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. This is a NAVAL POSTGRADUATE SCHOOL MONTEREY CA report procured by the Pentagon and made available for public release. FMF funds purchases are made through the Foreign Military Sales (FMS) program, which manages government-to-government sales. The Vendor negotiates with the Customer. 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. 245 ... in its calculation of the nonrecurring cost recoupment charge when major defense equipment is sold by foreign military sales or direct commercial sales to foreign governments or international organizations. 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. Direct Commercial Sales Reviews. U.S. DOD – U.S. DOD refers to any U.S. military office. U.S. Government (USG) is not involved in the transaction, and does not act on behalf of the Customer or Vendor should complications arise. Over the past three years, the Policy team has led NDIA’s Acquisition Reform Initiative. Qualifying for an export license through DCS is based on how a product or service is categorized. © 2020 National Defense Industrial Association. These activities represent overhead management costs to the Customer. 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. These organizations are driving the future of defense through education, access, and collaboration. (Basically, both DCS and FMS require the same type of notification). 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. Foreign governments buy billions of dollars of defense equipment and services through the U.S. Defense Department's foreign military sales program. Check out our Services or Contact Us to learn more. A direct commercial sale requires an export license, which is issued by the Office of Defense Trade Controls at the State Department's Bureau for Political-Military Affairs. This facilitates payment by the Customer. The NDIA Business Institute exists to build a more capable, qualified, and Both methods have existed for decades, but a novice to international sales has a steep learning curve regarding the complexities of each. The NDIA Policy team monitors, advocates for, and educates government stakeholders on, policy matters of importance to the defense industrial base. In these cases, the Pentagon does not support these types of mission requirements in their stockpiles, or in their annual budget. Domestic Content Requirements & Exceptions iii. Challenges. LMDefense, LLC is a registered broker for defense articles and services. Basically, DCS is any sale not through the FMS/FMF system. 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. Disclosure e. Contracts i. U.S. financial assistance, through the Foreign Military Financing Program (FMF) may be available to the Customer. *FREE* shipping on qualifying offers. 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