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DSCA 12-38

Memo Status : Active
DoD Shield

DEFENSE SECURITY COOPERATION AGENCY
201 12th STREET SOUTH, STE 203
ARLINGTON, VA 22202-5408

7/31/2012

MEMORANDUM FOR :

DEPUTY UNDER SECRETARY OF THE AIR FORCE FOR INTERNATIONAL AFFAIRS
DEPUTY ASSISTANT SECRETARY OF THE ARMY FOR DEFENSE EXPORTS AND COOPERATION
DEPUTY ASSISTANT SECRETARY OF THE NAVY FOR INTERNATIONAL PROGRAMS
DIRECTOR, DEFENSE CONTRACT MANAGEMENT AGENCY
DIRECTOR, DEFENSE INFORMATION SYSTEMS AGENCY
DIRECTOR, DEFENSE LOGISTICS AGENCY
DIRECTOR, DEFENSE THREAT REDUCTION AGENCY
DIRECTOR, MISSILE DEFENSE AGENCY
DIRECTOR, NATIONAL GEOSPATIAL - INTELLIGENCE AGENCY
DIRECTOR, DEFENSE LOGISTICS INFORMATION SERVICE
DIRECTOR, DEFENSE LOGISTICS AGENCY DISPOSITION SERVICES
DEPUTY DIRECTOR FOR INFORMATION ASSURANCE, NATIONAL SECURITY AGENCY
DIRECTOR, DEFENSE FINANCE AND ACCOUNTING SERVICE

SUBJECT :

Compressed, Rapid Acquisition, Fielding and Training (CRAFT), DSCA Policy 12-38

Attached is guidance and background information on the roles and responsibilities, criteria, and process for the Compressed, Rapid Acquisition, Fielding, and Training (CRAFT) initiative.

CRAFT is one of the recommendations of the Security Cooperation Reform Task Force (SCRTF) that was approved by the Secretary of Defense to implement a "fast track" system to accelerate the delivery of defense articles and services to build partner nation capabilities for unexpected or urgent cases that cannot be fulfilled by the Special Defense Acquisition Fund (SDAF) or addressed by the improved Foreign Military Sales (FMS) process in the time required. CRAFT was identified as a key initiative to ensure the rapid delivery of defense articles and services to Allies and partners.

A systematic approach to anticipating partner nation requirements is the fundamental concept underpinning the CRAFT initiative and several other recommendations identified in the July 2011 SCRTF Report (such as: SDAF, the Expeditionary Requirements Generation Team (ERGT), prioritization, anticipatory planning, and contracting and transportation reforms). It is impossible, however, to forecast all partner capability requirements and unexpected, urgent requirements which will still arise - usually as a result of unplanned events or a fluid operational environment. Such requirements may demand an expeditious response on timelines that even significantly improved processes and procedures will be unable to meet. These requirements will require special measures.

CRAFT is intended to be used only in extraordinary circumstances when conventional processes cannot deliver on time and delayed delivery is likely to cause a significant operational or strategic risk if not addressed as expeditiously as possible. The other recommendations identified within the SCRTF Report, as previously mentioned, are intended to complement the CRAFT process and should accelerate normal procedures and reduce the need to pursue more exceptional processes such as CRAFT. The CRAFT process recognizes that Combatant Commanders and the Secretaries of Defense and State occasionally require exceptional measures to answer the most urgent partner requirements.

For any questions regarding this policy or CRAFT, please contact Mr. Chris Danielewski, DSCA/STR/POL, at (703) 601-4368 or christopher.danielewski@dsca.mil.

William E. Landay III
Vice Admiral, USN
Director

ATTACHMENT :
As stated

CC :

STATE/PM-RSAT
AFRICOM
CENTCOM
EUCOM
NORTHCOM
PACOM
SOCOM
SOUTHCOM
TRANSCOM
USASAC
USASAC-NC
SATFA
TRADOC
NAVSUP WSS
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USCG International Affairs (G-CI)

