Defense MOU Attachés Group Robert Schissell 11/22/2010 DON FMS Case Processing Overview Presentation to: Defense MOU Attachés Group Robert Schissell Plans & Policy Navy International Programs Office September 2011

Mission Statement Mission & Vision Vision Statement Promote, enable and sustain an expanding set of global maritime partnerships and deliver timely military capability through Security and Armaments Cooperation Programs that support U.S. security strategy and protect critical technologies. Vision Statement Be the premier DoD organization for international programs.

What We Do Strategic Linkage Security Cooperation Cooperative Programs 11/22/2010 What We Do Strategic Linkage Theater Engagement Strategies Outreach Security Cooperation Foreign Military Sales (FMS) Excess Defense Article (EDA) Transfers International Training 1206 Programs Cooperative Programs Cooperative Acquisition Programs R&D Data Exchange Engineer and Scientist Exchange Program (ESEP) Technology Security Disclosure Policy Export Licensing Committee for Foreign Investment in the U.S. (CFIUS) What we do falls into four mission areas: Security Cooperation or FMS; Cooperative Programs such as the Joint Strike fighter; and Technology security; strategic linkage of the various acquisition programs to leadership strategies and priorities.

Who We Are (0-6) IPO 02 Security Cooperation CAPT Steven Lott 11/22/2010 Who We Are Admin/Security Executive Director Mr. Rino Pivirotto Deputy Assistant Secretary Of The Navy (International Programs) & Director, Navy IPO RDML Joe Rixey Information & Personnel Exchange International Agreements Foreign Disclosure Policy & Tech Transfer Export Licenses IPO 04 Business Management Ms. Teresa Gayle IPO 01 Technology Security & Cooperative Programs Mr. Link Spann Accounting Travel Civilian Personnel Budget (0-7) (SES) (NH-IV) IPO 03 Strategic Planning Mr. Steve Bowdren Air Surface/Land C4ISR/EW Counsel LSS Blackbelt Mr. Jeff Brewer Chief Of Staff CAPT(S) Greg Molinari Training MIL – 53 CIV – 122 CSS – 48 TOTAL - 223 EUCOM/AFRICOM PACOM CENTCOM Operations & Policy IPO 02 Security Cooperation CAPT Steven Lott (0-6) Saudi Arabia NORTH/SOUTHCOM This our organization chart.

5 or 6 Country Program Directors (CPDs) Who We Are Typical Regional Division Director - Navy Captain EUCOM/AFRICOM PACOM CENTCOM Operations & Policy IPO 02 Security Cooperation CAPT Steven Lott (0-6) Saudi Arabia NORTH/SOUTHCOM Deputy - Civilian 5 or 6 Country Program Directors (CPDs)

Who We Are Navy Case Writing (Operations) Division (0-6) IPO 02 EUCOM/AFRICOM PACOM CENTCOM Operations & Policy IPO 02 Security Cooperation CAPT Steven Lott (0-6) Saudi Arabia NORTH/SOUTHCOM Civilian Director Approx 11 Management Analysts (civilians)

Who We Are IPO 02 Security Cooperation CAPT Steven Lott (0-6) NAVAIR ICP The System Commands NAVSEA SPAWAR NETSAFA USCG MARCOR

FMS Case Phases Pre LOR LOA Development Case Execution Case Closure

FMS Case Phases Pre LOR LOA Development Case Execution Case Closure

Pre LOR FMS Case Phases Recent focus on anticipating requirements Special Defense Acquisition Fund – program to stockpile high demand, long lead-time articles in anticipation of FMS requirements Expeditionary Requirements Generation Teams (ERGT) – cadre to travel to country to obtain in- depth perspective of country requirement

FMS Case Phases Pre LOR LOA Development Case Execution Case Closure

FMS Case Phases Pre LOR LOA Development Case Execution Case Closure

Develop Scope, Cost and Schedule FMS Case Phases LOA Development LOR Validation Develop Scope, Cost and Schedule Write Case Congres-sional Notic. Old Metric 80 percent of LOAs and Amendments to be transmitted to the FMS purchaser within 120 days of LOR receipt Challenging but we made progress

22 day reduction in 2 year period LOR Processing Time 22 day reduction in 2 year period

Develop Scope, Cost and Schedule FMS Case Phases LOA Development LOR Validation Develop Scope, Cost and Schedule Write Case Congres-sional Notic. New Metric LOAs and Amendments in four case groupings, each with an Anticipated Offer Date (AOD).

New Metric for LOA Development Group Type Default A Blanket order LOAs, Cooperative Logistics Supply Support Arrangements, and associated Amendments and Modifications 75 B Defined Order LOAs, Amendments, and Modifications. 120 C “Purchaser Unique” Defined Order LOAs and associated Amendments that are considered “purchaser unique” in nature. 121+ D All Pseudo LOAs and associated Amendments and Modifications. Goal Make AOD date 85% of the time

FMS Case Phases Pre LOR LOA Development Case Execution Case Closure

FMS Case Phases Pre LOR LOA Development Case Execution Case Closure

Transportation & Delivery FMS Case Phases Case Execution Acquisition Transportation & Delivery

Transportation & Delivery FMS Case Phases Case Execution Acquisition Transportation & Delivery

Case Execution Acquisition FMS Case Phases Case Execution Acquisition Prepare Acquisition Package Supply Lines Source Selection Award Contract Requisition Received @ Source of Supply Notice of Completion Submitted to IA Items on Loading Dock & “Ready to Ship” New Focus Look at LOAs where there has been no acquisition activity in the first 90 days

