769 
(D) in the case of services procured from 
the Department of Defense, the amount of the 
additional costs incurred by the Department of 
Defense in providing such services, or, if re-
quired by law, actual costs; or 
(E) at any other cost agreed to by the 
owning or disposing agency. 
(3) CREDITING
OF
REIMBURSEMENT.—The 
amount of any such reimbursement or payment shall 
either be credited to current applicable appropria-
tions, funds, or accounts of such agency, to be avail-
able for the same purposes and for the same time 
period as the appropriation, fund or account to 
which transferred, or any such credited funds shall 
remain available for such purposes until expended. 
(d) REIMBURSEMENT TO THE DEPARTMENT OF DE-
FENSE.—Reimbursement or payment to the Department 
of Defense under subsection (c) shall exclude salaries of 
members of the United States Armed Forces (other than 
the Coast Guard) and unfunded estimated costs of civilian 
retirement and other benefits, unless otherwise required 
by law. 
(e) ESTABLISHMENT OF ACCOUNTS.— 
(1) AUTHORITY TO ESTABLISH; USES.—In fur-
nishing assistance under this Act, accounts may be 
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770 
established on the books of any Federal agency or, 
on terms and conditions approved by the Secretary 
of the Treasury, in banking institutions in the 
United States— 
(A) against which letters of commitment 
may be issued which shall constitute recordable 
obligations of the United States Government, 
and moneys due or to become due under such 
letters of commitment shall be assignable under 
the last sentence of section 3727(b) and section 
3727(c) of title 31, United States Code, and 
paragraphs (5) and (6) of section 6305(b) of 
title 41, United States Code; and 
(B) from which disbursements may be 
made to, or withdrawals may be made by, re-
cipient countries or agencies, organizations, or 
persons upon presentation of contracts, in-
voices, or other appropriate documentation. 
(2) ACCOUNTING
FOR
EXPENDITURES.—Ex-
penditure of funds that have been made available 
through accounts established under paragraph (1) 
shall be accounted for on standard documentation 
required for expenditure of funds of the United 
States Government. 
(f) RESPONSIBILITY OF AGENCIES.— 
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771 
(1) IN GENERAL.—The agency to which funds 
are transferred or allocated pursuant to the author-
ity of subsection (a), or any comparable provision of 
law, shall be the agency responsible for the manage-
ment and use of such funds. 
(2) AUDIT.—Any agreement for the transfer or 
allocation of such funds shall expressly provide that 
the Office of the Inspector General for the agency 
receiving the transfer or allocation shall perform 
periodic program and financial audits of the use of 
those funds. Funds transferred or allocated pursu-
ant to subsection (a) may be used for the cost of 
such audits. 
SEC. 10506. RETENTION AND USE OF CERTAIN ITEMS AND 
FUNDS. 
(a) RETENTION AND USE OF CERTAIN ARTICLES.— 
(1) AUTHORITY
TO
RETAIN, TRANSFER, AND 
USE.—Any articles procured to carry out this Act 
shall be retained by, or (upon reimbursement) trans-
ferred to and for the use of, such Federal agency as 
the President deems appropriate in lieu of being dis-
posed of to a foreign country or international organi-
zation, whenever in the judgment of the President 
the best interests of the United States will be served 
thereby. 
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772 
(2) LAWS GOVERNING DISPOSAL OF GOVERN-
MENT PROPERTY.—Any articles so retained may be 
disposed of without regard to provisions of law relat-
ing to the disposal of property owned by the United 
States Government, when necessary to prevent spoil-
age or wastage of such articles or to conserve their 
usefulness. 
(3) PROCEEDS
CREDITED
TO
APPROPRIA-
TIONS.—Funds realized from any disposal or trans-
fer of any articles shall revert to the respective ap-
propriation, fund, or account used to procure such 
articles or to the appropriation, fund, or account 
currently available for the same general purpose, 
and shall remain available until expended. 
