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TREATIES AND OTHER INTERNATIONAL ACTS SERIES 12930
DEFENSE
Acquisition and Cross-Servicing
Agreement Between the
UNITED STATES OF AMERICA
and ISRAEL
Signed at Washington and Stuttgart
February 9 and 10, 1998
with
Annexes
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.”
ISRAEL
Defense: Acquisition and Cross-Servicing
Agreement signed at Washington and Stuttgart
February 9 and 10, 1998;
Entered into force February 10, 1998.
With annexes.
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ACQUISITION
AND CROSS-SERVICING
AGREEMENT
(US-IS-02)
BETWEEN
THE
DEPARTMENT
OF
DEFENSE
OF
THE
UNITED STATES
OF
AMERICA
AND
THE
ISRAEL
MINISTRY
OF
DEFENSE
Effective Date: 10
February
1998
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ACQUISITION AND CROSS-SERVICING AGREEMENT (ACSA)
(US-IS-02)
BETWEEN
THE
DEPARTMENT
OF
DEFENSE
OF
THE
UNITED STATES
OF
AMERICA
AND
THE
ISRAEL MINISTRY
OF
DEFENSE
PREAMBLE
THIS AGREEMENT, by and between the Department
of
Defense
of
the United States
of
America and the Israel Ministry ·of Defense (MOD) (hereinafter referred to
as
the Parties);
NOW, THEREFORE, the Parties mutually agree as follows:
ARTICLE
I
PURPOSE
This Agreement is entered into for the purpose
of
establishing basic terms, conditions, and
procedures to facilitate the reciprocal provision
of
logistic support, supplies, and services as
defined in Article
Ill
of
this Agreement.
This Agreement replaces the Mutual Support Agreement (MSA) (Agreement Number US-IS-
01) between the United States Department
of
Defense Represented by the Director
of
Logistics
Headquarters United States European Command and the Israel Ministry
of
Defense
Represented by the Deputy Director General International Security Assistance,
24
May 1988
and its amendments 1 and 2. Any transactions, Orders,
or
requests for support executed
or
partially executed prior to the effective date
of
this agreement under the authority
of
the
referenced MSA, as amended, will remain binding, and will be governed by the provisions
of
-
this Agreement. Any reference to the MSA will hereafter be deemed as a reference to this
Agreement.
ARTICLE
II
APPLICABILITY
1. This agreement· is designed to facilitate reciprocal logistic support between the Parties
to
be used primarily during combined exercises, training, deployments, operations,
or
other
cooperative efforts, and for unforeseen circumstances or exigencies
in
which the Parties may
have a need
of
logistic support, supplies, and services.
1
.,
...
2. This Agreement applies to the reciprocal provision
of
logistic support, supplies, and
services to the military forces
of
one Party by the other Party in return for either cash payment
or the reciprocal provision
of
logistic support; supplies and services to the military forces
of
the other Party.
3. Acquisitions and transfers under this Agreement,
and
any implementing arrangements or
transactions executed hereunder, are made subject to the authorized availability
of
appropriations and funds, and acquisition and transfer limitations established by the laws and
regulations
of
the United States and Israel.
4. The following items are not eligible for transfer under this Agreement and are specifically
excluded from its coverage:
a.
weapons systems
b. major end items
of
equipment (except for the lease
or
loan of general purpose
vehicles and other nonlethal items
of
military equipment which are not. designated as
significant military equipment on the United States Munitions List);
c. initial quantities
of
replacement and spare parts associated with the initial Order
quantity
of
major items
of
organizational equipment covered in tables
of
allowances and
distribution, tables
of
organization and equipment, and other documents
of
this type.
5. Also excluded from transfer by either Party under this Agreement are any items the
transfer
of
which
is
prohibited by its laws
or
regulations. Specifically excluded from transfer
by United States law and regulation under this Agreement are the following:
a. guided missiles;
b. naval mines and torpedoes;
c. nuclear ammunition and included items such as warheads, warhead sections,
projectiles, demolition munitions, and training ammunition;
d. cartridge and air crew escape propulsion system
(AEPS) components;
e. chaff and chaff dispensers;
f.
guidance kits for bombs or other ammunition;
g. chemical ammunition (other than riot control agents);
h. source, byproduct,
or
special nuclear materials or any other material, article, data,
or thing
of
value the transfer
of
which is subject to the Atomic Energy
Act
of
1954 (title 42,
United States Code, section 2011, et seq.).
