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How Does Foreign Military Sales Differ From Direct Commercial Sales – DoD View DoD is generally neutral or does a foreign country procure through FMS or DCS DCS? Safety Support Management Manual FMS? Foreign partner
FMS-Only Designation DSCA/Department of State “FMS-Only” Sales Evaluation Criteria Pol-Mil Relationship with Buyer May Be Required Security of New or Complex Systems or Service Sensitive Technologies Feasibility of FMS-DCS Hybrid
Contents
- How Does Foreign Military Sales Differ From Direct Commercial Sales
- United States Africa Command
- Us Defense Industry Unprepared For A China Fight, Says Report
- Ukraine, Asia Drove 50% Increase In Fy22 Arms Sales > U.s. Department Of Defense > Defense Department News
- Cross Strait Relations
- U.s. Grants Philippines $100 Million In Foreign Military Financing
- Foreign Direct Investment Reviews 2023: Switzerland
- Foreign Involvement In The Syrian Civil War
- Ukraine’s New Military Branch: Citizens Protecting Their Neighborhood
- Total Package Sustains Foreign Partners
How Does Foreign Military Sales Differ From Direct Commercial Sales
The military services may not engage in FMS/DCS comparison studies when FMS is in conflict with DCS: FMS data may be withdrawn if DCS activities are initiated later FMS data may be conducted under certain circumstances until ongoing DCS activities are discontinued National policy requirements of countries must provide a DSCA exception
United States Africa Command
10 FMS or DCS Most defense articles and services can be provided through FMS or DCS. Is one method best for all purchases?
Client preference to work with DoD or defense contractor? There are many factors to consider at the time of political considerations in the country, one is not always faster than the other, each avenue needs to be analyzed.
Management – FMS Program Management by DoD – “Leave Us Driving” Tools for this Management Service Experienced staff familiar with FMS fees Administrative overhead Non-recurring costs Quality assurance Contract administration services (CAS)
Management – DCS Foreign buyer should take this responsibility Contract negotiation Contract administration Technical knowledge Legal review Will it cost – Will it be more than FMS charges? Will there be additional benefits that outweigh the additional costs?
Us Defense Industry Unprepared For A China Fight, Says Report
Financial Issues – Difficult to compare FMS LOA Estimated Price Total Package Approach (TPA) USG pays on time Consolidates USG requirements
16 Financial Issues – DCS DCS: Fixed Price? Without following DoD procedures, contract prices can be low Low volumes can lead to high prices Use commercial banking processes – less money is tied up than in trust fund prompt billing
DCS can use FMS FOS with DCS major weapon system sales and vice versa: non-standard support highly dependent on end item and contractor FMS or DCS FMS: offers unique non-standard support programs offsets are always between customer and contractor.
Traditional FMS Sole Source FMS FMS Offset Combination FMS / DCS DCS with FMFP DCS Traditional DCS with USG Contract Administrator
Ukraine, Asia Drove 50% Increase In Fy22 Arms Sales > U.s. Department Of Defense > Defense Department News
In order to operate this website, we log user data and share it with processors. To use this website, you must agree to our privacy policy, including the cookie policy. 5 FMS / DCS: USG Position DoD is generally neutral as to whether a country purchases US-origin defense articles through FMS or on a DCS basis SAMM C4.3.4
9 FMS or DCS Most defense materials and services can be provided through FMS or DCS Is one method best for all procurement?
FMS-Only Designation DSCA/Department of State “FMS-Only” Sales Evaluation Criteria Pol-Mil Relationship with Buyer May Be Required Security of New or Complex Systems or Service Sensitive Technologies Feasibility of FMS-DCS Hybrid
The military services will not normally engage in FMS/DCS comparison studies Can be done in some circumstances Countries National policy requirements DSCA approves policy exception for special circumstances FMS DCS ??? SAMM C4.3.7
Cross Strait Relations
Client preference to work with DoD or defense contractor? There are many factors to consider at the time of political considerations in the country, one is not always faster than the other, each avenue needs to be analyzed.
Management – FMS Program Management by DoD – “Leave Us Driving” Tools for this Management Service Experienced staff familiar with FMS fees Administrative overhead Non-recurring costs Quality assurance Contract administration services (CAS)
Management – DCS Foreign buyer should take this responsibility Contract negotiation Contract administration Technical knowledge Legal review Will it cost – Will it be more than FMS charges? Will there be additional benefits that outweigh the additional costs?
Financial Issues – Difficult to compare FMS LOA Estimated Price Total Package Approach (TPA) USG pays on time Consolidates USG requirements
U.s. Grants Philippines $100 Million In Foreign Military Financing
17 Financial Issues – DCS DCS: Fixed Price? Without following DoD procedures, contract prices can be low Low volumes can lead to high prices Use commercial banking processes – less money is tied up than in trust fund prompt billing
DCS can use FMS FOS with DCS major weapon system sales and vice versa: non-standard support highly dependent on end item and contractor FMS or DCS FMS: offers unique non-standard support programs offsets are always between customer and contractor.
