The Foreign Military Sales (FMS) program is a form of security assistance authorized by the Arms Export Control Act (AECA), as amended [22 U.S.C. 2751, et. seq.] and a fundamental tool of U.S. foreign policy. Under Section 3, of the AECA, the U.S. Government may sell defense articles and services to foreign countries and international organizations when the President finds providing defense articles and services will strengthen the security of the United States and promote world peace.
Under FMS, the U.S. Government and a foreign government or international organization enter into a government-to-government agreement called a Letter of Offer and Acceptance (LOA). Secretary of State determines which countries will have programs. Secretary of Defense executes the program. FMS may be funded by country national funds or U.S. Government funds.
The President designates countries and international organizations eligible to participate in FMS. The Department of State approves individual program on a case-by-case basis. The Department of Defense executes the program by utilizing the Department of Defense acquisition system.
FMS may be funded by foreign government national funds or U.S. Government funds.
For a detailed FMS overview, watch DSCA’s video describing the FMS process and how businesses can participate: