities under this

MOU and participation in each PA, including its share of the costs of any Contracts awarded

pursuant to paragraph 5.13.

5.7 The following costs will be borne entirely by the Participant incurring the costs or on

whose behalf the costs are incurred:

5.7.1 costs associated with any unique national requirements identified by a Participant;

and

5.7.2 any other costs not expressly stated as shared costs or any other costs outside the

scope of this MOU and its PAs.

5.8 For CTE PAs with shared costs that involve the establishment of a JPO with CPP

assignments to the other Participant's facilities or the JPO, the CTE PA will address the financial

and non-financial contributions required for JPO administration and associated support services

including, but not limited to, JPO costs of travel incurred in support of project efforts, JPO

training costs, Contract award, Contract administration, office space, security services,

information technology services, communications services, and supplies.

5.9 In addition to the shared costs of JPO administration and associated support services

costs described in paragraph 5.8, the costs of CPP in the JPO or assigned to the other

Participant's facilities will be borne as follows:

5.9.1 The Host Participant will bear the costs of all pay and allowances of Host

Participant personnel in the JPO;

5.9.2 The Parent Participant will bear the following CPP-related costs:

5.9.2.1 all pay and allowances;

5.9.2.2 transportation of the CPP, the CPP's dependents, and their personal

property to the place of assignment in the Host Participant's nation prior to

the CPP's commencement of a tour of duty in the JPO or field activity,

and return transportation of the foregoing from the place of assignment in

the Host Participant's nation upon completion or termination of the tour of

duty;

5.9.2.3 compensation for loss of, or damage to, the personal property of CPP or

the CPP's dependents, subject to the Parent Participant's laws and

regulations;

18
5.9.2.4 preparation and shipment of remains and funeral expenses in the

event of the death of the CPP or the CPP's dependents; and

5.9.2.5 all temporary duty costs, including travel costs, when such duty is carried

out pursuant to a unique requirement of the Parent Participant.

5.10 For CTE PAs that do not involve the establishment of a JPO, but do involve the

assignment of one Participant's CPP to the facilities of the other Participant, the Participants will

bear the costs as set forth in 5.9. The Host Participant will also be responsible for the following:

5.10.1 all temporary duty costs, including travel costs in connection with the

performance of any duty carried out in support of a CTE PA or pursuant to a

requirement of the Host Participant;

5.10.2 costs incurred as a result of a change in location of work ordered by the Host

Participant during the period of exchange; and

5.10.3 administrative and support costs such as CPP-related training, office space,

security services, information technology services, communication services,

supplies, and use of facilities and equipment necessary for the performance of

tasks assigned to CPP.

5.11 For PETs concluded pursuant to Annex C in which operator personnel from the providing

Participant are required, the responsibility for bearing all costs associated with such personnel,

including but not limited to salaries and overhead, transportation, and subsistence, will be

specified in the PET Form.

5.12 A Participant will promptly notify the other Participant if available funds will not be

adequate to fulfill its obligations as mutually determined under any TEP PA, or if it appears that

the cost estimates in a PA will be exceeded. The Participants will immediately consult with a

view toward continuation on a modified basis.

5.13 For CTE PAs where a Participant contracts on behalf of the other Participant or on behalf

of both Participants, the POs or SC as appropriate will be responsible for establishing the

detailed financial management procedures under which the PA will operate prior to the transfer

of funds between the Participants. The procedures, which will accord with the national

accounting and audit requirements of the Participants, will be detailed in an FMPD. Each

Participant will provide funds in the amounts and at the times set forth in the estimated schedule

for monetary contributions, as specified in the FMPD.

5.14 For CTE PAs, the Participants recognize that it may become necessary for one

Participant, with the written authority of the other Participant, to incur contractual or other

responsibilities for the benefit of the other Participant prior to the receipt of the other

Participant's funds. In the event that one Participant incurs such responsibilities, the other

Participant will make such funds available in such amounts and at such times as may be required

by the Contract or other responsibility, and where such performance or cancellation is clone

19
following prior consultation by the MAs, will pay its equitable share as mutually determined of

any damages and costs that may accrue from the performance or cancellation of the Contract or

other responsibility, in advance of the time such payments, damages, or costs are due. Such

consultation will be appropriately documented.

5.15 Each Participant will be responsible for the audit of its activities or its Contractors'

activities pursuant to a TEP PA. A Participant's audits will be in accordance with its own

national practices. For CTE PA efforts where funds are transferred between the Participants, the

receiving Participant will be responsible for the internal audit regarding administration of the

other Participant's funds in accordance with the receiving Participant's national practices. Audit

reports of such funds will be promptly made available by the receiving Participant to the other

Participant.

20
SECTION VI

CONTRACTING PROVISIONS

6.1 If either Participant determines that Contracting is necessary to fulfill its obligations

under the scope of work of any TEP PA, that Participant will contract in accordance with its

respective national laws, regulations, and procedures.

6.2 When one Participant contracts on its own behalf to perform a task under a PA, it will be

solely responsible for its own Contracting, and the other Participant will not be subject to any

liability arising from such Contracts without its prior written consent.

6.3 If the Participants determine that it is appropriate under a CTE PA that one Participant

contracts on behalf of the other Participant or for both Participants for tasks under that PA, the

relevant Contracting Agency will contract in accordance with its national laws, regulations, and

procedures. In such cases, appropriate implementing provisions will be specified in the

particular PA. If necessary to meet the requirements of a PA, the U.S. DoD or the UK MoD

Contracting Agency, as appropriate, will seek deviations from national regulations and

procedures wherever possible. Sources from both Participants' industries will be allowed to

compete on an equal basis for such Contracts. The Contracting Agency will be the exclusive

source for providing contractual direction and instructions to Contractors and prospective

Contractors.

6.4 For all Contracting activities performed by either Participant, the POs will, upon request,

be provided a copy of all statements of work prior to the development of invitations to

tender/negotiate or solicitations to ensure that they are consistent with the provisions of this

MOU and the applicable PA.

6.5 Each Participant's Contracting Agency will insert into its prospective Contracts (and

require its Contractors to insert in subcontracts) suitable provisions to satisfy the requirements of

this MOU, including Section VIII (Disclosure and Use of Information), Section IX (Controlled

Unclassified Information), Section XI (Security), and Section XII (Third Party Sales and

Transfers), and Section XVI (General Provisions), including suitable provisions to ensure

compliance with the Participants' respective export control laws and regulations, and any

corresponding provisions in the PAs. During the Contracting process, each Participant's

Contracting Officer will advise prospective Contractors of their obligation to notify the

Contracting Agency immediately if they are subject to any license or agreement that will restrict

that Participant's freedom to disclose Project Information or permit its use. The Contracting

Officer will also advise prospective Contractors to employ their best efforts not to enter into any

new agreement or arrangement that will result in such restrictions.

6.6 Each Participant will establish legal arrangements with its Contractors to ensure that its

Contractors do not retransfer or otherwise use export-controlled Information furnished by the

other Participant for any purpose other than the purposes authorized under this MOU. Such legal

arrangements will also provide that the Contractor will not retransfer the export-controlled

21
Information to another Contractor or subcontractor unless that Contractor or subcontractor has

been legally bound to limit use of the Information to the purposes authorized under this MOU.

Export-controlled Information furnished by one Participant under this MOU may be

retransferred by the other Participant to its Contractors only if the legal arrangements required by

this paragraph have been established.

6.7 Each Participant will establish legal arrangements with its Prospective Contractors to

ensure that its Prospective Contractors do not retransfer or otherwise use export-controlled

Information furnished by the other Participant for any purpose other than responding to a

solicitation issued in furtherance of the purposes authorized under this MOU. Prospective

Contractors will not be authorized any other end use if they are not awarded a Contract. Such

legal arrangements will also provide that the Prospective Contractors will not retransfer the

export-controlled Information to a prospective subcontractor unless that prospective

subcontractor has been legally bound to limit use of the export-controlled Information for the

purpose of responding to the solicitation. Export-controlled Information furnished by one

Participant under this MOU may be retransferred by the other Participant to its Prospective

Contractors only if the legal arrangements required by this paragraph have been established.

Upon request, either Participant will provide visibility into the identity of Prospective

Contractors and prospective subcontractors receiving export-controlled Information.

6.8 In the event a Participant's Contracting Agency is unable to secure adequate rights to use

and disclose Information as required by Section VIII (Disclosure and Use of Information), or is

notified by Contractors or prospective Contractors of any restrictions on the disclosure and use of

Project Information, that Participant's PO will notify the other Participant's PO of the

restriction(s). The Participants will immediately consult, at the appropriate level, to assess the

consequences and determine the way ahead.

6.9 Each Participant's PO will promptly advise the other Participant's PO of any cost growth,

schedule delay, or performance problems of any Contractor for which its Contracting Agency is

responsible. If a Contract has been awarded on behalf of the other Participant or for both

Participants, the Participant whose Contracting Agency is responsible for the Contract will

consult with the other Participant before terminating the Contract.

6.10 No requirement will be imposed by either Participant for work sharing or other industrial

or commercial compensation in connection with this MOU that is not in accordance with this

MOU.

22
SECTION VII

PROJECT EQUIPMENT

7.1 For the purpose of carrying out a TEP PA, each Participant may transfer, without charge

to the other Participant, such Project Equipment identified as being necessary for implementing a

TEP PA. The TEP PA will provide specific details of any transfer of Project Equipment. Project

Equipment identified at the time of TEP PA signature will be detailed in the RUTF PA as set out

in Annex A (Model RUTF PA) or the CTE PA as set out in Annex B (Model CTE PA). Project

Equipment which cannot be identified at the time of PA signature will be documented, when

identified, in a list to be developed and maintained by the POs in the format at Annexes A and B,

Appendix 2, Inventory of Project Equipment Transfers (PETs). Approval for all PETs will be in

accordance with national procedures.

