Industry Day Highlights

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2 Highlights April 2012 CENTCOM Regional Operations Focus on COCOM Policy Initiatives FMS Process Security Cooperation Initiatives (DSCA) Export Compliance (DASA-DEC) February 2013 PACOM Regional Operations Case Development (AMCOM SAMD) FMS Contracting (Redstone Acquisition Center) 2

3 What you will see today AFRICOM Regional Operations USASAC Regional Operations ~ COL Marvin Whitaker Security Cooperation Planning ~ AFRICOM J5 Mr. Mike Casciaro DSCA Roles and Responsibilities ~ Mr. John Reed Export Control Reform ~ Dept of Commerce, Mr. Dale Alford Army Contracting Command (ACC) support to FMS cases AMCOM CECOM PEO-STRI TACOM 3

4 $ B DoD FMS Forecasts and Sales 70 FY13 Forecast $32.9B FMS $29.1B Non-FMS $3.8B Forecast 15% higher ($5B) than Sales FMS/Non-FMS Sales vs Forecast FY13 Sales $27.8B FMS $23.9B Non-FMS $3.9B FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 F-15 Sale Saudi Arabia FMS Forecast FMS Sales Standard Sales w/o F-15 to Saudi Arabia Non-FMS (BPC): ASFF, ISFF, PCCF, 1206, CRSP Non-FMS Forecast Non-FMS Sales DSCA-STR/PLN, MILDEP RoundTable, 13 Nov 13 4 Industry 4 Day

5 Army FMS Across the Globe FY13 Final NORTHCOM Countries: 3 Cases: 103 Value: $1.1B EUCOM Countries: 42 Cases: 1250 Value: $13B PACOM Countries: 22 Cases: 848 Value: $21B SATMO COCOMs: 6 Countries: 40 Teams: 73 AFRICOM Countries: 32 Cases: 310 Value: $769.5M SOUTHCOM Countries: 28 Cases: 349 Value: $2.5B CENTCOM Countries: 18 Cases: 1735 Value: $101.6B Army FMS FY03-FY13 and out Total Active FMS Countries: 145 Cases: 4651 Value: $140.3B Undelivered: $57B New FY13: $10.6B Final FY12: $19.7B Benefits of Security Assistance Strategic Engagements FY13 -Key Leader Engagements Program Reviews Foreign students trained 11.2K -SA Teams OCONUS - 73 / 40 Engaging with our Allies while Building Partner Capacity (FY13 FINAL) 5

6 USASAC leads the AMC Security Assistance Enterprise. Develops and manages security assistance programs and Foreign Military Sales cases to build partner capacity, support Army Security Assistance Enterprise COCOM engagement strategies and strengthen US Global partnerships. Department of State Congress Industry DTSA NSA NGA ASA-ALT PEO / PM FMS DA STAFF DSCA DISAM AMC SDDC Department of Commerce TRANSCOM sco sco sco DASA-DEC USASAC USAMMA TACOM SAMD/IMMC Joint Project Office (JPO) sco sco COCOM ASCCs DLA GSA DCMA DCAA AMCOM SAMD/IMMC JMC SAMD/IMMC Other MILDEPs ACC CECOM SAMD / LRC TRADOC COE STRI Collaborative Enterprise 6

7 Army Security Assistance Enterprise DASA-DEC USASAC LCMCs ACC PEOs COCOMs We re all about: - Promises -Process -People 7

