Last year we reported on bipartisan efforts to fast-track sales of U.S. defense articles and services to the Hashemite Kingdom of Jordan (“Jordan”).  Last week President Obama signed into law the United States-Jordan Defense Cooperation Act of 2015 (“Act”). 

Pursuant to the Act, sales of U.S. defense articles, services, design and construction services, and major defense equipment to Jordan will receive expedited approvals.  Also, they will be subject to fewer administrative surcharges.  The only other beneficiaries of this treatment are member countries of the North Atlantic Treaty Organization (“NATO”), Australia, Israel, Japan, New Zealand, South Korea, and, in some cases, NATO itself.  The Act bestows this special treatment on Jordan specifically by amending certain sections of the Arms Export Control Act, 22 U.S.C. §§ 2751, et seq.  For example:

  • It elevates dollar thresholds and reduces the review period for proposed sales that must be reviewed by Congress.  See 22 U.S.C. §§ 2753(d), 2776, 2796a, 2796b.
  • The Director, Defense Security Cooperation Agency (“DSCA”), now may reduce or waive the typical surcharge applied to every sale for recoupment of nonrecurring costs of research, development, and production of major defense equipment.  See 22 U.S.C. § 2761(e)(2)(A).
  • The Director, DSCA, now may reduce or waive the typical surcharge applied for contract administration services provided by the U.S. government.  See 22 U.S.C. § 2761(h).

The Act is unlikely to be the final U.S. government effort to streamline deliveries of foreign aid and security assistance to Jordan and other U.S. allies in the Middle East.  The Act’s final section authorizes the U.S. Secretary of State to execute with Jordan a memorandum of understanding that will increase existing levels of U.S. security assistance to Jordan.  We will continue to monitor these developments.

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Photo of Sandy Hoe Sandy Hoe

Sandy Hoe has practiced government contracts law for more than 45 years.  His expertise includes issues of contract formation, negotiation of subcontracts, bid protests, the structuring of complex private financing of government contracts, preparation of complex claims, and the resolution of post-award contract…

Sandy Hoe has practiced government contracts law for more than 45 years.  His expertise includes issues of contract formation, negotiation of subcontracts, bid protests, the structuring of complex private financing of government contracts, preparation of complex claims, and the resolution of post-award contract disputes through litigation or alternative dispute resolution.  His clients include major companies in the defense, telecommunications, information technology, financial, construction, and health care industries.

For several years, Sandy also practiced telecommunications regulatory law, appearing before numerous state public utility commissions in hearings to open the local exchange markets for new entrants under the Telecommunications Act of 1996.

For many years, he has been active in the Public Contract Law Section of the American Bar Association, where he was an author of the section’s original publication of “Subcontract Terms and Conditions.”  From 1999 to 2011, Sandy co-chaired the Section’s committee on Privatization, Outsourcing and Financing Transactions and from 2005 to 2008 served on the Section Council.  Prior to his service in the ABA, for six years he was on the Steering Committee of the Section on Government Contracts and Litigation of the District of Columbia Bar, including three years as co-chair.