1. International Acquisition & Exportability
Fundamentals

2. Are These Acronyms Familiar?
ICP
FMS
DCS
DEF
TSFD

3. Overview International Acquisition & Exportability (IA&E) Topics
Environment
Int’l Acquisition Forms and Mechanisms
Technology Security & Foreign Disclosure
Defense Exportability
Changing the Culture
International
Cooperative Programs
Sales & Transfers
Technology Security & Foreign Disclosure
Defense Exportability

4. The Environment
Export
Control
Reform
Security
Cooperation
Program
Protection
Planning
Defense
Exportability
Features
JCIDS
International
Provisions
Acquisition
Policy
Industry
Foreign Sales
Global
Industrial
Base
Increasing
DAW
Involvement
Technology/
Products
Environment demands we change the way we train international acquisition professionals

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

6. ICPs Vs. Defense Sales
ICPs (Partnerships) More 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)
More 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)

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

8. FMS and Service Procurement: 5 Year Average, FY10-14
The Scale of FMS
FMS and Service Procurement: 5 Year Average, FY10-14
#1. $45.1 Billion Navy (incl. USMC)
#2. $39.0 Billion FMS
#3 $38.8 Billion Air Force
#4 $32.4 Billion Army
Benefits to the U.S.
Builds U.S.-partner relationships
Interoperability
Lowers unit costs for the U.S. DoD
Maintain production lines
Dollars into the U.S. economy
Jobs 8

9. 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

10. Foreign Military Sales (FMS)
Program Trends
Foreign Military Sales (FMS)
Sale of DoD Configuration
with Exportability Modifications
Integration of Buyer
Furnished Equipment (BFE)
Development and Integration
of New Equipment
Direct Commercial Sales
Sale of DoD Configuration
with Exportability Modifications
DCS/FMS Hybrid Programs
Sale of New or Highly
Modified Systems
International Cooperative Programs (ICPs)
Cooperative Development of
New Systems
Incorporating Foreign
Participation in DoD Program
Cooperation Throughout
Programs’ Life-Cycles
Past
Present

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

12. 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?

13. 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

14. USG/DoD TSFD Processes
MILDEP Processes
DoD Lead: Various
MILDEP-specific various
MILDEP Process
Other DoD Processes
Org.-specific various
Few documented processes
Interagency process
LO/CLO
AT&L
Primary AT
SAP
SAPCO
Specialized
DSC
AT&L + Policy
Intel
USD(I)
Data Links/WF
DoD CIO
PNT/GPS
COMSEC
NSA & DoD CIO
GEOINT
NGA
MTCR
Policy
NDP EW
None
No single process
NVD/INS
DTSA

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

16. 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

17. Int’l Acquisition Transactions Looking Forward -- Macro View
Add
Inquiry, Partnership
Discussion or Request for Purchase
FMS
Export Control
Capabilities & Tech Willing to Transfer US
Strategy & Policy
Initial
TSFD
& DEF
TSFD
DCS
Int’l
Acquisition Transactions ?
ICP
Desired Capabilities & Tech
Foreign Strategy & Policy
Other
Engage
Earlier
Defense
Acquisition System

18. Changing the International Acquisition Culture
Conventional
Separate ICP, FMS, DCS business planning
Sequential, stove-piped transaction mechanisms
Reactive TSFD and export control policy development
Exportability mods to U.S. design by launch partners/customers
IA&E
Integrated international business planning
Multiple, parallel transaction mechanisms
Early TSFD and export control policy engagement
Design for exportability throughout the acquisition life cycle
Improved Outcomes for DoD, Allies, and Friends!

19. Back Up Charts

20. 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

21. 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)

22. 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)

23. 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 BPC policies & programs are contained in Chapter 15
of DoD’s Security Assistance Management Manual (SAMM)

24. USG/DoD TSFD Processes
MILDEP Processes
DoD Lead: Various
MILDEP-specific various
MILDEP Process
Other DoD Processes
Org.-specific various
Few documented processes
Interagency process
LO/CLO
AT&L
Primary AT
SAP
SAPCO
Specialized
DSC
AT&L + Policy
Intel
USD(I)
Data Links/WF
DoD CIO
PNT/GPS
COMSEC
NSA & DoD CIO
GEOINT
NGA
MTCR
Policy
NDP EW
None
No single process
NVD/INS
DTSA

25. DoDD 5111.21, “ATTR SSG and TSFDO” (New October 2014)
OSD TSFD Initiative
Arms Transfer and Technology Release (ATTR) Senior Steering Group (SSG) created in 2008 and formally established in 2012:
Overarching DoD authority to ensure clear senior-level direction; USD(P) & USD(AT&L) co-chairs
Serves as appeals board and mediation body
TSFD Office (TSFDO) supports ATTR SSG efforts:
ATTR SSG Executive Secretariat and assesses/recommends changes to policies
Develops/implements procedures and checklists, coordinates documentation and policy, conducts outreach
DoDD , “ATTR SSG and TSFDO” (New October 2014)