International Business Planning Learning Objectives Plan and synchronize

International Business Planning

Learning Objectives • Plan and synchronize IA&E activities in later acquisition phases to enhance acquisition outcomes and contribute to Security Cooperation objectives − Examine the benefits of the PMO taking a lead role in planning IA&E activities − Examine the key IA&E aspects that should be addressed in International Business Plan (IBP) development − Examine the benefits of establishing a “set” of exportable configurations for the program − Examine how ICP, FMS and/or BPC mechanisms can be leveraged in the program’s P&D and O&S acquisition phases − Examine the relationship between the PMO and U. S. industry in IA&E planning and execution 2

• • IBP Overview IBP Content IBP Implementation Summary 3

International Business Plan (IBP) • Programs with substantial international involvement should consider developing an IBP prior to Milestone C • Develop an IBP during the latter stages of EMD or during LRIP when the level of IA&E is highest • Promotes effective integration of domestic and international acquisition efforts throughout the program’s life-cycle Recommended by DAG to assist in implementing the Acq Strat 4

“Plans are nothing; Planning is Everything. ” (Dwight D. Eisenhower) 5 5

IBP Content and Benefits International Opportunities Acquisition Strategy Security Cooperation Alignment International Business Plan (IBP) Content Ongoing International Activity Exportability Planning Stakeholder Alignment PMO Alignment Prospective International Activity Tool to enhance a program’s domestic and international acquisition outcomes 6

IBP Overview • Comprehensive tool for a PMO to plan program’s international and domestic acquisition activities and identify international opportunities − Describes ongoing and future prospective ICP, FMS, and/or BPC efforts (and any applicable DCS activities) − Supports IA&E planning across functional disciplines − Synchronizes stakeholder activities to align with USG/Do. Dlevel Security Cooperation and Do. D Component objectives • Flexible format -- may be integrated with other PMO management plans or a stand-alone document 7

How does your program conduct international business planning? What are the benefits? 8

IA&E Functional Integration Systems Engineering Product Upgrades Program Protection PMO Alignment Product Support Test and Evaluation Contracting Business/ Financial Mgmt Functional disciplines play an essential role in IA&E planning and execution 9

Stakeholder Interaction OSD(Policy) DSCA COCOMs OUSD(A&S) USG/Do. D TSFD Community PMO Do. D Component IPOs Country Teams/SCOs Industry Foreign Governments Stakeholders expect PMOs to accomplish their diverse expectations 10

Program Leadership • Facts of Life − PMOs should lead the way in planning and implementing their programs’ current and future IA&E activities − Most stakeholders don’t appreciate how their IA&E “demands” impact acquisition programs • Best Practice − PMOs should use an IBP to align stakeholders’ interests and integrate domestic and international acquisition activities to promote synergy and minimize disruptions 11

Do you believe it is possible for a PMO to lead the IA&E aspects of their program? 12

• • IBP Overview IBP Content IBP Implementation Summary 13

IBP Time Dimensions Current Baseline • TSFD-approved exportable configurations • Ongoing ICP activities • Ongoing sales and transfer activities Where is the program today Near-Term Activities Mid/Long-Term Activities • Prospective ICP activities • Prospective sales and transfers • Pending TSFD & EC transaction approvals • Updated international market analysis • Expanded ICP and sales and transfers planning • Evolving TSFD & EC policy approvals Where is the program headed Desired future state 14

Current Baseline • TSFD-approved exportable configurations • Ongoing ICP activities • Ongoing sales and transfer activities TSFD-Approved Exportable Configurations Existing ICP MOUs/PAs Existing FMS and BPC Cases Existing DCS Contracts See the IBP JST or backup charts for details on what information should be collected 15

Exportable Configurations • Many (but not all) TSFD decisions are made on a case-bycase basis tied to a specific ICP/FMS/BPC transaction • Establishment of individual TSFD “country policies” over time could result in several unique country configurations that a PMO would have to “develop, ” test, and sustain • Best Practice: PMO should propose a reasonable number of exportable configurations for TSFD approval that will accommodate all envisioned ICP/FMS/BPC transactions Domestic Best Friends Good Friends Acquaintances Configuration 16

What are the benefits and challenges of establishing a “reasonable set” of exportable configurations for new programs? 17

IBP Classification • IBPs contain pre-decisional information and should at a minimum be marked and handled as Controlled Unclassified Information (CUI) • Depending on the program’s SCG and Do. D Component practice, portions of the IBP may also need to be classified − TSFD decisions are documented by the TSFD process “owners” in various forms at the classified or CUI level • Best Practice − Use unclassified or CUI level TSFD-approved exportable configuration descriptions in the IPB − Incorporate key references to classified and CUI TSFD process approval documents which contain detailed guidance • Provides PMO personnel with the “what” aspects of the system’s exportable configuration(s) required for day-to-day acquisition activities while providing “how” and “why” details based on need to know 18

