1. Pete Verga Under Secretary of Defense for Policy Chief of Staff The Department of Defense (DoD) United States of America Policy as a Technology Partner (

2. Policy is Not a Technology Friction Point

3. POLICY 3 Policy is a Partner Discovery Decision Science Engineering Innovation Technology Spectrum of Thought Capabilities Defined Open Ended “The Seam” - Debate the possibilities - Determine what you want to do Develop enabling guidance/strategies/policies Discussion Time/Cost/Performance Standards Criteria Sales / Transfers

4. POLICY Case Study 4 Policy Memos Security Cooperation as a Case Study on how Policy can be your partner

5. POLICY Security Cooperation Mission Areas Foreign Military Sales Foreign Military Financing International Military Education and Training Humanitarian Assistance, Disaster Relief & Mine Action Regional Centers

6. POLICY Security Cooperation Contributes to Partner Nation’s Security Stabilizes Regions Enhances Military to Military Cooperation Enables Interoperability Leads to Lasting Relationships

7. POLICY Fiscal Year 2011 Metrics Foreign Military Sales 12,873 cases valued at $349B With 223 Countries and International Organizations Humanitarian Assistance 345 projects in 73 countries Security Cooperation Officers (SCOs) 783 SCOs in 123 Countries Regional Centers for Security Studies 8,800 Participants from over 150 Countries International Training over 64,100 Students from over 160 Countries 10,200 Security Cooperation Professionals Worldwide

8. Security Cooperation has Many Programs that may be the Right Fit for Your Situation Regional Centers FMS FMFIMET WIF CTFP GSCF PKO GPOI ASFF CRSP PCCF PCF 1206 MODA DIRI OHDACA $85.5M $24.0B $16.5M $107.7M $302.8M $250M $6.3B $348M $33.4M $115M $850M $11.2B $105.8M $33.8M $11.1M JCTDs CWPs State Partnership Programs Experimentation

9. POLICY Increase Speed, Flexibility, Responsiveness Improve Delivery Performance Special Defense Acquisition Fund (SDAF) Authority to reconstitute the fund in the 2012 Consolidated Appropriations Act ($100M) Night vision; raven UAV; MRAP vehicles; generators; mortars; secure radios Enhanced Freight Tracking System(EFTS) 100% in-transit visibility possible for participating countries Reduce Cost of Business Defense Cooperation Partnership Initiatives 9

10. POLICY Initiatives Cont’d 10 Improve Customer Involvement Partnered with OUSD (AT&L) to issue July 2011 direction to enhance FMS customer involvement in acquisition programs Security Cooperation Information Portal (SCIP) Improvements Improve Security Cooperation Workforce Knowledge Policy Guidance Update Security Cooperation Management Manual (SAMM) content for accuracy Create a separate chapter in the SAMM for Title 10 and certain State Department programs (e.g., Peacekeeping Operations)

11. POLICY Security Cooperation remains a vibrant business Focus on Interoperability, Total Package, Responsiveness Change our approach to be more anticipatory Continue to focus on improving our business Manage the growing complexity of FMS sales – Hybrid cases, Offsets, Knowledge transfers Support Regional Capability in addition to individual Country Capability Opportunities and Challenges 11

12. POLICY 12 Export Control Partnerships Defense State (Munitions) Commerce (Dual-Use) Refer Recommend Refer Recommend

13. POLICY

14. Update on U.S. Export Control Reform March 2012

15. POLICY DoD Objectives for Export Control Reform: Protect What We Must; Share What We Can  Protect the "crown jewels" of U.S. technology Maintain important technological advantage – keep the warfighters’ edge  Expedite technology sharing and cooperation with Allies and Partners Build partnership capacity  Deny resources to countries and entities of national security and proliferation concern  Support new DoD Strategic Guidance – increase capabilities of Allies and partners to take on greater security burden – Rewriting U.S. Munitions List and transferring thousands of items to the Commerce Control List, with new licensing mechanisms and greater flexibility that will facilitate exports and defense cooperation Build the flexibility to address 21 st Century security challenges

16. POLICY Why Should You Care?  Removes unnecessary obstacles to greater security cooperation Licenses no longer required for thousands of items moved off the USML when destined to the governments of Allies and close partners  Complements other Security Cooperation Reform efforts  Serves to improve interoperability among partners and Allies  Helps U.S. build coalitions quickly in contingencies with non-traditional partners  Makes U.S. systems – and therefore U.S. industry – more competitive on the world market Makes U.S. procurement a more attractive solution for partners; eases supply chain fears Supports U.S. industrial base Reduces costs of R&D through greater cooperation

17. POLICY 17 QUESTIONS? Pete.Verga@osd.mil (703) 697-6000