8 USASAC Organization CSM Commanding General Deputy OPM SANG SATMO COL Joseph Bovy G1 Human Resources Command Information Office Chief of Staff Performance Management Office Regional Operations Washington Field Office G3/5 Operations, Security, Strategy G4 Logistics/ Acquisition G6 Information Management G8 Resource Management Special Staff Personnel Strength Face to the World USASAC s focal point is our country team led by our CPMs USASAC OPM SANG SATMO TOTAL Civilian Military Contractor Total As of 11 December 2013 CENTCOM COL Sammie Hargrove Country Program Managers Central Case Managers CPM Forward EUCOM / AFRICOM COL Marvin Whitaker Country Program Managers Central Case Managers CPM Forward PACOM SOUTHCOM COL Stephen Smith Country Program Managers Central Case Managers CPM Forward CPM Forward IMO AF/PK Mr. Fred Heaggans Country Program Managers Central Case Managers Face to the World Regionally aligned LNO Country-focused Forward 8

9 FMS Case / Program Responsibilities CASE 2 CASE 3 Country Teams. A cadre of professional, knowledgeable, proactive, well-trained diplomat / leaders. CASE 5 CASE 6 CASE 4 CASE XX 9

10 FMS Benefits and Protection FMS program delivers: Integrity: Full backing of the U.S. Government government-togovernment contract Transparency: Order transparency in the Security Cooperation Management System (SCMS) 24/7 support Total Package Approach: more than a system a coherent capability. The same systems in use by US forces Lifecycle access to the U.S. equipment sustainment system Enduring Mil to Mil Relationships 10 15

11 Common Operating Picture (COP) DASA-DEC USASAC LCMCs ACC PEOs COCOMs COP establishes ground truth on current status of cases / programs 11

12 Percentage Average Days Case Writing Timeliness and Quality CASE WRITING TIMES Case Assigned to Case Returned by FY (Avg Days) FY07 FY08 FY09 FY10 FY11 FY12 FY13 Average Days % Change From Previous Year -13% -11% +6% -16% +7% -19% 25 CASES KICKED BACK % Documents Returned, by Qtr, FY Percentage Average Time to Fix Errors = 6.8 days in 4 th Qtr 13 1 st QTR 2 nd QTR 3 rd Qtr 4 th Qtr % w/o DSCA Policy Change 12

13 Case Execution and SDRs Case Execution (Red Cases) Oct 12 Nov 12 Dec 12 Jan 13 Feb 13 Mar 13 Apr 13 May 13 Jun 13 Jul 13 Aug 13 Sep 13 Oct 13 Closure Logistical Financial Total SDRs Red Green + Amber SDRs Supply Discrepancy Reports Feb 13 Mar 13 Apr 13 May 13 Jun 13 Jul 13 Aug 13 Sep 13 Oct 13 Total SDRs Red Green + Amber

14 What you will see today AFRICOM Regional Operations USASAC Regional Operations ~ COL Marvin Whitaker Security Cooperation Planning ~ AFRICOM J5 Mr. Mike Casciaro DSCA Roles and Responsibilities ~ Mr. John Reed Export Control Reform ~ Dept of Commerce Mr. Dale Alford Army Contracting Command (ACC) support to FMS cases AMCOM CECOM PEO-STRI TACOM Thanks to North Alabama International Trade Association!! 14

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17 AFRICOM FMS MOROCCO CH-47D EDA Vehicles UGANDA Radios Engineer Equip Raven UAS Vehicles TUNISIA UH-1H HMMWVs Ambulances GSR LIBYA HMMWVs Radios Medical Equipment Training ETHIOPIA Military Intelligence Training Radio Equipment AFRICOM REGIONAL OPERATIONS FMS 54 Countries - 34 countries and 1 Int l Organization with active FMS cases 337 Open Cases $826M Total Program Value $321.1M Undelivered Value (Mat l & Svcs) One Training Case with 2 total team members Morocco - $203.2M Kenya - $122.9M Tunisia - $89.5M Top 5 Countries by Dollar Value Uganda - $87.7M Ethiopia - $38.5M DJIBOUTI Vehicles Radios and equipment GHANA Vehicles Mortars Small Arms KENYA Mobile Field Hospital Medical Supplies Radios Raven UAS AFRICOM / USASAC RO Top Priority Cases Tunisia: UH-60 Data Djibouti: Toyota Land Cruisers Ghana: Mercedes Trucks Libya: 350 EDA HMMWVs Morocco M1 Tanks Kenya Mobile Field Hospital Libya GPF Training FY12 and FY13 Statistics RWANDA IT Equipment MKT FY12: 55 Cases Implemented with TCV of $95.5M $77.3M funded via various USG Funding $18.2 funded via FMF or National Funds 6 training teams in 4 Countries FY13: 85 Cases Implemented with TCV of $92.4M $ 75.3M funded via various USG Funding $ 17.1M funded via FMF or National Funds 2 training teams in 2 Countries 17