Near-Term Activities • Prospective ICP activities • Prospective sales and transfers • Pending TSFD & EC transaction approvals Prospective ICP MOUs/PAs Prospective FMS & BPC Cases Prospective DCS Contracts Pending TSFD & EC Transaction Approvals See the IBP JST or backup charts for details on what information should be collected 19

Mid/Long-Term Activities • Updated international market analysis • Expanded ICP and sales and transfers planning • Evolving TSFD & EC policy approvals Sales Opportunities ICP Opportunities Required TSFD and EC approvals & authorizations See the IBP JST or backup charts for details on what information should be collected Desired Future State 20

Updated Int’l Market Analysis Method Information Sources Replacement of Existing Systems Do. D Component IPOs U. S. /Foreign Emerging Requirements U. S. Industry Security Cooperation Objectives Int’l R&D Organizations & SCOs OSD/Do. D Component Acquisition Objectives U. S. Intelligence Community PMOs should periodically improve their mid-to-long range estimates 21

Potential for Future Cooperation Use various Security Cooperation engagement tools to identify/pursue ICP/FMS opportunities throughout the acquisition lifecycle Technology Development System Upgrades • System requirements studies on commonlyowned systems • Cooperative/ coordinated tech developments for future upgrades • Investment in new tech developments integrated as new system capabilities • Cooperative T&E • Diminishing Manufacturing Sources Training & Sustainment • Combined training • Cooperative spares pooling/sharing arrangements • Harmonized depot level capability investments Key Factors = U. S. /foreign system ownership + harmonized reqmts/resources 22

What type of cooperation do your programs have in system upgrades/modifications or in logistics support? 23

Product Upgrade Approaches • Even when weapons system configurations are not identical, cooperation is possible on – “Common core” upgrades (U. S. , MOU partners, FMS customers) – “Partially common” upgrades (some but not all) • Variety of transaction approaches may be used Mechanism: FMS LOAs Characteristics: • U. S. defines upgrade requirements • U. S. makes up-front Non Recurring Cost (NRC) investment • Customer relationship Mechanism: FMS LOAs Characteristics: • U. S. and FMS customers define upgrades • U. S. and FMS customers split up-front NRC investment • Partner-like relationship Unique Partially Common Core Mechanism: MOU/PAs Characteristics: • U. S. and MOU partners define upgrades • U. S. and MOU partners share up-front NRC investment • Partner relationship U. S. benefits from foreign country-funded upgrades should also be considered 24

TSFD & Export Control • Identify TSFD and Export Control approvals needed to capitalize on potential opportunities for cooperation Product Upgrades Warehouse Distribution Foreign Industry Sourcing Logistics Cooperation Third-Party Nations • Develop action plans to pursue high payoff opportunities that arise PMOs should ensure required TSFD & EC approvals are identified/pursued 25

• • IBP Overview IBP Content IBP Implementation Summary 26

Action Plan Development • Identify key actions to aggressively pursue near-term efforts and capitalize on mid/long-term opportunities TSFD & Export Control Exploratory Discussions Working Groups International Agreements FMS Transactions Industry Discussions • Engage domestic and foreign stakeholders, cultivate buyin, and begin aligning mutual resources • Develop time-phased action plans and integrate with “domestic” program plans across functional disciplines 27

PMO IA&E Functional Roles Systems Engineering Product Upgrades (Cooperative opportunities) (Unique config mgmt. ) Prog Protection (Differential capability & Anti-Tamper) Test and Evaluation (Unique config testing) IA&E Planning & Execution Contracting (FMS contracting) Product Support (Coop opportunities and unique configurations) B/FM (Maximizing benefits from U. S. /foreign funding) Functional disciplines should play a key role in IA&E action planning & execution 28

USG and Industry Relationship • PMO engagement with key program contractors can provide substantial leverage in program IA&E efforts − Share information and insights − Align Security Cooperation goals and industry efforts − Synchronize government and industry activities o Early identification of required TSFD and export approvals o Planning “hybrid” FMS/DCS arrangements • An International Business Plan could provide a framework for these discussions 29

Do you believe PMOs and industry should work together in international business planning? Discuss your views … 30

• • IBP Overview IBP Content IBP Implementation Summary 31

Summary • An International Business Plan can be an important tool for PMOs − Helps align stakeholders to avoid actions which disrupt programs − Helps identify mutually beneficial cooperative opportunities − Provides information needed to integrate functional disciplines − Can help synchronize Do. D and industry planning • Not a requirement but recommended by the DAG • JST available on International Acquisition Management Community of Practice (ICOP) 32