The U.S. Army Security Assistance Command.

This article discusses the mossions and function 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.

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 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. A high 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 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.

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.

The overall value and viability of the Army security assistance program is more accurately reflected in areas in addition to FMS:

* Support of the U.S. defense industrial base for critical weapons. The majority of new production for the M1 Abrams tank, Apache helicopter, and TOW and Patriot missile systems are ticketed for foreign sales that sustain U.S. jobs.

* Thirty-one coproduction programs, which help promote a forward U.S. Army presence, interoperability with allied systems, and sustainment of U.S. depot maintenance capabilities.

* Foreign sales for modernization save OMA costs for demilitarization, transportation and disposal, and provide dollars directly to Army systems procurement and modification programs.

Customer countries continue to express significant interest in acquiring major U.S. Army systems, including the Multiple Launch Rocket System (MLRS), Black Hawk helicopter, and TOW missile upgrades. This projection is tempered, however, by increasing global competition in the international sales community, typified in fiscal year 2000 by intense competition for main battle tanks, attack helicopters, and tactical missile systems.

When an eligible foreign country or international organization requires defense articles or services, the country's defense organization conveys the requirement in a Letter of Request (LOR). If the request originates within the foreign country, the LOR is submitted through its diplomatic representative in the U.S. or to the Department of Defense (DoD) representative in the U.S. Embassy. The request is then forwarded for action to USASAC, with copies to the State Department and the DSCA. If the LOR originates from a foreign embassy in the U.S., it is sent directly to USASAC, with information copies to the State Department and DSCA.

Upon approval by the appropriate offices, USASAC requests a Letter of Offer and Acceptance (LOA) from the appropriate Army Materiel Command commodity command major subordinate command. Once the LOA has been developed, countersigned, accepted, and funded, the customer's requirement is fulfilled by the commodity command, either by procurement or from U.S. stocks, or both.

The USASAC works with the DoD's major systems acquisition community including the program executive officers and program managers to coordinate procurement and fielding of defense articles under FMS programs.

Each AMC commodity command, where the LOAs are initiated and administered, has a security assistance management directorate (SAMD) that performs the FMS function. Materiel specialists in these offices work closely with USASAC to handle the hardware end of the business, ensuring total package service.

Country Programs

As mentioned, Army security assistance programs for more than 120 countries and multinational organizations are managed by USASAC's three regional directorates. Headed by a colonel and staffed with CPMs and CCMs, the regional directorate's principal responsibilities include:

* Managing defense agency-wide participation in developing and executing approved security assistance programs for assigned countries and international organizations, including aid programs.

* Providing central case management of Army FMS cases.

* Providing command case management of blanket order cases, publication cases and defined line cases for the Defense Logistics Agency (DLA), General Services Administration, and excess U.S. Army managed Class IX (repair parts), Secure Electronic Procurement Office, and non-standard materiel.

Additionally, the directorates participate with DoD and Defense Agencies in determining initial country requirements; provide overall program management guidance based on directives from HQDA and the Office of the Secretary of Defense (OSD); provide, as assigned, overall guidance and direction for the management and logistics support of disaster relief, drug interdiction, and other special State Department and Presidential programs; interpret and disseminate security assistance policies and procedures applicable to their regional areas of responsibility; and provide special supply-logistics systems analyses.

Following are highlights of each directorate's area of responsibility, business volume, and significant items for the past calendar year.

Asia, Pacific and Americas

Like USASAC's two other regional directorates, Asia, Pacific and Americas is divided into two divisions: Country Program Management Division, Alexandria, VA, and the Case Management Division, New Cumberland, Pennsylvania, which executes the requirements of each case and closes individual cases when complete.

The Asia, Pacific and Americas Directorate is responsible for programs in the Caribbean basin, Central and South America, the South Pacific nations and Southeast Asia, plus the North Asian countries, the Philippines and Taiwan. Managing programs in fifty-two countries, four international narcotics matters programs and one international organization. The Organization of American States, the directorate's CPMs are responsible for a total program value of more than $7.2 billion in over 1,500 cases. The division's country program managers also handle Joint Task Force-Full Accountability and demining operations in Cambodia and Thailand.

In the last twelve months, the division hosted country program management reviews for a number of countries. Many of the programs focus on providing major defense equipment as well as follow-on support of tracked and wheeled vehicles, Apache and Black Hawk helicopters, weapons and smaller items purchased through FMS. Historically, many of the countries in the region have used excess defense articles to leverage limited defense budgets. The limited amount of EDA materiel that is now available is altering that pattern somewhat.

Although a number of country programs assigned to the directorate are politically sensitive, the past year has seen the hosting or chairing of a number of security assistance and specific weapon system program management reviews. In this region, we support programs involving coproduction and indigenously designed materiel, as well as significant military equipment, such as the Apache helicopter, MLRS and the Patriot air defense missile system.

Because of our significant national commitment to Korea, in addition to supporting FMS sales, our program involves support of end items purchased through direct commercial sales, war gaming and the war reserve stock for allies (WRSA) program.

Europe

The Europe Directorate manages over 1,800 security assistance cases, valued at more than $10.2 billion, for 60 countries and international organizations. The directorate is responsible for the Special Defense Acquisition Fund (SDAF), which procures high demand defense equipment for EMS.

Geographically, the directorate's area of responsibility is spread across the globe, managing country programs for Canada and Israel, in addition to countries located in Europe proper. The directorate also supports three major international organizations, the United Nations, NATO, and the NATO Maintenance and Supply Agency (NAMSA).