(b) ARTICLES RECEIVED AS PAYMENT.—Whenever 
articles are transferred to the United States Government 
as repayment of assistance under this Act or the Foreign 
Assistance Act of 1961 (as in effect on the day before the 
date of the enactment of this Act), such articles may be 
used in furtherance of the purposes and within the limita-
tions of this Act. 
(c) FAILED TRANSACTIONS.—Funds realized as a re-
sult of any failure of a transaction financed under this 
Act to conform to the requirements of this Act, to applica-
ble rules and regulations of the United States Govern-
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773 
ment, or to the terms of any agreement or contract en-
tered into under this Act, shall revert to the respective 
appropriation, fund, or account used to finance such 
transaction or to the appropriation, fund, or account cur-
rently available for the same general purpose. 
(d) DISPOSAL OF DEFENSE ARTICLES.—Funds real-
ized by the United States Government from the sale, 
transfer, or disposal of defense articles furnished under 
chapter 2 of part II of the Foreign Assistance Act of 1961 
(as in effect on the day before the date of the enactment 
of this Act), and no longer needed for the purposes for 
which furnished, shall be credited to the respective appro-
priation, fund, or account currently available for the same 
general purpose. 
SEC. 10507. FOREIGN AND DOMESTIC EXCESS PROPERTY. 
(a) POLICY REGARDING USE OF EXCESS AND OTHER 
AVAILABLE PROPERTY.—In furnishing assistance under 
this Act— 
(1) excess personal property, or 
(2) if a substantial savings would occur, other 
property already owned by a Federal agency, 
may be utilized wherever practicable in lieu of or supple-
mentary to the procurement of new items for United 
States-assisted projects and programs. 
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774 
(b) AUTHORITY TO USE CERTAIN PROPERTY FOR 
ASSISTANCE PURPOSES.—The President is authorized to 
use funds made available under this Act to acquire— 
(1) property classified as domestic or foreign 
excess pursuant to the Federal Property and Admin-
istrative Services Act of 1949 (40 U.S.C. 471 and 
following), 
(2) any property available from a Federal agen-
cy, or 
(3) other property, 
for use of such property as assistance in furtherance of 
the purposes of this Act. Property acquired pursuant to 
this section may be furnished pursuant to any provision 
of this Act for which funds are authorized for the fur-
nishing of assistance, and shall be subject to the same con-
ditions and restrictions that apply to funds so authorized. 
(c) SEPARATE ACCOUNT.— 
(1) IN GENERAL.—The President is authorized 
for purposes described in subsection (b) to maintain 
in a separate account funds made available under 
this Act, free from fiscal year limitations (notwith-
standing section 1535(d) of title 31, United States 
Code) to pay costs (including personnel costs) of ac-
quisition and storage (including in advance of known 
requirements), renovation and rehabilitation, pack-
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ing, crating, handling, transportation, and related 
costs of handling and providing such property as as-
sistance. 
(2) REPAYMENT.—The separate account estab-
lished pursuant to this section may be repaid from 
funds made available pursuant to any provision of 
this Act for which funds are authorized for the fur-
nishing of assistance for all costs incurred. 
(d) CONDITIONS ON USE OF EXCESS PROPERTY.— 
(1) 
LIMITATION.—Government-owned 
excess 
property may not be made available for use under 
this Act unless approval is given and a determina-
tion is made in accordance with paragraph (2)— 
(A) before the shipment of such property 
for use in a specified country; or 
(B) if the property is already in such coun-
try, before the transfer of the property. 
(2) DETERMINATION.—A shipment or transfer 
subject to paragraph (1) may take place only after 
the President approves the shipment or transfer and 
makes a written determination— 
(A) that there is a need for such property 
in the quantity requested and that such prop-
erty is suitable for the purpose requested; 
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776 
(B) that the designated end-user has 
agreed to use and maintain such property effec-
tively, and has the ability to do so; and 
(C) that the residual value, serviceability, 
and appearance of such property would not re-
flect unfavorably on the image of the United 
States and would justify the costs of packing, 
crating, handling, transportation, and other ac-
cessorial costs, and that the residual value at 
least equals the total of these costs. 