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ARTICLE
ID
DEFINITIONS
1.
As
used in this Agreement and in
any
Implementing Arrangements which provide specific
procedures, the following definitions apply: ·
a. Logistic support, supplies and services. Food, water, billeting, transportation
(including airlift), petroleum, oils, lubricants, clothing, communication services, medical
services, ammunition, base operations support (and construction incident
to
base operations
support), storage services, use
of
facilities, training services, spare parts and components,
repair and maintenance services, calibration services, and airport
and
seaport services. Such
term includes temporary use
of
general purpose vehicles
and
other nonlethal items
of
military
equipment which are not designated
as
significant military equipment on the United States
Munitions List pursuant to section 38(a)(l)
of
the
Arms Export Control Act (AECA),
22
U.S.
Code 2778(a)(l).
b. Implern.enting Arrangement. A written supplementary agreement. related
to
the
specific acquisition and/or transfer
of
logistic support, supplies
and
services, which sets forth
additional details, terms and conditions which further define and
carry out
this
Agreement.
c. Order. An Order or support request, when
in
its proper form
and
signed by an
authorized official (see Article IV, paragraph 2 below),
is
a request for the provision
of
specific logistic support, supplies and services pursuant
to
this Agreement
and
any applicable
Implementing Arrangement.
d. Invoice. A document from
the
supplying Party which requests reimbursement or
payment for specific logistic support, supplies and services rendered pursuant
to
this
Agreement and any applicable Implementing Arrangements.
e. Transfer. Selling (whether for payment in currency, replacement-in-kind, or
exchange
of
supplies
or
services
of
equal value), leasing, loaning,
or
otherwise temporarily
providing logistic support, supplies,
and
services pursuant
to
this Agreement and any
applicable Implementing Arrangements.
f.
Retransfer. The transfer of logistic support, supplies, and services received
pursuant to
this
Agreement and
any
applicable Implementing Arrangements
to
a third party.
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ARTICLE
IV
TERMS AND CONDITIONS
I.
Each Party shall make its best efforts, consistent with national priorities, to satisfy
requests from the other Party under this agreement for logistic support, supplies, and services,
during peacetime and during periods
of
national emergency, international tension or active
hostilities. When an implementing arrangement contains a stricter standard for satisfying such
requests, it shall apply over this paragraph.
2. The transfer
of
logistic support, supplies and services between the Parties shall be
accomplished by Orders issued and accepted under this Agreement and any applicable
Implementing Arrangement.
. 3. An Order may be issued against this Agreement alone without an Implementing
Arrangement only in those cases set forth in Annex A.
4. Implementing Arrangements may be negotiated on the part of the
United States by U.S.
Unified Commands. As this Agreement
is
not limited for use within USEUCOM's area
of
responsibility (AOR), the USEUCOM Implementing Arrangement will include procedures for
use
of
this Agreement with U.S. Unified Commands other than USEUCOM. USEUCOM shall
be notified
of
all Orders made pursuant to this Agreement.
5. Whether the transfer is accomplished
by
an Order under this Agreement alone or in
conjunction with an Implementing Arrangement, the documents taken together must set forth
all necessary details, terms, and conditions
to
carry out the transfer including the data elements
in Annex
B.
·
6. · The Parties shall endeavor
to
adopt a standard Order form. An Implementing
Arrangement shall generally identify those personnel authorized
to
issue and accept Orders.
The Parties shall notify each other
of
specific authorizations or limitations on those personnel
able to issue or accept Orders directly under this Agreement or under an Implementing
Arrangement when the Implementing Arrangement does not state this information. In the case
of
the United States, these notifications shall go directly
to
the Component Command
concerned.
In the case
of
lsraei, these notifications shall go
to
the designated MOD/Israel
Defense Forces (IDF) point
of
contact.