7.2 For PETs concluded pursuant to Annex C, each Participant may transfer, without charge

to the other Participant, Project Equipment, in accordance with the model at Annex C (PET

Form). Approval for all PETs will be in accordance with national procedures.

7.3 Project Equipment transferred will be used by the receiving Participant for the purposes

specified in the PA or PET Form only. Project Equipment will remain the property of the

providing Participant. In addition, the receiving Participant will maintain the Project Equipment

in good order, repair, and operable condition. Unless the providing Participant has consented

that the transferred Project Equipment may be expended or otherwise consumed without

reimbursement to the providing Participant, the receiving Participant will return the Project

Equipment to the providing Participant in as good condition as received, reasonable wear and

tear excepted, or return the Project Equipment and pay the cost to restore the Project Equipment

to such condition. If the Project Equipment is damaged beyond economical repair, the receiving

Participant will return the Project Equipment to the providing Participant (unless otherwise

specified in writing by the providing Participant) and pay the replacement value as computed

pursuant to the providing Participant's national laws, regulations, and procedures. If the Project

Equipment is lost or stolen while in the custody of the receiving Participant, the receiving

Participant will issue a certificate of loss to the providing Participant and pay the replacement

value as computed pursuant to the providing Participant's national laws, regulations, and

procedures. The providing and receiving Participants will specify that in no case will any

payment respecting damage or loss exceed the amount indicated in the applicable TEP PA or

PET Form.

7.4 The providing Participant will make every effort to ensure that the Project Equipment is

furnished in a serviceable and usable condition according to its intended purpose. However, the

providing Participant makes no warranty or guarantee of fitness of the Project Equipment for a

particular purpose or use, and makes no commitment to alter, improve, or adapt the Project

Equipment, or any part thereof.

7.5 The providing Participant will transfer the Project Equipment for the approved period,

unless extended by written amendment or terminated by either Participant. The duration of the

23
transfer period will not exceed the effective period of the TEP PA or PET Form.

7.6 The providing Participant, at its expense, will deliver the Project Equipment to the

receiving Participant at the location mutually approved. Responsibility for Project Equipment

will pass from the providing Participant to the receiving Participant at time of receipt. Any

further transportation will be mutually determined by the Participants and specified in the TEP

PA or PET Form.

7.7 The providing Participant will furnish the receiving Participant such information as is

necessary to enable the Project Equipment to be used.

7.8 The receiving Participant will inspect and inventory the Project Equipment upon receipt.

The receiving Participant will also inspect and inventory the Project Equipment prior to its return

(unless the Project Equipment is to be expended or consumed).

7.9 Upon expiration or termination of the transfer period specified in the TEP PA or the PET

Form (taking into account any extension), the receiving Participant will return the Project

Equipment and related Information, at its expense, to the providing Participant at the location

mutually approved. Responsibility for the Project Equipment will pass from the receiving

Participant to the providing Participant at the time of its receipt. Any further transportation is the

responsibility of the providing Participant.

7.10 The receiving Participant will provide written notice of consumption or expenditure of

Project Equipment approved for such consumption or expenditure. In the event the intended

consumption or expenditure does not occur, the receiving Participant will, unless otherwise

determined by the providing Participant, return the Project Equipment, at its expense, to the

providing Participant to the location mutually approved. Any further transportation is the

responsibility of the providing Participant.

7.11 The Participants will ensure, by all reasonable means, the protection of intellectual

property rights in Project Equipment.

7.12 Each Participant waives all claims against the other Participant for damage to or loss of

jointly acquired Project Equipment arising from the performance of official duties. However, if

the Participants mutually decide to repair damaged jointly acquired Project Equipment in order

to complete PA efforts, the cost of such repair will be shared in a manner that results in sharing

the total costs of the PA in the proportions established for the Participants' contributions under

the PA. In any case, if the damage or loss is caused by reckless acts, reckless omission, willful

misconduct or gross negligence, the costs of any liability, including the cost of repairs, will be

borne by the responsible Participant.

7.13 Any Project Equipment that is jointly acquired on behalf of the Participants for use under

any TEP PA will be disposed of as mutually approved by the SC, or the MAs, if an SC is not

established.

7.14 Disposal of jointly acquired Project Equipment may include a transfer of the interest of

24
one of the Participants in such Project Equipment to the other Participant, the sale or transfer of

such Project Equipment to a Third Party in accordance with Section XII (Third Party Sales and

Transfers), or sale or transfer to other entities. The Participants will share the consideration from

jointly acquired Project Equipment transferred or sold to a Third Party or other entity in the same

ratio as costs are shared in the CTE PA.

25
SECTION VIII

DISCLOSURE AND USE OF INFORMATION

8.1 General

Both Participants recognize that successful cooperation depends on full and prompt exchange of

Information necessary for carrying out each TEP Activity. The Participants intend to acquire

sufficient Information, and rights to use such Information to promote the objectives of this MOU.

The nature and amount of Information to be acquired will be consistent with Section II

(Objectives), Section III (Scope of Work), Section VI (Contracting Provisions), and the PAs and

PET Forms under this MOU. Subject to the rights both Participants are accorded under this

MOU, title to Project Foreground Information generated by a Participant or its Contractor will

reside in that Participant and/or its Contractors, in accordance with that Participant's national

laws, regulations, and policies. Nothing in this MOU will affect title to Project Background

Information of the Participants or their Contractors.

8.2 Transfer of Project Information will be consistent with furnishing Participant's applicable

export control laws and regulations. Unless otherwise restricted by duly authorized officials of

the furnishing Participant at the time of transfer to the other Participant, all export-controlled

Information furnished by one Participant to the other Participant may be retransferred to the

other Participant's Contractors, subcontractors, Prospective Contractors, and prospective

subcontractors, subject to the requirements of paragraphs 6.6 and 6.7 of Section VI (Contracting

Provisions). Export-controlled Information may be furnished by U.S. Contractors and their

subcontractors or U.S. Prospective Contractors and their prospective subcontractors to the other

Participant's Contractors, subcontractors, Prospective Contractors, and prospective

subcontractors pursuant to this MOU subject to the conditions established in licenses or other

approvals issued by the U.S. Government under the requirements of the Arms Export Control

Act and the International Traffic in Arms Regulations, and the Export Administration Act and

the Export Administration Regulations, and any amendments thereto. Export-controlled

Information may be furnished by UK Contractors and their subcontractors or UK Prospective

Contractors and their prospective subcontractors to the other Participant's Contractors,

subcontractors, Prospective Contractors, and prospective subcontractors pursuant to this MOU

subject to the conditions established in licenses or other approvals issued by the UK Government

under the requirements of the Export Control Act and its relevant UK regulations, and the

Council of the European Union Regulation Setting up a Community Regime for the Control of

Exports of Dual-use Items and Technology, and any amendments thereto. The furnishing of all

export-controlled Information by the Contractors and subcontractors of one Participant's nation

to those of the other pursuant to this MOU will be subject to the conditions established in export

licenses or other approvals issued by the government of the exporting Contractor or

subcontractor in accordance with that exporting nation's applicable export control laws and

regulations.

26
8.3 Information Exchange and Working Groups. The disclosure and use provisions that

govern exchange of Information and WGs authorized in Section III (Scope of Work), paragraphs

3.2.1 and 3.2.2 are as follows:

8.3.1 Disclosure: At its discretion, the furnishing Participant may disclose Information

to the other Participant. Prior written permission from the furnishing Participant

will be required for further disclosure of the Information by the receiving

Participant to any other entity, for example, a Contractor. Such permission will

not be required in the case of further disclosure to the receiving Participant's

Contractor support personnel, who are under a legally binding non-disclosure

agreement.

8.3.2 Use: Use of Information will be for information and evaluation purposes only.

Written permission from the furnishing Participant will be required for any other

use.

8.4 RUTF PAs. Unless the Participants mutually determine otherwise in writing, the

following provisions will apply to RUTF PAs:

8.4.1 Unless mutually determined otherwise, test results and/or analyses will be

transferred via government-to-government channels only.

8.4.2 The Customer Participant's use of test results and/or analyses will be for Defense

Purposes only. Written permission from the Performing Participant will be

required for any other use.

8.4.3 The Performing Participant and its contractors will use test results and/or analyses

for information and evaluation purposes only. Written permission from.the

Customer Participant will be required for any other use.

8.5 Other TEP Activities. Unless the Participants mutually determine otherwise in writing,

and except as noted above in paragraph 8.4 regarding RUTF PAs, the following disclosure and

use provisions which govern other TEP Activities authorized in Section III (Scope of Work),

paragraphs 3.2.3 and 3.2.4, will apply.

8.6 Government Project Foreground Information:

8.6.1 Disclosure: Project Foreground Information generated by a Participant's military

or civilian employees will be disclosed without charge to the other Participant.

8.6.2 Use: Each Participant may use or have used on its behalf government Project

Foreground Information without charge for its Defense Purposes only. The

furnishing Participant will retain all its rights with respect to such government

Project Foreground Information. The sale or other transfer of government Project

Foreground Information will be subject to the provisions of Section XII (Third

Party Sales and Transfers) of this MOU.

27
8.7 Contractor Project Foreground Information:

8.7.1 Disclosure: Contractor Project Foreground Information generated and delivered

by Contractors will be disclosed without charge to the other Participant.

8.7.2 Use: Each Participant may use or have used on its behalf all Contractor Project

Foreground Information without charge for its Defense Purposes only. The

Participant whose Contractors generate and deliver Contractor Project Foreground

Information will also retain rights of use therein in accordance with the applicable

Contract(s). The sale or other transfer of Contractor Project Foreground

Information will be subject to the provisions of Section XII (Third Party Sales and

Transfers) of this MOU.