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36 Defense Security Cooperation Agency Mr. John G. Reed Country Director, Africa Team Lead for Operations DSCA/OPS/AFW 36

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39 Export Control Reform: Welcome to the CCL 2013 Munitions Control Division Office of Strategic Industries and Economic Security Bureau of Industry and Security

40 Overview 1. Why move items from the ITAR to the CCL? 2. Review of 600-series ECCN 3. Specially Designed 4. EAR License Exceptions 40

41 Historical Context for Transition The Arms Export Control Act (AECA) requires the President as part of the section 38(f) Congressional notification process to review and update the U.S. Munitions List (USML). The last sentence of section 38(f) requires notification to Congress of any changes before removing items from the USML. The AECA limits options on country groups and license exceptions, so the International Traffic in Arms Regulations (ITAR) is a less flexible regulatory system than the Export Administration Regulations (EAR). Regulatory updates provide more flexibility for the U.S. export control system and can contribute to adding stability, predictability, and reliability in U.S. defense supply chain. Objective from the beginning has always been improvement of national security and interoperability with Allies. 41

42 How do I classify my item? Commerce Control List Order of Review Supp. No. 4 to part 774 Is my item described in the U.S. Munitions List? Is my item subject to the Export Administration Regulations? What is my item s category (0-9)? What is my item s product group (A-E)? Is my item described in a 600 series ECCN (in a paragraph that doesn t use specially designed)? Is my item a specially designed 600 series item? Is my item described in a non- 600 series ECCN? (If non- 600 series entry uses specially designed, review specially designed definition again). 42

43 Anatomy of a new 600-series ECCN CCL Category 0-9 9A610 Last two characters (i.e. numbers) will generally track the Wassenaar Arrangement Munitions List (WAML) Product Group A-E The 600 series derives its name from the 3 rd character (i.e., number) of the ECCN. 43

44 600 series Example: 9A610 Example effective for exports on or after October 15, A610 Military aircraft and related commodities Reason for Control: NS, RS, MT, AT, UN Control(s) Country chart NS applies to entire entry except 9A610.u, v, NS Column 1 w, and y. RS applies to entire entry except 9A610.y. RS Column 1 MT applies to 9A610.u,.v, and.w MT Column 1 AT applies to entire entry AT Column 1 UN applies to entire entry except 9A610.y See 746.1(b) for UN controls License Exceptions LVS: $1500 GBS: N/A CIV: N/A STA: (1) Paragraph (c)(1) of License Exception STA ( (c)(1) of the EAR) may not be used for any item in 9A610.a (i.e., end item military aircraft), unless determined by BIS to be eligible for License Exception STA in accordance with (g) (License Exception STA eligibility requests for 600 series end items). (2) Paragraph (c)(2) of License Exception STA ( (c)(2) of the EAR) may not be used for any item in 9A610. Items paragraph a-w Items paragraph x-y 8

45 Determining Changes in Jurisdiction: Specially Designed Paragraph (a) broad catch (a)(1): primarily for end items and materials (but can include other items); (a)(2): for parts, components, accessories, attachments, and software Paragraph (b) the release Subparagraphs apply to parts, components, accessories, attachments, and software General guidelines: If item is caught under (a)(1) or (a)(2), then proceed to paragraph (b) to determine if item is released from the definition If item is not caught under (a)(1) or (a)(2), then no need to proceed to paragraph (b) If item is released under any one sub-paragraph of (b), then no need to review all of paragraph (b) or even paragraph (a)

