attachment 11 1 united states u.s. foreign military sales process map - iraq planning, definition...
TRANSCRIPT
1Attachment 11
United States
U.S. Foreign Military Sales Process Map - IRAQ
Planning, Definition and Request
Purchaser
Offer and Acceptance Implementation, Execution and Closure
A
LORLetter of Request
LOR
= Key Focus Areas
Offer
LOALetter of Offer and
Acceptance
Acceptance
LOA Signed
US Embassy / SAO
LOA
Implementing Agencies (IA)Army, Air Force, Navy,
Government of Iraq (GOI) GOI (Joint Development-
Iraq Brigade Field Unit Sets)MNSTC-I (Pseudo-Case)
LOA
GOI
DTSDefense
TransportationSystem
STOCK or DLA or SVCs
ProcurementVia DoD
AcquisitionProcess
And Or
NoticeOf
SupplyComplete
GOI
IAImplementing
AgencyIA DFAS
Defense Finance
Accounting Service
Final Bill /
Case Closed
Amendmentor
Modification
Gov to Gov Agreement
TotalPackage
Approach
B
C
C1
C2
Pre-LOR Activities
C3 D E
F
G
H
J
I
K
M
inspection @origin
DLA/DCMA
N
ACA/SDDC
L
PO
Q RS
Purchaser
TPurchaser
2Attachment 11
U.S. Foreign Military Sales Process Map – IRAQ (cont’d)
A - Pre-Letter Of Request (LOR) Activities Assessment: What is needed, pricing, sources (Sustainment or Initial introduction)• Responsibility: Government of Iraq (GOI) (For Iraq Funded)• Responsibility: GOI (For Iraq Funded but jointly developed with MNSTC-I for Iraq Brigade
Field Unit Sets) • Responsibility: MNSTC-I (For USG Funded) / Pseudo-FMS
Note: Specification development starts here. Market surveys performed and existing contracts checked. GOI may request sole sourcing: make/model. USASAC and TACOM help define requirements.
B – Letter Of Request• GOI signs and issues to USG (US Embassy Security Assistance Office (SAO))• GOI signs (For Iraq Brigade Field Unit Sets) and issues to USG (US Embassy SAO)• No GOI signature (For USG Funded)/ MNSTC-I (Pseudo-LOR) forwarded directly to US
Embassy SAO (MNSTC-I)
Note: Transportation is not expressed in the LOR, only the Delivery Term Code (DTC). The DTC for Iraq specifies Origin to Destination. Although USG is responsible, costs should be considered here.
3Attachment 11
U.S. Foreign Military Sales Process Map – IRAQ (cont’d)
C - Letter of Offer and Acceptance Development (LOA) • US Embassy SAO (Receives LOR and performs Country Team Assessment, if required)
C1 - US Embassy SAO forwards LOR to applicable FMS Implementing Agency (IA): Army, Air Force, or Navy
C2 - IA (Army, Air Force, or Navy, depending on item) logs receipt of LOR or Pseudo-LOR and validates it (Requirement, Cost, Sustainment availability, etc.)
• IA assigns Program Manager-PM ( U.S. Army Security Assistance Command (USASAC), Navy International Programs Office, or Air Force Security Assistance Center); PM may then assign a case manager
C3 - PM coordinates with acquisition commands, training commands, etc. (ex. TACOM- Tank & Automotive, AMCOM - Army Aviation and Missile Life Cycle Management Command, JMC - Joint Munitions Command, DLA, etc)
• Details of price, availability, etc. that go into LOA are explored here• The Defense Security Assistance Management System (DSAMS), a software system, is used
by the PM to develop the LOA
Note 1: JCC-I does other contracting for MNSTC-I not FMS (some exceptions) 2: Transportation funding in LOA is normally based on DTC. These programmed
transportation costs are mode neutral. 3. Estimated transportation, packaging, shipping and RFID costs should be included here.
4Attachment 11
U.S. Foreign Military Sales Process Map – IRAQ (cont’d)
D – LOA Coordination • The IA PM coordinates with State Department, DSCA, and Congress, as required
E – LOA Counter-Signature• DSCA case writing division in DSCA Operations Directorate forwards final for LOA
counter signature within DSCA• DSCA Operations Director counter-signs LOA
F – LOA Offer • IA or the IA PM presents LOA to GOI for Acceptance via SAO (MNSTC-I)• For USG funded Pseudo-cases,
GOI acceptance not applicable, IA provides info copy to MNSTC-I
G – LOA Acceptance • GOI signs LOA
This is a contract with the USG• GOI returns signed LOA to USG IA or IA Manager for implementation (with required
initial payment)
5Attachment 11
U.S. Foreign Military Sales Process Map – IRAQ (cont’d)
H – LOA Implementation • IA Manager (e.g., USASAC) provides LOA requirements to Service Acquisition components
or develops requisitions and sends to DLA or GSA
Note: An insufficient number of requisitions causes problems with the TCN; makes ITV difficult. (The TCN is a 17-character data element assigned to control and manage every shipment unit throughout the transportation pipeline.)
