THE DISAM JOURNALOF INTERNATIONALSECURITYASSISTANCE MANAGEMENT Our cover feature this quarter discusses the missions and functions of the U.S. Army Security Assistance Command. With 35 years service to the international community, USASAC is the Army organization devoted to the broad range of security assistance materiel programs. It provides total security assistance program management, including planning, delivery and life cycle support of equipment provided to our international partners. In addition USASAC negotiates and implements armaments cooperation agreements, manages export licenses for the Army, and supports emergency assistance and humanitarian relief operations. Our lead article describes in greater detail USASAC’s involvement across a wide spectrum of international programs as the command leads the Army toward allied strength in cooperation. Each year we publish extracts from the Congressional Research Service’s publication on conventional arms transfer to the developing nations. This annual offering looks at the world trade in arms for the preceding year and puts it into the perspective of the last five years. Containing an analysis of both suppliers as well as purchasers, the report places the U.S. arms transfer program in the context of world trade in weapons. The security assistance organizations produce their engagement plans consistent with other strategic plans prepared by the military and the Department of State. In order that this planning effort not become a sterile drill but a useful aid in conducting business within the SAO, we offer a proposal for the planning process that will institutionalize strategic thinking. Although the U.S. has long provided resources for the professional education of the militaries of our strategic partners, conditions are often such that the effect of our efforts are not easily discernible. However, in the Balkans we can point to a success story that has demonstrable links to our military assistance effort. Aid to Croatia since 1995 has sent a total of 550 Croatian officers and senior foreign and security policy officials to American schools, especially to the Marshall Center in Garmisch, Germany. During the contentious election in early 2000, the military chose to remain on the sidelines, thus passing its first test as a peacetime army. This outcome assuredly was a result, at least in part, of the exposure to democratic principles emphasized in their coursework in U.S. schools. In the same vein, we have a personal testimonial from a Danish officer who notes how his attendance at the U.S. Army Command and General Staff College resulted in contacts that facilitated his dealings in a multinational military environment. The Defense Systems Management College recently co-hosted the Third International Acquisition/Procurement Seminar-Pacific in Singapore. The College has kindly let us reproduce some of the speeches presented at the seminar which are especially relevant to understanding the defense environments in which our allies in Asia are operating today. Finally, we wish to congratulate two of our adjunct faculty members for recently receiving some singular honors. We are proud to have them on our DISAM team. JUDY-ANN CARROLL Colonel, USA Commandant i The DISAM Journal, Fall 2000 Report Documentation Page Form Approved OMB No. 0704-0188 Public reporting burden for the collection of information is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Washington Headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington VA 22202-4302. Respondents should be aware that notwithstanding any other provision of law, no person shall be subject to a penalty for failing to comply with a collection of information if it does not display a currently valid OMB control number. 1. REPORT DATE 3. DATES COVERED 2000 2. REPORT TYPE 00-00-2000 to 00-00-2000 4. TITLE AND SUBTITLE 5a. CONTRACT NUMBER The DISAM Journal of International Security Assistance Management. 5b. GRANT NUMBER Volume 23, Number 1, Fall 2000 5c. PROGRAM ELEMENT NUMBER 6. AUTHOR(S) 5d. PROJECT NUMBER 5e. TASK NUMBER 5f. WORK UNIT NUMBER 7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES) 8. PERFORMING ORGANIZATION Defense Institute of Security Assistance Management REPORT NUMBER (DISAM),DISAM/DR,2475 K Street,Wright-Patterson AFB,OH,45433-7641 9. SPONSORING/MONITORING AGENCY NAME(S) AND ADDRESS(ES) 10. SPONSOR/MONITOR’S ACRONYM(S) 11. SPONSOR/MONITOR’S REPORT NUMBER(S) 12. DISTRIBUTION/AVAILABILITY STATEMENT Approved for public release; distribution unlimited 13. SUPPLEMENTARY NOTES 14. ABSTRACT 15. SUBJECT TERMS 16. SECURITY CLASSIFICATION OF: 17. LIMITATION OF 18. NUMBER 19a. NAME OF ABSTRACT OF PAGES RESPONSIBLE PERSON a. REPORT b. ABSTRACT c. THIS PAGE Same as 135 unclassified unclassified unclassified Report (SAR) Standard Form 298 (Rev. 8-98) Prescribed by ANSI Std Z39-18 The DISAM Journal, Fall 2000 ii THE DISAM JOURNAL of International Security Assistance Management Fall 2000 Cover Feature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 Major General Bruce K. Scott, USAand Ken Spalding, U.S. Army Security Assistance Command, “The U.S. Army Security Assistance Command” . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 Legislation and Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 Richard F. Grimmett, Congressional Research Service The Library of Congress, “Conventional Arms Transfers to Developing Nations, 1992-1999” . . . . . . . . . . . . . .27 Perspectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61 Captain Robert C. Rubel, USN, Center for Naval Warfare Studies, “Security Assistance Engagement Plan Development” . . . . . . . . . . . . . . . . . . . . . . . .61 Major Kristan J. Wheaton, USA, U.S. Embassy, The Hague, “Success! Security Assistance and Its Impact in Croatia 1995-2000” . . . . . . . . . . . . .67 Charles G. Jameson, Northrop Grumman Corporation, “The Technology Transfer Pyramid and How to Climb It” . . . . . . . . . . . . . . . . . . . . .74 Michael Swansburg, Defense Security Service “Technology Control Plan” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .77 Gil Watters, Capital Equipment Program Department of Defence, Australia “Affordable Acquisition” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .80 Chinniah Manohara, Director Defence Science and Technology Agency, Singapore “Defence Procurement in Singapore” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .86 Robert E. Hammond, Vice President, South Asia Region Lockheed Martin Global, Inc. “Challenges and Opportunities for U.S. Defense Companies in South Asia” . . . . . . . .95 Education and Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .99 Richard Kwatnoski, Defense Systems Management College, “How Defense Security Management College Supports the National Security Strategy of Engagement” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .99 iii The DISAM Journal, Fall 2000 Commander Pat Hawkins, USN, Defense Institute of Security Assistance Management, “Training Officer Survey Results” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103 Nels E. Berdahl, Information Spectrum, Inc., “Update: Defense Security Assistance Management System (DSAMS)” . . . . . . . . . .108 “German Army Hosts Multinational DISAM Foreign Purchaser Courses in Historic Hammelburg” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112 Security Assistance Community . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115 Constance Hale, U.S. Army Command and General Staff College Fort Levenworth, Kansas, “International Hallway Dedication Ceremony” . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115 Colonel Jørgen Jelstrup, Danish Army “Chief of Staff/Nordic-Polish Brigade on NATO Mission in Bosnia, June 1998 - January 1999: The Leavenworth Link” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .120 “Dr. Benjamin N. Muego Becomes the Newest Member of the DISAM Family” . . . . . .122 “DISAM Adjunct Faculty Receive Honors” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .124 Security Assistance Calendar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127 Research and Consultation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .129 The DISAM Journal, Fall 2000 iv FEATURE ARTICLE The U.S. Army Security Assistance Command By Major General Bruce K. Scott, USA and Ken Spalding U.S. Army Security Assistance Command This article discusses the missions and functions of the U.S. Army Security Assistance Command (USASAC), focusing on current procedures for program management in the international arena. Celebrating its 35th anniversary this year, USASAC continues a proud tradition of service to the nation, the U.S. Army and their international partners. Over the years, dedicated soldiers and civilians have successfully performed our worldwide mission supporting our nation’s security strategy and foreign policy objectives through development, execution, and world-class management of Army security assistance (SA) programs. As the U.S. Army’s focal point for foreign military sales (FMS), we support more than 120 allied countries, friendly nations and multinational organizations. The value of our current worldwide caseload exceeds $48 billion, with more than $3.2 billion in new cases added this fiscal year. The mission we perform is unique to the Army. We are the only Army organization that executes approved security assistance materiel programs, including technology security and management, business management, export license management, country program management, and coproduction of Army materiel. USASAC Organization The USASAC, whose elements were