Industry
Foreign Military Sales Business Development (Industry)
Industry Business Development
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
SAMM
- SAMM C2.1.8.4
- SAMM C3.3.1 — International Traffic in Arms Regulations Requirements.
- SAMM C2.1.8.5 — United States' Competitors.
- SAMM C4.3.4 — Neutrality.
- SAMM C2.1.8.6 — Direct Commercial Sales Versus Foreign Military Sales.
- SAMM C4.3.13 — Department of Defense Support to Direct Commercial Sales.
- SAMM C6.3.7.1 — Prior Notification of Fees to Purchaser.
- SAMM C6.3.9.2 — Procurements.
- SAMM C6.3.9.3 — Disclosure of Offset Information.
- SAMM C2.1.8.1 — General.
- SAMM C4.3.6 — Direct Commercial Sales Preference.
- SAMM C4.3.7 — Concurrent Foreign Military Sales and Commercial Negotiations.
- SAMM C5.3.1 — Types of Letter of Request Responses.
- SAMM C6.3.9 — Offsets.
- SAMM C6.3.7 — Contingent Fees.
Defense Contractor
Any individual, firm, corporation, partnership, association, or other legal non-Federal entity that enters into a contract directly with the DoD to furnish services, supplies, or construction. Foreign governments, representatives of foreign governments, or foreign corporations wholly owned by foreign governments that have entered into contracts with the DoD are not defense contractors.
SAMM Glossary, as of 12 September 2026
Security Cooperation Organization (SCO)
A Department of Defense element that is part of the United States Diplomatic mission located in a foreign country to carry out security assistance and security cooperation management functions under the supervision and coordination authority of the senior defense official/defense attaché.
SAMM Glossary, as of 12 September 2026
Letter of Offer and Acceptance (LOA)
The legal instrument used by the USG to transfer itemized defense articles, defense services, and design and construction services to foreign partners.
When used under the authorities provided in the Arms Export Control Act for Foreign Military Sales, the LOA is a binding agreement signed by the USG and the foreign partner to transfer such articles and services.
When used under Building Partnership Capacity (BPC) authorities, the BPC LOA is not signed by the Benefitting Partner.
SAMM Glossary, as of 12 September 2026
SCO — Security Cooperation Organization
SAMM Acronyms, as of 12 September 2026
Senior Defense Official (SDO) and Defense Attaché (DATT)
Principal DoD official in a U.S. embassy, as designated by the Secretary of Defense. The SDO or DATT is the Chief of Mission's principal military advisor on defense and national security issues, the senior diplomatically accredited DoD military officer assigned to a diplomatic mission, and the single point of contact for all DoD matters involving the embassy or DoD elements assigned to or working from the embassy. The SDO or DATT is considered the dual-hatted chief of both the Security Cooperation Organization and Defense Attaché Office in the embassy. This position was established by DoDD 5205.75, Department of Defense Operations at U.S. Embassies, December 21, 2007. The same document gives coordinating authority (see glossary definition) to the SDO or DATT for the purpose of ensuring that all DoD elements in a country are working in consonance with each other and under the guidance of the Chief of Mission. The SDO or DATT program replaces the now defunct U.S. Defense Representative model.
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
FMS — Foreign Military Sale
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
Security Assistance (SA)
A group of programs authorized by federal statutes by which the United States provides defense articles, military training, and other defense-related services by grant, lease, loan, credit, or cash sales in furtherance of national policies and objectives, and those that are funded and authorized through the Department of State to be administered by Department of Defense/Defense Security Cooperation Agency, which are considered part of security cooperation.
SAMM Glossary, as of 12 September 2026
DSCA — Defense Security Cooperation Agency
SAMM Acronyms, as of 12 September 2026
Glossary entry →Defense Security Cooperation Agency (DSCA) →
COM — Chief of Mission
SAMM Acronyms, as of 12 September 2026
Combatant Command (CCMD)
A unified or specified command with a broad continuing mission under a single commander established and so designated by the President, through the Secretary of Defense and with the advice and assistance of the Chairman of the Joint Chiefs of Staff. Also called CCMD.
SAMM Glossary, as of 12 September 2026
Weapon System
A combination of one or more weapons with all related equipment, materials, services, personnel, and means of delivery and deployment (if applicable) required for self-sufficiency.
SAMM Glossary, as of 12 September 2026
DCS — Direct Commercial Sales
SAMM Acronyms, as of 12 September 2026
Implementing Agency (IA)
The military department or defense agency responsible for the execution of military assistance programs. With respect to FMS, the military department or defense agency assigned responsibility by the Defense Security Cooperation Agency to prepare an LOA and to implement an FMS case. The implementing agency is responsible for the overall management of the actions that will result in delivery of the materials or services set forth in the LOA that was accepted by a foreign country or international organization.
SAMM Glossary, as of 12 September 2026
SAMM — Security Assistance Management Manual
SAMM Acronyms, as of 12 September 2026
Glossary entry →Security Assistance Management Manual (SAMM) →
Request for Proposal (RFP)
A solicitation used in negotiated acquisitions to communicate government requirements to prospective contractors and to solicit a proposal.
SAMM Glossary, as of 12 September 2026
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
Security Cooperation
Activities undertaken by the DoD to encourage and enable international partners to work with the United States to achieve strategic objectives. It includes all DoD interactions with foreign defense and security establishments, including all DoD-administered security assistance programs, that: build defense and security relationships that promote specific U.S. security interests, including all international armaments cooperation activities and security assistance activities; develop allied and friendly military capabilities for self-defense and multinational operations; and provide U.S. forces with peacetime and contingency access to host nations.
SAMM Glossary, as of 12 September 2026
Total Package Approach (TPA)
A means of ensuring that Foreign Military Sales customers are aware of and are given the opportunity to plan for and obtain needed support items, training, and services from the USG contractors, or from within the foreign country's resources which are required to introduce and operationally sustain major items of equipment or systems.
SAMM Glossary, as of 12 September 2026
Letter of Request (LOR)
The term used to identify a request from an eligible FMS participant country for the purchase of U.S. defense articles and services. The request may be in message or letter format.
SAMM Glossary, 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
LOA — Letter of Offer and Acceptance
SAMM Acronyms, as of 12 September 2026
Offset Agreement
An agreement, arrangement, or understanding between a U.S. supplier of defense articles or services and a foreign country under which the supplier agrees to purchase or acquire, to promote the purchase or acquisition by other U.S. persons, of goods or services produced, manufactured, grown, or extracted, in whole or in part, in that foreign country in consideration for the purchase by the country of defense articles or services from the supplier [Sec. 39A(d)(1), Arms Export Control Act]. See also direct offset and indirect offset.
SAMM Glossary, as of 12 September 2026
Contracting Officer
A person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the Contracting Officer acting within the limits of their authority as delegated by the Contracting Officer. A Contracting Officer whose primary responsibility is to enter into contracts is called a procuring contracting officer. One whose primary responsibility is to administer contracts is called an administrative contracting officer. One whose primary responsibility is to terminate contracts and/or settle terminated contracts is called a "termination contracting officer." A single contracting officer may be responsible for duties in any or all of these areas.
SAMM Glossary, as of 12 September 2026
P&A — Price and Availability
SAMM Acronyms, as of 12 September 2026