1. International Acquisition & Exportability
Fundamentals

2. Overview International Acquisition & Exportability (IA&E) Topics
Security Cooperation
Int’l Acquisition Forms and Mechanisms
Technology Security & Foreign Disclosure
Defense Exportability
Summary
International
Cooperative Programs
Sales & Transfers
Technology Security & Foreign Disclosure
Defense Exportability

3. Security Cooperation is a DoD Term (Joint Pub 1-02)
All DoD interactions with foreign defense establishments to build defense relationships that promote specific US security interests, develop allied and friendly military capabilities for self-defense and multinational operations, and provide US forces with peacetime and contingency access to a host nation.
Security Cooperation is a DoD Term (Joint Pub 1-02)

4. Security Cooperation Elements
Combined
Exercises
Equipment
Sales
& Financing
Defense
Contacts &
Familiarization
Int’l
Armaments
Cooperation
Support
to Operations
Humanitarian
Efforts & Civic Assistance
Training & Education

5. Security Cooperation Elements
Elements that involve defense acquisition
in color
Combined
Exercises
Int’l
Armaments
Cooperation
Equipment
Sales
& Financing
Defense
Contacts &
Familiarization
Humanitarian
Efforts & Civic Assistance
Support
to Operations
Int’l
Training & Education
DoDD October 2008

6. Major Legislation Title 22 Legislation Arms Export Control Act (AECA)
Foreign Military Sales (FMS)
Direct Commercial Sales (DCS)
Cooperative Programs
Foreign Assistance Act (FAA)
Grant Aid
International Military Education and Training (IMET)
Excess Defense Articles (EDA)
Title 10 Legislation
Building Partner Capacity (BPC)
Cooperative RDT&E
Acquisition and Cross Servicing Agreements (ACSAs)

7. International Acquisition & Exportability (IA&E)
Cooperative Programs
Sales & Transfers
Technology Security & Foreign Disclosure
Defense Exportability Integration

8. International Armaments Cooperation (IAC)
Cooperative research, development, and acquisition projects and programs
Enabling Programs
Personnel exchange (ESEP & APEP)
RDT&E Information Exchange Program (IEP)
International Cooperative R&D (ICR&D) program
Coalition Warfare Program (CWP)
Foreign Comparative Testing Program (FCT)
International Cooperative Programs (ICPs)

9. International Cooperative Programs (ICPs)
Scope
DoD concludes about ~30 international agreements/year for ICPs
Most agreements are for S&T or early R&D projects
Some agreements for cooperation on a “piece” of a program
Limited number of fully cooperative major system development/production programs
Major System Examples
F-35 Joint Strike Fighter (JSF)
NATO Alliance Ground Surveillance (AGS)
Rolling Airframe Missile (RAM)
Evolved SeaSparrow Missile (ESSM)
Multifunctional Information Distribution System (MIDS)
Guided Multiple Launch Rocket System (GMLRS)
Wideband Global SATCOM (WGS)

10. The Nature of ICP International Agreements
Each IA is unique
Not a Treaty, but much more than an international handshake
An Executive Department Agreement that may have a Congressional reporting requirement
Legally binding for the U.S.
Enforceable through mutual agreement (no arbitration)
Reciprocal

11. IAC & ICP Key Players & Processes
International Interaction
Project ideas
Policy
Limited funding
International agreement approvals
AT&L Director of International Cooperation [AT&L(IC)]
Defense Coop Committees,
MOU Reviews
International Program Organizations (IPOs)
SAF/IA
DASA(DE&C)
NIPO
Project ideas
Policy
Limited funding
International agreement development
Senior Nat’l Reps,
Cooperation Reviews
DoD Agencies: DTRA, DARPA, MDA
AFRL, PEOs, SPOs
RDECOM,
Labs, PEOs
ONR, NRL, PEOs, POs
Many Others
Project ideas
Funding
Management
Execution
S&T WGs,
Conferences,
Visits/Mtgs

12. AT&L ICP Agreements Process
Cooperative
Opportunity
Timeline
Highly dependent on international agreement complexity
For simple Project Agreements (PAs), ~12 months from RAD to agreement signature
Complex multilateral MOUs can take significantly longer
Discussions
Request Authority
to Develop (RAD)
Negotiations
Request for Final
Approval (RFA)
Sign
Agreement
Execute
Program
AT&L Process Owner
Director of International Cooperation, USD(AT&L)/IC
Responsible for international cooperation policy & providing international agreement approvals to DoD Components