The directorate is responsible for the northern tier of Europe ranging from Belgium, Netherlands, Denmark, and Luxembourg to the Scandinavian countries to Germany, Austria and Greece to the newly recognized Baltic countries of Estonia, Latvia, and Lithuania. In addition, it manages programs for Switzerland, Russia and a number of newly former independent Soviet republics such as Armenia, Azerbaijan, Moldova, Belarus and the Republic of Georgia and Ukraine.

Europe Directorate manages a number of former Warsaw Pact countries, such as Bulgaria, Romania, Poland, Hungary and the Czech Republic, and Slovakia, and is assisting the former Soviet Bloc and Warsaw Pact countries in force development, modernization, and training. These efforts in engagement are aimed at forging lasting professional military relationships with the U.S. The directorate also manages programs for NATO members Canada, United Kingdom, Portugal, Spain, France, Italy, and Turkey, plus the entire multi-billion dollar program for Israel and is responsible for all Secure Electronic Procurement Office cases.

In recent months, directorate staffers assisted in the successful initiation and execution of the first ever U.S. Army EMS reengineering effort involving the potential sale of the Javelin missile system to the government of the Netherlands. These initiatives included establishment of cooperative teaming with both the joint venture group (Raytheon and Lockheed-Martin), the primary contractor for the Javelin system, and teaming efforts within the DoD acquisition community, the DUSA-JA and the Defense Security Cooperation Agency. These cooperative efforts have paid off and will serve as a model for future EMS programs.

Additionally, cases for language labs, infrastructure, simulation, and training cases have increased in a number of Eastern European countries.

The directorate has also been involved in managing defense review and assessment requirements for several Partnership for Peace countries, including efforts in Hungary, Slovakia, Romania, and Macedonia. Several other countries in this region are also in the process of developing requirements for these reviews. The aim of the assessments is to provide a top-to-bottom review of each country's existing defense posture and to make recommendations on how to move their military from the old eastern style military structure to a more modern and western style military. Several countries have undertaken these reforms because of their stated desire to eventually gain full NATO membership.

The directorate is also involved in advanced technology systems, such as the Tactical High Energy Laser (THEL), which is being jointly developed by the United States and Israel. In anticipation of the transfer of the THEL to Israel, an FMS case is being processed which will fund the site design and contractor training in Israel.

Mideast/Africa

The Mideast/Africa Directorate manages a $25.5 billion program consisting of forty countries, two international organizations and over eight hundred seventy-six active FMS cases. Four directorate countries, Saudi Arabia, Egypt, Kuwait, and United Arab Emirates, rank among the top ten of the U.S. Army's largest FMS programs. Potential sales for the directorate in fiscal year 2001 total $5.8 billion.

Saudi Arabia is the largest FMS program managed by USASAC. Today, the FMS program for Saudi Arabia is one of sustainment and modernization. The USASAC, in conjunction with other U.S. agencies, works closely with our Saudi counterparts to ensure the systems procured from the U.S. are sustained well into the twenty-first century.

The majority of the major programs that were implemented in the early 1990s, including the M1A2 Abrams tank, M2A2 Bradley tank, tactical wheeled vehicles, air defense systems, and AH64 aircraft, have transitioned from fielding to a sustainment phase. The Patriot air defense system is the one exception, as fielding continues on the last remaining battalion.

The Egyptian FMS program is another success story for the USASAC. The government of Egypt became eligible for the purchase of U.S. defense articles and services by presidential determination on 1 August 1977, which states that this action would strengthen the security of the U.S. and promote world peace. The commitment made by Congress, which provides Foreign Military Financing (FMF) will ensure the continued modernization of the Egyptian armed forces.

Egypt has continued to make significant strides to modernize and enhance its helicopter fleet. This was evidenced by the purchase of four new Chinook CH-47D helicopters, coupled with Egypt's request to upgrade six of the Chinook CH-47C models to the CH-47D configuration. Additionally, the government of Egypt has requested to upgrade thirty-five of the AH-64A Apache helicopters to the AH-64D model. The estimated value of the aviation modernization effort is $400 million.

The Egyptian MlA1 Tank coproduction program expanded from its initial 555 tanks with the additional sale in March 1999 of one hundred M1A1 tank kits and M256 cannon and gun mounts, totaling $514 million. Discussions are ongoing for the second one hundred additional M1A1 tank kits and gun mounts.

Kuwait's desire to rebuild its military is another significant area of focus. Kuwait's acquisition of major weapon systems such as the Patriot missile and the M1A2 tanks continues to dominate our efforts. Planned purchases of the Apache Longbow, TOW IIB missiles, and large quantities of various types of ammunition will provide needed support for our industrial base, and will ultimately enhance the readiness of Kuwait's defenses.

Kuwait's Hawk program is expanding with a planned acquisition, under the EDA program, of five assault fire units ($46.6 million), missiles and ground support equipment. Additional missiles are also being purchased via the Special Defense Acquisition Fund. The United Arab Emirates has also indicated a continued interest in the Patriot missile system.

The United Arab Emirates security assistance program includes two major systems, AH-64A Apache helicopter and the Hawk missile system. As a member of Task Force Falcon, the United Arab Emirates is actively operating six of its Apache helicopters in support of coalition operations in the Kosovo theater of operations. Price and availability data was recently provided to the United Arab Emirates for the remanufacture of the AH-64A to the D model.

