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What’s New in International Acquisition DT Tripp Director International Programs Defense Acquisition University.

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Presentation on theme: "What’s New in International Acquisition DT Tripp Director International Programs Defense Acquisition University."— Presentation transcript:

1 What’s New in International Acquisition DT Tripp Director International Programs Defense Acquisition University

2 2 What’s NOT new More “Cred” Big Boys JCIDS DoDI 5000.02 DEF Re-invented/expanded/improved curriculum Integrated thinking - DAG Scorecard

3 3 Objectives Strengthen alliances and other relationships with friendly countries; encourage willingness to act collectively; promote international legitimacy in coalition operations Achieve interoperability that facilitates combined operations, reduces operational hazards and minimizes OPSEC compromises Ensure access to the best global technologies; help minimize capabilities gap with allies/coalition partners Share (reduce) costs for new system development; and for short and long-term support of fielded systems Political Operational Economical Technical Industrial Bolster domestic and allied defense industrial base

4 4 Access to leading technology Shared risk Economies of scale Interoperability Maintain production lines Lower G&A rates International Programs through an Affordability Lens Shared costs (leverage Other People’s Money) Technology development RDT&E Production non-recurring Sustaining engineering Modification/upgrade non-recurring Training and sustainment infrastructure Access to foreign test facilities Use of foreign-funded modifications Affordability International Programs Used by permission. Created by Prof Craig Mallory Defense Acquisition University

5 5 Share of International Arms Exports (%) 2009-132004-08Top 3 Customers USA2930Australia, South Korea, UAE Russia2724India, China, Algeria Germany710USA, Greece, Italy China62Pakistan, Bangladesh, Myanmar France59China, Morocco, Singapore UK44Saudi Arabia, U.S., India Spain32Norway, Austria, Venezuela Ukraine33China, Pakistan, Russia Italy32India, UAE, USA Israel22India, Turkey, Columbia Source: SIPRI Arms Transfer Database

6 6 Defense Companies - 2012 (World-Wide excluding China) RankCompanyArms Sales, 2012, ($M)% of Total Sales 1Lockheed Martin (USA)36,00076 2Boeing (USA)27,61034 3BAE Systems (UK)26,85095 4Raytheon (USA)22,50092 5General Dynamics (USA)20,94066 6Northrop Grumman (USA)19,40077 7EADS (trans-European)*15,40021 8United Technologies (USA)13,46022 9Finmeccanica (Italy)12,53057 10L-3 Communications (USA)10,84082 * EADS was renamed Airbus Group in January 2014

7 7 The Scale of Foreign Military Sales (FMS) FMS and Service Procurement: 5 Year Average Average annual procurement budget over last 5 years (FY09-13): #1. $41.6 Billion USAF #2. $39.7 Billion FMS #3 $37.5 Billion U.S. Navy #4 $32.4 Billion U.S. Army #5 $8.4 BillionUSMC If we remove the FY12 Saudi Arabia F-15 sale and recalculate: #1. $41.6 BillionUSAF #2 $37.5 BillionU.S. Navy #3 $33.7 BillionFMS #4 $32.4 BillionU.S. Army #5 $8.4 Billion USMC USMC

8 8 IDEAA Seminar – April 2014 “International Cooperation should be an integral facet of most acquisition programs. Through international cooperation we can increase interoperability with partners and allies, reduce our own costs through economies of scale in production and through partner contributions to development, enhance integrated military capability of coalition forces, and build the relationships we need to implement our strategic goals. International cooperation should always be carefully considered in program planning.” Honorable Frank Kendall

9 9 Proposed JCIDS Change “For capability requirements documents advocating creation of international acquisition programs with allies/partner nations, Sponsors will consider to the greatest extent possible, foreign disclosure review and document structuring to facilitate releasability, in whole or in part, to the nations concerned.” “Other system attributes may include …… physical and operational security needs, including technology security, foreign disclosure, defense exportability features, and anti-tamper.” DRAFT JCIDS Manual April 2014

