PD.2.1. Partner Eligibility. Defense articles and services may be drawn down and transferred to a friendly foreign partner or international organization only if the President issues a Presidential Determination (PD) in accordance with the Foreign Assistance Act (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 partner recipient before the drawdown can be executed.

PD.2.2. Types of Drawdowns.

PD.2.2.1. Emergency Drawdowns. Drawdowns may be precipitated by an emergency in a foreign partner’s territory 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 drawdown 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 the Under Secretary of Defense (Comptroller) (OUSD(C)) indicating the estimated value of the articles and services are anticipated to drawdown. 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 directly to Office of the Secretary of Defense for Policy (OSD(P)) 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 U.S. forces. The President accomplishes a PD to define the scope and the maximum dollar value authorized for the specific drawdown. After an emergency drawdown is authorized a drawdown execution message is issued. The drawdown execution message, prepared and issued by the 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 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.

PD.2.2.2. 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 PD.T1.). 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 process that may take up to 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 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 the DSCA IOPS to issue a termination message.

PD.2.3. 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 training for O&M of the major end item.

PD.2.3.1. 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.

PD.2.3.1.1. 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) Volume 12, Chapter 23, Section 2305, a MILDEP a 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.

PD.2.3.1.2. Special Defense Acquisition Fund. A MILDEP may not purchase items from the Special Defense Acquisition Fund (SDAF) to provide drawdown support unless allowed on a case-by case basis (see Section SDAF.6.8.6.).

PD.2.3.2. 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 and 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 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.

PD.2.3.3. Articles Requiring Targeting Infrastructure Compliance. The MILDEPs must provide an assessment if the partner 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.).

PD.2.3.4. 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. Services are considered delivered at time of performance and upon completion.

PD.2.3.5. Transportation and Packing, Crating, and Handling. The 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).

PD.2.3.5.1. 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 outside of the continental United States (OCONUS) transportation effort(s) should fall under a separate transportation line on the PD.

PD.2.3.5.2. The MILDEP allocated Transportation and PC&H in the execution message is responsible for the cost to transport equipment to the end user, to include reimbursing USTRANSCOM for all costs incurred when applicable.

PD.2.3.5.3. 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.

PD.2.3.6. Cargo Preference Act of 1954. As specified in 46 U.S.C. 55305, all drawdown items transferred by ocean carriers must follow U.S. cargo preference requirements (See Section C7.9.). Recipient partners 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:

PD.2.4. Value of Drawdowns. It is critical to ensure that projected values are as accurate as possible. Close coordination between the 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 drawdown to DSCA (OBO/FPRE/FRC) in the DSCA 1000 system no later than 90 days after delivery of the equipment (See Section PD.7.1.1.). Value of articles, training, and services is determined using the following guidance:

PD.2.4.1. 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 DOD FMR 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.

PD.2.4.2. Value of Training. The value of drawdown military education and training is based on the additional or incremental costs incurred by the USG to provide the training (e.g., Foreign Military Financing (FMF) Grant or incremental rate pursuant to DoD FMR 7000.14-R, Volume 15, Chapter 7).

PD.2.4.3. 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 is included when computing the value of drawdown services. Value does not include salaries of active-duty members of the U.S. Armed Forces and unfunded civilian retirement and other benefits.