TREATIES AND OTHER INTERNATIONAL ACTS SERIES 13057 

________________________________________________________________________ 

DEFENSE COOPERATION 

E-3 Aircraft 

 Memorandum of Agreement 

Between the 

UNITED STATES OF AMERICA 

and the NATO AEW&C PROGRAMME 

MANAGEMENT ORGANIZATION 

Signed at Washington and Brunssum 

August 10 and 30, 1999 

 with 

Annex 
 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.” 
 NATO AEW&C PROGRAMME 

MANAGEMENT ORGANIZATION 

 Defense Cooperation: E-3 Aircraft 

Memorandum of agreement signed at 

 Washington and Brunssum August 10 and 30, 1999; 

Entered into force August 30, 1999. 

With annex. 
MEMORANDUM OF AGREEMENT

BETWEEN

THE DEPARTMENT OF THE AIR FORCE

OF THE UNITED STATES OF AMERICA

AS REPRESENTED BY THE

DEPUTY UNDER SECRETARY OF THE AIR FORCE FOR INTERNATIONAL

AFFAIRS

THE NATO AEW&C PROGRAMME MANAGEMENT ORGANIZATION

(NAPMO)

AS REPRESENTED BY THE

NAPMA GENERAL MANAGER

CONCERNING

COOPERATIVE PROJECTS

FOR THE E-3 AIRCRAFT

Date: 30 August 1999
TABLE OF CONTENTS

Page

SECTION 1: INTRODUCTION 	 1

SECTION 2: OBJECTIVES 	 1

SECTION 3: SCOPE OF WORK 	 1

SECTION 4: MANAGEMENT (ORGANIZATION AND RESPONSIBILITY)	2

SECTION 5: CONTRACTUAL ARRANGEMENTS 	 3

SECTION 6: FINANCIAL ARRANGEMENTS	 4

SECTION 7: WORK SHARING	

5

SECTION 8: JOINT PROJECT EQUIPMENT DISPOSITION 	 5

SECTION 9: INFORMATION TRANSFER AND RIGHTS	 5

SECTION 10: VISITS TO ESTABLISHMENTS 	 6

SECTION 11: SECURITY	

6

SECTION 12: THIRD PARTY SALES AND TRANSFERS 	 6

SECTION 13: TAXES AND CUSTOMS DUTIES 	 7

SECTION 14: SETTLEMENT OF DISPUTES 	 6

SECTION 15: DURATION, AMENDMENT, TERMINATION, AND EFFECTIVE DATE 	7

Annex A: FORMAT FOR PROJECT AGREEMENTS A-1
SECTION 1: INTRODUCTION

The NATO AEW&C Programme Management Organization (NAPMO) and the

Department of the Air Force of the United States of America enter into this Memorandum of

Agreement (MOA) Concerning Cooperative Projects, as defined in paragraph 3.1. below, for the

E-3 Aircraft pursuant to the Multilateral Memorandum of Understanding (MMOU) between the

North Atlantic Treaty Organization Ministers of Defense on the NATO E-3A Cooperative

Program, 6 December 1978, as Addended on 10 December 1990 and as amended and

supplemented (hereinafter referred to as "MMOU as Addended").

SECTION 2: OBJECTIVES

2.1 The objective of this MOA is to define and establish the general principles that will apply

to the initiation, execution, and management of cooperative projects established between the

Parties.

2.2 A separate Project Agreement (PA) will be established for each project that is chosen for

cooperation under the terms of this MOA. The provisions of this MOA are incorporated by

reference in each PA. Each PA will include, as a minimum, provisions concerning the objective,

scope of work, management structure, financial arrangements, schedule and responsibilities of the

Parties in accordance with the format set forth in Annex A, to the maximum extent practicable.

Where applicable, each PA also will address system acquisition considerations such as logistics

and test.

2.3 The Parties intend that all activities, work and documentation required in support of the

performance under this MOA and its PAs will be shared to the fullest possible extent. However,

all such transfer of information and documentation is subject to U.S. and other disclosure

policies.1

SECTION 3: SCOPE OF WORK

3.1 The scope of work for projects falling under this MOA will include cooperation on any

mutually agreed joint activity, such as studies, technology insertion, development and/or

production that will sustain or enhance the capabilities of their respective E-3 fleets.

3.2 Due to changes in requirements or technology, either Party may make unique

improvements to its own E-3 aircraft at its own expense. Prior to making such improvements, the

initiating Party will endeavor to notify the other Party in sufficient time to allow the latter to

conduct an impact analysis and determine if the potential exists for a cooperative project. Every

effort will be made to minimize adverse impacts to the US and NATO fleets. A Party will bear

sole responsibility for financing any unique improvement which is not adopted by the other Party.