COMPRESSED, RAPID ACQUISITION, FIELDING AND TRAINING (CRAFT) BACKGROUND AND GUIDANCE

1. General. CRAFT is the third part of a three-pronged approach approved by the Secretary of Defense (SecDef) to accelerate the delivery of defense articles and services to build partner nation capabilities. The first part is the Special Defense Acquisition Fund (SDAF), and the second part is an improved Foreign Military Sales (FMS) process that is more anticipatory of partner nation capability requirements. CRAFT is a special accelerated process for use in rare instances when the improved FMS approach is not fast enough to meet an unanticipated, urgent strategic requirement that, if not satisfied immediately, will seriously endanger personnel or pose a major threat to ongoing or imminent operations. CRAFT is not meant to be a universal remedy for capability delivery. Rather, the CRAFT process is used selectively as an exceptional process when both the SecDef and Secretary of State (SecState) agree that extraordinary means are necessary and justified to fulfill urgent partner requirements. CRAFT requests will adhere to established regulations per the Arms Export Control Act (AECA) and the Foreign Assistance Act (FAA), including FMS procedures as outlined by the Security Assistance Management Manual (SAMM), with the primary difference being SecDef's determination that the Department of Defense (DoD) will expedite the case as a top priority.

1.1. Several features of CRAFT differentiate it from the Departmental Urgent Operational Needs (UONs) processes:

1.1.1. Early agreement on actionable and clearly defined requirements ensuring Letters of Request (LORs) and Letters of Offer and Acceptance (LOAs) can be written quickly and correctly the first time;

1.1.1.1. The creation of an Expeditionary Requirements Generation Team (ERGT), as required, to assist the appropriate Combatant Commands (CCMDs) and Security Cooperation Organizations (SCOs) with accurately defining capability requirements and generating actionable LORs;

1.1.1.2. Early engagement and communication between DoD and the Department of State (DOS) on the requirements and nature of the CRAFT request;

1.1.1.3. Clarifying, early in the process, all assumptions about a country's potential eligibility for CRAFT to avoid any unnecessary delays in determining available security cooperation responses (e.g., funding, foreign policy sanctions, arms embargoes, or other legal or regulatory restrictions that would preclude a CRAFT designation); and

1.1.1.4. Clear identification of the legal authority and funding source to be used to execute and fund the CRAFT request (e.g., Foreign Military Financing funds (FMF) (DOS funds), 1206 (DoD funds), Peacekeeping Operations (PKO) (DOS funds), Global Security Contingency Funds (GSCF), or national funds).

1.1.2. Addressing, early in the process, any Technology Security and Foreign Disclosure (TS&FD) issues, including any required approval from appropriate TS&FD working groups;

1.1.2.1. The DSCA Strategic Planning Support Group (SPSG) will consult with the Technology Security and Foreign Disclosure Office (TSFDO) and, if necessary, present urgent/emergent CCMD FMS capability requirements to the Arms Transfer and Technology Release Senior Steering Group (ATTR SSG) for expedited technology security/foreign disclosure processing in support of CRAFT requests

1.1.3. A formal, senior-level review process conducted via a Senior Steering Group (SSG), composed of those members identified in section 1.1.4. of this document, leads quickly to a recommendation for SecDef to authorize an FMS case as a top DoD priority under the CRAFT process. This process would result in an SSG recommendation to SecDef that the SecDef:

1.1.3.1. Direct and authorize the Under Secretary of Defense for Acquisition Technology and Logistics (USD AT&L) and appropriate Service Acquisition Executives to use all available tools and authorities to expedite the case; and

1.1.3.2. Direct the Chairman of the Joint Chiefs of Staff (CJCS) to assign a Transportation Movement Priority of 1B1 for the delivery of the defense articles.

1.1.4. The CRAFT SSG will be composed of the following members: USD(P)-Chair; USD(AT&L); USD(C); the State Department Under Secretary for Arms Control and International Security Affairs; the Director for Strategic Plans & Policy, Joint Staff (J5); the Military Department Secretaries; and the Director, DSCA. Primary responsibilities would include, but are not limited to:

1.1.4.1. The review of CRAFT requests to determine whether to recommend approval by SecDef;

1.1.4.2. Identification of alternate implementation paths if the request is urgent but does not adequately meet all requisite CRAFT criteria; and

1.1.4.3. Ensuring close coordination and dialogue within and between the CRAFT and UON communities to identify and de-conflict potentially competing priorities to allow timely processing of both CRAFT and UON requests.