first consolidated at New Cumberland, Pennsylvania, in 1965, is a major subordinate command (MSC) of the Army Materiel Command (AMC), which manages one-half of the Army’s procurement dollars and is the Army’s main supplier of weapons and equipment. The Army Materiel Command commander, as the Army executive agent for security assistance, has assigned the security assistance mission to USASAC. Under this assignment, we in USASAC view ourselves and are viewed as “Army Materiel Command’s Face to the World.” The USASAC commanding general also serve as the AMC Deputy Chief of Staff for Security Assistance on the Army Materiel Command Headquarters staff. The USASAC has a civilian principal deputy, who is a member of the senior executive service. 1 The DISAM Journal, Fall 2000 United States Army Security Assistance Command Program Manager Commanding General Saudi Arabia AMC DCS for Security National Guard Assistance Modernization Riyadh, Saudi Arabia Deputy Legal Europe Counsel Directorate Chief of Staff Information Management Asia/Pacific/Americas Deputy Chief Division Directorate of Staff SGS Admin & Security Mideast/Africa DFAS Directorate Resources Studies and Division Analysis Group Office for International Security Assistance Industrial Cooperation Audit Office Plans, Policy & Procedures Directorate Operations and Logistics Directorate Figure 1 The USASAC organization is depicted in Figure 1. The command’s operating centers are located at Alexandria, Virginia, New Cumberland, Pennsylvania, and Saudi Arabia. Three regional directorates at Alexandria manage the FMS case workload: Europe; Asia, Pacific and Americas; and Mideast/Africa. At Alexandria, country program managers (CPMs) work directly with representatives of foreign governments to plan, develop and execute international sales agreements. Under the command and control of the regional directors, teams of country case managers (CCMs) at New Cumberland help ensure that each customer’s cases receive the intense management required for total customer satisfaction. The command’s other directorates are Operations and Logistics, and Plans, Policy and Procedures. Additionally, the Resource Management Division, Information Management Division, the Office for International Industrial Cooperation, and the Office of the Program Manager, Saudi Arabian National Guard (OPM-SANG) Modernization round out USASAC’s management team. Additionally, a legal counselor and a semi-independent audit office help us to ensure sound stewardship of resources. The USASAC also has one employee in Cairo, Egypt, who serves as an automation advisor to the Egyptian Land Forces. The DISAM Journal, Fall 2000 2 Personnel from the Office of the Program Manager, Saudi Arabian National Guard (OPM-SANG) Modernization assist in antitank weapons training of SANG soldiers. The USASAC, including OPM-SANG, is staffed by 621 men and women, of whom 104 are military. These professionals are guided by USASAC’s strategic vision: The international partner of choice for U.S. Army programs, leading DoD in security assistance management with a dedicated, highly skilled workforce. Ahigh performance command, partnered with industry and characterized by a climate of excellence, fairness and accessibility in a global environment. USASAC and Foreign Military Sales Foreign military sales comprise the Army’s principal security assistance program. FMS, which are government-to-government sales of defense articles and services, not only enhance the defensive capabilities of our allies, but also promote interoperability of materiel, logistics, and training all areas vital to the success of coalition security. In addition, on the domestic front, FMS help the U.S. economy, maintain jobs, and sustain the industrial base for crucial weapon systems. The USASAC is responsible for life cycle management of FMS cases, from development to execution, financial management and accounting, and closure. Each sale of equipment to overseas customers comprises the same total package of quality materiel, spare parts, training, publications, technical documentation, maintenance support, and other services that Army Materiel Command provides to U.S. Army soldiers. The USASAC commanding general and his staff operate within policy and guidance furnished by the Office of the Deputy Under Secretary of the Army for International Affairs (DUSA-IA) and interface with the Defense Security Cooperation Agency (DSCA), other military departments 3 The DISAM Journal, Fall 2000 and U.S. government agencies, private industry, and representatives of foreign governments and international international organizations. Mission Simply stated, the command fulfills its core purpose to enhance national security strategy and foreign policy through the following primary mission areas: • Providing