Mr. Richard Alpaugh, Deputy to the CommanderUnited States Army Security Assistance Command

USASAC PRESENTATION FORWorld Trade Day, 12 Apr 07

• Assistance Under:

MILITARY EDUCATION AND TRAINING PEACEKEEPING OPERATIONS COUNTER-TERRORISM ASSISTANCE COUNTER-NARCOTICS ASSISTANCE

• Sales of Articles and Services

GOVERNMENT TO GOVERNMENT (FMS) DIRECT COMMERCIAL SALES (DCS)

• Military Financing Program

What Does Security Assistance Provide?

• One of the principal elements of the U.S. Foreign Policy

• Regulated by:

FOREIGN ASSISTANCE ACT ARMS EXPORT CONTROL ACT

• Executed by the Department of Defense under Department of State oversight

• Designed to promote regional stability

• Supports mutual goals and objectives

Why Security Assistance?

• The President certifies eligible countries

• The relationship with the purchasing country is crucial … The U.S. desires more than just a simple seller and buyer relationship • Each sale is made in accordance with the policies and strategic interests of the U.S. Government

The U.S. Government will neither make nor lose money

• DoD promotes the acquisition of standard service configurationU.S. industry does the marketing

• The U.S. Government has no preference between military sales and commercial sales

The U.S. Armed Forces have priority

• Material is either shipped from U.S. Government stocks or from production

Our goal is to field a total package and promote self-sufficiency

Military Sales Policies

FMS Business

• Sales - $13.5B (FY04) - $10.6B (FY05) - $20.9B (FY06)

• Deliveries - $12.5B (FY06)

• Open Cases - 11,965 / $239.3B (12/06)

FMS Business

• Sales - $13.5B (FY04) - $10.6B (FY05) - $20.9B (FY06)

• Deliveries - $12.5B (FY06)

• Open Cases - 11,965 / $239.3B (12/06)

Grant Assistance

• FMF - $4.491B (FY06)

- $4.551B (FY07 request)

• IMET - $86.149M (FY06)

- $88.90M (FY07 request)

~ 130 Countries

~ 8,000 Students

Grant Assistance

• FMF - $4.491B (FY06)

- $4.551B (FY07 request)

• IMET - $86.149M (FY06)

- $88.90M (FY07 request)

~ 130 Countries

~ 8,000 Students

Other Programs

•Humanitarian Assistance•$38.2M (FY06/07 est) 100+ countries - $40.0M (FY07/08 est.)

•Disaster and Emergency Response•$75.7M (FY06/07 est) - $17.9M (FY07/08 est.)

•Humanitarian Mine Action•$6.5M (FY06/07 est) - $5.0M (FY07/08 est.)

•Global Peace Operations Initiative•$100.384M (FY06) - $102.575 (FY07 est.)

•Warsaw Initiative

•$27.6M (FY06) - $31.0M (FY07 est.)

•Building Partner Capacity (Sec 1206)•$100.3M executed FY06

•Excess Defense Articles FY06•$219.9M Grants Offered ($14.9M FMS Offered)

•Regional Centers•$68M (FY06) ~ 5,900 participants - $63.9M (FY07 est.)

•Drawdowns•Sec 506 Emergency (Pakistan—Dec 05: $30M)•Special (Afghanistan Support—Feb 06: $17M)

•Regional Defense Counterterrorism Fellowship•$19.8M (FY06) ~3000 participants- $18.7M (FY07 est.)

Other Programs

•Humanitarian Assistance•$38.2M (FY06/07 est) 100+ countries - $40.0M (FY07/08 est.)

•Disaster and Emergency Response•$75.7M (FY06/07 est) - $17.9M (FY07/08 est.)

•Humanitarian Mine Action•$6.5M (FY06/07 est) - $5.0M (FY07/08 est.)

•Global Peace Operations Initiative•$100.384M (FY06) - $102.575 (FY07 est.)

•Warsaw Initiative

•$27.6M (FY06) - $31.0M (FY07 est.)

•Building Partner Capacity (Sec 1206)•$100.3M executed FY06

•Excess Defense Articles FY06•$219.9M Grants Offered ($14.9M FMS Offered)

•Regional Centers•$68M (FY06) ~ 5,900 participants - $63.9M (FY07 est.)

•Drawdowns•Sec 506 Emergency (Pakistan—Dec 05: $30M)•Special (Afghanistan Support—Feb 06: $17M)

•Regional Defense Counterterrorism Fellowship•$19.8M (FY06) ~3000 participants- $18.7M (FY07 est.)

