PERU July 2009

1. PERU July 2009

2. Customer Tools for Effective Case Management SAM-I, 5/1/09

3. Customer Tools for Effective Case Management • LOR & Customer Participation in the Process • FMS Transparency • FMS Reviews • Financial Management Reviews • Customer Advocate Groups • Personal Contacts-Communicate! • Staying Informed

4. Support Equipment Facilities Follow on Support Publications Services FMS Case Reviews Training DOD/Contractor Services Site Survey Financial Considerations Funding Source Payment Schedule/Initial deposit Financial Waivers Special Considerations Memorandum of Understanding (MOU) Offsets Commercial Negotiations Special Reports Interoperability Identification Information Purpose: P&A- Price & Availability LOA-Letter of Offer & Acceptance Lease Purchaser Pre-negotiations Transparency Acceptance Time Frame International Solicitation Major Item Considerations Standard Model Quantity Unique Configuration Delivery Timeframe Transportation Warranties Sole Source Support Considerations Operations Concept Maintenance Concept Supply Concept Initial Spares Letter of Request Checklist Total Package Approach LORMODULE

6. Need LOR preparation help? • DISAM’s LOR Writing Guide • USASAC’S Commodity Specific Checklists (Int’l Customers tab) • AFSAC On-line • Implementing Agency (IA)- Country Program Director (CPD) USASAC-U.S. Army Security Assistance Center AFSAC-Air Force Security Assistance Center

7. Support Equipment Facilities Follow on Support Publications Services FMS Case Reviews Training DOD/Contractor Services Site Survey Financial Considerations Funding Source Payment Schedule/Initial deposit Financial Waivers Special Considerations Memorandum of Understanding (MOU) Offsets Commercial Negotiations Special Reports Interoperability Identification Information Purpose: P&A- Price & Availability LOA-Letter of Offer & Acceptance Lease Purchaser Pre-negotiations Transparency Acceptance Time Frame International Solicitation Major Item Considerations Standard Model Quantity Unique Configuration Delivery Timeframe Transportation Warranties Sole Source Support Considerations Operations Concept Maintenance Concept Supply Concept Initial Spares Letter of Request Checklist Total Package Approach Customer Budget Limitations ??? DISAMLOR Preparation Guide

8. Typical DOD System Life-Cycle Cost Life-Cycle Cost Operation and Support System Acquisition Production System Research and Development 60% 30% 10% 0 I II III Milestones

9. AT&L Knowledge Sharing System https://akss.dau.mil/Default.aspx

10. Transparency in the FMS Process? • LOA in Development • LOA Estimated Line Item Costs • LOA Line Item Services • LOA Contracting Process

11. Purchaser Participation in the LOA Preparation ProcessSAMM C5.4.6.2 • Purchaser involvement early on in the LOA development process is essential to ensure the final document provides the best “fit” for their requirements. • Purchasers should be encouraged to attend meetings and receive correspondence designed to clarify LOR information. • As the development of the LOA progresses, there are many instances where purchaser participation and input are necessary. • Any unique notes or conditions being considered may be provided to the purchaser for advance review to ensure these special case and/or program-unique needs are addressed

12. Transparency in the FMS Process? • LOA in Development • LOA Estimated Line Item Costs • LOA Line Item Services • LOA Contracting Process

13. LOA Estimated Line Item CostsDSAMS Report # 69

14. Transparency in the FMS Process? • LOA in Development • LOA Estimated Line Item Costs • LOA Line Item Services • LOA Contracting Process

15. Standard Level of Service • “Standard Level of Service” - What it is • Administrative Surcharge-funded activities necessary to write, implement, manage, execute, oversee, and close a Foreign Military Sales (FMS) or FMS-like case • An amount of effort estimated up-front and well-documented in the case - with changes made as the program changes/warrants • “Standard Level of Service” - What it is not • It is not the same number of reviews, reports, managers, etc. for every FMS or FMS-like case that is implemented • It is not the same amount of effort expended on each FMS or FMS-like case that is implemented

16. SAMM Table C5.T6. - Manpower Matrix Funding Source(Total Value for services, includes per diem, salary, travel) 1 2 Eliminates use of Program Management Lines Identifies thresholds for when specific work must be case-funded 3 Identifies O&M-funded activities that CANNOT be funded by either FMS Admin or FMS Case Requires “incremental” costing for certain activities that exceed the “Standard Level of Service” 4

17. Manpower & Travel Data Sheet(MTDS) SAMM C9.F1 • LOA service lines require justification to DSCA as part of the counter signature process • MTDS correlates services to the manpower matrix in SAMM C5.T6

18. LOA Manpower ServicesManpower Travel Data Worksheet- MTDS

19. Transparency in the FMS Process? • LOA in Development • LOA Estimated Line Item Costs • LOA Line Item Services • LOA Contracting Process