In recent years, Jordan has received a variety of equipment through various presidential drawdowns. In fiscal years 1998 and 1999, we delivered M901A1 TOW carriers, night sights, TOW II launchers, a variety of Hawk PIP-II components, missiles and rocket motors, AN/PRC-127 radios, several million rounds of ammunition, M35A2 trucks and a variety of spare/repair parts. In fiscal year 2000, deliveries are scheduled for AH-1F attack helicopters and Hawk PIP-II assault fire units.

As a result of Jordan's efforts in the Mideast peace process, supplemental funds were provided for its modernization efforts to procure HMMWVs, TOW IIA missiles, additional spare and repair parts, as well as repair and refurbishment of AH-l Cobra helicopters and components.

Program Manager - Saudi Arabian National Guard Modernization

The availability of FMF funds for Africa has been very limited. Most African countries do not have national funds with which to finance new and existing purchase requests. USASAC is working with the customers to identify excess money on current cases which can be pooled together to finance new programs and continued support for existing programs. This allows continuous security assistance support, even when new funding is not available.

The Office of the Program Manager, Saudi Arabian National Guard Modernization, has the mission of developing within the Saudi Arabian National Guard the capability to unilaterally initiate, sustain, and operate modern military organizations and systems, in conjunction with other Kingdom of Saudi Arabia forces. Support provided by the program manager includes materiel acquisition and delivery and intensive training programs. The current program manager is Brigadier General (P) Buford Blount. Country program management, program liaison and CONUS representation are provided by the director, Washington Field Office, program manager, Saudi Arabian National Guard Modernization, located at USASAC Alexandria.

The Saudi Arabian National Guard modernization program is a multi-billion dollar program which dates to a 1973 memorandum of understanding between the United States and Saudi Arabia. The program is a fully Saudi Arabian funded, cash sales program. The program manager is chartered by the Secretary of Army and reports to the USASAC Commanding General. The program manager is a direct advisor to the crown prince and regent of Saudi Arabia who is also the commander of the SANG.

The Saudi Arabian National Guard modernization program includes a staff of approximately 300 U.S. Army military and civilians. In addition, there are over 1,500 personnel under contract to program manager providing specific training and support for the program.

The Saudi Arabian National Guard is a full-time, standing, defensive land-based force of approximately 100,000 men. The Saudi Arabian National Guard is recognized as having distinguished itself in the Gulf War, conducting and prevailing in the only land engagement with Iraqi forces on Saudi soil. After that conflict, Crown Prince Abdullah, Saudi Arabian National Guard Commander, approved a plan to further expand and accelerate the Saudi Arabian National Guard force modernization program.

A robust and complex acquisition for the fielding and training of the light armored vehicle manufactured by General Motors Defense Systems continues as the centerpiece of the modernization program. The total package light armored vehicle program, currently valued in excess of $3.6 billion, includes 1,117 vehicles in ten mission role variants, associated facilities, training devices and simulators, logistical support and spare parts, new equipment training and ammunition.

To highlight another element of the modernization program, the Saudi Arabian National Guard has requested and purchased through U.S. Army security assistance, a very significant quantity of SINCGARS VHF and Harris Corporation high frequency communications radios and associated equipment. The Saudi Arabian National Guard is the single largest user of SINCGARS equipment outside of the United States. These procurements have had a very positive and lasting impact on the U.S. defense industrial base and reduced life cycle costs to the U.S. for this equipment.

The continuation of this long-term very successful program is a priority for the U.S. Army, the Commander in Chief Central Command, and the Department of Defense. The program has a significant role in the national defense strategy and theater engagement plan for the region.

Operations and Logistics

This New Cumberland-based directorate's scope and functions cover all facets of integrated security assistance logistics support to customers both internal to the Department of the Army and the 120-plus foreign countries and international agencies supported by USASAC. The Logistics Systems Division oversees branches for systems/procedures and for customer support, while the Product Assurance Division fields a world-class team of technical advisors that our international customers. The directorate's myriad missions include security assistance systems management and analysis; transportation policy; publications management; cooperative logistics supply support arrangement (CLSSA) program guidance; Defense Logistics Agency liaison; system and procedures development; product assurance management and execution; customer service; case preparation, management and closeout oversight; security assistance liaison officer management; and logistics staff functions. In addition, this staff acts as the USASAC operational e lement for mobilization, Joint Chiefs of Staff exercises, and emergency planning. The two divisions implement these mission elements.

Logistics Systems Division

This division develops the internal policies and procedures required by the CCMs; analyzes and designs functional systems for cataloging, supply, procurement, supply discrepancy reports, maintenance and obsolete and nonstandard items; writes the FMS cases for CLSSAs, blanket orders, publications, Defense Logistic Agency/General Services Administration defined line and unique/nonstandard cases, modifications and amendments (comprising approximately 38 percent of the Army's FMS cases); manages the USASAC emergency operations center at New Cumberland and all related emergency and mobilization plans and exercises; conducts continuous functional reviews and analyses to improve performance of USASAC systems; and trains USASAC systems users. Other major functions include:

* Designing and maintaining functional Logic for automated interface with other DoD/Defense Agency/customer country case management systems, including; Commodity Command Standard System; Standard Depot System; Defense Automated Addressing System; Defense Security Assistance Management System; Program Budget Accounting System; Defense Integrated Financial System; and the Standard Operation and Maintenance and Research and Development System.

