Publication | Jan. 31, 2025

A Comparison of Foreign Military Sales (FMS) versus Direct Commercial Sales (DCS)

International military sales are on the rise. While the United States and the European Union are reducing their defense expenditures, several countries — particularly in East Asia, South Asia, the Middle East, and South America — are increasing their expenditures. As a result, U.S. contractors are actively seeking to sell products and services in these markets. There are two primary methods for doing so: government-to-government sales through the U.S. Government’s Foreign Military Sales (“FMS”) program or similar mechanisms, and Direct Commercial Sales (“DCS”) negotiated directly between the contractor and the foreign customer. This guide provides a comparative overview of both programs.