Appendix 8 - Indo-Pacific Maritime Security Initiative
MSI
SC
Yes
Temporary
Expires: December 31, 2025
Section 1263 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2016 (P.L. 114-92), as amended
All Partners in the Indo-Pacific Region
Provides:
- Construction (Small)
- Defense Services
- Equipment
- Supplies
- Training
MSI.1.1. Section 1263 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2016 (P.L. 114-92), as amended, provides authority for the Indo-Pacific Maritime Security Initiative (MSI) until December 31, 2025. The Secretary of Defense (SECDEF), with the concurrence of the Secretary of State (SECSTATE), is authorized to provide assistance (equipment, supplies, and small-scale military construction) and training to the eligible partner military or security forces of such partners that have maritime security missions as part of their respective fundamental responsibilities for the purpose of increasing multilateral maritime security cooperation and maritime domain awareness of foreign partners in the area of responsibility of the United States Indo-Pacific Command (INDOPACOM). The DoD interprets the MSI legislation to allow for the provision of defense services. The DoD may also use this initiative for training for ministry, agency, and headquarters-level organizations. MSI is a critical tool for strengthening alliances and attracting new partnerships in the Indo-Pacific as outlined in the National Defense Strategy. It is designed to develop benefitting partners’ abilities through a comprehensive approach to conduct critical maritime security and maritime domain awareness capabilities to benefitting partners in the region and encourages long-term cooperation through bilateral and multilateral exercises and human capital development without necessitating U.S. involvement while still advancing interoperability with U.S. forces in the region. These investments have and continue to enhance the ability of benefitting partners to monitor their Exclusive Economic Zones and adjacent waterways with an improved ability to detect and analyze air and maritime activities, share information among regional partners, and contribute to and participate in regional maritime exercises or contingency operations.
MSI.2.1. The Indo-Pacific Maritime Security Initiative (MSI) provides authorization to support all partners in the Indo-Pacific region with equipment, defense services, supplies, training, and small-scale military construction for the purpose of increasing multilateral maritime security cooperation and maritime domain awareness of foreign partners in the area of responsibility of the United States Indo-Pacific Command (INDOPACOM).
MSI.2.1.1. The Secretary of Defense (SECDEF) shall prioritize assistance, training, or both, to enhance (1) multilateral cooperation and coordination among recipient partners; or (2) the capabilities of a recipient partner to more effectively participate in a regional organization of which the recipient is a member. Beginning in Fiscal Year (FY) 2020, maritime security and maritime domain awareness (MDA) capacity building requirements - including those intended to be fulfilled via MSI - are part of the five-year Significant Security Cooperation Initiative (SSCI) and also to associated planning documents referred to as Initiative Design Documents (IDDs). These efforts are led by the geographic Combatant Commands (CCMDs).
MSI.2.1.2. Assistance and training provided using the MSI authority will include elements that promote the following:
MSI.2.1.2.1. Observance of and respect for the law of armed conflict, the rule of law, human rights, and fundamental freedoms.
MSI.2.1.2.2. Respect for legitimate civilian authority within the partner to which the assistance is provided.
MSI.2.1.2.3. The elements referenced above in Sections MSI.2.1.2.1. and MSI.2.1.2.2. are together referred to as mandatory Human Rights training. See DSCA Policy Memorandum 22-38.
MSI.2.2. Leahy Vetting. International Military Students (IMSs) trained under MSI are subject to vetting per 10 U.S.C. 362 (DoD Leahy Law).
MSI.2.3. Recipients. The Benefitting partners that may be provided assistance and training under the MSI authority are all partners in the INDOPACOM area of responsibility (AOR).
MSI.2.4. Incremental Expenses. Incremental Expenses are associated with training or engagement of ministry or headquarters Personnel of Certain Other Foreign Partners (see Section MSI.2.6. regarding authorized Benefitting partners). Incremental expenses may include proper costs of rations, fuel, training ammunition, transportation and other goods and services consumed by the partner as a direct result of the partner’s participation in activities authorized under this authority.
MSI.2.5. Recipients. The recipients that may be provided with incremental expenses are Brunei, Singapore, Taiwan, and India.
MSI.2.6. Building Partner Capacity Interim Accounting Solution. MSI is subject to the interim Building Partner Capacity (BPC) Accounting Solution (see Section C15.3.1.1. for general guidance).
