USASAC PRESENTATION FOR World Trade Day, 12 Apr 07 Mr. Richard Alpaugh, Deputy to the Commander United States Army Security Assistance Command

What Does Security Assistance Provide? • Assistance Under:  MILITARY EDUCATION AND TRAINING  PEACEKEEPING OPERATIONS  COUNTER-TERRORISM ASSISTANCE  COUNTER-NARCOTICS ASSISTANCE • Sales of Articles and Services  GOVERNMENT TO GOVERNMENT (FMS)  DIRECT COMMERCIAL SALES (DCS) • Military Financing Program

Why Security Assistance? One of the principal elements of the U.S. Foreign Policy Regulated by:  FOREIGN ASSISTANCE ACT  ARMS EXPORT CONTROL ACT Executed by the Department of Defense under Department of State oversight Designed to promote regional stability Supports mutual goals and objectives

Military Sales Policies • The President certifies eligible countries • The relationship with the purchasing country is crucial … The U.S. desires more than just a simple seller and buyer relationship • Each sale is made in accordance with the policies and strategic interests of the U.S. Government The U.S. Government will neither make nor lose money • DoD promotes the acquisition of standard service configuration U.S. industry does the marketing • The U.S. Government has no preference between military sales and commercial sales The U.S. Armed Forces have priority • Material is either shipped from U.S. Government stocks or from production Our goal is to field a total package and promote self-sufficiency

Scope of DoD Security Cooperation Programs FMS Business Sales - $13.5B (FY04) - $10.6B (FY05) - $20.9B (FY06) Deliveries - $12.5B (FY06) Open Cases - 11,965 / $239.3B (12/06) Other Programs Humanitarian Assistance $38.2M (FY06/07 est) 100+ countries - $40.0M (FY07/08 est.) Disaster and Emergency Response $75.7M (FY06/07 est) - $17.9M (FY07/08 est.) Humanitarian Mine Action $6.5M (FY06/07 est) - $5.0M (FY07/08 est.) Global Peace Operations Initiative $100.384M (FY06) - $102.575 (FY07 est.) Warsaw Initiative $27.6M (FY06) - $31.0M (FY07 est.) Building Partner Capacity (Sec 1206) $100.3M executed FY06 Excess Defense Articles FY06 $219.9M Grants Offered ($14.9M FMS Offered) Regional Centers $68M (FY06) ~ 5,900 participants - $63.9M (FY07 est.) Drawdowns Sec 506 Emergency (Pakistan—Dec 05: $30M) Special (Afghanistan Support—Feb 06: $17M) Regional Defense Counterterrorism Fellowship $19.8M (FY06) ~3000 participants- $18.7M (FY07 est.) Grant Assistance FMF - $4.491B (FY06) - $4.551B (FY07 request) IMET - $86.149M (FY06) - $88.90M (FY07 request) ~ 130 Countries ~ 8,000 Students

Security Assistance Command U.S. Army Organization for Security Assistance U.S. ARMY - POLICY - Deputy Assistant Secretary of the Army for Defense Exports & Cooperation Rosslyn, VA - MATERIEL - Army Materiel Command Ft. Belvoir, VA - MEDICAL - Office of the Surgeon General Washington, DC - ENGINEER - Corps of Engineers Washington, DC - TRAINING - Training & Doctrine Command Ft. Monroe, VA Security Assistance Command Ft. Belvoir, VA - CONUS TRAINING - Security Assistance Training Field Activity Ft. Monroe, VA - OCONUS TRAINING - Security Assistance Training Management Organization Ft. Bragg, NC Life Cycle Management Commands Security Assistance Management Directorates Medical Management Activity Legend: Command Coordination / LOA Tasking

