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Sales and Transfers

Defense international acquisition Sales and Transfers include several types of Security Cooperation activities including Foreign Military Sales (FMS)), Direct Commercial Sales (DCS), Acquisition and Cross Servicing Agreements (ACSAs), and Building Partnership Capacity (often referred to as pseudo-FMS) activities. Click on the topics listed below to learn more about efforts in some of these areas. 

Acquisition and Cross Servicing Agreements (ACSAs)

Building Partnership Capacity (BPC)

Security Assistance

DAU Job Support Tools (JSTs)

The DAU/Defense Systems Management College-International (DSMC-I) faculty has developed four JSTs that are specifically designed to assist Program Management Offices (PMOs) and their supporting Integrated Product Team (IPT) personnel in the identification, assessment, development, negotiation, and implementation of Security Assistance-related defense acquisition workforce efforts:

- Our International Acquisition and Exportability (IA&E) Assessment JST and companion Acquisition Strategy – International Considerations JST focus on PMO/IPT level Security Assistance & Foreign Military Sales (FMS)-related planning and implementation efforts.

- Our FMS - Systems Acquisition JST provides practical advice on how to integrate FMS systems acquisition-related activities at the PMO/IPT level.

- Our International Business Planning JST addresses PMO/IPT-level Security Cooperation planning and implementation considerations for programs with substantial ongoing/anticipated Sales and Transfers-related activity.

Performance Learning Support

Upon request, DSMC-International is also available to provide Mission Assistance support on a space-available basis to DoD Component International Program Organizations (IPOs) and PMOs/IPTs involved in Sales and Transfers efforts.  DAU does not charge DoD Components for faculty and staff time spent on Mission Assistance support efforts; it only asks that the organization requesting the assistance fund any travel or other incidental costs involved.  Contact DSMC-I at the following e-mail address -- InternationalHelp@dau.mil -- if your organization is interested in obtaining Sales and Transfers-related Mission Assistance support.


  
  
  
Summary Description
  
  
  
DSCA Memo Pre-LOA Acq Planning Activities (Aug 19).pdfFMS Acq Planning Activities -- DSCA Policy Memo 19-10 (Jul 19)
  
The Defense Security Cooperation Agency (DSCA) published Foreign Military Sales (FMS) Acquisition Planning Activities Policy Memo 19-10 (SAMM E-Change 386) on July 31, 2019.

E-Change 386 updates Chapter 6 of the Security Assistance Management Manual (SAMM) to allow DoD Component FMS Implementing Agencies (IAs) to conduct certain FMS Administrative Surcharge-funded acquisition planning activities after offering an LOA, rather than waiting until the LOA is implemented in certain circumstances.
8/29/2019 3:41 PMReference
(L04) Policy Update Overview 05032019.pptxACQ 380 IA&E Policy Update (Jun 19)
  
This ACQ 380 International Acquisition & Exportability (IA&E) Policy Update provides a comprehensive overview of recent changes to U.S. Government/DoD laws, regulations, and policies that affect the DoD International Acquisition Career Path (IACP) and USG Security Cooperation communities.
6/26/2019 9:04 AMLearning Material
DoD Int’l Acquisition Transactions -- DAU Overview (Aug 19) FINAL.pdfDAU Int'l Acquisition Transactions Overview (Aug 19)
  
This Defense Acquisition University (DAU) presentation provides an overview of the primary types or forms of DoD international acquisition transactions that are established with allied/friendly nations and international organizations.
9/1/2019 8:56 PMPresentation
State Dept ITAR 126.4 REV -- 4-19-19.pdfState Department ITAR 126.4 Exemption Revision (Apr 19)
  
The State Department published a long-awaited International Traffic in Arms Regulations (ITAR) 126.4 revision in the Federal Register on April 19. 2019.

The previous version ITAR 126.4 was most often used as a DoD International Cooperative Program (ICP) ITAR exemption based on the DoD ITAR Exemption Guidelines issued by the Defense Technology Security Administration (DTSA) in 2004/2007 (Note:  these DTSA ITAR Exemption Guidelines memos are available on this ICOP website.)

