A bill to further the rationalization, standardization, interoperability and effectiveness of the land, air and naval forces of the North Atlantic Treaty Organization countries.

Amends the Department of Defense Appropriation Authorization Act, 1976, to direct the Secretary of Defense to enter into standardization agreements with appropriate authorities of North Atlantic Treaty Organization countries and NATO subsidiary bodies for operational cooperation and cross-servicing among the land, air, and naval forces of NATO deployed in Europe and its adjacent waters through the interchange of equipment and supplies (excluding aircraft, missiles, naval vessels, tracked combat vehicles, other weapons, or naval torpedoes) and services.

Establishes pricing and billing requirements for service and equipment transactions made pursuant to such standardization agreements.

Requires the Secretary to report to the Congress annually regarding standardization agreements which were in effect during the previous year.