C11.2.1. Definition and Purpose. The Foreign Assistance Act (FAA) authorizes the President to direct transfers of on-hand Department of Defense (DoD)-stock defense articles and services (as well as articles and services from the inventory and resources of any agency of the USG) and military education and training to foreign countries and international organizations in response to unforeseen military emergencies, humanitarian catastrophes, peacekeeping needs, or counternarcotics requirements. Except for transportation and related services where new contracts would cost less than providing such services with DoD assets, new procurement is not authorized and no new funds may be placed on existing contracts. Table C11.T4. summarizes the legal authorities for different types of drawdowns.

Table C11.T4. Drawdown Legislation Summary

C11.2.2. Who Is Eligible to Receive a Drawdown? Defense articles and/or services may be drawn down and transferred to a friendly foreign country or international organization only if the President issues a PD in accordance with the FAA. An FAA, section 503 eligibility determination must be completed by the Department of State (DoS) and the FAA, section 505 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 are usually precipitated by an emergency in a foreign country or region. In emergency drawdowns, DoD, DoS, and the National Security Council (NSC) staff coordinate the USG response. This interagency process determines which existing statutory authority applies and identifies which articles and services should be provided. Potential contributing agencies (e.g., Department of Defense, Department of Treasury, Department of Justice) and the military services furnish valuation and availability (V&A) data to the DoS indicating the estimated value of the articles and services proposed for the drawdown. The V&A data and the scope of support form the basis for the PD that authorizes a specific maximum dollar value authority for the drawdown. Requirements may be determined 24-48 hours before an Execute Order (EXORD) is issued, but more commonly within 1-2 weeks. The EXORD is the operational requirement document that identifies the articles and services to be provided under the drawdown, as well those organizations responsible for providing the articles and services. Emergency drawdowns end when the PD authority has been exhausted or the response to the emergency has officially ended.

C11.2.3.2. Non-Emergency Drawdowns. Drawdowns may be authorized in non-emergency situations to support mid- to long-term foreign policy initiatives. Non-emergency drawdown procedures are similar to emergency drawdown procedures. In non-emergency situations, the PD provides the value of the drawdown that cannot exceed the existing or special legislative authority. The time-line to determine requirements is often one to six months before an EXORD is issued. Delivery of articles and services may take an extended period of time. Non-emergency drawdowns end when the PD authority has been exhausted.

C11.2.4. Types of Articles, Services, and Training Provided Under Drawdowns.

C11.2.4.1. Articles and Services. Equipment must already be in DoD stocks. DoD employees normally perform services under drawdowns, but contractors may also provide services on a case-by-case basis as approved by DSCA. Supplies or services under existing DoD contracts may be used for drawdown purposes if the use is within the scope of the PD and funds have been previously obligated. Where possible, complete support packages are provided for major end items to include training for operation and maintenance of the major end item. Spare parts requisitions are processed on a "Fill or Kill" basis. Unless otherwise authorized, materiel must be provided in condition code "B," or Full Mission Capable (FMC) condition, or -10/-20 standards or better. MILDEPs cannot place a hold, reserve, or fence equipment or spares prior to the release of DSCA's EXORD.

C11.2.4.2. Transportation. New commercial contracts for transportation and related services may be used if the cost is less than the cost to use USG assets. Normally, the MILDEP providing the equipment must fund the transportation of that equipment to its final destination. The MILDEP reimburses the U.S. Transportation Command (TRANSCOM) for air and/or sealift of the equipment. 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).

C11.2.4.3. Defense Working Capital Fund (DWCF) Items. DWCF items may be used to fulfill drawdown requirements. In accordance with Under Secretary of Defense (Comptroller) (USD(C)) policy, the MILDEPs must reimburse the DWCF for all materiel and services provided. These costs must be charged and accounted for under the current year Operations and Maintenance (O&M) funds.

C11.2.4.4. Fuel. Fuel drawdowns are handled in the same way as DWCF materiel. Defense Logistics Agency (DLA)'s Defense Energy Support Center (DESC) manages fuel contracts for all MILDEPs. As with any other commodity, MILDEPs can use O&M or Working Capital Funds (WCF) obligational authority to fund, via Military Interdepartmental Purchase Request (MIPR), fuel drawdowns supplied from DESC existing contracts. Use of this funding can impact both cash and obligational authority for normal MILDEP operations; therefore such issues should be carefully coordinated with the MILDEPs and reported to USD(C) for inclusion in subsequent MILDEP budget requests. As with any other type of drawdown commodity, new contracts are not permitted without special legislative authority. Therefore, the types of fuel available for drawdowns is limited to those available through DESC's existing bulk fuels contracts at the time of drawdown. Special coordination is required for the transportation, delivery, storage and distribution of fuel.

C11.2.5. Value of Drawdowns. Due to the often-abbreviated timelines available to develop V&A data for drawdowns, it is critical to ensure that projected values are as accurate as possible. Close coordination between DSCA and the MILDEPs during drawdown execution is critical to reconcile values as early as possible. Actual value of drawdowns is normally available 30-90 days after delivery of the equipment. The value of the drawdown does not include FMS surcharges. Value of articles, services, and training is determined using the following guidance:

C11.2.5.1. Value of Articles. The value of drawdown articles is calculated in accordance with DoD 7000.14-R, Volume 15, Chapter 7.

C11.2.5.2. Value of Training. The value of drawdown military education and training is based on the additional costs that are incurred by the USG to provide the training (i.e., Foreign Military Financing (FMF) Grant or incremental rate as specified in DoD 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 "tasked" 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. Drawdown Process. Table C11.T5. summarizes the drawdown planning and development process. Additional information may be found in the DSCA Action Officer (AO) Handbook for Foreign Assistance Act (FAA) Drawdown of Defense Articles and Services.

Table C11.T5. Drawdown Process

C11.2.7. Congressional Reporting for Drawdowns. DSCA (Business Operations Directorate) prepares reports to Congress on Drawdowns as required by law.

C11.2.7.1. Reports to Congress on drawdowns are required by law.

C11.2.7.2. FAA, Section 506 Report. FAA, section 506 requires the DoD (DSCA (Business Operations Directorate)) reports to Congress details on all the defense articles, defense services, and military education and training delivered to the recipient country or international organization upon delivery of such articles, or completion of services, or education and training. The report must also indicate whether any savings were realized by using commercial transportation services rather than acquiring those services from USG transport assets.

C11.2.7.3. Reporting for Drawdowns Under Special Authorities. For special drawdown authorities, there may be additional reporting requirements authorized by legislation in any fiscal year.