13. ICPs Vs. Defense Sales
ICPs (Partnerships) Flexible Bilateral or Multilateral Foreign Gov’t is Partner Joint Requirement Both Gov’ts Are End Users Both Gov’ts Fund Terms are Negotiable Both Participate in Oversight Cost of Services are Shared USD(AT&L) Oversees (Title 10)
DEFENSE SALES
(Buyers-Sellers)
Rigidly Structured
Bilateral Arrangement
Foreign Gov’t is Customer
Foreign Gov’t Requirement
Foreign Gov’t End User
Foreign Gov’t Funds
U.S. Sets Terms (LOA)
U.S. Controls Implementation
Foreign Gov’t Pays for Services
USD(P) Oversees (Title 22)

14. International Acquisition & Exportability (IA&E)
Cooperative Programs
Sales & Transfers
Technology Security & Foreign Disclosure
Defense Exportability Integration

15. Security Assistance Programs
Security Assistance is a
State Department-led
effort primarily
implemented by DoD
Program Administration Responsibilities
Department of Defense
Foreign Military Sales (FMS)
Foreign Military Financing Program (FMFP)
Int’l Military Education & Training (IMET)
Foreign Military Construction Services (FMCS)
Leases
Drawdowns
Excess Defense Articles (EDA)
Department of State
Peacekeeping Operations
Int’l Narcotics Control & Law Enforcement
Nonproliferation, Antiterrorism, Demining, and Related (NADR)
Direct Commercial Sales (DCS)
US Agency for Int’l Development
Economic Support Fund (ESF)

16. FMS & BPC Key Players & Processes
International Interaction
DoD-wide SC Policy
FMS Admin $
SC & FMS transaction approvals
Defense Security Cooperation Agency (DSCA)
OSD/Joint
Staff
Level
Component SC Policy
FMS Admin $ allocation
SC & FMS transaction development
MILDEP HQ Focal Point
SAF/IA
DASA(DE&C)
NIPO
DoD
Component
Level
Receive/respond to LORs
Oversee LOA execution by PEOs, PMs, log centers, training orgs, etc
SAF/IAR, AFSAC, AFSAT
DASA(DE&C), USASAC, AMSAC, SATFA, COE,
USACE
NIPO
DSCA, DCMA, DISA, DLA, DTRA, MDA, NGA, NSA
Implementing Agencies (IAs)
CoCOM
Country
Team Level

17. Letter of Request (LOR) Letter of Offer & Acceptance (LOA)
FMS Process
Preliminary
Definition
Letter of Request (LOR)
Request
Offer
Letter of Offer & Acceptance (LOA)
Acceptance
Implementation
Timeline
By DSCA policy for a complex FMS case ~6 months from LOR to LOA signature
Many variables – cycle time often longer
Execution
Closure

18. Direct Commercial Sales (DCS)
Sale of defense articles, services, or training made or provided by U.S. defense industry to a foreign entity
Not administered by DoD and do not involve a government-to-government agreement
Foreign entity contracts directly with U.S. company
USG control procedure is accomplished through licensing

19. FMS vs DCS vs Hybrid
DoD is generally neutral whether a foreign country purchases through FMS or DCS
Certain items can be designated FMS only; based on complexity, sensitivity, interoperability, relationships
Most major system DCS programs will have an FMS companion effort for FMS-only items (i.e. a hybrid program)
Many EW system international sales are
“hybrid programs” due to classified aspects
of system software functionality

20. Building Partner Capacity (BPC)
Title 10, DoD Security Cooperation programs executed through the FMS infrastructure
Differences from traditional FMS
USG Requesting Authority identifies requirement
Funded by the USG
“Pseudo”-LOAs are not signed by country
Title transfers in country
Variety of programs conducted under multiple legal authorities
List of programs and BPC policies are contained in Chapter 15 of the SAMM

21. Planning & Requirements
BPC Case Process
Planning & Requirements
Definition
Development
Implementation
Execution
Closure
Memorandum of Request (MOR)
Pseudo LOA
Timeline
By DSCA policy 30 days from MOR to Pseudo LOA

22. International Acquisition & Exportability (IA&E)
Defense Exportability Integration
Sales & Transfers
Technology Security & Foreign Disclosure
International
Cooperative Programs

23. The Dilemma
Provide required capabilities quickly to allies and friends
Protect the “crown jewels” of U.S. defense technology
How can the USG/DOD best balance these two competing demands?