MSI.2.7. Transportation and Packing, Crating, & Handling. Due to the size and nature of the program, DSCA permits MSI programs to continue to use the prime vendor as the primary transportation mode. If it is determined that the defense articles need to be consolidated at the Joint Consolidation Point (JCP) with the Delivery Term Code (DTC) 2/7, the Army current year transportation case or the Navy current year transportation allocation will be used to fund the transportation and packing, crating, & handling (PC&H).
MSI.2.8. Administrative Program Support Costs. DSCA (Office of International Operations, Global Capability Development Division (IOPS/GCD)) will validate the annual administrative program support costs and provide the approved levels to DSCA (Office of Business Operations (OBO)) for funds transfer.
MSI.3.1. Security Cooperation Organization. The Security Cooperation Organization (SCO) generates maritime security and maritime domain awareness requirements based on Benefitting Partner need, absorptive capacity, and political will. The SCO also de-conflicts Indo-Pacific Maritime Security Initiative (MSI) programming with other security cooperation (SC) (Title 10) and security assistance (SA) (Title 22) activities at the Post team-level. SCOs seeking MSI funding will need to submit requirements through the Significant Security Cooperation Initiative (SSCI)/Initiative Design Document (IDD) process and have those requirements vetted by the Office of the Under Secretary of Defense for Policy (OUSD(P)), U.S. Pacific Fleet (PACFLT), and U.S. Indo-Pacific Command (INDOPACOM).
MSI.3.2. United States Pacific Fleet. PACFLT serves as the Executive Agent for all maritime security requirements generation and capacity building for INDOPACOM. PACFLT issues an annual Planning Order (PLANORD) to the SCO community to initiate maritime security requirements generation. PACFLT facilitates design, review, and prioritization of activities and projects that make up the annual MSI program in support of DoD objectives. PACFLT supports drafting of SSCI objectives and IDDs in coordination with INDOPACOM and the SCO community to ensure a holistic, cross-cutting approach to the challenges MSI seeks to address. PACFLT conducts regular analysis to monitor implementation and drafts annual assessment of Benefitting Partner capabilities to inform future design and programming. PACFLT coordinates implementation of specified training and exercise-based programming.
MSI.3.3. Commander, United State Indo-Pacific Command. INDOPACOM provides geographic Combatant Command (CCMD) oversight of PACFLT’s planning, prioritization, and execution. INDOPACOM prioritizes activities and projects under the annual MSI program ahead of OUSD(P)’s review and approval. INDOPACOM ensures annual MSI programs are aligned with Commander’s intent, strategy, and plans. INDOPACOM serves as lead point of contact (POC) for SCO and OUSD(P) community as it pertains to SSCI and IDD development.
MSI.3.4. Office of Deputy Assistant Secretary Global Partnerships. The Office of Deputy Assistant Secretary for Global Partnerships (ODASD(GP)) serves as lead POC within OUSD(P) for SC matters. ODASD(GP) coordinates closely with regional OUSD(P) offices, the geographic CCMDs, Joint Staff, DSCA, and Department of State (State). ODASD(GP) provides functional subject matter expertise specific to the area of responsibility, including planning and prioritizing SC activities for Under Secretary of Defense for Policy (USD(P)) approval. ODASD(GP) provides Policy oversight of PACFLT planning, prioritization, and execution in coordination with Office of Deputy Secretary of Defense South and Southeast Asia (ODASD(SSEA)). ODASD(GP) drafts and coordinates MSI Congressional Notifications (CNs) throughout DoD and the U.S. interagency with support from DSCA, and briefs congressional staff.
MSI.3.5. Office of Deputy Secretary of Defense South and Southeast Asia. ODASD(SSEA) serves as lead POC for regional engagement, bilateral relationships and objectives, and high-level DoD priority-setting. ODASD(SSEA) provides policy oversight of PACFLT planning, prioritization, and execution in coordination with ODASD(SC).
MSI.3.6. Defense Security Cooperation Agency.
MSI.3.6.1. Office of International Operations, Regional Execution Directorate, INDOPACOM Division. DSCA (Office of International Operations, Regional Execution Directorate, INDOPACOM Division (IOPS/REX/IPCOM)) ensures all Building Partner Capacity (BPC) programs complement and are not redundant with a Benefitting Partner Foreign Military Sales (FMS) cases and Foreign Military Financing (FMF) efforts.