* Achieving effective customer support as the Army's focal point for the Supply Tracking and Reparable Return System-Personal Computer (STARR-PC); participating in improving the Military Standard Requisitioning and Issue Procedures (MILSTRIP) and Military Standard Transportation and Movement Procedures (MILSTAMP).

* The CLSSA is the avenue used by the country to "buy-into" the U.S. supply system. The inventory control points buy and prestock in anticipation of participating security assistance customer requirements so that when requisitions are received, shipment can be made. Our CLSSA customers receive the same support we provide our U.S. forces given the same priority designator.

Costs for CLSSA are between 25 to 30 percent of the value of the foreign military sales Order I (FMSO-I) plus the security supporting agency charge (5 percent of the Part A, FMSO-I). However, this initial, one-time investment (except for the security supporting agency charge which is a sunk cost) is returned when after five or twenty years the customer decides his equipment will be phased out or replaced.

Traffic management and management of the security assistance liaison officer program at New Cumberland are also prime areas of responsibility.

Traffic management entails providing consultation, advice, and training to the DoD transportation community, CPMs, CCMs, command case managers, freight forwarders, and advising DoD, Defense Agency, the Military Traffic Management Command, Air Mobility Command, and Army Materiel Command transportation officials on security assistance implications of the policies for which they are the proponent.

Under the security assistance liaison officer program, foreign liaison officers have available to them on-line access to the data base pertaining to their own FMS cases, direct access to the USASAC case managers and other key personnel in the U.S. FMS/logistics community. The program has enjoyed great success through its efforts to improve communication and cooperation between USASAC and foreign liaison officers representing Australia, Canada, Israel, Korea, Taiwan, Turkey, and the United Kingdom. It is anticipated that Greece and Kuwait will join the program. USASAC is assisting HQDA and the Major Army Commands (MACOMs) in the development of a defense agency-wide liaison officer program, based on the USASAC model. USASAC briefed representatives of the office of the DUSA-IA and the office of the Defense Agency Deputy Chief of Staff for Intelligence on the management of the USASAC security assistance liaison officer program.

Product Assurance Division

The essence of this division's mission is to develop and manage the Department of the Army executive level security assistance product assurance program. This tasking is accomplished through continuous process improvements in USASAC's Total Army Management environment. Key functions include:

* Conducting reviews and evaluations of significant problems, providing technical assistance support; developing management studies for system improvements and problem resolution; and initiating, planning, and monitoring/providing technical staffing for quality assurance teams, technical assistance teams, quick reaction teams, and customer satisfaction support teams.

* Developing and managing policies, procedures in order to maintain an effective Army level product assurance program, including providing service to security assistance customers at every tier; whether internal or external to USASAC. The divisions goals are to assure that equipment and services are in accordance with the provisions and terms of FMS cases or tasking execute orders (i.e., presidential determinations). Recent examples include providing:

** Freight forwarder liaison to resolve misdirected freight marking and packaging problems; and providing security assistance training to Defense Logistic Agency shipping activities and Defense Contract Management Area Office representatives.

** Support in the selection, delivery, and fielding of materiel in support of presidential determination programs to Jordan. For four consecutive years deliveries to Jordan were directed by the president to help modernize the Jordan armed forces. These were highly visible deliveries received by Jordan royalty and U.S. ambassador-level personnel in rollout ceremonies attended by the media.

** Technical assistance support in the excess defense supply of "as is--where is" to various countries, for example, Egypt, Greece, Argentina, Jordan, Croatia, Macedonia, and Lithuania.

Plans, Policy, and Procedures

This directorate at Alexandria provides expertise and command guidance in technical and managerial programs. It helps create a knowledgeable and efficient work force by developing and promulgating accurate, concise and clear security assistance policies and procedures as well as evaluating new and ongoing programs to ensure their effectiveness. Directorate personnel conduct periodic evaluations and continuing surveillance of security assistance activities within Army Materiel Command for compliance with DoD, Defense Agency and Army Materiel Command policy directives. The following are some key ongoing initiatives.

Bringing Policy to the Users

Security assistance policies and procedures are now at the users' fingertips. With the use of links, the Army's and Defense Security Cooperation Agency's policies are accessible through the USASAC web page at: www.amc.army.mil/amc/sac/index.htm. In the future, we will expand information on the web site to include requests for price and availability and letters of requests. We continue to upgrade our web site to support our customers with the tools they need to perform security assistance functions and transactions.

Letter of Offer and Acceptance (LOA) Policy

A LOA quality review of all Army cases (except those of the U.S. Army Corps of Engineers and the U.S. Army Training and Doctrine Command) is conducted to reduce the number of rejections by the DSCA. The daily review is comprehensive and focuses on key elements of the LOA such as line item data, mathematical calculations and notes. In fiscal year 1999, 2,067 LOAs, amendments and modifications were reviewed.

Excess Defense Articles

The USASAC manages the Army's excess defense articles program, which makes systems being phased out of Army service available to foreign military services. Economic reasons or technical capabilities of potential threats may dictate retirement of these systems from the U.S. Army. However, these systems generally have considerable utility remaining and can serve effectively in the armed forces to which they are transferred. In addition to responsibilities for the administrative and contractual procedures and the physical transfer of this materiel, USASAC manages the collection of country requirements for excess defense articles systems and participates in the process of allocation of available excess assets.

