17 octobre 2019 | International, Terrestre

3 ways the Pentagon wants to make buying American weapons easier

By: Aaron Mehta

WASHINGTON — America sold more than $55 billion in weapons abroad in fiscal 2019, but the man in charge of those efforts hopes to increase sales as he continues to tinker with the security cooperation system.

Security cooperation has long been a foreign policy tool in America's pocket, but under the Trump administration, it “has been elevated to a tool of first resort for U.S. foreign policy,” Lt. Gen. Charles Hooper, the head of the Defense Security Cooperation Agency, said during a panel at the Association of the U.S. Army's annual conference.

Since taking over at DSCA, Hooper has implemented a series of reforms aimed not only at speeding the process up, but shaving costs for potential buyers. He intends to keep that reform effort going in 2020. Here's how:

Continue to cut surcharge costs. In June, DSCA dropped a surcharge on American defense goods sold abroad from 3.5 percent to 3.2 percent; later that year, the agency also cut a transportation administration fee. Both those charges are used to support DSCA operations, but some in the security cooperation process had argued the increased prices for customers would lead potential buyers to look to cheaper Russian or Chinese goods in the future.

Hooper said that in 2020, DSCA plans to also cut the contract administration surcharge — applied to each FMS case to pay for contract quality assurance, management and audits — from 1.2 percent to 1 percent.

“This will reduce the overall costs of FMS and could potentially save allies and partners 16.7 percent in CAS surcharges in this coming year,” Hooper said.

Make it easier for customers to get custom weapon systems. The FMS system is set up to help sell weapons that are identical to systems already in use by the U.S. military. It's easier to move a package of Abrams tanks equipped with the same gear that multiple countries use than to push through a custom version with specific capabilities. But Hooper noted that partners are moving away from standard designs and are looking for systems “designed and tailored to meet their needs. Our system was not initially designed to process these types of systems, which increases time and cost in the U.S. response.”

To help deal with that, DSCA established an “interagency non-program of record community of interest,” which involves all the agencies that have a say in the process, to figure out ways to make moving custom systems more plausible. The goal is to have a new pathway for moving those capabilities by 2020, which Hooper says will “reduce the time it takes to review request for non-program of record systems, to facilitate industry ability to compete in this global market.”

Plan out commercial offsets. Many countries require offsets from industry for big foreign military sales. These offsets are essentially throw-in sweeteners for the buying country, put together from the industrial partner. In the past, these were often things like building a new library or school. But in the last two decades, some countries specifically requested high-end technologies or tech transfer to jump-start their domestic defense industries.

Because offsets are negotiated between the industrial partner and the customer nation, the Pentagon, which serves as the in-between for an FMS case, often finds out about offsets only at the end of the process. But with offsets becoming more technological, those now require more review time, and so a deal can slow down while the relevant agencies approve the deal.

Hooper hopes 2020 will see industry better inform DSCA of potential offsets early in the process so that last minute hangups can be avoided.

“We continue to encourage our industry partners to inform the U.S. of potential offset requirements early on so that we can begin the necessary technology security foreign disclosure and policy reviews as early as possible,” Hooper said.

https://www.defensenews.com/digital-show-dailies/ausa/2019/10/16/3-ways-the-pentagon-wants-to-make-buying-american-weapons-easier/

