The FMS Process - Gastronoming · The FMS Process Presented by: CAPT Patrick Holub, USN Director, CENTCOM Division Navy International Programs Office Presentation for: Naval Attache

The FMS Process

Presented by:CAPT Patrick Holub, USN

Director, CENTCOM DivisionNavy International Programs Office

Presentation for:

Naval Attache Orientation13 October 2011

2BRIEF DATE: DD MONTH YYYYCONFIG. MGR: YOUR NAME, CODE, (???) ???-????

International Customer

Foreign Military Sales (FMS)

U.S. Government

LOAFrom Stock

$

New Production

Services,

or

Information,


International Customer

Foreign Military Sales (FMS)

U.S. Government

Letter of Offer and Acceptance (LOA)

$

• FMS case is a government-to-government "contract"• Buyer-seller relationship• US procures equipment and services IAW standard

acquisition practices• The US can neither make nor lose money on the case


FMS ProcessIPO times are goals

MILITARY DEPT SIGNS (MILSIGN) & DSCA COUNTER-

SIGNS(9 DAYS)

US SIGNED LOA SENT TO

EPO

LOA SIGNED BY EPO

LOA DRAFT PACKAGE SENT TO DSCA CASE WRITING DIV (CWD)

"MILAP"(18 DAYS)

NIPO CONDUCTS

PRELIMINARY DISCLOSURE

REVIEW(1 TO 5 DAYS)

NIPO WRITES LOA DRAFT W/0 FINAL SCOPE, COST

AND SCHED (2 DAYS)

SYSCOM COORDINATES WITH CONTRACTOR AND PROVIDES FINAL SCOPE,

COST AND SCHED

SYSCOM SECURITY OFFICE CERTIFIES DEFENSE ITEM IS RELEASEABLE TO

CUSTOMER

IF MDE $14M OR MORE* NIPO SENDS 36B TO CONGRESS VIA DSCA (30 TO 90 DAYS)

IF NOT RELEASABLE, NIPO MAY PURSUE NEW RELEASE POLICY THROUGH DON (TTSARB), THEN LO/CLO, THEN NDPC

(60 DAYS TO ONE YEAR)

CUSTOMER SENDS LOR TO

NIPO

NIPO WITH PM VALIDATES LOR

(5 DAYS)

(14 TO 60 DAYS)

* or defense articles or services $50M or more; design and construction services $200M or more.


• Important that LOR communicates all the customers requirements

Beginning Of Process

CUSTOMER SENDS LOR TO NIPO


Middle Of Process

• Less than 5% of the time there will be a disclosure issue

• Lengthy process, many reviews by many organizations


• NIPO will build LOA based on past sales price and schedule information

Middle of Process

• If MDE $14m or more NIPO sends 36b to Congress via DSCA or Defense Articles or Services $50m or more; Design and Construction Services $200m or more.


Middle of Process

• NIPO historical pricing data may not be correct – things at the production line may have changed

• SYSCOM confirms existing releasability policy


End of Process

• New process designed to make DoD more efficient –all services using the same tools

• Processes and automation aside, people have to be responsible


Implementation & Execution

EQUIPMENT AND/OR

SERVICES ARE DELIVERED

NIPO IMPLEMENTS

CASE TO SYSCOM

SYSCOM (CAO) NEGOTIATES & AWARDS

CONTRACTS AND PLACES REQUISITIONS

CUSTOMER MONITORS

PROGRESS BY PMR OR LIAISON

NIPO ISSUES LOA AMENDMENT OR

MODIFICATION TO REFLECT

PROGRAM CHANGES

MAY BE ASSOCIATED DCS PROCUREMENTS

NIPO REVIEWS & ENDORSES ANY

EXPORT LICENSES

PARTS PROVISIONING &

TRAINING PROGRAMS (BOTH OPERATIONAL AND

MAINTENANCE) ARE INITIATED


Security Cooperation Reform

• FMS has been characterized as being too slow and too reactive

• FMS Community has responded with:• Compressed Rapid Acquisition Fielding and Training

process (CRAFT) – means to accelerate truly urgent programs

• Special Defense Acquisition Fund – program to stockpile low cost equipment (e.g. guns, ammo) in anticipation of FMS sale

• Expeditionary Requirements Generation Teams –cadre to travel to country to obtain in-depth perspective of country requirement


• INTENT OF SYSTEM IS TO KEEP CUSTOMER APPRISED OF EVENTS AS THEY HAPPEN

• THE PROCESS IS NOT JUST A SEQUENCE OF EVENTS BUT PART OF A LONG TERM RELATIONSHIP

FMS Process

Documents

The FMS Process - Gastronoming · The FMS Process Presented by: CAPT Patrick Holub, USN Director, CENTCOM Division Navy International Programs Office Presentation for: Naval Attache