MSI.3.6.2. Office of International Operations, Regional Execution Directorate, Global Capability Development Division. DSCA (Office of International Operations, Global Capability Development Division (IOPS/GCD)) provides support to the Regional Portfolio Director (RPD) within IOPS/REX/IPCOM in the MSI process, enabling the provision of capabilities to Benefitting Partners in support of U.S. foreign policy objectives in coordination with the Benefitting Partner SCOs, INDOPACOM, PACFLT, OUSD(P), DSCA (IOPS/REX/IPCOM), State, and Implementing Agencies (IAs).
MSI.3.6.3. Office of International Operations, Regional Execution Directorate Regional Portfolio Director. The RPD manages daily operations of the MSI program. The RPD serves as lead POC for IAs to ensure program actions and milestones are met. The RPD facilitates feasibility review; leads the development of Training and Equipment Lists (TELs); requests Price and Availability (P&A) data; prepares CNs tables; and monitors case development, implementation, and execution. The RPD communicates regularly with IAs, PACFLT, the DSCA (Office of Strategy, Plans, and Policy, Regional Planning and Program Design Directorate (SPP/RPPD)) Team, DSCA (IOPS/REX) Country Portfolio Directors (CPDs), the DSCA (Defense Security Cooperation University, Defense Institute of International Legal Studies (DSCU/DIILS)), and the DSCA (IOPS/REX/IPCOM) leadership to ensure program actions and milestones are met. The RPD collaborates with CPDs by responding to Requests for Information (RFIs) for equipment and training being delivered, by providing information on the type of capabilities being provided to a partner, and by providing advice on equipment or training that could be expedited to a partner due to urgent requirements. RPDs collaborate with CPDs during Program Management Reviews (PMRs) as required to provide status of programs.
MSI.3.6.4. Office of Strategy, Plans, and Policy, Regional Planning and Program Design Directorate) Security Cooperation Planner. The RPPD SC Planner ensures alignment with national strategy and DoD policy, ensures alignment of Institutional Capacity Building (ICB) activities to SC efforts under MSI and vice versa to enable full-spectrum capability development and ensures visibility of MSI programming by DSCA (IOPS/REX/IPCOM) Deputy and CPDs.
MSI.3.7. Department of State (Political-Military Bureau). Department of State, Bureau of Political-Military Affairs (State (PM)) Facilitates interagency coordination with DoD offices, agencies, and entities to ensure Title 10 investments and activities are complementary to State Title 22 efforts. Reviews and secures State concurrence on annual MSI programs ahead of CN.
MSI.3.8. Implementing Agencies. Conduct initial feasibility reviews. Develop P&A based on TELs and support case development. Lead case implementation and execution.
MSI.4.1. Memorandum of Request. The Training and Equipment List (TEL) serves as the memorandum of request (MOR) for the Indo-Pacific Maritime Security Initiative (MSI). Contact DSCA Office of International Operations, Global Capabilities Directorate (IOPS/GCD).
MSI.4.2. DoD entities other than the Security Cooperation Organizations (SCOs) who are requesting funds will also need to secure approval from the U.S. Country Team or American Institute in Taiwan (AIT) before activities will be considered as part of the annual MSI program.
MSI.5.1. Not later than 15 calendar days before exercising the Indo-Pacific Maritime Security Initiative (MSI) authority to provide assistance to a recipient Benefitting Partner, the Secretary of Defense (SECDEF) will submit to the appropriate committees of Congress a notification containing the following:
MSI.5.1.1. The recipient Benefitting Partner.
MSI.5.1.2. A detailed justification of the program for the provision of the assistance or training concerned, and its relationship to U.S. security interests.
MSI.5.1.3. The budget for the program, including a timetable of planned expenditures of funds to implement the program, an implementation timeline for the program with milestones (including anticipated delivery schedules for any assistance under the program), the military department or component responsible for management of the program, and the anticipated completion date for the program.
MSI.5.1.4. A description of the arrangements, if any, to support host partner sustainment of any capability developed pursuant to the program, and the source of funds to support sustainment efforts and performance outcomes to be achieved under the program beyond its completion date, if applicable.
MSI.5.1.5. A description of the program objectives and an assessment framework to be used to develop capability and performance metrics associated with operational outcomes for the recipient force.
MSI.5.1.6. The specific unit or units whose capacity to engage in activities under a program of assistance or training will be built under the program.
MSI.5.1.7. The amount, type, and purpose of the support to be provided.
MSI.5.1.8. The amount, type and purpose of assistance and training provided in the three previous fiscal years, a description of the elements of the Theater Campaign Plan (TCP) and Integrated Country Strategy (ICS) or Integrated Mission Strategy (IMS) that will be advanced by MSI assistance, and whether that assistance could be provided under Section 333 or other DoD security cooperation (SC) authorities or other Department of State (State) SC authorities, and an identification of each such authority.
