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BLOC > Module 5 (Foreign Military Sales) > Flashcards

Module 5 (Foreign Military Sales) Flashcards

1
Q

is one of the components of the US Security Assistance Programs pursuant to US Foreign Assistance Act (FAA) of 1961.

A

US Foreign Military Sales (FMS) Program

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2
Q

is a group of programs authorized by the US Foreign Assistance Act (FAA) and Arms Export Control Act (AECA) or other related statutes by which the US provides defense articles, military training and other defense related services by grant, credit, cash sale, lease or loan to its partner nation.

A

US Security Assistance Programs (US SAP)

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3
Q

US Security Assistance Programs (US SAP) strictly implements no assistance to oppositions of US Foreign Policy, such as:

A
  • Violation of Human Rights
  • Communist Countries
  • Grants sanctuary to International Terrorists
  • Discrimination against US Personnel
  • Delivers/Receives nuclear materials
  • No adequate steps to stop drug trafficking
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4
Q

What are the Components of US Security Assistance Programs (US SAP):

A
  • Economic Support Fund
  • Leases
  • Emergency Drawdowns
  • Third-Country Transfer
  • International Military Education and Training Program
  • Peacekeeping Operations
  • Building Partner Capacity (Sec. 333)
    >US Counterterrorism Program – J4
    >Maritime Security Initiatives – J5
  • Foreign Military Financing (FMF) – J4
  • Excess Defense Articles (EDA) – J4
  • Direct Commercial Sales (DCS) – J4
  • Foreign Military Sales (FMS) – J4
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5
Q

ARTICLE 1.- Subject to mutual agreements, the Government of the United States of America will furnish military assistance to the Government of the Republic of the Philippines in the training and development of armed forces and in the performance of other services essential to the fulfillment of those obligations which may devolve upon the Republic of the Philippines under its international agreements including commitments assumed under the United Nations and to the maintenance of the peace and security of the Philippines…

A

RP-US Military Assistance Agreement of 1947 and 1953

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6
Q

An Act to promote the foreign policy, security, and general welfare of the United States by assisting peoples of the world in their efforts toward economic and social development and internal and external security, and for other purposes.

A

US Foreign Assistance Act of 1961

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7
Q

The________ gives thePresident of the United Statesthe authority to control the import and export of US defense articles and defense services. This Act requires international governmentsreceiving weapons from the United States to use the armaments for legitimate self-defense only.

A

US Arms Export Control Act of 1976

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8
Q

Philippines Legal Basis for Procurement via US FMS Program:

A

Republic Act 9184 and its Revised IRRs

>Thru Sec 53.8 Defense Cooperation Agreement under Sec 53 Negotiated Procurement of RA 9184

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9
Q

The Contracts or LOA for the acquisition projects using Republic Funds are entered pursuant to Section 53.8 that allows the procurement of equipment with an agency or instrumentality of another country with which the Philippines has entered into a ________.

A

Sec 53.8 Defense Cooperation Agreement

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10
Q

TRUE or FALSE

Republic Act 9184 and its Revised IRRs
“Sec 4.2. Any Treaty or International or Executive Agreement to which the GoP is a signatory affecting the subject matter of the Act and this IRR shall be observed. In case of conflict between the terms of the Treaty and this IRR, the former shall prevail.”

A

TRUE

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11
Q

A program that authorizes eligible foreign countries/ US partner nation to purchase defense articles, services and training from the US Government using National Funds or grant funds from the US Foreign Military Financing (FMF) Program.

A

Foreign Military Sales (FMS) Program

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12
Q

A Government-to-Government Agreement pursuant to Sec.4.2 of Republic Act 9184. Each ________ project is documented through the Letter of Offer and Acceptance (LOA) as Contract Agreement.

A

Foreign Military Sales (FMS) Program

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13
Q

The ________ emphasizes the Total Package Approach to defense acquisitions.

A

US Foreign Military Sales (FMS) Program

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14
Q

What can be sold through FMS?

A
  • DEFENSE ARTICLES
  • DEFENSE SERVICES
  • DESIGN & CONSTRUCTION SERVICES
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15
Q

weapons, weapon systems, munitions, aircraft, vessel, boat, component or parts

A

Defense Articles

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16
Q

services, test, inspection, repair, training, publication, or defense information

A

Defense Services

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17
Q

engineering services, technical advisory assistance

A

Design and Construction Services

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18
Q

3 Types of FMS Projects

A
  • US Funded
  • RP Funded (National Funds)
  • Co-Investment
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19
Q

[Type of FMS Projects]

through US Foreign Military Financing (FMF)

A

US Funded

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20
Q

[Type of FMS Projects]

Capital Outlay/MOOE/Modernization/Other Special Sources

A

RP Funded (National Funds)

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21
Q

[Type of FMS Projects]

combination of RP & US Funds

A

Co-investment

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22
Q

Term used to identify a request from an eligible partner nation for the purchase of US defense articles and services, including EDA.

