Airlift, refueling, test ranges and overseas repair

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1. Reciprocal arrangements beyond cross-servicing

Cross-servicing agreements are the general tool for swapping logistic support with allies, and they are covered in what an acquisition and cross-servicing agreement is. Chapter 138 of title 10 also contains narrower arrangements for particular services. Three of them deal with moving people and cargo by air, refueling aircraft, and using each other’s test ranges. A fourth opens American equipment repair work abroad to allied firms.

2. Cooperative military airlift

Subject to appropriations, and after consulting the Secretary of State, the Secretary of Defense may enter into cooperative military airlift agreements with the government of any allied country (10 U.S.C. 2350c(a)). Under such an agreement, the ally’s military personnel and cargo fly on aircraft operated by or for American forces. In return, American personnel and cargo fly on aircraft operated by or for the ally’s forces.

The statute sets four required terms (10 U.S.C. 2350c(a)). The reimbursement rate must be the same for each party and not less than the rate charged to American forces. Credits and liabilities are liquidated as the parties agree, by direct payment to the country that provided more transportation or by in-kind transportation, at least once every 12 months. In peacetime, only spare capacity may be used. It must be capacity the providing country does not need for its own forces, and must not have been created solely to meet the receiving country’s requirements.

The fourth term protects the sales programs. It covers defense articles an ally buys from the United States under the Arms Export Control Act, or from a commercial source under its export controls. Those may be delivered on American military aircraft only at a rate equal to the full cost of transportation (10 U.S.C. 2350c(a)(4)). Delivery of purchased equipment is therefore not subsidized through the airlift agreement.

An allied country for this purpose means a NATO member, Australia, New Zealand, Japan or the Republic of Korea, or another country the Secretary of Defense designates with the Secretary of State’s concurrence (10 U.S.C. 2350c(d)). The Secretary may also make nonreciprocal airlift agreements with NATO subsidiary bodies on terms the Secretary considers appropriate (10 U.S.C. 2350c(b)). Amounts received are credited to the relevant Defense Department appropriations, accounts and funds (10 U.S.C. 2350c(c)).

3. Air refueling and air transport exchanges

A newer section covers multinational exchange programs. With the Secretary of State’s concurrence, the Secretary of Defense may authorize the Department to take part in programs for coordinating or exchanging air refueling and air transportation services (10 U.S.C. 2350o(a)(1)). That includes the Air Transport and Air-to-Air Refueling and other Exchanges of Services program, known as ATARES.

Participation may include reciprocal exchange or transfer of these services on a reimbursable basis or by replacement-in-kind, and exchange of services of equal value (10 U.S.C. 2350o(a)(2)). The Department’s balance in ATARES is capped. Its balance of executed flight hours, whether credits or debits, may not exceed 500 hours in total, and no more than 200 hours for air refueling (10 U.S.C. 2350o(a)(3)).

Participation must follow a written arrangement or agreement entered into by the Secretary of Defense with the Secretary of State’s concurrence (10 U.S.C. 2350o(b)). Under it, the Department may pay its equitable share of the program’s recurring and nonrecurring costs from operation and maintenance funds. It may also assign service members and civilians to meet its obligations (10 U.S.C. 2350o(c)).

4. Reciprocal use of test facilities

Test ranges are shared under a separate authority. With the Secretary of State’s concurrence, the Secretary of Defense may conclude a memorandum of understanding or other formal agreement with a foreign country or international organization (10 U.S.C. 2350l(a)). Under it, each side may test defense equipment at the other’s test facilities on a reciprocal basis. A test facility is a range or other facility at which defense equipment can be tested (10 U.S.C. 2350l(e)).

The charging rules are fixed by statute (10 U.S.C. 2350l(b)). The user pays the direct costs the provider incurs in furnishing test and evaluation services through its officers, employees or agencies. Indirect costs may be charged too, but only to the extent the agreement specifies. The Secretary of Defense decides whether indirect costs charged by the United States are appropriate, and may delegate that decision only to the Deputy Secretary and one other official (10 U.S.C. 2350l(c)).

The statute defines both kinds of cost (10 U.S.C. 2350l(e)). A direct cost is readily identified to a specific unit of work at the facility and would not have been incurred without the use. It may include labor, materials, facilities, utilities, equipment and supplies consumed or damaged by the use or by maintaining the facility for it. An indirect cost cannot be readily identified in that way, such as general and administrative expenses shared among several users. Money collected by the United States is credited to the accounts that paid for providing the facility (10 U.S.C. 2350l(d)).

5. Overseas repair work for allied firms

The last provision matters directly to industry. A firm of any NATO member nation or of any major non-NATO ally is eligible to bid on competitively awarded Defense Department contracts under the Overseas Workload Program (10 U.S.C. 2349(a)). These are contracts for the maintenance, repair or overhaul of Defense Department equipment located outside the United States.

The work can move to the bidder. A contract awarded to such a firm may be performed in the theater where the equipment is normally located, or in the country where the firm is located (10 U.S.C. 2349(b)). The Secretary of a military department may restrict the region of performance for one of two reasons. Performance outside it could adversely affect military preparedness, or it would violate an international agreement to which the United States is a party (10 U.S.C. 2349(c)).

Key terms

Cooperative military airlift agreement	A reciprocal agreement to carry an ally’s military personnel and cargo on American military aircraft and vice versa.
ATARES	The Air Transport and Air-to-Air Refueling and other Exchanges of Services program, capped at 500 flight hours.
Test facility	A range or other facility where defense equipment can be tested under a reciprocal agreement.
Direct cost	A cost readily identified to the specific use of a test facility, which the user always pays.
Overseas Workload Program	The program under which allied firms may bid to maintain, repair or overhaul equipment abroad.

Every statement above links to the document behind it. The full source list for this piece is on the sources page.

This page describes public United States government programs for general information. It is not legal, regulatory or procurement advice, and it does not address the facts of any particular case.

How Sentfore supports this

Equipment and people moved by air still need secure handling and onward movement at each end. Sentfore works at the delivery end of defense programs in difficult environments, providing secure movement, protective security, facilities and life support. Requirements can be sent through the contact page.