International Acquisition & Exportability
Fundamentals
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TSFD
FMS DCSICP
Are These Acronyms Familiar?
DEF
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Overview
DefenseExportability
Sales & Transfers
Technology Security &
Foreign Disclosure
InternationalCooperative Programs
International Acquisition & Exportability (IA&E)
• Environment• Int’l Acquisition Forms and
Mechanisms• Technology Security &
Foreign Disclosure• Defense Exportability• Changing the Culture
Topics
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The Environment
ExportControlReform
SecurityCooperation
ProgramProtectionPlanning
DefenseExportability
Features
JCIDSInternationalProvisions
DefenseAcquisition
Policy
IndustryForeign Sales
GlobalIndustrial
Base
IncreasingDAW
Involvement
GlobalTechnology/
Products
Environment demands we change the way we train international acquisition professionals
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International Acquisition & Exportability (IA&E)
Defense Exportability Integration
Sales & Transfers
Technology Security & Foreign Disclosure
InternationalCooperative
Programs
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ICPs Vs. Defense Sales
ICPs (Partnerships)
More FlexibleBilateral or MultilateralForeign Gov’t is PartnerJoint RequirementBoth Gov’ts Are End UsersBoth Gov’ts FundTerms are NegotiableBoth Participate in OversightCost of Services are SharedUSD(AT&L) Oversees (Title 10)
DEFENSE SALES
(Buyers-Sellers) More Structured
Bilateral Arrangement
Foreign Gov’t is Customer
Foreign Gov’t Requirement
Foreign Gov’t End User
Foreign Gov’t FundsU.S. Sets Terms (LOA)U.S. Controls ImplementationForeign Gov’t Pays for Services
USD(P) Oversees (Title 22)
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International Acquisition & Exportability (IA&E)
Defense Exportability Integration
Sales & Transfers
Technology Security & Foreign Disclosure
InternationalCooperative
Programs
UNCLASSIFIED
FMS and Service Procurement: 5 Year Average, FY10-14
The Scale of FMS
Air Force
FMSNavy
Army
#1. $45.1 Billion Navy (incl. USMC)
#2. $39.0 Billion FMS
#3 $38.8 Billion Air Force
#4 $32.4 Billion Army
Benefits to the U.S.• Builds U.S.-partner
relationships
• Interoperability
• Lowers unit costs for the U.S. DoD
• Maintain production lines
• Dollars into the U.S. economy
• Jobs8
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FMS vs DCS vs Hybrid
• DoD is generally neutral whether a foreign country purchases through FMS or DCS
• Certain items can be designated FMS only; based on complexity, sensitivity, interoperability, relationships
• Most major system DCS programs will have an FMS companion effort for FMS-only items (i.e. a hybrid program)
Many EW system international sales are“hybrid programs” due to classified aspects
of system software functionality
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Program Trends
Past Present
Foreign Military Sales (FMS)
Direct Commercial Sales
International Cooperative Programs (ICPs)
Sale of DoD Configurationwith Exportability Modifications
Integration of BuyerFurnished Equipment (BFE)
Development and Integrationof New Equipment
Sale of DoD Configurationwith Exportability Modifications DCS/FMS Hybrid Programs Sale of New or Highly
Modified Systems
Cooperative Development ofNew Systems
Incorporating ForeignParticipation in DoD Program
Cooperation ThroughoutPrograms’ Life-Cycles
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International Acquisition & Exportability (IA&E)
Defense Exportability Integration
Sales & Transfers
Technology Security & Foreign Disclosure
InternationalCooperative
Programs
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The Dilemma
How can the USG/DOD best balance these two competing demands?
Provide required capabilities
quickly to allies and friends
Protect the “crown jewels” of U.S. defense
technology
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TSFD and Export Control Basics
Fundamental Security Considerations
Release Conditions
Type of Authorizations
TSFD DisclosureAuthorizations
ExportControl
• Not transfer or use for other purposes without U.S. consent• Provide substantially the same degree of protection as U.S.
Access Protection+
DoDIntel Community
Interagency
State & CommerceDoD
Interagency
DoDInteragency
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USG/DoD TSFD ProcessesMILDEP Processes
DoD Lead: Various
MILDEP-specific various
MILDEP Process
Other DoD Processes
DoD Lead: Various
Org.-specific various
Few documented processes
Interagency process
LO/CLO AT&L Primary
AT AT&L Primary
SAP SAPCO Specialized
DSC AT&L + Policy Specialized
Intel USD(I) Specialized
Data Links/WF DoD CIO Specialized
PNT/GPS DoD CIO Specialized
COMSEC NSA & DoD CIO Primary
GEOINT NGA Specialized
MTCR Policy Specialized
NDP Policy Primary
EW None No single process
NVD/INS DTSA Specialized
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International Acquisition & Exportability (IA&E)
Defense Exportability Integration
Sales & Transfers
Technology Security & Foreign Disclosure
InternationalCooperative
Programs
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Designing for Exportability
• Launch customer paid for technology security modifications to DoD configuration
• Expensive and time consuming mods inhibit foreign sales• No authority to use appropriated funds for exportability design
Past
• Defense Exportability Features (DEF) Pilot Program authorized by Congress in FY11 and subsequent Nat’l Defense Authorization Acts
• OSD and the MILDEPs have selected 15 programs to participate as DEF Pilot Programs
• Authorizes expenditure of DoD funds to evaluate exportability and facilitate planning; industry shares cost
• Facilitates incorporation of program protection features in systems with high export potential during system development
Present
• Improves protection of Critical Program Information (CPI) and critical functions using Anti-Tamper (AT)/Cyber measures
• Reduces overall DoD and foreign program protection costs• Makes our equipment available earlier to Allies and Friends
Why
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Int’l Acquisition TransactionsLooking Forward -- Macro View
USStrategy & Policy
Foreign Strategy & Policy
Capabilities & Tech
Willing to Transfer
Desired Capabilities
& Tech
Inquiry, Partnership
Discussion or Request for Purchase
?
