Foreign Military Sales (FMS)

Foreign Military Sales (FMS) is the US government's programme for the sale of defense articles and services to foreign governments. Under FMS, the US Department of Defense acts as the contracting party with the foreign government, then sub-contracts to US defense industry. FMS is the principal non-commercial path through which NATO Allies acquire major US-origin platforms such as F-35, Patriot, Aegis, HIMARS, and Sidewinder.

Etymology / origin

FMS is administered under the Arms Export Control Act of 1976 and managed day-to-day by the Defense Security Cooperation Agency (DSCA), an agency of the US Department of Defense. The programme has roots in the Lend-Lease and Military Assistance Program frameworks of the 1940s and 1950s.

Where you encounter this term

FMS purchases are notified to the US Congress and published as DSCA news releases when proposed sales exceed congressional notification thresholds. The corresponding contract awards subsequently appear in DoD contract announcements and on SAM.gov when US defense industry executes the sub-contracts. Foreign suppliers typically do not bid directly on FMS contracts; instead, they may participate as US-industry teammates, offsets partners, or in-country sustainment providers.

Example — from the WULFRN database

WULFRN's US defense coverage (3,305 records) ingests DoD-published contract announcements, including the US-industry execution side of major FMS programmes. Foreign supplier teammates often appear as subcontractors on the US prime's award.

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Frequently asked questions

What is Foreign Military Sales (FMS)?

Foreign Military Sales (FMS) is the US government's programme for selling defense articles and services to foreign governments. Under FMS, the US Department of Defense contracts with the foreign government and sub-contracts to US defense industry. It is the principal path for NATO Allies to acquire major US-origin platforms.

Who administers FMS?

FMS is administered by the Defense Security Cooperation Agency (DSCA) of the US Department of Defense, under the legal framework of the Arms Export Control Act of 1976. Major proposed sales above congressional thresholds are notified to the US Congress and published as DSCA news releases.

Can non-US companies win FMS contracts?

Not directly. FMS contracts are awarded to US defense industry; foreign companies typically participate as US-industry teammates, offsets partners, or in-country sustainment providers. NATO Allies who want to bid directly should look at SAM.gov contracts open to international competition under the Trade Agreements Act.

Part of the WULFRN defense procurement glossary 38 terms covering NATO defense procurement vocabulary, regulations, and source portals.