8.8 Government Project Background Information:

8.8.1 Disclosure: Each Participant, upon request, will disclose to the other Participant

any relevant government Project Background Information generated by its

military or civilian employees, provided that:

8.8.1.1' such government Project Background Information is necessary to or

useful in the TEP Activity, with the furnishing Participant determining

whether it is necessary to or useful in the TEP Activity;

8.8.1.2 such government Project Background Information may be made

available without incurring liability to holders of proprietary rights;

8.8.1.3 disclosure of such government Project Background Information is

consistent with national disclosure policies and regulations of the

disclosing Participant; and

8.8.1.4 any disclosure or transfer of such government Project Background

Information to Contractors is consistent with the furnishing Participant's

export control laws and regulations.

8.8.2 Use: A Participant may use or have used on its behalf all government Project

Background Information disclosed by the other Participant without charge for

conducting the TEP Activity for which it was provided only. However, subject to

proprietary rights held by other than the Participants, government Project

Background Information may be used for Defense Purposes by the receiving

Participant without charge when the use of such government Project Background

Information is necessary for the use of Project Foreground Information. The

furnishing Participant (after consultation with the receiving Participant) will

determine whether such use of government Project Background Information is

necessary. The furnishing Participant will retain all its rights with respect to such

government Project Background Information.

28
8.9 Contractor Project Background Information:

8.9.1 Disclosure: Any relevant Contractor Project Background Information (including

information subject to proprietary rights), which is or has been generated outside

of the TEP Activity and delivered by Contractors of one of the Participants, will

be disclosed to the other Participant provided the following provisions are met:

8.9.1.1 such Contractor Project Background Information is necessary to or useful

in the TEP Activity, with the furnishing Participant determining whether

it is necessary to or useful in the TEP Activity;

8.9.1.2 such Contractor Project Background Information may be made available

without incurring liability to holders of proprietary rights;

8.9.1.3 disclosure of such Contractor Project Background Information is

consistent with national disclosure policies and regulations of the

furnishing Participant; and

8.9.1.4 any disclosure or transfer of such Contractor Project Background

Information to Contractors is consistent with the furnishing Participant's

export control laws and regulations.

8.9.2 Use: Project Background Information delivered by Contractors under Contracts

awarded in accordance with a PA may be used by or for the receiving Participant

without charge for project purposes, and for other Defense Purposes in

accordance with such fair and reasonable terms as are arranged with die

Contractor. Any other Contractor Project Background Information furnished by

one Participant's Contractors may be used by the other Participant without charge

for project purposes only and for other Defense Purposes in accordance with such

fair and reasonable terms as arranged with the Contractor, and may be subject to

further restrictions by holders of proprietary rights. The furnishing Participant

will retain all its rights with respect to Contractor Background Information.

8.10 Alternative Uses of Project Information:

8.10.1 The prior written consent of each Participant's government will be required for

the use of Project Foreground Information for any purposes other than those

provided for in this MOU or any of its PAs.

8.10.2 Any Project Background Information provided by one Participant will be used by

the other Participant for the purposes set forth in this MOU only, unless otherwise

consented to in writing by the furnishing Participant's government.

8.11 Project Information Subject to Proprietary Rights:

29
8.11.1 All unclassified project Information subject to proprietary rights will be

identified, marked, and handled as Controlled Unclassified Information in

accordance with Section IX (Controlled Unclassified Information). All classified

project Information subject to proprietary rights will be identified, marked, and

handled in accordance with Section IX (Controlled Unclassified Information) and

Section XI (Security).

8.12 Patents

8.12.1 Each Participant will include in its Contracts a provision governing the

disposition of rights in regard to Project Inventions and Patent rights relating

thereto, which either:

8.12.1.1 Provides that the Participant will hold title to all Project Inventions

together with the right to make Patent applications for the same, free of

encumbrance from the Contractor; or

8.12.1.2 Provides that the Contractor will hold title (or may elect to retain title)

for Project Inventions together with the right to make Patent applications

for the same, while securing for the Participant a license for the Project

Inventions, and any Patents therefore, on terms in compliance with the

provisions of paragraph 8.12.2 below.

8.12.2 In the event that a Contractor holds title (or elects to retain title) for a Project

Invention, the contracting Participant will secure for both Participants nonexclusive, irrevocable, royalty-free licenses under all Patents secured for that

invention, to practice or have practiced the patented Project Invention for Defense

Purposes throughout the world.

8.12.3 The provisions of paragraphs 8.12.4 through 8.12.8 below will apply in regard to

Patent rights for all Project Inventions made by any Participant's military or

civilian employees, including those within Government-owned facilities, and for

all Project Inventions made by Contractors for which the contracting Participant

holds title or is entitled to acquire title.

8.12.4 Where a Participant owns title to a Project Invention, or has the right to receive

title to a Project Invention, that Participant will consult with the other Participant

regarding the filing of a Patent application for such Project Invention. The

Participant which has or receives title to such Project Invention will, in other

countries, file, cause to be filed, or provide the other Participant with the

opportunity to file on behalf of the Participant holding title, or its Contractors, as

appropriate, Patent applications covering that Project Invention. If a Participant

having filed or caused to be filed a Patent application decides to stop prosecution

of the application or maintenance of the Patent granted thereon, that Participant

will notify the other Participant of that decision and permit the other Participant to

continue the prosecution or the maintenance.

30
8.12.5 The Participants will provide to each other copies of Patent applications filed and

Patents granted with regard to Project Inventions.

8.12.6 Each Participant will grant to the other Participant a non-exclusive, irrevocable,

royalty-free license under its Patents for Project Inventions, to practice or have

practiced, by or on behalf of the Participant, the patented Project Invention for

Defense Purposes throughout the world.

8.12.7 Patent applications that contain Classified Information to be filed under this MOU

or any of its PAs will be protected and safeguarded in accordance with the

requirements contained in Section XI (Security) of this MOU.

8.12.8 Each Participant will notify the other Participant of any Patent infringement

claims made in its territory arising in the course of work performed under any PA

of this MOU. Insofar as possible, the other Participant will provide Information

available to it that may assist in defending the claim. Each Participant will be

responsible for handling all Patent infringement claims made in its territory, and

will consult with the other Participant during the handling, and prior to any

settlement, of such claims. The Participants will share the costs of resolving

Patent infringement claims in a manner they determine to be fair at the time the

Patent infringement claim is resolved. The Participants will, in accordance with

their national laws and practices, give their authorization and consent for all use

and manufacture in the course of work performed under the project of any

invention covered by a Patent issued by their respective countries.

31
SECTION IX

CONTROLLED UNCLASSIFIED INFORMATION

9.1 Except as otherwise provided in this MOU or as authorized in writing by the

originating Participant, Controlled Unclassified Information provided or generated pursuant to

this MOU and any of its PAs will be controlled as follows:

9.1.1 such Information will be used only for the purposes authorized for use of Project

Information as specified in Section VIII (Disclosure and Use of Project

Information);

9.1.2 access to such Information will be limited to personnel whose access is

necessary for the permitted use under subparagraph 9.1.1, and will be subject to

the provisions of Section XII (Third Party Sales and Transfers);

9.1.3 each Participant will take all lawful steps, which may include national

classification, available to it to keep such Information free from further

disclosure (including requests under any legislative provisions), except as

provided in subparagraph 9.1.2, unless the originating Participant consents to

such disclosure. In the event of unauthorized disclosure, or if it becomes

probable that the Information may have to be further disclosed under any

legislative provision, immediate notification will be given to the originating

Participant.

9.2 To assist in providing the appropriate controls, the originating Participant will ensure

that Controlled Unclassified Information is appropriately marked. All U.S. export-controlled

Information will be marked as either "International Traffic in Arms Regulations (ITAR)-

Controlled" or "Export Administration Regulations (EAR) Controlled", or other U.S. export

controlled markings, as appropriate. All UK export-controlled Information will be marked as

"UK Export Controlled" or other UK export control markings, as appropriate. The Participants

will decide, in advance and in writing, on the markings to be placed on any other type of

Controlled Unclassified Information. Where necessary appropriate markings will be specified:

9.2.1 for Working Groups in the TOR;

9.2.2 for RUTF PAs or PETs, through an exchange of correspondence between the

POs; or

9.2.3 for CTE PAs in the Project Security Instruction.

9.3 Controlled Unclassified Information provided or generated pursuant to this MOU will

be handled in a manner that ensures control as provided for in paragraph 9.1.

32
9.4 Prior to authorizing the release of Controlled Unclassified Information to Contractors,

the Participants will ensure the Contractors are legally bound to control such Information in

accordance with the provisions of this Section.

33
SECTION X

VISITS TO ESTABLISHMENTS

10.1 Each Participant will permit visits to its government establishments, agencies, and

laboratories, and Contractor industrial facilities by employees of the other Participant or by

employees of the other Participant's Contractor(s), provided that the visit is authorized by both

Participants and the employees have any necessary and appropriate security clearances and a

need-to-know.

10.2 All visiting personnel will be required to comply with security regulations of the host

Participant. Any Information disclosed or made available to visitors will be treated as if supplied

to the Participant sponsoring the visiting personnel, and will be subject to the provisions of this

MOU.

10.3 Requests for visits by personnel of one Participant to a facility of the other Participant

will be coordinated through official channels, and will conform to the established visit

procedures of the host Participant. Requests for visits will bear the name of this MOU and the

appropriate PA.

10.4 Lists of personnel of each Participant required to visit, on a continuing basis, facilities

of the other Participant will be submitted through official channels in accordance with recurring

international visit procedures.

