1017:
82:
55.9% increase compared to the $ 51.9 billion recorded in 2022. FMS is carried out with countries that are authorized to participate and is subject to approval based on the mechanism to procure services, a deposit in a U.S. trust fund or appropriate credit, and approval to fund services. On any given day, DSCA is managing “14,000 open foreign military sales cases with 185 countries,” the DSCA director
Lieutenant General Charles Hooper explained at the Brookings Institution in June 2019.
115:) or another Defense Department agency. There are three types of LORs : LOR for Price and Availability (P&A) for the foreign government to obtain basic information for further planning; LOR for a Letter of Offer and Acceptance (LOA), an official expression of interest by a foreign country; and LOR for a change to an already existing LOA for making amendments to existing LORs.
81:
In FY 2020, U.S. military-industry base sold $ 50.8 billion through FMS and $ 124.3 billion through Direct
Commercial Sales. In 2023, the U.S. recorded the highest annual sales of U.S. military equipment to foreign governments, carried out under the FMS system, valued at $ 80.9 billion. This marked a
181:
After the acceptance of the LOA by the foreign government, the implementing agency is authorised by the
Defense Finance and Accounting Service (DFAS) to obligate funds to execute the FMS and begin the procurement of the defense articles and/or services. Major FMS cases can include the procurement of
194:
Section 36(b) (22 U.S.C. §2776(b)) of the AECA specifies that
Congress must be notified about arms sales 30 days before the issuance of a Letter of Offer and Acceptance (LOA) for defense equipment valued at $ 14 million of more, defense articles or services valued at $ 50 million or more, or design
73:
describes FMS as "a fundamental tool of U.S. foreign policy." FMS was the primary channel for U.S. arms exports until the 1980s, when the limits on the size of permitted Direct
Commercial Sales (DCS) was lifted. DCS was seen by buyers to be faster, more cost-effective and less-transparent than FMS.
185:
According to
Defense Department policy, the purchaser is responsible for the transportation and delivery of purchased articles. Purchasers can either use the Defense Transportation System (DTS) on a reimbursable basis or use their own freight forwarder to manage the transportation and delivery.
148:
FMS sales are required to be cost-neutral to the U.S. government. To cover the costs incurred by the government to process an FMS, administrative surcharges, Contract
Administration Services (CAS), Non-recurring costs (NC) and other fees are included in the payment schedule described in the LOA.
139:
The FMS case is reviewed by the implementing agency and DSCA to ensure compliance with the requirements of the LOR and U.S. laws and regulations. If approved by the implementing agency and the DSCA, the Letter of Offer and
Acceptance (LOA) is submitted to the State Department for its review and
298:
Foreign governments must agree to U.S.-provided defense articles, training and services only for their intended purpose. End-use monitoring (EUM) is typically performed by U.S. government personnel assigned to the
Security Cooperation Office in the foreign country.
94:(PM), is responsible for the administration of FMS while the Defense Department through the DSCA is responsible for its implementation. DSCA coordinates with PM to review and consult with Congress to receive formal agreement with an eligible foreign government.
219:
for the sale, enhancement, or upgrading of major defense equipment valued at $ 25 million or more, defense articles or services at $ 100 million or more, or design and construction services of $ 300 million or more. Congress has the authority of block a sale.
102:
Foreign governments submit a Letter of
Request (LOR) to a U.S. government Security Cooperation Organization (SCO), typically the Office of Defense Cooperation within the U.S. embassy in that country or directly to the DSCA or to a U.S. military department
831:
274:
had determined that "an emergency exists requiring the sale of non-standard ammunition" to Ukraine "in the national security interest of the United States" to invoke the AECA Section 36 emergency waiver provision.
182:
items from existing U.S. government stocks and new production. Procurement for a foreign government is typically managed by the same office responsible for the procurement of an article for the U.S. government.
859:
123:
An FMS case identifier that consists of a country, the code of an implementing agency (Army, Navy or Air Force) and a unique three-position FMS case designator is assigned to each LOR. For example,
157:
The LOA includes an estimated payment schedule for the foreign government that typically consists of an initial deposit and future quarterly payments. Methods of payment typically consist of
318:
804:
727:
263:
missile and Paveway systems) and S.J.Res. 38 (prohibiting transfer of technical data to support the manufacturing of the Aurora Fuzing System for the
778:
347:
278:
On 8 December 2023, DSCA notified Congress that Secretary Blinken had determined "an emergency exists which requires the immediate sale" of
379:
752:
112:
323:
195:
and construction services valued at $ 200 million or more. Congress must also be notified 15 days before the issuance of an LOA to
158:
42:(DSCA) acquires defense articles on behalf of the foreign governments, protecting them from contract risks in negotiating with the
166:
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510:
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39:
35:
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55:
912:
887:
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31:
592:
491:
Agmon, Marcy; Bonomo, James; Kennedy, Michael; Leed, Maren; Watman, Ken; Webb, Katharine; Wolf, Charles (1996).