International Air and Trade Shows

USASAC is the HQDA designated lead agency for the operational planning and coordination of total Army participation in international air and trade shows. Participation is based on the approval of the Under Secretary of Defense for Policy when that office determines that either direct or indirect participation by the DoD is in the national security interest of the United States. The shows are conducted to show our support for regional security and to contribute to interoperability of equipment with coalition partners. Most shows are held every other year.

USASAC is responsible for arranging for helicopters and ground based weapon systems to attend these shows for both static and dynamic displays. Additionally, USASAC partners with AFSAC and Navy International Program Office to present a DoD technology booth at air shows to showcase service aviation technologies. In preparing for air shows we work closely with Defense Security Cooperation Agency, the Aerospace Industries Association and its member companies to have U.S. industry sponsor aircraft and fund helicopter transportation and crew support costs. The inability of Army helicopters to self-deploy to many of the distant locations requires us to work closely with the U.S. Air Force Reserve components to arrange a lift via C-5 and C-17. Our participation in many shows is dependent upon the excellent support we receive from the U.S. Air Force Reserve.

Army aviation and technology displays have been demonstrated in numerous air shows in Singapore, Seoul, Korea, Paris, France, Berlin, Germany, Vancouver, Canada, Farnborough, England, Dubai, UAE, and Melbourne, Australia.

We also participate in ground equipment trade shows in Paris, France and Abu Dhabi, UAE. We present static equipment displays and a booth to showcase Army weapon systems. In executing these shows we work closely with Defense Security Cooperation Agency, the Association of the United States Army member companies who provide funds for equipment transportation and crew support.

Systems Management and Computer Based Training (CBT)

Security assistance business process management involves oversight of the myriad systems supporting the security assistance mission of USASAC and Army Materiel Command. We accomplish this by:

* Providing leadership of a security assistance business process group.

* Sustaining security assistance legacy business applications in the Commodity Command Standard System.

* Providing functional support for the development of the new Defense Security Assistance Management System.

* Providing consultation services to process action teams or similar groups on computer systems.

* Developing CBT courses on security assistance systems and processes.

* Providing subject matter expertise for the development, implementation, and interfacing of DoD standard logistics systems that will support security assistance.

* Developing unique systems to support USASAC and the other major subordinate commands of Army Materiel Command, such as a recently completed tracking system for maintenance support arrangements.

The USASAC computer base training program supplements existing security assistance training opportunities by offering courses specific to Army processes and realistic system simulation. Eight courses have been developed and are available to interested individuals. The course topics are, security assistance overview, reports of discrepancy, transportation, security assistance management acquisition program, requisition preparation and processing, M204 system case development (includes a hard copy job aid), supply/shipment status processing and security assistance logistics data.

Defense Security Assistance Management System

In December 1998, the Army implemented the DSAMS case development module, the first portion of the DSAMS project. The DSAMS allows the FMS process to be standardized among the three services. The first module permits the online preparation of the basic LOA and any amendments or modifications. Case writers, country program managers and the central case manager can now use the same database to prepare and manage their cases.

The implementation of report distribution software into the USASAC automated computer environment significantly reduces the requirement for hardcopy reports and FMS documents. This effort enables system users to view reports and LOAs from their desktop terminal screen, manipulate the information into various formats and, if hardcopy was absolutely required, print only those portions of data that were needed in lieu of the entire report. The case implementation module was deployed in August 2000. This module provides capability for lease preparation, management flags/alerts and financial implementation for FMS cases.

The Iran Special Project Office

Iran's EMS program began in 1963 with only five cases. Throughout the late 1960s and early 1970s, Iran's purchases escalated and by 1972 Iran had opened over 800 FMS cases. Between 1972 and 1978, Iran opened almost 1,800 FMS cases, an average of more than 255 cases a year. When the government of Iran took U.S. hostages in February 1979, all diplomatic relations were broken. The government of Iran filed a claim against the U.S. in November 1981 to dispute 505 Army cases.

USASAC is providing assistance to the Department of State in defense of the U.S. position supporting the Iran Tribunal in the Hague, Netherlands. Currently, there are four logistics management specialists dedicated to the project. They provide logistical expertise in record searches, data compilation, Defense Finance and Accounting Service billing lines and imaging and encoding of logistical forms used to process Iran's FMS cases. The U.S. Army has also allocated a Judge Advocate General officer who works in conjunction with the Department of State lawyers. Their main focus is to compile and submit the claim rebuttal to the tribunal of judges. There is a full tribunal which includes judges from various countries that preside over the case. To facilitate the amount of time it consumes to inventory retired record collections, USASAC has three contractors to assist with the process.

Resource Management and Financial Support

The Resource Division at Alexandria, Virginia, provides security assistance financial policy and procedures and, manages the Army Material Command security assistance budgets and manpower. Primary responsibilities include the following:

* Develops, implements, interprets and evaluates financial security assistance policy and procedures. Ensures that DoD new financial policy and procedures are acceptable to current systems. Serves as the focal point for presidential drawdowns and peacekeeping operations funding requirements.

* Reviews and process nonrecurring costs and other pricing requests and, reports collections of nonrecurring costs to higher headquarters.

* Reviews, analyses, summarizes, consolidates and defends Army Materiel Command activities' budgetary data and program requirements to ensure essential requirements are included in the Army budget. Monitors budget execution to ensure proper and efficient use of funds.