34
SECTION XI

SECURITY

11.1 All Classified Information provided or generated pursuant to this MOU and any of its

PAs will be stored, handled, transmitted, and safeguarded in accordance with the Security

Agreement between the United Kingdom of Great Britain and Northern Ireland and the United

States of America, dated April 14, 1961, amended July 5 and December 19, 1983, and its

Implementing Arrangement of January 27, 2003.

11.2 Classified Information will be transferred only through official government-togovernment channels or through channels approved by the Designated Security Authorities

(DSAs) of the Participants. Such Classified Information will bear the level of classification,

denote the country of origin, the conditions of release, and the fact that the information relates to

this MOU and the applicable PA.

11.3 Each Participant will take all lawful steps available to it to ensure that Classified

Information provided or generated pursuant to this MOU and any of its PAs is protected from

further disclosure, except as permitted by paragraph 11.8, unless the other Participant consents to

such disclosure. Accordingly, each Participant will ensure that:

11.3.1 the recipient will not release the Classified Information to any government,

national, organization, or other entity of a Third Party without the prior written

consent of the originating Participant in accordance with the procedures set forth

in Section XII (Third Party Sales and Transfers);

11.3.2 the recipient will not use the Classified Information for other than the purposes

provided for in this MOU; and

11.3.3 the recipient will comply with any distribution and access restrictions on

Classified Information that is provided under this MOU.

11.4 The Participants will investigate all cases in which it is known or where there are

grounds for suspecting that Classified Information provided or generated pursuant to this MOU

has been lost or disclosed to unauthorized persons or other entities. Each Participant also will

promptly and fully inform the other Participant of the details of any such occurrences, and of the

final results of the investigation and of the corrective action taken to preclude recurrences.

11.5 When a CTE PA contains provisions for the exchange of Classified Information, the

POs will prepare a Project Security Instruction (PSI) and a Classification Guide (CG) for the

CTE PA. The PSI and the CG will describe the methods by which Project Information will be

classified, marked, used, transmitted, and safeguarded. The PSI and CG will require that

markings for all export-controlled Classified Information also include the applicable exportcontrolled markings as specified in paragraph 9.2 of Section IX (Controlled Unclassified

Information). The PSI and CG will be developed by the PO within three months after the CTE

35
PA enters into effect. They will be reviewed and forwarded to the Participants' DSAs for

approval and will be applicable to all government and Contractor personnel participating in the

project. The CG will be subject to regular review and revision with the aim of downgrading the

classification whenever this is appropriate. The PSI and the CG will be approved by the

appropriate DSA prior to the transfer of any Classified Information or Controlled Unclassified

Information.

11.6 The DSA of the Participant in which a classified Contract is awarded pursuant to this

MOU will assume responsibility for administering within its territory security measures for the

protection of the Classified Information, in accordance with its laws and regulations. Prior to the

release to a Contractor, prospective Contractor, subcontractor, or prospective subcontractor of

any Classified Information provided or generated under this MOU, the DSAs will:

11.6.1 ensure that such Contractor, prospective Contractor, subcontractor or prospective

subcontractor and their facility (ies) have the capability to protect the Classified

Information adequately under the Participant's national security laws, regulations,

and policies;

11.6.2 grant a security clearance to the facility (ies);

11.6.3 grant a security clearance for all personnel whose duties require access to

Classified Information;

11.6.4 ensure that all persons having access to the Classified Information are informed of

their responsibilities to protect the Classified Information in accordance with

national security laws and regulations, and provisions of this MOU;

11.6.5 carry out periodic security inspections of cleared facilities to ensure that the

Classified Information is properly protected; and

11.6.6 ensure that access to the Classified Information is limited to those persons who

have a need-to-know for purposes of the MOU and any of its PAs.

11.7 Contractors, prospective Contractors, subcontractors or prospective subcontractors that

are determined by the DSAs to be under financial, administrative, policy or management control

of nationals or entities of a Third Party, may participate in a Contract or subcontract requiring

access to Classified Information provided or generated pursuant to this MOU or any of its PAs

only when enforceable measures are in effect to ensure that nationals or other entities of a Third

Party will not have access to Classified Information. If enforceable measures are not in effect to

preclude access by nationals or other entities of a Third Party, the other Participant will be

consulted for approval prior to permitting such access.

11.8 For any facility wherein Classified Information is to be used, the responsible Participant

or Contractor will approve the appointment of a person or persons to exercise effectively the

responsibilities for safeguarding at such facility the Classified Information pertaining to this

MOU and any of its PAs. These officials will be responsible for limiting access to Classified

36
Information involved in this MOU and any of its PAs to those persons who have been properly

approved for access and have a need-to-know.

11.9 Each Participant will ensure that access to the Classified Information is limited to those

persons who possess requisite security clearances and have a specific need for access to the

Classified Information in order to participate under this MOU or any of its PAs.

11.10 Information provided or generated pursuant to this MOU may be classified as high as

SECRET. The existence of this MOU is UNCLASSIFIED and the contents are

UNCLASSIFIED. The classification of the existence of any PA and its contents will be stated in

that PA.

37
SECTION XII

THIRD PARTY SALES AND TRANSFERS

12.1 Except to the extent permitted in paragraph 12.2, the Participants will not sell, transfer

title to, disclose, or transfer possession of Project Foreground Information (or any item produced

either wholly or in part from the Project Foreground Information) or jointly acquired or produced

Project Equipment to any Third Party without the prior written consent of the government of the

other Participant. Furthermore, neither Participant will permit any such sale, disclosure, or

transfer, including by the owner of the item, without the prior written consent of the government

of the other Participant. Such consent will not be given unless the government of the intended

recipient consents in writing with the Participants that it will:

12.1.1 not retransfer, or permit the further retransfer of, any equipment or Information

provided; and

12.1.2 use, or permit the use of, the equipment or Information provided only for the

purposes specified by the Participants.

12.2 Each Participant will retain the right to sell, transfer title to, disclose, or transferpossession of Project Foreground Information that:

12.2.1 is generated solely by either that Participant or that Participant's Contractors in the

performance of that Participant's work allocation under Section III (Scope of

Work);

12.2.2 does not include any Project Foreground Information or Project Background

Information of the other Participant, and whose generation, test, or evaluation has

not relied on the use of Project Equipment of the other Participant.

12.3 In the event questions arise as to whether the Project Foreground Information (or any

item produced either wholly or in part from the Project Foreground Information) that a

Participant intends to sell, transfer title to, disclose, or transfer possession of to a Third Party is

within the scope of paragraph 12.2, the matter will be brought to the immediate attention of the

other Participant's MA. The Participants will resolve the matter prior to any sale or other transfer

of such Project Foreground Information (or any item produced either wholly or in part from the

Project Foreground Information) to a Third Party.

12.4 A Participant will not sell, transfer title to, disclose, or transfer possession of Project

Equipment or Project Background Information provided by the other Participant to any Third

Party without the prior written consent of the government of the Participant that provided such

equipment or Information. The providing Participant's government will be solely responsible for

authorizing such transfers and, as applicable, specifying the method and provisions for

implementing such transfers.

38
12.5 Consent for Third Party sales and transfers of Project Foreground Information, jointly

acquired Project Equipment, or any item produced either wholly or in part from Project

Foreground Information, will be subject to foreign policy, national security considerations, and

national laws, regulations, and policies.

39
SECTION XIII

LIABILITY AND CLAIMS

13.1 With the exception of claims for loss of or damage to Project Equipment transferred from

one Participant to the other Participant, which is addressed in Section VII (Project Equipment),

claims arising under this MOU, including RUTF PAs, will be dealt with in accordance with

paragraph 1 of the Chapeau Agreement.

13.2 CTE PAs. The Participants will share any costs of third party claims required to be

shared under subparagraph 1(b) (ii) of the Chapeau Agreement in the same proportions as costs

are shared in the PA.

13.3 The Participants will share any costs required to be shared under subparagraph 1(b) (iv)

of the Chapeau Agreement as follows:

13.3.1 For Contracts where one Participant contracts solely on its own behalf, the

Participant awarding the Contract will pay the cost of claims arising under that

Contract.

13.3.2 For Contracts where one Participant contracts on behalf of the other Participant,

the Participant on whose behalf the Contract was awarded will pay the cost of

claims arising under the Contract. The contracting Participant will not indemnify

Contractors against third party liability claims, unless otherwise mutually

determined in the PA.

13.3.3 For Contracts awarded on behalf of both Participants, the costs of claims arising

under such Contracts will be shared in a manner that results in sharing the total

costs of the PA in the proportions established for the Participants' contributions

under the PA. The contracting Participant will not indemnify Contractors against

third party liability claims, unless otherwise mutually determined in a PA.

13.4 RUTF PAs. Unless mutually determined in a PA, the Performing Participant will pay all

costs of third party claims under subparagraph 1(b) (ii) of the Chapeau Agreement.

13.5 Under subparagraph 1(b) (iv) of the Chapeau Agreement, where one Participant contracts

to fulfil its commitments under a PA, the Participant awarding the Contract will pay the cost of

claims arising under that Contract.

40
SECTION XIV

CUSTOMS DUTIES, TAXES, AND SIMILAR CHARGES

14.1 Customs duties, import and export taxes, and similar charges will be administered in

accordance with each Participant's respective laws and regulations. Insofar as existing national

laws and regulations permit, the Participants will endeavor to ensure that such readily

identifiable duties, taxes, and similar charges, as well as quantitative or other restrictions on

imports and exports, are not imposed in connection with work carried out under a TEP Activity.

14.2 Each Participant will use its best efforts to ensure that customs duties, import and

export taxes, and similar charges are administered in a manner favorable to the efficient and

economical conduct of the work. If any such duties, taxes, or similar charges are levied, the

Participant in whose country they are levied will bear such costs. Any such costs will not be

considered to fall under either Participant's shared costs.

