Foreign Military Sales(FMS)
A government-to-government program where the U.S. sells defense articles and services to allied nations.
Overview
Foreign Military Sales (FMS) are administered by the Defense Security Cooperation Agency (DSCA). The U.S. government acts as an intermediary, procuring defense items from U.S. contractors and transferring them to allied foreign governments under formal agreements.
Why It Matters in GovCon
FMS creates significant contracting opportunities for defense contractors. While the customer is a foreign government, the contract is with the U.S. government. FMS contracts follow standard DoD procurement but with unique funding and administrative requirements.
Key Details
- Government-to-Government: Transaction is between the U.S. and foreign government.
- DSCA Role: DSCA manages FMS cases and coordinates with military services.
- Letter of Offer and Acceptance (LOA): Formal agreement defining the FMS sale.
- Direct Commercial Sales (DCS): Alternative where contractors sell directly to foreign customers with export approval.
Related Terms
- Defense Security Cooperation Agency (DSCA)
- Letter of Offer and Acceptance (LOA)
- ITAR
- Direct Commercial Sales (DCS)
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