Transportation & Delivery FMS Case Phases Case Execution Acquisition Transportation & Delivery

Transportation & Delivery FMS Case Phases Case Execution Acquisition Transportation & Delivery

Transportation & Delivery FMS Case Phases Case Execution Transportation & Delivery Move by FF or FF Pickup Transportation Planning, to include Identity Shipping Mode DTS FF Clear US Customs Move by DTS Move Material to Con-veyance Carrier Departs Material Arrives in Purchaser Country (DTS or FF) Issue Notice of Delivery Confirm-ation (DTS or FF) New Focus Transportation Planning Prompt reporting of delivery

Disclosure Process OSD/State Navy Navy IPO TTSARB ATTR SSG 11/22/2010 Disclosure Process TS&FD Office ATTR SSG Navy IPO TTSARB (Technology Transfer and Security Assistance Review Board) Service Recommendation Legend = Interagency process ATTR SSG = Arms Transfer and Technology Release Senior Steering Group TS&FD Office =Technology Security and Foreign Disclosure Office Some decisions delegated to the Navy Balance of decisions retained by OSD Disclosure Laws/Regs/Policies POTUS/Congress OSD/State Navy Full/BTT averaging 15 weeks, Case-by-cases averaging 10 weeks NDP (National Disclosure Policy) NVD/INS (Night Vision Device/ Inertial Navigation System) MTCR (Missile Technology Control Regime) LO/CLO (Low Observable DSC (Defensive Systems Committee) AT (Anti-Tamper) Data Links/WF (Waveform) PNT/ GPS (Positioning, Navigation & Timing/ Global Positioning System) Intel (Intelligence) EW (Electronic Warfare) SAP COMSEC (Communications Security) GEOINT (Geospatial Intelligence) This is our disclosure process. The left side of the slide shows the DoN disclosure process that is know as the Technology Transfer and Security Assistance Reivew Board (TTSARB). The TTSARB is co-chaired by the VCNO and RDA. However, the DoN does not have unlimited disclosure authority, and so for many programs we must seek other authorities that reside with OSD or other agencies which is shown on the right side of this slide. There are 13 different disclosure processes managed under OSD and other agencies which has been reviewed as part the export reform effort. Results of this reform effort was to establish new principles of operation and to establish a front end to the 13 processes designed the Technology Security Foreign Disclosure Office (TSFDO). The TSFDO act as the overall administrator for the processes and facilitates, tracks, and reports status of actions. The overall process is governed by the Arms Transfer Technology Review Senior Steering Group (ATTR SSG) which is chaired by OSD AT&L and OSD Policy.

Disclosure Process Original 13 Pipes OSD/State Navy SAP 11/22/2010 Disclosure Process Original 13 Pipes TS&FD Office ATTR SSG Navy IPO TTSARB (Technology Transfer and Security Assistance Review Board) Service Recommendation Legend = Interagency process ATTR SSG = Arms Transfer and Technology Release Senior Steering Group TS&FD Office =Technology Security and Foreign Disclosure Office Some decisions delegated to the Navy Balance of decisions retained by OSD Disclosure Laws/Regs/Policies POTUS/Congress OSD/State Navy Full/BTT averaging 15 weeks, Case-by-cases averaging 10 weeks NDP (National Disclosure Policy) NVD/INS (Night Vision Device/ Inertial Navigation System) MTCR (Missile Technology Control Regime) LO/CLO (Low Observable DSC (Defensive Systems Committee) AT (Anti-Tamper) Data Links/WF (Waveform) PNT/ GPS (Positioning, Navigation & Timing/ Global Positioning System) Intel (Intelligence) EW (Electronic Warfare) SAP COMSEC (Communications Security) GEOINT (Geospatial Intelligence) Potential Consolidation to 7 Pipes NDP Expanded AT&L TS&FD NII/CIO TS&FD Intel TS&FD SAP COMSEC (Communications Security) GEOINT (Geospatial Intelligence) NDP (National Disclosure Policy) NVD/INS (Night Vision Device/ Inertial Navigation System) MTCR (Missile Technology Control Regime) LO/CLO (Low Observable DSC (Defensive Systems Committee) AT (Anti-Tamper) Data Links/WF (Waveform) PNT/ GPS (Positioning, Navigation & Timing/ Global Positioning System) Intel (Intelligence) EW (Electronic Warfare) SAP COMSEC (Communications Security) GEOINT (Geospatial Intelligence) This is our disclosure process. The left side of the slide shows the DoN disclosure process that is know as the Technology Transfer and Security Assistance Reivew Board (TTSARB). The TTSARB is co-chaired by the VCNO and RDA. However, the DoN does not have unlimited disclosure authority, and so for many programs we must seek other authorities that reside with OSD or other agencies which is shown on the right side of this slide. There are 13 different disclosure processes managed under OSD and other agencies which has been reviewed as part the export reform effort. Results of this reform effort was to establish new principles of operation and to establish a front end to the 13 processes designed the Technology Security Foreign Disclosure Office (TSFDO). The TSFDO act as the overall administrator for the processes and facilitates, tracks, and reports status of actions. The overall process is governed by the Arms Transfer Technology Review Senior Steering Group (ATTR SSG) which is chaired by OSD AT&L and OSD Policy.

Summary Department of the Navy working hard to streamline process Have had and continue to have Continuous Process Review studies to examine every phase Continue to attack the hard issues In the end, communication is all important