(e) NONAPPLICABILITY
TO DEPARTMENT
OF DE-
FENSE.—This section shall not apply— 
(1) with respect to excess defense articles; and 
(2) with respect to funds made available for as-
sistance under this Act that is administered through 
the Department of Defense. 
SEC. 10508. OCEAN FREIGHT DIFFERENTIAL. 
(a) SHIPPING DIFFERENTIAL.—For purposes of fa-
cilitating implementation of section 901(b) of the Mer-
chant Marine Act, 1936 (46 U.S.C. app. 1241(b)), funds 
made available for the purposes of this Act may be used 
to pay for all or any portion of the differential between 
United States and foreign-flag vessel charter or freight 
rates. 
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(b) DETERMINATIONS.—The amount of the differen-
tial between United States and foreign-flag vessel charter 
or freight rates shall be determined by the Secretary of 
Transportation, or in the case of food assistance, by the 
Secretary of Transportation in consultation with the Sec-
retary of Agriculture and the Administrator. 
(c) USE
OF
FOREIGN
CURRENCIES.—Payments 
under this section shall be made in United States-owned 
foreign currencies wherever feasible. 
(d) CERTAIN LAWS NOT APPLICABLE.—The ocean 
transportation between foreign countries of commodities 
purchased with foreign currencies made available or de-
rived from funds made available under this Act or the Ag-
ricultural Trade Development and Assistance Act of 1954 
(7 U.S.C. 1691 and following), or any predecessor Acts, 
and transfers of fresh fruit and fresh fruit products under 
this Act, shall not be governed by section 901(b) of the 
Merchant Marine Act, 1936 (46 U.S.C. app. 1241(b)), or 
any other law relating to the ocean transportation of com-
modities on United States flag vessels. 
SEC. 10509. USE OF AIRCRAFT FOR ADDITIONAL PURPOSES. 
(a) TRANSFER AUTHORITY.— 
(1) IN GENERAL.—Aircraft procured for nar-
cotics control purposes with funds made available 
under this Act, the Foreign Assistance Act of 1961 
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778 
(as in effect on the day before the date of the enact-
ment of this Act), or any Act making appropriations 
for the Department of State, foreign operations, and 
related programs, may be used for any other pro-
gram, country or region, including for the transpor-
tation of Civilian Response Corps personnel and 
equipment during a deployment. 
(2) RULE OF CONSTRUCTION.—The authority 
of paragraph (1) may be exercised notwithstanding 
section 5207 or any other provision of law pre-
cluding the use of aircraft described in paragraph 
(1). 
(b) DETERMINATION
REQUIRED.—The authority 
provided in subsection (a) may be exercised only if the 
Secretary determines that— 
(1) the such aircraft is no longer required to 
meet programmatic purposes in the originally des-
ignated program, country, or region, or 
(2) there is an emergency need for such aircraft 
in another program, country or region. 
(c) NOTIFICATION.—The appropriate congressional 
committees shall be notified— 
(1) of a determination under subsection (b); 
and 
(2) prior to a transfer under subsection (a). 
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(d) AIRCRAFT COORDINATION AND USE.— 
(1) IN GENERAL.—Aircraft purchased or leased 
by the Department of State or the United States 
Agency for International Development under this 
Act, the Foreign Assistance Act of 1961 (as in effect 
on the day before the date of the enactment of this 
Act), or any Act making appropriations for the De-
partment of State, foreign operations, and related 
programs shall be— 
(A) coordinated by the relevant Chief of 
Mission; 
(B) made available for the transportation 
of personnel supporting the programs and ac-
tivities of the Department of State or the 
United States Agency for International Devel-
opment, as the case may be; and 
(C) made available for official travel for 
other agencies for other purposes on a reim-
bursable basis, or without reimbursement when 
traveling on a space-available basis. 
(2) RULE OF CONSTRUCTION.—The authority 
of paragraph (1) may be exercised notwithstanding 
section 5207 or any other provision of law pre-
cluding the use of aircraft described in paragraph 
(1). 
