Acquisition Directorate (CG-9)

Foreign Military Sales vs. Direct Commercial Sales

Foreign Military Sales

Direct Commercial Sales

The Office of International Acquisition and Navy International Programs Office will negotiate with manufacturers on behalf of the purchasing nation.

Purchasing nation negotiates directly with manufacturer.

By using the FMS system, the purchasing nation benefits from the acquisition experience and political goodwill of the USG. The total Package Approach (TPA) utilized in the FMS system requires the USG to ensure that all facets of operational requirements are addressed from initial acquisition, training and spare parts through to long-term supportability and logistics. The USG assumes contracting risk and is responsible for ensuring the manufacturer meets cost, schedule, and performance requirements.

U.S. Government (USG)

  • is not involved in the transaction,
  • does not ensure quality of equipment, training or services contracted for
  • does not act on behalf of the purchasing nation should complications arise
  • is not required to provide support or training for equipment received.
Any required notifications to Congress are jointly sponsored by the Defense Security Cooperation Agency (DSCA) and the Department of State (DoS).

Congress must be notified of a decision to issue an export license if the sale includes equipment and/or services totaling $50 million or if significant defense equipment is valued at $14 million

  • Congress may deny any proposed export license within 30 days of notification
FMS financial transactions are governed by public-domain statutes and regulation and have mandatory financial management reviews, ensuring complete transparency.

DCS sales are less transparent due to lack of reporting requirements.


Last Modified 9/2/2008