Traditional FMS Sole Source FMS FMS Offset Combination FMS / DCS DCS with FMFP DCS Traditional DCS with USG Contract Administrator
In order to operate this website, we log user data and share it with processors. In order to use this website, you must agree to our privacy policy, including the cookie policy. 2 / 2 Show caption + Hide caption – SASAC manages approximately 6,000 FMS cases valued at more than $200 billion, providing equipment and training to US partners and allies. . USASAC’s total package approach includes not only weapons systems but also parts, maintenance and logistics … (Photo credit: US) View Original
Foreign Direct Investment Reviews 2023: Switzerland
From strengthening our allies’ counterterrorism capabilities and regional stability to ensuring their interoperability and capability to help America shoulder the burden of coalition operations, FMS will continue to play a role in our military’s ability to fight and win multi-domain wars.
One of our nation’s staunchest allies, Poland, completed the FMS package in February 2019 valued at $411 million. It includes 20 M142 High Mobility Artillery Rocket Systems. The purchase, combined with last year’s $4.6 billion purchase of FMS Patriot Advance Capability-3, is a significant boon to Poland’s widely used military modernization plan, and NATO capabilities.
With an unstable Russia to its east, Poland has aggressively stepped up its efforts to acquire more advanced weapons and expand its defensive capabilities. The Patriot is one of the most powerful air defense missile systems in the world, and its purchase is Poland’s largest military purchase to date.
“Allies and partners buy from the United States because we sell the world’s most advanced defense systems,” said Lt. Gen. Charles W. Hooper, director of the Defense Security Cooperation Agency, which manages the FMS program for DOD. “Through a uniquely American approach to security cooperation, we ensure that our allies and partners have all the necessary training, education and institutional capabilities to effectively employ and sustain the tools we provide.”
Foreign Involvement In The Syrian Civil War
The US Security Assistance Command (USASAC) at Redstone Arsenal, Alabama, manages approximately 6,000 FMS cases valued at more than $200 billion. The command interfaces with 119 security support offices worldwide and provides security support and FMS to more than 150 nations and international partners.
When FMS customers enter an FMS case in the United States, they are purchasing a portfolio of services that includes training, spare parts, technical manuals and full support from the US government. This is called the “total package approach”.
Without this durable support, “components will eventually wear out. If an FMS customer buys a tank but can’t get spare parts and other maintenance needs, that tank is nothing more than a big paperweight in their motor pool,” said Cindy Decker, USASAC’s G-4. Service and Product Division Head within the Acquisition Support Branch.
Durability is so important that it is often the case that before partner nations receive an FMS weapon system, spare parts and other capabilities have already been delivered. However, some nations have FMS equipment that requires non-standard items. A non-standard item is one that DOD does not maintain, either because it has been retired or because it was never purchased for DOD components.
Ukraine’s New Military Branch: Citizens Protecting Their Neighborhood
A small purchasing office staffed by three employees in New Cumberland, Pennsylvania ensures that even these hard-to-acquire items are not beyond the FMS customer’s reach.
“We have, for example, countries that bought material from us 20 or 30 years ago,” Decker said. “It may be an item that is no longer in inventory, an old, obsolete model, or it may lack a national stock number, but the customer still needs the item to continue their mission.” Decker said not having an item in stock isn’t the answer, no matter how hard it is to find.
It is the job of the Acquisition Support Branch (through extensive Internet research and industry engagement) to locate and provide non-standard items to FMS customers to get up and running. The Acquisition Support Branch mainly focuses on items that outfit the army – boots, gloves, body armor, helmets, tents, targets and ready-to-eat meals. It provides training and professional repair and return capability (from calibration to rebuild) for non-repairable equipment at depots.
The services and products division has several tools for acquiring items, Decker said — primarily blanket purchase agreements, but also once-competitive or sole-source contracts. Low-dollar, high-volume materials and services purchased through the division total approximately $200 million annually, with commercial returns and repairs approximately $35 million annually.
Total Package Sustains Foreign Partners
“We work hard with our partners to ensure they have what they need to be successful, operating alliances and contributing to regional stability, because when they win, we win,” Decker said.
While the Services and Products Division focuses on military support items, USASAC’s Simplified Non-Standard Acquisition Program procures small-volume, low-dollar spare parts for FMS customers. Also located in New Cumberland, the program office specializes in off-the-shelf spare parts–from nuts and bolts to anything that runs on a tank–that can be obtained faster, easier and less expensively than through a tank.
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