24. TSFD and Export Control Basics
Fundamental Security Considerations
Access
Protection +
Release Conditions
Not transfer or use for other purposes without U.S. consent
Provide substantially the same degree of protection as U.S.
Type of Authorizations
TSFD
Disclosure
Authorizations
Export
Control
DoD
Intel Community
Interagency
DoD
Interagency
State & Commerce
DoD
Interagency

25. International Acquisition & Exportability (IA&E)
Defense Exportability Integration
Sales & Transfers
Technology Security & Foreign Disclosure
International
Cooperative Programs

26. Designing for Exportability
Launch customer paid for technology security modifications to DoD configuration
Expensive and time consuming mods inhibit foreign sales
No authority to use appropriated funds for exportability design
Past
Present
Defense Exportability Features (DEF) Pilot Program authorized by Congress in FY11 and subsequent Nat’l Defense Authorization Acts
OSD and the MILDEPs have selected 15 programs to participate as DEF Pilot Programs
Authorizes expenditure of DoD funds to evaluate exportability and facilitate planning; industry shares cost
Facilitates incorporation of program protection features in systems with high export potential during system development
Improves protection of Critical Program Information (CPI) and critical functions using Anti-Tamper (AT)/Cyber measures
Reduces overall DoD and foreign program protection costs
Makes our equipment available earlier to Allies and Friends
Why

27. What are the major benefits of International Acquisition Programs?

28. International Acquisition Benefits
FMS
Improved Interoperability
Economies of Scale
Production
Operations & Support
Maintain hot production base
Share sustaining engineering costs
Share production line shutdown costs
Share RDT&E costs
Share production non-recurring costs
BPC
DCS
ICP

29. International Acquisition & Exportability (IA&E)
DoDI and DAU Training
International
Cooperative Programs
Sales & Transfers
Technology Security & Foreign Disclosure
Defense Exportability Integration
Goal = Improve Int’l Acquisition Outcomes!

30. Handouts

31. Defense Exportability Activities
IOC A C B
LRIP
Technology Maturation & Risk Reduction.
Production & Deployment
DRFPRD
Materiel
Solution
Analysis
CDD-V
CDD
ICD
Draft
Operations &
Support
Materiel Development
Decision
FRP
Sustainment
Disposal
FOC
Engineering &
Manufacturing Development
CDR
CPD
PDR
Exportability Assessment
Projected sales
Technology complexity
Exportability Feasibility Studies
Conducted with program contractor
Included in TMRR contract
Funded by program or DEF PE
Industry provides 50%
Exportable Designs
Funded by program, cooperative program or customer, or industry (or combination)
May be multiple configurations
Exportable Version Production
Funded by customer
Exportable Version Depot & Spares
Activities Require MDA Approval

32. Comparisons International Cooperative Programs
Foreign Military Sales (FMS)
Direct Commercial Sales (DCS)
Building Partner Capacity (BPC)
Legal Authority
AECA Section 27 & 10 U.S.C. 2350a
AECA Sections 21 and 22
AECA Section 38
National Defense Authorization Acts
DoD Oversight
OUSD(AT&L)
OUSD (Policy); DSCA
OUSD (Policy); DTSA
Primary
Regulations
DoDD & DoDI
Security Assistance Management Manual (SAMM)
International Traffic and Arms Regulations (ITAR)
SAMM
Relationship
Partner
Buyer-seller
Provider-receiver
Form of Agreement
International Agreement
Letter of Offer and Acceptance (LOA)
State Department export license & commercial contract
Pseudo-LOA (not signed by foreign country)
Requirement
Mutual
Foreign customer
(Letter of Request – LOR)
DoD determined
(Memorandum of Request – MOR)
Funding
Equitably shared
DoD
Program Management
Joint
DoD Implementing Agency (IA)
DoD IA
Contract Privity
Partner nations and industry
DoD IA and industry
Foreign purchaser and U.S. industry
Risks
Production Cooperation
Cooperative production
Coproduction
Licensed production
N/A