In addition to updating and clarifying several areas regarding use of ITAR 126.4 for ICP-related ITAR exemptions, the revised version of ITAR 126.4 also addresses non-FMS Security Cooperation efforts as well as the U.S. Government Customer and Border Protection (CBP) reporting requirements for the use of this exemption.

Consult your DoD Component International Program Organization (IPO) or local Foreign Disclosure Officer (FDO) regarding potential use of the revised ITAR 126.4 provisions in support of your Int'l Acquisition program's implementation.


4/25/2019 10:41 AMReference
Conventional Arms Transfer Policy Implementation Plan Update (Nov 18).aspxUSG Conventional Arms Transfer Policy (CAT) Implementation Plan Update (Nov 18)
  
The USG CAT Policy Implementation Plan addresses the increasingly competitive global arms sales environment described in the National Security Strategy, and seeks to modernize the U.S. Government’s policies and processes regarding arms transfers.

This updated Dept of State Fact Sheet describes three ongoing CAT Policy Implementation Plan Lines of Effort (LOE) designed to achieve USG CAT Policy goals. Each LOE is supported by a number of tasks that are currently being pursued by the relevant U.S. Government agencies, including USD(A&S), USD(R&E) and the Defense Acquisition Workforce.
11/9/2018 2:15 PMReport
DFARS Final Rule on TINA Exemption for FMS Offset Costs 2018-14045 (6-29-18).pdfDFARS Final Rule on TINA Exemption for FMS Indirect Offsets (Jun 18)
  
The Defense Federal Acquisition Regulations Supplement (DFARS) Final Rule that exempts Foreign Military Sales (FMS) from the Truth in Negotiations Act (TINA) requirements in U.S. law was published on June 29, 2018 in the Federal Register.
7/17/2018 6:19 PMReference
USA001568-18-DPAP (Class Deviation FMS KR Type) - Jun 18.pdfSection 830 FMS Firm Fixed Price Contracting - Class Deviation - DPAP (Jun 18)
  
This Office of SecDef/Acquisition & Sustainment/Defense Procurement & Acquisition Policy (DPAP) Memo of June 28, 2018 provides guidance to the DoD acquisition workforce on the implementation of Section 830 of the FY 2017 National Defense Authorization Act (NDAA) regarding Foreign Military Sales (FMS) Firm Fixed Price (FFP) contracting.

This DPAP Memo authorizes deviations from the Section 830 FMS FFP contracting guidance in two circumstances:

1) The FMS customer nation requests use of a different contract type in writing (which, in normal practice, would most likely be included in the FMS Letter of Request (LOR)).

2) It would be in the best interest of the U.S. and U.S. taxpayers as determined by the "Chief of the Contracting Office" based this DPAP Memo and DFARS PGI 216.403-l(l)(ii)(B) (e.g.., in situations where U.S. and FMS contracting requirements are being combined in a U.S. contracting action using contract type other than FFP to achieve optimal performance, cost, or schedule outcomes for the U.S.)  OSD/A&S/DPAP staff has confirmed that the "Chiefs" of local commands' Contracting Offices within the DoD Components (e.g., the various Army, Navy, and AF acquisition commands that routinely award US and FMS contracts) are authorized to make such determinations.

For further information regarding implementation of this guidance, consult the OSD/A&S/DPAP website, your DoD Component Contract Policy organization, and/or your DoD International Program Organization (IPO) .
7/3/2018 5:56 PMReference
USA001568-18-DPAP (SS KR Negotiations US - FMS) - Jun 18.pdfSole Source Contract Negotiations (US and FMS) -DPAP (Jun 18)
  
This Office of SecDef/Acquisition & Sustainment/Defense Procurement & Acquisition Policy (DPAP) Memo of June 28, 2018 provides guidance to the DoD acquisition workforce on U.S. 'domestic' and Foreign Military Sales (FMS) sole source contracting efforts.

For further information regarding implementation of this guidance, consult the OSD/A&S/DPAP website and/or your DoD Component Contract Policy organization.
7/3/2018 3:44 PMReference
RAND RPV Exports Report Announcement (June 18).aspxRAND Report -- Proliferation of Certain Remotely Piloted Aircraft Systems (Jun 18)
  
RAND recently announced publication of a report on the "Assessment of the Proliferation of Certain Remotely Piloted Aircraft Systems" (Response to Section 1276 of the National Defense Authorization Act for Fiscal Year 2017) on its website. 