7. In all transactions involving the transfer
of
logistic support, supplies and services, the
receiving Party agrees that such logistic support, supplies and services shall not
be
·
retransferred, either temporarily or permanently, without prior written consent
of
the
supplying Party.
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ARTICLEV
REIMBURSEMENT
1.
For any logistic support, supplies and services transactions, the Parties shall negotiate for
payment either in cash in U.S. dollars (a "reimbursable transaction") or in equal value to be
defined in monetary terms only (an "exchange transaction"). The Parties will agree in
advance, when placing an Order, on the method of reimbursement to be used in the
transaction. The receiving Party shall pay the supplying Party under the conditions set out in
either paragraph la. or paragraph lb.
of
this Article.
a. Reimbursable transaction. The supplying Party shall submit Invoices to the
receiving Party after delivery or performance
of
the logistic support, supplies and services.
Both Parties shall maintain records
of
all transactions, and each Party shall provide for the
payment
of
outstanding accounts not less frequently than every twelve months. Invoices
prepared by the supplying Party shall be accompanied by support documentation and paid
within 60 days from the date received. In pricing a reimbursable transaction, the Parties agree
to the following reciprocal pricing principles:
(1) In the case
of
specific acquisition by the supplying Party from its
contractors for a receiving Party, the price shall be
no
less
favorable than the price charged the
armed forces by the contractor
of
the supplying Party
for
identical items or services, less any
amounts excluded by Aqicle VI
of
this Agreement.
The
price charged may take into account
differentials due to delivery schedules, points
of
delivery, and other similar considerations.
(2) In the case
of
transfer from the supplying Party's own resources, the
supplying Party shall charge the same price it charges its own forces for identical logistic
support, supplies and services, as
of
the date the Order
is
accepted, less any amounts excluded
by Article VI
of
this Agreement.
In
any case where a price has not been established
or
charges are not made for one's own forces, the Parties should agree on a price in advance,
excluding charges that are precluded under these reciprocal pricing principles.
b. Exchange transaction. Both Parties shall maintain records
of
all transactions. The
receiving Party shall pay by transferring to the supplying Party logistic support, supplies and
services that are agreed between the Parties
to
be of. equal monetary value to the logistic
support, supplies and services delivered or performed
by
the supplying Party.
If
the receiving
Party does not complete the exchange within the terms of a replacement schedule agreed to
or
in effect at the time
of
the original transaction, within time frames which may not exceed one
(1) year from the date
of
the original transaction, the transaction shall be deemed reimbursable
and governed by paragraph
la
above, except that the price shall be established using actual
or
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estimated prices in effect on the date payment would otherwise have been due. Exchange
transactions may be by replacement-in-kind
(RIK)
or equal-value-exchange (EVE).
2. When a definitive price for the Order
is
Iiot
agreed upon in advance, the Order, pending
agreement on final price, shall set forth
-a
maximum limitation
of
liability for the Party
ordering the logistic support, supplies and services. The Parties shall then cooperate to
establish the final price.
3. The Invoice shall contain an identification of the applicable Implementing Arrangement
or
in the absence thereof, refer
to
this Agreement and shall be in the format set forth by the
supplying organization. The Invoice shall be accompanied by support documentation.
4. The Parties agree to grant each other access
to
documentation and information sufficient to
verify' when applicable, that reciprocal pricing principles have been followed and prices do
. not include waived or excluded costs. Points
of
contact will be identified on each
Implementing Arrangement to validate expenses or research charges on an as-required basis.
5.
No
provision in this Agreement shall serve
as
a basis for an increased charge for logistic
support, supplies and services,
if
such logistic support, supplies and services would be
available without charge or for a lesser charge under the terms
of
another agreement.
ARTICLE
VI
WAIVED
OR
EXCLUDED COSTS
The provisions
of
any tax and customs relief agreements applicable to the acquisition
of
materials, services, supplies, and equipment
by
the receiving Party shall apply
to
logistic
support, supplies and services transferred under this Agreement. The Parties shall cooperate
to provide proper documentation
to
maximize tax relief. In the case where taxes or customs
duties for which a receiving Party would ordinarily have
an
exemption have already been paid
by the supplying Party and cannot be recovered, the supplying Party shall advise the receiving
Party prior
to
agreeing. to the transaction. In such a case the receiving Party may,
if
practicable, replace the supplies as an exchange transaction in lieu
of
reimbursement for the
supplies.
