C15.1.1. General. Building Partner Capacity (BPC) programs encompass security cooperation and security assistance activities that are funded with U.S. Government (USG) appropriations and administered as cases within the Foreign Military Sales (FMS) infrastructure. These programs may provide defense articles and/or services to other USG departments and agencies under the authority of the Economy Act or other transfer authorities for the purpose of building the capacity of partner nation security forces and enhancing their capability to conduct counterterrorism, counter drug, and counterinsurgency operations, or to support U.S. military and stability operations, multilateral peace operations, and other programs. They are crucial tools used by the Department of Defense (DoD) and other USG agencies in furtherance of U.S. national security objectives. To enable BPC program execution through existing security assistance automated systems, the DoD Implementing Agency (IA) develops a pseudo Letter of Offer and Acceptance (LOA) in the Defense Security Assistance Management System (DSAMS). The pseudo LOA is not signed by the partner nation that will ultimately receive the articles and/or services, but serves to document the transfer of articles and services to the USG Requesting Authority.

C15.1.1.1. Economy Act. The Economy Act, 31 U.S.C., Section 1535 and Section 1536, is a general authority for the interagency or the intradepartmental furnishing of goods and services on a reimbursable basis. Under the Economy Act, the purchasing department or agency must pay the performing agency’s actual costs of the goods or services provided, to include direct and indirect costs. The entire amount of an Economy Act order to fill a BPC program requirement is obligated by the purchasing agency when the order is accepted (DoD FMR Volume 11A, Chapter 3). The performing agency must further obligate the funds before the period of availability for new obligation expires.

C15.1.1.2. DoD Appropriations. Congress appropriates funding to DoD for specific BPC programs through the annual DoD Appropriations Act, and in certain cases, through other appropriations acts. For example, Congress first enacted legislation establishing and appropriating funds to the Afghanistan Security Forces Fund (ASFF) in 2005 and appropriated additional funds for ASFF in several subsequent years. Pursuant to the Economy Act, when the Office of the Under Secretary of Defense (Comptroller) (OUSD(C)) or other DoD component transfers funds to DSCA in support of a BPC program, the funds must be obligated within their period of availability.

C15.1.1.3. Other USG Agency Appropriations. Congress authorizes and appropriates funds to the Department of State (DoS) and other USG agencies for security cooperation and security assistance activities. These agencies may, in turn, transfer funds to DSCA (often via a Foreign Assistance Act (FAA), Section 632(b) Memorandum of Agreement (MOA)), identifying a specific requirement for defense articles and services for a partner nation under the authority of a BPC program. When interagency funds are transferred into the FMS Trust Fund for BPC programs, they are considered obligated upon signature of the MOA (as stated in the document). IAs must then obligate the funds contractually or through other means.

C15.1.2. BPC Case Process. The process of developing and executing a BPC case is organized into five phases:

Management of appropriated funds and communications with the Benefitting Country must be recognized in each phase.

C15.1.2.1. Planning and Requirements Definition. A USG Requesting Authority, which is usually the Geographical Combatant Command (CCMD), but could also be another DoD or non-DoD agency, defines and initiates the BPC requirement to support specific USG objectives. The IA may conduct a feasibility assessment to determine the most appropriate solution. The Requesting Authority then submits an actionable Memorandum of Request (MOR) to the IA. Note: The BPC MOR is similar to the FMS Letter of Request (LOR), which is submitted by a foreign purchaser.

C15.1.2.2. Case Development. During case development, the IA and the Requesting Authority coordinate to document the requirements and costs on a pseudo LOA. The DSCA Case Writing Division (CWD) conducts a quality assurance review, prepares the final version of the LOA, and coordinates review and approval by DSCA and DoS. Also during case development, the IA prepares a Case Advisory document for the Benefitting Country, which informs our partner nation of USG expectations. See Figure C15.F2.

C15.1.2.3. Case Implementation. The IA accepts the Offered case in DSAMS and DSCA (Business Operations Directorate) authorizes required funds to be transferred into the FMS Trust Fund. Defense Finance an Accounting Service – Indianapolis (DFAS-IN) implements the case in the Defense Integrated Financial System (DIFS) and obligation authority is passed to the IA.

C15.1.2.4. Case Execution. During case execution, the IA must often work quickly to obligate funds before they expire. The IA procures the defense articles and services according to DoD regulations. Materiel is transported using the Defense Transportation System (DTS) or other government-procured transportation, while the IA retains oversight of the transportation process and assists with resolution of transportation issues that may arise. After materiel has arrived in country and has been inventoried, the Security Cooperation Organization (SCO) transfers custody and responsibility of the materiel and services to the Benefitting Country and begins end use monitoring (EUM), as applicable.

