Rajnath Singh (R) with his US counterpart, Lloyd Austin. (File photo)
New Delhi: The United States’ defence department (US Department of Defense or US DoD) and India’s defence ministry (Ministry of Defence or MoD) signed a non-binding Security of Supply Arrangement (SOSA) on Thursday. Dr Vic Ramdass represented the US, while Samir Kumar Sinha signed for India. Ramdass is the the US’s principal deputy assistant secretary of defence for industrial base policy, while Sinha is the additional secretary and director general for acquisition in India’s defence ministry.
This development comes when the defence minister, Rajnath Singh, is on a four-day strategic visit to the United States.
The SOSA agreement allows both nations to prioritize support for each other’s defence-related goods and services. It aims to help both countries access necessary industrial resources from one another, particularly when facing unexpected supply-chain issues that could affect national security.
Ramdass described the SOSA as a significant milestone in US-India defence relations, emphasizing its importance for strengthening the Defence Technology and Trade Initiative (DTTI) between the two nations. He also mentioned plans for the next DTTI meeting, which will focus on deepening cooperation between their defence industries.
Under this arrangement, SOSA, both countries commit to support each other’s priority requests for critical defence resources. The US will provide assurances through its Defense Priorities and Allocations System (DPAS), while India will establish a voluntary code of conduct for its industrial base to prioritize US requests.
SOSAs are crucial for the US defence department to enhance interoperability with defence trade partners, especially given the expanding global supply chain. These arrangements facilitate communication, streamline processes, and help address potential supply-chain issues during peacetime, emergencies, and conflicts. They also aid in developing strategies for ensuring redundancy and security in defence supply chains.
India is now the 18th country to have a SOSA with the US. The others include Australia, Canada, Denmark, Estonia, Finland, Israel, Italy, Japan, Latvia, Lithuania, the Netherlands, Norway, Republic of Korea, Singapore, Spain, Sweden, and the United Kingdom.
What is Security of Supply Arrangement or SOSA?
The US defence department (US DoD) has established agreements with various countries to ensure mutual provision of defence-related goods and services. These bilateral Security of Supply Arrangements (or SOSAs) enable the US DoD to request priority delivery for its contracts, subcontracts, or orders from companies in partner nations. Likewise, these countries can request priority delivery for their contracts and orders with American firms.
SOSAs are based on broader agreement called “Declarations of Principles for Enhanced Cooperation in Matters of Defence Equipment and Industry”, signed with select nations. These arrangements implement the US’s “Meeting National Defence Requirements” section of these documents, acknowledging potential interdependence in supplies crucial for national security and calling for exploration of supply-assurance solutions.
The reciprocal priority systems encourage partner nations to source defence goods from each other, fostering interoperability and ensuring timely delivery during peacetime, emergencies, and armed conflicts.
To provide priority support, the US DoD utilizes – what is known as – the “Defense Priorities and Allocations System” (DPAS).
SOSA partner nations have established, or are in the process of establishing, voluntary government-industry codes of conduct. Under these codes, defence or related firms agree to make every reasonable effort to provide priority support. They may use their participation in these codes as a testament to their reliability in supplying defence goods and services to the US DoD and its contractors.
Details of the SOSAs, codes of conduct, and lists of participating foreign firms are made available to them for reference.
It is worth noting that while Canada doesn’t have a formal SOSA with the US DoD, the US commerce department has a separate agreement with Canadian Public Works and Government Services for mutual priority support. This allows the US DoD programme managers, contractors, and subcontractors to request priority assistance for US defence purchases in Canada through the US defence department.
