1. Foreign Comparative Testing (FCT) Comparative Technology Office (CTO) Office of the Director Defense Research & Engineering Rapid Fielding Directorate ----------------------------------- Website: www.acq.osd.mil/cto Portal: https://cto.acqcenter.com Phone: (703) 602-3740 UNCLASSIFIED 1

2. 2 Outline Global Defense Industry Foreign Comparative Testing (FCT) –What We Do –Interest Areas –How We Measure Success Participation with FCT –Best Practices –Timeline –Points of Contact

3. 3 3 Global Defense Industry - Based on 2010 Defense Revenue - Only 43 of the top 100 defense contractors, by revenues, are U.S. companies 25 of the top 50 defense contractors are foreign 3 of the top 10 defense contractors are foreign –#3: BAE Systems (United Kingdom) –#7: EADS (Netherlands) –#9: Finmeccanica (Italy) But 86% of the proposals we receive represent foreign contractors smaller than the top 100 Source: Defense News (July 20, 2010) 3

4. 4 FCT - What We Do In 2010 we funded 19 continuing projects & 14 new starts Mission: Deliver Innovative, world-class products that solve warfighter problems TRL 7 - - System prototype demonstration in an operational environment TRL 8 - - Actual system completed and 'flight qualified' through test and demonstration Established in 1980 by 10 USC, Section 2350a(g), to determine ability of NATO & friendly foreign countries to satisfy U.S. requirements or operational deficiencies Invest approximately $34 million each year Find & Test “Here & Now” Solutions Projects begin within a year, end within 18 months of contract award Testing at U.S. or foreign ranges Project value: Range of $200K - $2M; average of $800K Supported by DoD Acquisition Policy Armaments Cooperation Testing of Allied & Friendly Foreign Countries’ Equipment OSD Selects & Funds Projects Clear Goal: “Test to Procure” Focus on mature technologies Whenever possible, we desire side-by- side competitive testing Services & USSOCOM Execute Our Programs Nominate mature military or commercial products Manage all testing and fielding

5. * Reflects FY09 Constant Year Dollars * Others – Austria, Belgium, Croatia, Denmark, Finland, Greece, Iceland, India, Italy, Japan, Netherlands, New Zealand, Poland, Republic of Korea, Russian Federation, Singapore, South Africa, Spain, Switzerland, Taiwan ** Others -- Belgium, Denmark, Finland, India, Italy, Japan, Netherlands, New Zealand, Poland, Republic of Korea, Russian Federation, South Africa, Switzerland FCT: Testing & Procurement By Country (FY 1980 – 2010) 5

6. 2010 Capabilities to the Fight Enhanced Body Armor 5059 Aluminum Alloy 84mm Carl Gustaf + Multi-Purpose Rounds RapidEye Imagery Area Mine Clearing System Multi-Purpose 70mm (2.75 in) Rocket Warhead

7. 7 Tested Products from 28 Countries OSD Investment: $1.08 Billion (constant FY10 $) Estimated RDT&E Cost Avoidance: $7.60 Billion Accelerated Fielding Averages 5-7 years Procurement Rate ~ 82% since 1980 Foreign Vendor Teaming with U.S. Industry in 33 States FCT Metrics - Over Last 30 Years 266 Projects Met Service Requirements 630 Projects Started, 551 Completed 218 Projects Procured --$10.4B

8. 8 FCT: How It Works 2 U.S. Acquisition Program Manager writes FCT Project Proposal 3 Service or USSOCOM Sponsor review and submit Proposals to OSD 4 OSD Reviews Proposals - Selects projects in accordance with criteria & available funds 5 Following notification to Congress, OSD provides funding to Service to conduct tests & evaluations 1 U.S. Acquisition Program Manager desires to test foreign item 8

9. What We Look For So What?So What? Saves lives (MRAP, body armor) Saves money (improved component / subassembly) Game changer (UAVs, IED detection) Who is Customer / Sponsor?Who is Customer / Sponsor? Laboratory, weapon system or supportability PM, Combatant Command, industry, congressional, other government agency? Risk, Technology maturity?Risk, Technology maturity? TRL / MRL, risk is best guess or well-understood? Urgency / Timing?Urgency / Timing? Joint Urgent Operation Need, Urgent Operational Need (JUON / UN), or satisfies a routine operation capability need? Interim capability with 70-80% solution in 6 mos. to 1 year, vice satisfying ALL testing & qualification requirements in 2-3 years? Who is the Buyer?Who is the Buyer? On a customer’s critical path or just ‘nice to have’ ? Have You Worked with DoD Before?Have You Worked with DoD Before? If not, who is your ‘broker’?

10. 10 Fiscal Year 2012 Timeline Milestones for Fiscal Year 2012 Budget & Execution Sep- Dec 2010 Services & USSOCOM Initiate Internal Proposal Call Fiscal Year 2012 Final Proposals Submitted Jul- Aug 2011 1 Oct 2011 Fiscal Year 2012 Begins New project start OSD Approval Sep2011 OSD Subject Matter Expert Review Jun 2011 Feb2011 Project Management Reviews with Services & USSOCOM Projects Can be Started Throughout the Fiscal Year 10

11. What Makes Foreign Companies Successful in FCT? Advocating Presence in the United StatesAdvocating Presence in the United States –Strong support from Embassy in the US –Professional consultants / active industry associations –Trade shows for visibility (e.g., Africa Aerospace & Defence, Eurosatory, DSEI) –Partnering with a US company (not required) Good relationship with the US Embassy Office of Defense CooperationGood relationship with the US Embassy Office of Defense Cooperation –Great place to find out where to start Strong capabilities that fulfill U.S. Warfighter needsStrong capabilities that fulfill U.S. Warfighter needs –Can be a dominating industry presence –Can be a niche market provider Routinely check for FCT proposals on www.fedbizopps.govRoutinely check for FCT proposals on www.fedbizopps.gov –Requests for Proposals, Requests for Information, or Sources Sought –Respond when appropriate Establish contact with the Office of the Secretary of Defense Comparative Testing Office, the Military Services & USSOCOM offices responsible for FCTEstablish contact with the Office of the Secretary of Defense Comparative Testing Office, the Military Services & USSOCOM offices responsible for FCT –When in the U.S., set up appointments to visit with the key personnel 11

12. OSD CTO Main Col Eric Burns fct@osd.milRichard.burns@osd.mil703.602.3740 Army Randy Everett randy.everett@us.army.mil410.306.4824 Navy / USMC Mike Mentas michael.mentas@navy.mil703.696.0340 AF Amy Tinch amy.tinch@pentagon.af.mil703.588.8950 SOCOM Ron Schwartz schwarr@socom.mil813.826.1035 Key Points of Contact FCT is a Bottom-Up Project Proposal Process – Submitter Works with Services & SOCOM to Develop FCT Proposals 12

13. Questions? 13