C15.1.2.5. Case Closure. The BPC case closure phase can begin as soon as supply services are complete (i.e., all materiel and services have been delivered). The IA will expend BPC program funds no later than July 31st of the funds cancelling fiscal year or other deadline specified in funding documents. The IA must ensure that residual funds are identified for return as soon as possible. When closure activities are complete, DFAS-IN closes the case in DIFS.

C15.1.3. Responsibilities. Refer to Section 1.3. for general responsibilities of the contributors to case development and execution. Specific roles and responsibilities that pertain to the management of BPC programs are summarized below.

C15.1.3.1. Department of State (DoS) Bureau of Political Military Affairs (PM). DoS(PM) is responsible for ensuring that, pursuant to Section 505 of the FAA, there is an agreement (a “Section 505 Agreement”) with each partner nation eligible for BPC program assistance and for ensuring that, if needed, the Benefitting Country acknowledges that the assurances provided in the 505 Agreement apply to specific BPC programs. This may be accomplished by a unilateral Diplomatic Note, or other appropriate means, that clearly demonstrates the Benefitting Country understands its responsibilities. DoS(PM) approves each pseudo LOA based on the daily State List report provided by DSCA CWD. DoS(PM) is responsible for oversight, Congressional Notification, and funding of Peacekeeping Operations (PKO) programs, including Global Peace Operations Initiative (GPOI) programs.

C15.1.3.2. Office of the Under Secretary of Defense for Policy (OUSD(P)). The OUSD(P) is responsible for oversight of DoD-funded BPC programs. For certain programs, OUSD(P) prioritizes and ensures fully justified requirements are coordinated. For the Coalition Readiness Support Program (CRSP) and for the Section 1206 Program, OUSD(P) is responsible for obtaining Secretary of Defense approval on the amount of training, equipment, and supplies to be provided. For the Section 1206 Program, OUSD(P) also provides policy oversight and guidance, leads the DoD proposal review process, and coordinates with State to secure the Secretary of State’s approval. Subsequent to Secretary approval, the OUSD(P) submits the Congressional Notification packages to eight committees and sub-committees for the 15-day Congressional Notification period. The OUSD(P) proponent for Section 1206 leads all interaction with Congress and ensures that the Secretary’s goals and objectives are properly explained to members. Following the expiration of the notification period, OUSD(P) directs DSCA to begin case implementation.

C15.1.3.3. Office of the Under Secretary of Defense, Comptroller (OUSD(C)). OUSD(C) is responsible for establishing and updating guidance on the use of DoD funds. OUSD(C) reviews and submits Congressional Notification packages to the Under Secretary of Defense for Legislative Affairs for forwarding to appropriate Congressional committees. OUSD(C) authorizes the release of DoD funds for BPC programs and reports to Congress on the use of funds.

C15.1.3.4. Defense Security Cooperation Agency (DSCA). DSCA administers BPC programs under the direction of the USD(P) and provides guidance to DoD components and SCOs on the administration and execution of BPC program activities. DSCA oversees program-level logistics planning, provides financial management, develops and implements program policies, and otherwise assists Requesting Authorities in achievement of BPC program objectives.

C15.1.3.5. Geographical Combatant Commands (CCMD). Each CCMD is responsible for multi-year planning of BPC activities and strategies for the regions and countries within its theater of operations, documented in the Theater Security Cooperation Plan (TSCP). Each TSCP supports CCMD goals and objectives for regional security and is coordinated with the U.S. Missions’ plans for security assistance. In addition to planning, the CCMD has overall responsibility for prioritizing, coordinating and evaluating the success of security cooperation activities in theater.

C15.1.3.6. Requesting Authority. The Requesting Authority for a BPC case is an organization with responsibility for planning regional or country capacity building activities. Within DoD, the CCMDs often serve as Requesting Authorities. During pre-MOR planning, the Requesting Authority will communicate detailed requirements to the IA and receive IA feedback in order to complete the MOR. The Requesting Authority must then remain actively engaged to ensure the IA has the necessary information for case development, to enable timely obligation of expiring funds, and to participate in transportation and delivery. BPC cases will compete with FMS and other DoD requirements for the IA’s resources, so the Requesting Authority should communicate and justify its highest priorities.

