coproduction

1. With respect to exports, a cooperative manufacturing arrangement (e.g., US Government or company with foreign government or company) providing for the transfer of production information that enables an eligible foreign government, international organization, or commercial producer to manufacture, in whole or in part, an item of US defense equipment. Such an arrangement would include the functions of production engineering, controlling, quality assurance, and determination of resource requirements. This is normally accomplished under the provisions of a manufacturing license agreement per the US International Traffic in Arms Regulation and could involve the implementation of a government-to-government memorandum of understanding.
2. A cooperative manufacturing arrangement (US Government or company with foreign government or company) providing for the transfer of production information which enables the receiving government, international organization, or commercial producer to manufacture, in whole or in part, an item of defense equipment. The receiving party could be an eligible foreign government, international organization, or foreign producer; or the US Government or a US producer, depending on which direction the information is to flow. A typical coproduction arrangement would include the functions of production engineering, controlling, quality assurance, and determining of resource requirements. It may or may not include design engineering information and critical materials production and design information.