Guide

Can one purchase combine Foreign Military Sales and Direct Commercial Sales?

Updated 11 September 2026

An overall sale can be separated into a Foreign Military Sales portion and a Direct Commercial Sales portion, and U.S. industry may request defense articles and services from the U.S. Government to support a commercial sale.

Can one purchase combine Foreign Military Sales and Direct Commercial Sales?

SAMM C4.3.1.1 — Foreign Solicitation.

In an international competition, the partner releases its solicitation in the international market. When submitted through appropriate channels (See Section C5.2.5.) the solicitation is a Letter of Request (LOR) and initiates USG processes (e.g., National Disclosure Policy (NDP)-1, technology transfer, and other reviews) to determine whether it is in the U.S. best interest to participate in the international competition. The U.S. response in an international competition may include FMS, Direct Commercial Sales (DCS), international cooperative agreement, or a combination of these programs. See Section C5.3. for more information on LOR responses. Most foreign solicitations are released to international defense industries rather than to Governments; however, the FMS process should not be excluded from the response solely on the basis of how the foreign solicitation was released or conditioned.

Synced 11 September 2026 · View on samm.dsca.mil

The comparison of FMS and DCS is generally intended to evaluate the circumstances of a particular procurement to determine which method offers the greatest advantages. However, SAMM C4.3.5.4.4 permits an overall sale to be separated into an FMS portion and a DCS portion. This means that an entire sale does not have to be FMS simply because there is a G2G-Only component to the sale. The G2G-Only portion can be sold through the FMS process, while the remainder of the sale proceeds on a DCS basis. Close coordination is required to ensure that the G2G-Only portion and the DCS portion will interface seamlessly upon delivery to the international partner.

In regard to FMS materiel or services support for DCS, advance planning and coordination are essential in any situation where industry anticipates requiring both DCS and FMS elements in order to fulfill the terms of a DCS contract. Industry is not authorized to make commitments on behalf of the USG. Industry should inform the international partner of FMS articles or services required to support the DCS purchased equipment. Examples of types of FMS support for DCS include airworthiness certification, training in U.S. military schools, aircraft ferry or other transportation services, or the provision of G2G-Only articles or services. The international partner should then submit a Letter of Request (LOR) early in the DCS process to obtain the required FMS support.

Initial acquisition of a major system is just the beginning of what is required to support the system throughout its life cycle. These systems will often be active in the international partners’ military inventory for more than a decade. Over this period of operational utility, a significant investment will also be made in the form of sustainment support. The method utilized to initially acquire a defense system does not obligate the international partners to obtain sustainment support for that system through the same original acquisition method. Per SAMM C4.4.3, systems acquired by DCS are eligible to obtain FMS sustainment support for common support items. Likewise, systems acquired by FMS can be supported by DCS if the international partner desires, except for any G2G-Only sustainment items.

SAMM C4.3.13 — Department of Defense Support to Direct Commercial Sales.

U.S. industry may request defense articles and services from the DoD to support a DCS to a partner or international organization. Defense articles and/or services provided to U.S. industry must be accomplished pursuant to applicable statutory authority including AECA, section 30 (22 U.S.C. 2770), which authorizes the sale of defense articles or defense services to U.S. companies at not less than their estimated replacement cost (or actual cost in the case of services) for incorporation into end items to be sold by such company on a direct commercial basis to a friendly partner or international organization. Appendix 8, Section 30 Sales further clarifies authorized DoD support (articles or services) under this section. It is important that defense industry representatives identify early in the DCS planning process whether support from the DoD will be required. If DoD support is deemed necessary, meetings with DoD representatives should be arranged to discuss the level of support required and the method for funding the associated costs.

Synced 11 September 2026 · View on samm.dsca.mil

References

Drawn exclusively from publicly available authorities.

SAMM

SAMM C4.3.1.1 — Foreign Solicitation.
SAMM C4.3.13 — Department of Defense Support to Direct Commercial Sales.

RoleIndustry Business Development RoleWeapon System Program Office Pipeline stagePre-LOR — Requirements & Engagement

Can one purchase combine Foreign Military Sales and Direct Commercial Sales?

Can one purchase combine Foreign Military Sales and Direct Commercial Sales?

References

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