COMPETITION IN COOPERATION


• Partner country agrees to LOA and provides required funding or rejects LOA.


3. Acquisition


• Implementing agency manages contracting or requisi- tion of equipment and services specified in signed agree- ment.


4. Delivery • Partner country provides equipment delivery addresses.


• Partner country may use freight forwarder or pay to use the U.S. military transportation system.


5. Case Closure


• An FMS case may be closed when all materiel has been delivered, all ordered services have been performed and no new orders exist or are forthcoming.


• Partner country and government meet to resolve out- standing issues and close case.


• Implementing agency certifies case for closure and residual funds are made available for reuse.


INTERNATIONAL AGREEMENT COMPETITIVE RESTRICTIONS Because the Competition in Contracting Act applies to the award and administration of contracts to fulfill the U.S. government’s requirements and not the needs of a foreign country, a DOD agency is not required to provide for full and open competition when competition is restricted under an international agreement or treaty.


A contracting officer is prohibited from executing a contract action without providing for full and open competition unless the action is justified and approved. Under current Defense Federal Acquisition Regulation Supplement (DFARS) procedures, a justi- fication and approval is not required when an LOA is executed between the foreign country and the government.


Te requirement for a justification and approval to limit competi- tion for contracts awarded under an international agreement was changed in the National Defense Authorization Act for Fiscal Years 1990 and 1991 under Section 817(a) of Public Law 101-189. Tat law permitted preparation of a document, rather than a justification and approval, to limit full and open competition. Tat document describes the terms and directions of a sole-source action requested by a foreign country or international organiza- tion. (Section 817(a) essentially relaxed the administrative burden


of preparing a justification to limit competition that otherwise would have been required under the Competition in Contract- ing Act.)


Implementing Section 817(a), the DFARS explains that a justifi- cation and approval is not required for international agreements if the head of the contracting activity prepares a document describ- ing the sole source procurement for the partner nation.


In the Army FAR Supplement (AFARS), the document describ- ing the sole source procurement for the partner nation referred to in the DFARS is “International Agreement Competitive Restrictions.”


PSEUDO FMS DOD and other agencies may have statutory authorization under the Foreign Assistance Act (FAA) of 1961, the Arms Export Control Act of 1976 or related programs to expend U.S.


DELIVERY STATUS UPDATE


Gen. Gustave F. Perna, then-commander of U.S. Army Materiel Command, received a briefing March 23, 2020, on how U.S. Army Security Assistance Command is managing challenges and successes executing its foreign military sales mission. (Photo by Tim Hanson, U.S. Army Security Assistance Command)


54


Army AL&T Magazine


Spring 2021


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