Difference between revisions of "Foreign Military Sales"

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The Foreign Military Sales (FMS) program is the U.S. Government’s program for transferring defense articles, services, and training to other
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sovereign nations and international organizations.  Under FMS, the U.S. government procures defense articles and services on behalf of the foreign customer. Countries approved to participate in this program may obtain defense articles and services by paying with their own national funds or with funds provided through U.S. government-sponsored assistance programs. In certain cases, defense articles, services and training may be obtained on a grant basis. The Defense Security Cooperation Agency (DSCA) administers the FMS program for the Department of Defense DoD).
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'''The Foreign Military Sales (FMS) program is the U.S. Government’s' program for transferring defense articles, services, and training to other
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sovereign nations and international organizations.'''  
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Under FMS, the U.S. government procures defense articles and services on behalf of the foreign customer. Countries approved to participate in this program may obtain defense articles and services by paying with their own national funds or with funds provided through U.S. government-sponsored assistance programs. In certain cases, defense articles, services and training may be obtained on a grant basis. The Defense Security Cooperation Agency (DSCA) administers the FMS program for the Department of Defense (DoD).
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The President designates countries and international organizations eligible to participate in FMS. The Department of State makes those
 
The President designates countries and international organizations eligible to participate in FMS. The Department of State makes those
 
recommendations and approves individual programs on a case-by-case basis. Currently some 160 countries are eligible to participate in FMS.
 
recommendations and approves individual programs on a case-by-case basis. Currently some 160 countries are eligible to participate in FMS.
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Foreign customers may obtain U.S. defense articles and services through direct commercial sales (DCS). Under DCS rules, U.S. companies
 
Foreign customers may obtain U.S. defense articles and services through direct commercial sales (DCS). Under DCS rules, U.S. companies
 
obtain commercial export licenses from the Department of State allowing them to negotiate directly with foreign customers. As with FMS, all
 
obtain commercial export licenses from the Department of State allowing them to negotiate directly with foreign customers. As with FMS, all
 
DCS are subject to the approval of the Department of State, the U.S. Congress, and applicable U.S. exports laws and regulations.
 
DCS are subject to the approval of the Department of State, the U.S. Congress, and applicable U.S. exports laws and regulations.
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The following table provides relevant regulations to FMS Acquisitions
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Table C6.T1. Selected FAR and DFARS Sections Relevant to FMS Acquisition<ref>http://samm.dsca.mil/chapter/chapter-6 Jan. 1, 2016</ref>
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{| class="wikitable"
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|-
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! Topic !! FAR !! DFAR
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|-
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| Acquisitions for FMS ||  || Subpart 225.73
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|-
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| Contingent Fees (Agent Fees & Commissions) || Subpart 3.4 || 225.7303-4
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|-
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| Options FMS ||  || Subpart 217.2
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|-
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| Costs of Doing Business with a Foreign Government ||  || 225.7303-2
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|-
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| Selling Costs/Expenses || 31.205-38 || 225.7303-2(a)(1)
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|-
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| Other Than Full and Open Competition - International Agreement || 6.302-4 || 206.302-4
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|-
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| Contract Type Risk – FMS ||  || 215.404.71-3(d)(1)(vii)
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|-
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| FMS Customer Involvement ||  || 225.7304
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|-
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| Source Selection ||  || 225.7304
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|-
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| Limitation of Liability ||  || 225.7305
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|-
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| Offset Arrangements ||  || 225.7306
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|-
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| Contract Clauses ||  || 225.7307
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|-
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| Applicability of Acquisition Warranty ||  || 225.7304
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|-
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| Pricing Acquisitions for FMS ||  || 225.7303
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|-
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| Buy America Act || Part 25 ||
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|-
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| Balance of Payments Program ||  || 225.75
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|}
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==Related Pages==
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[[Foreign Military Sales (FMS) - Offsets]]
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==References==
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<References/>
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[[Category:Foreign Sales]]

Latest revision as of 15:28, 5 February 2016

The Foreign Military Sales (FMS) program is the U.S. Government’s' program for transferring defense articles, services, and training to other sovereign nations and international organizations.

Under FMS, the U.S. government procures defense articles and services on behalf of the foreign customer. Countries approved to participate in this program may obtain defense articles and services by paying with their own national funds or with funds provided through U.S. government-sponsored assistance programs. In certain cases, defense articles, services and training may be obtained on a grant basis. The Defense Security Cooperation Agency (DSCA) administers the FMS program for the Department of Defense (DoD).


The President designates countries and international organizations eligible to participate in FMS. The Department of State makes those recommendations and approves individual programs on a case-by-case basis. Currently some 160 countries are eligible to participate in FMS.


Foreign customers may obtain U.S. defense articles and services through direct commercial sales (DCS). Under DCS rules, U.S. companies obtain commercial export licenses from the Department of State allowing them to negotiate directly with foreign customers. As with FMS, all DCS are subject to the approval of the Department of State, the U.S. Congress, and applicable U.S. exports laws and regulations.


The following table provides relevant regulations to FMS Acquisitions

Table C6.T1. Selected FAR and DFARS Sections Relevant to FMS Acquisition[1]

Topic FAR DFAR
Acquisitions for FMS Subpart 225.73
Contingent Fees (Agent Fees & Commissions) Subpart 3.4 225.7303-4
Options FMS Subpart 217.2
Costs of Doing Business with a Foreign Government 225.7303-2
Selling Costs/Expenses 31.205-38 225.7303-2(a)(1)
Other Than Full and Open Competition - International Agreement 6.302-4 206.302-4
Contract Type Risk – FMS 215.404.71-3(d)(1)(vii)
FMS Customer Involvement 225.7304
Source Selection 225.7304
Limitation of Liability 225.7305
Offset Arrangements 225.7306
Contract Clauses 225.7307
Applicability of Acquisition Warranty 225.7304
Pricing Acquisitions for FMS 225.7303
Buy America Act Part 25
Balance of Payments Program 225.75


Related Pages

Foreign Military Sales (FMS) - Offsets

References

  1. ↑ http://samm.dsca.mil/chapter/chapter-6 Jan. 1, 2016
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