Guide
What is a Direct Commercial Sale?
A is made by U.S. industry directly to a foreign buyer under a Department of State license and is not administered through procedures. The two are different procurement methods for the same U.S. defense articles and services.
What is a Direct Commercial Sale?
The and systems are simply different procurement methods that the international partner may employ for the purchase of U.S. defense articles and services. In a commercial acquisition, a U.S. contractor and an international partner enter into a direct contract in accordance with U.S. law and regulations and provisions of international commercial law, except for export control approval and compliance enforcement. The is not a party to these commercial contractual transactions. The international partner has the responsibility to select the source and manage the contract directly with the U.S. contractor.
Under the system, the and the international partner enter into an agreement, the , which specifies the terms and conditions of the sale. Except for items supplied directly from DOD inventory, the purchases the desired items or services from the U.S. manufacturer on behalf of the international partner. The DOD employs essentially the same procurement criteria as if the item/service was being purchased for U.S. needs. The , not the international partner, selects the source and manages the contract consistent with the provisions of the , , and the case.
Under traditional , the essentially has no direct involvement in the procurement process, except for one essential element–the export license. For a of defense articles or services, the U.S. company that is preparing to enter a sales contract with the international partner must first obtain approval for the sale. This approval is indicated in the form of an approved export license.
References
SAMM
- SAMM GLOSSARY/foreign-military-sales-fms — Foreign Military Sales (FMS)
- SAMM GLOSSARY/direct-commercial-sale-dcs — Direct Commercial Sale (DCS)
- SAMM C3.3.1 — International Traffic in Arms Regulations Requirements.
Related
Direct Commercial Sale (DCS)
A sale of defense articles or defense services made under a Department of State issued license by U.S. industry directly to a foreign buyer, and which is not administered by DoD through Foreign Military Sales procedures.
SAMM Glossary, as of 12 September 2026
Foreign Military Sales (FMS)
A process, authorized by the Arms Export Control Act, through which eligible foreign governments and international organizations may purchase defense articles, services, and training from the United States Government.
SAMM Glossary, as of 12 September 2026
Arms Export Control Act (AECA)
The basic U.S. law providing the authority and general rules for the conduct of Foreign Military Sales and commercial sales of defense articles, defense services, and training. The Arms Export Control Act (AECA) came into existence with the passage of the Foreign Military Sales Act (FMSA) of 1968. An amendment in the International Security Assistance and AECA of 1976 changed the name of FMSA to the AECA.
SAMM Glossary, as of 12 September 2026
FMS — Foreign Military Sale
SAMM Acronyms, as of 12 September 2026
DCS — Direct Commercial Sales
SAMM Acronyms, as of 12 September 2026
LOA — Letter of Offer and Acceptance
SAMM Acronyms, as of 12 September 2026
Federal Acquisition Regulation (FAR)
The FAR is the primary regulation for use by federal executive agencies for the acquisition of supplies and services with appropriated funds. The document, published in 1984, consolidated the major procurement regulations of various departments and agencies. The intent of the FAR is to standardize the content, decrease the volume of documents, and to achieve consistency throughout government. The principal agencies involved in putting together the FAR were DoD, the General Services Administration, and the National Aeronautics and Space Administration, the three largest buyers. The FAR is broader than just contracting and applies to all goods and services. It directs the defense program manager in many ways, including contract award procedures, acquisition planning, warranties, and establishing guidelines for competition. Besides the FAR, each agency has its supplement to describe its own particular way of doing business. The DoD supplement is called Defense FAR Supplement.
SAMM Glossary, as of 12 September 2026
DFARS — Defense Federal Acquisition Regulation Supplement
SAMM Acronyms, as of 12 September 2026
Technical Data
Recorded information of a scientific or technical nature, regardless of form or characteristic. Examples of technical data packages include research and engineering drawings and associated lists, specifications, standards, process sheets, manuals, technical reports, catalog item identifications, and related information and computer software documentation.
SAMM Glossary, as of 12 September 2026
DTSA — Defense Technology Security Administration
SAMM Acronyms, as of 12 September 2026