A

Letter of Request (LOR)

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23
Q

JUSMAG-Phil receives our ________ in-country

A

Letter of Request (LOR)

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24
Q

Letter of Request (LOR) can request 2 things:

A
  • Price and Availability (P&A)

- Letter of Offer and Acceptance (LOA)

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25
Q
  • Rough order of magnitude (ROM) data
  • Sufficient for planning, but not for budgeting
  • Not an offer to sell
A

Price and Availability (P&A)

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26
Q
  • Most precise estimate based on info provided
  • Sufficient for budgeting
  • Offer to sell
A

Letter of Offer and Acceptance (LOA)

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27
Q

Authorized document used by the USG as an offer to sell defense articles and services to foreign country

The offer becomes a contract once it is accepted and funding is provided.

Subject to many conditions and restrictions

A

Letter of Offer and Acceptance (LOA)

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28
Q

Document used by USG to sell defense articles, services (including training), and design/construction services to a foreign country or international organization

A

Letter of Offer and Acceptance (LOA)

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29
Q

Signed LOA + subsequent revisions = ______________

A

Foreign Military Sales (FMS) Case

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30
Q

3 LOA Terms of Sale

A
  • Open Source
  • Sole Source
  • Existing Inventory
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31
Q

[LOA Terms of Sale]

US Government will bid out among qualified US Companies

A

OPEN SOURCE

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32
Q

[LOA Terms of Sale]

AFP specifically identifies the Company

A

SOLE SOURCE

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33
Q

[LOA Terms of Sale]

The AFP can request for the USG to provide ________ items especially during “emergency”

A

EXISTING INVENTORY

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34
Q

4 LOA Terms of Payment

A
  • Cash with Acceptance
  • Cash prior to delivery
  • Dependable Undertaking
  • FMS Credit
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35
Q

[LOA Terms of Payment]

Full payment upon acceptance of LOA

A

Cash with Acceptance

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36
Q

[LOA Terms of Payment]

Full payment before the delivery

A

Cash prior to delivery

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37
Q

[LOA Terms of Payment]

Initial deposit and quarterly payment

A

Dependable Undertaking

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38
Q

[LOA Terms of Payment]

FMF-funded

A

FMS Credit

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39
Q

Pertains to the retransfer, disposal, or change of end-use of US-origin articles, services, or data that was obtained through US Security Assistance Program, to a third party.

A

Third Party Transfer

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40
Q

THE 6-STEP FMS PROCESS

A
  1. Defining Requirements
  2. Letter of Request (LOR)
  3. Letter of Offer and Acceptance (LOA)
  4. Acceptance of LOA (signed)
  5. Implementation
  6. Case Execution
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41
Q

4-STEP FMS PROCEDURE FLOWCHART (REPUBLIC FUNDS)

A
  1. Requirement Determination & Approval of Procurement through US FMS Program: LOR for P&A Data (Market Research)
  2. Pre-Case Development: Crafting and Processing of LOR for LOA
  3. Case Development: Offer and Acceptance
  4. Case Implementation and Delivery
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42
Q

Prepares LOR for P&A data as part of Market Research (if deemed necessary)

A

END USER

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43
Q

Reviews and submits the LOR to JUSMAG-Phil if complete

A

J4

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44
Q

Transmits the LOR to the concerned USG Agency for processing

A

JUSMAG-Phil

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45
Q

Processes the LOR & sends reply to P&A data to JUSMAG-Phil within 45 days

A

USG Agency

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46
Q

Transmits the P&A data to J4 upon availability

A

JUSMAG-Phil

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47
Q

Transmits the P&A data to End-User upon availability

A

J4

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48
Q

Reviews and examines the P&A data and seeks approval for procurement through US FMS Program

A

END-USER

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49
Q

Decides whether or not to procure thru US FMS Program pursuant to Sec 4.2 of RA 9184 and its Revised IRR

A

SENIOR LEADERS

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50
Q

3 required attachments if Senior Leaders approved the procuement thru US FMS Program

A
  • Annual Procurement Plan (APP)
  • Acquisition Decision Memorandum (ADM)
  • Bids and Awards Committee (BAC) Resolution
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51
Q

Prepares LOR for LOA and transmits it to J4

A

END-USER

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52
Q

Reviews the completeness of LOR and transmits it to JUSMAG-Phil for processing

A

J4

53
Q

Reviews the completeness of LOR and submits it to concerned USG Agency for processing

A

JUSMAG-Phil

54
Q

Reviews and processes the LOR and craft corresponding LOA. Response time to the LOR depends on the type and complexity of cases (60 to 120 days or more)