14.3 If, in order to apply European Union (EU) regulations, it is necessary to levy duties,

then these will be met by the EU member end recipient. To this end, parts of the components of

the equipment coming from outside the EU will proceed to their final destination accompanied

by the relevant customs document enabling settlement of duties to take place. The duties will be

levied as a cost over and above that Participant's shared cost of the project.

41
SECTION XV

SETTLEMENT OF DISPUTES

15.1 Disputes between the Participants arising under or relating to this MOU or any of its

PAs will be resolved by consultation between the Participants only and will not be referred to a

national court, an international tribunal, or to any other person or entity for settlement.

42
SECTION XVI

GENERAL PROVISIONS

16.1 All activities of the Participants under this MOU and its PAs will be carried out in

accordance with their national laws and regulations, including their export control laws and

regulations. The commitments of the Participants will be subject to the availability of funds for

such purposes.

16.2 In the event of a conflict between the provisions of this MOU and any TEP PA or PET

Form, this MOU will take precedence.

16.3 The Participants will not communicate with representatives of the press, television, radio,

internet or other communication media on any matter concerning a TEP Activity conducted

under this MOU without prior consultation between the Participants. Such approval shall not be

unreasonably withheld or delayed.

43
SECTION XVII

AMENDMENT, TERMINATION, ENTRY INTO EFFECT, AND DURATION

17.1 This MOU, or PAs to this MOU, may be amended by the mutual written consent of the

Participants.

17.2 This MOU, or PAs to this MOU, may be terminated at any time by the mutual written

consent of the Participants. In the event the Participants consent to terminate this MOU, or PAs

to this MOU, the Participants will consult prior to the date of termination to ensure termination

on the most economical and equitable terms. Termination of this MOU will result in the

termination of all PAs to this MOU.

17.3 Either Participant may terminate this MOU, or PAs to this MOU, upon 180 days written

notice of its intent to terminate to the other Participant. Such notice will be the subject of

immediate consultation to decide upon the appropriate course of action to conclude the activities

under this MOU or PA. In the event of such termination, the following rules apply:

17.3.1 The Participants will continue participation, financial or otherwise, in all PAs

subject to the notice of termination, up to the effective date of termination;

17.3.2 Except as to Contracts awarded on behalf of both Participants, each Participant

will be responsible for its own project-related costs associated with termination of

the Project. For Contracts awarded on behalf of both Participants, the terminating

Participant will pay all Contract modification and termination costs that would not

otherwise have been incurred but for the decision to terminate. However, in no

event will a terminating Participant's total financial contribution, including

Contract termination costs, exceed that Participant's total financial contribution

for the PA being terminated;

17.3.3 All Project Information and rights therein received under the provisions of this

MOU or PAs prior to termination of the MOU or its PAs will be retained by the

Participants, subject to the provisions of this MOU and its PAs;

17.3.4 If requested by the other Participant, the terminating Participant may continue to

administer the project Contract(s) which it awarded on behalf of the other

Participant on a reimbursable basis; and

17.3.5 Additional PA termination provisions consistent with this Section may be

established in the PA.

17.4 The respective benefits and commitments of the Participants regarding Section VII

(Project Equipment), Section VIII (Disclosure and Use of Project Information), Section IX

(Controlled Unclassified. Information), Section XI (Security), Section XII (Third Party Sales and

44
Transfers), Section XIII (Liability and Claims), and Section XV (Settlement of Disputes) will

continue notwithstanding termination or expiration of this MOU or any of its PAs.

17.5 This MOU, which consists of seventeen (17) Sections and three (3) Annexes, will come

into effect on the date of last signature, and will remain in effect for fifteen (15) years unless

terminated by either Participant. This MOU will be automatically extended for successive fiveyear periods unless one Participant notifies the other in writing that it does not desire this MOU

to be extended.

45
Signature

Dr. Charles E. McQueary

Name

FOR THE SECRETARY OF STATE FOR

DEFENCE OF THE UNITED KINGDOM

OF GREAT BRITAIN AND NORTHERN

IRELAND

Signature

The foregoing represents the understandings reached between the Department of Defense of the

United States of America and the Secretary of State for Defence of The United Kingdom of

Great Britain and Northern Ireland, upon the matters referred to herein.

SIGNED, in duplicate, in the English language.

FOR THE DEPARTMENT OF DEFENSE

OF THE UNITED STATES OF AMERICA

Director, Operational Test and Evaluation

Title

/0 act:AA, zo.to 

Date

Location/

Oa SI // kyon 1)C

SL 16

Name

Director General Research and Technology

Title

2-00

Date

Location

46
ANNEX A

MODEL RECIPROCAL USE OF TEST FACILITIES (RUTF) PROJECT ARRANGEMENT

(PA)

RUTF PA NUMBER *

UNDER THE U.S. DoD-UK MoD

TEST AND EVALUATION PROGRAM (TEP) COOPERATION

MEMORANDUM OF UNDERSTANDING (MOU)

DATED

CONCERNING

(FULL DESIGNATION OF THE PROJECT AND LOCATION)

(DATE)

*The U.S. DoD will assign the Project Arrangement number.
TABLE OF CONTENTS

ANNEX A -- MODEL RECIPROCAL USE OF TEST FACILITIES (RUTF) PA

INTRODUCTION A-3

SECTION I

DEFINITION OF TERMS AND ABBREVIATIONS .A-3

SECTION II

T&E OBJECTIVES A-3

SECTION III

SCOPE OF WORK A-3

SECTION IV

ESTIMATED TEST SCHEDULE A-4

SECTION V

MANAGEMENT A-4

SECTION VI

, FINANCIAL PROVISIONS .A-6

SECTION VII

CONTRACTING PROVISIONS A-6

SECTION VIII

ADDITIONAL DISCLOSURE AND USE OF INFORMATION PROVISIONS ..... A-6

SECTION IX

CLASSIFICATION A-7

SECTION X

PRINCIPAL ORGANIZATIONS INVOLVED A-7

SECTION XI

PROJECT EQUIPMENT TRANSFERS A-7

SECTION XII

SPECIAL PROVISIONS .A-8

SECTION XIII

ENTRY INTO EFFECT, DURATION, AND TERMINATION A-9

APPENDIX 1

COST ESTIMATE MODEL A- 1 0

APPENDIX 2

INVENTORY OF PROJECT EQUIPMENT TRANSFERS A-11
INTRODUCTION

This Reciprocal Use of Test Facilities (RUTF) Project Arrangement (PA) is entered into

pursuant to the MOU between the Department of Defense of the United States of America (U.S.

DoD) and the Secretary of State for Defence of The United Kingdom of Great Britain and

Northern Ireland (UK MoD) for Test and Evaluation Program (TEP) Cooperation of (date).

The Participants have determined that conducting

mutually beneficial.

at is

(RUTF PAs may involve performance of multiple test events at multiple Test Facilities over

multiple years.)

SECTION I

DEFINITION OF TERMS AND ABBREVIATIONS 

(Define only those terms used in this PA that have not been defined in the MOU.)

SECTION II

T&E OBJECTIVES 

The T&E objectives of this PA are:

a. To determine the

b. To evaluate the

c. To accomplish/improve

SECTION III

SCOPE OF WORK

Test Description a. is designed to

b. is comprised of

(Include any Customer Participant-provided test personnel, equipment (other than Project

Equipment), or other assistance in this Section, and provide the applicable details in the PA.)
Test Facility Services

(Outline the tasks and services to be performed by the Test Facility.)

The following T&E Activities will be performed by during a period of up to

days/weeks during

a.

b.

c.

The following support will be provided by the Test Facility:

(For example: Technical and analytical assistance, consultation for preparation of the test

plan, qualified personnel to conduct the T&E, any other specified support to customer.)

SECTION IV

ESTIMATED TEST SCHEDULE

Day/Week/Month 1:

Dates (List of activities to occur each day)

Day/Week/Month 2:

Dates (List of activities to occur each day)

Day/Week/Month 3:

Dates (List of activities to occur each day)

The dates and duration of the test are subject to change by either Participant. The U.S. DoD and

UK MoD POs will keep each other informed of progress and apprise each other of potential

schedule change, delay, or cancellation.

The final report will be transmitted to the MAs six months before the termination date of this PA.

SECTION V

MANAGEMENT

This PA will be directed and administered on behalf of the Participants by one PO from each

Participant. POs are responsible for the implementation of the provisions of the MOU and PA.
Direct liaison between the Participants' POs is authorized. Alternate POs may also be

designated. The POs are:

U.S. DoD PO: Name: 

Title/Position

Organization 

Mail Address 

Phone & Fax 

E-mail

UK MoD PO: Name: 

Title/Position 

Organization 

Mail Address 

Phone & Fax 

E-mail

(The POs, as appropriate, may develop and agree to a test plan.)

Command, Control, Safety, and Security Considerations

The performing Participant will retain command and control over all facilities, personnel,

equipment, and support units. Both Participants will adhere to standing operating procedures

regarding command, control, safety, and security, except where mutually determined otherwise

in writing. In accordance with Section XI (Security) of the MOU:

a. The Participants are responsible for the security of all publications and reference material.

b. The performing Participant is responsible for the security of test site materials and

publications.

c. POs will coordinate security requirements prior to all classified testing.
SECTION VI

FINANCIAL PROVISIONS

The cost estimate for performance of the tasks under this PA is $ (USD) and/or £

(GBP) . In no event will the Performing Participant exceed this cost estimate without the

prior written consent of the Customer Participant. If the Performing Participant has reason to

believe that this cost estimate will be exceeded, the Performing Participant will immediately

notify the Customer Participant and will set forth a new cost estimate together with supporting

documentation. The Participants will consult as soon as possible regarding the action to be taken

in view of the revised cost estimate.