This RAND Report explores five (5) research questions on RPV (aka Unmanned Aerial System (UAS) or "drone") proliferation in the global defense market, including the impact of U.S. Goverment (USG) interpretation of Missile Technology Control Regime (MTCR) requirements and current USG export controls on RPV/UAS sales and exports.
6/20/2018 5:18 PMReport
FY18 NDAA Floor Summary Draft vFinal_0 p16.pdfFY18 NDAA Conference Report Summary (Nov 17)
  
Fiscal Year 2018 National Defense Authorization Act (NDAA) Conference Committee Report Summary published on Nov 9, 2017.  The FY 2018 NDAA contains additional provisions on Foreign Military Sales (FMS) and Security Cooperation 'reform' on page 16.  One of the provisions would require DoD to "establish specific milestones and standard timelines" for future FMS transactions.  The Conference Committee version of the FY 18 NDAA is awaiting Congressional and White House action before it becomes law.
11/15/2017 9:45 PMReport
FY 2018 NDAA - CRPT-115hrpt404 11-14-17.pdfFY 18 NDAA - Conference Cmte Version - 11-14-17
  
Fiscal Year 2018 National Defense Authorization Act (NDAA) Conference Committee version text of Nov 14, 2017.
  
- See Section 887 for a new provision on NOTIONAL MILESTONES AND STANDARD TIMELINES FOR CONTRACTS FOR FOREIGN MILITARY SALES.
- There are a number of provisions related to country/region specific Security Cooperation activities, including a new provision in Section 1259A. on NORMALIZING THE TRANSFER OF DEFENSE ARTICLES AND DEFENSE SERVICES TO TAIWAN.
- There is also a new provision, Section 1268., COMPTROLLER GENERAL OF THE UNITED STATES REPORT ON PRICING AND AVAILABILITY WITH RESPECT TO FOREIGN MILITARY SALES that establishes new Congressional reporting requirements in this area

This Conference Committee version of the FY 18 NDAA is awaiting Congressional and White House action before it becomes law.
11/15/2017 9:44 PMReference
USA000140-19 TAB A USD(AS) Cybersecurity in KRs 1-21-19.pdfUSD(A&S) Memo on Cybersecurity in DoD Contracts (Jan 19)
  
This Under Secretary of Defense (Acquisition & Sustainment) Memo of Jan 21. 2019 provides updated guidance to the DoD acquisition workforce on incorporation and implementation of DoD cybersecurity requirements in DoD contracts with private sector entities.  It assigns DCMA primary responsibility for oversight and validation of contractor compliance, noting that (in specific circumstances) other DoD Component organizations may also have oversight and validation responsibilities in contractor cybersecurity oversight.
3/1/2019 9:15 PMReference
USA003377-18 ASD(A) Cyber Security in DoD KRs 12-17-18.pdfASD(A) Memo on Cybersecurity in DoD Contracts (Dec 18)
  
This Assistant Secretary of Defense (Acquisition) Memo of Dec 17, 2018 provides updated guidance to the DoD acquisition workforce on incorporation and implementation of DoD cybersecurity requirements in DoD contracts with private sector entities.  This memo provides guidance and a Statement of Work (SOW) template that should be used by the PM/IPT and Contracting Officer to implement OUSD(A&S) Defense Pricing and Contracting guidance issued on Nov 6, 2018 re: how to assess compliance and ensure the enhanced cybersecurity protections required by DFARS 252.204-7012 are implemented by DoD contractors.
3/1/2019 9:14 PMReference
VAT Impact - Defense Acq Mag Article (Dec 18).aspxVAT Impact on DoD Contracting (Article) - Dec 18
  
DoD routinely awards contracts that expend a substantial amount of money (U.S. and foreign) in foreign countries on products and services that support DoD and international acquisition efforts.

