Industry
Foreign Military Sales Prime Contractor Program Office
Prime Contractor Program Office
The contractor's team that performs the contract the U.S. Government awards for the case.
What They Do
When an international partner accepts an , it enters a legal agreement to purchase military items or services from the . In regard to the , the international partner is the buyer, and the is the seller. The may provide the articles or services from stock, but often must contract with industry to acquire items or services for delivery to the partner. In the procurement contract, the becomes the buyer, and the vendor from industry becomes the seller. The international partner is not a legal participant in the procurement contract with industry; instead, the acts on behalf of the international partner. The vendor is under contract and directly obligated to the and has no direct contractual relationship with the international partner. The vendor entering into a procurement contract with the (to produce materiel or provide services) is not exporting their products. The is exporting the products under the authority of the .
Normally, there will be a assigned to the MILDEP or defense agency. The PCO oversees the contract process through the . Since the contractor may perform contract work at multiple geographic locations, it may be impractical for the PCO to perform day-to-day oversight in administering the awarded contract. As a result, the PCO generally delegates functions to an who is typically physically located near or at the prime contractor’s facility.
Within the DOD, the is typically responsible for . Before , provides advice and services to help PCOs construct effective solicitations, identify potential risks, select the most capable contractors, and write contracts that meet international partner needs. After , monitors contractor performance and management to ensure that cost, product performance, and delivery schedules follow the terms and conditions of the contracts.
Quality assurance consists of inspection, testing, evaluation, and continuous verification of contractors’ inspection systems or quality assurance programs. When unfavorable conditions are detected, requirements for corrective action are initiated by the contractor. All requirements have the same quality assurance processes applied that the DOD utilizes for its own contracts. The quality assurance function includes the inspecting and ultimately accepting or rejecting the contractor’s performance under provisions of the contract. At the point of acceptance, the takes title to the materiel, which subsequently transfers to the international partner at the manufacturer’s loading facility prior to shipment per standard term and condition 5.1. acceptance of performance is documented by either a DD Form 250, “Material Inspection and Receiving Report,” or by generating a Receiving Report acceptance within the Wide Area Workflow system.
The DOD is responsible for making payments to contractors in accordance with the contract. It is common practice to make “” to contractors prior to delivery. These payments cover a percentage of costs incurred as work progresses.
are often predicted in advance, using cost expenditure curves developed from typical DOD contract expenditure rates. Therefore, the anticipated , plus any hold back for termination costs, form the basis for the international partner’s .
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 C6.3.5.1 — Source Selection.
- SAMM C6.3.9.2 — Procurements.
- SAMM C6.3.9.3 — Disclosure of Offset Information.
- SAMM C6.3 — Case Execution - Acquisition
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
LOA — Letter of Offer and Acceptance
SAMM Acronyms, as of 12 September 2026
FMS — Foreign Military Sale
SAMM Acronyms, as of 12 September 2026
DoD Components (DSCA)
The Office of the Secretary of Defense, the Military Departments, the Joint Chiefs of Staff, the Combatant Commands, the DoD Office of the Inspector General, the Defense agencies, and DoD field activities.
SAMM Glossary, as of 12 September 2026
Source Selection
The process wherein the requirements, facts, recommendations, and government policy relevant to an award decision in a competitive procurement of a system/project are examined and the decision made.
SAMM Glossary, as of 12 September 2026
Procuring Contracting Officer (PCO)
The individual authorized to enter into contracts for supplies and services on behalf of the government by detailed bids or negotiations and who is responsible for overall procurement under such contracts.
SAMM Glossary, as of 12 September 2026
Contract Award
This occurs when a contracting officer has signed and distributed a contract to a contractor.
SAMM Glossary, as of 12 September 2026
Contract Administration
All the activities associated with the performance of a contract, from pre-award to closeout.
SAMM Glossary, as of 12 September 2026
Administrative Contracting Officer (ACO)
The USG contracting officer who is assigned the responsibility for the administration of USG contracts.
SAMM Glossary, as of 12 September 2026
Defense Contract Management Agency (DCMA)
An agency under the direction of the Under Secretary of Defense for Acquisition and Sustainment, which provides contract administration services for the Department of Defense, other federal organizations and international partners, and is an essential part of the acquisition process from pre-award to sustainment and contract closeout.
SAMM Glossary, as of 12 September 2026
Contract Administration Services (CAS)
All those actions accomplished in or near a contractor's plant for the benefit of the U.S. government which are necessary to the performance of a contract or in support of the buying offices, system/project managers, and other organizations, including quality assurance, engineering support, production surveillance, pre-award surveys, mobilization planning, contract administration, property administration, industrial security, and safety.
SAMM Glossary, as of 12 September 2026
DCMA — Defense Contract Management Agency
SAMM Acronyms, as of 12 September 2026
Progress Payments
Payments made to a prime contractor during the life of a fixed-price type contract on the basis of a percentage of incurred total costs or total direct labor and material costs.
SAMM Glossary, as of 12 September 2026
Payment Schedule
List of dollar amounts and when they are due from the foreign customer. The payment schedule is included in the Letter of Offer and Acceptance (LOA) presented to the customer. After acceptance of the LOA, the payment schedule generally serves as the basis for billing to the customer. Changes in the estimated costs of an Foreign Military Sales case may require changes in the accompanying payment schedule.
SAMM Glossary, 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
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