Purpose

1. International Acquisition & Exportability (IA&E) Law, Policy, and Guidance UpdateACQ 380 – Aug 2017

2. Purpose • Provide an update on recent major changes to law, policy, and guidance that affect the way we conduct IA&E activities • National Defense Authorization Acts (NDAAs) • Changes in DoD acquisition policy • Defense Acquisition Guidebook (DAG) update • New DAU developed job aids • Provide ACQ 380 students an updated baseline prior to classroom discussions Note: This presentation is not comprehensive - only covers the major changes

3. Changes in Law FY16 and FY17 National Defense Authorization Acts (NDAAs)

4. Acquisition Strategy Requires an Acquisition Strategy for each major defense acquisition program, each major automated information system, and each major system approved by a milestone decision authority Among other topics - requires the Acquisition Strategy, where appropriate, to consider International involvement, including foreign military sales and cooperative opportunities (Note: the requirement to consider foreign military sales is a new requirement) Codified in 10 USC 2431a (subparagraph (c)(2)(G))and reflected in (DoDI 5000.02. Enclosure 1, page 53) FY16 NDAA (Major Changes)

5. Reorganization of USD(AT&L) Requires reorganizing USD(AT&L) into USD Research and Engineering (R&E) and USD Acquisition & Sustainment (A&S) (Section 901) Effect on international programs and processes TBD Creates new Title 10, Chapter 16 “Security Cooperation” Consolidates Security Cooperation policy, oversight, resource allocation, and budget submission (Section 1241) Legislation supports OSD (Policy) initiative to provide more flexible legal framework to allow better resource management FY17 NDAA Major Changes Search the FY17 NDAA if you want to do a deeper dive on referenced sections

6. Security Cooperation Workforce Development DirectsDoDtocreateaSecurityCooperation (SC) WorkforceDevelopmentProgrammanagedbyDSCA including certification based on training and experience (Section 1250) Supports DSCA desire to improve professionalism of SC workforce SC Workforce will include Defense Acquisition Workforce (DAW) members involved in international programs Working groups established to determine implementation – AT&L and DAU participating with many other organizations FY17 NDAA Major Changes (Con’t)

7. FY17 NDAA Major Changes (Con’t) • FY17 NDAA includes many changes that effect the FMS process - until guidance is published existing policies apply • Feedback from contractors required before providing Price and Availability (P&A) data (Section 1297(b)) • Differences adjudicated before disclosing info to foreign partners • FMS contracts should be Firm Fixed Price (FFP) (Section 830) • Unless foreign partner indicates a preference for a different contract type w/o USG influence - or • Requirement is waived on case-by-case basis when in best interest of U.S. taxpayers Many of these changes were advocated by U.S. Industry

8. FY17 NDAA Major Changes (Con’t) • Accelerated Contracting and Pricing Pilot Program • Pilot program to reform and accelerate contracting and pricing process for full rate production for up to 10 FMS contracts annually until 2020 (Section 830(d)) • Allows for price reasonableness determinations to be made on actual cost and pricing data for same products bought by DoD • Undefinitized Contract Actions (UCAs) definitization period • Extends the 180-day UCA definitization requirement to contracts in support of FMS (Section 811) OSD discussing some of these FMS changes with Congress – watch for DSCA policy guidance – until then existing policies apply!

9. Changes in DoD Policy 2015 DoDI 5000.02, “Operation of the Defense Acquisition System” (including Rev 1 & 2)

10. Discusses exportability and foreign sales for the first time ever Program Management (Enclosure 2) Requires Acquisition Strategies to consider opportunities in the domestic and international markets; foreign disclosure, exportability, technology transfer, and security requirements (para 6.a.(1), page 88) New IA&E section (para 7, page 92) Systems Engineering (Enclosure 3) Program Protection Planning should include planning for exportability and potential foreign involvement. Countermeasures should include anti-tamper, exportability features, security (cyber, operations, information security, personnel, and physical), secure system design, supply chain risk management, software assurance, anti-counterfeit practices, procurement strategies, and other mitigations (para 13.b., page 99) DoDI 5000.02 (2015 Revision) Note: Changes to the 2015 DoDI 5000.02 were published in Jan and Feb 2017

11. Guidance Changes • 2017 Defense Acquisition Guidebook (DAG) Comprehensive Revision • New Anti-Tamper (AT) Implementation Guidance • DAU Developed IA&E Job Aids

12. AT&L published a comprehensive DAG update in Feb 2017; hosted on new www.DAU.mil website Includes more comprehensive guidance on IA&E activities Program Management (Chapter 1) International Acquisition and Exportability Considerations (DAG Chapter 1 (paragraph 4.2.8) Substantial IA&E Supplement provides detailed guidance Links to IA&E Job Support Tools (JSTs) introduced in ACQ 380 course Program Protection (Chapter 9) Exportability Features (DAG Chapter 9 (paragraph 3.2.3) Defense Acquisition Guidebook (DAG) Check out the new ACQ 160 Program Protection Planning Awareness Course

13. Anti-Tamper Technical Implementation Guide (TIG) Version 1.0 – Nov 2016 • Program Manager AT Architecture Responsibilities • Development programs containing Critical Program Information (CPI) will develop and implement an AT architecture to protect the system if it is ever exported (default expectation) • DoD Anti-Tamper Executive Agent’s (ATEA’s) direction is to design with exportability as the goal • Design for Export Alternatives • Deviating from development of an exportable AT architecture might be more appropriate for some programs • Deviations will require AT Service OPR and/or ATEA coordination • AT Service OPR and ATEA will review deviation requests justification and provide written concurrence or non-concurrence to the MDA for the program

14. New DAU IA&E Job Aids • DAG contains links to new DAU-developed Job Support Tools (JSTs) • International Acquisition & Exportability (IA&E) Assessment • Acquisition Strategy - International Considerations • Defense Exportability Integration (under construction) • International Cooperative Programs (ICPs) • Foreign Military Sales (FMS) Systems Acquisition • International Business Planning • JSTs contain information on relevant policies, best practice procedures, and key areas for analysis and evaluation • JSTs can be found on the DAU International Acquisition Management Community of Practice (ICoP)

15. Summary • Changes in Law and DoD policy call for greater consideration of IA&E in developing program Acquisition Strategies • Increased emphasis on program protection planning and exportable Anti-Tamper design • Congressional support for more flexible SC legal framework • SC workforce development/certificationprogram being defined • Congressional interest in “improving” theFMS contracting process • DAG update and new JSTs provide enhanced IA&E guidance Please bring your observations and questions to the ACQ 380 classroom!