2. CRAFT Roles and Responsibilities.

2.1. Secretary of Defense (SecDef):

2.1.1. Approves capabilities as a top priority appropriate for fielding through the CRAFT process;

2.1.2. Coordinates with the SecState on the approval of the export and sale of defense articles identified in a CRAFT request;

2.1.3. If SecDef approves a recommendation for CRAFT, SecDef signs a memorandum to the Director, DSCA, the Military Department Secretaries, and the Director for Strategic Plans & Policy, Joint Staff (J5) that initiates acquisition as a CRAFT case;

2.1.4. If required, and per sections 36(b)(1) of the AECA and 614(a)(2) of the FAA, coordinates with SecState on the joint request to the President to notify Congress an emergency exists that requires the proposed FMS sale in the national security interest of the United States and waives the Congressional review requirements; and

2.1.5. Delegates Director, DSCA to manage all aspects of the CRAFT process.

2.2. Under Secretary of Defense for Policy (USD(P)):

2.2.1. Reviews draft CRAFT nominations to ensure the proposed capabilities support U.S. security cooperation priorities and DoD strategies for the country, and that relevant regional and country objectives cannot be achieved through alternate means;

2.2.2. Following coordination with USD(AT&L) and the Director for Strategic Plans & Policy, Joint Staff (J5) to ensure the proposed CRAFT solution does not conflict or is unlikely to conflict with any DoD priority, convenes and chairs an SSG, with membership as described in section 1.1.4, to review the CRAFT nomination and to ensure the CRAFT proposed solution does not conflict, or is unlikely to conflict, with any existing USG priority and to determine whether to recommend SecDef support the CRAFT nomination;

2.2.3. Co-Chairs the ATTR SSG with USD(AT&L), with the participation of DSCA, the Military Departments and other key DoD representatives to act on urgent TS&FD decisions tied to a CRAFT request and, as necessary, takes action to obtain any required approvals from appropriate TS&FD working groups and directs the accomplishment of any Release in Specific (RIS) actions required to implement the CRAFT request prior to SecDef approval;

2.2.4. In conjunction with the Director for Strategic Plans & Policy, Joint Staff (J5), the Director, DSCA, and the Military Department Secretaries, determine whether a CRAFT request can be addressed via a reprioritization of existing U.S. defense articles instead, including items in inventory determined to be excess, considering any adverse impact to the readiness of U.S. Forces and/or the capacity of other partner nations from such actions; and

2.2.5. May delegate responsibility to the Principal Deputy Under Secretary of Defense for Policy (PDUSD(P)).

2.3. Under Secretary of Defense for Acquisition, Technology, and Logistics (USD(AT&L)):

2.3.1. Participates in coordination with DoD Components and also in an SSG, with membership as described in section 1.1.4, to review the CRAFT nomination and to ensure the CRAFT proposed solution does not conflict, or is unlikely to conflict, with any existing USG priority and to determine whether to recommend SecDef support the CRAFT nomination;

2.3.2. Co-Chairs the ATTR SSG with USD(P), with the participation of DSCA, the Military Departments and other key DoD representatives to act on urgent TS&FD decisions tied to a CRAFT request and, as necessary, takes action to obtain any required approvals from appropriate TS&FD working groups and directs the accomplishment of any RIS actions required to implement the CRAFT request prior to SecDef approval;

2.3.3. Following a SecDef decision to address a capability requirement through CRAFT, issues a Decision Memorandum that directs the Military Departments to use all available tools and authorities to expediently develop, procure, field, and sustain the CRAFT capability;

2.3.4. Communicates and coordinates relevant CRAFT updates or issues with the Warfighter Senior Integration Group (SIG); and

2.3.5. May delegate responsibility to the Principal Deputy Under Secretary of Defense for Acquisition, Technology, and Logistics (PDUSD (AT&L)).