MSI.5.2. An annual report to Congress for the MSI programs is provided by Deputy Assistant Secretary of Defense for Global Partnerships (DASD(GP)). DSCA will support DASD(GP) with reporting data
MSI.5.3. Any other matter the SECDEF considers appropriate.
MSI.6.1. Building Partner Capacity Letter of Offer and Acceptance. Indo-Pacific Maritime Security Initiative (MSI) Letters of Offer and Acceptance (LOAs) are subject to the Building Partner Capacity (BPC) guidance found in Chapter 15. The MSI authority lacks time limited exceptions to the bona fide needs rule such as Cross Fiscal Year authority found in 10 U.S.C. 333. While MSI authority lacks specific statutory exceptions to the Bona Fide Need (BFN) Rule such as those provided for in 10 U.S.C. 333, other generally recognized exceptions to the BFN Rule may be applicable (e.g., 10 U.S.C. 3133, production/delivery long-lead time, or contractor-provided non-severable services).
MSI.6.2. Training. Funds for training are considered obligated on the date the student enters the course. Any USG-provided training must be obligated and accomplished within the appropriation fiscal year and may not extend beyond the period of funds availability, regardless if one- or two-year funds were used to fund the training.
MSI.6.3. Contractor Provided Services. Contractor provided services are limited to a total Period of Performance (POP) of 12 months and must be obligated during the appropriation period of availability.
MSI.6.4. Case Implementation Phase.
MSI.6.4.1. Accelerated Implementation. Accelerated Implementation (AI) is a DSCA (Office of Business Operations (OBO)) process for implementing cases when financial management systems are not operational and there is a request to implement a BPC case quickly. DSCA introduced this process in order to decrease the number of days it takes to get from the Financial Implementation (FinImp) to the Implementation milestone in Defense Security Assistance Management System (DSAMS). This process allows Implementing Agencies (IAs) to pull obligation authority faster, which will then allow the legal obligations to start as soon as the IAs need. Of note, the AI process is intended to be completed from the 1st through the 20th of the month. This is to ensure that it is completed before financial management systems close. After that date, the case will need to be instead emergency implemented.
MSI.6.4.2. Emergency Implementation. Emergency Implementation (EI) is a separate process outlined in Section 6.1.2. A general guideline is that AIs are to be completed that day, while EIs have to be completed immediately.
MSI.6.4.2.1. If there are contracting or operational requirements and at the end of the fiscal year, DSCA (OBO) may initiate emergency implementation procedures.
MSI.6.4.3. DSCA (Office of International Operations, Global Capabilities Division (IOPS/GCD)) will work with DSCA (Office of Administration, Performance Improvement and Effectiveness Directorate (ADM/PIE)) to establish mechanisms to monitor case implementation status - tracking and annotating reasons for late implementation - and measure Section 333 case implementation timelines against the above milestones and standards.
MSI.6.4.4. IAs will enter requisitions in their respective logistics management system within 30 days after BPC case implementation. IAs are responsible for the allotment, commitment, and obligation of funds for their respective BPC cases. Congress, Office of the Under Secretary of Defense-Cost Assessment and Program Evaluation (OUSD-CAPE), and Office of the Under Secretary of Defense (Comptroller) (OUSD (C)) use obligation rates in the second quarter of the current year of the appropriation to determine rescissions. The IAs should strive to implement 80 percent of cases tasked for a particular tranche within 30 days from the funds release of the Congressionally-notified programs. Slow case implementation and low obligation rates continue to impact International Security Cooperation Program (ISCP) account rescissions.
MSI.6.4.5. Obligation Rates. Congress, OUSD(CAPE) and OUSD(C) use obligation rates to evaluate program performance, determine current year rescissions, and inform future appropriations. Stakeholders measure obligation rates as a percentage of the appropriated budget for the security cooperation (SC) Account. While DoD has until the end of the fiscal year to obligate expiring funds, stakeholders use obligation rates at the end of the 3rd Quarter of each fiscal year to inform next year appropriation decisions. As such, the IAs should strive to obligate 80 percent of expiring funds by June 30 of each year.