46 Determining Changes in Jurisdiction: Specially Designed (b)(1) release for prior CJ, interagency CCATS Preserves jurisdictional line with past and future CJs not superseded by revised USML categories 748.3(e): allows for USG interagency review of parts, components, accessories, or attachments that are within the scope of the definition, but exporter believes such determination is a result of insignificant changes in form or fit (b)(2) release for very basic parts and minor components Must be specifically described in (b)(2) Does not matter if changes to form or fit have been made

47 Determining Changes in Jurisdiction: Specially Designed (b)(3) release for commodities or software in production and also used in or with lower-level items (AT control only or EAR99) Must have same function, performance capabilities and the same or equivalent form and fit as lower-level item Equivalent : form modified solely for fit Do not need to know the development history

48 Determining Changes in Jurisdiction: Specially Designed (b)(4), (b)(5), (b)(6) development-phase releases; must have contemporaneous documentation to demonstrate that: (b)(4) developed with knowledge for use in or with controlled item (i.e., controlled for more than just AT reasons) and also for use in or with lesser controlled item (i.e., controlled for AT reasons only or EAR99 item) (b)(5) general purpose commodity or software (i.e., no knowledge item would be used in or with particular item) (b)(6) developed with knowledge for use in or with ATcontrolled item and for use in or with an EAR99 item; developed exclusively for use in or with EAR99 item

49 License Exceptions for 600 Series Restrictions on use of License Exceptions for 600 series May only use those license exceptions listed in 740.2(a)(13) Country Group D:5 (except (b)(2) of GOV) 9D610.b, 9D619.b, 9E610.b, 9E619.b or.c (except (b)(2) of GOV) 600 Series Major Defense Equipment sold under a contract exceeding certain values Other applicable restrictions in (e.g., MTcontrolled items) or specific section of applicable license exception 49

50 License Exceptions for 600 Series LVS ( 740.3): $1500 for most 600 series commodity ECCNs TMP ( 740.9): streamlined; expanded scope for exports to U.S. person s subsidiary, affiliate, or facility abroad RPL ( ): allows 600 series parts to repair EAR or ITAR items under certain conditions GOV ( ): streamlined; expanded to authorize contractor support personnel and to provide for certain shipments for or on behalf of USG and DoD-directed shipments TSU ( ): expanded to allow releases of technology and source code in the U.S. to bona fide, full time regular employees of U.S. universities STA ( ): additional requirements for 600 series items 50

51 License Exception STA (for all items subject to the EAR) Current requirements for all items subject to the EAR: ECCN must authorize All reasons for control that apply to the transaction must be authorized to use STA NS, CB, NP, RS, CC, SI: Country Group A:5 ( (c)(1)) Argentina, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, Turkey, and United Kingdom NS only: Country Group A:6 ( (c)(2)) [NOT available for 600 series items] Albania, Hong Kong, India, Israel, Malta, Singapore, South Africa, & Taiwan 51

52 License Exceptions for 600 Series License Exception STA: additional requirements for 600 series items only For ultimate end use by USG or government of country in Country Group A:5 ( STA-36 countries); For development, production, or servicing of an item in A:5 that is for ultimate end use by USG or government of country in Country Group A:5; For return to the United States; or If USG has otherwise authorized its use. 52

53 License Exceptions for 600 Series License Exception STA: additional requirements for 600 series items only Non-U.S. parties must have been previously approved on a State or Commerce license Consignee statement must also address ultimate end user restrictions for 600 series items and agree to end use check Eligibility request required for end item aircraft in 9A610.a 53

