Attachment: Security Assistance Management Manual E-Change 675

C11.2.1. Definition and Purpose. The Foreign Assistance Act (FAA) authorizes the President to direct transfers of articles and services from the inventory and resources of any agency of the United States Government to support foreign countries and international organizations in response to unforeseen military emergencies or for other legislatively authorized purposes. The different authorized purposes for drawdowns are summarized in Table C11.T4. These drawdowns may include the transfer of DoD stocked defense articles, services, and military education and training. Except for transportation and related services where new contracts would cost less than providing such services with DoD assets, new procurement is not authorized for drawdowns and no new funds may be placed on existing contracts.

C11.2.2. Partner Nation Eligibility. Defense articles and services may be drawn down and transferred to a friendly foreign country or international organization only if the President issues a Presidential Determination (PD) in accordance with the FAA. An FAA, section 503 [22 U.S.C. 2311] eligibility determination must be completed by the Department of State (State) and the required FAA, section 505 [ 22 U.S.C. 2314] assurances must be signed by the proposed foreign country recipient before the drawdown can be executed.

C11.2.3. Types of Drawdowns.

C11.2.3.1. Emergency Drawdowns. Drawdowns may be precipitated by an emergency in a foreign country or region. The National Security Council (NSC), State, and DoD, hereafter referred to as the interagency, coordinate the USG response. This interagency process determines which existing statutory authority applies and identifies which articles and services should be provided. Potential contributing USG agencies and the military services furnish valuation and availability (V&A) data to Office of Under Secretary Comptroller (OUSD (C)indicating the estimated value of the articles and services are anticipated to drawdown. The DSCA (Office of International Operations (IOPS)) tasks the Military Departments (MILDEPs) to provide the V&A data and a strategic readiness impact assessment, an Operations & Maintenance (O&M) budget impact assessment for all available articles and services that may be drawn from DoD stock, and ensure identification of available articles comply with enhanced end-use monitoring (EEUM) (see Table C8.T4.) and targeting infrastructure policy (TIP) (see Section C4.4.18.). DSCA (IOPS) provides the interagency with DoD's V&A data and the strategic readiness impact assessment for articles and services under consideration to inform planning and tradeoff discussions. The interagency recommends which articles and services should be provided taking into consideration current availability and potential strategic readiness impact to US forces. The President accomplishes a PD to define the scope and the maximum dollar value authorized for the approved drawdown. After an emergency drawdown is authorized, a drawdown execution message is issued. The drawdown execution message, prepared and issued by DSCA (IOPS), identifies the articles and services that may be provided under the drawdown, the organizations authorized to provide the articles and services and associated reporting requirements (e.g. serial numbers and certification of partner nation storage facilities of EEUM designated articles; targeting infrastructure compliance; Packing, Crating, and Handling (PC&H) and transportation costs; actual value of drawdowns; and deliveries). Emergency drawdowns end when the value of the PD authority is exhausted or the U.S. response to the emergency ends. To document the end of the drawdown, pursuant to interagency direction, DSCA (IOPS) sends out a termination message.

C11.2.3.2. Non-Emergency Drawdowns. Drawdowns may be authorized in non-emergency situations to support mid- to long-term foreign policy initiatives such as international narcotics control, antiterrorism assistance, international disaster assistance, nonproliferation assistance, migration and refugee assistance, or cooperative efforts or peacekeeping operations (See Table C11.T4.). Non-emergency drawdown procedures are the same as emergency drawdown procedures except the planning timeline may be extended to allow for more deliberate tradeoff discussions. For a non-emergency drawdown, the PD will provide the total value of the drawdown which cannot be exceeded but the articles and services authorized for transfer will be determined by an iterative planning process that may take several months to complete, vice the accelerated planning timeline required for emergency drawdowns. After articles and services authorized for transfer are determined, a drawdown execution message is issued. Delivery of articles and services may also take place over an extended period of time. Similar to emergency drawdowns, non-emergency drawdowns end when the value of the PD authority is exhausted and/or the interagency instructs DSCA (IOPS) to issue a termination message.

