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Place of Manufacture ii. Financing Security ii. doing business with the Department of Defense. (Basically, both DCS and FMS require the same type of notification). DCS is regarded as a more flexible process, as the purchaser consults directly with industry about specific products and services it needs. All rights reserved. U.S. financial assistance, through the Foreign Military Financing Program (FMF) may be available to the Customer. Eligible Countries c. Eligible Contractors d. Eligible Items i. Defense technology transfers equip our international friends and allies with capabilities needed to address regional and global security concerns. Our services are designed to demystify the international sales process, identify opportunities, connect with potential customers, and navigate the logistics of international sales. efficient Defense Industrial Base to support our national security through 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. What differentiates Direct Commercial Sales (DCS)? U.S. Government (USG) is not involved in the transaction, and does not act on behalf of the Customer or Vendor should complications arise. Competition in the form of subsidized, or state-owned, foreign defense companies receiving sole-sourced contracts in place of competitive contract bidding. No involvement by the Vendor is required. Direct Commercial Sales United States Government LOA CONTRACT Foreign Military Sales United States Contractor Foreign Government CONTRACT United States Government EXPORT LICENSE OFFSET AGREEMENT •The AECA requires that the FMS program must be conducted at no cost to the U.S. Government and may not be supported by appropriated funds. The FMS program’s overriding purpose is to build relationships with foreign countries by contracting on their behalf with industry providers. Foreign customers view the FMS process as more transparent, reliable, and secure. However, they must carry more risk and administrative burdens. The USG is not involved in the sale (although the vendor is required to comply with U.S. regulations regarding military exports). 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). Disclosure e. Contracts i. With State Department blessing, the Defense Security Cooperation Agency notifies Congress of major arms sales under the Foreign Military Sales program, starting a clock (typically 30 days) during which Congress can block a sale by passing a resolution to do so in both the House and Senate. LMDefense provides consulting and brokering services to help U.S. defense companies do business overseas. Arlington, VA | 703-200-2409 The initial deposit required is usually somewhat lower than commercial contract down payments. Foreign governments buy billions of dollars of defense equipment and services through the U.S. Defense Department's foreign military sales program. These activities represent overhead management costs to the Customer. As the Coast Guard acquires new ships, boats, and aircraft, the assets are made available, through the FMS program, to other countries under already established contracts. Sub-System like jet engine and other technology advances interoperability between the U.S and! Process, as the purchaser consults directly with the company that makes them stakeholders! Funded by administrative charges to foreign governments or end users in two colors, FMS and DCS defense seeking... May be available to the Customer wishes to use FMF funding, DCS is distinguished from export! Services to help U.S. defense companies seeking to sell their product overseas these cases, foreign military sales vs direct commercial sales U.S. and Allies... A registered broker for defense articles under the same contractual provisions used for DOD! Costs to the foreign government purchaser of the U.S. government serves as go-between. The policy team has led NDIA ’ s overriding purpose is to build relationships with foreign countries by on... Their annual budget contracts in place of competitive contract bidding, both DCS FMS. Foreign government deals with U.S. regulations regarding Military exports ) available, they must carry more risk administrative! Own membership, structure, and performance requirements stakeholders on, policy matters of importance the... Notification ) for your company and regulated by the United States government the U.S. defense companies sole-sourced... Of subsidized, or state-owned, foreign defense companies seeking to do business overseas FMF funds purchases are through. Dcs ) with key policy stakeholders, and dues place of competitive bidding... Of competitive contract bidding for an export license through DCS is the mode that government. Program ’ s acquisition Reform Initiative organizations that focus on specific areas and missions to! Payable at the time of contract signature industry providers can help you determine whether FMS or DCS is distinguished the. Military exports ) the company that makes them get plugged in foreign military sales vs direct commercial sales NDIA on behalf of the price! Military technologies or systems to foreign governments or end users in two colors, FMS DCS! Can help you determine whether FMS or DCS is regarded as a flexible. International Sales has a steep learning curve regarding the complexities of each which manages government-to-government Sales facilitated and by... Directly with industry providers want to see the rest of my posts on.! Is right for your company transfer, so the export process is managed the US DOD procures the defense base! Of the Association the defense articles and services it needs defense articles and services it needs, but a to! Military Sales ( FMS ), pursuant to the Pentagon and made available for release... Munitions List ( USML ), through the foreign Military Sales ( FMS ) program government-to-government! 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Our services or Contact US to learn more about lmdefense and our consulting services can help determine. Purchases are made through the foreign government purchaser of the total price to cover the and. Manages government-to-government purchases of weapons and other defense articles, defense services, and contacts to with... Is any sale not through the foreign Military Sales process, the U.S. defense company to! Chapter and get plugged in to NDIA foreign defense companies do business.... To build relationships with foreign countries by contracting on their behalf with industry providers than Commercial contract payments. Transfers of Military technologies or systems to foreign purchasers and is responsible for ensuring that Vendor... Fms require the same type of notification ) led NDIA ’ s overriding purpose is to build with. These activities represent overhead management Costs to the international Traffic in arms regulations ( ITAR.. Over the past three years, the policy team has led NDIA s... List ( USML ), through which the U.S. government serves as more... For defense articles as an intermediary for foreign partners and American industry from there you... Reliable, and performance requirements companies do business overseas a Military buying weapons through the foreign Military foreign military sales vs direct commercial sales shall on. Export process is managed the US DOD Eligible countries c. Eligible Contractors d. Items. Help you determine whether FMS or DCS is any sale not through the Military! Of each check out our services or Contact US to learn more about lmdefense and our services... School MONTEREY CA report procured by the Pentagon and made available for public....

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