A

USG Agency

55
Q

Tranmits the LOA to J4 for transmittal to the End-User

A

JUSMAG-Phil

56
Q

Transmits the LOA to the End-User for their review and recommendation

A

J4

57
Q

Reviews the LOA and recommend for acceptance, amendment or declination (whichever is applicable)

A

END-USER

58
Q

If recommended for acceptance, ________ recommends for the SND’s approval of the LOA and subsequent wire-transfer of funds (thru Channel/via CSAFP)

A

J4

59
Q

Approves or disapproves the acceptance of the LOA and wire-transfer of fund

A

SND

60
Q

If approved, ________ signs the LOA and transmits it to JUSMAG-Phil for implementation by the concerned USG Agency upon wire-transfer of funds

Department Circular Nr 11

A

J4

61
Q

Issues a Memo to J4 to facilitate the wire-transfer of funds based on the issued SARO for the project

A

DAO, DND

62
Q

Requests for the issuance of Allotment Advice (AA) to OFM

A

J4

63
Q

Issues Allotment Advice (AA) upon approval of the VCSAFP

A

J10

64
Q

Prepares OBR and DV and forwards it to OFM (DV is named to ISAFP who will execute fund transfer to the Payee)

A

AFPPS (GHQ PC)

65
Q

Records obligation of funds

A

J10

66
Q

Prepares LDDAP to process request for issuance of Notice of Cash Allocation (NCA)

A

GHQ Accounting

67
Q

Facilitates signing of LDDAP and requests availability of NCA to DBM thru ASFP, DND

A

J10

68
Q

Endorses request for NCA to DBM

A

ASFM, DND

69
Q

Issues Notice of Cash Allocation (NCA)

A

DBM

70
Q

Prepares DV and check for transfer of funds (NCA) to AFPMATF

A

J10

71
Q

CSAFP signs DV and check

A

VCSAFP

72
Q

Sends copy of deposit slip to GHQ Accounting

A

J10

73
Q

Certifies availability of funds in the DV (Box A)

A

GHQ Accounting

74
Q

Approves and signs Box B of the DV then forwards it to AFPMFO for pre-audit

A

GHQPC, AFPPS

75
Q

Conducts pre-audit and forwards the DV to 27th FSSU for issuance of check

A

J10

76
Q

Issues check to AGDB

A

27th FSSU

77
Q

Coordinates with CO, GHQPC and CO, 27th FSSU who will sign the form to effect the wire-transfer of fund to US Treasury

A

AGDB

78
Q

Implements the LOA and commences the procurement in accordance with the existing US laws and regulations

A

USG Agency

79
Q

J4 coordinates with JUSMAG-Phil for conduct of ________ if deemed necessary prior to the delivery of items

A

Quality Assurance Inspection (QAI)

80
Q

Facilitates the delivery of equipment based on the Delivery Term Code indicated in the LOA. JUSMAG-Phil or AFP Freight Forwarder provides a Notice of Arrival through a copy Bill of Lading (sea freight) or Air Waybill (air freight) and Invoice Receipt (DD 1149)

A

USG Agency/JUSMAG-Phil/AFP Freight Forwarder

81
Q

Directs respective THUs to facilitate the release of the shipment from the BOC. If request for tax deferment applies, submits request to J4

A

END-USER

82
Q

Directs THU, GHQ & HSC and AFPPS to facilitate approval of tax deferment

A

J4

83
Q

Computes the total fund requirements for the release of FMS items from the BOC

A

THUs

84
Q

Facilitates the availability of funds

A

END-USER

85
Q

Upon receipt of funds and certificate of tax deferment, ________ shall coordinate with the BOC for the withdrawal of items and advises concerned SU of the incoming delivery

A

THU

86
Q

Prepares the warehouse, receives the items and store it properly

A

SU

87
Q

Advises End-User 4s once the articles/items have been withdrawn and delivered to the SU

A

THU

88
Q

Informs J4 and JUSMAG-Phil that the items have been delivered and are ready for inventory and inspection

A

END-USER

89
Q

OJ4; JUSMAG-Phil; TIAC; End-User 4s; SAO, AFP; concerned SU; AFPMFO Representative; and Major Service SAO (for items for use of the Major Service); shall conduct inventory and inspection of the delivered items

A

Inspection and Acceptance

90
Q

If case of discrepancies, End-User’s Major Service 4 submits ________ to JUSMAG-Phil thru J4 for requisitioning

A

Supply Discrepancy Report (SDR)

91
Q

If items are complete, TIAC submits Report and ________ of Acceptance to DAO, DND

A

TIAC Certificate

92
Q

Upon receipt of TIAC Report & Certificate, ________ issues a Memo to J4 to facilitate the Issuance Directive for the release of the items to the End-User

A

DAO, DND

93
Q

Prepares and release Issuance Directive to SAO, AFP

A

J4

94
Q

Facilitates issuance of items to the SAO, End-User who shall prepare Requisition and Issue Slip (RIS)/ Inventory Receipt of Property (IRP) and submit it to the SU (P) for the issuance and release of the items

A

SAO, AFP

95
Q

Facilitates the issuance of items to the SAO, End-User

A

Major Service/GHQ SAO

96
Q

prepares Requisition and Issue Slip (RIS)/ Inventory Receipt of Property (IRP) and submit it to the SU.