Scope of DoD Security Cooperation Programs

U.S. ARMY

- POLICY -Deputy Assistant Secretary of the Army for

Defense Exports & CooperationRosslyn, VA

- CONUS TRAINING -Security Assistance

Training Field ActivityFt. Monroe, VA

- OCONUS TRAINING -

Security Assistance Training Management

OrganizationFt. Bragg, NC

Security Assistance Command

Ft. Belvoir, VA

Life Cycle Management Commands

Security Assistance Management Directorates

Medical Management

Activity

- MATERIEL -Army Materiel

CommandFt. Belvoir, VA

- MEDICAL - Office of the

Surgeon GeneralWashington, DC

- ENGINEER - Corps of

EngineersWashington, DC

- TRAINING - Training & Doctrine

CommandFt. Monroe, VA

U.S. Army Organization for Security Assistance

Legend:

Command

Coordination / LOA Tasking

COMMANDING GENERALBG Clinton T. Anderson

DEPUTY TO THECOMMANDER Richard Alpaugh

CHIEF OF STAFFCOL Green

OPM-SANGBG McCabe

(Saudi Arabia)

Program

Operations Directorate

Russell Neydl

Resource ManagementCliff Crivello

Information ManagementGarnetta Beal

Security and Safety

Walt Gibble

SGSDala Cassedy

Building Managementand Logistics (Belvoir)

Charles Sims

DirectorPlans, Policy And Weapons

COL Lacina

Principal Director Regional Opns COL Mitchell

Management Office

John Neil

United States Army Security Assistance Command

AMC Security Cooperation SAMD-TACOM

EUCOMLiaison

SAMD-JMCSAMD-JMC SAMD-AMCOM

SAMD-CECOM

USASACUSASAC - Ft Belvoir - Ft Belvoir - New Cumberland - New Cumberland - St. Louis- St. Louis - Saudi Arabia- Saudi ArabiaLiaison Offices with COCOM’sLiaison Offices with COCOM’s

USASACUSASAC - Ft Belvoir - Ft Belvoir - New Cumberland - New Cumberland - St. Louis- St. Louis - Saudi Arabia- Saudi ArabiaLiaison Offices with COCOM’sLiaison Offices with COCOM’s

Saudi Arabia(PM SANG)

SOUTHCOMLiaison

PACOMLiaison

IraqLiaison

AfghanistanLiaison

USASAC Mission• USASAC serves as the Army Executive

Agent for Security Assistance materiel and services programs in support of US National interests

• USASAC has “Lifecycle Management” responsibility for all SA activity from Pre-LOR and Case Development through Case Execution and Case Closure

• USASAC serves as the proponent for the Army SA Information Management and Financial Policy

• USASAC provides policy and procedural direction to the Army SA community

• USASAC serves as the proponent for AMC SA Financial and Budget Execution

• USASAC serves as the Army Executive Agent for Security Assistance materiel and services programs in support of US National interests

• USASAC has “Lifecycle Management” responsibility for all SA activity from Pre-LOR and Case Development through Case Execution and Case Closure

• USASAC serves as the proponent for the Army SA Information Management and Financial Policy

• USASAC provides policy and procedural direction to the Army SA community

• USASAC serves as the proponent for AMC SA Financial and Budget Execution

Army FMS is a link to 140 different Armies, 47 Air Forces, 26 Navies and 26 other country entities.

Army FMS is a link to 140 different Armies, 47 Air Forces, 26 Navies and 26 other country entities.

AMC Security CooperationAMC Security Cooperation USASAC-Army’s Face To The WorldUSASAC-Army’s Face To The World

The Bottom Line:

Managing 3791 cases with an undelivered value of $16.5B

Total program value, $60B – average $3.6B in annual sales. (Total sales for FY 06 -- $5.4 Billion).

32 Co-Production Programs - with over $32 Billion dollar program value.

119 Security Assistance Offices World Wide

“…to facilitate Interoperability with allied and coalition partners and supported U.S. national security interests (Political, Military, Economic…)” Specified task – Foreign Military Sales (ST-FMS) – Army Campaign Plan Task

Security Assistance in Support of Security Assistance in Support of US Army ObjectivesUS Army Objectives

“ How can we leverage FMS to help sustain critical product lines to surge production capability quickly to meet sudden warfighter requirements?”Institutional Army Task Force –task from VCSA

“…proactive Engagement….COCOM focus”Gen Griffin, AMC Commander

A collaborative Partnership with USASAC, the Army Acquisition Community, and the Defense Industry

Commander’s BRAC Guidance

• Relocate USASAC HQ and USASAC Finance St. Louis to Redstone Arsenal in accordance with BRAC law

• People First • Minimize disruption to the Mission • Keep the Workforce informed• Keep the Customer Informed • Maintain Command Identity/recognition to the

International Customer • Use BRAC and LEAN to, where possible, consolidate

Business Functions and Organizations/Offices

198 authorized to move from Ft Belvoir and St Louis to Redstone Arsenal

USASAC BRAC DemographicsUSASAC BRAC Demographics

46.45% Men53.54% Women

Hispanic males 1.6%Hispanic females 1.14%White males 32.05%White females 40.73%Black males 6.86%Black females 1.37%

Employees with targeted disabilities 1.14%Reportable disabilities 6.4%

Senior pay level positions 3.46%Miscellaneous Administration/and Program management 48.03%

Average Grade level 10.5

6 Military Total

Based on last BRACsurvey 30% transferring

Average Age 49.6

High School 35%Some College 24%Associate Degree 8%Bachelor Degree 24%Masters Degree 9%

FMS Worldwide Impact

• Enhances POL-MIL Ties

• Provides for Military Compatibility and Interoperability

• Enhances Defense Industry Interest of Both Nations

• Reduces Production Costs

• US Army (and DOD) Strong Advocates for US Industry

USASAC - - Army’s Face to the World

USASAC - - Army’s Face to the World

www.usasac.army.mil

Rick.alpaugh@us.army.mil

5701 21st Street, Fort Belvoir, VA

Questions???