United States Army Security Assistance Command COMMANDING GENERAL BG Clinton T. Anderson OPM-SANG BG McCabe (Saudi Arabia) DEPUTY TO THE COMMANDER Richard Alpaugh Resource Management Cliff Crivello Principal Director Regional Opns COL Mitchell Information Management Garnetta Beal CHIEF OF STAFF COL Green Director Plans, Policy And Weapons COL Lacina Security and Safety Walt Gibble SGS Dala Cassedy We took the three regional directorates and formed on Regional Ops Directorate. This gave the one regional Director the ability to set priorities across the regions; surge personnel to focus on immediate requirements Combining the Ops and future directorate gave the same synergy to the Plans Policy and Weapons directorate – gives one director the ability to work the pre-LOR piece, work with industry, COCOMs and acquisition folks to shape the environment for future FMS sales. Program Operations Directorate Russell Neydl Building Management and Logistics (Belvoir) Charles Sims Management Office John Neil

AMC Security Cooperation SAMD-JMC SAMD-TACOM SAMD-AMCOM PACOM Liaison SAMD-CECOM Saudi Arabia (PM SANG) Where we’re located In the last 5 months: LNO in SOUTHCOM COL in Iraq GS-15 in Afghanistan MOU signed with PACOM – will soon fill Move LNO in EUCOM into EUCOM HQ for better synergy with J4/5 staff BRAC SOUTHCOM Liaison USASAC - Ft Belvoir - New Cumberland - St. Louis - Saudi Arabia Liaison Offices with COCOM’s EUCOM Liaison Iraq Liaison Afghanistan Liaison

USASAC Mission USASAC serves as the Army Executive Agent for Security Assistance materiel and services programs in support of US National interests USASAC has “Lifecycle Management” responsibility for all SA activity from Pre-LOR and Case Development through Case Execution and Case Closure USASAC serves as the proponent for the Army SA Information Management and Financial Policy USASAC provides policy and procedural direction to the Army SA community USASAC serves as the proponent for AMC SA Financial and Budget Execution

AMC Security Cooperation USASAC-Army’s Face To The World The Bottom Line: Managing 3791 cases with an undelivered value of $16.5B Total program value, $60B – average $3.6B in annual sales. (Total sales for FY 06 -- $5.4 Billion). 32 Co-Production Programs - with over $32 Billion dollar program value. 119 Security Assistance Offices World Wide Army FMS is a link to 140 different Armies, 47 Air Forces, 26 Navies and 26 other country entities. Strength in Cooperation

Security Assistance in Support of US Army Objectives “ How can we leverage FMS to help sustain critical product lines to surge production capability quickly to meet sudden warfighter requirements?” Institutional Army Task Force –task from VCSA “…to facilitate Interoperability with allied and coalition partners and supported U.S. national security interests (Political, Military, Economic…)” Specified task – Foreign Military Sales (ST-FMS) – Army Campaign Plan Task “…proactive Engagement….COCOM focus” Gen Griffin, AMC Commander A collaborative Partnership with USASAC, the Army Acquisition Community, and the Defense Industry

Commander’s BRAC Guidance Relocate USASAC HQ and USASAC Finance St. Louis to Redstone Arsenal in accordance with BRAC law People First Minimize disruption to the Mission Keep the Workforce informed Keep the Customer Informed Maintain Command Identity/recognition to the International Customer Use BRAC and LEAN to, where possible, consolidate Business Functions and Organizations/Offices

USASAC BRAC Demographics Average Age 49.6 Employees with targeted disabilities 1.14% Reportable disabilities 6.4% 46.45% Men 53.54% Women Hispanic males 1.6% Hispanic females 1.14% White males 32.05% White females 40.73% Black males 6.86% Black females 1.37% Average Grade level 10.5 198 authorized to move from Ft Belvoir and St Louis to Redstone Arsenal Senior pay level positions 3.46% Miscellaneous Administration/ and Program management 48.03% 6 Military Total High School 35% Some College 24% Associate Degree 8% Bachelor Degree 24% Masters Degree 9% Based on last BRAC survey 30% transferring

FMS Worldwide Impact Enhances POL-MIL Ties Provides for Military Compatibility and Interoperability Enhances Defense Industry Interest of Both Nations Reduces Production Costs US Army (and DOD) Strong Advocates for US Industry USASAC - - Army’s Face to the World

Questions??? www.usasac.army.mil Rick.alpaugh@us.army.mil 5701 21st Street, Fort Belvoir, VA USASAC - - Army’s Face to the World