Acquisition and Cross-Servicing Agreements

KEY REFERENCES

KEY REFERENCES

  • 10 U.S.C. §§ 2341-2350
  • DoD Directive 2010.9, 28 April 2003
  • CJCSI 2120.01, 27 April 2004
  • DoD Financial Management Regulation, Volume 11A, Chapter 8, International Acquisition and Cross-Servicing Agreements, December 2006

    OVERVIEW

    ACSAs are bilateral agreements for the reimbursable mutual exchange of logistics support, supplies, and services (LSSS). (ACSAs are sometimes referred to as MLSAs — Mutual Logistics Support Agreements). DoD’s authority to acquire logistic support without resort to commercial contracting procedures and to transfer support outside of the Arms Export Control Act (AECA). Under the statutes, after consulting with the State Department, DoD (i.e. the affected Combatant Commander) may enter into agreements with NATO countries, NATO subsidiary bodies, other eligible countries, the UN, and international regional organizations of which the U.S. is a member for the reciprocal provision of LSSS.

    LSSS DEFINED

    LSSS definition 10 U.S.C. §2350 – The statute lists: food, billeting, transportation, POL, clothing, communication services, medical services, ammunition, base ops support (including incidental construction), storage services, use of facilities, training services, spare parts and components, repair and maintenance services, , calibration services, and port services. Prohibited items are those designated as significant military equipment on the U.S. Munitions List promulgated under the AECA.

    REIMBURSEMENT AND PRICING

    Acquisitions and transfers are on a cash reimbursement or replacement-in-kind or exchange of equal value basis. Pricing is based on reciprocal pricing principles (i.e. parties charge each other what we charge users within our own organizations).

    TWO DIFFERENT ACSA AUTHORITIES

    (1) Cross-servicing agreements – 10 U.S.C. §2342 (full ACSA authority) as described above. Use of this authority always requires, and is governed by, a formal, written agreement (i.e. an Acquisition and Cross Servicing Agreement).

    (2) Acquisition Only Authority – 10 U.S.C. §2341. This is a limited authority allowing DoD to acquire LSSS for our deployed forces use from that host country if it has a defense alliance with the U.S., allows stationing of U.S. Forces, repositioning of U.S. materiel, or allows U.S. military exercises or operations in the country. Use of acquisition-only authority does not require the existence of a cross-servicing agreement or an implementing arrangement as a prerequisite. It does require either a formal, written agreement (i.e. an Acquisition Only Agreement) or else use of DoD contracting authority (discussed below).

    ACSA TRANSACTION PROCESS

    There are two aspects to conducting an ACSA transaction. The first is ensuring the statutory limits are not exceeded. The second is actually conducting the transaction.

    ACSA PROCESS / PART 1 / STATUTORY LIMITS

    For transactions under either §2341 (acquisition only) or §2342 (cross-servicing) country-specific, annual dollar caps limit the amount of transactions that can occur using this authority. (This cap does not apply during armed hostilities, and is waived during contingency or non-combat operations). DoD FMR, Volume 11A, Chapter 8, Paragraph 080205 describes the process for accounting for transactions, to ensure the cap is not exceeded // 080205. Requests for Authorization to Use Limitations. The limitations are mangaged by the Joint Staff. Each organization that intends to enter into reimbursable purchases or sales under the authority of Subchapter I of Chapter 138, Title 10, U.S.C., shall request authorization. Requests shall be accompanied by a justification, including a prioritization of requirements. The requests shall be submitted to the cognizant Combatant Command through the requesting organization’s appropriate Component command. The authorizations do not increase the amount of obligational or apportioned anticipated reimbursable authority, but rather allow use of existing budget authority to enter into purchases or sales under the authority of Subchapter I of Chapter 138, Title 10, U.S.C. Requests shall identify the categories of support as identified in figure 8-1.

    ACSA PROCESS / PART 2 / THE TRANSACTION

    Per CJCSI 2120.01, Enclosure A, Paragraph 3.d.: “Acquisition-only authority may be implemented either through contracts using the authority of 10 USC Chapter 137 (Federal Acquisition Regulation (FAR) contracting) in conjunction with 10 USC §2341) and §2343), or through international agreements (acquisition-only agreements) that rely solely on the authority of 10 USC §2341) and §2343). The existence of a cross-servicing agreement (under §2342) or implementing arrangement (IA) is not required.”

    Cross-servicing authority (under §2342) always involves a formal international agreement; use of that authority is IAW the agreement. A typical ACSA transaction involves submitting an order, using a specified form, to an ACSA Order Authority identified in either an Annex to or an Implementing Agreement under the ACSA. The requesting Order Authority and his counterpart from the other nation both approve the order; the requested support is provided; reimbursement is accomplished (by cash, replacement-in-kind, or equal value exchange) and documented; and the transaction is reported.

    CONTENT DERIVED IN PART FROM THE 2D OPERATIONAL CONTRACTING DESKBOOK, US ARMY JAG SCHOOL