C11.2.4. Types of Articles, Services (to include transportation), and Training Provided Under Drawdowns. When necessary to facilitate effective use of transferred major end items, drawdown support should include complete support packages to include spare parts and training for O&M of the major end item.

C11.2.4.1. Articles. Transferred equipment must have been in DoD stocks or on order at the time the PD was approved. . Unless otherwise authorized, materiel must be provided in condition code "B," or Full Mission Capable (FMC) condition, or -10/-20 standards or better. Associated spare parts requisitions are processed on a "Fill or Kill" basis. The approval date for a drawdown is the date the drawdown is notified to Congress. MILDEPs cannot place a hold, reserve, or fence equipment or spares prior to the release of DSCA (IOPS)'s drawdown execution message.

C11.2.4.1.1. Defense Working Capital Fund Items. Defense Working Capital Fund (DWCF) items may be used to fulfill drawdown requirements. Pursuant to Under Secretary of Defense (Comptroller) (USD (C)) policy DoD Financial Management Regulation (DoD FMR) 7000.14-R, Volume 12, Chapter 23, Section 2305. A MILDEP must use their O&M funds to reimburse the working capital account. The DWCF may only use stock that was on hand or ordered before the PD was approved to fill the requisition order. It is the responsibility of the MILDEP to seek confirmation of the working capital account's ability to fill a requisition with existing stock or on order stock before submitting the requisition.

C11.2.4.1.2. Special Defense Acquisition Funds. A MILDEP may not purchase items from the Special Defense Acquisition Funds (SDAF) to provide drawdown support unless allowed on a case-by case basis.

C11.2.4.1.3. Articles designated for Enhanced End-Use Monitoring. The MILDEPs must report serial numbers of EEUM articles in advance of shipment to DSCA (Office of International Operations, Global Execution Directorate, Assistance & Monitoring Division (IOPS/GEX/AMD)) and dsca.eumhelpdesk@mail.mil via Non-classified Internet Protocol Router Network (NIPRnet) email. MILDEPs are responsible for conducting physical security inspections for certifications of partner nations' storage facilities before EEUM-designated weapons systems and enhanced case-unique weapons systems are delivered or moved to a new or uncertified facility, with the exception of Night Vision Devices (NVDs) and Communications Security (COMSEC) equipment, and hostile environments. See Table C8.T2., Table C8.T4., Section C8.4.3., and Section C8.5.5.

C11.2.4.1.4. Articles Requiring Targeting Infrastructure Compliance. The MILDEPs must provide an assessment if the partner nation has a sufficient previously established U.S., indigenous, or third-party solution for targeting infrastructure to DSCA (Office of International Operations, Weapons Directorate (IOPS/WPN)) via NIPRnet email (see Section C4.4.18.).

C11.2.4.2. Services. DoD personnel may provide services in support of a drawdown. DoD contractors may also be used to provide drawdown services if the MILDEP obligated O&M funds for the contractor's services prior to the PD approval. After a PD is approved, a MILDEP may not incur a new obligation under existing or a new contract to support the drawdown. The nature of the services provided by either DoD personnel or DoD contractors must fall within the scope of the PD.

C11.2.4.2.1. Transportation and Packing, Crating, and Handling. United States Transportation Command (USTRANSCOM) is generally responsible for coordinating and executing air and sealift of cargo into designated theatre locations and ensuring they arrive to the end user. The MILDEPs are responsible for Continental United States (CONUS)-based PC&H, which includes cargo movement to CONUS-based ports of embarkation or consolidation points. New commercial contracts for transportation and related services may be used if the cost is less than the cost to use USG assets. Existing contracts or resources may be used for airlift and sealift if their scope covers the proposed use (such as time-charter or multiple air mission agreements).

C11.2.4.2.1.1. All transportation and PC&H costs must be included as part of the total Presidential drawdown authority amount. Any CONUS transportation effort(s) should fall under PC&H, and any OCONUS transportation effort(s) should fall under a separate transportation line on the PD.

C11.2.4.2.1.2. The MILDEP allocated Transportation and PC&H in the Execute Order (EXORD) is responsible the cost to transport equipment to the end user, to include reimbursing USTRANSCOM for all costs incurred when applicable.

