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These methods help to increase standardization and interoperability between the U.S. and its Allies. While the U.S. government contracts out to the defense industry on a competitive or sole-source basis, it may also sell directly from its own stockpiles. Join a local chapter and get plugged in to NDIA. Use on contracts for foreign military sales shall be on a rent-free basis. 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. In these cases, the Pentagon does not support these types of mission requirements in their stockpiles, or in their annual budget. Check out our Services or Contact Us to learn more. These methods help to increase standardization and interoperability between the U.S. and its Allies. NDIA provides a platform through which leaders in government, industry and academia can collaborate and provide solutions to advance the national security and defense needs of the nation. 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). U.S. aerospace and defense exports (1) sustain a domestic workforce in the manufacturing sector, (2) support national security programs through the foreign military sales (FMS) and direct commercial sales (DCS) processes, and (3) narrow the U.S. trade deficit gap. also read. The opinions and conclusions in this paper are those of the author and are not intended to represent the official position of the DOD, USAF, or any other government agency. DCS means that the U.S. defense company (the vendor) works directly with the foreign government customer to negotiate, finalize, and deliver a sale. Financing Security ii. DCS has the added benefit of giving customers options to purchase more non-standard systems that are mission specific, and designed to tackle readiness challenges. Like the FMS program, DCS advances interoperability between the U.S military and its allies. U.S. DOD – U.S. DOD refers to any U.S. military office. 2778 of U.S. Code, DCS is distinguished from the Foreign Military Sales (FMS) program, which manages government-to-government sales or transfers. DCS should be distinguished from the Foreign Military Sales program, which manages government-to-government sales. The State Department's Direct Commercial Sales (DCS) program regulates U.S. companies' sales of U.S. defense articles and defense services on the U.S. From there, you might want to see the rest of my posts on FMS. NDIA Affiliates are subsidiary organizations that focus on specific areas and missions related to it's community of interest. For qualified FMS customers, the U.S. Congress provides funding through foreign military financing (FMF). In 2016 alone, aerospace and defense exports reduced the overall deficit by $80-90 billion dollars. 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. Through the Foreign Military Sales process, the U.S. government serves as a go-between for foreign partners and American industry. Policy staff regularly meets with key policy stakeholders, and manages Congressional interaction with NDIA Chapters and Divisions. Major defense equipment is defined in DODD 2140.2, Recoupment of Nonrecurring Costs on Sales of … 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. 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! U.S. Defense companies have two main avenues for selling on the international market: Direct Commercial Sales (DCS) and Foreign Military Sales (FMS). The Policy team also represents NDIA in several inter-association groups representing the defense industry and the government contracting community including the Council of Defense and Space Industry Associations (CODSIA), the Acquisition Reform Working Group (ARWG), and the Industry Logistics Coalition (ILC). 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