PEO Ship Transfer Program - PMS 336

Naval vessel transfers support U.S. foreign policy objectives by satisfying defense requirements of allied and friendly countries, fostering interoperability and strengthening mutual defense arrangements with those countries. The transfer of USN vessels significantly improves the capabilities of friendly foreign navies, who make conservative investments (compared to the cost of new construction) to acquire and modify these vessels for their operations and encourages the acquisition of U.S. equipment and support services throughout the life cycle of the vessels.

Transfers of naval vessels are coordinated by PMS 336 and are accomplished only after satisfying the Congressional authorization and notification requirements of Section 7307 of Title 10 U.S.C. Once the decision to transfer vessels has been made, the CNO extends a formal offer to the designated foreign recipient.

FMS Case Funds (provided by the foreign customer) are utilized to execute the transfer, including the cost of personnel, operations, travel, per diem, overhaul, reactivation, modernization, repairs, upgrades, logistics support, software modification and equipment modification. FMS Case Funds are also used to pay for the cost of foreign personnel training including formal schools training, shipboard indoctrination training, on-the-job training (OJT), underway training, and industrial training.

Transfers are accomplished either by the “Hot Ship” method wherein the foreign recipient takes custody of the ship coincident with decommissioning. "Hot Ship" transfers are mutually beneficial as the costs of inactivation by the U.S. Navy and reactivation by the foreign recipient are avoided. "Hot ship" transfers also provide a unique opportunity for on-the-job training of the foreign crew by the USN crew prior to the transfer date. When a "hot ship" transfer is not possible, vessels are inactivated by their immediate operational commanders, decommissioned and maintained in the US Inactive Fleet. Subsequent transfer will be accomplished via the “Cold Ship” method. Coincident with the transfer, the foreign recipient may purchase follow-on logistics and technical support.

Whenever possible, transfers will be effected on a "hot ship" basis, wherein the vessel remains an active operational asset and is commissioned into the foreign navy upon decommissioning from the U.S. Navy.

PMS 336 responsiblities:

(1) Insures all casualty reports (category C3 and C4) are repaired prior to the “hot ship” transfer date.

(2) Determines the value and condition of vessels to be sold, leased, or otherwise transferred.

(3) Provides technical briefings and hosts required vessel inspections with the foreign recipient.

(4) Prepares a Transfer Management Plan.

(5) Prepares the vessel for transfer in accordance with the requirements of the FMS case.

(6) Conducts equipment configuration audits and supply inventory assessment prior to transfer.

(7) Ensures vessels designated as FMS are not stripped or otherwise degraded except as specifically authorized by the CNO.

(8) Manages the vessel transfer including planning/execution of industrial, logistics, and training evolutions, conducting transfer ceremonies, and sail away.

(9) Ensures all industrial work is performed in the United States, to the maximum extent practicable.

(10) Hosts the foreign recipient crew, arranging messing, berthing, and transportation at the turnover site. This entails coordination with the foreign recipient and NETSAFA to make sure the training schedule is accommodated. Provides local guidance for foreign crew access to exchanges, commissaries, medical facilities, and Morale, Welfare and Recreation (MWR) facilities.

(11) Ensures the U.S. Navy crew is adequately housed, messed, and assisted during the transfer process.

(12) Arranges and conducts the transfer ceremony, acting as the CNO's representative.

(13) Provide necessary security for vessels prior to transfer to the foreign recipient.

(14) Coordinates with other SYSCOMS to provide complete sanitization guidance for classified equipment including threat libraries and related technical manuals being transferred to the foreign recipient.

(15) Keeps USN inventory managers apprised of disposition of equipment, ammunition, small arms either removed from or transferred with the vessel.

(16) Coordinates foreign crew training with NETSAFA.

(17) Provides/coordinates logistic, communication, and administrative support including post-transfer and transit to customer country.

(18) Determines and documents the final configuration of the vessel to ensure future logistic support of the vessel.

(19) Keeps accurate financial accounting of all costs associated with transfer.

(20) Conducts and coordinates periodic inspections of leased naval vessels.

(21) Conducts Supportability Studies to recommend life cycle support for vessels and equipment/systems.

This is an Official U.S. Navy Website

Last Updated: 29-Sep-2004

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Combatants Office

Amphibious & Auxiliary Sealift Office

Fleet Support Office

PEO Ship Transfer Program - PMS 336

This is an Official U.S. Navy Website