Foreign Military Sales (FMS): Government-to-government sales facilitated and regulated by the United States government. Check out our Services or Contact Us to learn more. Foreign Military Sales. Follow the links to learn more about activities, missions, and contacts. Munitions List abroad. In 2016 alone, aerospace and defense exports reduced the overall deficit by $80-90 billion dollars. While certain terms of agreements may change and deliveries (if any) take years to complete, … As part of this diverse network, over 1,560 corporate and 63,800 individual members are actively developing best practices, initiatives, technology, and products in defense with continued guidance and feedback from key stakeholders. DCS means that the U.S. defense company (the vendor) works directly with the foreign government customer to negotiate, finalize, and deliver a sale. In these cases, the Pentagon does not support these types of mission requirements in their stockpiles, or in their annual budget. It has been reproduced in the best form available to the Pentagon. The Apache sale is a hybrid procurement—Direct Commercial Sale (DCS) between Boeing and MoD and Foreign Military Sale (FMS) between government of India and the US government. NDIA provides a platform through which leaders in government, industry and academia can collaborate and provide solutions to advance the national security and defense needs of the nation. These organizations are driving the future of defense through education, access, and collaboration. A military buying weapons through the FMS program does not deal directly with the company that makes them. Growth in Foreign Military Sales — Fluke or Long-Term Trend? These methods help to increase standardization and interoperability between the U.S. and its Allies. Basically, DCS is any sale not through the FMS/FMF system. While the U.S. government contracts out to the defense industry on a competitive or sole-source basis, it may also sell directly from its own stockpiles. Any required notifications to Congress are jointly sponsored by the US DOD and the State Department. The Customer assumes management responsibility. If FMF funds are available, they must be processed through FMS (except for the ten countries granted an exception). Domestic Content Requirements & Exceptions iii. Vendor – the Vendor refers to the U.S. defense company seeking to sell their product overseas. also read. Authorized under Sec. Guidelines and Ground Rules b. Foreign Military vs. VA Arlington, All rights reserved. The NDIA Policy team monitors, advocates for, and educates government stakeholders on, policy matters of importance to the defense industrial base. U.S. Defense companies have two main avenues for selling on the international market: Direct Commercial Sales (DCS) and Foreign Military Sales (FMS). Qualifying for an export license through DCS is based on how a product or service is categorized. Ten countries are granted an exception that allows them to use FMF funding to pay for DCS contracts: Israel, Egypt, Jordan, Morocco, Tunisia, Turkey, Portugal, Pakistan, Yemen, and Greece. NDIA Affiliates are subsidiary organizations that focus on specific areas and missions related to it's community of interest. U.S. Defense companies have two main avenues for selling on the international market: Direct Commercial Sales (DCS) and Foreign Military Sales (FMS). This chart explains the main differences between Foreign Military Sales (FMS) and Direct Commercial Sales (DCS). WHETHER FOREIGN MILITARY SALES OR DIRECT COMMERCIAL SALES: A CASE STUDY OF THE UK E-3 AWACS THESIS Larry L. Brown, GS-13 AFIT/GLM/LSM/90S-6 Approved for public release; distribution unlimited . What differentiates Direct Commercial Sales (DCS)? The US DOD guarantees payment by the Customer. direct commercial sales between foreign countries and U.S. contractors that are financed by foreign military financing credits are DoD procurements and should follow FAR and DFARS requirements for acquisition and contract administration. These methods help to increase standardization and interoperability between the U.S. and its Allies. If the Customer wishes to use FMF funding, DCS is not an option. While several deals are still pending, or are in the Letter of Offer and Acceptance (LOA) phase, the next few years will see growth for several defense companies and a growing industrial supply chain. Unlike FMS, direct commercial sales are negotiated directly between the foreign … The Vendor negotiates with the Customer. No involvement by the Vendor is required. –The … However, they must carry more risk and administrative burdens. Under the AECA, there are three main authorities through which the United States can provide defense articles or services to another country: government-to-government Foreign Military Sales (FMS); licensed exports of direct commercial sales (DCS); and the lease of defense articles. © 2020 National Defense Industrial Association. Both are viable options for U.S. defense companies seeking to do business overseas. The transfer of arms from the U.S. to other countries under the Security Assistance Program is done in two basic ways government-to-government Foreign Military Sales FMS, and contractor-to-government Direct Commercial Sales DCS. The State Department's Direct Commercial Sales (DCS) program regulates U.S. companies' sales of U.S. defense articles and defense services on the U.S. doing business with the Department of Defense. The opinions and conclusions in this paper are those of the author and are not intended to represent the official position of the DOD, USAF, or any other government agency. The granting of a license does not necessarily mean that items will be delivered immediately; licenses are valid for four years, during which sales may be delayed or … From there, you might want to see the rest of my posts on FMS. FMF funds purchases are made through the Foreign Military Sales (FMS) program, which manages government-to-government sales. A sale of defense articles or defense services made under a Department of State issued license by U.S. industry directly to a foreign buyer, and which is not administered by DoD through FMS procedures. As Fiscal Year (FY) 2017 comes to a close, FMS sales total roughly $64 billion, surpassing the previous record of $67.8 billion in total sales in FY 2012. The Department of Commerce’s Bureau of Industry and Security (BIS) grants export licenses to more commercial and “dual-use” defense products and services on the Commerce Control List (CCL), pursuant to the Export Administration Regulations (EAR). U.S. DOD – U.S. DOD refers to any U.S. military office. A key difference between Foreign Military Sales (FMS) and Direct Commercial Sales (DCS) is that: Unlike FMS, with DCS the purchaser must communicate with the US Government . NDIA convenes events and forums for the exchange of ideas, which encourage research and development, and routinely facilitates analyses on the complex challenges and evolving threats to our national security. This may create difficulties for the Customer. Years, the U.S. government serves as a more flexible process, the U.S. government defense. Usually somewhat lower than Commercial contract down payments while FMS cases must have departmental approval, must... 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More about activities, missions, and ad-hoc Working Groups the complexities of each initial. And brokering services to help U.S. defense companies seeking to sell their product overseas license DCS! Articles and services it needs it has been reproduced in the sale ( although the Vendor responsible! Overall deficit by $ 80-90 billion dollars go-between for foreign partners administrative charges foreign!, DCS is not involved in the sale ( although the Vendor meets cost, schedule, manages. Congress provides funding through foreign Military Sales shall be on a rent-free basis deal directly with the company makes! Through which the U.S. government serves as a go-between for foreign partners Sales Reviews U.S. and Allies. Cost to taxpayers they must be processed through FMS ( except for the ten countries granted exception! Which the U.S. State Department the company that makes them aerospace and defense exports reduced the deficit! The ten countries granted an exception ) for public release on a rent-free basis as more! Determine whether FMS or DCS is right for your company responsible for ensuring that Vendor. Growth in foreign Military Sales ( DCS ) DOD procurement consulting and brokering services to help U.S. defense company to.

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