FMS (Foreign Military Sales)

What is Foreign Military Sales (FMS)?

Foreign Military Sales is the U.S. government program through which allied and partner nations purchase American defense articles, services, and training. Its defining feature is that it is government-to-government: rather than a foreign country contracting directly with a U.S. company, the U.S. government acts as the intermediary, buying from industry on the partner nation's behalf and managing the sale.

How it works

A partner nation requests a capability, and if the sale is approved, it is documented in a case that the Defense Security Cooperation Agency oversees. The U.S. government then uses its own acquisition process to procure the goods or services from contractors and delivers them to the partner. The foreign customer benefits from U.S. contracting leverage and oversight; the U.S. benefits from strengthened alliances and interoperability.

Why it matters to contractors

For a defense contractor, FMS is a distinct and substantial channel of demand that runs alongside domestic procurement. The customer relationship and requirements are shaped by the government-to-government structure, which affects timelines, configuration, and compliance, including export-control rules. Understanding whether an opportunity is an FMS case tells you who your real customer is and which additional rules apply.