total security assistance program management, including planning, delivery and life cycle support of equipment, services, and training to, and coproduction with, U.S. allies and international partners. • Negotiating and implementing coproduction agreements. • Managing export licenses for the U.S. Army. • Serving as the proponent for Army security assistance information management and financial policy. • Providing logistics procedural guidance to the Army security assistance community. • Supporting U.S. government emergency assistance, humanitarian relief and operations other than war. Quest for Quality We at USASAC believe that to provide quality products and services, we have to be a quality, customer-oriented organization. Our customers include not just our international FMS partners, but also the American taxpayer, the State Department and other U.S. agencies, Army Materiel Command and the major subordinate commands, and U.S. industry. In serving all our customers, we constantly reevaluate and strive to improve the way we do business expanding and enhancing automation, management, administration, training, and teamwork and continuously improving our processes. Employing quality management coupled with quality leadership, working with the Army Materiel Command and other U.S. organizations, USASAC provides its customers with superior equipment, service, and support. Security Assistance Budget The USASAC manages programs and budgets for the general and administrative support provided by Army Materiel Command to the security assistant program. The budgets are developed at USASAC, with input from the Army Materiel Command major subordinate commands that are commodity commands, and submitted through Headquarters, Department of the Army (HQDA) to the Defense Security Cooperation Aagency. See Figure 2 for an illustration of this process. The Defense Security Cooperation Agency, in turn, provides FMS administrative funding through Headquarters, Department of the Army to Army Materiel Command from funds collected by a 2.5 percent surcharge levied on most FMS cases. The DISAM Journal, Fall 2000 4 AMC Commodity Commands Aviation and Missile Command (AMCOM), Redstone Arsenal, Alabama, manages aviation and missile systems from R&D through procurement, production and fielding. Communications-Electronics Command (CECOM), Fort Monmouth, New Jersey, cradle-to-grave acquisition and management of community and electronics equipment. Operations Support Command (OSC), Rock Island, Illnois, world-class logistics support through materiel manufacturing and maintenance. Simulation, Training and Instrumentation Command (STRICOM), Orlando, Florida, development, evaluation, and support of distributive interactive simulation systems. Soldier and Biological Chemical Command (SBCCOM), Aberdeen Proving Ground, Maryland, life cycle support of everything the soldier wears, carries or consumes. Tank-automotive and Armaments Command (TACOM), Warren, Michigan, management of R&D, production, fielding and support of mobility and armament systems. Figure 2 Approximately 90 percent of the FMS administrative funding received by the Army is managed by USASAC for logistics support services provided by the Army Materiel Command to the FMS program. Funds are used for services such as case preparation and management, requisition processing, procurement, case closure and financial case management. Functions such as technology transfer, export license processing and coproduction are funded through the Operation and Maintenance, Army (OMA) appropriation. The OPM-SANG, which is solely dedicated to the support of the Saudi Arabian National Guard, is funded under FMS from Kingdom of Saudi Arabia funds. Business and Sales U.S. Army security assistance is conducted largely on a reimbursable basis at no cost to the American taxpayer. The total value of open USASAC-managed FMS cases, over 4,200 of these are more than $49 billion, of which $14 billion is undelivered. The $14 billion undelivered posture suggests a considerable workload requirement for USASAC in the foreseeable future (an annual delivery estimate of between $3 and $4 billion is considered reasonable). The lineup of top ten customers, with Saudi Arabia and Egypt leading, accounts for more than eighty percent of the value of open cases. For fiscal year 2000, new FMS cases totaled $ 3.235 billion, a significant increase from the fiscal year 1999 total of $2.7 billion. In fact, it is our best year since fiscal year 1993. The largest FMS in fiscal year 2000 (having a case value of $100 million or more) included the sale of AH- 64D Longbow attack helicopters to Israel; Alpha Apache helicopters to the United Arab Emirates; CH-47 Chinook helicopters to Egypt; and Avenger air defense systems to Israel. 5 The DISAM Journal, Fall 2000