* Reviews and analyses security assistance manpower data and reports security assistance manpower data to higher headquarters.

* Serves as the Army Materiel Command resource integration committee member and resource advisory committee member to address Army Materiel Command security assistance resources issues and matters.

The Financial Support Office at New Cumberland, Pennsylvania, provides important financial support to USASAC's FMS case and other security assistance program management missions through:

* Management of security assistance life cycle financial processes, including case implementation, funds distribution-order control, order processing, and case closure.

* Centralized control of billing and delivery reporting on Army EMS cases.

* Execution of financial operations for special presidential drawdowns, International Military Education and Training programs and EMS cases.

* Providing financial guidance and assistance to USASAC case managers.

* Providing financial systems support for accounting and other financial systems used by USASAC.

* Execution of a financial quality assurance program.

* Maintenance, augmentation and improvement of financial sectors of FMS automated data bases.

* Serving as the management accounting office representing USASAC with Department of the Army and Army Materiel Command on accounting issues.

Information Management

The command's information management programs are hailed throughout the DoD security assistance community as the pacesetters in FMS customer support. The Information Management Division provides Army Materiel Command, USASAC, and foreign countries with automation support for the information areas of automation, communications, visual information, and records management.

The division is organized in two information management teams, one each at Alexandria and New Cumberland. Their major functions include:

* Maintaining an auditable, accountable, and accurate U.S. Army FMS database containing logistical, case management and financial data.

* Providing the automation necessary for the real-time update of the Army FMS database, the on-line development of FMS cases, the electronic transmission of cases from the major subordinate commands and the ad hoc querying of the database information.

* Providing the automation, communications and system interfaces linking USASAC, the major subordinate commands, minor implementing agencies, SALOs, security assistance organizations and other DoD agencies.

* Acquiring all computer hardware, software and services for USASAC, the major subordinate commands and minor implementing agencies.

* Supporting the automation efforts of the total USASAC family of users by managing the office automation systems, providing customer support through training, problem identification and resolution.

* Providing full visual information and records management support services to the command.

* Managing the automation functions of the STARR-PC, which is a system developed to provide the USASAC country customer with an automated database for requisition submission and tracking. Through STARR-PC, customers have the ability to establish requisitions in their local database and transmit them to USASAC on a daily basis. USASAC in turn provides daily status changes to requisitions to the customer. The STARR-PC provides real-time visibility of requisition status. The International Logistics Communication System (ILCS) through the Defense Automated Addressing System Center is the communication link for the STARR-PC System. The latest version of STARR-PC2 was released for distribution to FMS customers beginning in June 1999.

Information Management Environment

The current USASAC information technology (IT) environment consists of a wide range of technologies and processes. Which designed, tested, implemented and supported by the division. The most visible component the Information Management Division provides is personal computer support. However, the division also supports a wide range of other information technology systems.

The information Management Division at USASAC supports approximately 400 users on two client-server based Windows NT server local area networks at Alexandria and New Cumberland, that are connected in a wide area network configuration via dedicated high-speed links. The wide area network uses 100MB Ethernet and 1GB fiber cabling internally at each office.

The typical USASAC user has a desktop computer using the Windows NT Workstation 4.0 operating system. The Information Management Division has standardized on Microsoft Office 97 Professional for word processing, spreadsheet, graphics and stand-alone database applications. Lotus Notes 4.6.6b is used for e-mail at this time. A suite of other applications are used by country case managers and human resources professionals. In addition to desktop computer support, the Information Management Division configures and distributes IBM ThinkPad laptop computers to users who require the ability to compute remotely. The Information Management Division supports remote e-mail capability for these users via dial-up connections with TSACS.

Users have access to the world wide web via a T-1 line connected to the NIPRNET. This allows the USASAC user to communicate with co-workers and business partners throughout the world. Several applications used by country case managers and human resources professionals are hosted at remote sites at various commands. USASAC users connect to these applications via the NIPRNET with the TCP/IP protocol stack (the language of the Internet).

Our goal is to provide 100-percent uptime so that USASAC employees have computing tools at their ready access. A second, and no less important, goal is that the USASAC employee has a user-friendly computing environment and world-class support when needed. The division includes a help desk staffed by six professionals. The USASAC user has access to a customized Lotus Domino application to submit help desk requests. The help desk requests are typically acted on within one hour. A tracking system is used to identify trends. This allows the Information Management Division to plan training for users and to consider upgrades and enhancements.

The command seeks to keep USASAC's network up to date with current technology. At the same time, however, the Information Management Division seeks to maintain a reliable network. Thus, when planning for the future, all upgrades or technology changes must go through a rigorous screening and testing process. To assure reliability, the division hosts a test network that mirrors the command's production environment. That is used to test and evaluate new technologies. When upgrades or technology changes are considered or implemented, how this affects the user's ability to perform his/her duties is always considered. Additionally, the Information Management Division maintains a network knowledge base indexed by keyword. Engineers in the division are able to query the network knowledge base for configuration and historical data. The division also maintains a server work log. Every modification to the USASAC network is entered into the server work log, thus tracking of all changes to the network so that changes can be reversed if needed.

Other duties of the Information Management Division include supporting an integrated services digital network video teleconferencing system in both offices. The video teleconferencing system provides USASAC's customers with remote meeting capabilities, reducing travel costs and increasing employee productivity. The video teleconferencing system is used extensively.

