Navy Reforms International Programs Office.

• Author: LeBoeuf, Gibson
• Position: Analysis

The Department of the Navy's International Programs Office has adopted a host of new business practices designed to enhance U.S. military interoperability with foreign allies, bolster the efficiency of the Foreign Military Sales program and improve service to international customers.

Navy IPO deals in policy matters such as international research agreements and the application of export controls to limit the spread of sensitive technologies. But it's been in Foreign Military Sales and FMS program management where recent business reengineering efforts have resulted in significant benefits to the U.S. and allied defense communities.

International programs are important for military, political and economic reasons. First, international programs contribute to cooperation between militaries, enhancing interoperability between U.S. forces and allies. Second, an active set of international programs supports political objectives by strengthening ties among allies. Third, international cooperation in the defense sector leads to reduced unit cost in the acquisition of ships, aircraft, communications gear, support or training equipment.

International programs, it should be noted, are mandated by Defense Department acquisition regulations, known as the DOD 5000 series. Regulations explain that all Defense Department systems, where applicable, need to support joint and combined operations with allied nations.

Early in the life of a program, an analysis of alternatives needs to include a review of what technologies allies can offer. The acquisition strategy must consider foreign participation, whether that means turning to similar projects by allies or NATO organizations, pursuing cooperative development and production, using commercial options or making direct sales of U.S. equipment.

Since 1997, Navy IPO has relied on in-house teams known as JPTs (integrated product teams) to study and realign business practices. These IPTs made the following recommendations: expedite contracts close-out, cut out unnecessary steps in the processing of LOAs (Letters of Offer and Acceptance, the primary contractual vehicle between governments) and find ways to make the foreign customer's money go farther.

In September 1998, the secretary of the Navy chartered the Navy IPO as a "Reinvention Laboratory" that would focus on improving workforce training, identifying new ideas for cutting red tape and improving customer service.

In partnership with industry professionals, three separate teams worked to identify systemic problems with Foreign Military Sales. They submitted a set of more than 150 specific...