54 ITAR Exemptions and EAR Exceptions ITAR Exemption EAR License Exception RPL ; TMP 740.9(b)(2) and (b)(4) (b)(2) LVS (b)(5) TMP 740.9(a)(5) (b)(9) TMP 740.9(b)(10) TMP 740.9(b)(1) 125.4(b)(1) GOV (b)(2) 125.4(b)(3) GOV (b)(2) 125.4(b)(4) TSU (g) 125.4(b)(5) TSU (a) 125.4(b)(10) TSU (f) GOV (b)(2) 126.6(a) GOV (b)(2) 54

55 Status USM L Description ECCNs Status I Firearms 0y601 Proposed rule TBD II Artillery 0y602 Proposed rule TBD III Ammunition 0y603 Proposed rule TBD IV Launch Vehicles/Missiles 9y604 Proposed rule 1/31/13 V Explosives/Propellants 1y608 Proposed rule 5/2/12 VI Vessels of War 8y609 Final rule 7/8/13 Effective 1/6/14 VII Tanks/Military Vehicles 0y606 Final rule 7/8/13 Effective 1/6/14 VIII Aircraft 9y610 Final rule 4/16/13 Effective 10/15/13 IX Training Equipment 0y614 Proposed rule 6/13/12 55

56 Status USML Description ECCNs Status X Personal Protective Equipment 1y613 Proposed rule 6/7/12 XI Electronics 3y611, 9y620 Second Proposed rule 7/25/13 XII Fire Control/Sensors/Night Vision TBD Proposed rule TBD XIII Miscellaneous 0y617 Final rule 7/8/13 Effective 1/6/14 XIV Toxicological Agents 1y607 Proposed rule TBD XV Spacecraft/Satellites 9y515 Proposed rule 5/24/13 XVI Nuclear N/A Proposed rule 1/30/13 XVIII Directed Energy Weapons TBD Proposed rule TBD XIX Gas Turbine Engines 9y619 Final rule 4/16/13 Effective 10/15/13 XX Submersible Vessels 8y620 Final rule 7/8/13 Effective 1/6/14 56

57 Contact Information 600 Series Licensing and Classification Requests: Munitions Control Division Director: Todd Willis, Deputy Director: Elena Love, Deputy Director: Anthony Mitchell, Technical Product Questions on Aircraft and Gas Turbine Engines Office of National Security and Technology Transfer Controls: Gene Christiansen, Munitions Control Division: Jeff Leitz, Regulatory Interpretation and Transition Guidance Regulatory Policy Division: Office of the Assistant Secretary for Export Administration: Outreach Assistance: Outreach and Educational Services Division Director: Rebecca Joyce, Western Regional Office Director: Michael Hoffman, Web:

58 Questions? Dale R Alford Export Compliance Specialist Munitions Control Division (MCD), Office of Strategic Industries and Economic Security (OSIES) Bureau of Industry and Security (BIS), U. S. Department of Commerce (DOC) dale.alford@bis.doc.gov (Office) 58

59 UNCLASSIFIED Contracting Support to the Warfighter Agile Proficient Trusted UNCLASSIFIED 11 December 2013

60 UNCLASSIFIED Purpose / Vision / Mission / Goals Purpose ACC Provides Effective and Responsive Contracting Support Worldwide for the Army and Other Federal Agencies to Meet Warfighter Needs Vision ACC is DoD s Preeminent Provider of Decisive Edge Contracting Solutions and Practices Mission ACC Provides Responsive, Innovative and Efficient Procurement Solutions to Enable the Army s Global Warfighting Dominance Strategic Goals 1. Maintain a Highly Proficient, Agile, Innovative and Engaged Workforce 2. Provide Proactive and Responsive Contracts That Ensure our Army s Success 3. Procure Efficient Solutions for the Army and the Taxpayer 4. Provide a Standardized, Transparent, Best-in-Class Contracting Environment for our Stakeholders 5. Align the ACC to best Support the Army of 2020 Reshape Delivery of Contracting Support 60

