How does the security cooperation office support U.S. defense companies?

The SCO, led by the SDO/DATT, is the principal point of contact in U.S. missions for most U.S. defense industry representatives attempting to market defense equipment or services. SCOs support the marketing efforts of U.S. companies while maintaining strict neutrality between U.S. competitors. The SCO facilitates the flow of U.S. systems information, subject to releasability and export licensing considerations, while avoiding advocacy of specific U.S. producers or suppliers, if the effort involves multiple and competing U.S. commercial entities. SCOs should be well informed about, and responsive to, U.S. defense industry interests in the host country. The SCO should draw on resident embassy experts (e.g., the commercial attaché or political/economic counselor) to inform industry representatives of the country’s financial position, relevant International Monetary Fund (IMF) controls or restrictions on credit, and the organization and functions of the Ministry of Defense and other government branches involved in national defense. Often defense industry representatives (sometimes former SCOs and SDO/DATTs) have strong relations/networks in the international partner and can be a good source of information on what is happening on the SCO’s programs and the international partner's decision making/organization. Further details on support to U.S. defense industry are covered in the SAMM, C2.1.8.

While SA is principally a foreign policy tool for the USG, it also provides benefits to U.S. industry and the United States in general in the form of jobs, profits, maintenance of critical industries, reduction in trade deficits, tax revenue, etc. Nearly all FMS cases involve the procurement of goods and services, directly or indirectly, from U.S. industry. In support of these benefits, and in support of the standardization and interoperability of foreign defense and security forces with U.S. forces, it is generally to the advantage of the United States that other countries buy American products and services when they identify a materiel requirement. In this regard, the relationship between SCO personnel and representatives of U.S. industry, although unofficial, is important.

The SCO must, however, maintain strict neutrality in promoting different U.S. firms competing for the same potential sale and should not endorse one specific American product or vendor over another unless specifically directed by DSCA. Any assistance rendered to one vendor must be offered or made available to other U.S. competitors. On the other hand, in cases where it is clear that there is only one U.S. source for a certain product or service, the SCO may endorse that American product to the host nation. While supporting U.S. industry, the SCO must also be an honest broker, considering both U.S. and host nation defense and policy interests. Should the SCO judge that the marketing and/or sale of a product is not consistent with U.S. interests, is inappropriate for the host nation’s best interests, or could adversely impact U.S. credibility or bilateral relations, the SCO should relay these concerns to the COM, DSCA, and the CCMD.