International competitions

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1. When a partner holds a competition

Foreign governments and international organizations often run competitions for weapon system procurements, which the Security Assistance Management Manual calls international competitions for defense articles and services (SAMM C4.3.1). The partner solicits bids or proposals from defense industries in the international market. Depending on its acquisition process, the solicitation may be a formal request for information, a tender or proposal, an invitation to bid or a similar document stating the review criteria. The partner then evaluates American and non-American proposals against those criteria. Because the American industrial base is large, the American response may include more than one offering. The kinds of early estimate a purchaser can receive are compared in the three kinds of answer to a letter of request.

2. The solicitation as a request

Most foreign solicitations are released to international defense industries rather than to governments (SAMM C4.3.1.1). When one is submitted through appropriate channels, though, it counts as a Letter of Request (LOR). It then starts United States Government (USG) reviews, such as National Disclosure Policy and technology transfer reviews, which decide whether taking part is in the American interest. The response may use Foreign Military Sales (FMS), Direct Commercial Sales, an international cooperative agreement, or a combination of these. The manual adds that FMS should not be left out of the response solely because of how the solicitation was released or conditioned. How the two sales routes compare is covered in Foreign Military Sales or Direct Commercial Sales.

3. Who leads the American response

The Defense Security Cooperation Agency (DSCA) is the Defense Department’s focal point for policy on American participation in international competitions (SAMM C4.3.1.2). The Military Departments and defense contractor teams develop the proposal. The relevant Military Department then presents it as the representative of the USG. A table in the manual, Table C4.T4, sets the lead agency by the number of American responses and the number of services involved. With one response from one service, the Military Department responsible for the system leads, and that one system is stated as the formal American position. With more than one response from a single service, the responsible Military Department still leads. Where more than one service is involved, DSCA leads.

4. Neutrality between American bids

The table sets a strict rule where more than one American response is on offer. "USG personnel may not favor the merits of one U.S. proposal over another" (SAMM C4.3.1.2). Advocacy must be generic, stressing qualities such as being combat proven, interoperable with many nations, technologically superior and supportable worldwide. The same neutral stance covers USG presence in meetings with foreign officials. If government personnel attend one American contractor’s presentation, every effort must be made to attend the briefings on the other American offerings.

Advocacy for a single offering is allowed only once one Military Department or contractor team remains in the competition (SAMM C4.3.1.2). That happens when all the other teams eliminate themselves, or when the partner formally states that their proposals are no longer under consideration.

5. The lead’s job

The Defense Department lead runs the government’s deliberations so that policy decisions affecting the proposals are made as early as possible (SAMM C4.3.1.3). It gathers the views of the key stakeholders. They are the State and Commerce Departments, the Under Secretaries of Defense for Policy and for Acquisition and Sustainment, the Defense Technology Security Administration, DSCA and the Military Departments. The lead makes sure proposals are consistent with internal American decisions, as responsive as possible to the solicitation and on its schedule.

With several American offerings, the lead must handle all of them impartially, so that no offering seems preferred and no policy is interpreted with bias (SAMM C4.3.1.3). It brings the competing teams together to raise issues, solve problems jointly and agree plans. It also holds every entrant to the same standards and coordinates responses with the partner. DSCA’s international operations office provides guidance on international competitions as necessary, and further detail sits on a restricted version of the manual for Common Access Card holders (SAMM C4.3.1.4).

6. Pricing the bid

Implementing agencies (IAs) authorized to prepare Letters of Offer and Acceptance (LOAs) may also prepare Price and Availability (P&A) data for purchasers (SAMM C4.3.1.5). P&A response documents must be prepared in the Defense Security Assistance Management System, which cannot be used for classified P&A. The manual’s Table C5.T8 lists what the data include (SAMM C5.5.4). The first item is the major item or service, its quantity and its estimated cost, adjusted for inflation and including estimated offset costs as the contractor provides them. Where inflation trends for a system are unknown, standard inflation factors from the Under Secretary of Defense (Comptroller) are used.

The data also cover ancillary support equipment needed to operate and maintain the system, integrated logistics support elements such as training and publications, and estimated accessorial charges (SAMM C5.5.4). Each response names the source of the data, such as the last contract award or a stock price, and the estimated availability. It sets out the assumptions used and the key factors affecting the data. One example of an assumption is that the standard component factors were used to estimate the ancillary equipment and logistics support elements needed for the quantity requested. The manual’s examples include an expiring contract, a production line due to phase out, start-up costs if an LOA is not implemented by a set date, and materiel shelf life.

Every P&A response carries a standard statement that the data are not valid for preparing an LOA and may not be adequate for budgetary purposes (SAMM C5.5.4). The statement describes the data as "for planning/review purposes only", and a partner that wants to pursue the purchase must request an LOA. The response must also include the Appendix 6 disclaimer note for non-program of record items.

Key terms

International competition	A procurement in which a partner evaluates American and non-American proposals against its own criteria.
Foreign solicitation	The partner’s request for bids, treated as a letter of request when it arrives through appropriate channels.
Generic advocacy	Support for American proposals as a group, without favoring any one of them.
Defense Department lead	The organization that manages the American response and keeps multiple offerings on equal terms.
Price and Availability (P&A)	Planning data on cost and availability, not valid for preparing an offer.

Every statement above links to the document behind it. The full source list for this piece is on the sources page.

This page describes public United States government programs for general information. It is not legal, regulatory or procurement advice, and it does not address the facts of any particular case.

How Sentfore supports this

Winning a competition is the start of delivery, not the end. Sentfore works at the delivery end of defense programs in difficult environments, providing secure movement, protective security, facilities and life support. Requirements can be sent through the contact page.