CPR ACFT ON APCH HAD NMAC WITH SMT VFR ACFT OUTBOUND ON LOC ON TRAINING FLT.

Narrative

WE WERE CLRED FOR THE ILS 10 APCH INTO LAF. AS WE CROSSED THE FAF INBOUND THE COPLT WAS FLYING THE GAUGES; THE CAPT WAS LOOKING STRAIGHT AHEAD FOR THE RWY WHEN HE SAW A LIGHT IN THE HAZE AND TOLD THE COPLT 'TFC AHEAD.' CAPT WAS NOT YET SURE OF THE DIRECTION THE TFC WAS MOVING. THE COPLT LOOKED UP AND IMMEDIATELY STARTED A DSNDING L TURN. ONLY ABOUT 5 SECONDS HAD PASSED SINCE FIRST SIGHTED BUT THE TFC WAS CLOSING FAST; THE CAPT PULLED THE PWR TO IDLE AND ALSO PUSHED FORWARD ON THE YOKE. THE OTHER ACFT PASSED SLIGHTLY ABOVE TO OUR R AS WE REACHED 1300 AGL. THE TFC WAS ON AN IFR TRAINING FLT; TRACKING THE LOC OUTBOUND AT THE SAME ALT AS INBOUND TFC CROSSES THE FAF. HE WAS TALKING TO THE CTL TWR; WE WERE STILL ON APCH FREQ. I IMMEDIATELY CALLED THE TWR TO RPT FAF INBOUND AND TOLD HIM OF THE CLOSE ENCOUNTER. TWR SAID THE OTHER ACFT HAD RPTED US IN SIGHT. I LATER QUESTIONED THE INSTRUCTOR FROM THE FLT. HE FIRST SAW US ABOUT THE SAME TIME WE SAW HIM. HE SAID HE RPTED HAVING AN SMT IN SIGHT WHICH WAS ABOUT 1 MI IN FRONT OF US. 'SEE AND BE SEEN' PREVENTED AN ACCIDENT BUT THE MARGIN WAS MUCH TOO CLOSE.