20. Customer In Contract ProcessDFARS 225.7304, SAMM C.6.3 • FMS Customer may: • Request sole source prime and subcontractors • Propose additional sources but cannot eliminate and specific source • At contracting officer discretion, customer can participate in discussions with industry on: • Technical Specifications • Delivery Schedules • Price/Performance Tradeoffs • Other Requirements Unique to FMS Purchaser

21. Customer Tools for Effective Case Management Security Assistance Reviews

22. Security Assistance Reviews • Bilats- Bi-lateral discussions • SAWG-Security Assistance Working Group • SAR-Security Assistance Review • PMR- Program Management Review • FMR-Financial Management Review • CMR-Country Management Review • SAMR-Security Assistance Management Review • LMR-Logistics Management Review

23. FMS REVIEW POLICY TENETSDSCA 00-19, 02-48 & SAMM C6.5 Review Agenda Topics • Program/Delivery Status • Case Closure • Contract Status • Discrepancy Status • Billing Issues • Previous Review Action Items • Financial Status • Commitment, obligations, expenditures • Payment Schedules • Unprogrammed funds • Current Issues

24. FMS REVIEW POLICY TENETSDSCA 00-19, 02-48 & SAMM C6.5Planning for a Review! • Specify types of review and appropriate scope of each. (Policy/Country/Service/Program/Internal reviews) • Each review must add value & have clear objectives and deliverables • Identify review objectives & goals and attendees • Country, SAO, Contractor, DFAS, DSCA, MILDEP • Specify USG review attendee responsibilities: • have distinct and active role • be fully prepared • be knowledgeable • be empowered to make on-the-spot decisions • Reduce the number of reviews • Usually yearly, • Must be case funded if more then one a year • PMR’s require mandatory LOA note & schedule

29. Customer Tools for Effective Case Management DSCA Financial Management Review Program (FMR)

30. Financial Management Reviews (FMRs)SAMM C9.14 • Chaired by DSCA • Tri-Service/MND level • Objective: Review current and forecasted posture of purchasers FMS program. • Reconcile financial records. Review case financial records. Identify cases for intensive financial management. • SAMM Table C9.F7- provides mandatory format for a FMR preparation • Format: • Executive Session -- general financial issues, macro FMS program financial status, FMS reinvention, updated policies, readout of current financial topics • Case-Level Session -- review of open FMS cases • Side Meetings -focus on logistical, programmatic, operational issues. • Duration: usually, one week • Frequency: As required • Location: usually alternates between DSCA and host country

31. Customer Tools for Effective Case Management Know your Customer Advocate Group! • FPG-Foreign Procurement Group • ICUG-Int’l Customers Users Group • Defense MOU Attachés Group

32. Foreign Procurement Group Charter • 1. The Foreign Procurement Group (FPG)-The customer focal point, recognized by the DOD FMS community, as part of the Deputy Secretary of Defense's initiative for FMS re-engineering. • The FMS customer focal point to consider DOD proposals for changes in FMS arrangements and procedures. • It will additionally consider and propose to DOD other changes to FMS considered of benefit to the customer community • Countries participating in the FPG will be free to pursue, separately with the DOD • 2. The FPG will hold meeting about once a month with DSCA and other key S.A. organizations. • 3. Membership will be open to all members of the MOU Attachés Group, and to other countries as may be agreed by existing members of the FPG. Representatives will be knowledgeable and experienced FMS practitioners able to contribute to the FPG's deliberations and conclusions from their national view point and in pursuit of improvements of general benefit.

33. FPG Top 10 Priorities • -Transparency in FMS Charges/Standard Level of Service • -Other Admin Surcharge charges • -Transparency in Delivery listing • -Transportation • -FMS as a commercial alternative/quantify and define the value added of FMS • -Annual Authorizations/Blanket Approvals • -Country Specific cost and schedule performance measures • -Payment Schedules • -Commercial Accounts • -Access to Contracting Documentation • -Processing Times FPG priority details and meeting minutes are on the SCIP “Partner Info” tab

34. Argentina Australia Austria Belgium Brazil Canada Chile Denmark Egypt Finland France Germany Greece Indonesia Israel Italy Japan Korea Netherlands New Zealand Norway Pakistan Poland Portugal Singapore Spain Sweden Switzerland Taiwan Turkey UK Yemen FPG Member Nations May 2009

35. FPG Points of Contact • Chairman – Dr Jennifer Stewart (Canada) • Secretary – SQNLDR Stephen Hall stephen.hall@NZDF.mil.nz

