Excess Defense Articles from DRMS Opportunities in Security Assistance

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Excess Defense Articles from DRMSOpportunities
in Security Assistance
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Excess Defense Articles DRMS Mission

• Excess Defense Articles
• Defense articles owned by the US Government,
  which are in excess of the Approved Force
  Acquisition Objective and Approved Force
  Retention Stock of all DoD Components at the time
  such articles are dropped from inventory by the
  supplying agency. (Section 644(g), Foreign
  Assistance Act)
• DRMS Mission
• Dispose of excess property for all United States
  military services.

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EDA OpportunitiesWhy EDA for FMS?

• When resources are limited
• When supporting older military systems no longer
  in the US supply system

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EDA Rules

• As is / where is
• Title transfers at source (DTC 4)
• Customer pays for transportation
• Price based on condition of property
• 5 to 50 of acquisition cost
• May be negotiable
• No construction equipment
• Tractors, scrapers, graders, bulldozers, dump
  trucks, generators, compressors
• Some items limited
• Ambulances, fire fighting equipment

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EDA Sources

• Military Services
• Army, Navy, Air Force, Marines
• Defense Reutilization and Marketing Service
• Worldwide DRMOs
• Recycling Control Points

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DRMS Mission

• Dispose of EDA for all US Military Services
• Reutilization, Transfer and Donation
• Includes Foreign Military Sales
• Commercial Sales
• FMS / FMF in DRMS
• DRMS writes and manages its own FMS cases
• Unique in DLA

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Property Disposal Cycle

• Day 1 - 14 Property is reserved for DoD
  Reutilization (including Foreign Military Sales)
• Day 15 - 35 Property is reserved for Transfer
  to other Federal agencies and Donation to states
  local governments
• After Day 35 Property is on Commercial Sale to
  public

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TWO LOA TYPES

• Defined Order
• Major end items (SME)
• Country finds item requests LOA
• DRMS freezes item and prepares LOA
• DRMO fills and ships
• Blanket Order
• Minor items (non-SME)
• Country requests LOA
• DRMS prepares LOA
• Country finds and requisitions items via web
• DRMO fills and ships

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FMS Pricing

• Grant eligible countries pay only for Packing,
  Crating, and Handling
• PCH 3.5 of current estimated value
• Sales countries pay the current estimated value
  of the item plus PCH
• All countries pay standard 2.5 FMS admin charge
• All countries pay for transportation via their
  freight forwarder

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Pricing Examples

• TRUCK CARGO 2320011236827 1 EA
  15,751.00 H7

EDA GRANT Acquisition Value 15,751 EDA
Grant Value 0.00 PCH (3.5 of
Present Value) 55.13 Plus 2.5 Admin
Charge (to DSCA) 1.38 TOTAL
56.51 EDA SALE Acquisition Value
15,751 Present Value 10 (Condition H7)
1,575.10 PCH (3.5 of Present Value)
55.13 Plus 2.5 Admin Charge (to DSCA)
40.76 TOTAL 1,670.99
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DRMS offers . . .

• All types of property in all condition codes
• Pricing based on condition
• Worldwide DRMO locations
• Recycling Control Points
• Depot quality property
• Direct shipping to freight forwarder

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DRMS offers . . .

• Parts for older systems
• Parts no longer in military supply system
• Immediate availability
• No procurement lead times
• Level playing field with US units
• First come, first served

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DRMS offers . . .

• Property searches
• Web-based
• Real time
• Worldwide or local
• One-time or automated recurring
• Complete item description
• Pictures, on web or via email

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DRMS offers . . .

• On-line requisitions
• Blanket order cases
• Web based
• Direct to DRMOs
• Property inspection
• Visit DRMOs

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DRMS recommends . . .

• Use DRMS as primary source of supply
• Major end items
• Use DRMS as parallel source of supply
• Blanket order cases for parts components
• DRMS LOA parallel to cases with services
• Use DRMS web site for searches
• One-time or automated recurring
• Inspect
• Defined cases for major end items
• Use FLOs or other in-country personnel

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Summary

• DRMS gets all types of EDA from US military
• DRMS makes FMS as easy as possible
• DRMS property is available quickly
• DRMS can meet unique customer needs
• DRMS is a GREAT source of supply for FMS

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Points of Contact

• Franz Schirk
• EUCOM / CENTCOM
• [phone]
• Franz.Schirk_at_dla.mil
• Victoria Osborne
• SOUTHCOM / PACOM
• [phone]
• Victoria.Osborne_at_dla.mil