DoDI 5000.80 Middle Tier Acquisition Change 1 – Exportability Policy Update

My last article on DoD acquisition program exportability, published in spring 2023, summarized the U.S. Government’s increasing emphasis on designing and developing exportable DoD systems and equipment.

Context

History has shown repeatedly that the Department of Defense (DoD) trains -- and almost always fights -- together with allied and friendly nations in a coalition environment.? In addition, several analyses of DoD Major Defense Acquisition Programs (MDAPs) over the past twenty years have demonstrated that ~75% of our MDAP systems are eventually exported to U.S. allies and friends during their life cycle.? Our National Security and Defense strategy and policy emphasizes the importance of defense exportability. ?MDAPs and other Acquisition Category (ACAT) II & III systems developed for use only by U.S. forces are expensive to acquire, operate, and maintain throughout their life cycle.? In some situations, DoD’s U.S.-only systems have limited utility in coalition operations due to lack of interoperability and difficulties in developing effective tactics, techniques, and procedures for combined arms use in coalition environments. ?DoD's International Acquisition & Exportability (IA&E) objectives shown in the chart below highlight the reasons why the government and industry defense acquisition community should design, develop, field, and sustain exportable systems and equipment. ?

USG/DoD Exportability Policy History

On the “good news” side of the ledger, the USG’s Conventional Arms Transfer (CAT) policy issued in May 2018 eventually resulted in several important DoD policy changes in the defense exportability area:

• DoD Adaptive Acquisition Framework (AAF) policy updates to DoDD 5000.01 (Defense Acquisition System), DoDI 5000.85 (Major Capability Acquisition), and DoDI 5000.83 (Technology and Program Protection) implemented these new “building in exportability” statutory and USG-level CAT policy requirements.?
• A comprehensive Joint Capabilities Integration and Development System (JCIDS) Manual revision and OUSD (Acquisition & Sustainment) Guide to DoD IA&E Practices emphasize the need for consideration of the defense exportability dimensions summarized in the chart below in new and modified DoD systems acquired by Program Executive Officers (PEOs), Program Managers (PMs), and Cross Functional Teams (CFTs).

On the “bad news” side of the ledger, DoD's often-used AAF Middle Tier Acquisition (MTA) pathway described in DoDI 5000.80 has allowed PEOs, PMs and CFTs to ‘opt out’ of considering and incorporating robust program protection and defense exportability features in their Rapid Development phase design and product support planning since it would 'slow the program down.' ?Since the MTA pathway was created, real-world experience has shown that many programs transitioning to MTA Rapid Fielding or MCA Milestone B (Engineering & Manufacturing Development (EMD)) -- see AAF Pathway graphic below -- have encountered significant problems meeting the exportability requirements contained in the JCIDS Manual and DoDI 5000.85 during Production & Deployment and Sustainment & Operations phases. ?

Why has this happened? ?Due to the aforementioned exportability ‘opt out’ in DoDI 5000.80, these programs’ US-only MTA Rapid Development configurations did not include robust program protection measures or defense exportability features based on pertinent USG Technology Security Foreign Disclosure (TSFD) export policy.? As programs matured, and international interest in acquiring such systems grew, these programs’ MTA Rapid Fielding or MCA Milestone B acquisition reviews drove the need for significant system redesign efforts to develop USG TSFD-compliant produceable, supportable, and exportable system configurations consistent with DoDD 5000.01 guidance.? When this 'late to need' defense exportability design scenario occurs, the?'time saved'?during a program's MTA Rapid Development phase becomes?'time lost'?during its MTA Rapid Fielding or MCA EMD and initial Production & Operations phases when the need for allied & friendly nation exportability and interoperability typically arises.

MTA Exportability & Interoperability Policy Revisions ?

