The US DOD assumes contracting risk and is responsible for ensuring that the Vendor meets cost, schedule, and performance requirements. Our services are designed to demystify the international sales process, identify opportunities, connect with potential customers, and navigate the logistics of international sales. For qualified FMS customers, the U.S. Congress provides funding through foreign military financing (FMF). American arms manufacturers have two major channels through which they can sell major weaponry to foreign countries: foreign military sales ("FMS"), in which a government-to-government agreement is negotiated by the Pentagon; and direct commercial sales ("DCS"), in which industry negotiates directly with the purchasing country and must apply for a license from the State Department. However, as foreign competitors move into the global aerospace and defense market more vigorously, several factors will affect (and are affecting) the future long-term presence of the United States: 2101 Wilson Blvd, Suite 700 Or, learn more about LMDefense and our consulting services. Both are viable options for U.S. defense companies seeking to do business overseas. An essential course for manufacturers, exporters and their executives, and legal and financial advisors....Learn More Now 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 … The Vendor is responsible for submitting a completed DSP-83. The Foreign Military Sales (FMS) program manages government-to-government purchases of weapons and other defense articles, defense services, and military training. These methods help to increase standardization and interoperability between the U.S. and its Allies. Vendor – the Vendor refers to the U.S. defense company seeking to sell their product overseas. 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. Follow the links to learn more about activities, missions, and contacts. It is not spiral-bound The FMS program is funded by administrative charges to foreign purchasers and is operated at no cost to taxpayers. Our mission is to ensure the continued existence of a viable, competitive national technology and industrial base, strengthen the government-industry partnership through dialogue, and provide interaction between the legislative, executive, and judicial branches. Major defense equipment is defined in DODD 2140.2, Recoupment of Nonrecurring Costs on Sales of … FMS – an acquisition program administered through the Defense Security Cooperation Agency (DSCA), with final approval by the State Department – supports security cooperation between the U.S. and its allies. The United States has four different ways to provide military equipment to Latin America: Foreign Military Financing (grants for military purchases), direct commercial sales (negotiated This is a government-to-government transfer, so the export process is managed the US DOD. This may create difficulties for the Customer. The USG is not involved in the sale (although the vendor is required to comply with U.S. regulations regarding military exports). These organizations are driving the future of defense through education, access, and collaboration. efficient Defense Industrial Base to support our national security through Check out our Services or Contact Us to learn more. When buying directly from the government’s stockpiles, foreign customers will have more leverage in the unit price of a defense system – as these same systems are also acquired by the U.S. military and defense agencies. Accesion For PTIS … LMDefense provides consulting and brokering services to help U.S. defense companies do business overseas. There are various DOD offices involved in the FMS process. 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. Munitions List abroad. Guidelines and Ground Rules b. A September 2016 White House approval of the sale of fighter jets to the Middle East illustrates the impact that FMS has on the U.S. economy, while concurrently serving U.S. national security interests. Click here for NDIA information related to Coronavirus (COVID-19), Defense Security Cooperation Agency (DSCA), Directorate of Defense Trade Controls (DDTC), International Traffic in Arms Regulations (ITAR, Website design and development by Americaneagle.com. U.S. DOD – U.S. DOD refers to any U.S. military office. Foreign customers leverage more negotiating power regarding the type of contract (fixed price or firm fixed price), how the contract is written, final delivery requirements, and methods of payment. Since offsets are utilized in both foreign military sales (FMS) and direct commercial sales (DCS), they are subject to the International Traffic in Arms Regulation (ITAR) and the Foreign Corrupt Practices Act (FCPA). Through the Foreign Military Sales process, the U.S. government serves as a go-between for foreign partners and American industry. Check out our, Foreign Military Sales Sole Source Requirements Updated, Foreign Military Sales Admin Fee Decreases to 3.5%; Small Case Fee Eliminated. Competition in the form of subsidized, or state-owned, foreign defense companies receiving sole-sourced contracts in place of competitive contract bidding. 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 . The size and skill of the Customer contracting staff may be a limiting factor during procurement. The State Department’s Directorate of Defense Trade Controls (DDTC) executes authority in issuing export licenses to all defense related products and services on the U.S. DCS should be distinguished from the Foreign Military Sales program, which manages government-to-government sales. DCS means that the U.S. defense company (the vendor) works directly with the foreign government customer to negotiate, finalize, and deliver a sale. 22201 However, they must carry more risk and administrative burdens. Any required notifications to Congress are jointly sponsored by the US DOD and the State Department. –The … Foreign customers view the FMS process as more transparent, reliable, and secure. 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 . Customer negotiates directly with the Vendor. This effort has provided legislative recommendations to assist Congressional acquisition reform efforts, many of which were enacted or influenced final provisions in the Fiscal Year 2016 and Fiscal Year 2017 National Defense Authorization Acts. The Customer assumes management responsibility. Regulatory Coverage vs. The United States Government benefits directly and indirectly from transfers of military technologies or systems to foreign governments or end users. U.S. Government’s Foreign Military Sales (“ FMS ”) program and similar mechanisms, and Direct Commercial Sales (“ DCS ”) negotiated directly between the contractor and the foreign customer. It has been reproduced in the best form available to the Pentagon. NDIA Affiliates are subsidiary organizations that focus on specific areas and missions related to it's community of interest. No involvement by the Vendor is required. DCS arms sale involves sub-system like jet engine and other technology. Located in areas of concentrated defense work, they collaborate with government and industry to facilitate important discussions of local issues and matters critical to our national defense. Join a local chapter and get plugged in to NDIA. 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. The initial deposit required is usually somewhat lower than commercial contract down payments. Munitions List (USML), pursuant to the International Traffic in Arms Regulations (ITAR). In the U.S. foreign arms sale, there are two modes, “Foreign Military Sale (FMS)” and “Direct Commercial Sale (DCS)”. This facilitates payment by the Customer. U.S. aerospace and defense exports (1) sustain a domestic workforce in the manufacturing sector, (2) support national security programs through the foreign military sales (FMS) and direct commercial sales (DCS) processes, and (3) narrow the U.S. trade deficit gap. 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