PDF Document U.S. Foreign Military Sales Process Map


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PDF Document U.S. Foreign Military Sales Process Map

  1. 1. U.S. Foreign Military Sales Process Map - IRAQ United States Planning, Definition and Request Purchaser Offer and Acceptance Implementation, Execution and Closure A LOR Letter of Request LOR = Key Focus Areas Offer LOA Letter 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 DTS Defense Transportation System STOCK or DLA or SVCs Procurement Via DoD Acquisition Process And Or Notice Of Supply Complete GOI IA Implementing Agency IA DFAS Defense Finance Accounting Service Final Bill / Case Closed Amendment or Modification Gov to Gov Agreement Total Package 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 P O Q R S Purchaser T Purchaser
  2. 2. U.S. Foreign Military Sales Process Map – IRAQ (cont’d) <ul><li>A - Pre-Letter Of Request (LOR) Activities </li></ul><ul><li>Assessment: What is needed, pricing, sources (Sustainment or Initial introduction) </li></ul><ul><li>Responsibility: Government of Iraq (GOI) (For Iraq Funded) </li></ul><ul><li>Responsibility: GOI (For Iraq Funded but jointly developed with MNSTC-I for Iraq Brigade Field Unit Sets) </li></ul><ul><li>Responsibility: MNSTC-I (For USG Funded) / Pseudo-FMS </li></ul><ul><li>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. </li></ul><ul><li>B – Letter Of Request </li></ul><ul><li>GOI signs and issues to USG (US Embassy Security Assistance Office (SAO)) </li></ul><ul><li>GOI signs (For Iraq Brigade Field Unit Sets) and issues to USG (US Embassy SAO) </li></ul><ul><li>No GOI signature (For USG Funded)/ MNSTC-I (Pseudo-LOR) forwarded directly to US Embassy SAO (MNSTC-I) </li></ul><ul><li>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. </li></ul>
  3. 3. U.S. Foreign Military Sales Process Map – IRAQ (cont’d) <ul><li>C - Letter of Offer and Acceptance Development (LOA) </li></ul><ul><li>US Embassy SAO (Receives LOR and performs Country Team Assessment, if required) </li></ul><ul><li>C1 - US Embassy SAO forwards LOR to applicable FMS Implementing Agency (IA): Army, Air Force, or Navy </li></ul><ul><li>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.) </li></ul><ul><li>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 </li></ul><ul><li>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) </li></ul><ul><li>Details of price, availability, etc. that go into LOA are explored here </li></ul><ul><li>The Defense Security Assistance Management System ( DSAMS ), a software system, is used by the PM to develop the LOA </li></ul><ul><li>Note 1: JCC-I does other contracting for MNSTC-I not FMS (some exceptions) </li></ul><ul><li>2: Transportation funding in LOA is normally based on DTC. These programmed transportation costs are mode neutral. </li></ul><ul><li>3. Estimated transportation, packaging, shipping and RFID costs should be included here. </li></ul>
  4. 4. U.S. Foreign Military Sales Process Map – IRAQ (cont’d) <ul><li>D – LOA Coordination </li></ul><ul><li>The IA PM coordinates with State Department, DSCA, and Congress, as required </li></ul><ul><li>E – LOA Counter-Signature </li></ul><ul><li>DSCA case writing division in DSCA Operations Directorate forwards final for LOA counter signature within DSCA </li></ul><ul><li>DSCA Operations Director counter-signs LOA </li></ul><ul><li>F – LOA Offer </li></ul><ul><li>IA or the IA PM presents LOA to GOI for Acceptance via SAO (MNSTC-I) </li></ul><ul><li>For USG funded Pseudo-cases, </li></ul><ul><li>GOI acceptance not applicable, </li></ul><ul><ul><li>IA provides info copy to MNSTC-I </li></ul></ul><ul><li>G – LOA Acceptance </li></ul><ul><li>GOI signs LOA </li></ul><ul><ul><ul><li>This is a contract with the USG </li></ul></ul></ul><ul><li>GOI returns signed LOA to USG IA or IA Manager for implementation (with required initial payment) </li></ul>
  5. 5. U.S. Foreign Military Sales Process Map – IRAQ (cont’d) <ul><li>H – LOA Implementation </li></ul><ul><li>IA Manager (e.g., USASAC) provides LOA requirements to Service Acquisition components or develops requisitions and sends to DLA or GSA </li></ul><ul><li>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.) </li></ul><ul><li>I – Stock item </li></ul><ul><li>DLA fills from Depot; </li></ul><ul><li>Life Cycle Management Command (ex, TACOM) may also fill from depot or withdraw from the field and re-issue to FMS customer </li></ul><ul><li>J – Vendor item </li></ul><ul><li>Service Acquisition Commands or DLA procures </li></ul><ul><li>K - Commodity Ready for shipment </li></ul><ul><li>DLA/DCMA request mode of travel </li></ul><ul><li>L - DD-250 or 1348-1 provided by DLA/DCMA (Goes with Shipment) </li></ul><ul><li>DCMA does not inspect if commodity value less than $250K; (DFAR 246.402, Gov’t QA) </li></ul>