C11.2.4.2.1.3. The MILDEPs must report actual PC&H and Transportation costs in the DSCA 1000 System within 90 days based on bills received from the organization responsible for executing the movement.

C11.2.4.2.2. Cargo Preference Act of 1954. [Ref 46 U.S.C. 55305]. All drawdowns items transferred by ocean carriers must follow U.S. cargo preference requirements (See Section C7.9.). Recipient countries must use U.S. flag vessels unless the Maritime Administration (MARAD) has issued a non-availability waiver. MARAD assists in monitoring these statutes. The MILDEPs must consider cargo preference requirements when considering transportation options for drawdowns. The responsible office at MARAD is:

C11.2.5. Value of Drawdowns. It is critical to ensure that projected values are as accurate as possible. Close coordination between DSCA (IOPS), DSCA (Office of Business Operations, Financial Policy & Regional Execution Directorate, Financial Reporting and Compliance Division (OBO/FPRE/FRC)) and the MILDEPs during drawdown execution is critical to reconcile values as early as possible. The Services should report actual value of drawdowns to DSCA (OBO/FPRE/FRC) in the DSCA 1000 system no later than 90 days after delivery of the equipment (See Section C11.2.8.1.). Value of articles, training, and services is determined using the following guidance:

C11.2.5.1. Value of Articles. The value of drawdown articles is calculated pursuant to DoD FMR 7000.14-R, Volume 4, Chapter 4 for inventory and related property (i.e., operating materials and supplies, and stockpile material) and Volume 4, Chapter 25 for general equipment. MILDEP replacement cost should not be used to determine the replacement value of drawdown articles. MILDEPs should not use replacement cost as the value of defense articles being provided under drawdown authority.

C11.2.5.2. Value of Training. The value of drawdown military education and training is based on the additional costs incurred by the USG to provide the training (i.e., Foreign Military Financing (FMF) Grant or incremental rate pursuant to DoD FMR 7000.14-R, Volume 15, Chapter 7).

C11.2.5.3. Value of Services. The value of services provided under drawdowns is based on actual costs to the USG to provide the service. Funded civilian pay and travel and per diem costs of military and civilian personnel performing an approved support role that is devoted exclusively to the drawdown effort may be included when computing the value of drawdown services. Value does not include salaries of the members of the U.S. Armed Forces and unfunded civilian retirement and other benefits.

C11.2.6. Key Stakeholders.

C11.2.6.1. Department of State (State). State serves as the USG lead. State presents the interagency proposal to the President of the United States (POTUS) for a PD decision and notifies Congress of the PD. When a new PD is authorized by the President, State issues the authorization memorandum to the executing or supplying department/s within the USG.

C11.2.6.2. Defense Security Cooperation Agency. The DSCA tasks the MILDEPs to provide required planning information; collects and coordinates DoD's inputs to finalize a PD; informs Combatant Commands and MILDEPs of PD authorizations; tracks overall usage of PD authority to ensure PD ceiling is not exceeded; and provides PD reports to Congress.

C11.2.6.3. Combatant Command. The cognizant Combatant Command (CCMD) confirms the PD requirements.

C11.2.6.4. Applicable Military Departments. The MILDEP determines what articles and services could be provided, whether there would be any impact to a MILDEP's strategic readiness if drawdown support is provided, whether MILDEP drawdown support is feasible, and identification of which available articles require compliance with EEUM (see Table C8.T4.) and TIP (see Section C4.4.18.). Reports an assessment if the partner nation has a sufficient previously established U.S., indigenous, or third-party solution for targeting infrastructure (see Section C4.4.18.), serial numbers and certification of partner nations' storage facilities of EEUM designated articles in advance of shipment (see Table C8.T2., Section C8.4.3., and Section C8.5.5.), PC&H and transportation costs, value of drawdowns. Reports PD deliveries and monitors drawdown execution.

C11.2.6.5. Joint Staff. The Joint Staff (JS) monitors drawdown execution and advises Secretary of Defense (SECDEF) of any concerns that PD support adversely impacts DoD's military readiness and supports evaluation of potential sourcing options.

