10 U.S.C. § 2344 — Methods of payment for acquisitions and transfers by the United States

(a) Under this subchapter, the United States may acquire or transfer logistics support, supplies, and services on a reimbursement basis, by replacing them in kind, or by exchanging supplies or services of equal value. (b)(1) When negotiating reimbursable agreements with another NATO or foreign country, the Secretary of Defense must seek reciprocal pricing rules: (A) a supplying country’s price for items or services it buys from contractors for the recipient may not be less favorable than the contractors’ price to the supplying country’s armed forces, allowing for delivery and similar differences; and (B) the price for supplies from the supplying country’s inventory and for support or services furnished by its government must equal the price charged its own armed forces for identical items or services from those sources. (2) If the other country will not accept those rules, the United States may not acquire an ungoverned item unless the acquiring commander, after price analysis, finds the price fair and reasonable; United States transfers of such items are subject to the Arms Export Control Act. (3) If indirect costs, administrative surcharges, or contract-administration costs are not waived by the reciprocal rules, the Secretary may agree reciprocally to waive them. (4) The same rules and waiver authority apply to NATO subsidiary bodies, the United Nations, and regional international organizations. (c) In an exchange, the Secretary may not agree to or make: (1) a transfer for property whose acquisition by the Department of Defense is illegal; (2) a transfer of source, byproduct, or special nuclear material, or another material, article, data, or valuable thing governed by the Atomic Energy Act of 1954; or (3) a transfer of chemical munitions.