2.4. Under Secretary of Defense, Comptroller (USD(C)):

2.4.1. Participates in an SSG, with membership as described in section 1.1.4, to review the CRAFT nomination and to ensure the CRAFT proposed solution does not conflict, or is unlikely to conflict, with any existing USG priority and to determine whether to recommend SecDef support the CRAFT nomination;

2.4.2. Identifies the proper appropriation or other funding source before a CRAFT recommended determination is made by the SSG to the SecDef and ensures funding will be available immediately upon SecDef approval; and

2.4.3. May delegate responsibility to the Principal Deputy Under Secretary of Defense, Comptroller (PDUSD(C)).

2.5. Director for Strategic Plans & Policy, Joint Staff (J5):

2.5.1. Participates in an SSG, with membership as described in section 1.1.4, to review the CRAFT nomination and to ensure the CRAFT proposed solution does not conflict, or is unlikely to conflict, with any existing USG priority and to determine whether to recommend SecDef support the CRAFT nomination;

2.5.2. Following SecDef approval of the SSG recommendation to field a capability through CRAFT, assigns a Transportation Movement Priority of 1B1 via the Defense Transportation System (DTS), if appropriate, for the delivery of CRAFT defense articles or equipment, which could be transported via military or contracted aircraft arranged by U.S. Transportation Command (TRANSCOM);

2.5.3. Communicates and coordinates relevant CRAFT updates or issues with the Warfighter SIG;

2.5.4. Communicates and coordinates relevant CRAFT updates or issues with the appropriate CCMD(s);

2.5.5. In conjunction with USD(P), the Director, DSCA, and the Military Department Secretaries, determines whether a CRAFT request can be addressed via a reprioritization of existing U.S. defense articles instead, including items in inventory determined to be excess, considering any adverse impact to the readiness of U.S. Forces and/or the capacity of other partner nations from such actions; and

2.5.6. May delegate responsibility to the Vice Director for Strategic Plans & Policy, Joint Staff (J5).

2.6. Military Department Secretaries:

2.6.1. Participate in an SSG, with membership as described in section 1.1.4, to review the CRAFT nomination and to ensure the CRAFT proposed solution does not conflict, or is unlikely to conflict, with any existing USG priority and to determine whether to recommend SecDef support the CRAFT nomination

2.6.2. Participate in an ATTR SSG to act on urgent TS&FD decisions tied to a CRAFT request and, as necessary, take action to obtain any required approvals from appropriate TS&FD working groups and direct the accomplishment of any RIS actions required to implement the CRAFT request prior to SecDef approval;

2.6.3. In conjunction with USD(P), the Director for Strategic Plans & Policy, Joint Staff (J5), and the Director, DSCA, determine whether a CRAFT request can be addressed via a reprioritization of existing U.S. defense articles instead, including items in inventory determined to be excess, considering any adverse impact to the readiness of U.S. Forces and/or the capacity of other partner nations from such actions;

2.6.4. In consultation with DSCA and the country team/SCO, identify all relevant training requirements needed to ensure the partner nation is prepared upon delivery to effectively field, support, and employ the requested defense articles in accordance with their intended end-use;

2.6.5. Direct Service Acquisition Executives to expediently develop, procure, field and sustain the CRAFT urgency of need solutions - to include a single coordinated contract capable of providing major end-item hardware, along with all necessary time-sensitive support equipment, training, and logistics support to deliver an operational capability. If the CRAFT-requested defense articles or equipment will come from new procurement, an existing contract vehicle must already be in place; and

2.6.6. May delegate responsibility to the Military Department Under Secretaries.

2.7. Combatant Commands:

2.7.1. With assistance of the proposed partner nation, nominate and precisely define capability requirements at the beginning of the CRAFT process;

2.7.2. Coordinate with the country team in the partner nation on the Country Team Assessment (CTA), which should: thoroughly justify the urgency of the request, the reasons why the required capability should be addressed via the CRAFT process; why the request cannot be satisfied by other existing processes, how failure to meet the unanticipated urgent requirement will seriously endanger personnel or pose a major threat to ongoing or imminent operations, and how the request supports both U.S. national security and foreign policy objectives in addition to partner nation capability needs;

2.7.3. Notify USD(P), and subsequently the DSCA SPSG, to initiate an expedited TS&FD process in anticipation of the eminent CRAFT nomination and associated CTA justification; and

2.7.4. Coordinate with USD(P) appropriate regional offices on draft CRAFT nominations under consideration and in development for potential SSG review.

