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Industry

Foreign Military Sales Business Development (Industry)

Industry Business Development

U.S.

Updated 11 September 2026

Industry's seat before the sale — markets the company's equipment to the partner, through the embassy's , and works with U.S. Government counterparts until the is offered. Once a contract is awarded, the prime contractor's program office takes over.

What They Do

Marketing through the embassy's Security Cooperation Organization

The , led by the /, is the principal point of contact in U.S. missions for most U.S. defense industry representatives attempting to market defense equipment or services. support the marketing efforts of U.S. companies while maintaining strict neutrality between U.S. competitors. The 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. should be well informed about, and responsive to, U.S. defense industry interests in the host country. The 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.

Industry's own export authorization

U.S. industry requires separate export authorization. This authorization may be in the form of export licenses/agreements or exceptions/exemptions from the Department of State or the Department of Commerce, as appropriate.

Neutrality between U.S. competitors

While is principally a foreign policy tool for the , 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 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 personnel and representatives of U.S. industry, although unofficial, is important.

The 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 . 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 may endorse that American product to the host nation. While supporting U.S. industry, the must also be an honest broker, considering both U.S. and host nation defense and policy interests. Should the 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 should relay these concerns to the , , and the .

Foreign Military Sales or a direct commercial sale: the purchaser's choice

In instances where the is neutral regarding the purchase by or , C4.3.6 permits U.S. defense firms to designate a preference that a sale of their products or services is on a basis. When a company receives a from an international partner and prefers a , the company may request issue a preference for that particular sale. Approved preferences are valid for one year and are held within Organizations () and at the item-manager level to allow screening of future letters of request. If the applicable receives a request from the international partner for a preference item, the notifies the international partner of the preference and advises them to contact the applicable company directly.

Support of a preference is a “best-effort” commitment by the DOD. This means that any failure on the part of the to comply with the preference will not invalidate any resultant transaction. Items provided on blanket order lines and those required in conjunction with a system sale’s do not normally qualify for preference. International Partners funding a purchase using Foreign Military Financing () funds may be required to purchase by . The Director, , may also recommend that it mandate for a specific sale to the DOS.

For most defense articles or services, the international partner has the choice to purchase by either or . However, it is the policy of the not to compete with U.S. industry for foreign defense sales. Per C4.3.7, the normally will not provide foreign governments with a to sell when it is known that a contract has been requested or is already being negotiated.

Industry cannot commit the U.S. Government

In regard to materiel or services support for , advance planning and coordination are essential in any situation where industry anticipates requiring both and elements in order to fulfill the terms of a contract. Industry is not authorized to make commitments on behalf of the . Industry should inform the international partner of articles or services required to support the purchased equipment. Examples of types of support for 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 early in the process to obtain the required support.

Agents' fees and sales commissions

Sales commissions or agents’ fees, referred to in the as contingent fees, are generally allowable if the commission or fee is paid to an employee or a selling agency engaged by the prospective contractor for the purpose of legitimately securing business.

Offsets are between the purchaser and the contractor

Offsets are permissible under . However, it must be emphasized that the is between the purchasing country and the U.S. contractor. The is not party to the agreement and does not retain any obligation to enforce the contractor’s performance of the agreement.

  • No agency shall encourage, enter directly into, or commit U.S. firms to any offset arrangement related to the sale of U.S. defense articles or services.
  • funds shall not be used to finance offsets.
  • Negotiations or decisions regarding offset commitments reside with the companies involved.

Active Pipeline Stages

Where this role is most involved across the FMS pipeline:

Who They Work With

The most frequent counterparts across an FMS case:

References

Drawn exclusively from publicly available authorities.

SAMM