Course Summary Brief ACQ 340 Advanced International Management Workshop

1. Course Summary Brief ACQ 340 Advanced International Management Workshop

2. DoD Policy The DoD Components shall work with users to define requirements that facilitate, in preferred order: (1) the procurement/modification of commercially available products, services, and technologies, from domestic or international sources, or the development of dual-use technologies; • the additional production/ modification of previously-developed U.S. and/or Allied military systems or equipment; • -------------------------------------------------------------------------------------------- (3) a cooperative development program with one or more Allied nations; (4) a new joint Component or Government Agency development program; or (5) a new DoD Component-unique development program. DoD Directive 5000.01, The Defense Acquisition System, Enclosure 1 Para E1.1.18.

3. Operational To increase military effectiveness through interoperability and partnership with allies and coalition partners Economic To reduce weapons acquisition costs by sharing costs and economies of scale, or avoiding duplication of development efforts with our allies and friends Technical To access the best technology worldwide, and help minimize the capabilities gap with allies and coalition partners Political To strengthen alliances and relationships with other friendly countries Industrial To bolster domestic and allied defense industrial bases Objectives of Armaments Cooperation International Cooperation in Acquisition, Technology and Logistics Handbook, May 2012

4. Building Blocks of IAC International Cooperation in Acquisition, Technology and Logistics Handbook, May 2012

5. Equitability Determination Methods Number of Participants Method Estimated Unit Production Method Benefiting Assets Other Methods NATO Security Investment Program (NSIP) Cost Sharing Options DoD FMR Vol 12, Chapter 9

6. Equitability: A Balancing Act Less In  Less Out Inputs: • Funds • Background Info • Facilities • Equipment • Labor • Test ranges • Technology • CPPs Outputs: • Test Reports • Tech Data • 3rdParty Sales Rights • Use Rights • Equipment • Prototypes • Material More In  More Out • Public law and DoD policy require that international agreements that involve cost sharing be equitable • A participant’s cost share should be proportionately equal to the benefits it receives • Prior to approval of all proposed international agreements, a determination of agreement equitability must be made by the approving DoD officials (DoD FMR Vol 12, Chapter 9)

7. Short Title Partner Nation(s) Proponent Date Description Fiscal Legal Authority Technology Transfer/ Disclosure Contracting IA Generator Deviations U.S. Industrial Base Impact Negotiator Counsel Summary Statement of Intent (SSOI) US Only Document Latest Template September 27, 2016

8. IA Process for MOUs/MOAs Streamlining I Negotiations RAD (Request for Authority to Develop) Memo RFA (Request for Final Approval) Memo • Summary Statement of Intent (SSOI) • Negotiated MOU • Revised SSOI • AECA Sec 27 Certification US Only Document Defense Acquisition Guidebook

9. MOU ProcessRequest for Authority to Develop (RAD) Stage Can Be Iterative; Consultation Smart in Complex Program The Big 3 RAD Approved by Memo RAD/SSOI Initiated by MOU Sponsor Legal Comptroller Security Policy Others Service Service Approval MOU Manager ODIR (IC) Coordinates RAD/SSOI Approval Disapproval 21 Days Meet with Reviewers

10. MOU ProcessDevelopment and Negotiation Stage Development Stage Negotiation Stage Generation of MOU Informal Staffing Start Formal Negotiations Negotiate MOU Negotiated MOU RAD Approved by Memo US Only Document/System DOD IA Generator NATO Uses AC/313 Guidelines

11. Legally Binding Debate • US views International Agreements as legally binding, though not Treaties • Other partners, initially the Commonwealth nations (AU, CA, NZ, GB), view them as politically or morally binding since they are not Treaties • Treaty process very time consuming, so partners wish to avoid that route • Solution was “Chapeau” Approach • One-time Treaty-Level Agreement

12. “Chapeau” Approach • Legally binding provisions under Chapeau Agreement • Liability • Ownership and Use of Information • Third Party Sales and Transfers • Loan of Equipment • Logistic Support • Signed at Treaty Level with AU/CA/NZ/GB • Implemented by: • Reference in MOU text for bilateral agreements • Side letters for multilateral MOUs

13. AT&L International Agreement Legal Authority Overview * This is only applicable if International Cooperative R&D (ICR&D) funds are not used for the procurement * * As part of an international agreement for a cooperative project or program; not as a stand-alone loan

14. Cooperative RD&A Agreements • Program MOUs/MOAs • Covers several phases of a cooperative development (e.g. TMRR, EMD, Production, and equivalent categories in the partner’s system) • Phase MOUs/MOAs • Usually for one phase of a development • Preferred by the US because of the PPBE System • Framework (or Master or Umbrella) MOUs/MOAs (initiate nothing) • Research, Development, Test, and Evaluation (RDT&E) Agreements, Technology Research and Development Project (TRDP) Agreements (with PAs) • Master Information Exchange Agreements (with Annexes)

15. Security Liability and Claims Resolution of Disputes Participation of Additional Nations Amendment, Withdrawal, Termination, Entry into Force, and Duration MOU Non-Issues

16. Types of MOUs/Scope of Project Program Management Cost Sharing Work Sharing/Contractual Arrangements Technology Transfer Intellectual Property Third Party Sales and Transfers MOU Issues

17. IA Drafting Considerations • Standard IA Gen sections are very dependent on one another • Choice of text in one section can impact the choices in other sections • Carefully selected wording in various sections can have a large and important impact on equitability calculations

18. Objectives of Umbrella Agreement Scope of the Umbrella Agreement(6.1, 6.2, 6.3, 6.4) Management of Umbrella Agreement Intellectual Property Provisions Security Provisions Loan of Materials Third Party Sales and Transfers Liabilities and Claims Participation of Additional Nations Customs Duties Dispute Settlement Amendment of Umbrella Duration of Umbrella Termination of Umbrella Objectives of Particular Project Scope of Particular Project Project Management of Particular Project; Contributing Participants Cost Sharing of Particular Project Work Sharing for Particular Project Contractual Arrangements for Particular Project; Acquisition Strategy Duration of Particular Project Termination of Particular Project Framework/Master/Umbrella MOUs Covered in Umbrella MOU Covered in PA Program Dependent Program Independent

19. A C B DAS – IAC Activity Alignment International Cooperation in AT&L Implemented by International Agreement AcqStrat (Initial) AcqStrat (Update) Exploratory Discussions and International Forums Cooperative R&D and International Testing Studies and Exchanges Cooperative Production and Coproduction Cooperative Logistics Cooperative Opportunities discussion required at each MS per Section 2350a, 10 U.S.C.Cooperative Opportunities discussion results are incorporated into the Acquisition Strategy

20. DAS – IAC & Foreign Military Sales (FMS) International Armaments Cooperation (IAC) International Agreements (IAs) Foreign Military Sales USD(AT&L) Oversight LOAs USD (Policy) Oversight