1	

See U.S. Secretary of Defense statement pertaining to the special status of the NATO AWACS program to the NATO

Secretary General, dated 10 September 1991.

1
The Party not adopting the improvement will bear sole responsibility for continued maintenance

and supportability of the existing system.

SECTION 4: MANAGEMENT (ORGANIZATION AND RESPONSIBILITY)

4.1 General. Existing United States Government (USG) and NAPMO management

arrangements will remain in effect, modified as necessary by written mutual agreement to comply

with the MMOU, as Addended, and this MOA, to effect coordination in the execution of projects

and to achieve the benefits of cooperation.

4.2 Program Management Relationships. The Assistant Secretary of the Air Force

(Acquisition) (SAF/AQ) has designated the Director for Information Dominance (SAF/AQI) as

the overall executive focal point for USAF support for the projects. SAF/AQ has assigned

executive program management and execution responsibility for the projects to the Air Force

Program Executive Officer for Command and Control (AFPEO/C2) and day-to-day program

management responsibility to the U.S. AWACS System Program Office Director (SPO Director).

The NATO AEW&C Program Management Agency (NAPMA) is NAPMO's executive

management agency. NAPMA will serve as the focal point and single point of coordination for all

NATO efforts under this Agreement. The NATO AEW Force Command and other NATO

organizations will provide functional support as required.

4.3 Program Management Tasks. The Parties shall assume joint responsibility for the

following project management tasks:

4.3.1 Establish an overall schedule for the execution of the cooperative projects.

4.3.2 Prepare, coordinate, and approve PAs. These PAs will be prepared in accordance with the

format provided in Annex A, to the maximum extent practicable, and as promulgated will become

an integral part of this MOA.

4.3.3 Evaluate the progress of the projects and attend meetings with contractors.

4.3.4 Coordinate project planning and implementation, in order to obtain the benefits from

common sources, as well as any economies of scale.

4.3.5 Convene project status reviews, as required.

4.3.6 Make all possible efforts to reduce or eliminate any adverse cost, schedule, or technical

performance impacts between the various ongoing U.S. and NATO E-3 programs as a result of

any projects.

4.4. Configuration Management. The USAF and NATO will retain configuration control

authority for their respective E-3 systems. The Parties will implement configuration management

2
and control for the projects consistent with the Acquisition Agreement (Configuration

Management).2

SECTION 5: CONTRACTUAL ARRANGEMENTS

5.1 If the Parties determine that contracting is necessary to fulfill their obligations under a PA,

one Party may contract for both Parties in accordance with applicable laws, regulations and

procedures. Such contractual arrangements will be detailed in that particular PA. The Procuring

Contracting Officer (PCO) will prepare and negotiate all contracts issued under the authority of

this Agreement, consistent with the contracting Party's applicable laws, policies, regulations and

procedures. While the PCO will coordinate with the other Party prior to the issuance of any

contract direction materially affecting the other Party's interests, only the PCO has the authority

to provide direction to contractors. The Parties will jointly agree on payment schedules for their

requirements, which will be incorporated in the appropriate contracts.

5.2 If either Party determines that contracting is necessary to fulfill that Party's obligations

pursuant to a cooperative project under a PA, that Party may individually contract to undertake a

task, in which case it shall be solely responsible for its own contracting and the other Party shall

not be subject to any liability arising from such contracts without its written consent. For all

contracting activities performed by either Party, the Parties shall, upon request, provide a copy of

all statements of objectives for information prior to the issuance of solicitations.

5.3 Each Party's contracting officer shall insert into its contracts (and require its contractors to

insert in subcontracts) under a PA suitable provisions to satisfy the requirements of this

Agreement including, Section 9 (Information Transfer and Rights), Section 11 (Security) and

Section 12 (Third Party Sales and Transfers). Each Party's contracting officer shall negotiate to

obtain the rights to use and disclose Project Information required by Section 9 (Information

Transfer and Rights). Each Party shall also advise prospective contractors of their obligation to

notify immediately their respective Party's contracting officer before and after contract award if

the contractors are subject to any license or agreement that shall restrict their freedom to disclose

information or permit its use.

5.4. In the event a Party's contracting agency is unable to secure adequate rights to use and

disclose information as required by Section 9 (Information Transfer and Rights), or is notified by

contractors or potential contractors of any restrictions on the disclosure and use of information,

that Party's project manager shall notify the other Party's project manager of the restriction(s).