This Defense Acquisition Magazine article provides useful advice on obtaining foreign Value Added Tax (VAT) exemptions to save/avoid unnecessary costs to the U.S. taxpayer and (in some cases) our allied/friendly nation partners/customers.
1/3/2019 5:25 PMLearning Material
Conventional Arms Transfer (CAT) Policy Implementation Plan (Jul 18).aspxConventional Arms Transfer (CAT) Policy Implementation Plan (Jul 2018)
  
The U.S. Department of State published a summary of the U.S. Government (USG) Conventional Arms Transfer (CAT) Policy Implementation Plan  on July 16, 2018.  CAT Policy implementation efforts are based on overall lines of effort and seven specific task areas, including Defense Exportability and USG support to Non-Standard and Non-Program of Record (POR) defense sales involving U.S. industry.
10/8/2018 5:29 PMReference
Conventional Arms Transfer Policy (Apr 2018).aspxUSG Conventional Arms Transfer (CAT) Policy (Apr 2018)
  
A revised  U.S. Government  Conventional Arms Transfer (CAT) Policy was issued by the White House on April 19, 2018.  The CAT Policy governs sale/transfer of U.S..-origin defense and dual use articles, services,, and information.  This revision places greater emphasis on USG/DoD support to U.S. industry in global defense acquisition cooperation and sales efforts.
10/8/2018 5:27 PMReference
RAND Report on SC Workforce Development  (2018).aspxRAND Report - Security Coop Workforce Development (2018)
  
This RAND Report entitled "Career Development for the Department of Defense Security Cooperation Workforce" explores several important research questions including:

1) Who belongs in the security cooperation workforce?
2) Which competencies are needed in the security cooperation workforce?
3) How can the security workforce be divided into different job families?
4) How much experience might be required at various stages of career development in the workforce?
7/6/2018 4:04 PMReport
DSCA FMS Video.aspxDSCA FMS Video (April 2018)
  
Link to Defense Security Cooperation Agency (DSCA) Website which contains a new DSCA Foreign Military Sales (FMS) Video, published on YouTube, thar provides a short (12 min) overview of FMS by LTG Hooper (Director, DSCA).   From a DAU perspective, the FMS overview provided in the video is quite useful.  However, the Security Cooperation (SC) matters discussed in the video are primarly oriented towards DSCA actvities in this area rather presenting a whole of Government/DoD perspective on the SC efforts.
4/2/2018 4:19 PMPresentation
ATL DPAP Sec 830 Pilot White Paper on FMS Pilot Programs - Aug 17.pdfAT&L DPAP White Paper on FMS Pilot Programs (Aug 17)
  
Office of Under SecDef Acquisition, Technology & Logistics (AT&L) Defense Procurement and Acquisition Policy (DPAP) White Paper on Fiscal Year 2017 NDAA Section 830 Pilot Program legislative authority for implementation of Foreign Military Sales (FMS) Pilot Program accelerated Full Rate Production (FRP) contracting arrangements.
1/8/2018 5:30 PMReference
Section 830 Brief - FFP for FMS - 1 Aug 2017 (Dir DPAP approved).PPTDPAP Briefing on FY 2017 NDAA Section 830 (FFP Contracts for FMS)
  
Per this Office of SecDef (AT&L) Defense Procurement and Acquisition Policy (DPAP) briefing (Aug 2017), DoD Components should know this requirement exists, but wait for an interim or final DFARS rule to initiate action.  In the interim, DoD acquisition programs shuold be executing contracts or choosing a contract type supporting FMS that they would not otherwise execute on behalf of DoD's own requirements.  Sound business clearance processes and file documentation should be now and in the future, key requirements regarding implementing sec 830.
12/2/2017 4:27 PMPresentation
Sec 830 Req to use firm fixed-price contracts for foreign military from CRPT-114hrpt840  FY 17 NDAA.pdfFY 2017 NDAA Section 830 - Use of FFP for FMS Contracts
  
Per Office of SecDef (AT&L) Defense Procurement and Acquisition Policy (DPAP), DoD Components should know this requirement exists, but wait for an interim or final DFARS rule to initiate action.  In the interim, DoD acquisition programs shuold be executing contracts or choosing a contract type supporting FMS that they would not otherwise execute on behalf of DoD's own requirements.  Sound business clearance processes and file documentation should be now and in the future, key requirements regarding implementing sec 830.
12/2/2017 4:21 PMReference
Offsets 05022017.pptxDAU ACQ 380 Chart on FMS-related Offsets
  