552:
30:
government to facilitate the purchase of U.S. arms, defense equipment, design and construction services, and
235:
invoked AECA Section 36 emergency provisions to complete "22 pending arms transfers" worth $ 8.1 billion to
162:
1087:
47:
1051:
675:
1016:
124:
51:
1032:
78:
reversed the decline in FMS and by FY 1992–93, DCS had dropped to one-fifth of U.S. arms sales.
59:
140:
approval. The LOA is also transmitted to the foreign government for its review and approval.
352:
196:
728:"Emergency Notification of Arms Sales to Jordan, the United Arab Emirates, and Saudi Arabia"
650:
1044:
988:
244:
170:
526:
8:
864:
700:
492:
438:
836:
404:
229:
506:
283:
989:
Department of Defense Financial Management Regulation (DoDFMR) 7000.14-R, Volume 15
498:
1000:
464:
626:
260:
161:, the foreign government's funds or an existing Memorandum of Agreement (MOA) or
1028:
279:
271:
1071:
43:
27:
805:"UNITED ARAB EMIRATES (UAE) – ADVANCED PRECISION KILL WEAPON SYSTEM (APKWS)"
34:
to foreign governments. FMS is a government-to-government program where the
676:"Defense Transportation System (DTS) | Defense Security Cooperation Agency"
252:
240:
131:
beginning with the word PEACE, indicating oversight by USAF headquarters.
259:
bombs), S.J.Res. 37 (prohibiting transfer of maintenance services for the
832:"Trump Vetoes Bipartisan Resolutions Blocking Arms Sales to Gulf Nations"
232:
216:
208:
1005:
264:
860:"Trump vetoes Congress's attempt to block arms sales to Saudi Arabia"
779:"UNITED ARAB EMIRATES (UAE) – RQ-21A BLACKJACK UNMANNED AIR VEHICLES"
494:
Arms Proliferation Policy: Support to the Presidential Advisory Board
270:
On 24 April 2022, the DSCA notified Congress that Secretary of State
204:
128:
465:"Foreign Military Sales (FMS) | Defense Security Cooperation Agency"
75:
502:
46:
and providing the contract benefits and protections that apply to
256:
600:. Defense Security Cooperation Agency. 15 July 2018. p. 20.
267:
bomb). On July 29, a Senate vote failed to override the vetoes.
287:
236:
212:
50:
acquisitions. The FMS program was established through the 1976
405:"Conventional Arms Transfers to Developing Nations, 2007-2014"
62:
through the annual Foreign Operations Appropriations Acts and
437:
Lucas, Nathan J.; Vassalotti, Michael J. (21 February 2020).
200:
439:"Transfer of Defense Articles: Foreign Military Sales (FMS)"
888:"Senate Fails to Override Trump's Veto on Saudi Arms Sales"
248:
189:
553:"Fiscal Year 2023 U.S. Arms Transfers and Defense Trade"
627:"Case Identifier | Defense Security Cooperation Agency"
348:"Advancing U.S. interests through security cooperation"
165:(MOU) with the United States. Payments are made to the
134:
753:"UNITED ARAB EMIRATES (UAE) – JAVELIN GUIDED MISSILES"
490:
380:"America sold $ 175 billion in weapons abroad in FY20"
255:
vetoed the S.J.Res. 36 (prohibiting co-production of
830:
Shear, Michael D.; Edmondson, Catie (24 July 2019).
290:to invoke the AECA Section 36(b) emergency waiver.
858:Demirjian, Karoun; Itkowitz, Colby (24 July 2019).
615:. Defense Security Cooperation Agency. p. 21.
74:By 1989, DCS surpassed FMS in value. However, the
1006:AFSAC - The Air Force Security Assistance Center
857:
85:
1069:
611:"C5 - Foreign Military Sales Case Development".
436:
829:
1052:
403:Theohary, Catherine A. (21 December 2015).