C15.1.3.7. Funding Authority. The Funding Authority is the organization that controls and oversees management of funds for the BPC program. When BPC program funding is provided by a DoD appropriation, one of the Military Departments (as in the case of ASFF, the Iraq Security Forces Fund (ISFF), and the Pakistan Counterinsurgency Fund (PCF)) or OUSD(P) will serve as the Funding Authority. Non-DoD agencies serve as the Funding Authority for appropriations they provide to DSCA.

C15.1.3.8. Implementing Agency (IA). The IA has overall responsibility for case development, execution, and closure. IAs must communicate frequently with the DSCA Country Program Director (CPD), the DSCA Country Financial Director (CFD), the Requesting Authority, the Procuring Agency, the U.S. Transportation Command (USTRANSCOM) and the SCO to facilitate information sharing of case plans, status, and changes. During the planning phase, the IA collaborates closely with the Requesting Authority and verifies that the MOR is complete before initiating a pseudo LOA document in DSAMS. During case development, the IA communicates with the Requesting Authority and with the SCO to ensure case-specific requirements are captured and prepares the Case Advisory. The IA must fully understand the nature of the appropriated funds being used in order to ensure its activities meet obligation and expiration/cancellation timelines.

C15.1.3.9. U.S. Transportation Command (USTRANSCOM). Though the IA has overall responsibility for ensuring BPC material is transported and delivered to the SCO, USTRANSCOM manages the DTS which moves materiel from point of origin to the final destination within the Benefitting Country. If materiel is delivered to a central aerial port of debarkation (APOD) in-theater, USTRANSCOM will coordinate with the CCMD to arrange for materiel to be moved to the final destination.

C15.1.3.10. Security Cooperation Organization (SCO). The SCO within each Benefitting Country supports the Requesting Authority through each phase of the BPC case, and interacts closely with Benefitting Country security forces. The SCO is entrusted with communicating BPC program objectives and requirements to Benefitting Country representatives and soliciting their partnership. The SCO is also familiar with the in-country security and logistics environment. Table C15.T1. provides a summary listing of SCO responsibilities unique to BPC programs.

Table C15.T1. SCO Responsibilities for BPC Programs

C15.1.4. BPC Programs. Following is a brief description of some of the more common BPC Programs. See Table C15.T2. for a complete listing of available BPC programs with their corresponding codes and authorities.

C15.1.4.1. Afghanistan Security Forces Fund (ASFF). The ASFF is authorized to be used to train, equip and provide related assistance to Afghanistan National Security Forces (ANSF), including the provision of equipment, supplies, services, facility repair, renovation and construction. The OUSD(C) coordinates the ASFF Financial and Activity Plan (FAP) for approval by the Afghanistan Resources Oversight Council (AROC), comprised of Principal Deputy Under Secretaries for OUSD(P), OUSD Acquisition, Technology, and Logistics (AT&L), and OUSD(C), as well as senior representatives from the Joint Staff, U.S. Central Command, and the Office of the Assistant Secretary of the Army (Financial Management and Comptroller). The OUSD(C) then coordinates the ASFF FAP with DoS and submits the program Congressional Notification by Budget/Sub-budget Activity Groups (BAG/SAG). Only a portion of ASFF is used to fund BPC cases. The Army provides the fund allotments for these to DSCA. Requirements for ASFF cases are received from the Combined Security Transition Command - Afghanistan (CSTC-A).

C15.1.4.2. Coalition Readiness Support Program (CRSP). CRSP is an authority in the Coalition Support Funds legislation, which is part of the annual DoD Appropriations Act, and is funded with Defense-Wide Operation and Maintenance (DW O&M) appropriations. CRSP may be used to provide specialized training, procure supplies and specialized equipment, and loan equipment on a non-reimbursable basis to coalition forces supporting U.S. military operations in Afghanistan and Iraq. CCMDs may submit requests for CRSP funds to OUSD(P) for prioritization, coordination, and submittal to the Secretary of Defense for approval. Funds made available for CRSP prior to FY12 are available until expended.

C15.1.4.3. DoD Counternarcotics (CN) Program. DoD has authority under provisions in various National Defense Authorization Acts (NDAAs) to transfer defense articles and services for building counternarcotics capacity and counternarcotics support to Benefitting Countries. DSCA executes only a small portion of the DoD CN program: Sections 1004 and 1033 of NDAA 1991 and 1998, respectively and as amended, are generally the authorities under which CN programs are executed by DSCA. The Office of the Assistant Secretary of Defense for Special Operations/Low Intensity Conflict (SO/LIC) is responsible for CN policy and funding and may submit MORs to DSCA detailing equipment, training, facilities, and communications requirements to support security, law enforcement, drug detection, and reconnaissance within a Benefitting Country. OUSD(C) transfers DoD CN funds to DFAS-IN from the DoD Counter Drug Transfer Account to execute these BPC cases.