FMS
DCS
ICP
Other
TSFD Export Control
Int’lAcquisition
Transactions
Defense
InitialTSFD& DEF
Add
EngageEarlier Acquisition System
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Changing the International Acquisition Culture
Conventional• Separate ICP, FMS, DCS
business planning• Sequential, stove-piped
transaction mechanisms• Reactive TSFD and
export control policy development• Exportability mods to
U.S. design by launch partners/customers
IA&E• Integrated international
business planning• Multiple, parallel
transaction mechanisms• Early TSFD and export
control policy engagement• Design for exportability
throughout the acquisition life cycle
Improved Outcomes for DoD, Allies, and Friends!
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Back Up Charts
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Security Cooperation Elements
CombinedExercises
Equipment Sales
& FinancingDefense
Contacts &Familiarization
Int’l Armaments Cooperation
Support to Operations
HumanitarianEfforts & Civic
Assistance
Int’lTraining & Education
Elements that involve defense acquisition
in color
DoDD 5132.03 October 2008
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International Cooperative Programs (ICPs)
Scope• DoD concludes about ~30
international agreements/year for ICPs
• Most agreements are for S&T or early R&D projects
• Some agreements for cooperation on a “piece” of a program
• Limited number of fully cooperative major system development/production programs
Major System Examples• F-35 Joint Strike Fighter (JSF)• NATO Alliance Ground
Surveillance (AGS)• Rolling Airframe Missile (RAM) • Evolved SeaSparrow Missile
(ESSM)• Multifunctional Information
Distribution System (MIDS)• Guided Multiple Launch Rocket
System (GMLRS)• Wideband Global SATCOM
(WGS)
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Security Assistance Programs
Program Administration Responsibilities
Department of Defense• Foreign Military Sales (FMS)• Foreign Military Financing Program (FMFP)• Int’l Military Education & Training (IMET)• Foreign Military Construction Services
(FMCS)• Leases• Drawdowns• Excess Defense Articles (EDA)
Department of State• Peacekeeping Operations• Int’l Narcotics Control & Law Enforcement• Nonproliferation, Antiterrorism, Demining,
and Related (NADR) • Direct Commercial Sales (DCS)
US Agency for Int’l Development• Economic Support Fund (ESF)
Security Assistance is a State Department-led
effort primarily implemented by DoD
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Building Partner Capacity (BPC)
• Title 10, DoD Security Cooperation programs executed through the FMS infrastructure• Differences from traditional FMS
– USG Requesting Authority identifies requirement– Funded by the USG– “Pseudo”-LOAs are not signed by country– Title transfers in country
• Variety of programs conducted under multiple legal authorities
List of BPC policies & programs are contained in Chapter 15 of DoD’s Security Assistance Management Manual (SAMM)
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USG/DoD TSFD ProcessesMILDEP Processes
DoD Lead: Various
MILDEP-specific various
MILDEP Process
Other DoD Processes
DoD Lead: Various
Org.-specific various
Few documented processes
Interagency process
LO/CLO AT&L Primary
AT AT&L Primary
SAP SAPCO Specialized
DSC AT&L + Policy Specialized
Intel USD(I) Specialized
Data Links/WF DoD CIO Specialized
PNT/GPS DoD CIO Specialized
COMSEC NSA & DoD CIO Primary
GEOINT NGA Specialized
MTCR Policy Specialized
NDP Policy Primary
EW None No single process
NVD/INS DTSA Specialized
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DoDD 5111.21, “ATTR SSG and TSFDO” (New October 2014)
OSD TSFD Initiative
• Arms Transfer and Technology Release (ATTR) Senior Steering Group (SSG) created in 2008 and formally established in 2012:– Overarching DoD authority to ensure clear senior-level
direction; USD(P) & USD(AT&L) co-chairs – Serves as appeals board and mediation body
• TSFD Office (TSFDO) supports ATTR SSG efforts:– ATTR SSG Executive Secretariat and assesses/recommends
changes to policies– Develops/implements procedures and checklists,
coordinates documentation and policy, conducts outreach