5.5 Each Party's project manager shall immediately advise the other of any anticipated or actual

cost growth, schedule changes, or performance problems of any contractor for which it is

responsible.

2	

Acquisition Agreement between the United States Government (USG) and the NATO AEW&C Programme

Management Organization (NAPMO) for Acquisition of the NATO E-3A Aircraft, Engines and Related Articles and Services

dated June 17, 1987.

3
5.6. For unique requirements outside the scope of this Agreement, Parties shall be responsible for

contracting on their own behalf in accordance with their respective contracting procedures.

Subject to separate written agreement, a Party may contract for the unique requirements of the

other Party.

SECTION 6: FINANCIAL ARRANGEMENTS

6.1 Each Party shall contribute its equitable share of the full financial and nonfinancial costs

incurred in performing, managing, and administering its responsibilities and activities under each

PA, including overhead costs, administrative costs, and costs of claims, and each Party shall

receive an equitable share of the results. The tasks to be performed by each Party shall be

established in each PA. The assignment of tasks shall represent an equitable sharing of the costs

and work to be performed under the PA.

6.2 This MOA creates no financial or non-financial commitments regarding individual PAs.

Detailed descriptions of the financial arrangements for a specific PA, including each Party's cost

share, shall be contained in that PA.

6.3 US obligations under this MOA and its PAs are subject to U.S. laws, regulations and the

availability of U.S. appropriated funds for such purposes. NAPMO obligations under this MOA

and its PAs are subject to NAPMO regulations and the availability of NAPMO funding. The

Parties will contribute their agreed share of the non-recurring costs as well as, as appropriate,

their separate recurring costs.

6.4. With respect to contracts entered into and other obligations incurred by one Party on behalf

of the other, the Parties agree: to pay their respective shares of contracts or other obligations

according to the financial arrangements in each Pk to make funds available in such amounts and

at such times as may be required by the contracts or other obligations; and to pay their respective

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

contracts or other obligations. Such payment requirements shall be determined by the appropriate

contracting officer. All required funds shall be made available to the appropriate Party in advance

of the time such payments, damages or costs are due.

6.5 When the USAF contracts for USAF and NAPMO requirements, funds transfer arrangements

established under the Acquisition Agreement will continue in effect for cooperative projects, as

appropriate. When NAPMA contracts for USAF and NAPMO requirements, funds transfer

arrangements will be set forth under the established PA.

6.6 If either Party cannot provide its share of the full project cost, that Party shall consult with

the other Party and, if necessary, withdraw from the project in accordance with Section 15 of this

MOA.

6.7 In accordance with Section V of the MMOU, as Addended, the NAPMO nations will provide

all possible assistance to minimize project cost, meet schedules and fulfill project requirements.

4
SECTION 7: WORK SHARING

7.1 The Parties' goal is that the work to be performed under this MOA and its PAs will be

shared in proportion to the cost contribution of the Parties to the maximum extent possible,

consistent with high technical merit, reasonable cost, and the need to achieve the timely,

economical, and efficient execution of the cooperative projects. This work will encompass those

requirements contained in the specific PAs that are common to the Parties and are funded

pursuant to a PA.

7.2 Neither Party may impose any requirement for work sharing or other industrial or

commercial compensation in connection with this MOA that is not in accordance with this MOA.

SECTION 8: JOINT PROJECT EQUIPMENT DISPOSITION

Disposition of jointly funded assets acquired under PAs to this MOA may include, by mutual

agreement as to terms, the transfer of the interest of one Party in such assets to the other Party, or

by the sale of such assets to a third party in accordance with Section 12 (Third Party Sales and

Transfers). The Parties will divide jointly-funded assets (special test equipment, tooling, etc.)

used for project efforts in the same ratio that costs were shared for these assets. The Parties will

determine title to those assets by mutual agreement. Each Party shall ensure that the other party is

provided information on all assets acquired (e.g., nomenclature, part number, serial number,

quantity and value) to determine title to assets. The Parties shall share the consideration from

jointly acquired program assets transferred to a third Party in the same ratio that costs were

shared for these assets.

SECTION 9: INFORMATION TRANSFER AND RIGHTS

9.1. Both Parties recognize that successful collaboration will require the exchange of technical

information necessary to carry out the cooperative projects under this MOA. The Parties shall

conduct all such transfers as expeditiously as possible, consistent with applicable laws, policies,

and regulations, and Section XII of the MMOU as Addended and this MOA.3

9.2. The USAF and NAPMA will share equitably all project plans, reports, minutes, briefing

charts, test/acceptance results, financial, schedule, technical data and software, subject to U.S. or

other disclosure policies generated in the performance of a PA to this MOA.