I – Stock item• DLA fills from Depot; • Life Cycle Management Command (ex, TACOM) may also fill from depot or withdraw from
the field and re-issue to FMS customer
J – Vendor item• Service Acquisition Commands or DLA procures
K - Commodity Ready for shipment• DLA/DCMA request mode of travel
L - DD-250 or 1348-1 provided by DLA/DCMA (Goes with Shipment)• DCMA does not inspect if commodity value less than $250K; (DFAR 246.402, Gov’t QA)
6Attachment 11
U.S. Foreign Military Sales Process Map – IRAQ (cont’d)
M - Air Clearance Authority/Surface Deployment and Distribution Command • Priority level TP-1, TP-2 or TP 3 assigned by PM during pre-LOR activities• Determines mode of travel after review of DLA/DCMA requirements
N - DLA or DCMA provide Shipping Documents to Vendor/other • RFID, Military Shipment Label, etc
Note: Vendor may be required to provide active RFID tags. Contract should state who is responsible for providing the tags. (Note: U.S. Government will provide RFID tags for shipment originating at Gov’t facilities; otherwise contract language tasking the contractor to provide the tags is required. Either way, the cost of the active RFID tagging will be borne by the Case.)
O – SPOE to SPOD• SDDC ultimately responsible via USC ocean carrier• USC ocean carrier is responsible via contract from origin to destination
Note: Some FMS commodities are being shipped POE to POD rather than Origin to Destination
P – APOE to APOD• AMC responsible; commodity moves via MILAIR• At APOE – Inspection for exterior damage (i.e., damage to box, leaks, etc.), proper documentation, labels, and
markings; no inspection for missing parts or items missing in package; most items palletized
7Attachment 11
U.S. Foreign Military Sales Process Map – IRAQ (cont’d)
Q – Inspection APOD• AMC or MNSTC-I responsible for receipt inspection (ex., for damage, missing parts, etc.)
– Mostly pure pallets (not broken down at APOD), therefore hard to inspect; – No damage issues noted by AMC Baghdad personnel
• GOI-owned materiel moved via MILAIR, but USG not liable, all risk on GOI• Not clear if inspection occurs as part of turnover/mode change to surface transportation
R – Inspection SPOD• Responsibility-receipt inspection (e.g., damage, missing parts, etc.) is USC ocean carrier• GOI-owned materiel moved via ocean carrier; Carrier has some liability• Not clear if inspection occurs as part of turnover. Mode changes to surface transportation.
• S – Surface Transport• Responsibility: CENTCOM - from APOD to destination • Responsibility: SDDC via ocean carrier - from SPOD to destination
8Attachment 11
U.S. Foreign Military Sales Process Map – IRAQ (cont’d)
T – Delivery • Final Inspection, Inventory, etc: Consignee or their USG or military agent • Consignees required to perform inspection; The SAO fills out the DD361, if necessary. Part 1 is
the TDR (deficiency report), and Part 2 is the claim. • A recent development: any monies recovered via a claim go back to the Agency and not the
Treasury. This process only works for shipments going via commercial carrier• A final inspection is performed by USG and GOI• GOI Acceptance (paper DD-250)
Note: 1. No repairs performed; commodity, if damaged or missing parts, is delivered at destination “as is” to GOI 2. GOI is supposedly made aware prior to signing LOA that USG is not responsible for damage or loss and is advised/encouraged during FMS case preparation to obtain commercial insurance if they want to recover materiel costs for in-transit loss or damage. Not sure if this advice is taken. 3. Assumption: GOI has an expectation of receiving damage-free materiel. 4. DoD shipping activities or transportation agencies are to initiate tracer actions or submit claims against carriers on behalf of Customer Countries for loss or damage that occurs during DoD-sponsored transportation (DTR Part II, Appendix E).
9Attachment 11
FMS Case Life Cycle
Pre-LORPre-LORActivitiesActivities
Pre-LORPre-LORActivitiesActivities LORLOR
LORLOR
LO
A
LO
A
Dev
elo
pm
en
tD
eve
lop
me
nt
LO
A
LO
A
Dev
elo
pm
en
tD
eve
lop
me
nt
LO
AL
OA
Co
ord
ina
tion
Co
ord
ina
tion
LO
AL
OA
Co
ord
ina
tion
Co
ord
ina
tion
LO
AL
OA
Co
un
ter-Sig
na
ture
Co
un
ter-Sig
na
ture
LO
AL
OA
Co
un
ter-Sig
na
ture
Co
un
ter-Sig
na
ture
Iraq funded (normal FMS)
• LOR is validated• Resource Analysis• Pol-Mil Analysis • Eligible Customer• Proper Channels
• Disclosure/Releasability• Total Package Approach• Waiver Requirements
End Use Monitoring
AECA, 36(b)AECA, 36(b)NotificationNotification
AECA, 36(b)AECA, 36(b)NotificationNotification
PreparePrepareCountryCountry
TeamTeamMessage*Message*
PreparePrepareCountryCountry
TeamTeamMessage*Message*
* - Required by the SAMM for all SME, but particularly important for those cases requiring Congressional notification.
LOALOAOfferOffer
LOALOAOfferOffer
LO
AL
OA
Acc
ep
tanc
eA
cce
ptan
ce
LO
AL
OA
Acc
ep
tanc
eA
cce
ptan
ce
LO
AL
OA
Imp
lem
enta
tion
Imp
lem
enta
tion
LO
AL
OA
Imp
lem
enta
tion
Imp
lem
enta
tion
CaseCaseExecutionExecution
IncludingIncludingAmendmentsAmendments
& & ModificationsModifications
CaseCaseExecutionExecution
IncludingIncludingAmendmentsAmendments
& & ModificationsModifications
CaseCaseClosureClosure
CaseCaseClosureClosure
Reconciliation & Financial Management Begins Here
• Normal Process– LOA Accepted by
Country– Initial deposit received
• Emergency Process– LOA Accepted by
Country– Initial deposit not
received– CFM Written
authorization required to implement
• LOA is offered, accepted, and implemented
• Case is executed
• Defense articles delivered
• Services performed
• Purchaser billed
• Case is closed
Active Case Reconciliation SSC Reconciliation
Supply & ServicesComplete (SSC)