DoD issuance of?DoDI 5000.80 Change?1?on November 25, 2024 establishes expanded MTA exportability and allied interoperability requirements in the follow paragraphs:

• “For programs that include international partner involvement, program managers (PMs) must ensure that all?efforts to design and implement exportability?to foreign partners are consistent with Sections 2457 and 4067 of Title 10, United States Code (U.S.C.); Section 1049 of Public Law 115-232; and other applicable statutes.” (1.2.e.)
• “[PMs must] “Tailor- in” reviews, assessments, and relevant documentation that results in an acquisition strategy customized to the unique characteristics and risks of their program, including intellectual property and?exportability.” (2.6.b.(3))
• DoD Components will develop a process for considering [rapid fielding] lifecycle costs and address issues of logistics support and training; system, security risk, joint, and?coalition interoperability; and planning for cooperative opportunities, to include foreign sales. This process will result in a tailored lifecycle sustainment plan, in accordance with DoDI 5000.89. MTA programs that exceed the MDAP threshold must comply with the requirements for covered systems in Sections 4323 and 4324 of Title 10, U.S.C., and DoDI 5000.91. (3.2.d.)
• Each MTA rapid fielding program will include?sustainment requirements?in its design requirements, system specifications, and contracts. These requirements are the same metrics used by MDAP and major capability acquisition pathway systems (e.g., materiel availability, operational availability, reliability, maintainability, human systems integration, and operating and support costs). (3.2.f.)

Recent DAU Experience

The ‘myth’ that all MTA programs are U.S.-only is simply not true.

Over the past few years, DAU’s International Center has been providing IA&E mission assistance support to three separate Military Department MTA programs with substantial international involvement.?All three are transitioning from MTA Rapid Development to either MTA Rapid Fielding or MCA Production and Sustainment phases.

• Two of the programs fall under the umbrella of the Australia – UK – US (AUKUS) Partnership.? Both have ongoing International Cooperative Program (ICP) R&D partnership international agreement efforts in the MTA Rapid Development phase that are transitioning to production and sustainment phases under either MTA Rapid Fielding or MCA ‘rules.’? Follow-on ICP Production, Sustainment & Follow-On Development (PSFD) International agreement efforts are currently in process between DoD and the partner nation on both programs.
• A third program is transitioning from MTA Rapid Development to a ‘mini-EMD’ phase followed by MCA Production and Sustainment phases.?Fortunately, this program conducted an MTA Defense Exportability Features (DEF) study with both MTA contractors, leveraging this into a second mini-EMD phase DEF study with the winning contractor.? The DoD Component responsible for the program also negotiated “Cooperative Program Feasibility and Assessment” Project Agreements with three close allies to learn more about their potential requirements for the system.? This program's ongoing Defense Exportability Features case study – based on potential ICP and Foreign Military Sales (FMS) arrangements with allied and friendly nations – is focusing on potential export sales and initial “total package sustainment” arrangements early in the production and sustainment phases.

Looking Forward

Current and future MTA programs will need to comply with the more stringent exportability and sustainment provisions of DoDI 5000.80 Change 1 if future ICP or FMS international acquisition efforts are likely.? Moreover, ongoing and future MTA programs with international involvement could benefit from the experience of other ‘pathfinder’ MTA programs that have successfully implemented both the letter and spirit of:

• 10 U.S. Code § 4067 (Technology Protection Features Activities);
• 10 USC § 2457 (Standardization of Equipment with NATO Members);
• DoDI 5000.83 (Technology and Program Protection to Maintain Technological Advantage);
• DoDI 5000.85 (Major Capability Acquisition); and?
• JCIDS Manual

with respect to allied & friendly nation exportability, interoperability, and sustainability in coalition operations.

Defense exportability is a team effort requiring initial DoD and U.S. industry action followed by cooperative defense acquisition engagement with allied and friendly nations interested in system acquisition. Hopefully DoD 5000.80 Change 1 will encourage future DoD MTA programs to consider defense exportability early on with resulting long term benefits to all key U.S. and coalition partner nation stakeholders.

Prof K