The Vendor is responsible for submitting a completed DSP-83. Major defense equipment is defined in DODD 2140.2, Recoupment of Nonrecurring Costs on Sales of … 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. Eligible Countries c. Eligible Contractors d. Eligible Items i. A robust defense industrial-government network consisting of Divisions, Industrial Committees, and ad-hoc Working Groups. If the Customer wishes to use FMF funding, DCS is not an option. There are various DOD offices involved in the FMS process. DCS is the mode that foreign government deals with U.S. military suppliers directly, with the permission of the U.S. government. 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
Policy staff regularly meets with key policy stakeholders, and manages Congressional interaction with NDIA Chapters and Divisions. U.S. Government (USG) is not involved in the transaction, and does not act on behalf of the Customer or Vendor should complications arise. Check out our, Foreign Military Sales Sole Source Requirements Updated, Foreign Military Sales Admin Fee Decreases to 3.5%; Small Case Fee Eliminated. VA
In the U.S. foreign arms sale, there are two modes, “Foreign Military Sale (FMS)” and “Direct Commercial Sale (DCS)”. 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 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). Our services are designed to demystify the international sales process, identify opportunities, connect with potential customers, and navigate the logistics of international sales. Each affiliate has its own membership, structure, and dues. Check out our Services or Contact Us to learn more. 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. © 2020 National Defense Industrial Association. 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. Over the past three years, the Policy team has led NDIA’s Acquisition Reform Initiative. The FMS program’s overriding purpose is to build relationships with foreign countries by contracting on their behalf with industry providers. Broadly, combat resource acquisition comes in two colors, FMS and DCS. An essential course for manufacturers, exporters and their executives, and legal and financial advisors....Learn More Now 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. 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. 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 initial deposit required is usually somewhat lower than commercial contract down payments. DCS should be distinguished from the Foreign Military Sales program, which manages government-to-government sales. For qualified FMS customers, the U.S. Congress provides funding through foreign military financing (FMF). It has been reproduced in the best form available to the Pentagon. FMS is distinguished from the Direct Commercial Sales (DCS) program, which covers commercail sales of defense articles and defense services between foreign governments and private U.S. companies, and the Foreign Military Financing (FMF) program, which provides grants and loans for FMS and DCS purchases. 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. From there, you might want to see the rest of my posts on FMS. The US DOD assumes contracting risk and is responsible for ensuring that the Vendor meets cost, schedule, and performance requirements. also read. Foreign Military Sales (FMS) is the U.S. Government’s program for transferring defense articles, services, and training to our international partners and international organizations. 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. DCS is regarded as a more flexible process, as the purchaser consults directly with industry about specific products and services it needs. 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. Use on contracts for foreign military sales shall be on a rent-free basis. Direct commercial contracts generally require a relatively large down payment, payable at the time of contract signature. Our consulting services can help you determine whether FMS or DCS is right for your company! Basically, DCS is any sale not through the FMS/FMF system. tel: (703) 522-1820, Chemical Biological Defense Acquisition Initiatives Forum, Industrial Committee of Ammunition Producers, Industrial Committee on Test and Evaluation, Trusted Microelectronics Joint Working Group, ADAPT - Agile Delivery for Agencies, Programs and Teams. Abstract : 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). Congress must be notified by the State Department of a decision to issue an export license if the sale includes significant defense equipment valued at $14 million or more. Follow the links to learn more about activities, missions, and contacts. –The … 3. Authorized under Sec. Foreign Military Sales Versus Direct Commercial Sales [Metin Gultekin] on Amazon.com. Customer – the Customer refers to the Foreign Government purchaser of the U.S. defense products. What differentiates Direct Commercial Sales (DCS)? DCS means that the U.S. defense company (the vendor) works directly with the foreign government customer to negotiate, finalize, and deliver a sale. U.S. financial assistance, through the Foreign Military Financing Program (FMF) may be available to the Customer. 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. efficient Defense Industrial Base to support our national security through Disclosure e. Contracts i. Challenges. These activities represent overhead management costs to the Customer. 2778 of U.S. Code, DCS is distinguished from the Foreign Military Sales (FMS) program, which manages government-to-government sales or transfers. These methods help to increase standardization and interoperability between the U.S. and its Allies. Growth in Foreign Military Sales — Fluke or Long-Term Trend? Foreign Military vs. maloberti@lmdefense.com, LMDefense | 703-200-2409 | About | Contact, Our consulting services can help you determine whether FMS or DCS is right for your company! *FREE* shipping on qualifying offers. Regulatory Coverage vs. Munitions List (USML), pursuant to the International Traffic in Arms Regulations (ITAR). Customer negotiates directly with the Vendor. 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