The Defense Security Cooperation Agency (DSCA) is investigating the potential use of multi-national letters of offer and acceptance to help spread the cost of development and acquisition of expensive weapon systems across a larger number of countries.
DSCA Deputy Director Richard Genaille said on Sept. 4 current policy is one letter of acceptance per country. But Genaille said if the Defense Department could somehow come up with a multi-national letter of acceptance, it would make programs more affordable than procuring on a simple, bi-lateral basis.
Genaille said there are a number of potential partners, particularly in Africa, South America and parts of Asia, that have “very, very limited” defense budgets. With modern weapon systems becoming more and more expensive, Genaille said it’s only smart to think of additional ways to open up additional markets.
“What we ought to be looking at is (which) capabilities are right for them,” Genaille said at the 2013 ComDef conference in Washington.
Genaille’s statement came in the context of a question about DSCA and Lockheed Martin’s [LMT] F-35 program, the most expensive weapons program in DoD history. Genaille said while the F-35 is the “high end” of the affordability spectrum and not practical for many nations who could benefit from multi-lateral procurement, he said DSCA should pursue all opportunities.
“It may not be F-35…for a variety of reasons,” Genaille said. “How can we work so that we can collectively develop and acquire the types of capabilities that groups of countries in those regions of the world need.”