C15.1.4.4. Global Train and Equip (Section 1206). The Section 1206 Program is funded with DW O&M appropriations. The Secretary of Defense, with the concurrence of the Secretary of State, has authority under Section 1206 to provide equipment, supplies, and training to build the capacity of foreign military forces to conduct counterterrorism operations or to participate in or support military and stability operations in which U.S. forces participate. Program funds can also be used to build the capacity of maritime security forces to conduct counterterrorism operations. The CCMDs, OSD, the Joint Staff, and/or DoS may identify Section 1206 requirements. The CCMD submits requirements in the form of proposals to OSD(SO/LIC). DSCA oversees a feasibility review of the proposals (which serve as MORs) to validate equipment lists, training requirements, and costs. These documents are simultaneously reviewed and prioritized by OUSD(P), the Joint Staff, and DoS, before approval by the Secretary of Defense, and then are submitted for Congressional Notification. The IA must develop Section 1206 cases as quickly as possible so that they are ready to offer as soon as case funding is available and to maximize the time remaining for contracting actions. The CCMDs should remain actively engaged and responsive to support this effort. DSCA (Programs Directorate) centrally manages the Section 1206 programs and tracks them from inception to case closure, including the timely, assured delivery of defense articles and services. See Section C15.3.4.3. for Section 1206 Cross Fiscal Year Authority. See DoD Instruction 5111.19, Section 1206 Global Train-and-Equip Authority, for general Section 1206 Program guidelines.

C15.1.4.5. Iraq Security Forces Fund (ISFF). The ISFF provides support to all Iraqi Security Forces (ISF), including military, police forces, special task forces, and border security. It funds construction, force protection, training, equipping, life support, and sustainment of ISF. Authority for the use of ISFF is incrementally drawn down following the withdrawal of U.S. forces from Iraq.

C15.1.4.6. Pakistan Counterinsurgency Fund/Counterinsurgency Capability Fund (PCF/PCCF). PCF/PCCF provides assistance to build and maintain the counterinsurgency capability of the Pakistan Security Forces, including military forces and the Pakistan Frontier Corps, and is authority to provide program management, equipment, supplies, services, training, facility and infrastructure repair, renovation, and construction. PCF is a DoD authority and appropriation, while PCCF is a DoS authority and appropriation. The OUSD(C) coordinates the PCF FAP with DoS and then submits the program-wide Congressional Notification by BAG/SAG. PCF is appropriated entirely to the Army as the DoD Executive Agent; only a portion of PCF is used to fund BPC cases via DSCA. The Army provides the fund allotments for these to DSCA. The Office of the Defense Representative-Pakistan (ODR-P) serves as the Requesting Authority and generates requirements for PCF/PCCF, while the Army serves as the Funding Authority for those funds provided to DoD.

C15.1.4.7. Peacekeeping Operations (PKO), FAA Section 551. Funds for PKO are appropriated to DoS. The PKO legislation authorizes the provision of assistance to partner nations and international organizations on such terms and conditions as the President may determine, including for use in regional security peacekeeping operations and other programs carried out in furtherance of U.S. national security interests. Such assistance may include reimbursement to DoD for expenses incurred pursuant to Section 7 of the United Nations (UN) Participation Act of 1945, but may not exceed $5,000,000 in any fiscal year unless a greater amount is specifically authorized by the President. Each year, DoS uses FAA, Section 632(b) MOAs to transfer some of the PKO funding to DSCA in support of specific requirements. The U.S. Embassy within a Benefitting Country or the CCMD defines PKO requirements and prepares the MOR for those requirements that will be executed by DSCA as a PKO BPC program.

C15.1.4.8. Global Peacekeeping Operations Initiative (GPOI). The GPOI Program is funded with PKO funds that have been specifically allocated by DoS to support UN and regional peace support operations (PSO) that establish and strengthen partner nations’ institutional infrastructure to conduct PSO training, train partner nation peacekeepers, and build capacity to address critical shortages in UN peacekeeping operations. DoS transfers a portion of the GPOI funds to DSCA under FAA, Section 632(b) MOAs. OSD(SO/LIC) approves GPOI MORs prior to case development. DSCA (Programs Directorate) centrally manages GPOI program and tracks cases from inception to closure, including the timely, assured delivery of defense articles and services. The CCMDs are the lead implementers of GPOI activities, in collaboration with the IA and DoS.