,i #aafth ,,congress #ast ,session ,h4 ,r4 #ajcc ,,in ,,the ,,house ,,of ,,representatives ,february #g1 #bjai,ms4 ,speier 7for herself1 ,mr4 ,jones1 ,mr4 ,raskin1 ,mr4 ,meadows1 ,mr4 ,ted ,lieu of ,california1 ,mr4 ,khanna1 and ,mr4 ,pocan7 introduced the following bill2 which was referred to the ,committee on ,foreign ,affairs ,a ,,bill ,to amend the ,arms ,export ,control ,act to modify certification and report requirements relating to sales of major defense equipment with respect to which nonrecurring costs of research1 development1 and production are waived or reduced under the ,arms ,export ,control ,act1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,return ,expenses ,paid ,and ,yielded ,act or ,,repay ,act4 #b4 ,modification of certification and report requirements relating to sales of major defense equipment with respect to which nonrecurring costs of research1 development1 and production are waived or reduced under the ,arms ,export ,control ,act 7a7 ,certification ,section #cf7;b7 of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bggf7;b77 is amended by adding at the end the following3 7#g7 7,a7 ,in the case of any letter of offer to sell any major defense equipment for #ad1jjj1jjj or more1 in addition to the other information required to be contained in a certification submitted to the ,congress under this subsection1 or a similar certification prior to finalization of a letter of offer to sell1 each such certification shall include the value of any charge or charges for the proportionate amount of any nonrecurring costs of research1 development1 and production of the major defense equipment that was waived or reduced under section #ba7;e74 7,b7 ,each such certification shall also include information on-- 7i7 the type of waiver or reduction2 7ii7 the percentage of otherwise obligated nonrecurring costs with respect to which the waiver or reduction comprises2 7iii7 a justification for issuance of the waiver or reduction2 7iv7 in the case of a waiver or reduction made under paragraph 7#b77;,a7 of section #ba7;e7-- 7,i7 the manner in which a sale would significantly advance standardization with the foreign countries or international organization described in such section2 and 7,,ii7 the extent to which the sale's significance should be considered relative to the existing capabilities of the foreign country or international organization and the manner in which the major defense equipment would enhance the capacity of the country or organization in joint operations2 and 7v7 in the case of a waiver or reduction made under paragraph 7#b77;,b7 of section #ba7;e7-- 7,i7 the military needs and ability to pay of the foreign country or international organization2 7,,ii7 the price and capability of other relevant options that are or likely would be considered by the foreign country or international organization for purchase in lieu of the major defense equipment described in the letter of offer2 and 7,,iii7 the previous buying history and existing capabilities of the foreign country or international organization4 4 7b7 ,report ,section #cf7;a7 of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bggf7;a77 is amended-- 7#a7 in paragraph 7#aa71 by striking and at the end2 7#b7 in paragraph 7#ab71 by striking the period at the end and inserting 2 and2 and 7#c7 by adding at the end the following3 7#ac7 with respect to requests to waive or reduce nonrecurring costs with respect to the sale of major defense equipment for #ad1jjj1jjj or more under this ,act1 a report on-- 7,a7 the total number of such requests that have been approved or denied during the quarter1 including the total number of such requests that are currently under review and pending a decision2 7,b7 for each such request-- 7i7 an identification of the foreign country or international organization requesting the waiver or reduction2 7ii7 the total amount of nonrecurring costs to be waived or reduced2 7iii7 a description of the major defense equipment to be purchased2 and 7iv7 the justification for the waiver or reduction2 and 7,c7 for each such request that is approved1 the actual amount of nonrecurring costs that are waived or reduced that are attributable to quantities of major defense equipment sold under such request4 4 7c7 ,repeal of waiver authority in case of sales of major defense equipment also being procured for use by ,united ,states ,armed ,forces ,section #ba7;e77#b7 of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgfa7;e77#b77 is amended-- 7#a7 in subparagraph 7,b7-- 7,a7 in the matter preceding clause 7i7-- 7i7 by striking ,the ,president and inserting ,except as provided subparagraphs 7,d7 and 7,e71 the ,president2 and 7ii7 by striking that-- and all that follows through 7i7 imposition and inserting that imposition2 7,b7 by striking sale2 or and inserting sale42 and 7,c7 by striking clause 7ii72 and 7#b7 by inserting at the end the following new subparagraphs3 7,d7 ,the ,president may not waive the charge or charges for a proportionate amount of any nonrecurring costs that would otherwise be considered appropriate under paragraph 7#a77;,b7 for a particular sale to a country or international organization for a two-year period that begins on any of the following dates3 7i7 ,the date of approval of a waiver under paragraph 7#a77;,b7 of a charge or charges that are valued at #af1jjj1jjj or more under this ,act with respect to a sale to the country or organization4 7ii7 ,the date that is the last day of any five-year period in which the country or organization receives #ae or more waivers of a charge or charges under paragraph 7#a77;,b7 with respect to sales to the country or organization4 7iii7 ,the date that is the last day of any five-year period in which the country or organization receives waivers of a charge or charges under paragraph 7#a77;,b7 that are valued at #dbe1jjj1jjj or more under this ,act with respect to sales to the country or organization4 