Defense Security Cooperation Agency
Encyclopedia
The Defense Security Cooperation Agency (DSCA), as part of the United States Department of Defense
(DoD), provides financial and technical assistance, transfer of defense matériel
, training and services to allies, and promotes military-to-military contacts.
Security Cooperation (SC) is founded on a tradition of cooperation between the United States
and other sovereign nation
s with similar values and interests in order to meet common defense goals. It consists of a group of programs authorized by the U.S. Foreign Assistance Act
of 1961, as amended, and the Arms Export Control Act
, as amended, and related statutes by which the DoD or commercial contractor provide defense articles and services in furtherance of national policies and objectives.
(FMS) and International Military Education and Training
(IMET) are two key programs included within Security Cooperation. IMET is conducted solely on a grant basis. FMS can be conducted through direct payments of foreign states or United States Foreign Military Financing
(FMF).
Foreign Military Sales division is the core activity of DSCA, and yearly sales are between US$
30 and US$40 billion. FMS is a U.S. government to foreign government agreement, and DSCA acts as agent for procurement mostly for American defence company
and aerospace companies or for DoD stocks. FMS is managed and operated by DoD on a no-profit and no-loss basis. Countries participating in the program pay for defense articles and services at prices which recoup costs incurred by the United States. This includes a fee ($15,000, or 3.8% of item and service cost, whichever is greater) to cover the cost of administering the program.
When defense articles or services are required, the requesting country's representative in the defense establishment of the country or stationed at the embassy in the U.S. provides a letter of request
(LOR) to the representative's U.S. counterpart. The U.S. counterpart forwards an information copy of the request to the Department of State (DoS) Bureau of Politico-Military Affairs and the Defense Security Cooperation Agency (DSCA). The original is furnished to the DoD Military Department (MILDEP – Army
, Navy, or Air Force) or Defense Agency which will prepare the response.
The response may be in the form of Price and Availability (P&A) information or a letter of Offer and Acceptance
(LOA). Due to a shorter preparation and staffing cycle, P&A is normally used only for preliminary planning purposes. The LOA is a formal offer which, when accepted, forms the basis for the U.S. to provide the materiel and services offered.
Defense articles, including major defense systems, subsystems, support equipment, repair parts, and publications are provided under Security Cooperation. Services, including training in U.S. military schools or through mobile training teams, construction, engineering, contract administration, program management, technical support, and repair are also provided. Due to interest in encouraging standardization and interoperability among U.S. and SC countries, FMS normally involves the transfer of those items which have been fielded with U.S. forces. While available through FMS, nonstandard articles or services are normally acquired commercially.
Under certain conditions, cooperative programs such as coproduction and co-assembly under international agreements, technical assistance services, technical data, and leases of defense items are available.
United States Department of Defense
The United States Department of Defense is the U.S...
(DoD), provides financial and technical assistance, transfer of defense matériel
Materiel
Materiel is a term used in English to refer to the equipment and supplies in military and commercial supply chain management....
, training and services to allies, and promotes military-to-military contacts.
Security Cooperation (SC) is founded on a tradition of cooperation between the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
and other sovereign nation
Sovereignty
Sovereignty is the quality of having supreme, independent authority over a geographic area, such as a territory. It can be found in a power to rule and make law that rests on a political fact for which no purely legal explanation can be provided...
s with similar values and interests in order to meet common defense goals. It consists of a group of programs authorized by the U.S. Foreign Assistance Act
Foreign Assistance Act
The Foreign Assistance Act is a United States Act of Congress. The Act reorganized the structure of existing U.S. foreign assistance programs, separated military from non-military aid, and created a new agency, the United States Agency for International Development to administer those...
of 1961, as amended, and the Arms Export Control Act
Arms Export Control Act
The Arms Export Control Act of 1976 gives the President of the United States the authority to control the import and export of defense articles and defense services. It requires governments that receive weapons from the United States to use them for legitimate self-defense...
, as amended, and related statutes by which the DoD or commercial contractor provide defense articles and services in furtherance of national policies and objectives.
Foreign military sales (FMS)
Foreign military salesForeign Military Sales
The U.S. Department of Defense's Foreign Military Sales program facilitates sales of U.S. arms, defense equipment, defense services, and military training to foreign governments...
(FMS) and International Military Education and Training
International Military Education and Training
International Military Education and Training is the title of a United States security assistance program, a type of student exchange program. The policies underlying this program are directed by the United States Department of State's Bureau of Political-Military Affairs and the constituent...
