NAVAL AIR SYSTEMS COMMAND, PATUXENT RIVER, Md. — With his smooth bald pate, Michael Dougherty could be mistaken for Superman’s nemesis “Lex” Luthor. But Dougherty, who works as director of the Naval Air Systems Command’s (NAVAIR) International Programs Department (AIR 1.4), is no comic book archenemy. Instead, he’s an ally to NAVAIR’s Foreign Military Sales (FMS) program teams and the communications conduit between NAVAIR and the U.S. Navy’s International Programs Office (NIPO).

Dougherty recently attended the Defense Memorandum of Understanding Attachés Group Orientation, a biannual FMS gathering for international customers interested in doing business with the United States. The event held March 19-20 in Washington, D.C., was a platform for the director to brief current and prospective foreign customers and educate them about doing business with NAVAIR.

Closer to home, Dougherty enlightened the local community about FMS. From how cultural differences can impact the art of the deal to the Navy's biggest FMS rivals, he discussed his department's role in shaping NAVAIR’s international programs.

Q: Please share the mission of your office and how it supports NAVAIR.

A. The International Programs Department is the NAVAIR Systems Command Security Cooperation Office. We lead NAVAIR’s  International Programs community by supporting program executive offices, the Program Management (AIR 1.0) organization and PMAs (Program Management, Air) in the execution of international programs, including foreign military sales and cooperative programs involving 43 product areas with 78 countries. Specifically, we help shape the future of NAVAIR’s international programs through program advocacy and oversight while coordinating strategic planning efforts. We also optimize the effectiveness of NAVAIR’s international programs personnel by providing them with policy interpretation, process adaptation, training consolidation, workforce augmentation and administrative funds budgeting/allocation. Lastly, we make sure the work gets done by monitoring programs from inception through completion and serve as the focal point for Navy IPO communications.

Q: How is your department’s role different from FMS in each NAVAIR PMA?

A: We serve as a voice for the PMA teams, taking common program and systemic issues up the chain of command for resolution. AIR 1.4 acts as a buffer for incoming requirements, filtering them and responding as a single voice for our collective efforts. This minimizes the churn at the PMA level and helps them focus on their missions. We provide program office FMS personnel with the training, administrative funding, processes and policies they need to meet the requirements of the international customers.

Q: What are some of the biggest challenges facing the Navy/NAVAIR when it comes to FMS?

A: Complexity. “It depends” is a common phrase in Program Management. For international program management, the implication of “it depends” increases exponentially. We deal with both the Defense and State departments, as all international programs are elements of foreign policy. We manage foreign disclosure and technology transfer requirements to ensure viability of our national interests. We interface with many different national cultures and the specific cultures of individual military services/bureaucracies.

Q: Describe the Navy’s international competition landscape?

A:  Over the past several years, competitions have become the norm in international aircraft sales. For example, F/A-18 has faced competition from Grippen (Sweden), MiG 35 (Russia), Typhoon (Europe), and Rafale (France). H-60, likewise, has been in competitions with the Panther (Europe), Wildcat (UK), and NFH-90 (Europe). Competition adds layers of complexity far beyond a standard FMS case. Competition also can add additional requirements and some countries add demands for transfer of manufacturing technologies and co-production arrangements.

Q: Beyond aircraft, what else is the Navy/NAVAIR selling to foreign countries?

A:  We provide customers the total package, which includes the aircraft, associated systems and weapons, and a full range of logistic support, including training, training systems, support equipment, publications, spares, etc. The commitment we make to support our customers throughout the life cycle of their aircraft is a primary strength of our international efforts.

Q: How did the Navy get into international sales and how does it work? Is it as simple as someone asking to buy an aircraft or parts?

A: The Arms Export Control Act, enacted in 1976, directs the U.S. engage in international programs to support national security interests. These interests include military interoperability/force multiplication; political access and influence, and economic benefits of shared development; economies of scale; and a strong industrial base. The FMS process can be initiated by a simple phone call, but there is a very specific process from that point. The call may request a basic briefing or information, which in turn may result in a Letter of Request (LOR) from the country, which begins the formal FMS process. Our program teams then prepare a Letter of Offer and Acceptance (LOA) containing cost, schedule, performance and logistics elements specific to that effort. This preparation includes multiple technology transfer approval processes and may include a notice to Congress. If the country accepts the LOA, the FMS case is implemented and the acquisition process begins.

Q: Can you share some of the countries with which NAVAIR is doing business, as well as some key foreign sales?

A:  Over the past five years, our top international customers include: Australia, Taiwan, Kuwait, Egypt and Japan. Our top FMS systems include: H-60, F/A-18, P-3, Harpoon, and KC-130. Notable sales include F/A-18s to Australia, P-3s to Taiwan and H-60s to Australia and Denmark.

Q: How has the austere fiscal climate impacted your office?

A:  In  several ways: Globally, financial issues have severely reduced the ability of many of our long-term customers to sustain their systems at previous levels. Yet, our overall sales continue to be high because even as countries have narrowed their requirements, they select our systems because we offer the best value. Nationally, economic circumstances have raised the visibility of international sales, particularly within industry, as a way to mitigate domestic cuts. However, international programs are just one element of NAVAIR’s overall mission, and circumstances that affect execution of that overall mission impact international programs.

Q: Do cultural differences affect how you conduct business?

A:  Significantly. Our people constantly balance U. S. laws, policies and practices against the culture of their customers. They have to be very aware of the significant differences between how we conduct business in the U. S. and how it’s done essentially everywhere else in the world. Most importantly, they have to understand the communication subtleties with international personnel, even our closest allies. For example, Americans are unique in that they can get right to business without first establishing personal rapport and relationships. That’s not usually the case with our international partners.

ABOUT MICHAEL DOUGHERTY

Title: Director, Naval Air Systems Command International Programs Department

Born and raised: Philadelphia

Biographical highlights: Graduated in 1973 from the U. S. Naval Academy; served on active duty in the Navy for 29 years as a P-3 naval flight officer, aerospace engineering duty officer, and acquisition professional.

Favorite vacation spot: “New Zealand. Wonderful people, rich and well-blended cultures, and a beautiful country that has something for everyone … from mountains to harbors and everything in-between, affording opportunities ranging from high adventure to complete relaxation. It really is [like J.R.R. Tolkien’s ‘Lord of the Rings’] Middle-earth.”