The Performing Participant will submit a request for payment to the Customer Participant at least

45 days in advance of the test requiring payment of the estimated cost. The Customer Participant

will review the request for payment and respond with payment no later than five (5) days prior to

the scheduled commencement of the test. The test effort will not commence until the funds are

received.

(The Participants may adjust the time periods as necessary for each test.)

Upon completion of the test (including submission of the final report), the Performing Participant

will provide a final statement of account to the Customer Participant, which details the actual

costs incurred and payments received from the Customer Participant. After completing review

of the final statement of account, the Participants will reconcile the account and make any final

payments.

Requests for payment will contain the following information:

Date

PA Number

Invoice ID

Financial Manager's Contact Information

Financial Coding

Invoice Total

SECTION VII

CONTRACTING PROVISIONS 

(Insert any contracting provisions required for the PA. If none, so state.)

SECTION VIII

ADDITIONAL DISCLOSURE AND USE OF INFORMATION PROVISIONS
(Insert any additional disclosure and use of information provisions needed to implement the

PA. If none, so state.)

SECTION IX

CLASSIFICATION

(Only one of the three following possibilities must be selected:)

a. No Classified Information will be exchanged under this PA; or

b. The highest level of Classified Information exchanged under this PA is:

CONFIDENTIAL; or

c. The highest level of Classified Information exchanged under this PA is:

SECRET.

The existence of this PA is [Insert classification] and its contents are [Insert classification].

SECTION X

PRINCIPAL ORGANIZATIONS INVOLVED

(List Test Facilities and other organizations of the Participants.)

SECTION XI

PROJECT EQUIPMENT TRANSFERS 

NOTES:

Providing Receiving QTY Description Part/ Consumables/ Return ReplaceParticipant Participant Stock # Non-Consumables Date ment

Value

I. Specifically identify the test article. In the event that the cooperative efforts under the

PA require the provision of other Project Equipment to either Participant, a list of such

Project Equipment must be developed in general accordance with the preceding table.

(Project Equipment that cannot be identified at the time of PA signature will be documented,

when identified, in a list to be developed and maintained by the POs, and in the format at

Appendix 2 to this Annex.)
2. If jointly acquired Project Equipment is an aspect of the cooperative efforts under the

PA, then terms and conditions for the disposal of such jointly acquired Project Equipment

must be included in the PA.

SECTION XII

SPECIAL PROVISIONS 

All activities of the Participants under this RUTF PA will be carried out in accordance with their

national laws and regulations, including their export control laws and regulations.

(Insert any other special provisions needed to implement the PA.)
SECTION XIII

ENTRY INTO EFFECT, DURATION, AND TERMINATION

This RUTF PA, a TEP Activity under the MOU between the Department of Defense of

the United States of America and the Secretary of State for Defence of The United Kingdom of

Great Britain and Northern Ireland, will come into effect upon signature by the Participants, and

will remain in effect for years unless terminated by either Participant. It may be extended

by the written mutual determination of the Participants.

FOR THE DEPARTMENT OF DEFENSE FOR THE SECRETARY OF STATE FOR

OF THE UNITED STATES OF AMERICA DEFENCE OF THE UNITED KINGDOM OF

GREAT BRITAIN AND NORTHERN

IRELAND

Signature Signature

Name Name

Director, Operational Test and Evaluation Director General Research and Technology

Title Title

Date Date

Location Location
APPENDIX 1– COST ESTIMATE MODEL

COST ESTIMATE FOR THE (Name of Test)

Test Period (Insert Date)

IRECT COSTS

Item Task Description/Service Labor Facility

Use

Materials Travel - Total

1 Test Planning

2 Test Article Safety Inspection

3 Test Preparation & Setup

4 Flight Time & Flt Support

5 Range Firings

6 Ground Support (Telemetry &

Communications)

7 Toxic Fumes Test

8 Human Factors Evaluation

9 Technical / Review Meetings

10 Secure Storage

11 Supplies & Materials

12 Contingencies (Retest, etc...)

13 Data Analysis

n Report Preparation

INDIRECT COSTS

(Indirect Costs charged to the Customer Participant will be only those required by the

Performing Participant's laws and regulations.

These costs may be itemized in a format similar to the table above.)

RUTF PA ID # XXXX

Note: The above table is a notional example. Cost estimate tables should be tailored to align

with the requirements of particular tests.
APPENDIX 2 -- INVENTORY OF PROJECT EQUIPMENT TRANSFERS

Providing Receiving QTY Description Part/ Consumables/ Return ReplaceParticipant Participant Stock # Non-Consumables Date ment

Value
ANNEX B

MODEL COOPERATIVE TEST & EVALUATION (CTE) PROJECT ARRANGEMENT (PA)

CTE PA NUMBER *

UNDER THE U.S. DoD — UK MoD

TEST AND EVALUATION PROGRAM (TEP) COOPERATION

MEMORANDUM OF UNDERSTANDING (MOU)

DATED

CONCERNING

(FULL DESIGNATION OF THE PROJECT)

*The U.S. DoD will assign the Project Arrangement number.
TABLE OF CONTENTS

ANNEX B -- MODEL COOPERATIVE TEST & EVALUATION (CTE) PA

INTRODUCTION .B-3

SECTION I

DEFINITION OF TERMS AND ABBREVIATIONS B-3

SECTION II

OBJECTIVES .B-3

SECTION III

SCOPE OF WORK B-3

SECTION IV

SHARING OF TASKS B-4

SECTION V

BREAKDOWN AND SCHEDULE OF TASKS B-4

SECTION VI

MANAGEMENT B-5

SECTION VII

FINANCIAL PROVISIONS B-7

SECTION VIII

CONTRACTING PROVISIONS B-8

SECTION IX

ADDITIONAL DISCLOSURE AND USE OF INFORMATION PROVISIONS B-8

SECTION X

CLASSIFICATION .B-9

SECTION XI

PRINCIPAL ORGANIZATIONS INVOLVED .B-9

SECTION XII

PROJECT EQUIPMENT TRANSFERS B-9

SECTION XIII

SPECIAL PROVISIONS B-10

SECTION XIV

ENTRY INTO EFFECT, DURATION, AND TERMINATION B-11

APPENDIX 1

COOPERATIVE PROJECT PERSONNEL (CPP) ...B-12

APPENDIX 2

INVENTORY OF PROJECT EQUIPMENT TRANSFERS B-16

(At a minimum, a PA should include the above sections. If additional topics need to be

addressed, sections, annexes, or special provisions should be included as necessary and

appropriate.)
INTRODUCTION

This Cooperative Test & Evaluation (CTE) Project Arrangement (PA) is entered into pursuant to

the MOU between the Department of Defense of the United States of America (U.S. DoD) and

the Secretary of State for Defence of The United Kingdom of Great Britain and Northern Ireland

(UK MoD) for Test and Evaluation Program (TEP) Cooperation (date). 

SECTION I

DEFINITION OF TERMS AND ABBREVIATIONS 

(Define only those terms used in this PA that have not been defined in the MOU.)

The objectives of this

SECTION II

OBJECTIVES

PA are:

a. The development of

b. The improvement of

SECTION III

SCOPE OF WORK

The following work will be performed under this PA.

a. Develop

b. Evaluate

c. Design, fabricate, and test

SECTION IV
SHARING OF TASKS 

The sharing of tasks will be as follows:

a. The U.S. DoD will

b. The UK MoD will

c. U.S. DoD and UK MoD will jointly

SECTION V

BREAKDOWN AND SCHEDULE OF TASKS

(OPTIONAL)

(Use this format when the tasks covered under this project may be performed using multiple

phases, requiring milestones, or decision points.)

The Project will proceed according to the following phases and schedule. Note that national

priorities may pre-empt agreed-upon schedules in PAs.

Phase 1 Start End

Description of Phase 1 MM/DD/YYYY MM/DD/YYYY

(Milestone 1) (e.g., Transmittal of Feasibility Report)

Phase 2 Start End

Description of Phase 2 MM/DD/YYYY MM/DD/YYYY

(Milestone 2) (e.g., Decision to proceed to Phase 3)

Phase 3 Start End

Description of Phase 3 MM/DD/YYYY MM/DD/YYYY

(Milestone 3) ( e.g., Evaluation, analysis of results)

(Add as many phases as necessary.)

The final report must be transmitted to the MAs six months before the termination date for this

PA.
SECTION VI

MANAGEMENT

(If a PA does not require a Steering Committee, use the following format to set forth how the

PA will be managed)

Alternative I 

I. This PA will be directed and administered on behalf of the Participants by one Project

Officer (PO) from each Participant. The POs are:

U.S. DoD PO Name: 

Title/Position 

Organization 

Address

Email

UK MoD PO Name: 

Title/Position 

Organization 

Address

Email

2. Project offices will be established in (name of U.S. facility and location)

and in (name of UK facility and location). The POs are responsible for

management of those tasks listed as national responsibilities in Section IV (Sharing of Tasks) in

this PA.

3. Particular Management Procedures:

[Mention only those additional management responsibilities not covered under Section IV —

Management (Organization and Responsibility) of the MOU.J
(If a Project requires the establishment of a Steering Committee, use the following format to

set forth how the Project will be managed.)

Alternative 2

1. This PA will be directed and administered on behalf of the Participants by an

organization consisting of a Steering Committee (SC) and one Project Officer (PO) from each

Participant. The SC members are:

U.S. DoD Co-Chairman Name

Title/Position

Organization

Address

Email

UK MoD Co-Chairman Title/Position

Organization

Address

Email

2. The POs are:

U.S. DoD PO Title/Position 

Organization 

Address

Email

Title/Position

Organization

UK MoD PO
Address

Email

3. Project offices will be established in (name of U.S. facility and location) and in (name of

UK facility and location). The POs are responsible for management of those tasks listed as

national responsibilities in Section IV (Sharing of Tasks) in this PA.