Recent Initiatives

The command recently purchased eight high-capacity, high-speed, scalable network servers. Of the eight servers, four have been installed, configured and tested and are currently in production. The installation of these new servers will increase the speed and capacity of USASAC's LAN.

To ensure reliability, and as part of an overall disaster recovery program, the division recently purchased high-speed, high-capacity tape backup units, along with tape backup software that can track and manage multiple tapes. The new tape backup system has been tested and implemented. In the event of a catastrophe with USASAC's network, the new tape backup system will allow restoration of data, and the lifeblood of any data-intensive organization such as USASAC in a compressed time frame. The tape backup solution is monitored daily and to ensure data survivability, several test restores are performed weekly.

The USASAC provides technology solutions for users with disabilities such as vision and hearing impairments. Recently, the Information Management Division implemented the Job Access with Speech (JAWS) vision enhancement software to be used by USASAC employees with low vision. A USASAC help desk professional evaluated the JAWS software solution and implemented it in the New Cumberland location. Job access with speech provided a marked improvement compared to the solution that had been in use. For USASAC users with hearing difficulties, the Nexttalk software solution is used.

Messaging (e-mail) is a mission-critical application at USASAC, and the Information Management Division expends significant resources supporting messaging. The DoD is revamping messaging by requiring all commands to implement the Defense Messaging System (DMS). Slated to replace AUTODIN, the Defense Messaging System provides for encrypted, guaranteed-delivery, time-priority messaging.. The Information Management Division is currently preparing its environment for deployment of Defense Messaging System, which is being deployed on Microsoft Exchange 5.5 Server, Defense Messaging System Version. The USASAC user will receive a Defense Messaging System version of Microsoft Outlook to serve as the desktop e-mail client. USASAC has installed the Defense Messaging System version of Exchange in both locations and is currently testing the system.

For USASAC and the Information Management Division, security of information technology systems is the most important issue. At present, USASAC is involved in the DoD Information Technology Security Certification and Accreditation Process (DITSCAP). USASAC is operating under an document of interim approval and is in the process of meeting the certification for DITSCAP. This establishes a standard process, set of activities, general task descriptions, and a management structure to certify and accredit information technology systems within DoD. The process is designed to certify that the information technology system meets the accreditation requirements and that the system will continue to maintain the accredited security posture throughout the system life-cycle. Every software and hardware item used in USASAC's network must meet DITSCAP.

In the area of asset management, the division is currently implementing Microsoft System Management Server 2.0. This solution will be used to inventory all hardware and software on the USASAC network. In addition to SMS, a Lotus Domino application is being created that will track warranties, purchase information, system inventory, and other key management tools for all hardware and software. The application is being written so that it can automatically notify a designee when a warranty is scheduled to expire, plus when a USASAC employee contacts the help desk, the staff is able to locate the caller's asset records.

International Industrial Cooperation

Coproduction Programs

Coproduction enables an eligible foreign government to acquire the know-how to manufacture or assemble weapons, communications or support systems for its own forces. The USASAC currently has thirty-one active government-to-government coproduction programs with fourteen countries plus NATO with an estimated program value of over $26 billion. Examples of weapon systems involved in successful coproduction programs include the Multiple Launch Rocket System, the M109 self-propelled howitzer, M1A1 Abrams tank and the Patriot, Hawk, Stinger, Hellfire, TOW and Dragon missile systems.

Over the last two years, USASAC's Office for International Industrial Cooperation concluded thirteen coproduction agreements, including new memoranda of understanding (MOU), amendments to existing agreements, and implementing arrangements. These agreements included many of the weapon systems mentioned above plus the Black Hawk helicopter, Air-to-Air Stinger (Block I) launcher, Hydra 70 rocket system and Modular Forward looking Infrared common modules. In addition to these concluded agreements, we are also currently working on fifteen other coproduction requests and agreements in various stages of evaluation, development, staffing and negotiation. The more significant of these requests/agreements include major upgrades and improvements to the Patriot missile system and the acquisition-coproduction of main battle tanks.

Coproduction is becoming a more popular alternative, as well as a requirement, of foreign governments acquiring U.S. weapon systems. Coproduction not only strengthens the armed forces of our allies through the acquisition of U.S. weaponry, but also increases their technology base and industrial defense capabilities. At the same time, coproduction promotes standardization and interoperability of weapon systems with U.S. forces, thereby benefiting the U.S. as well as our allies.

Export License Review Program

Export licenses authorize U.S. industry to export defense articles and services as specified by the State Department's International Traffic in Arms Regulation. Those exports often complement government-to-government foreign military sales via the security assistance program. The Office of Defense Trade Controls in Department of State has overall U.S. government responsibility for approving export licenses. Selected licenses are referred to DoD, the Defense Threat Reduction Agency, and, if related to Army weapon systems, to the Army for a releasability recommendation. USASAC serves as the Army's executive agent for managing development of the Army's recommended position.

The DUSA-IA has management oversight of the application of Army policy regarding the Army's munitions control program, including dual-use cases. The DUSA-IA has assigned responsibility for the responsibility to the USASAC for managing development of the Army's recommended positions. In fiscal year 2000, USASAC reviewed about 4,000 licenses.

The proposed Army position for direct commercial exports is developed using numerous considerations (same as those used for assessing a FMS offer), e.g., security classification, level of technology, previous releases, foreign availability, potential applications, impact on the industrial base, and potential interference with U.S. Army requirements. In addition, if the proposed export is for technical data, it is reviewed to determine the ownership and rights of the technical data to be transferred. If coproduction or licensed production is involved, the extent to which the U.S. defense production base would be affected by transferring production to foreign firms is assessed.