36. International Customer User Group (ICUG) • Comprised of customer ILCO representatives • Primary responsibilities: • Enhance the FMS logistical process • Provide unified customer position FMS issues and computer systems development/ enhancements Receive & disseminate automation information • Meets on a quarterly basis; at least one joint annual meeting with the FPG

37. International Customer User Group (ICUG) Priorities • Develop tri-service solution for SCIP access to EMALL & EFTS • Integration Issues with SCES • Develop formal list of ICUG objectives

38. INTERNATIONAL CUSTOMER USER GROUP (ICUG) Mr. Larry Glasco DLA J3/J4 Director of Logistics Operations and Readiness 8725 John J. Kingman Road Fort Belvoir, Virginia 22060-6221 July 09, 2008 ICUG - FREIGHT INSPECTION AND TRANSPORT CONCERNS Sir, The International Customer Users Group (ICUG) exists to enhance the relationship and communication between DLA, Defense Security Cooperation Agency (DSCA) and the Foreign Military communities from all three International Logistics Control Offices (LCO’s). The membership, representing 33 countries, meets on a quarterly basis to review and discuss ongoing issues and initiatives affecting Foreign Military Sales (FMS) logistics processes. The ICUG members provide liaison with DSCA, the FMS Management Information Systems (MIS) Program Managers and their contractor support staff on behalf of their fellow ILCO customer representatives and in-country counterparts. The primary responsibility of ICUG members is to receive and disseminate MIS and logistics-related information and provide appropriate feedback to DSCA. During our meeting of 3-4 June 2008, ICUG members expressed concerns over a recent DLA policy to delay items destined to foreign customers, in order for DLA to effect secondary inspections on outgoing shipments. This policy is causing significant delays on high priority (MICAP/NMCS and Priority 3) demands being shipped to our soldiers (many serving in-theatre on the Global War on Terrorism (GWOT)). While we understand the necessity for oversight, the lack of an announced policy is causing consternation with regards to how long this policy will be in place. The question being submitted from the ICUG Membership is: Would it be possible for the Foreign Military Customer to be made formally aware of the new DLA policy which implemented a secondary inspection regime, and how long will this policy be in place? Secondly, is there any defined metric outlining the new shipment timelines so that we may better advise our countries on whether or not FMS requisitioning through DLA remains a viable option on high priority requisitions (versus direct commercial). Lastly, would it be possible to provide information on the inspection timeframe and metrics to show the progress for the MICAP/NMCS and high priorities? Your review and consideration of this request for clarification is greatly appreciated by the ICUG Membership. Regards, Major Chris Dann (Canadian Liaison Officer) Chairperson - International Customer User Group 700 Robbins Avenue, Philadelphia, PA 19111

39. Customer Tools for Effective Case Management Personal Contacts- Networking & Communication

40. Customer Tools for Effective Case Management Personal Contacts • Know who they are & where they are: • SAFR/FLO • Country Representative at Systems Command • SCO/ODC/OMC • Case Manager • US Country Program Director (CPD) • Know their roles and responsibilities, know what they can do for you-or not

41. Customer Tools for Effective Case Management • Communicate Effectively • Messages & Info. Addresses • Information Overload-be concise • Subject Line • Talk to DSCA (when necessary!) CPD or CFD

42. Continual Improvement-the customer is part of that process!DSCA Strategic Plan Goal #4* DEPSECDEF Guidance directs “how” – CPI through Lean Six Sigma *Ref: DSCA Strategic Plan 2006-2011 dtd 13 Feb 2006

43. Tell DSCA what your thinking!!!!

44. DSCA Director Guidance Communicate your Ideas to DSCA ! • Establish a Continuous Process Improvement (CPI) capability at DSCA using Lean Six Sigma (LSS) methodology • Leverage the improvement efforts underway within DSCA and across DoD – phased accelerated deployment • Replicate best practices and project work from MILDEP LSS implementations • Synchronize with OSD CPI / LSS requirements and DoD Performance Plan • Identify strategic performance gaps (e.g. FMS cold war process vs. GWOT requirements) across functions, organizations, and command structures and recommend solutions to close the gap • This isn’t the next “thing” – it will help change our culture and the way we work

45. Customer Tools for Effective Case Management • Read, Web Surf & Keep Informed • Know current policy and procedures • Know key web sites • DSCA, DISAM, ETC • Know how to do web searches!

46. DISAM/DSCA Web Site Resources http://www.disam.dsca.mil/ http://www.dsca.mil/ Ask an Instructor

47. Customer Tools for Effective Case Management DISAM MET???

48. Customer Tools for Effective Case Management

49. OPTIONAL SLIDES

50. Role of Policy Coordination Office • Coordinate decisions within purchaser’s government • Central point of contact for American organizations • Nucleus of expertise about American programs • Liaison between other government agencies and U.S. offices