Commercial Sales Of Military Technologies

American military technology and manufacturing are the best in the world. For the last seventy years, the sale of American equipment to partner nations has formed the foundation of many U.S. security relationships. Foreign military sales (FMS) represent a key tool in the American foreign policy that provides needed security assistance to partners and allies around the world. The sale of U.S. hardware bolsters the American industrial base. It creates thousands of high-paying, high skill jobs while reducing the cost of innovative technologies that keep the U.S. and its allies one step ahead of our enemies. They enable our allies to defend themselves and help forge strong bilateral bonds with the U.S. In 2016 alone, the U.S. sold $33.6 billion in military equipment and training packages. The FMS process, however, can be slow and complex, leaving partner nations and American industry frustrated. The FMS process is administered by the Defense Security Cooperation Agency and guided by the State Department. Congress has oversight of this crucial and sensitive program. This provides effective and transparent check on this key tool of U.S. foreign policy. Foreign military sales provide others countries with deadly weapons of war. The U.S. has negotiatied billions in FMS deals with Saudi Arabia, a partner in the war against the Islamic State and other radical groups in the Middle East. The U.S. must ensure that the countries to which it sells high-quality military equipment share our interests and values.

The transfer of arms from the U.S. to other countries under the Security Assistance Program is done in two basic ways: government-to-government Foreign Military Sales (FMS), and contractor-to-government Direct Commercial Sales (DCS). These methods help to increase standardization and interoperability between the U.S. and its Allies. This study examines the U.S. arms sales policies and procedures for FMS and DCS. It is aimed at identifying the advantages and weaknesses of these methods and to provide information to the Turkish Navy decision-makers for future arms procurements. The objective of this study is to improve the effectiveness and efficiency of the Turkish Navy in procuring weapon systems/services from U.S. sources. The research found demonstrates that the choice of either FMS or DCS is driven by the special circumstances of the Turkish Navy, rather than by substantive differences in the two systems. The final decision on procurement methods with the U.S. depends on the country and items to be purchase. This study examines the major trade-offs between the FMS and DCS systems, and recommends the factors which the Turkish Navy should take into account to minimize costs, maximize effectiveness, and maximize efficiency.

Explores the form and dynamics of the international defense industry, the intricacies of technology transfer and equipment sales, and the implications for U.S. policy. Charts, tables, graphs, and photos.

Foreign Military Sales: Improved Army Controls Could Prevent Unauthorized Shipments of Classified Spare Parts and Items Containing Military Technology to Foreign Countries