2.8. Director, Defense Security Cooperation Agency (DSCA):

2.8.1. Manages the overall CRAFT staffing process.

2.8.2. Prepares any Decision Memorandum required to request CRAFT authority from SecDef; forwards Decision Memorandum to USD(P);

2.8.3. Participates in an SSG, with membership as described in section 1.1.4, to review the CRAFT nomination and to ensure the CRAFT proposed solution does not conflict, or is unlikely to conflict, with any existing USG priority and to determine whether to recommend SecDef support the CRAFT nomination;

2.8.4. Participates in an ATTR SSG to act on urgent TS&FD decisions tied to a CRAFT request and, as necessary, takes action to obtain any required approvals from appropriate TS&FD working groups and directs the accomplishment of any RIS actions required to implement the CRAFT request prior to SecDef approval;

2.8.5. In conjunction with USD(P), the Director for Strategic Plans & Policy, Joint Staff (J5), and the Military Department Secretaries, determines whether a CRAFT request can be addressed via a reprioritization of existing U.S. defense articles instead, including items in inventory determined to be excess, considering any adverse impact to the readiness of U.S. Forces and/or the capacity of other partner nations from such actions;

2.8.6. Provides updates to SecDef, including weekly updates and action items to all key stakeholders;

2.8.7. In conjunction with USD(C), arranges for funds transfer from DOS of any funds supporting CRAFT requirements such as FMF, PKO, or GSCF funding;

2.8.8. As required, leads the planning, organization, and deployment of ERGTs to clearly identify country capability requirements as early as possible in the CRAFT process;

2.8.9. As required, directs the SPSG to participate in the capability requirements process in the ATTR SSG in accordance with section 1.1.2.1. of this document; and

2.8.10. In consultation with the Military Departments and the country team/SCO, identifies all relevant training requirements needed to ensure the partner nation is prepared upon delivery to effectively field, support, and employ the requested defense articles and services in accordance with their intended end-use.

2.9. OSD Legislative Affairs:

2.9.1. In conjunction with DSCA Legislative Affairs, supports the DOS Bureau of Legislative Affairs with the informal notification to congressional oversight committees of the CRAFT request and identifies any problems or issues these committees may have prior to a decision on whether to waive the Congressional review requirements (if required); and

2.9.2. Coordinates on responses to questions and clarifies any issues that may arise from Congressional staff or members.

2.10. Secretary of State (SecState):

2.10.1. Through the State Under Secretary for Arms Control and International Security Affairs participates in an SSG, with membership as described in section 1.1.4, to review the CRAFT nomination and to ensure the CRAFT proposed solution does not conflict, or is unlikely to conflict, with any existing USG priority and to determine whether to recommend SecDef support the CRAFT nomination;

2.10.2. Coordinates with SecDef on the approval of the export and sale of defense articles identified in a CRAFT request;

2.10.3. If required, and per sections 36(b)(1) of the AECA and 614(a)(2) of the FAA, coordinates with SecDef on the joint request to the President to notify Congress an emergency exists that requires the proposed FMS sale in the national security interest of the United States and waives the Congressional review requirements; and

2.10.4. Through the DOS Bureau of Legislative Affairs, and in consultation with OSD Legislative Affairs, informally notify Congressional oversight committees of the CRAFT request and identify any problems or issues these committees may have prior to a decision on whether to waive the Congressional review requirements (if required).

3. CRAFT Criteria.

3.1. CRAFT Standards and Criteria. Because CRAFT is meant to be used only under special circumstances, the decision to confer CRAFT status to a particular request resides with SecDef. Accordingly, appropriate thresholds must be met for making a CRAFT determination based on considerations of unusual and compelling urgency, risk, and national interest. Once an SSG recommendation on a CRAFT request has been approved by SecDef, it will be implemented as a top priority, which could include prioritization ahead of requirements for U.S. Forces. The acceleration of procurement actions and timelines to support CRAFT requests are a function of prioritization in all affected activities. The CRAFT process itself is not intended to generate additional costs, nor are resources being placed against CRAFT to fund any such costs incident to the acceleration and prioritization required in the CRAFT process. The following determining criteria (not all-inclusive) should be met before requesting that SecDef endorse a CRAFT request.

3.1.1. Determining Criteria.

3.1.1.1. There is a clearly definable, urgent need for the capability which, if not addressed, would endanger personnel or pose a major threat to ongoing or imminent operations involving the security interests of the United States, the partner nation, or both.

