I OPENING by Mr. John Irizarry and Mr. Peter Burke T


here is little doubt that sales of U.S. military equipment and ammunition through foreign military sales


cial sales (DCS) is big business. According


to the Defense Security Cooperation Agency, FMS in FY15 topped $35 billion, a $4 billion increase over FY14. Some available data suggest that DCS are on the order of two to three times these annual amounts. Tese sales represent a boon to defense contractors, a critical stabi- lizer for the U.S. defense industrial base and a strategic benefit to U.S. partner nations.


However, there are several barriers to increasing these sales beyond current levels. Tis article examines two of these barriers and discusses a prototype program to improve U.S. defense competitiveness implemented by a cadre of defense organizations, including the U.S. Army Research, Development and Engineering Command’s Armament Research, Development and Engineering Center (RDECOM-ARDEC) and the project manager for combat ammunition systems (PM CAS) within the Program Executive Office (PEO) for Ammunition.


(FMS) or direct commer-


POLICIES LOCK U.S. CONTRACTORS OUT OF FOREIGN COMPETITIONS As in the United States, many countries have implemented statutes and regulations regarding the competitive acquisition of defense-related products. Tese competi- tive rules may be set aside in cases where technologically advanced weapons and munitions can be purchased from only one source. However, in many areas, such as conventional ammunition and weapons, countries routinely use these competitive practices to ensure the lowest price for products. In these cases, nations will use a request for tender (RFT), request for proposal (RFP), request for quote (RFQ) or other contractual processes designed to promote competition.


Responses to these requests through a proposal are typi- cally required within one to three months. Te FMS system requires reviews from many government stake- holders to assure a complete and correct response, and depending on the complexity, it can take many months to complete.


nternational markets


It’s usually a good thing when the U.S. government retains the intellectual property rights for weapon systems and technologies. That can, however, prevent U.S. companies from competing to sell to foreign governments. With a cooperative research and development agreement and a let ter of the government’s intent to provide technical data, international markets open to U.S. industry and allies’ equipment is more interoperable with U.S. equipment.


ASC.ARMY.MIL


27


ACQUISITION


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