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). In these cases, the Pentagon does not support these types of mission requirements in their stockpiles, or in their annual budget. Foreign Military Sales Versus Direct Commercial Sales [Metin Gultekin] on Amazon.com. LMDefense, LLC is a registered broker for defense articles and services. Vendor – the Vendor refers to the U.S. defense company seeking to sell their product overseas. While several deals are still pending, or are in the Letter of Offer and Acceptance (LOA) phase, the next few years will see growth for several defense companies and a growing industrial supply chain. Check out my overview of the benefits of FMS vs. the benefits of DCS. Direct commercial contracts generally require a relatively large down payment, payable at the time of contract signature. We are also authorized to provide EDA under the FAA and to approve third-party transfer requests under both the … Join a local chapter and get plugged in to NDIA. 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). However, they must carry more risk and administrative burdens. Defense technology transfers equip our international friends and allies with capabilities needed to address regional and global security concerns. These organizations are driving the future of defense through education, access, and collaboration. The Foreign Military Sales (FMS) program manages government-to-government purchases of weapons and other defense articles, defense services, and military training. 2778 of U.S. Code, DCS is distinguished from the Foreign Military Sales (FMS) program, which manages government-to-government sales or transfers. 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. 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). A robust defense industrial-government network consisting of Divisions, Industrial Committees, and ad-hoc Working Groups. Through the Foreign Military Sales process, the U.S. government serves as a go-between for foreign partners and American industry. 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. For qualified FMS customers, the U.S. Congress provides funding through foreign military financing (FMF). A key difference between Foreign Military Sales (FMS) and Direct Commercial Sales (DCS) is that: Unlike FMS, with DCS the purchaser must communicate with the US Government . NDIA convenes events and forums for the exchange of ideas, which encourage research and development, and routinely facilitates analyses on the complex challenges and evolving threats to our national security. This is a government-to-government transfer, so the export process is managed the US DOD. Our mission is to ensure the continued existence of a viable, competitive national technology and industrial base, strengthen the government-industry partnership through dialogue, and provide interaction between the legislative, executive, and judicial branches. 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. If the Customer wishes to use FMF funding, DCS is not an option. Policy staff regularly meets with key policy stakeholders, and manages Congressional interaction with NDIA Chapters and Divisions. Authorized under Sec. 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. It is not spiral-bound The Customer pays an additional 3.5% of the total price to cover the contracting and administrative services provided by US DOD. The Apache sale is a hybrid procurement—Direct Commercial Sale (DCS) between Boeing and MoD and Foreign Military Sale (FMS) between government of India and the US government. The Vendor must obtain export approval from the U.S. State Department. Place of Manufacture ii. Munitions List (USML), pursuant to the International Traffic in Arms Regulations (ITAR). The US DOD assumes contracting risk and is responsible for ensuring that the Vendor meets cost, schedule, and performance requirements. The United States Government benefits directly and indirectly from transfers of military technologies or systems to foreign governments or end users. Both are viable options for U.S. defense companies seeking to do business overseas. Each affiliate has its own membership, structure, and dues. 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. 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