“We [are] at the nexus of foreign policy, with the
items we are building for the U.S. government
becoming a vehicle for ... foreign policy.”
— Tom Schoegler, Lockheed Martin
to Saudi Arabia. Lawmakers worried purchases via the Direct Commer- lenge. From a business standpoint, it
that in the wrong hands, they could cial Sales (DCS) program, in which can be a challenge to execute a sale.”
be used to target U.S. troops in the purchasers negotiate directly with According to defense offi cials,
Middle East or Israel. And in 1978 defense companies. The approval there is a potential cost savings to
there was considerable debate over route is the same for both purchase the U.S. when items are sold abroad
the sale of F-15 aircraft to the Saudis. paths. Because of security concerns through FMS. Though this might
However, the U.S. has sold an and the potential transfer of classi- be accurate, it can be somewhat
array of defense items to the Middle fi ed gear, portions of weapons sales, involved. To Schoegler, this is a
East over the years. In December even under DCS, are exclusively question of production lines and not
2007, sales of missiles to Kuwait, government-to-government trans- necessarily units sold. For example,
missile systems to the United Arab actions, Schoegler says. DCS can be the Joint Strike Fighter is assem-
Emirates, and F-16s to Morocco were quicker than FMS, and DCS sales bled at the same plant as the F-16.
announced without any apparent also are less transparent than FMS Though the U.S. has not ordered
congressional objection. — FMS sales are public record. F-16s since the mid-1990s, “F-16 for-
Despite these advantages, many eign military sales assist in the over-
Getting the goods nations forgo DCS and choose to head costs associated with the Joint
Once a proposed sale has passed the purchase through FMS, so they can Strike Fighter,” he explains.
congressional threshold and an LOA develop stronger ties to the U.S.,
is signed, DoD can send the contract in general, and to the U.S. military, Security implications
out for bid. For example, if a foreign specifi cally. Through FMS, DoD As congressional concerns over sat-
nation wished to purchase the F-16, handles all contract negotiations, a ellite-guided bomb kit sales to Saudi
Lockheed Martin would be awarded benefi t to less-experienced nations. Arabia imply, there is the chance
that contract because it is already a Purchasers also often receive U.S. that today’s friend will become
Lockheed program. In turn, Lockheed training and items servicing as a tomorrow’s not-so-friendly nation.
Martin fulfi lls the contract just as it part of the contract. There also can Iran is one country with which the
would an aircraft order for the U.S. be a cost benefi t: The price per unit U.S. encountered this uncomfort-
Air Force — even making the delivery often is lower once units sold to the able — and potentially lethal — sce-
to the U.S. government. There are no U.S. are factored in. nario. In 1977, Congress and Carter
differences with an FMS sale, accord- Contractors seem to prefer FMS administration offi cials were at
ing to Schoegler. The Defense Finance to DCS, too. According to Schoegler, odds over the proposed sale of F-16s
and Accounting Service handles for- “The FMS process is predicable and to Iran. Though Shah Mohammad
eign government billing, and a down transparent. In DCS, the different Reza Pahlavi, who was considered a
payment normally is required to cover terms and conditions can be a chal- U.S. ally, was still in power, Iran was
this service and ensure the program
costs the U.S. government nothing.
WE WANT TO HEAR FROM YOU
Buying directly
When do the risks of foreign military sales outweigh the
If the U.S. government approves, a
benefits? Share your views by going to
www.moaa.org/
foreign entity might choose a route
discussion and scrolling down to Dealing in Diplomacy.
other than FMS. It could make
7 2 M I L I T A R Y O F F I C E R M AY 2 0 0 8
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