(IMET) are two key programs included within Security Cooperation. IMET is conducted solely on a grant basis. FMS can be conducted through direct payments of foreign states or United States Foreign Military Financing
United States Foreign Military Financing
The Foreign Military Financing program provides grants and loans to help countries purchase weapons and defense equipment produced in the United States as well as acquiring defense services and military training. FMF funds purchases are made through the Foreign Military Sales program, which...
(FMF).
Foreign Military Sales division is the core activity of DSCA, and yearly sales are between US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
30 and US$40 billion. FMS is a U.S. government to foreign government agreement, and DSCA acts as agent for procurement mostly for American defence company
Defense contractor
A defense contractor is a business organization or individual that provides products or services to a military department of a government. Products typically include military aircraft, ships, vehicles, weaponry, and electronic systems...
and aerospace companies or for DoD stocks. FMS is managed and operated by DoD on a no-profit and no-loss basis. Countries participating in the program pay for defense articles and services at prices which recoup costs incurred by the United States. This includes a fee ($15,000, or 3.8% of item and service cost, whichever is greater) to cover the cost of administering the program.
When defense articles or services are required, the requesting country's representative in the defense establishment of the country or stationed at the embassy in the U.S. provides a letter of request
Letter Rogatory
A letter rogatory or letter of request is a formal request from a court to a foreign court for some type of judicial assistance. The most common remedies sought by letters rogatory are service of process and taking of evidence.-Service of process:...
(LOR) to the representative's U.S. counterpart. The U.S. counterpart forwards an information copy of the request to the Department of State (DoS) Bureau of Politico-Military Affairs and the Defense Security Cooperation Agency (DSCA). The original is furnished to the DoD Military Department (MILDEP – Army
United States Army
The United States Army is the main branch of the United States Armed Forces responsible for land-based military operations. It is the largest and oldest established branch of the U.S. military, and is one of seven U.S. uniformed services...
, Navy, or Air Force) or Defense Agency which will prepare the response.
The response may be in the form of Price and Availability (P&A) information or a letter of Offer and Acceptance
Offer and acceptance
Offer and acceptance analysis is a traditional approach in contract law used to determine whether an agreement exists between two parties. Agreement consists of an offer by an indication of one person to another of the offeror's willingness to enter into a contract on certain terms without...
(LOA). Due to a shorter preparation and staffing cycle, P&A is normally used only for preliminary planning purposes. The LOA is a formal offer which, when accepted, forms the basis for the U.S. to provide the materiel and services offered.
Letter of Offer and Acceptance (LOA)
LOAs take three forms:- Defined Line. Certain articles and services can be provided only on Defined Line LOAs, which offer items at an individually estimated price and availability. The Defined Line LOA requires that the item or service be requested in an LOR, that an LOA be developed and implemented, and that normal contracting be completed prior to article or service delivery.
- Blanket Order. Most repair parts and routine services can be offered under Blanket Order LOAs. These LOAs include a range of items or services up to a specific dollar value. Once established, the Blanket Order LOA requires only the processing of an order and contracting for the item or service, thus reducing the time needed for administrative processing.
- Cooperative Logistics Supply Support Arrangement (CLSSA). Under the CLSSA, the purchaser owns a share of the U.S. logistics pipeline for support of specified end items. This allows supply of repair parts without waiting for completion of the procurement cycle. CLSSAs are normally established for countries with well-developed logistics systems and with larger quantities of end items to be supported.
Defense articles, including major defense systems, subsystems, support equipment, repair parts, and publications are provided under Security Cooperation. Services, including training in U.S. military schools or through mobile training teams, construction, engineering, contract administration, program management, technical support, and repair are also provided. Due to interest in encouraging standardization and interoperability among U.S. and SC countries, FMS normally involves the transfer of those items which have been fielded with U.S. forces. While available through FMS, nonstandard articles or services are normally acquired commercially.
Under certain conditions, cooperative programs such as coproduction and co-assembly under international agreements, technical assistance services, technical data, and leases of defense items are available.
Regional centers
DSCA has five regional centers. They are:- The Africa Center for Strategic Studies
- Asia-Pacific Center for Security StudiesAsia-Pacific Center for Security StudiesThe is a United States Department of Defense regional study, conference, and research center established in Honolulu, Hawaii, United States on September 4, 1995. The Center supports the United States Pacific Command theater security cooperation strategy of maintaining positive security...
- George C. Marshall European Center for Security StudiesGeorge C. Marshall European Center for Security StudiesThe George C. Marshall European Center for Security Studies is a unique U.S. Department of Defense and German Defense Ministry security and defense studies institute...
- Center for Hemispheric Defense Studies, and
- Near East South Asia Center for Strategic Studies.