113 STAT. 1501A-498 PUBLIC LAW 106-113—APPENDIX G include an estimate of the amount of funds to be expended under subsection (a) with respect to that transfer. SEC. 1213. INCREASE IN ANNUAL LIMITATION ON TRANSFER OF EXCESS DEFENSE ARTICLES. Section 516(g)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j(g)(l)) is amended by striking "$350,000,000" and inserting "$425,000,000 ". Subtitle B—Foreign Military Sales Authorities SEC. 1221. TERMINATION OF FOREIGN MILITARY TRAINING. Section 617 of the Foreign Assistance Act of 1961 (22 U.S.C. 2367) is amended by adding at the end the following new sentence: "Such expenses for orderly termination of programs under the Arms Export Control Act may include the obligation and expenditure of funds to complete the training or studies outside the countries of origin of students whose course of study or training program began before assistance was terminated, as long as the origin country's termination was not a result of activities beyond default of financial responsibilities,". SEC. 1222. SALES OF EXCESS COAST GUARD PROPERTY. Section 21(a)(1) of the Arms Export Control Act (22 U.S.C. 2761(a)(1)) is amended in the matter preceding subparagraph (A) by inserting "and the Coast Guard" after "Department of Defense". SEC. 1223. COMPETITIVE PRICING FOR SALES OF DEFENSE ARTICLES. Section 22(d) of the Arms Export Control Act (22 U.S.C. 2762(d)) is amended— (1) by striking "Procurement contracts" and inserting "(1) Procurement contracts"; and (2) by adding at the end the following: "(2) Direct costs associated with meeting additional or unique requirements of the purchaser shall be allowable under contracts described in paragraph (1). Loadings applicable to such direct costs shall be permitted at the same rates applicable to procurement of like items purchased by the Department of Defense for its own use.". SEC. 1224. NOTIFICATION OF UPGRADES TO DIRECT COMMERCIAL SALES. Section 36(c) of the Arms Export Control Act (22 U.S.C. 2776(c)) is amended by adding at the end the following new paragraph: "(4) The provisions of subsection (b)(5) shall apply to any equipment, article, or service for which a numbered certification has been transmitted to Congress pursuant to paragraph (1) in the same manner and to the same extent as that subsection applies to any equipment, article, or service for which a numbered certification has been transmitted to Congress pursuant to subsection (b)(1). For purposes of such application, any reference in subsection (b)(5) to 'a letter of offer' or *an offer' shall be deemed to be a reference to *a contract'.".
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