Artikel III

1. Each party agrees to utilize its best endeavors, consistent with national priorities of the supplying country, not only in peacetime but also in periods of emergency or active hostilities to satisfy requests of the other party for logistic support, supplies, and services. When an implementing arrangement contains a stricter standard of compliance it shall apply over this paragraph.
2. The parties agree that 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 arrangements. Orders will be issued under this Agreement alone without an implementing arrangement only in those cases set forth in Annex A. Implementing arrangements may be negotiated on the part of the United States by USEUCOM, USEUCOM Component Commands, and any other organization or agency authorized by USEUCOM. Implementing arrangements may be negotiated on the part of the Netherlands by the Director-General of Materiel of the Ministry of Defence and the Netherlands' Forces Component Commands. Whether the transfer is accomplished by orders under this Agreement alone or in conjunction with implementing arrangements, 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. The parties will endeavor to adopt a standard order form and a standard invoice form which, when agreed, will become an annex to this Agreement. Implementing arrangements will generally identify those personnel authorized to issue and accept orders under the implementing arrangement. The parties will 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 will go directly to and from the USEUCOM Component Command concerning personnel belonging to the Component Command as well as HQ USEUCOM.
3. For any logistic support, supplies or services, the Parties may negotiate for payment either in cash in the currency specified by the supplying Party (a 'reimbursable transaction'); payment-inkind (an 'exchange transaction'); or payment in 'equal value' to be defined in monetary terms only. Accordingly, the receiving Party will pay the supplying Party in conformance with 3 a., 3 b., or 3 c. below.
a. Reimbursable Transactions. The supplying party will submit invoices to the receiving party after delivery or performance of the logistic support, supplies, or services. Both parties will maintain records of all transactions, and the parties will pay outstanding balances not less frequently than quarterly. In pricing reimbursable transactions, the parties agree to the following principles: (1) In the case of specific acquisition by the supplying party for a receiving party, the price will be no less favorable than the prices charged the armed forces of the supplying party for identical items or services, less any amounts excluded by Article IV of this Agreement. The price charged will 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 will charge the same price as the supplying party charges its own forces as of the date the order is accepted for identical logistic support, supplies, or services, less any amounts excluded by Article IV of this Agreement. In the case where a price has not been established or charges are not made for one's own forces, the parties will agree to a price in advance, excluding charges that are excluded under reciprocal pricing principles.
(3) The parties agree that these reciprocal principles exclude the charging (directly or indirectly) of indirect costs (including charges for plant and production equipment), administrative surcharges, and contract administration costs.
(1) In the case of specific acquisition by the supplying party for a receiving party, the price will be no less favorable than the prices charged the armed forces of the supplying party for identical items or services, less any amounts excluded by Article IV of this Agreement. The price charged will 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 will charge the same price as the supplying party charges its own forces as of the date the order is accepted for identical logistic support, supplies, or services, less any amounts excluded by Article IV of this Agreement. In the case where a price has not been established or charges are not made for one's own forces, the parties will agree to a price in advance, excluding charges that are excluded under reciprocal pricing principles.
(3) The parties agree that these reciprocal principles exclude the charging (directly or indirectly) of indirect costs (including charges for plant and production equipment), administrative surcharges, and contract administration costs.
b. Exchange Transactions. Both parties will maintain records of all transactions, and the receiving party will pay the supplying party in kind by transferring to the supplying party logistic support, supplies, or services that are identical or substantially identical to the logistic support, supplies, or services delivered or performed by the supplying party and which are satisfactory to the supplying party. If the receiving party does not pay in kind within the terms of a replacement schedule, agreed to or in effect at the time of the original transaction with time frames which may not exceed 1 year from the date of the original transaction, the transaction shall be deemed a reimbursable transaction and governed by paragraph 3a above, except that the price will be established based upon the date the payment in kind was to take place.
c. Equal Value. The term 'equal value' means logistics support, supplies, or services defined in monetary terms using actual or estimated prices in effect at the time a transaction is approved. Both Parties will maintain records of all transactions, and the receiving Party will pay the supplying Party by transferring to the supplying Party logistic support, supplies, or services that are equal in value to the logistic support, supplies, or services delivered or performed by the supplying Party and which are satisfactory to the supplying Party. If the receiving Party does not pay in 'equal value' within the terms of an exchange schedule, in effect or agreed to at the time of the original transaction (which may not provide for payment more than twelve months from the date of the original transaction), the transaction shall be deemed a reimbursable transaction and governed by paragraph 3 a. of the Agreement as amended. Any payment resulting from a reimbursable transaction will be made in accordance with the receiving Party's fiscal policies and procedures.
4. When a definitive price is not agreed in advance on the order, the order, pending agreement on final price, will set forth a maximum limitation of liability for the party ordering the logistic support, supplies, or services. The parties will promptly enter into negotiations to establish the final price.
5. The invoice will contain an identification of this Agreement or an applicable implementing arrangement and will be in the format set forth by the supplying organizations. The invoice will be accompanied by evidence of receipt by the party receiving the logistic support, supplies, or services.
6. The parties agree to provide each other with information sufficient to verify, when applicable, that reciprocal pricing principles have been followed and prices do not include waived or excluded costs.
7. Nothing herein shall serve as a basis for an increased charge for logistic support, supplies, or services if such logistic support, supplies, or services would be available without charge or at a lesser charge under terms of another agreement.
8. In all transactions involving the transfer of logistic support, supplies, or services, the receiving party agrees that such logistic support, supplies, or services will not be retransferred, either temporarily or permanently, by any means to other than the forces of the receiving party or a NATO government or a NATO subsidiary body or agent thereof without the prior written consent of the supplying party.