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SEC. 10510. STREAMLINING AND REVIEW OF PROCURE-
MENT PROCESS. 
(a) POLICY.—In carrying out assistance under this 
Act, the Administrator should seek to— 
(1) maximize the transparency, efficiency, sim-
plicity, and speed of the acquisitions and assistance 
process; 
(2) attract and enable a wide range of United 
States entities to compete for awards, regardless of 
whether they are large or small, private enterprises 
or nonprofit organizations, or have previously 
partnered with the Agency; 
(3) ensure that decisions regarding the use of 
acquisitions and assistance instruments are made 
without prejudice or bias toward or against private 
enterprises or nonprofit organizations; and 
(4) harmonize procurement rules, regulations, 
policies and practices with those of other Federal 
agencies. 
(b) STREAMLINING PROCEDURES.—To streamline 
the process for making awards, the Administrator 
should— 
(1) create simplified solicitations, structured 
scopes of work, standardized proposals and assist-
ance templates, and joint funding models under 
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which multiple offices and agencies can fund inte-
grated programs; 
(2) consider pre-qualification short-lists to re-
duce award time; 
(3) improve training for contracting and pro-
curement personnel; 
(4) increase transparency on anticipated activi-
ties; and 
(5) improve communications and consultation 
with the public and with private partners, including 
outreach and information services to potential new 
partners. 
(c) ACQUISITIONS AND ASSISTANCE.—To ensure the 
appropriate balance and use of acquisitions and assistance 
instruments, the Administrator shall— 
(1) issue a policy and guidelines regarding the 
use and application of each type of instrument, in-
cluding the responsibility of personnel of the Agency 
with respect to the administration of each type of in-
strument; 
(2) make such guidelines public; 
(3) ensure that Agency personnel receive ade-
quate training on the use and application of each 
type of instrument; and 
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(4) review and update, as necessary, such policy 
and guidelines in light of recommendations received 
by the committee established under subsection (d). 
(d) OPERATIONAL ISSUES REVIEW COMMITTEE.— 
The Administrator should convene an Advisory Com-
mittee, pursuant to the Federal Advisory Committee Act, 
to— 
(1) assist in updating Agency procedures and 
regulations to improve the transparency, efficiency, 
simplicity, and speed of the acquisitions and assist-
ance process; 
(2) review the procedures, policy and guidelines 
developed under subsections (b) and (c); and 
(3) provide advice and guidance on other oper-
ational issues, as appropriate. 
Such Committee should include broad representation of 
both private enterprises and nonprofit organizations. 
(e) HARMONIZATION OF PROCUREMENT RULES.— 
The Administrator shall convene a working group, incor-
porating representatives of all Federal agencies carrying 
out activities under title I, to harmonize rules, regulations, 
policies and practices regarding procurement. 
(f) RULEMAKING PROCEDURES.—The Administrator 
shall apply the same rulemaking procedures to policies re-
garding assistance instruments as are applied to policies 
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783 
regarding acquisition instruments, and shall ensure that 
all such procedures are carried out in compliance with sec-
tion 533 of title 5, United States Code. 
SEC. 10511. OVERSEAS PROCUREMENT FLEXIBILITY. 
Section 3 of the State Department Basic Authorities 
Act of 1956 (22 U.S.C. 2670) is amended by— 
(1) in subsection (l), by striking ‘‘and’’ at the 
end; 
(2) in subsection (m), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(n) make and carry out contracts for procurement 
outside the United States of goods or services needed for 
the operation of United States diplomatic and consular 
posts and related facilities outside the United States, pro-
vided that— 
‘‘(1) laws of the United States relating to the 
negotiation, making, contents or performance of gov-
ernment contracts for goods or services, and advance 
payments and indemnification in relation to such 
contracts shall apply with respect to such contracts 
except to the extent that the Secretary determines 
(other than for purposes of chapter 21 of title 41, 
United States Code) that the Secretary could not 
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