Foreign Disclosure Program

The USASAC, through its foreign disclosure officer, assesses the releasability of classified military information, and controlled unclassified information for all Army foreign military sales programs. In order to ensure that an accurate disclosure review of each potential security assistance program is accomplished, the foreign disclosure officer follows a consistent set of procedures:

* A review of national disclosure and Army export policies begin the procedure. This review is performed by country or system using the appropriate delegation of authority letter for specific guidance.

* The review continues by an analysis of the appropriate security classification guides, and if required, the military critical technology list, DoD Directives, and Army regulations. A review of data bases in the DoD Foreign Disclosure and Technical Information System, and the Army's Technology Transfer Decision Support System, assist in the decision making process for most disclosure issues.

The foreign disclosure officer continues to monitor advances of U.S. technology through the maintenance of security classification guides, attendance in meetings with industry, and a constant dialogue with all agencies involved in international relations. Through these efforts, USASAC is able to manage the transfer of technology to allies and friends for its FMS programs.

Partnering with Industry

An additional positive aspect of FMS is support of the U.S. defense industrial base. The production lines for many critical Army systems are almost solely dedicated to FMS; for every $1 billion dollars in sales generated, about 22,000 U.S. jobs are created or sustained.

Partnering agreements are a tool to further strengthen communications, resolve conflicts at the lowest levels, and streamline materiel acquisition and EMS processes to pave the way for international sales of U.S. products. And as we enter the twenty-first century, there are very few nations that can afford unique, independent defense industrial capability. International armaments cooperation, admittedly a complex and challenging business, represents a great opportunity for U.S. business.

We know that the U.S. defense industry is a key, indispensable partner in America's security assistance program. The top five U.S. defense firms, Lockheed-Martin, Boeing, Raytheon, United Defense, and General Dynamics, were formed from more than fifty different firms after the fall of the Berlin Wall. In the wake of consolidation, the security assistance community is working to ensure competition and affordable pricing in EMS. Security assistance managers at the commodity commands, such as the U.S. Army Aviation and Missile Command and the U.S. Army Communications-Electronics Command, are striving to obtain the best price for our allies and coalition partners. We believe that it is incumbent upon us to achieve significant cost savings for our EMS allies including the best initial cost, the best case management and the best follow-on support which are all hallmarks of U.S. assistance.

Industry--Defense Trade Dialogue

In addition to reaching out to international customers and to the government organizations to increase feedback and ultimately improve customer satisfaction, USASAC has an active outreach program with U.S. industry. The USASAC management frequently meets with industry representatives to identify any areas and issues where either party can take action to improve defense trade.

We participate in the National Defense Industrial Association's U.S. Industry Committee for Army International Programs. The bimonthly meetings of this industry-led committee serve as a valuable source of feedback from industry on real-time issues. In addition, the commander speaks on the vital role of security assistance to our national security and foreign policy objectives at association-sponsored and industry-sponsored conferences around the world.

Other government-industry forums in which we participate include quarterly AMC-chief executive officer industry meetings and the annual "Atlanta Conference," both of which bring senior government and industry executives together to discuss a wide variety of topics, including international defense trade issues.

Conclusion

USASAC today is more important than ever, as post-Cold War downsizing continues to erode the defense budgets of our traditional NATO and Western allies, reducing their ability or desire to support large-scale modernization programs. Emerging nations, including former Soviet Bloc countries, lack the economic wherewithal to build modem equipment and technologically advanced weapon systems.

Most Third World nations are constrained even further by economic and political factors that limit the amount of money they can spend on defense. As we enter the twenty-first century, the United States stands alone in its capability to modernize its armed forces with increasingly sophisticated weapons. Our efforts in security assistance leadership are aimed at strengthening our allies' defensive capabilities, developing viable economies and building democratic governments the bedrocks of prosperity and freedom. Moreover, security assistance serves America's soldiers by reducing the need to deploy to fight regional conflicts. And FMS helps sustain our industrial base by generating economic production rates, which make our systems affordable for our Army and for our allies.

We at USASAC have assessed these challenges, and we know that to be successful in our competitive environment we must remain true to our vision as the pacesetter in DoD security assistance and our customers' choice in support and satisfaction. The key to these goals is our professional work force, focused on increased efficiency, continuous process improvement, operational streamlining, and functional consolidation. This is our survival guide. We will, with our partners in AMC and industry, strive to offer our customers imaginative and creative foreign sales agreements the total package aimed at total customer satisfaction. Security assistance and FMS remain effective and indispensable instruments of U.S. foreign policy far more so than in 1965.

Today, as we reflect and build upon a superb legacy of patriotism, professionalism, and dedication, the U.S. Army Security Assistance Command continues to lead America and its friends toward allied strength in cooperation.

Major General Bruce K. Scott is the Commanding General, U.S. Army Security Assistance Command. Prior to assuming command of USASAC in October 1999, he was the Chief of Legislative Liaison on the Army Staff. He is a graduate of the United States Military Academy and holds master's degrees from Harvard University and the Universitat Freiberg, Federal Republic of Germany.

Ken Spalding is the USASAC Public Affairs Officer. He is a graduate of Towson University, Towson, Maryland.

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.