4. Particular Management Procedures:

(Mention only those additional management responsibilities not covered under Section

IV of the MOU. For instance, if a PA will be administered by one joint program office

(JPO) staffed by members from each Participant, add the following paragraph:

4.X Either Participant may assign personnel to the JPO to assist in administering a

PA. The Host Participant will provide office space and administrative support to

personnel of the other Participant in accordance with the Host Participant's normal

practice. A Participant's assigned personnel will be subject to the normal procedures

and regulations of the Host Participant. Provisions for the personnel provided are

described in Appendix 1 to this PA.)

SECTION VII

FINANCIAL PROVISIONS 

The Participants estimate that the cost of performance of the tasks under this PA will not exceed

$(USD) and £(GBP) .

Cooperative efforts of the Participants over and above the mutually determined tasks set forth in

the Scope of Work, Sharing of Tasks, and Financial Provisions Sections will be subject to

amendment to this PA or signature of a new PA.

(If a PA will involve the assignment of CPP, the PA will include a provision that refers to

paragraphs 5.8 - 5.10 of the MOU, identifies which Participant is sending or hosting CPP, and

specifies the number of CPP to be assigned. In addition, the PA will include the amount of

financial and non-financial contributions related to CPP in one of the two alternatives below

in this Section.)

(If a PA will not involve one Participant contracting for the other or both Participants, and no

funds will be exchanged between the Participants, use the following format for the financial

arrangements. Both financial and non-financial contributions should be included in the total

US DoD and UK MoD costs.)
Alternative 1 

The U.S. DoD tasks will not cost more than: $(USD)

The UK MoD tasks will not cost more than: £(GBP)

Or:

(If a PA will involve one Participant contracting for the other Participant or both Participants,

or the Participants will transfer or exchange funds between them, use the following format for

the financial arrangements.)

Alternative 2

(Cost of performance includes Financial and Non–financial Costs.)

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

U.S. DOD

UK MOD

(Using the above table and whatever description is necessary, explain and demonstrate how

the PA will be funded Identify both financial (funds) and non-financial (range time, use of

equipment, etc.) contributions and identify the amount of funds to be transferred between the

Participants.)

(The Financial Management Procedures Document (FMPD) should be developed by the POs

and submitted to the SC (if appropriate) for approval. The FMPD should include, as a

minimum, schedule, handling, funding levels by year, and auditing procedures for monetary

contributions anticipated for this PA.)

SECTION VIII

CONTRACTING PROVISIONS 

(Insert any contracting provisions required for the PA. If none, so state.)

SECTION IX

ADDITIONAL DISCLOSURE AND USE OF INFORMATION PROVISIONS
(Insert any additional disclosure and use of Information provisions unique to the PA. If none,

so state.)

SECTION X

CLASSIFICATION

Only one of the three following possibilities must be selected:

a. No Classified Information will be exchanged under this PA;

b. The highest level of Classified Information exchanged under this PA is

CONFIDENTIAL; or

c. The highest level of Classified Information exchanged under this PA is SECRET.

The existence of this PA is [Insert classification] and its contents are [Insert classification].

SECTION XI

PRINCIPAL ORGANIZATIONS INVOLVED

(List Test Facilities and other organizations of the Participants.)

SECTION XII

PROJECT EQUIPMENT TRANSFERS

NOTES:

Providing Receiving QTY Description Part/ Consumables/ Return ReplaceParticipant Participant Stock # Non-Consumables Date ment

Value

1. In the event that the cooperative efforts under the PA require the provision of Project

Equipment to either Participant, a list of such Project Equipment must be developed in

general accordance with the preceding table. (Project Equipment that cannot be identified at

the time of PA signature will be documented, when identified, in a list to be developed and

maintained by the POs in the format at Appendix 2 to this Annex.)
2. If jointly acquired Project Equipment is an aspect of the cooperative efforts under the

PA, provisions for the disposal of such jointly acquired Project Equipment must be included in

the PA.

SECTION XIII

SPECIAL PROVISIONS 

All activities of the Participants under this CTE PA will be carried out in accordance with their

national laws and regulations, including their export control laws and regulations.

(Insert any other special provisions needed to implement the PA.)
SECTION XIV

ENTRY INTO EFFECT, DURATION, AND TERMINATION

This CTE PA, a Project under the MOU

between the Department of Defense of the United States of America and the Secretary of State

for Defence of The United Kingdom of Great Britain and Northern Ireland, will come into effect

upon signature by the Participants, and will remain in effect for years unless terminated

by either Participant. It may be extended by the written mutual determination of the Participants.

FOR THE DEPARTMENT OF DEFENSE FOR THE SECRETARY OF STATE FOR

OF THE UNITED STATES OF AMERICA DEFENCE OF THE UNITED KINGDOM OF

GREAT BRITAIN AND NORTHERN

IRELAND

Signature Signature

Name Name

Director, Operational Test and Evaluation Director General Research and Technology

Title Title

Date Date

Location Location
APPENDIX 1 - COOPERATIVE PROJECT PERSONNEL (CPP)

ASSIGNMENT OF (Insert name of Project) COOPERATIVE PROJECT PERSONNEL

1.0 Purpose and Scope.

1.1 This Appendix to the Project Arrangement (PA) establishes the provisions that

will govern the conduct of the U.S. DoD or UK MoD Cooperative Project Personnel

(CPP). During the term of the PA, each Participant will be permitted to assign military

members or civilian employees of its U.S. DOD/UK MoD to the Joint Project Office

(JPO) if established, or to U.S. DoD or UK MoD field activities in accordance with this

Appendix. CPP will be able to perform all the responsibilities for the positions assigned

to them under this PA. Commencement of assignments will be subject to any

requirements that may be imposed by the other Participant or its government regarding

acceptance of PA CPP, such as, but not limited to, visas and visit request documentation.

The U.S. DoD and UK MoD SC representatives, or in the event no SC is established the

POs, will determine the length of tour for the positions at the time of initial assignment.

1.2 CPP will be assigned to the JPO or to U.S. DoD or UK MoD field activities for

project work (including work at U.S. or UK Contractor facilities) and will report to their

designated supervisor within those organizations regarding that work. The designated

supervisor will be responsible for the creation of a document describing the duties of each

CPP position, which will be subject to approval by the SC or, in the event no SC is

established the POs. CPP will not act as liaison officers for their parent organizations or

governments. Such personnel, however, may act from time to time on behalf of their SC

representative (or PO as applicable), if the latter so authorizes in writing.

1.3 CPP will not be assigned to command or other positions that would require them

to exercise responsibilities that are reserved by law or regulation to an officer or

employee of the Host Participant's government.

2.0 Security.

2.1 The U.S. DoD and UK MoD SC representatives (or POs as applicable) will

establish the maximum level of security clearance required, if any, to permit CPP to have

access to Classified Information and facilities in which Classified Information is used in

accordance with the Project Security Instruction (PSI) and Classification Guide (CG).

Access to Classified Information and facilities in which Classified Information is used

will be consistent with, and limited by, Section II (Objectives) and Section III (Scope of

Work) of this PA and the corresponding provisions of this Appendix, and will be kept to

the minimum required to accomplish the work assignments.
2.2 The Parent Participant will file visit requests for the CPP through prescribed

channels in compliance with the Host Participant's procedures. The Participants will

cause security assurances to be filed, through their respective embassies, specifying the

security clearances for the CPP being assigned. The security assurances will be prepared

and forwarded through prescribed channels in compliance with established procedures.

2.3 The Participants will use their best efforts to ensure that both the U.S. DoD and

UK MoD personnel assigned to the JPO or field activities are made aware of, and

required to comply with, applicable laws and regulations, as well as the requirements of

Section VIII (Disclosure and Use of Project Information), Section IX (Controlled

Unclassified Information), and Section XI (Security) of the MOU, and the corresponding

provisions of this Appendix, and the PSI and CG. Prior to commencing assigned duties,

CPP will, if required by the Host Participant's laws, regulations, policies, or procedures,

sign a certification concerning the conditions and responsibilities of CPP.

2.4 CPP will at all times be required to comply with the security and export laws,

regulations, and procedures of the Host Participant, as briefed in accordance with

paragraph 3.2 of this Appendix. Any violation of security or export procedures by CPP

during their assignment will be reported to the Parent Participant for appropriate action.

CPP committing willful violations of security or export laws, regulations, or procedures

during their assignments will be withdrawn from the project with a view toward

appropriate administrative or disciplinary action by the Parent Participant.

2.5 All Classified Information made available to CPP will be considered as Classified

Information furnished to the U.S. DoD or UK MoD, and will be subject to all of the

provisions and safeguards provided for in this PA, this Appendix, the MOU, the PSI, and

the CG.

2.6 CPP will not have personal custody of Classified Information or Controlled

Unclassified Information, unless approved by the JPO, if established and as authorized by

the Parent Participant. They will be granted access to such Information in accordance

with the provisions of the PSI during normal duty hours when access is necessary to

perform project work. They may not have unsupervised access to classified libraries or

operating centers, or to document catalogues, unless the Information therein is releasable

to the public.

2.7 CPP will not serve as a conduit between the U.S. DoD and the UK MoD for

requests for and/or transmission of Classified Information or Controlled Unclassified

Information unless specifically authorized by the PSI.

3.0 Administrative Matters.

3.1 The tax treatment of income received by CPP from the Parent Participant will be

determined by reference to the tax legislation of the government of the Host Participant

and the government of the Parent Participant, subject to the terms of any double taxation
agreement in force between the government of the host Participant and the government of

the Parent Participant, or by the terms of the NATO Status of Forces Agreement.