9.3 The Parties will require sufficient technical data to enable them to establish and perform

organizational and depot hardware and software maintenance of the modifications to enable

effective and efficient operation. The Parties also recognize that U.S. or other disclosure policies

may restrict the release of certain data, but agree that such release restrictions will be minimized

to the maximum extent possible.

3	

Paragraph 13 of Section XII brings the NATO E-3A Cooperative Program under the umbrella of the NATO

Agreement on the Communication of Technical Information for Defense Purposes, 19 October 1970.

5
SECTION 10: VISITS TO ESTABLISHMENTS

10.1 The USAF will permit NAPMA personnel to visit United States facilities, as required, in

furtherance of these cooperative projects, provided that the visit is authorized by both Parties.

NAPMA will provide similar support to the U.S. for its personnel and contractors for visits to

European or Canadian facilities. All visitors must possess the appropriate security clearances and

the requisite need-to-know.

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

Party, consistent with Section XXI of the MMOU, as Addended. Visitors will treat any

information disclosed or made available to them as if it had been supplied to the Party sponsoring

the visiting personnel and will protect such information in accordance with the terms of this MOA

and the MMOU, as Addended.

SECTION 11: SECURITY

Security arrangements shall be consistent with Section XXI of the MMOU, as Addended.

Appropriate classification guidance will be prepared for each project.

SECTION 12: THIRD PARTY SALES AND TRANSFERS

12.1 The Parties may enter into arrangements with third parties outside of this MOA subject to

all requirements of this MOA and the MMOU, as Addended.

12.2 If the Parties and/or the participating NAPMO governments or industries sell to third

parties any item cooperatively developed, produced or modified under this MOA, in the absence

of a waiver duly authorized by the Parties, the sales agreement will provide for appropriate

recovery of non-recurring costs, consistent with applicable U.S. laws, regulations, policies, and

procedures, and with the MMOU, as Addended. Any recovery of such costs shall be in

proportion to the recovering Party's actual contributions to the non-recurring costs of the item

sold. The Parties may each separately waive their share of otherwise-recoverable costs.

SECTION 13: TAXES AND CUSTOMS DUTIES

Arrangements regarding taxes and customs duties, as outlined in Section XX of the MMOU, as

Addended, will apply to this MOA.

SECTION 14: SETTLEMENT OF DISPUTES

The Parties shall resolve any disagreements arising under, or relating, to this MOA only by

consultation between the Parties. The Parties shall resolve any disagreements between themselves

expeditiously and at the lowest possible level. Pending resolution of any dispute, the Parties will

6
take appropriate actions to avoid or minimize adverse impacts to both U.S. and NATO E-3

programs.

SECTION 15: DURATION, AMENDMENT, TERMINATION, AND EFFECTIVE DATE

15.1 Duration. This MOA will enter into effect upon signature by both Parties, and will

remain in effect for 20 years unless terminated earlier, in accordance with paragraph 15.4.

15.2 Amendment. The Parties may amend this MOA or its PAs at any time by mutual written

agreement.

15.3 In the event of conflict between a provision of the MOA and a PA to this MOA, the MOA

will govern.

15.4 Termination.

15.4.1 This MOA and/or its PAs may be terminated at any time upon the mutual written

agreement of the Parties. In the event both Parties agree to terminate this MOA and/or a PA, the

Parties will consult prior to the date of termination to ensure termination on the most economical

and equitable terms. A status report will be jointly prepared by the AWACS SPO and NAPMA

and furnished to SAF/AQ and NAPMO.

15.4.2 Either Party may terminate this Agreement and/or a PA upon 90 days written notification

to the other Party. Such notice will be the subject of immediate consultation by the Parties to

decide upon the appropriate course of action. In the event of such termination, the terminating

Party will have no obligation to make payments under the project after the effective date of

termination, except to the extent such payments are in reimbursement of actual termination costs

incurred in connection with, and properly chargeable to, the project.

15.4.3 If requested by the other Party, the terminating Party may, on a reimbursable basis,

continue to administer contract(s) that it awarded on behalf of the other Party.

7
15.4.4 The respective rights and obligations of the Parties regarding Section 8 (Joint Project

Equipment Disposition), Section 9 (Information Transfer and Rights), Section 11 (Security), and

Section 12 (Third Party Sales and Transfers), will continue after the expiration or termination of

this MOA and any of its PAs.