C11.2.6.6. Country Teams. The Country team will support the CCMD to confirm requirements with the partner and will include the Security Cooperation Organization (SCO) if defense articles and services are to be provided.

C11.2.6.7. Office of the Secretary Defense for Policy. The Office of the Secretary of Defense (Policy) (OSD (P)) is SECDEF's principal staff assistant (PSA) and advisor for all matters regarding the formulation of national security and defense strategy and policy and the integration and oversight of DoD policy, strategy, plans, execution, and capabilities to achieve national security objectives.

C11.2.6.8. Office of the Secretary of Defense for Personnel and Readiness. The Office of the Secretary of Defense for Personnel and Readiness (OSD (P&R)) is the PSA and advisor to SECDEF for Total Force management; National Guard and Reserve Component affairs; and readiness and training; OSD (P&R) develops and promulgates guidance on how to conduct the required strategic readiness impact assessment and leads analysis of the immediate and long-term impacts of any proposed drawdown assistance on Joint force readiness.

C11.2.6.9. Defense Technology Security Administration. The Defense Technology Security Administration (DTSA) reviews proposed PD packages to ensure compliance with technology transfer policy, the release of classified military information, and international programs security requirements.

C11.2.7. Drawdown Process. Table C11.T5. summarizes the drawdown planning and development process. All personnel supporting this planning and development process, or the execution of the drawdowns themselves, must charge time spent and expenses incurred to an O&M appropriation of their respective Service or agency. DSCA will not reimburse other agencies for personnel costs incurred as a result of a PD and subsequent drawdown of articles, services, and / or training. DSCA also will not authorize the use of a Foreign Military Sales (FMS) Administrative funds line of accounting to support PD planning and execution because the FMS Administrative account does not have reimbursable authority and thus, cannot be reimbursed by the appropriate O&M appropriation.

C11.2.8. Congressional Reporting for Drawdowns.

C11.2.8.1. Foreign Assistance Act, Section 506 Report. FAA, section 506 [22 U.S.C. 2318] requires the DoD to provide a report to Congress detailing all the defense articles, defense services, and military education and training provided to the recipient country or international organization upon delivery of such articles, or completion of services, or education and training. Within 90 days of delivering articles/services, the MILDEPs should provide delivery data to DSCA (OBO/FPRE/FRC) in the 1000 system. DSCA (OBO/FPRE/FRC) prepares the report using the MILDEP provided delivery data. Along with the delivery data, MILDEPS must also report to DSCA (OBO/FPRE/FRC), on any savings realized by using commercial transportation services instead of acquiring those services from USG transport assets, as this information is required for the report to Congress.

C11.2.8.2. Drawdown Support for the United Nations. Support to the United Nations (UN) may require additional Congressional reporting and notifications that would not otherwise be needed for other types of drawdowns for a foreign partner or a different international organization.

C11.2.8.2.1. Title 22 U.S.C. 287b requires an annual report to Congress regarding U.S. support to UN including US cash and in-kind contributions to UN PKOs. A drawdown that provides in kind contributions in excess of $100,000 to a UN PKO would need to be incorporated into this annual report. This law also requires U.S. support to the United Nations to be notified to Congress but drawdown support pursuant to FAA, Section 506(a)(1) [ 22 U.S.C. 2318(a)(1)] or FAA, Section 552(c)(2) [ 22 U.S.C. 2348a(c)(2)] are exempted from this notification requirement. Such drawdown support would be notified pursuant to the drawdown authority rather than a notification required by Title 22 U.S.C. 287b.

C11.2.8.2.2. Title 22 U.S.C. 287e-2 requires the US government to obtain a commitment from the UN to reimburse the US government if we provide drawdown assistance to the UN or to a foreign partner to assist that partner's participation in a UN PKO. The requirement to seek a UN's reimbursement commitment does not apply if the US provides less than $3M worth of support in a fiscal year to a given operation. The President can also waive the requirement to seek reimbursement by providing a 15-day notice to Congress.