“The Foreign Military Sales (FMS) Program is that part of Security Assistance authorized by the Arms Control Export Act (AECA) and conducted using formal contracts or agreements between the United States Government (USG) and an authorized foreign purchaser. These contracts, called Letters of Offer and Acceptance (LOAs), are signed by both the USG and the purchasing Government or international organization; and provide for the sale of defense articles and/or defense services (to include training) usually from Department of Defense (DoD) stocks or through purchase under DoD-managed contracts. As with all Security Assistance, the FMS program supports United States (U.S.) foreign policy and national security objectives.” (Source: Security Assistance Management Manual Para C4.1.1)
AUTHORITIES / REFERENCES
The FMS program is governed by:
Both the State and Defense Departments have responsibilities in FMS cases.
The United States government is required by Congress to prepare an annual report on military assistance, military exports, and military imports known as the “Section 655” report (after the section of the Foreign Assistance Act which requires it). Both the State Department and the Defense Department submit their respective portions of the annual Section 655 report; State reports on direct commercial sales (DCS) export licenses; Defense (through DSCA) reports on drawdowns, excess defense articles, international military education and training, and foreign military sales (FMS). FMS cases are reported in the Annual DSCA Fact Books.