If
exchange is not practicable, the price paid
by
the receiving Party shall include
only those
taxe~
or
customs duties not recoverable by the supplying Party.
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ARTICLE
VII
INTERPRETATION AND REVISION
1. Any disagreements regarding the interpretation or application
of
this Agreement,
or
any
implementing arrangements or transactions executed thereunder, shall
be
resolved through
consultation between the Parties and shall not be referred to any international tribunal
or
third
party for settlement.
2. Either Party may, at any time, request revision
of
this Agreement by giving the other
Party 90 days' advance written notice.
In
the event such a request
is
made, the two Parties
shall promptly enter into negotiations. This Agreement may only be amended by written
agreement between the Parties.
3. The provisions
of
the U.S.- Israel Security Classification Agreement. signed on 10
December 1982 shall apply
to
the implementation
of
this Agreement, including information
and material provided
or
generated pursuant thereto.
ARTICLE
VIII
EFFECTIVE
DATE AND TERMINATION
1.
This Agreement, which consists
of
a Preamble, Articles
1-VID,
and Annexes A and B,
shall become effective on the date
of
the last signature affixed below and shall remain in force
until terminated in Writing by the Parties, provided that it may be terminated by either Party
upon 180 day written notice
of
its intention to do so to the other Party.
2. Any transaction, Orders or requests for support executed
or
partially executed prior to the
termination
of
this Agreement will remain binding.
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IN
WITNESS
WHEREOF,
the undersigned,
governments,
have
!>igned
this
agreement.
DONE, in duplicate, in the English language.
FOR THE DEPARTMENT
OF
DEFENSE
OF THE
UNITED
STATES
ajor General, U.S. Army
ector of
Logistics
and
ecurity
Assistance
at: Patch Barracks, Stuttgart,
Germany
on:
l~1
f
being
duly
authorized
by
their respective
FOR
THE
ISRAEL
MINISTRY OF
DEFENSE
MV"'1li.>JmQren
tor,
Mission
to
the
U.S.
Government
of
Israel,
Ministry
of
Defense
at:
The
Pentagon,
Washington,
DC
on: 9
February,
1998
8
ANNEX A
Pursuant to Article
N,
paragraph 3, Orders or support requests may be issued against this
Agreement alone in the following circumstances:
a. Orders for logistic support, supplies and services placed during times
of
tension and
active hostilities.
b. Orders for logistic support, supplies and services urgently required and not covered
by an Implementing Arrangement, provided the Parties to the transaction (or their designated
representatives) agree.
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ANNEXB
MINIMUM
ESSENTIAL DATA
ELEMENTS
1)
Implementing Arrangements
or
support Agreement
2) Date
of
Order
3) Designation and address
of
office to
be
billed
4) Numerical listing
of
stock numbers
of
items,
if
any
5) Quantity and description
of
material/services requested
6)
Quantity furnished
7) Unit
of
Measurement
8) Unit price in
U.S.
Dollars
9) Quantity furnished (6) multiplied by unit price (8)
10) Currency - U.S. Dollars
11) Total Order amount expressed in U.S. Dollars
12)
Name (typed
or
printed), signature, and title
of
authorized Ordering
or
requisitioning
representative
13) Payee
to
be designated
on
remittance
14) Designation and address
of
office to receive remittance
15) Recipient's signature acknowledging service
or
supplies received
on
the Order
or
requisition
or
a separate supplementary document
16) Document number
of
Order
or
requisition
17) Receiving organization
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18) Issuing organization
19) Transaction type
20) Fund citation or certification
of
availability
of
funds when applicable under Parties'
procedures
21) Date and place
of
original transfer; in the case
of
an
exch;m.ge
transaction, a replacement
schedule including time and place
of
replacement transfer
22) Name, signature and title
of
authorized acceptance official
23) Additional special requirement,
if
any, such as transportation, packaging, etc.
· 24) Limitation
of
government liability
25) Name, signature, date and title
of
supplying Party official who actually
issue~
supplies
or
services
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