10 10 Greater Emphasis on International Acquisition “Program management is responsible for integrating international acquisition and exportability considerations into the program’s Acquisition Strategy at each major milestone or decision point. Program management will consider the potential demand and likelihood of cooperative development or production, Direct Commercial Sales, or Foreign Military Sales early in the acquisition planning process; and, where appropriate, program managers will pursue cooperative opportunities ……” Interim DoDI 5000.02 (Enclosure 2, paragraph 10)

11 11 Defense Exportability Activities IOC A C B LRIP Technology Maturation & Risk Reduction. Production & Deployment DRFPRD Materiel Solution Analysis CDD-V CDD ICD Draft CDD Operations & Support Materiel Development Decision FRP Decision 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 May be multiple configurations Exportable Version Depot & Spares Funded by customer Activities Require MDA Approval

12 12 International Acquisition & Exportability (IA&E) Defense Exportability Integration Sales & Transfers Technology Security & Foreign Disclosure International Cooperative Programs New term used in DoDI 5000.02 Detailed new Defense Acquisition Guidebook (DAG) Section Developed

13 13 DAU Curriculum being Reinvented Defense Exportability Integration Sales & Transfers Technology Security & Foreign Disclosure International Cooperative Programs All continuous learning modules updated − CLI 001-003 International Armaments Cooperation − CLI 004-006 Information Exchange Programs − CLI 007 Technology Transfer and Export Control Old courses retired − PMT 202 Multinational Program Management Course − PMT 203 International Security and Technology Transfer/Control New courses developed − ACQ 120 Fundamentals of International Acquisition (Oct 13) − ACQ 130 Fundamentals of Technology Transfer/Security (Oct 13) − ACQ 230 International Acquisition Integration (pilot Aug 14) New “300-level” course planned for FY15 New broader competencies developed and approved AWQI PM Career Field qualification standards prepared

14 B A C Materiel Development Decision Capability Development Document (CDD) Validation Full-Rate Production (FRP) Decision Development Request for Proposals (RFP) Release Decision Initial Operational Capability (IOC) Full Operational Capability (FOC) Materiel Solution Analysis Technology Maturation & Risk Reduction Production & Deployment Engineering & Manufacturing Development Disposal Low-Rate Initial Production (LRIP) OT&E Operations & Support Sustainment International Acquisition and Exportability (IA&E) Considerations Cooperative opportunity analysis Requirements harmonization IA&E assessment Information exchange Cooperative R&D Cooperative prototypes TSFD coordination DEF/Exportability feasibility studies Cooperative EMD Cooperative T&E TSFD approvals DEF/Exportable designs/prototypes Cooperative production Defense sales Coproduction Hybrid programs Exportable version production Cooperative logistics Security Assistance logistics Disposal Exportable version depot & spares International Cooperative Programs Technology Security & Foreign Disclosure Defense Exportability Integration Sales and Transfers IA&E Activities Documentation and Programs Acquisition Strategy Draft CDD Initial PPP RDT&E IEP RDT&E MOU Program-specific MOU Comprehensive PPP TRR ICR&D program CWP Program-specific MOU FCT program PPP & TRR implementation DDL issuance PSI issuance Program-specific MOU FMS LOAs DCS export authorizations PPP & TRR updates DDL updates PSI updates Program-specific MOU ACSAs FMS LOAs DCS follow-on support exports EDA program Acquisition and Cross-Servicing Arrangement (ACSA) Coalition Warfare Program (CWP) Delegation of Disclosure Letter (DDL) Direct Commercial Sales (DCS) Excess Defense Articles (EDA) Foreign Comparative Testing (FCT) Foreign Military Sales (FMS) Defense Exportability Features (DEF) Information Exchange Program (IEP) International Cooperative R&D (ICR&D) Letter of Offer and Acceptance (LOA) Memorandum of Understanding (MOU) Program Protection Plan (PPP) Program Security Instruction (PSI) Technology Release Roadmap (TRR) ICD Draft CDD CPD PDRCDR DAG

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