7,e7 7i7 ,in the case of any proposed waiver of the charge or charges which would otherwise be considered appropriate under paragraph 7#a77;,b7 for a particular sale to a country or international organization of major defense equipment for #aj1jjj1jjj or more under this ,act1 the ,president shall submit to the ,speaker of the ,house of ,representatives1 the ,committee on ,foreign ,affairs of the ,house of ,representatives1 and to the chairman of the ,committee on ,foreign ,relations of the ,senate a notification with respect to such proposed waiver4 7ii7 ,the ,president may not waive such charge or charges if ,congress1 not later than #fj calendar days after receiving such notification1 enacts a joint resolution prohibiting the proposed waiver4 4 7d7 ,maximum aggregate amount of charges for administrative services ,section #ba7;e7 of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgfa7;e77 is amended-- 7#a7 in paragraph 7#a71 by inserting subject to paragraph 7#d71 before administrative services2 and 7#b7 by adding at the end the following new paragraph3 7#d7 7,a7 ,for each fiscal year beginning on or after the date of the enactment of the ,return ,expenses ,paid and ,yielded ,act1 the ,president shall-- 7i7 determine a maximum aggregate amount of charges for administrative services that would be required by paragraph 7#a77;,a7 based on the ability of the ,department of ,defense to issue and administer letters of offer for sale of defense articles or the sale of defense services pursuant to this section or pursuant to section #bb of this ,act2 and 7ii7 submit to ,congress a report that contains the determination and specifies the maximum aggregate amount of charges for administrative services4 7,b7 7i7 ,except as provided in clause 7ii71 charges for administrative services that are required by paragraph 7#a77;,a7 may not exceed the maximum aggregate amount of charges for administrative services determined under subparagraph 7,a7 for the fiscal year involved4 7ii7 ,the ,president may waive the requirement of clause 7i7 on a case-by-case basis if the amount of charges for administrative services that are required by paragraph 7#a77;,a7 with respect to a sale of defense articles or a sale of defense services would exceed the maximum aggregate amount of charges for administrative services determined under subparagraph 7,a7 for the fiscal year4 4 7e7 ,modification of administrative expenses 7#a7 ,in general ,section #dc7;b7 of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgib7;b77 is amended-- 7,a7 in paragraph 7#a71 by adding and at the end2 7,b7 in paragraph 7#b71 by striking 2 and and inserting a period2 and 7,c7 by striking paragraph 7#c74 7#b7 ,conforming amendment ,section #ba7;e77#a77;,a7 of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgfa7;e77#a77;,a77 is amended by striking and section #dc7;c74 7f7 ,biennial review and modification of user charges 7#a7 ,in general ,notwithstanding any other provision of law1 the ,secretary of ,defense1 acting through the ,director of the ,defense ,security ,cooperation ,agency1 shall1 not less than once every two years-- 7,a7 carry out a review of user charges under the foreign military sales program and1 based on the results of the review1 modify the user charges as appropriate2 and 7,b7 submit to the appropriate congressional committees a report that contains the results of the review carried out under subparagraph 7,a7 and a description of any user charges that1 based on the results of the review1 were modified under subparagraph 7,a74 7#b7 ,appropriate congressional committees defined ,in this subsection1 the term appropriate congressional committees means-- 7,a7 the ,committee on ,armed ,services and the ,committee on ,foreign ,affairs of the ,house of ,representatives2 and 7,b7 the ,committee on ,armed ,services and the ,committee on ,foreign ,relations of the ,senate4 #c4 ,review and report on use and management of administrative surcharges under the foreign military sales program 7a7 ,review 7#a7 ,in general ,the ,secretary of ,defense1 acting through the ,director of the ,defense ,security ,cooperation ,agency1 shall review options for expanding the use of administrative surcharges under the foreign military sales program1 including practices for managing administrative surcharges and contract administrative services surcharges4 7#b7 ,matters to be included ,the review conducted under paragraph 7#a7 shall include the following3 7,a7 ,a determination of which specific expenses are incurred by the ,united ,states ,government in operation of the foreign military sales program that the administrative surcharge does not currently pay for4 7,b7 ,the estimated annual cost of each of such specific expenses4 7,c7 ,an assessment of the costs and benefits of funding such specific expenses through the administrative surcharge1 including any data to support such an assessment4 7,d7 ,an assessment of how the ,department of ,defense could calculate an upper bound of a target range for the administrative surcharge account and the contract administration services surcharge account1 including an assessment of the costs and benefits of setting such a bound4 7,e7 ,an assessment of how the ,department of ,defense calculates the lower bound1 or safety level1 for the administrative surcharge account and the contract administration services surcharge account1 including what specific factors inform the calculation and whether such a method for calculating the safety level is still valid or should be revisited4 7,f7 ,an assessment of the process used by the ,department of ,defense to review and set rates for the administrative surcharge and the contract administration services surcharge1 including the extent to which outside parties are consulted and any proposals of the ,department of ,defense may have for better ensuring that the fee rates are set appropriately4 7,g7 ,such other matters as the ,secretary