Air Force Security Assistance Center Pursuing Excellence in Building Partnerships an FMS Tale Integrity Service Excellence Brigadier General Lanni AFSAC/CC 5 October 2010
Foreign Military Sales (FMS) The Big Picture 2 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
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 Dollar Values and case list as of: Sep 10 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
6 Provide Cradle-to-Grave Support 1940s C-47 1950s A-37 T-33 T-37 1960s 1970s 1980s C-7 T-38 A-7 C-130 C-130 F-111 F-4 F-5 B-707 F-16 F-15 E-3 KC-135 2000s 767 C-17 F-35
for a Full Range of Weapon Systems 7 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)
8 and a Broad Range of Desired End Items Services Parts Training (AFSAT)
The Air Force FMS Enterprise Security Cooperation
Industry a Full Partner Too
End-to-End FMS Process FMS Case Lifecycle Pre LOR Case Development Requirement Definition LOR Receipt Case Preparation Case Offered Time Depends on Country, Type Case and Completeness of Request TITLE TRANSFER POINT Transportation Issues Materiel Supply & Shipment Case Execution Major System Major Platform Initial Support Delivered Requisitions Extract Transition to Source of Supply Acquisition Contract Definitization/ Execution Requisitions Initiated Contract Award Consumables Spares Repairs No Requisitions Until Now Case Closure Goal: Close within 2 years of NSSC Case Reconciliation Closure Certificate Issued
Letter of Request FMS Case Lifecycle Pre LOR Case Development Requirement Definition LOR Receipt Case Preparation Case Offered Time Depends on Country, Type Case and Completeness of Request TITLE TRANSFER POINT Transportation Issues Materiel Supply & Shipment Case Execution Major System Major Platform Initial Support Delivered Requisitions Extract Transition to Source of Supply Acquisition Contract Definitization/ Execution Requisitions Initiated Contract Award Consumables Spares Repairs No Requisitions Until Now Case Closure Goal: Close within 2 years of NSSC Case Reconciliation Closure Certificate Issued
Letter of Offer and Acceptance FMS Case Lifecycle Pre LOR Case Development Requirement Definition LOR Receipt Case Preparation Case Offered Time Depends on Country, Type Case and Completeness of Request TITLE TRANSFER POINT Transportation Issues Materiel Supply & Shipment Case Execution Major System Major Platform Initial Support Delivered Requisitions Extract Transition to Source of Supply Acquisition Contract Definitization/ Execution Requisitions Initiated Contract Award Consumables Spares Repairs No Requisitions Until Now Case Closure Goal: Close within 2 years of NSSC Case Reconciliation Closure Certificate Issued
Case Execution FMS Case Lifecycle Pre LOR Case Development Requirement Definition LOR Receipt Case Preparation Case Offered Time Depends on Country, Type Case and Completeness of Request TITLE TRANSFER POINT Transportation Issues Materiel Supply & Shipment Case Execution Major System Major Platform Initial Support Delivered Requisitions Extract Transition to Source of Supply Acquisition Contract Definitization/ Execution Requisitions Initiated Contract Award Consumables Spares Repairs No Requisitions Until Now Case Closure Goal: Close within 2 years of NSSC Case Reconciliation Closure Certificate Issued
15 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
The International Agreement: Important Security Assistance Safety Tips
17 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
18 Tip 2: Plan for LOA Due Diligence Congressional Notification SAF/IA Releasability Determination Foreign Disclosure ITAR LOA Detailed Development Coordination DSCA State Dept LOA Acceptance
Tip 3: Mitigate Technology Tensions 19 US Game Changers Development Cost Recoupment National Security Time to vet tech issues COCOM Desires Interoperability Global Strategy Partner Nation Expectations
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 22 Armament photo M117 Bomb Globemaster III OshKosh Snow Removal Equipment Cessna 208B
23 The Results: Humanitarian Aid Brazilian C-130 in Haiti Haiti earthquake destruction Chile KC-135 Chile earthquake destruction
24 The Results: Building Partnership Capacity
25 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
26 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)
Questions??? 27