1. Defense Exportability`
Defense Exportability
Update
Frank Kenlon
Professor of Int’l Acquisition (Intermittent)
June 2015

2. International Acquisition & Exportability (IA&E)
New in DoDI (Jan 2015)
Defense
Exportability
Sales & Transfers
Technology Security & Foreign Disclosure
International
Cooperative Programs

3. The Dilemma
Provide required capabilities quickly to allies and friends
Protect the “crown jewels” of U.S. defense technology
Will the new Defense Exportability Features (DEF) initiative help?

4. 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

5. 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

6. Systems Engineering Protect Critical Technology
Enhance the Exportability of Defense Systems
Facilitate International Cooperative Programs
Promote Allied and Friendly Nation Interoperability

7. System Security Engineering
Integrating process for mitigating and managing risks to advanced technology and mission-critical system functionality
Provides the functional discipline within SE to ensure that security requirements are included in the engineering analysis
Should include an assessment of security criteria that sets limits for:
International Cooperative Programs
Foreign Military Sales
Direct Commercial Sales
From this assessment; engineering, hardware, and software alternatives (i.e. export variants and anti-tamper provisions) should be identified that would permit such transactions

8. Critical Program Information
DoD CPI Policy:
Protect CPI to maintain U.S. warfighter operational and technological advantages
Identify CPI early (and reassess periodically) to implement CPI protection and countermeasures throughout RDT&E programs’ lifecycles
Ensure horizontal CPI protection measures (anti-tamper, exportability features, security) are consistently and efficiently applied across RDT&E programs
Integrate and synchronize CPI protection measures in Program Protection Plans (PPPs)
Definition of CPI :
“U.S. capability elements that contribute to the warfighters’ technical advantage, which if compromised, undermines U.S. military preeminence. U.S. capability elements may include, but are not limited to, software algorithms and specific hardware residing on the system, its training equipment, or maintenance support equipment.”
DoDI (May 2015) New

9. DoDI 5000.02 (Enclosure 3, paragraph 13) New
Program Protection
“Program protection also supports international partnership building and cooperative opportunities objectives by enabling the export of capabilities without compromising underlying U.S. technology advantages.” Program managers will describe in their [Program Protection Plan] PPP the program’s critical program information and mission-critical functions and components … [including] planning for exportability and potential foreign involvement. Countermeasures should include anti-tamper, exportability features, security … and other mitigations …”
DoDI (Enclosure 3, paragraph 13) New

10. Program Protection Plan (PPP) -- DAG Chapter 13.2. --
System development document focused on identification and protection of CPI as well as mission critical functions and components
Milestone A and B PPPs should include areas such as:
Program’s potential for ICP efforts (including S&T) and future foreign sales
Initial TSFD and defense exportability activities including:
Candidate CPI identification for domestic and export configurations
Potential defense exportability system security design risk mitigation measures (anti-tamper, differential capabilities)
Summaries of threats/risks/cost using format contained in OUSD(AT&L) Memo of July 18, 2011
S&T Community may participate in system development-related:
IAC and ICP S&T activities that support system development objectives
Defense Exportability Features (DEF) feasibility study efforts
Since S&T community members may be asked to help system development Program Managers and their Integrated Product Team (IPTs) prepare PPPs, we have included a chart on this subject in this presentation.
Per DoD 5000 series policy, an initial PPP must be prepared for Milestone A. This initial PPP should be refined and updated the program moves forward through subsequent system development Milestones. Chapter 13.2 of the DAG provides specific guidance on PPP preparation, including hyperlinks to these two documents:
AT&L’s guidance memo on PPPs:
PPP format:
DoDI , Critical Program Information (CPI) Protection within the Department of Defense, defines CPI as elements or components of a Research, Development, and Acquisition (RDA) program that, if compromised, could cause significant degradation in mission effectiveness; shorten the expected combat-effective life of the system; reduce technological advantage; significantly alter program direction; or enable an adversary to defeat, counter, copy, or reverse engineer the technology or capability.
If tasked to do so, S&T community members should assist PMs/IPTs in identifying potential CPI and critical technology components using the criticality analysis approach contained in the PPP guidance documents cited above.