61 UNCLASSIFIED ACC at a Glance II MCC 103 Permanent Locations 902 Ft Lewis (JBLM) Ft Wainwright Tobyhanna AD Ft Drum Carlisle Barracks Letterkenny AD Umatilla CD Adelphi Ft McCoy Ft Richardson Watervliet Arsenal Ft Devens Natick West Point Picatinny CC Arsenal Ft Dix APG / Edgewood CC Ft Meade Alexandria/Ft Myer CC Ft Belvoir Ft Lee Ft Eustis MCC CC Warren CC Sierra AD Dugway PG Moffett Field Presidio of Monterey Ft Hunter Liggett Rock Island Tooele AD II Ft A. P. Hill Crane AAP MCC Scott AFB Ft Riley Bluegrass Ft Knox AD / CF Ft Leonard Wood Ft Campbell 904 Rocky Mountain Arsenal Peterson AFB Ft Carson MCC Ft Leavenworth Pueblo CD McAlester AAP RCO Pine Bluff Ft Sill Yuma PG Ft Huachuca WSMR Ft Hood Ft Shafter X 410 MICC II MCC X Ft Polk Corpus Christi SCCT... RCO Sub Ofc... Wiesbaden Bamberg CCT SES Command Vicenza CCT Livorno Kaiserslautern Grafenwoehr RCO RCO Schwetzingen RCO Stuttgart Sub Ofc Germany CCT Eglin AFB Cp Zama Italy CCT Other overseas TDA RCO Benelux Belgium RCO Peru Peru RCO GTMO Cuba RCO Soto Cano Honduras RCO Bogota Columbia Miami Kadena AB, Okinawa Key West NAS Yongsan X II Cp Coiner DOC... SCCT SCCT CCT ACC Kuwait ACC Qatar Osan AB Cp CCT CCT RCO Humphreys... CCT Cp Arifjan Ansbach Sub Ofc Japan X TDA organization General Officer Command AD / CF FSH MCC 408 Ft Rucker II MTOE unit Shaw AFB Ft Gordon Ft Stewart Ft Benning TCC Unit/organization Includes a C2unit / organization II 905 CC 901 X Ft Buchanan II 900 X RSA Anniston II MCC Ft Bliss Legend ACC ECC Red River AD X 413 Ft Bragg Ft Jackson Ft Irwin Schofield Barracks Research Triangle Park Kuwait CCT As Sayliyah Qatar... Kunsan AB CCT RCO RCO Taegu... Korea CCT RCO 61

62 UNCLASSIFIED What ACC Procures FY13 Actions 185,942 / $60.7B As of 8 October 13 Systems 27.74% Ammo & Weapons 5.08% Equipment 8.41% Facilities & Construction 11.77% Actions: FY11: 245,958 / $86.2B FY12: 230,237 / $74.2B Misc 1.57% RDT&E 6.59% Knowledge Based Services 27.24% Major Customers IT 11.61% FMS FY11: $9.4B FY12: $7.6B FY13: $6.6B PEOs/PMs ASCCs IMCOM NETCOM AMC USAR ATEC RADOC FORSCOM DA Staff 62

63 % of Total Spend UNCLASSIFIED ACC Trends & Impacts People Actions > $100K Total Dollars in Billions Former AMC Command Contracting New ACC B 55.9B 89.8B FY13 DoD Spend $304.5B B ACC 26.3B Current FY13 ACC Spend $60.7B 87.0B Army Navy AF Other DOD ARMY DOD Gansler Report 31 Oct FED ACC Spend $60.7 FY13 63 As of 8 Oct 13

64 UNCLASSIFIED ACC Centers ACC Center Location What They Buy FY14 FMS Forecast ACC-APG Aberdeen Proving Ground, MD Chemical/biological defense equipment, electronic sensors, night vision equipment, satellite communications, radars, radios, medical countermeasures $800M ACC-NJ Picatinny Arsenal, NJ Weapons, armaments, ammunition, information technology ACC-RI Rock Island Arsenal, IL Ammunition, logistics, information technology, chemical demilitarization $117M $365M ACC-RSA Redstone Arsenal, AL Aviation, missiles $13.4B ACC-WRN Warren, MI Combat and tactical vehicles, small arms and targetry, fire control systems $3.1B 64