16:United States Department of Defense program
1059:
1045:
701:"Arms Sales: Congressional Review Process"
345:
127:(USAF) FMS programs are assigned two-word
97:
26:) is a security assistance program of the
1001:DSCA Foreign Military Sales program page
402:
324:United States Foreign Military Financing
943:Defense Security and Cooperation Agency
939:"ISRAEL – M830A1 120MM TANK CARTRIDGES"
190:Congressional Notification Requirements
118:
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725:
167:Defense Finance and Accounting Service
965:"ISRAEL – 155MM ARTILLERY AMMUNITION"
885:
613:Security Assistance Management Manual
377:
293:
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497:. RAND Corporation. pp. 29–30.
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135:Letter of Offer and Acceptance (LOA)
92:Bureau of Political-Military Affairs
969:Defense Security Cooperation Agency
917:Defense Security Cooperation Agency
913:"UKRAINE – NON-STANDARD AMMUNITION"
809:Defense Security Cooperation Agency
783:Defense Security Cooperation Agency
757:Defense Security Cooperation Agency
527:"U.S. Arms Sales and Defense Trade"
251:aggression". On 24 July, President
64:National Defense Authorization Acts
40:Defense Security Cooperation Agency
36:United States Department of Defense
13:
726:Pompeo, Michael R. (24 May 2019).
314:Foreign Military Sales Act of 1971
309:Foreign Military Sales Act of 1968
90:The State Department, through its
14:
1099:
994:
886:Catie, Edmondson (29 July 2019).
570:
481:
423:
366:
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56:United States Department of State
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699:Kerr, Paul K. (4 January 2024).
173:through check or wire transfer.
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346:Twardowski, Adam (2019-06-11).
705:Congressional Research Service
545:
519:
457:
443:Congressional Research Service
409:Congressional Research Service
396:
86:Foreign Military Sales Process
54:(AECA) and is overseen by the
1:
329:
1078:United States military stubs
1031:. You can help Knowledge by
282:and "related equipment" and
7:
378:Mehta, Aaron (2020-12-04).
302:
176:
163:Memorandum of Understanding
113:Department of the Air Force
10:
1104:
1010:
651:"U.S. Military Code Names"
223:
159:Foreign Military Financing
152:
143:
319:List of F-16 FMS programs
732:U.S. Department of State
557:U.S. Department of State
531:U.S. Department of State
655:designation-systems.net
280:155 mm artillery rounds
98:Letter of Request (LOR)
52:Arms Export Control Act
1083:Foreign Military Sales
1025:United States military
594:Foreign Customer Guide
109:Department of the Navy
105:Department of the Army
60:United States Congress
20:Foreign Military Sales
353:Brookings Institution
245:United Arab Emirates
171:United States dollar
119:FMS Case Identifiers
865:The Washington Post
971:. 29 December 2023
892:The New York Times
837:The New York Times
294:End-use Monitoring
284:120 mm tank shells
230:Secretary of state
1088:Military industry
1040:
1039:
945:. 9 December 2023
533:. 20 January 2021
512:978-0-8330-2403-9
32:military training
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228:On 24 May 2019,
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811:. 24 May 2019
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759:. 24 May 2019
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973:. Retrieved
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561:. Retrieved
559:. 2024-01-29
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472:. Retrieved
469:www.dsca.mil
468:
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447:. Retrieved
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413:. Retrieved
411:. p. 16
408:
398:
387:. Retrieved
384:Defense News
383:
357:. Retrieved
351:
297:
277:
269:
253:Donald Trump
241:Saudi Arabia
227:
197:NATO members
193:
184:
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38:through the
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707:. p. 2
445:. p. 2
233:Mike Pompeo
217:New Zealand
209:South Korea
1072:Categories
685:2024-05-24
636:2024-05-24
563:2024-02-05
474:2022-08-08
389:2022-08-08
359:2021-02-15
330:References
265:Paveway IV
129:code names
205:Australia
660:25 March
303:See also
243:and the
177:Delivery
76:Gulf War
58:and the
257:Paveway
249:Iranian
224:Waivers
153:Payment
144:Pricing
975:24 May
949:24 May
923:24 May
897:24 May
871:24 May
843:24 May
815:24 May
789:24 May
763:24 May
737:24 May
711:24 May
537:24 May
509:
449:24 May
415:24 May
288:Israel
237:Jordan
213:Israel
1023:This
598:(PDF)
201:Japan
1029:stub
977:2024
951:2024
925:2024
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873:2024
845:2024
817:2024
791:2024
765:2024
739:2024
713:2024
662:2015
539:2024
507:ISBN
451:2024
417:2024
71:DSCA
69:The
499:doi
286:to
215:or
111:or
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24:FMS
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