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‘‘(2) Not later than January 1 of each year, the Sec-
retary of Defense shall submit to the Committees on
Armed Services and on Foreign Relations of the Senate
and to the Committees on Armed Services and on Inter-
national Relations of the House of Representatives a re-
port specifying—
‘‘(A) the countries that are eligible to partici-
pate in a cooperative project agreement under this
section; and
‘‘(B) the criteria used to determine the eligi-
bility of such countries.’’.
(e) CONFORMING AMENDMENTS.—(1) The heading
of such section is amended to read as follows:
‘‘§ 2350a. Cooperative research and development
agreements: NATO organizations; allied
and friendly foreign countries’’.
(2) The item relating to such section in the table of
sections at the beginning of subchapter II of chapter 138
of title 10, United States Code, is amended to read as
follows:
‘‘2350a. Cooperative research and development agreements: NATO organiza-
tions; allied and friendly foreign countries.’’.
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SEC. 1213. COOPERATIVE AGREEMENTS WITH FOREIGN
COUNTRIES AND INTERNATIONAL ORGANIZA-
TIONS FOR RECIPROCAL USE OF TEST FA-
CILITIES.
(a) AUTHORITY.—Subchapter II of chapter 138 of
title 10, United States Code, is amended by adding at the
end the following new section:
‘‘§ 2350l. Cooperative agreements for reciprocal use
of test facilities: foreign countries and
international organizations
‘‘(a) AUTHORITY.—The Secretary of Defense, with
the concurrence of the Secretary of State, may enter into
a memorandum of understanding (or other formal agree-
ment) with a foreign country or international organization
to provide for the testing, on a reciprocal basis, of defense
equipment (1) by the United States using test facilities
of that country or organization, and (2) by that country
or organization using test facilities of the United States.
‘‘(b) PAYMENT OF COSTS.—A memorandum or other
agreement under subsection (a) shall provide that, when
a party to the agreement uses a test facility of another
party to the agreement, the party using the test facility
is charged by the party providing the test facility in ac-
cordance with the following principles:
‘‘(1) The user party shall be charged the
amount equal to the direct costs incurred by the pro-
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vider party in furnishing test and evaluation services
by the providing party’s officers, employees, or gov-
ernmental agencies.
‘‘(2) The user party may also be charged indi-
rect costs relating to the use of the test facility, but
only to the extent specified in the memorandum or
other agreement.
‘‘(c) DETERMINATION OF INDIRECT COSTS; DELEGA-
TION OF AUTHORITY.—(1) The Secretary of Defense shall
determine the appropriateness of the amount of indirect
costs charged by the United States pursuant to subsection
(b)(2).
‘‘(2) The Secretary may delegate the authority under
paragraph (1) only to the Deputy Secretary of Defense
and to one other official of the Department of Defense.
‘‘(d) RETENTION OF FUNDS COLLECTED BY THE
UNITED
STATES.—Amounts collected by the United
States from a party using a test facility of the United
States pursuant to a memorandum or other agreement
under this section shall be credited to the appropriation
accounts from which the costs incurred by the United
States in providing such test facility were paid.
‘‘(e) DEFINITIONS.—In this section:
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‘‘(1) The term ‘direct cost’, with respect to the
use of a test facility pursuant to a memorandum or
other agreement under subsection (a)—
‘‘(A) means 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; and
‘‘(B) may include costs of labor, materials,
facilities, utilities, equipment, supplies, and any
other resources of the test facility that are con-
sumed or damaged in connection with—
‘‘(i) the use; or
‘‘(ii) the maintenance of the test facil-
ity for purposes of the use.
‘‘(2) The term ‘indirect cost’, with respect to
the use of a test facility pursuant to a memorandum
or other agreement under subsection (a)—
‘‘(A) means 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; and
‘‘(B) may include general and administra-
tive expenses for such activities as supporting
base operations, manufacturing, supervision,
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procurement of office supplies, and utilities that
are accumulated costs allocated among several
users.
‘‘(3) The term ‘test facility’ means a range or
other facility at which testing of defense equipment
may be carried out.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such subchapter is amended by adding
at the end the following new item:
‘‘2350l. Cooperative agreements for reciprocal use of test facilities: foreign coun-
tries and international organizations.’’.
SEC. 1214. SENSE OF CONGRESS ON ALLIED DEFENSE
BURDENSHARING.
It is the sense of Congress that—
(1) the efforts of the President to increase de-
fense burdendsharing by allied and friendly nations
deserve strong support; and
(2) host nation support agreements with those
nations in which United States military personnel
are assigned to permanent duty ashore should be ne-
gotiated consistent with section 1221(a)(1) of the
National Defense Authorization Act for Fiscal Year
1998 (Public Law 105–85; 50 U.S.C. 1541(a)(1)),
which sets forth a goal of obtaining from any such
host nation financial contributions that amount to
75 percent of the nonpersonnel costs incurred by the