3.2 Upon or shortly after arrival, CPP will be informed by the JPO or Host Participant

duty station about applicable laws, orders, regulations, and customs and the need to

comply with them. CPP will also be provided briefings arranged by the JPO or Host

Participant duty station regarding applicable entitlements, privileges, and obligations

such as:

3.2.1 Any medical or dental care that may be provided to CPP and their

dependents at the Host Participant medical facilities, subject to applicable

laws and regulations, including reimbursement when required by such laws

and regulations, and any bilateral or multilateral agreements or arrangements;

3.2.2 Purchasing and patronage privileges at military commissaries,

exchanges, theaters, and clubs for CPP and their dependents, subject to

applicable laws and regulations, and any bilateral or multilateral agreements

or arrangements; and

3.2.3 Responsibility of CPP and those dependents accompanying them

to obtain motor vehicle liability insurance coverage in accordance with laws

and regulations applicable in the area where they are residing. In case of

claims involving the use of private motor vehicles by CPP and their

dependents, the recourse will be against such insurance.

3.3 The POs, through the JPO and Host Participant field activities, will establish

standard operating procedures for CPP in the following areas:

3.3.1 Working hours, including holiday schedules;

3.3.2 Leave authorization, consistent to the extent possible with the

military or civilian personnel regulations and practices of both Participants;

3.3.3 Dress regulations, consistent to the extent possible with the

military or civilian personnel regulations and practices of both Participants;

and

3.3.4 Performance evaluations, recognizing that such evaluations must

be rendered in accordance with the providing Participant's military or civilian

personnel regulations and practices.

3.4 CPP committing an offense under the laws of the government of either Participant

may be withdrawn from this project with a view toward further administrative or

disciplinary action by the Parent Participant. Disciplinary action, however, will not be

taken by the Host Participant against CPP from the Parent Participant, nor will CPP from

the Parent Participant exercise disciplinary authority over Host Participant personnel. In

B-14
accordance with the Host Participant's laws, regulations, and procedures, the Host

Participant will assist the Parent Participant in carrying out investigations of offenses

involving CPP.
APPENDIX 2 - INVENTORY OF PROJECT EQUIPMENT TRANSFERS

Providing Receiving QTY Description Part/ Consumables/ Return ReplaceParticipant Participant Stock # Non-Consumables Date . ment

Value
ANNEX C

MODEL PROJECT EQUIPMENT TRANSFER (PET) FORM

PET NUMBER (PET-XXXX*)

UNDER THE U.S. DoD-UK MoD

TEST AND EVALUATION PROGRAM (TEP) COOPERATION

MEMORANDUM OF UNDERSTANDING (MOU)

DATED

BETWEEN

(Insert titles of the Organizations participating in the transfer)

*The U.S. DoD will assign the PET number.
TABLE OF CONTENTS

ANNEX C -- MODEL PROJECT EQUIPMENT TRANSFER (PET) FORM

INTRODUCTION C-3

SECTION I

DESCRIPTION AND QUANTITY C-3

SECTION II

PURPOSE ..0-4

SECTION III

MANAGEMENT AND RESPONSIBILITIES C-4

SECTION IV

SPECIAL PROVISIONS C-6

SECTION V

CLASSIFICATION C-6

SECTION VI

MODIFICATION, TERMINATION, AND TRANSFER PERIOD C-6
INTRODUCTION

This Project Equipment Transfer (PET) is entered into pursuant to the Memorandum of

Understanding (MOU) between the Department of Defense of the United States of America

(U.S. DoD) and the Secretary of State for Defence of The United Kingdom of Great Britain and

Northern Ireland (UK MoD) for Test and Evaluation Program (TEP) Cooperation dated (insert

effective date of the TEP MOU). This TEP PET Form is being executed by authorized

representatives of the providing and receiving Participants pursuant to Section VII (Project

Equipment) of the TEP MOU.

SECTION I

DESCRIPTION AND QUANTITY

1.1 The following Project Equipment will be transferred by the providing Participant to the

receiving Participant:

Providing Receiving QTY Description Part/ Consumables/ Return ReplaceParticipant Participant Stock # Non-Consumables Date ment

Value

(Fill in as appropriate)

1.2 (Choose one of the following alternatives, or use both if both situations apply.)

Alternative A — Use when return of Project Equipment is planned

None of the Project Equipment identified in paragraph 1.1 is intended to be consumed or

expended during the course of the TEP Activity described in paragraph 2.1.1.

Alternative B Use when return of Project Equipment is not planned due to its consumption

during the activity.

The Project Equipment (specify as appropriate by highlighting in paragraph 1.1) described in

paragraph 1.1 is intended to be consumed or expended during the course of the TEP Activity

described in paragraph 2.1.1.
SECTION II

PURPOSE

2.1 The purpose of this PET is to support the following TEP Activity.

2.1.1 (Fill in as appropriate)

SECTION III

MANAGEMENT AND RESPONSIBILITIES 

3.1 Each Participant will establish a point of contact that will be responsible for

implementing this PET.

3.1.1 For the providing Participant the point of contact is:

Name

Title/Position

Organization 

Address

Email

3.1.2 For the receiving Participant the point of contact is:

Name

Title/Position

Organization 

Address

Email

3.2 Responsibilities of the Providing Participant

3.2.1 Transfer of the Project Equipment - The providing Participant will transfer the

Project Equipment listed above for the duration of the transfer period specified in

paragraph 6.4 of this PET unless extended by mutual written consent.
3.2.2 Project Equipment Delivery - The providing Participant will deliver the Project

Equipment (specify arrangements). Responsibility for the Project Equipment will pass

from the providing Participant to the receiving Participant at the time of receipt of the

Project Equipment. Any further transportation is the responsibility of the receiving

Participant unless otherwise specified in this paragraph.

3.2.3 Information - The providing Participant will furnish the receiving Participant such

Information as is necessary to enable the Project Equipment to be used in the TEP

Activity described in paragraph 2.1.1 of this PET in accordance with Section VIII

(Disclosure and Use of Information) of the TEP MOU.

3.3 Responsibilities of the Receiving Participant

3.3.1 Inspection and Inventory - The receiving Participant will inspect and inventory

the Project Equipment upon receipt. The receiving Participant will also inspect and

inventory the Project Equipment prior to its return to the providing Participant, unless the

Project Equipment is consumed in accordance with paragraph 3.3.2.

3.3.2 (Choose one of the following alternatives, or use both if both situations apply.)

Alternative A — Use when return of Project Equipment is planned

Return of Project Equipment: Upon expiration or termination of the transfer period specified in

paragraph 6.4 (taking into account any approved extension by the providing Participant), the

receiving Participant will return the Project Equipment to the providing Participant (specify

arrangements). If the Project Equipment is lost, unintentionally destroyed, or damaged beyond

economical repair, while in the custody of the receiving Participant, the receiving Participant will

issue a certificate of loss/destruction/irreparable damage to the providing Participant.

Alternative B — Use when return of Project Equipment is not planned due to its consumption

during the Activity.

Consumption of Project Equipment: It is intended that the receiving Participant will consume

the Project Equipment specified in paragraph 1.1 during the course of the TEP Activity described

in paragraph 2.1.1. If this does occur, the receiving Participant will provide written notice of its

consumption to the providing Participant. In the event consumption does not occur prior to the

end of the transfer period specified in paragraph 6.4, the receiving Participant will return the

Project Equipment to the providing Participant (specify arrangements). If the Project

Equipment is lost, unintentionally destroyed, or damaged beyond repair prior to its intended

consumption while in the custody of the receiving Participant, the receiving Participant will issue

a certificate of loss/destruction/irreparable damage to the providing Participant.

3.4 This TEP PET Form provides only for transfer of Project Equipment associated with the

TEP Activity described in paragraph 2.1.1. Signature of this TEP PET Form does not imply any

commitment by a Participant to participate in any activities beyond the PET described herein.

C-5
SECTION IV

SPECIAL PROVISIONS 

4.1 (Insert any special provisions as required If none, so state.)

SECTION V

CLASSIFICATION

5.1 (Insert only one of the two following paragraphs; note that one of these two options

must be selected.)

No classified Project Equipment will be transferred under this TEP PET Form.

or

The highest level of classified Project Equipment under this TEP PET Form is (insert level of

classification).

SECTION VI

MODIFICATION, TERMINATION, AND TRANSFER PERIOD

6.1 The provisions of this PET Form may be modified or extended by written mutual consent

of authorized representatives of the Participants in accordance with Section VII (Project

Equipment) of the TEP MOU.

6.2 The PET described in this TEP PET Form may be terminated at any time in accordance

with the following provisions:

6.2.1 Through the mutual written consent of the authorized representatives of the

Participants;

6.2.2 Unilaterally by the receiving Participant on 60 days written notice to the

providing Participant; and

6.2.3 Unilaterally by the providing Participant at any time.

6.3 Responsibilities regarding security and protection against unauthorized use, disclosure, or

transfer that accrued prior to termination or expiration of the transfer period will continue to

apply without limit of time in accordance with Section XVII (Amendment, Termination, Entry

Into Effect, and Duration) of the TEP MOU.
6.4 The transfer period for the Project Equipment described herein begins on the date of the

last signature below, and, unless terminated or extended, will continue until (enter date or

amount of time).

FOR THE DEPARTMENT OF DEFENSE

OF THE UNITED STATES OF AMERICA

FOR THE SECRETARY OF STATE FOR

DEFENCE OF THE UNITED KINGDOM

OF GREAT BRITAIN AND NORTHERN

IRELAND

Signature Signature

Name Name

Director, Operational Test and Evaluation Director General Research and Technology

Title Title

Date Date

Location Location