FOR THE DEPARTMENT OF THE	FOR THE NATO AEW&C

AIR FORCE OF THE UNITED	PROGRAMME MANAGEMENT

STATES OF AMERICA	ORGANIZATION

(Signature)

Jeffrey B. Kohler, Brig Gen, USAF

Asst Dep Under Sec of the Air Force

International Affairs

(Printed Name and Title)

August 10, 1999

(Date)

Washington, DC

(Signature)

Manfred Erl, Brig. Gen., GEAF

General Manager, NATO AEW&C

Programme Management Agency 

(Printed Name and Title)

30 August 1999 

(Date)

Brunssum, The Netherlands.

(Location) (Location)

8
ANNEX A

PROJECT AGREEMENT

TO

MEMORANDUM OF AGREEMENT

BETWEEN

THE DEPARTMENT OF THE AIR FORCE

OF THE UNITED STATES OF AMERICA

AS REPRESENTED BY THE

DEPUTY UNDER SECRETARY OF THE AIR FORCE FOR

INTERNATIONAL AFFAIRS

THE NATO AEW&C PROGRAMME MANAGEMENT ORGANIZATION

(NAPMO)

AS REPRESENTED BY THE

NAPMA GENERAL MANAGER

CONCERNING

COOPERATIVE PROJECTS

FOR THE E-3 AIRCRAFT

Dated:

FOR

(FULL DESIGNATION OF THE PROJECT)

PROJECT AGREEMENT NUMBER
TABLE OF CONTENTS

SECTION	

PAGE

Section 1	INTRODUCTION	 A-3

Section 2	DEFINITION OF TERMS AND ABBREVIATIONS 	A-3

Section 3	OBJECTIVES	 A-3

Section 4	SCOPE OF WORK	 A-3

Section 5	SHARING OF WORK	 A-3

Section 6 PROJECT MANAGEMENT 	 A-3

Section 7 CONTRACTING ARRANGEMENTS	 A-3

Section 8	FINANCIAL ARRANGEMENTS	 A-3

Section 9	CLASSIFICATION/SECURITY	 A-4

Section 10 ENTRY INTO FORCE, DURATION, AND 	A-4

TERMINATION

2
SECTION 1 INTRODUCTION

This Project Agreement (PA) hereby establishes the as a

project in accordance with the Memorandum of Agreement between the USAF and NAPMO

Concerning Cooperative Projects for the E-3 aircraft, dated the provisions of which are

hereby incorporated by reference.

SECTION 2 DEFINITION OF TERMS AND ABBREVIATIONS

(Define unique terms used in this PA, as appropriate)

SECTION 3 OBJECTIVES

The objectives of the Project are:

(List objectives in as much detail as possible, particularly referencing applicable program

documents and operational requirements.)

SECTION 4 SCOPE OF WORK

The following work will be undertaken under this Project:

(List specific tasks and deliverable products if any, including design, development, logistics, test,

and production activities.)

SECTION 5 SHARING OF WORK (Describe in general what each Party will do/accomplish)

SECTION 6 PROJECT MANAGEMENT

7.1 USAF Project Manager:

7.2 NAPMA Project Manager:

SECTION 7 CONTRACTING ARRANGEMENTS

(Describe any unique contracting provisions)

SECTION 8 FINANCIAL ARRANGEMENTS

The Parties estimate that the total cost of this Project will be XXX TY USD.

The USAF share of the work will be $

The NAPMO share of the work will be $ 3
Cooperative efforts of the Parties over and above the jointly agreed work set forth in the SCOPE

OF WORK, SHARING OF WORK, and FINANCIAL ARRANGEMENTS section shall be

subject to an amendment to this PA or signature of a new PA (e.g., payment schedule)

SECTION 9 CLASSIFICATION/SECURITY

(Detail any classification guidance and special security handling instructions.)

SECTION 10 ENTRY INTO FORCE, DURATION AND TERMINATION

This PA, a Project under the MOA between the USAF and NAPMO,

shall enter into force upon signature by the Parties, and shall remain in force for years or

until termination of the MOA or termination by either Party of this PA. It may be extended by

written agreement by the Parties.

FOR THE DEPARTMENT OF THE	FOR THE NATO AEW&C

AIR FORCE OF THE UNITED	PROGRAMME MANAGEMENT

STATES OF AMERICA	ORGANIZATION

(Signature) (Signature)

(Printed Name and Title) (Printed Name and Title)

(Date) (Date)

(Location) (Location)

4