Defense Acquisition University (DAU) ACQ 380 Lesson Chart on Foreign Military Sales (FMS)-related Offset contracting policies and practices (current and pending).
12/1/2017 9:25 AMReference
ACSA 101 22 May 12 short version.pptxACSA 101 - Joint Staff (J4) Presentation May 12
  
Joint Staff J4 Presentation on DoD's Acquisition and Cross Servicing Agreement (ACSA) program (current as of May 2012).  This presentation provides the Defense Acquisition Workforce, DoD/USG personnel, and supporting industry with and overview of the policies and procedures that apply to DoD's ACSA program.
10/16/2017 1:46 PMPresentation
ACSA countriesorganizations 18 Dec 14.pptxACSA Countries and Organizations List (Dec 2014)
  
Listing and graphic representation of the countries and organizations involved in DoD's Acquisition and Cross Servicing Agreement (ACSA) program (current as of December 2014).  ACSA program transactions are implemented by the Joint Staff and Combatant Commanders.
10/16/2017 1:31 PMReference
FY17_18 NDAA FMS Items (Nov 18).pdfFY 17 & FY 18 NDAA FMS Topics -- Update (Nov 18)
  
These two ACQ 380 presentation charts summarize the FY 2017 and 2018 National Defense Authorization Act (NDAA) legislative changes in the Foreign Military Sales (FMS) area and the U.S. Government/DoD implementation policies that have been issued since these NDAAs were passed by Congress and signed into law by the President
11/20/2018 3:22 PMLearning Material
eSAMM Building Partner Capacity (Ch 15).aspxeSAMM Building Partner Capacity Programs (Chapter 15)
  
Defense Security Cooperation Agency (DSCA) electronic Security Assistance Management Manual (eSAMM) Chapter 15 on planning and implementing DoD Building Partner Capacity (BPC) Programs
10/23/2017 2:20 PMReference
DSCA eSAMM Website.aspxDoD 5105.38-M Chapter 4 - Foreign Military Sales Program
  
The Foreign Military Sales (FMS) Program is that part of Security Assistance authorized by the Arms Export Control Act (AECA) and conducted using formal contracts or agreements between the United States Government (USG) and an authorized foreign purchaser. These contracts, called Letters of Offer and Acceptance (LOAs), are signed by both the USG and the purchasing Government or international organization; and provide for the sale of defense articles and/or defense services (to include training) usually from Department of Defense (DoD) stocks or through purchase under DoD-managed contracts. As with all Security Assistance, the FMS program supports United States (U.S.) foreign policy and national security goals and objectives.
10/17/2017 3:42 PMReference
DoDI 4151.21.aspxDoDI 4151.21 -- Public-Private Partnerships for Product Support
  
This DoD Instruction provides acquisition policy regarding use of Public-Private Partnerships( PPPs) to provide Product Support to U.S. and allied/friendly nation operators of U.S. systems.  While this DoDI focuses primarily on the U.S. domestic aspects of PPPs used for Product Support, experience has shown that this guidance is equally applicable to establish and use of PPPs that provide Product Support to allied/friendly nation International Cooperative Program (ICP) Memorandum of Understanding (MOU) partners and Foreign Military Sales/Direct Commercial Sales customers.
10/17/2017 3:05 PMReference
DoDD 2010.9.aspxDoDD 2010.9 - Acquisition and Cross Servicing Agreements
  
DoD Directive 2010.9 on Acquisition and Cross Servicing Agreements (ACSAs).  This DoDD provides the Defense Acquisition Workforce, DoD/USG personnel, and supporting industry with SecDef  policy on DoD's ACSA program.
10/17/2017 2:45 PMReference
CJCSI 2120.01D.aspxCJCSI 2120.01D - Acquisition and Cross Servicing Agreements
  
Chairman Joint Chiefs of Staff Instruction 2120.01D on Acquisition and Cross Servicing Agreement (ACSA) policies and procedures provides the Defense Acquisition Workforce, DoD/USG personnel, and supporting industry with Joint Staff policies and procedures on DoD's ACSA program.
10/17/2017 2:43 PMReference
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