FMS (Foreign Military Sales)

What is FMS (Foreign Military Sales)?

Foreign Military Sales (FMS) is a program managed by the United States Department of Defense (DoD) that facilitates the sale of U.S. defense equipment, services, and training to foreign governments. The program is a key component of U.S. foreign policy, designed to strengthen alliances, enhance the security of partner nations, and support the U.S. defense industrial base.

Key Aspects of the FMS Program

How FMS Works

Under the FMS program, foreign governments submit requests for defense articles and services to the U.S. government. These requests are evaluated based on political, military, economic, and human rights considerations. Once approved, the U.S. government acts as the intermediary, negotiating contracts with U.S. defense contractors on behalf of the foreign customer.

Benefits of FMS

  1. Standardization and Interoperability: By acquiring U.S. defense systems, foreign militaries can achieve greater interoperability with U.S. forces, facilitating joint operations and training exercises.
  2. Comprehensive Support: FMS provides not only equipment but also training, maintenance, and logistical support, ensuring that foreign customers can effectively operate and sustain the purchased systems.
  3. Strengthening Alliances: FMS helps to solidify U.S. relationships with allied and partner nations, contributing to global security and stability.

Financial Aspects

FMS transactions are typically financed through a variety of means, including the purchasing country’s national funds, U.S. government grants, or loans. The program operates on a no-profit, no-loss basis, meaning that the U.S. government does not profit from these sales.