65 UNCLASSIFIED ACC Center Major New FMS Programs for FY14 ACC-APG ACC-NJ ACC-RI Communications Equipment Small Arms Protective Insert (SAPI) Communication and Electronics Equipment Precision Guidance Kit (PGK) 120mm Armor Piercing Sabot Non-Standard Ammunition None ACC-RSA ACC-WRN Apache Black Hawk Patriot Iraq Contractor Logistics Support (CLS), Abrams Tanks & Training Contractor Logistics & Training Support (CLTS) (Services Contract) M4/M4A1 Carbine FMS Procurement 65

66 UNCLASSIFIED Unique FMS Challenges Unique Customers Foreign countries Many do not understand US acquisition laws, regs, processes Off sets allowed for FMS purchases Unique Requirements Non-standard to Army (eg, Mi17, DShK guns, etc) Increased market research, cost/price analysis Technical challenges, availability Multiple requirement revisions: Want / Need / Funding Political US/foreign country relations often in flux Different allowances for different countries Congress, DOD, DOS, DOC competing interests 66

67 UNCLASSIFIED Where We Need Your Help Understand the Requirement, Question Uncertainties, and Propose Only to the SOW/PWS Submit Compliant Proposals -- Follow Instructions Be Responsive, Know Who Your Points of Contact Are and Respect Their Role in the Procurement Process Notify Your Contracting Officer Immediately of Any Changes, Issues That May Affect Cost, Schedule and/or Performance Perform Only What Your Contract Requires CORs are NOT Authorized to Obligate the Government Submit Invoices in a Timely Manner Maintain Proper Government Furnished Property Stewardship 67

68 UNCLASSIFIED External Oversight & Stakeholder Environment Executive Branch Army Materiel Command (AMC) Congress Impacting Today s Contracting Environment Office of the Secretary of Defense (OSD) Director of Policy and Procurement (DPAP) Joint Staff Audit/ Oversight Organizations As of 4 Dec 12 Deputy Assistant Secretary of the Army for Procurement (DASA(P)) Senior Services Manager (SSM) 68

69 UNCLASSIFIED A Progressive Journey Our Challenges Implementation of Better Buying Initiatives Retaining Trained/Experienced Civilian Contracting Personnel Increased Contract Requirements Antiterrorism Safety National and DoD Fiscal Realities Industrial Base Considerations Continuing High Contracting OPTEMPO - Workload & Complexity - Expeditionary Operations Customer Ownership of Their Contracted Capability Transparency and Consistency in the Contracting Process Contract Management Capability 69

70 Contracting Process Contracting Workforce A True Business Advisor Industry A Focus on Performance Agile, Transparent Processes Pursuing Excellence: Completing Military & Civilian Growth Developmental Assignments Communities of Practice Performance Metrics Industry Executive Council & Forums Standard Tools & Better Communication Advising and Assisting at all Steps Commitment to all Phases Customers Team Ownership Dividends: A Stronger Understanding of Full Picture United Front for the Warfighter Plans That Account for all Considerations Solutions NOT Pursued in a Vacuum What we Need and When we Need it Holding Vendors Accountable Involvement end-to-end 70

71 UNCLASSIFIED ACC today Conclusion More Than Just Paper-Pushers Delivering Warfighter Capabilities Where ACC is Going A Preeminent and Extraordinary Contracting Organization Why we Need to get Better Fiscal Environment Demands Emphasis on Efficiency How we are Going to get There Attack on Four Fronts With Customer End-to-End Involvement 71

72 UNCLASSIFIED Discussion 72