MSI.6.4.5.1. Each year, DSCA will hold two BPC mid-year obligation rate reviews to review progress on executing programs consistent with Congressional Notifications (CNs). During these reviews, DSCA and the IAs will identify the total value of funds the IAs require to execute programs by June 1 and will ask the IAs to commit to obligate at least 90 percent of those funds by September 30. During the BPC mid-year obligation rate reviews, DSCA and the IAs will identify residual and undistributed funds no longer required at the program level and facilitate reallocation of funds against other priority requirements. Expiring year funds returns to DSCA will not be accepted after June 2 of that fiscal year.
MSI.6.4.5.2. Undistributed funds are funds originally designated for a specific program on the CN but have not been placed on a case or sent via direct funds transfer. These funds are still available to the DoD to support the specific notified program. If the program no longer needs the funds based on revised Price and Availability (P&A), the CN program value is reduced, and those funds may fund other priority requirements.
MSI.6.4.5.3. Throughout the period of availability of funds, programs’ value ceilings are periodically reduced in all government accounting systems to an adjusted level, called the Adjusted CN value. This number is fluid and can be adjusted down or up depending on requirements. Stakeholders also ensure that it never exceeds the original CN value.
MSI.6.4.5.4. A program’s CN value can be adjusted for a number of operational reasons, for example the Benefitting Partner no longer needs or wants a particular capability, estimated costs were lower than expected, etc. These funds are not immediately returned to Treasury. They are used for any other operating costs for programs across the account. Any remaining funds are still returned through normal channels at the end of the year.
MSI.7.1. Section 386 Annual Report. Indo-Pacific Maritime Security Initiative (MSI) totals are included in the Section 386 annual report to Congress.
MSI.7.2. Foreign Military Training Report. All training conducted under MSI is subject to inclusion in the annual Foreign Military Training Report (FMTR). See Section C10.21.2. for more information.
MSI.7.3. Indo-Pacific Maritime Security Initiative Annual Report. Section 1251(h) of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2020 (Public Law 116-333), requires the Secretary of Defense (SECDEF) to submit to the appropriate committees of Congress an assessment of Benefitting Partner’s capabilities relating to maritime security and maritime domain awareness for the preceding calendar year no later than March 1. The report should include the recipient’s capability enhancement priorities, including how such priorities relate to the theater campaign strategy, a discussion by partner of priority capabilities that DoD plans to enhance using MSI authority and other security cooperation (SC) and security assistance (SA) authorities, and the timeline for assistance and training for each capability. Additionally, the report will include information on the status of funds, including funds allocated but not obligated or expended; information on the delivery and use of assistance and training provided under MSI; information on the timeliness of assistance; a description of the reasons DoD chose to use the MSI authority; an explanation of any impediments to timely obligation of expenditure of funds; or any significant delay in delivery of assistance and training.
MSI.7.4. Assessment, Monitoring, and Evaluation. MSI is subject to 10 U.S.C. 383 provisions on Assessment, Monitoring and Evaluation (AM&E).
Indo-Pacific Maritime Security Initiative (MSI)
Program | Program | Purpose | Fund Source | Appropriation | Appropriation | Funds Availability | Funds Cancel |
|---|---|---|---|---|---|---|---|
V2 | P.L. 114-92 as amended by P.L. 114-328 and P.L. 115-232, P.L 116-92 and P.L. 117-81 | Increase maritime security and maritime domain awareness for foreign countries along the South China Sea and the Indian Ocean | 97 6 0100 | - | 2016 | 2021 | |
V9 | 97 17/18 0100 | - | 2018 | 2023 | |||
AZ | 97 18/19 0100 | - | 2019 | 2024 | |||
QF | 97 19/20 0100 | - | 2020 | 2025 | |||
CQ | 97 20/21 0100 | - | 2021 | 2026 | |||
DP | 97 20 0100 | - | 2020 | 2025 | |||
ED | 97 21/22 0100 | - | 2022 | 2027 | |||
PJ | 97 22/23 0100 | - | 2023 | 2028 | |||
PQ | 97 23/24 0100 | - | 2024 | 2029 | |||
PV | 97 24/25 0100 | - | 2025 | 2030 | |||
WL | 97 XX/XX 0100 | Yearly Appropriation Public Laws | - | Fiscal year after appropriation authority | Five years after period of availability ends | ||
97 25/26 0100 | FY25/26 (Two-Year O&M) | December 20, 2024 | FY30 | ||||
WM | 97 XX/XX 0100 | Yearly Appropriation Public Laws | FYXX/XX (Two-Year O&M) | Fiscal year after appropriation authority | Five years after period of availability ends |
MSI.9.1. N/A