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United Support Solutions - LMT Inc.,* Cedar Grove, New Jersey (W25G1V-19-D-0001); Finch Manufacturing & Technology LLC,* West Pittston, Pennsylvania (W25G1V-19-D-0002); and Central Metal Fabricators Inc.,* Farmingdale, New Jersey (W25G1V-19-D-0003), will compete for each order of the $10,000,000 firm-fixed-price contract to fabricate mechanical components and assemblies. Bids were solicited via the internet with three received. Work locations and funding will be determined with each order, with an estimated completion date of Jan. 30, 2024. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity. General Dynamics Land Systems, Sterling Heights, Michigan, was awarded a $7,969,810 modification (P00072) to contract W56HZV-17-C-0067 for Abrams systems technical support. Work will be performed in Sterling Heights, Michigan, with an estimated completion date of Feb. 28, 2020. Fiscal 2018 research, development, test and evaluation funds in the amount of $7,989,810 were obligated at the time of the award. U.S. Army Contracting Command, Warren, Michigan, is the contracting activity. Loch Harbour Group Inc.,* Alexandria, Virginia, was awarded a $7,247,076 modification (P00010) to contract W9124L-17-F-0003 for training instructors. Work will be performed in Fort Sill, Oklahoma, with an estimated completion date of Oct. 31, 2022. Fiscal 2019 operations and maintenance, Army funds in the amount of $7,247,076 were obligated at the time of the award. U.S. Army Mission and Installation Contracting Command, Fort Sill, Oklahoma, is the contracting activity. WASHINGTON HEADQUARTERS SERVICES NetCentrics Corp., Herndon, Virginia, has been awarded a $268,464,985 firm-fixed-price contract to provide Information Technology (IT) Support Services - Service Delivery. The specific tasks of this service delivery requirement will consist of satisfying Joint Service Provider (JSP) user needs for secure, accessible, and stable IT support. Service delivery services requires an understanding of the current operating environment of the JSP and the ability to leverage mature capabilities and industry best practices to improve efficiency and reduce complexity in order to enhance JSP's IT support services. Through the Service delivery requirement, the JSP seeks to deliver responsive IT services and support to its users in the most efficient manner as possible. Work performance will take place primarily in the National Capital Region, including the Pentagon, Mark Center, and Crystal City, Virginia. Fiscal 2019 operations and maintenance funds in the amount of $268,464,985 are being obligated on this award. The expected completion date is Feb. 27, 2023. Washington Headquarters Services, Arlington, Virginia, is the contracting activity (HQ0034-19-F-0093). DEFENSE LOGISTICS AGENCY Base Utilities Inc.,* Grand Forks, North Dakota, has been awarded a $41,055,519 modification (P00001) to a 50-year utilities privatization contract (SP0600-18-C-8322) with no option periods for additional utility services for two water and two wastewater systems. This is a fixed-price with economic-price-adjustment contract. Location of performance is North Dakota, with a Jan. 31, 2069, performance completion date. Using military service is Air Force. Type of appropriation is fiscal 2019 through 2069 Air Force operations and maintenance funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia. Timken Aerospace Drive Systems LLC, Manchester, Connecticut, has been awarded a maximum $9,072,000 firm-fixed-price delivery order (SPRRA1-19-F-0132) against a three-year basic ordering agreement (SPRRA1-17-D-0014) for rotor link pin assemblies. This was a competitive acquisition with three responses received. This is a three-year indefinite-delivery/indefinite-quantity contract with three one-year option periods. Location of performance is Connecticut, with a July 30, 2021, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 Army working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Redstone Arsenal, Alabama. DEFENSE INFORMATION SYSTEMS AGENCY ARTEL LLC, Herndon, Virginia, was awarded a contract modification (P00005) with an effective date of Feb. 2, 2019, to exercise Option Period One on task order GS-35F-5151H / HC101318F0016 for commercial satellite communications service. The face value of this action is $12,253,244 funded by fiscal 2019 operations and maintenance funds. The total cumulative face value of the task order is $77,474,994. Performance directly supports the Air Force's Central Command network architecture within the Southwest Asia area of responsibility. Quotations were solicited via the General Services Administration's Federal Supply Schedule, Information Technology Schedule 70, and one quotation was received from 29 offerors solicited. The period of performance for Option Period One is Feb. 2, 2019, through Feb. 1, 2020, and there are three remaining unexercised option periods for this task order. The Defense Information Technology Organization, Scott Air Force Base, Illinois, is the contracting activity. * Small Business https://dod.defense.gov/News/Contracts/Contract-View/Article/1745521/source/GovDelivery/

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