Defense Security Cooperation Agency Defense Solutions for America’s Global Partners National Military Intelligence Association Fall Conference Mr. Richard A. Genaille, Jr. September 2012 Deputy Director, Defense Security Cooperation Agency “Role of Security Cooperation in Foreign Engagement & Building Partner Capacities”

Why Security Cooperation is important Evolving international sales environment DSCA role and responsibilities Security cooperation reform and FMS business process improvement initiatives Agenda 2

Why We Do Security Cooperation To support the strategies of the Combatant Commanders in an agile, efficient, flexible manner To ensure international partners are trained and equipped to be strong, capable, interoperable partners in combined operations To cultivate relationships that lead to long-term partnerships 3

Partners Contributing to ISAF 4 AlbaniaCzech RepublicIrelandPoland ArmeniaDenmarkItalyPortugal AustraliaEl SalvadorLatviaSlovenia AustriaEstoniaLithuaniaSpain AzerbaijanFinlandLuxembourgSweden BahrainFranceMalaysiaThe Former Yugaslav Republic of Macedonia BelgiumGeorgiaMongoliaTonga Bosnia and Herzegovina GermanyMontenegroTurkey BulgariaGreeceNetherlandsUkraine CanadaHungaryNew ZealandUnited Arab Emirates CroatiaIcelandNorwayUnited Kingdom 48 Countries – 39,468 Troops

Australia – Rotary Wing Group consisting of CH47D Chinook Helicopters – C-17 Airlift support Canada – C-17 Airlift Support – C-130J Airlift Support – MRAPs European Participating Air Forces – F-16 Combat Air Support Poland – Led 1 division of troops comprised of 15 different countries – Equipped from the bottom up to meet deployment requirements – More than $40M in personal and unit equipment Georgia Light infantry brigade trained and equipped for low intensity operations Partner Contributions to ISAF 5

Partnerships with 224 countries and international organizations Economies of scale in both production and sustainment Access to ports, airfields, rail lines, roads and air space Maintain production lines, skilled workforce and technical know-how Access to leading edge technology for U.S. and international partners Access to partner test facilities Use of partner funded modifications Interoperability with international partners Technology development — RDT&E Total package acquisition, sustainment and training for international partners $385B FMS portfolio value -- $66B new business FY 12 Security Cooperation Benefits 6

OSD Policy-level agency which has leadership, management, and oversight responsibility for DoD Security Cooperation (SC) programs –SC includes sales or transfers of defense articles and services under Foreign Military Sales, Foreign Military Financing, International Military Education and Training, and other programs Lead, resource, and educate the DoD SC Community to shape, refine, and execute innovative security solutions for partners in support of U.S. interests U.S. Government Interagency advocate for SC initiatives and programs SC due diligence consistent with U.S. law, polices and regulations – FAA, AECA – DoD, DoS, Congressional review/approval DSCA’s Role 7

Integration of policy and business processes for the sale, lease, grant, or transfer of defense articles and services (including professional, military education and technical training) Management of complex funding streams and business processes for diverse U.S. and non-U.S. funds and programs Engagement with international customers and advocate on their behalf within the U.S. Government Provision of information technology infrastructure for the Security Cooperation community Provision of security cooperation education and training for U.S. government, industry, and international partners DSCA Core Competencies 8

Our Scope Total Foreign Military Sales 12,901 Cases Valued at $385B With 224 Countries and International Organizations Humanitarian Assistance 274 Projects in 82 Countries FY 2011 Security Cooperation Officers 768 SCOs in 148 Countries Regional Centers for Security Studies/ 9,000 Participants from 156 Countries FY 2011 International Training 7,344 Students from 141 Countries FY ,200 Security Cooperation Professionals Worldwide 9

Global Reach Partners Non-Partners.. 10 Partners participate in at least one Security Cooperation Program Non-Partners Belarus Burma China Cuba Cyprus Eritrea Fiji Iran North Korea Somalia Syria Vatican City Venezuela

Increasingly challenging regulatory environment New Security Cooperation partners Partner country political, legal, financial, procurement requirements, processes and timelines New/leading-edge technologies and capabilities Non-standard/non-inventory/country-unique systems Much stiffer international competition Multiple Security Cooperation authorities (85 total) USG senior leaders interest, involvement, urgent requirements expectations Evolving International Sales Environment 11

Change our approach to be more anticipatory Increase Speed, Flexibility, Responsiveness Improve Delivery Performance Reduce Cost of Business Improve Customer Involvement Improve Customer Visibility Enhance Knowledge of the Process Grow/leverage SC Community Capability Constant Improvements 12

Phases Initiatives Pre-LOR Case Development Case Execution Case Closure SCO Mission Analysis ATTR SSG/ SPSG ERGT LOA Processing Standard Security Cooperation Community Training SDAF Community Management Plan Shipping Documentation Tri- Service Case Closure Project “Where we have been focused” “Where We Are Now Focusing” MTDS Quality DCMA Contract Mgt Tools for FMS Center for LL/BP DSCA LNO in Joint Staff (J-5) Termination Liability Re-computation 24/7 DSCA reach- back Capability Return of ULO Funds project DSCA seat on DFARS Council Security Cooperation Management Suite (SCMS) LOR Quality DISAM Curriculum Enhancements FMS Admin Surcharge Surcharge Tiering End-to-End FMS Process Mapping Effort Strategic Communication & Outreach FMS Prioritization SCIP Community Page Increase Cust. Participation in Contracting SCES Continuous Process Improvement Across The Entire FMS Timeline 13

DSCA led ERGT to Armenia in July 2012 – Fifth ERGT executed: Bulgaria, Uzbekistan, Iraq (virtual), Iraq Received considerable analytical support from DIA and NGIC – Assessments on pol-mil issues, peacekeeping brigade, defense economics Included members from outside traditional FMS community for operational expertise – Kansas National Guard, US Air Forces in Europe, Army Corps of Engineers Conducted four site visits – Peacekeeping Brigade Headquarters – Military Medical Hospital and EMEDS Warehouse – Zar Training Area – Humanitarian Demining Center Drafted 16 Letters of Request Armenia Expeditionary Requirements Generation Team 14

Questions? 15