of ,defense determines to be appropriate4 7b7 ,report ,not later than #abj days after the date of the enactment of this ,act1 the ,secretary of ,defense1 acting through the ,director of the ,defense ,security ,cooperation ,agency1 shall submit to the congressional defense committees a report on-- 7#a7 the findings of the review conducted under paragraph 7#a72 and 7#b7 any legislative changes needed to allow the surcharge under the foreign military sales program to pay for any expenses currently not covered by administrative surcharge under the foreign military sales program4 7c7 ,foreign ,military ,sales program defined ,in this subsection1 the term foreign military sales program means the program authorized under chapter #b of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgfa et seq474 #d4 ,performance measures to monitor foreign military sales program 7a7 ,in general ,the ,secretary of ,defense1 acting through the ,director of the ,defense ,security ,cooperation ,agency and in consultation with the heads of other relevant components of the ,department of ,defense1 shall enhance the ability of the ,department of ,defense to monitor the performance of the foreign military sales program by taking the following actions3 7#a7 ,develop performance measures to monitor the timeliness of deliveries of defense articles and defense services to purchasers in accordance with the delivery schedule for each sale under the foreign military sales program4 7#b7 ,identify key choke points1 processes1 and tasks that contribute most significantly to delays1 shortcomings1 and issues in the foreign military sales program4 7#c7 ,review existing performance measures for the foreign military sales program to determine whether such measures need to be updated1 replaced1 or supplemented to ensure that all key aspects of the foreign military sales program's efficiency and service of ,united ,states national interests are able to be monitored and informed by reliable data4 7b7 ,report on performance measures 7#a7 ,in general ,not later than #ahj days after the date of the enactment of this ,act1 the ,secretary of ,defense1 acting through the ,director of the ,defense ,security ,cooperation ,agency1 shall submit to the congressional defense committees a report that lists the performance measures developed and identified under subsection 7a74 7#b7 ,matters to be included ,the report required by paragraph 7#a7 shall-- 7,a7 define the performance measures1 including targets set for the performance measures2 7,b7 identify the data systems used to monitor the performance measures2 7,c7 identify any concerns related to the reliability of the data used to monitor the performance measures2 and 7,d7 report the results for the performance measures for the most recent fiscal year4 7#c7 ,plan ,if the performance measures developed and identified under subsection 7a7 cannot be included in the report required by paragraph 7#a7 for the most recent fiscal year based on reliable and accessible data1 the report shall include a plan for ensuring that such data will be monitored within a defined period of time4 7#d7 ,update 7,a7 ,in general ,for each fiscal year after the fiscal year in which the report required by subsection 7b7 is submitted to the congressional defense committees1 the ,secretary of ,defense shall submit to the congressional defense committees an update of the report required by paragraph 7#a74 7,b7 ,matters to be included ,each update of the report required by paragraph 7#a7 shall also include the following3 7i7 ,for any performance measures that indicate a decreased level of performance from the prior year-- 7,i7 a description of the factors that led to such decreased level of performance2 and 7,,ii7 plans to improve such level of performance4 7ii7 ,for any performance measures that remain unable to be monitored due to lack of reliable and accessible data1 an update on plans to improve the monitoring of data4 7c7 ,briefing ,not later than #ahj days after the date on which the ,secretary of ,defense1 acting through the ,director of the ,defense ,security ,cooperation ,agency1 submits to the congressional defense committees the report required by subsection 7b71 the ,comptroller ,general of the ,united ,states shall provide a briefing to the congressional defense committees on the report1 including an evaluation of the performance measures developed and identified under subsection 7a74 #e4 ,report and briefing on administrative budgeting of foreign military sales program 7a7 ,in general ,not later than one year after the date of the enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall provide a briefing to the congressional defense committees and submit to the congressional defense committees a report on the methodology used by the ,department of ,defense to determine future-year needs for administrative surcharges under the foreign military sales program4 7b7 ,matters ,to be included ,the briefing and report required by subsection 7a7 shall include the following3 7#a7 ,a description of the methodology the ,department of ,defense used to develop the overall administrative budget of the foreign military sales program and the administrative budgets for each other relevant component of the ,department of ,defense that receives funds from the foreign military sales program4 7#b7 ,an assessment of the extent to which the methodology described in paragraph 7#a7 reflects relevant best practices4 7#c7 ,any other related matters the ,comptroller ,general determines to be appropriate4 #f4 ,definitions ,in this ,act3 7#a7 ,congressional defense committees ,the term congressional defense committees has the meaning given such term in section #aja of title #aj1 ,united ,states ,code4 7#b7 ,foreign military sales program ,the term foreign military sales program means the program authorized under chapter #b of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgfa et seq474