  6. 6. U.S. Foreign Military Sales Process Map – IRAQ (cont’d) <ul><li>M - Air Clearance Authority/Surface Deployment and Distribution Command </li></ul><ul><li>Priority level TP-1, TP-2 or TP 3 assigned by PM during pre-LOR activities </li></ul><ul><li>Determines mode of travel after review of DLA/DCMA requirements </li></ul><ul><li>N - DLA or DCMA provide Shipping Documents to Vendor/other </li></ul><ul><li>RFID, Military Shipment Label, etc </li></ul><ul><li>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.) </li></ul><ul><li>O – SPOE to SPOD </li></ul><ul><li>SDDC ultimately responsible via USC ocean carrier </li></ul><ul><li>USC ocean carrier is responsible via contract from origin to destination </li></ul><ul><li>Note: Some FMS commodities are being shipped POE to POD rather than Origin to Destination </li></ul><ul><li>P – APOE to APOD </li></ul><ul><li>AMC responsible; commodity moves via MILAIR </li></ul><ul><li>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 </li></ul>
  7. 7. U.S. Foreign Military Sales Process Map – IRAQ (cont’d) <ul><li>Q – Inspection APOD </li></ul><ul><li>AMC or MNSTC-I responsible for receipt inspection (ex., for damage, missing parts, etc.) </li></ul><ul><ul><li>Mostly pure pallets (not broken down at APOD), therefore hard to inspect; </li></ul></ul><ul><ul><li>No damage issues noted by AMC Baghdad personnel </li></ul></ul><ul><li>GOI-owned materiel moved via MILAIR, but USG not liable, all risk on GOI </li></ul><ul><li>Not clear if inspection occurs as part of turnover/mode change to surface transportation </li></ul><ul><li>R – Inspection SPOD </li></ul><ul><li>Responsibility-receipt inspection (e.g., damage, missing parts, etc.) is USC ocean carrier </li></ul><ul><li>GOI-owned materiel moved via ocean carrier; Carrier has some liability </li></ul><ul><li>Not clear if inspection occurs as part of turnover. Mode changes to surface transportation. </li></ul><ul><li>S – Surface Transport </li></ul><ul><li>Responsibility: CENTCOM - from APOD to destination </li></ul><ul><li>Responsibility: SDDC via ocean carrier - from SPOD to destination </li></ul>
  8. 8. U.S. Foreign Military Sales Process Map – IRAQ (cont’d) <ul><li>T – Delivery </li></ul><ul><li>Final Inspection, Inventory, etc: Consignee or their USG or military agent </li></ul><ul><li>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. </li></ul><ul><li>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 </li></ul><ul><li>A final inspection is performed by USG and GOI </li></ul><ul><li>GOI Acceptance (paper DD-250) </li></ul><ul><li>Note: 1. No repairs performed; commodity, if damaged or missing parts, is delivered at destination “as is” to GOI </li></ul><ul><li>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. </li></ul><ul><li>3. Assumption: GOI has an expectation of receiving damage-free materiel. </li></ul><ul><li>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). </li></ul>
  9. 9. FMS Case Life Cycle Pre-LOR Activities LOR LOA Development LOA Coordination LOA Counter-Signature Iraq funded (normal FMS ) <ul><li>LOR is validated </li></ul><ul><li>Resource Analysis </li></ul><ul><li>Pol-Mil Analysis </li></ul><ul><li>Eligible Customer </li></ul><ul><li>Proper Channels </li></ul><ul><li>Disclosure/Releasability </li></ul><ul><li>Total Package Approach </li></ul><ul><li>Waiver Requirements </li></ul>End Use Monitoring AECA, 36(b) Notification Prepare Country Team Message* * - Required by the SAMM for all SME, but particularly important for those cases requiring Congressional notification. LOA Offer LOA Acceptance LOA Implementation Case Execution Including Amendments & Modifications Case Closure Reconciliation & Financial Management Begins Here <ul><li>Normal Process </li></ul><ul><ul><li>LOA Accepted by Country </li></ul></ul><ul><ul><li>Initial deposit received </li></ul></ul><ul><li>Emergency Process </li></ul><ul><ul><li>LOA Accepted by Country </li></ul></ul><ul><ul><li>Initial deposit not received </li></ul></ul><ul><ul><li>CFM Written authorization required to implement </li></ul></ul><ul><li>LOA is offered, accepted, and implemented </li></ul><ul><li>Case is executed </li></ul><ul><li>Defense articles delivered </li></ul><ul><li>Services performed </li></ul><ul><li>Purchaser billed </li></ul><ul><li>Case is closed </li></ul>Active Case Reconciliation SSC Reconciliation Supply & Services Complete (SSC)