3.1.1.2. The capability requirement is agreed upon by the partner nation;

3.1.1.2.1. An authority within the partner nation in a position to speak on behalf of the country, as selected and deemed appropriate by its government, has confirmed support;

3.1.1.2.2. The determination had been made that the partner nation will use, and is capable of sustaining, the requested defense article(s); and

3.1.1.2.3. The country team/SCO has determined that the partner nation can complete all requisite training and be prepared upon delivery to effectively field, support, and employ the requested defense article(s) in accordance with its intended end-use.

3.1.1.3. Supports U.S. strategic and foreign policy interests;

3.1.1.4. All statutory requirements have been or can be met (e.g., end use monitoring, "Leahy" vetting);

3.1.1.5. Approved funding is available for the proposed capability requirement;

3.1.1.6. The requested defense article(s) cannot be delivered quickly enough through normal processes and exceptional measures must be taken;

3.1.1.7. There are no alternate measures capable of achieving the desired capability within the requisite timeframe;

3.1.1.8. Capabilities can be fielded within a period of 2 to 12 months, or acquisition lead time can be decreased by 25 percent using CRAFT;

3.1.1.9. Capabilities do not require a substantial development effort, are based on technologies fielded with U.S. Forces, and can be acquired using commercial/government off-the-shelf solutions under the most flexible contracting system or through existing contracting vehicles;

3.1.1.10. The ramifications of taking exceptional measures are clear and acceptable; and

3.1.1.11. Rapid TS&FD vetting confirms that the equipment is releasable and meets the TS&FD RIS criteria prior to SecDef approval of the CRAFT request.

 

4. CRAFT Process.

4.1. CRAFT Request.

4.1.1. CRAFT requests should normally originate in the CCMD, when the Combatant Commander identifies an urgent partner nation requirement that presents a clearly definable and significant operational or strategic risk if not addressed as expeditiously as possible. Based on the criteria in section 3.1.1. of this document, the CCMD request must address the urgency of U.S. national security requirements as well as the partner nation's requirements and provide clear, compelling justification that the traditional FMS process is not fast enough to meet an unanticipated, urgent requirement that will seriously endanger personnel or pose a major threat to ongoing or imminent operations if not satisfied immediately.

4.1.2. The CCMD should notify USD(P), and subsequently the DSCA SPSG, to initiate an expedited TS&FD process in anticipation of the eminent CRAFT nomination and associated CTA justification.

4.1.3. Once received from the CCMD, any one of the CRAFT SSG members (as identified in section 1.1.4. of this document) can bring the request to the SSG for formal review and coordination.

4.1.4. Consultation with the partner nation will be critical in determining whether the requirement is suitable as a CRAFT request. This consultation should occur with an authority in the partner nation who can speak on behalf of the country to confirm support for the equipment and clarify whether the partner nation has available funds.

4.1.5. A CTA by the U.S. Embassy Chief of Mission addressing the urgency of the request and addressing bilateral and regional foreign policy implications of the proposed transfer is required for a number of important functions. The CTA helps ensure key DOS individuals are aware of the requirement. The CTA also promotes understanding and generates support for additional measures DOS may be able to take to expedite review and processing, especially if a statutory Congressional notification is required.

4.2. CRAFT Determination.

4.2.1. While the requirement is being developed, DSCA's SPSG will consult with the TSFDO and, if necessary, present urgent/emergent CCMD FMS capability requirements to the ATTR SSG for expedited technology security/foreign disclosure processing in support of CRAFT requests.

4.2.2. Following TSFDO and ATTR SSG coordination, DSCA will forward a recommendation package to the CRAFT SSG for their consultation and a recommendation to USD(P) on next steps.

4.3. CRAFT Approval and Implementation.

4.3.1. If the nomination is recommended for approval, USD(P) will forward a decision memorandum to SecDef. When a CRAFT request is approved, SecDef will sign a CRAFT document providing direction to the DoD Component(s) responsible for implementation of the CRAFT decision. The CRAFT proposal will provide any necessary guidance on SecDef's acceptable level of risk regarding the CRAFT proposal and direct and authorize appropriate actions by the cognizant DoD Components to implement it.