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Security Cooperation
Navy IPO’s Full Spectrum Capability Approach

Admiral Antonio Image

Snapshot of the FMS System Image
FMS Process Snapshot Image

Navy IPO is somewhat unique as an Implementing Agency for Foreign Military Sales (FMS), the most well-known SC program, because we support partner navies, air forces and armies. At Navy IPO, we approach arms sales differently than other countries; we have a total package or full-spectrum capability approach. This means that as we develop a Letter of Offer and Acceptance (LOA) for transfer of a product or service to a foreign customer, no aspect of a system acquisition is neglected. We want to ensure our partners have the total capability, the total readiness and infrastructure to complete the mission, not just transfer the weapon system. Approximately 96% of all the spare parts we buy for our foreign partners are the same as the parts the U.S. buys. That shows you the great degree of commonality and interoperability across the supply chain that we foster in our SC programs. The dollar value of DoN FMS activity has essentially quadrupled since 2014 where the average was $4.5 billion per year; in FY18 Navy IPO implemented approximately 762 cases worth $22.3 billion. To date, the total DoN FMS case value implemented in FY19 is $118.5 billion across 3,894 new, modified, or amended FMS cases. These numbers highlight the quality of U.S. defense products and the desire our partners have to continue developing and sustaining relationships with the U.S.


FMS Care Flow in the Navy Image
Snapshot of FY 17 FMS Image

Navy IPO was instrumental in leading one of the most sought after and largest SC deals in the world – as well as ensuring aligned national interests and capability in one of the world's most critical and volatile regions – advancing our strategic national security interests.  The Saudi Naval Expansion Program (SNEP I) began in the 1970s when the USN provided thirteenFor over a decade, the Navy and U.S. industry had expected the Royal Saudi Naval Force to modernize their 1970-vintage Navy. However, they did not and Navy IPO did not give up. Years of diligent preparation met a fleeting moment in time when the two tectonic plates of Heads of State recognized a mutually aligned and beneficial opportunity that resulted in a $110 billion Saudi Arms deal. SNEP II is now a reality – with helicopters, ships and weapons all now in an execution phase.

Additionally, the historic deal represented an expansion of the security assistance relationship between the U.S. and Saudi. Of the capabilities, the USN had one LOA for SNEP - four (4) Multi-Mission Surface Combatant (MMSC) ships with full total package for the Royal Saudi Naval Forces (RSNF) and potential future defense capabilities included in a Memorandum of Intent (MOI) to support the Royal Saudi Naval Forces (RSNF). Saudi’s Ministry of Defense signed the $6.028 billion LOA for the MMSC ships on May 25, 2017. The LOA included associated weapons and equipment, spares, training, engineering, technical assistance, and infrastructure. The weapons systems included MK 4I Vertical Launch System, NATO Evolved SEASPARROW Block I missiles, MK15 Close-In Weapon System, Rolling Airframe Missile (RAM) Block II, Harpoon Block II missiles, 20mm gun weapon system, 57mm gun weapon system, and .50 caliber guns.

Navy IPO was also instrumental in the Norway P-8A deal. Norway signed the LOA to procure five (5) aircraft on March 31, 2017. Norway is a critical partner in the high northern seas of Europe, with deep experience operating in these waters and a low probability of their presence irritating neighboring nations. The US, UK and Norway also signed a Statement of Intent (SOI) on June 29, 2017 for P-8A Maritime Patrol Aircraft Partnership. The SOI builds upon each country’s decision to procure P-8A Aircraft and provides a non-binding framework to enable cooperation focused on strengthening deterrence and enhancing stability in Europe and the North Atlantic.

Other Navy IPO FMS efforts include the Kuwait F/A-18. On April 30, 2015 Kuwait submitted an LOR for LOA for twenty-eight (28) F/A18 E/F Super Hornet with an option for twelve (12) additional jets, facilities and support. The Kuwait Minister of Defense signed and accepted the U.S. Government LOA on February 8, 2018 at a total case value of $5.2 billion; aircraft deliveries are scheduled to begin in FY2021.