Air Force Security Assistance Center

Air Force Security Assistance Center
Pursuing Excellence in
Building
Partnerships…
an FMS Tale
Brigadier General Lanni
AFSAC/CC
5 October 2010
Integrity  Service  Excellence
Foreign Military Sales (FMS)…
The Big Picture
• Security Assistance
– It’s All About Relationships
• Why Do We Do It?
– Interoperability
– National Security Objectives
• What It’s Not?
– Arming of the World
– Selling of U.S.’s Old Inventory
2
AFSAC Mission & Vision
AFSAC delivers materiel solutions for our international partners in
support of the Air Force Global Partnership Strategy. Our professional
workforce manages, integrates, and leads AFMC’s security cooperation
enterprise
Our Vision: Continuously
raise the standard for security cooperation
3
products and processes
AFSAC Foreign Liaison Officers
Argentina
Australia
Belgium
Brazil
Canada
Chile
Denmark
Egypt
Germany
Greece
Indonesia
Israel
Japan
Jordan
Korea
Mexico
Netherlands
Norway
Peru
Portugal
Saudi Arabia
Spain
Taiwan
Thailand
Turkey
United Kingdom
Uruguay
Total Active USAF FMS Portfolio
by Region
COUNTRIES: 38
NATO ORGS: 9
CASES: 1065
VALUE: $37.0 B
COUNTRIES: 15
CASES: 668
VALUE: $22.3 B
COUNTRIES: 2
CASES: 89
VALUE: $964 M
COUNTRIES: 15
CASES: 178
VALUE: $1.09 B
TOTAL ACTIVE FMS
COUNTRIES: 100*
NATO ORGS: 9
CASES: 2575*
VALUE: $96.8 B*
COUNTRIES: 13
CASES: 478
VALUE: $32.7 B
COUNTRIES: 14
CASES: 93
VALUE: $2.65 B
•B5 for Sri Lanka, S4 for Kyrgyzstan and Kazakhstan
Dollar Values and case list as of: Sep 10
Provide Cradle-to-Grave
Support…
1940s C-47
1950s A-37
1960s C-7
T-33
T-38
T-37
A-7
C-130
1970s C-130 F-111 F-4 F-5
1980s F-16
F-15
B-707
E-3 KC-135
2000s 767 C-17 F-35
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…for a Full Range of
Weapon Systems…
• Weapons (AMRAAM, Sidewinder,
Sparrow, Maverick, JDAM, Paveway)
• Targeting Pods (LANTIRN)
• Night Vision Goggles
• Target Drones & RPAs
• Radars/ECM (TPS-43/70, FPS-117,
ALR-69, ALQ-131)
• Forward-Looking Infrared Radar (FLIR)
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…and a Broad Range of
Desired End Items
• Services
• Parts
• Training (AFSAT)
8
The Security
Air ForceCooperation
FMS Enterprise
Industry a Full Partner Too
End-to-End FMS Process
FMS Case Lifecycle
Pre LOR
Requirement
Definition
Case Development
LOR
Receipt
Case Preparation
Case Offered
Time Depends on Country, Type Case
and Completeness of Request
Case Execution
TITLE TRANSFER
POINT
Transportation
Issues
Materiel Supply &
Shipment
Requisitions
Extract
Major System
Major Platform
Initial Support Delivered
Consumables
Spares
Repairs
Transition to
Source of
Supply
Requisitions
Initiated
Acquisition
Contract
Definitization/ Execution
Contract
Award
Case Closure
Goal: Close within 2 years of NSSC
Case Reconciliation
Closure Certificate Issued
No
Requisitions
Until Now
Letter of Request
FMS Case Lifecycle
Pre LOR
Requirement
Definition
Case Development
LOR
Receipt
Case Preparation
Case Offered
Time Depends on Country, Type Case
and Completeness of Request
Case Execution
TITLE TRANSFER
POINT
Transportation
Issues
Materiel Supply &
Shipment
Requisitions
Extract
Major System
Major Platform
Initial Support Delivered
Consumables
Spares
Repairs
Transition to
Source of
Supply
Requisitions
Initiated
Acquisition
Contract
Definitization/ Execution
Contract
Award
Case Closure
Goal: Close within 2 years of NSSC
Case Reconciliation
Closure Certificate Issued
No
Requisitions
Until Now
Letter of Offer and Acceptance
FMS Case Lifecycle
Pre LOR
Requirement
Definition
Case Development
LOR
Receipt
Case Preparation
Case Offered
Time Depends on Country, Type Case
and Completeness of Request
Case Execution
TITLE TRANSFER
POINT
Transportation
Issues
Materiel Supply &
Shipment
Requisitions
Extract
Major System
Major Platform
Initial Support Delivered
Consumables
Spares
Repairs
Transition to
Source of
Supply
Requisitions
Initiated
Acquisition
Contract
