High-Endurance Cutters (HECs) and the upcoming
transfer of 110-foot Island-class patrol boats.
FMS involves the sale of new platforms, such as the
CN235-300M maritime patrol aircraft, using existing
contracts and, where possible, grouped with U.S. government purchases to lower total acquisition costs for
all parties. EDA involves the disposition of assets that
are decommissioned and declared excess by the Coast
Guard and provided on an as-is basis. EDAs are transferred under the U.S. Department of Defense’s EDA
program, which offers U.S. assets declared excess to
foreign partners in support of U.S. national security
and foreign policy objectives.
The Coast Guard’s Office of International Acquisition
manages transfers of excess decommissioned assets
under the EDA program and acquires new assets for foreign governments through the FMS program.
Reinert said one of the main benefits of both pro-
grams is building partnerships with allied countries,
with a goal of enhancing maritime security and capa-
bilities in other regions of the world. This was no more
evident than with Jarvis, the most recent HEC transfer
for the EDA program. Last May, the Bangladesh Navy
took over the ship and in November the cutter, now
BNS Somudro Joy, was used to distribute emergency aid
to the victims of Typhoon Haiyan in the Philippines.
“It was very exciting for us to see that,” he said.
The EDA program also has been able to save $64
million in disposal costs through the disposition of
older, decommissioned assets. These are separate from
the FMS program.
James Carafano, a homeland security expert for the
Washington-based Heritage Foundation, said anything
keeping the cutter production line open and cranking
out ships makes sense, noting that working with allied
countries provides added benefits.
“More commonality of systems is a good thing, particularly in maritime security and law enforcement
where there are just not enough assets available to do
the global maritime constabulary mission,” he said.
The Coast Guard FMS office, located in Washington,
employs 20 people. That number has nearly doubled
since Reinert took over. He said he has put in requests
for a larger staff to keep pace with the workload.
The FMS process begins when a Letter of Request
from an authorized foreign government representative
is received by the respective U.S. embassy, which
reviews the letter and makes a decision to endorse or
reject it on a case-by-case basis.
Once the Letter of Request has been endorsed, the
Coast Guard can begin to work with the foreign government to finalize requirements and develop the FMS
acquisition project. After performing market research
within the context of the purchaser’s requirements, the
Coast Guard Office of International Acquisition develops an estimated price and delivery schedule for the
asset and creates a formal Letter of Offer and
Acceptance (LOA), the Coast Guard said.
The LOA serves to organize the terms of the sale upon
final approval from the Department of Defense. When
preparing a LOA, the Coast Guard takes a total package
approach, which ensures that all sides of operational
requirements are addressed, from initial acquisition,
training and spare parts to long-term supportability and
logistics. Sales of supply services like training, maintenance and spare parts comprise approximately 10 percent
of annual sales under the Coast Guard’s FMS program.
Upon receiving and approving the LOA, the Defense
Department presents it to the foreign government, which
has a certain amount of time to accept or reject the terms
and make the necessary monetary deposits with the
department. It then transfers the funding authority to the
Coast Guard, where the project is managed like any
domestic acquisition, including solicitation, evaluation,
award and acceptance. Wherever possible, these orders
are combined with the Coast Guard’s own orders in an
attempt to drive down unit costs for all parties, according
to the Office of International Acquisition Programs. ■
WWW.SEAPOWERMAGAZINE.ORG SEAPOWER / MARCH 2014
The Bangladesh Navy frigate Somudro Joy arrives at Joint
Base Pearl Harbor-Hickam, Hawaii, Nov. 7 for a scheduled
port visit. From 1972 to 2012, the ship was known as the
U.S. Coast Guard High-Endurance Cutter Jarvis. It was
transferred to the Bangladesh Navy through the Excess
Defense Articles program in May.