A

SAO, End-User

97
Q

issues the items to the End-User and submits a copy of the RIS/IRP to SAO, AFP for recording purposes.

A

SAO, SU

98
Q

The ________ shall submit an After-Withdrawal Report to OJ4 (thru MS4s for MS items).

A

END-USER

99
Q

Submits report to the GHQ and MS Accounting Center and reconciles records

A

Major Service/AFP SAO

100
Q

FMS vs DCS

A

FOREIGN MILITARY SALES (FMS)

101
Q

FMS vs DCS

A

DIRECT COMMERCIAL SALE (DCS)

102
Q

FMS vs DCS

USG does the work; USG support and involvement to resolve issues

A

FOREIGN MILITARY SALES (FMS)

103
Q

FMS vs DCS

Transparent Process

A

FOREIGN MILITARY SALES (FMS)

104
Q

FMS vs DCS

Total Package Approach (TPA) to ensure operational capability

A

FOREIGN MILITARY SALES (FMS)

105
Q

FMS vs DCS

USG has knowledge and data of prior procurements

A

FOREIGN MILITARY SALES (FMS)

106
Q

FMS vs DCS

Customer benefits from economies of scale or existing contracts

A

FOREIGN MILITARY SALES (FMS)

107
Q

FMS vs DCS

Cost - ________ Charges 3.2% for case development and management

A

FOREIGN MILITARY SALES (FMS)

108
Q

FMS vs DCS

Limits customer involvement

A

FOREIGN MILITARY SALES (FMS)

109
Q

FMS vs DCS

Risk of USG diversion to other priorities

A

FOREIGN MILITARY SALES (FMS)

110
Q

FMS vs DCS

Usually overestimate costs; but unused funds are returned to customer

A

FOREIGN MILITARY SALES (FMS)

111
Q

FMS vs DCS

May result in extended contract lead-times to acquire non-standard materials and/or services

A

FOREIGN MILITARY SALES (FMS)

112
Q

FMS vs DCS

Country has ownership of entire acquisition process

A

DIRECT COMMERCIAL SALE (DCS)

113
Q

FMS vs DCS

Supports development of host government acquisition capabilities

A

DIRECT COMMERCIAL SALE (DCS)

114
Q

FMS vs DCS

Customer negotiates own delivery schedule

A

DIRECT COMMERCIAL SALE (DCS)

115
Q

FMS vs DCS

May be able to negotiate contract faster than via DoD process

A

DIRECT COMMERCIAL SALE (DCS)

116
Q

FMS vs DCS

Potential to pay in other than US dollars

A

DIRECT COMMERCIAL SALE (DCS)

117
Q

FMS vs DCS

Limited USG support to resovle problems

A

DIRECT COMMERCIAL SALE (DCS)

118
Q

FMS vs DCS

U.S. Government only involved in export license review and congressional notification

A

DIRECT COMMERCIAL SALE (DCS)

119
Q

FMS vs DCS

May not be Total Package Approach

A

DIRECT COMMERCIAL SALE (DCS)

120
Q

FMS vs DCS

Potentially limited technical knowledge of system

A

DIRECT COMMERCIAL SALE (DCS)

121
Q

FMS vs DCS

Country needs contracting officer and auditor expertise

A

DIRECT COMMERCIAL SALE (DCS)

122
Q

FMS vs DCS

Can capitalize on the use of the extensive DoD training facilities (i.e. ranges, etc.)

A

FOREIGN MILITARY SALES (FMS)

123
Q

FMS vs DCS

Extensive DoD operational expertise and trained personnel

A

FOREIGN MILITARY SALES (FMS)

124
Q

FMS vs DCS

Sole-Source requests for specific items

A

FOREIGN MILITARY SALES (FMS)

125
Q

FMS vs DCS

Customer can often decide where and when they want the training to occur

A

DIRECT COMMERCIAL SALE (DCS)

126
Q

FMS vs DCS

Contractor may not have the operational expertise, capability, or trained personnel that the DoD has

A

DIRECT COMMERCIAL SALE (DCS)

127
Q

FMS vs DCS

Contractor may not have access to DoD training facilities (i.e., ranges, etc.)

A

DIRECT COMMERCIAL SALE (DCS)

128
Q

This Act requires international governmentsreceiving weapons from the United States to use the armaments for legitimate self-defense only.

A

US Arms Export Control Act of 1976

BLOC (16 decks)

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