11. Program Protection Plan (PPP)
Single source document
Comprehensive protection
Objective: Prevent exploitation of U.S. technology or the development of countermeasures to U.S. defense systems
When: As soon as CPI is identified, should be approved at Milestone A; must be updated at subsequent Milestones
Responsibility: PM
Approval: MDA

12. PPP Template Per USD(AT&L) Memo of July 18, 2011 … Introduction
Program Protection Summary
CPI and Critical Components
Horizontal Protection
Threats, Vulnerabilities & Countermeasures
Other System Security Related Plans/Documents
Program Protection Risks
Foreign Involvement
Processes for Mgmt and Implementation of PPP
Processes for Monitoring and Reporting Compromises
Program Protection Costs
Appendices A – E
DAG Chap. 13 provides additional guidance on PPP development

13. Differential Capability
DEF Dimensions
Differential Capability
Design, develop, and test modifications to the DoD configuration that incorporate partner/customer nation unique capabilities and remove (and confirm the removal of) U.S.-only capabilities/CPI to create one or more exportable versions of the system
Anti-Tamper (AT)
System engineering activities designed into the system architecture to protect CPI against:
Unwanted technology transfer
Countermeasure development
Capability/performance degradation through unauthorized system intrusion/modification
Deter, impede, detect, and respond to exploitation of CPI in DoD systems resulting from combat losses or export sales

14. Anti-Tamper (A-T) A-T and FMS A-T Disclosure Guidelines
ATEA coord. on LOR responses for systems containing CPI
A-T mechanisms and costs must be included in the LOA
Compliance with A-T requirements certified to DSCA
ATEA must approve A-T Plan prior to LOA offer
Satisfactory V&V testing completed before export
A-T Disclosure Guidelines
Fact of A-T implementation should be unclassified
Advising foreign partners that system contains A-T measures is usually best course of action
Measures used to implement A-T will normally be classified and should not be disclosed

15. Defense Exportability Features (DEF) Pilot Program
FY11 NDAA directed SECDEF to “carry out a pilot program to develop and incorporate technology protection features in a designated system during the R&D phase of such system.”
Program Scope/Status
Identify MDAPs for which there is significant anticipated export demand and whose technical aspects are amenable to DEF
Pilot program to provide funding to evaluate exportability and facilitate planning for, design, and incorporation of exportability features during RDT&E
AT&L selects candidate programs from MILDEP nominations
FY12 NDAA change
Industry to share at least half the cost of developing and implementing program protection features
FY14 NDAA extended pilot program through October 2020
FY15 NDAA gives SECDEF flexibility to determine cost share
Defense Exportability is Part of BBP 2.0

16. How Many Configurations?
Few
Simpler design and test
Simpler production and logistics
Easier upgrades
More affordable
Many
Greater customer choice
Treats countries differently
Tailored logistics and upgrades
More expensive
DoD and partner/customer nations must compromise to achieve optimal outcomes for all (easy to say, hard to do)

17. Developing Exportable Configurations
At the Development RFP Release Decision and Milestone B, the MDA should determine if one or more exportable configurations should be developed
Informed by feasibility studies; requirements included in RFP
Funding sources must be identified
Most Programs Employ a Combination of Funding Sources
ICP funding (various alternatives)
Industry (various alternatives)
FMS or DCS customer nation funding
DSCA Special Defense Acquisition Fund (SDAF)
Title 10 funding (specific authorization & appropriation)

18. EMD Exportable Design & Development
Exportable configurations should be developed during EMD or LRIP if there is a firm commitment such as:
One or more signed ICP international agreements
One or more signed FMS LOAs
A USG-approved export of proposed U.S. industry DCS transactions
DSCA use of Special Defense Acquisition Funding (SDAF) in anticipation of FMS cases (under consideration)
Title 10 funding specifically authorized/appropriated for exportable D&D work
No Standard Approach
PMs Should Pursue All Available Alternatives

19. FY12 DEF Pilot Programs Programs MILDEP Contractor Milestone
Joint Proximity/Height of Burst Fusing (HOBF)
Army
Picatinny Arsenal
Non-MDAP
Army Integrated Air and Missile Defense (AIAMD)
Northrop Grumman
Post-B
Indirect Fires Protection Capability, Increment 2 – Intercept (IFPC2-I)
AoA
Pre-A
Common Infrared Counter Measures (CIRCM)
BAE Systems
Pre-B
MQ-4C Triton (formerly Broad Area Maritime Surveillance, BAMS)
Navy
Three Dimensional Expeditionary Long Range Radar (3DELRR)
Air Force
Raytheon
Lockheed Martin 19

20. FY13-14 DEF Pilot Programs Programs MILDEP Contractor Milestone
Next Generation Jammer (NGJ)
Navy
Source Selection
Post-A
Air & Missile Defence Radar (AMDR)
Post-B
P-8A Poseidon
Boeing
Post-C
E2D Advanced Hawkeye
Northrop Grumman
Post-FRP
Small Diameter Bomb II (SDB II)
Air Force
Raytheon
MQ-9 Reaper
General Atomics
Joint Air-to-Surface Standoff Missile (JASSM)
Lockheed Martin
Joint Ground to Air Missile (FY14)
Army
Lockheed Martin (LM)
Pre-B
Armed Aerial Scout and Ground Combat Vehicle
N/A 20

21. 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