Definitization/ Execution
Contract
Award
Case Closure
Goal: Close within 2 years of NSSC
Case Reconciliation
Closure Certificate Issued
No
Requisitions
Until Now
Case Execution
FMS Case Lifecycle
Pre LOR
Requirement
Definition
Case Development
LOR
Receipt
Case Preparation
Case Offered
Time Depends on Country, Type Case
and Completeness of Request
Case Execution
TITLE TRANSFER
POINT
Transportation
Issues
Materiel Supply &
Shipment
Requisitions
Extract
Major System
Major Platform
Initial Support Delivered
Consumables
Spares
Repairs
Transition to
Source of
Supply
Requisitions
Initiated
Acquisition
Contract
Definitization/ Execution
Contract
Award
Case Closure
Goal: Close within 2 years of NSSC
Case Reconciliation
Closure Certificate Issued
No
Requisitions
Until Now
Communication
New Study of Obesity Looks for Larger Test Group
Local High School Dropouts Cut in Half
Panda Mating Fails; Veterinarian Takes Over
Police Begin Campaign to Run Down Jaywalkers
Kids Make Nutritious Snacks
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The International Agreement:
Important Security Assistance Safety Tips
Tip 1: Scope Requirements Well
• Affordability of the Total Package Approach
• Hybrid and follow-on FMS to support Direct
Commercial Sale
• Non-Standard FMS Products/Support
•
Articles not in US Inventory (at all or as implemented)
•
Requires unique development & integration
technologies
•
Drives acquisition, test, certification processes
Managing Partner Expectations is Critical and requires full
US Team Engagement
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Tip 2: Plan for LOA Due Diligence
Congressional
Notification
• SAF/IA
Releasability
Determination
• Foreign
LOA Detailed Coordination
LOA
Development
Acceptance
• DSCA
• State Dept
Disclosure
• ITAR
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Tip 3: Mitigate Technology
Tensions
•
US Game Changers
•
COCOM Desires
•
Development Cost
Recoupment
•
Interoperability
•
Global Strategy
•
Partner Nation
Expectations
•
National Security
•
Time to vet tech issues
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Tip 4: Play a Team Sport
• FMS and DCS are two sides of the Security
Cooperation “sales” coin
• Early and effective communication is the key to
success
• DoD supports US Defense companies in the
pursuit of DCS but remains impartial
– Can endorse one product when directed, based upon
interoperability, support, and competition factors
Embassy focal point is the Security Cooperation
Office (SCO)
Tip 5: Play a Contact Sport
• Personal relationships are a key foundation for
successful FMS or DCS programs and a key
tenet of US Security Cooperation objectives
• Make an effort to make it personal
– Credibility
– Face with a name
– Culturally sensitive
The Results:
Overseas Contingency Operation Successes
Armament photo
M117 Bomb
OshKosh Snow Removal Equipment
Globemaster III
Cessna 208B
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The Results:
Humanitarian Aid
Brazilian C-130 in Haiti
Haiti earthquake destruction
Chile KC-135
Chile earthquake destruction
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The Results:
Building Partnership Capacity
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The Future
• Continued increase in the complexity of geopolitics and US Strategic Engagement
• Fiscal crisis will continue to pose challenges
• Non-standard weapons systems sales growth
• Trend towards hybrid cases will continue
• Multi-national consortiums
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Summary
• We’re Building Partnerships
• A Global Community of Airmen
• Take FMS Into Consideration Early in
Development Cycle
• Process Takes Time – Plan for It
• Expectation Management Key
• Don’t Oversell
• Leverage USG Entities Early and
Often (even in DCS)
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Questions???
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