9.15.1. Foreign Military Sales planning
- Through its security assistance policy, the USG provides for various forms of security assistance to other nations. The FMS program is a large and complex program, which is administered by the U.S. DoD. In Canada, PWGSC, as well as the client, plays an important role in the implementation and maintenance of this program.
- Transactions initiated within the FMS program are covered under basic categories of agreements (known as cases in the U.S. military organizations). The main categories are:
- Defined Order Cases: Certain defence articles and services can be provided only on defined line cases, which may offer items at individually estimated prices and delivery dates. The USG, where necessary, in turn contracts for defence articles and services that are required to fulfill the Letter of Offer and Acceptance (LOA);
- Blanket Order Cases (BOC) including Blanket Open End (BOE) arrangements through the U.S. Army, and Direct Requisitioning Procedures through the U.S. Navy: most repair parts and routine services can be offered under Blanket Order LOAs, which reduce the time needed for processing orders. These LOAs are perfectly suited for addressing subsequent needs, (i.e. where the client will require additional defence articles or services on a periodic basis). These agreements are similar to standing offers, allowing clients to submit requirements directly to the identified U.S. military organization. Support equipment including assemblies, components, special tools, test equipment, training aid devices, minor modifications performed at U.S. installations and repair and return services, training, etc., are usually the subject of BOC; and
- Co-Operative Logistics Supply Support Arrangements, commonly referred to as COLOG in Canada and CLSSA in the U.S.: CLSSA is a unique arrangement whereby Canada is able to invest in the U.S. supply system and receive access to U.S. DoD stocks. This arrangement involves two separate FMS cases. The first FMS case covers Canada's investment in specific USG supply system items; the second FMS case is used to requisition these items.
- PWGSC(H) will determine, before procurement through the FMS program is initiated, whether the provisions of the North American Free Trade Agreement or the World Trade Organization Agreement on Government Procurement apply and will take action accordingly. When these provisions do not apply, PWGSC will determine whether there is an existing or potential source of supply in Canada and after consultations with the Department of National Defence (DND), or any other client, and will establish whether in the circumstances, it would be more advantageous for the Government of Canada to procure in Canada or directly from the equipment manufacturer in the U.S. or from the U.S. DoD.
- Quite often the weapon system can only be purchased through the FMS program. The Arms Export Control Actgives the President discretion to designate which military end item must be sold through the FMS program exclusively. This discretion is delegated to the Secretary of Defence and is executed by the Defence Security Cooperation Agency in close coordination with the Defence Technology Security Administration and the Military Department (MILDEPT) or U.S. DoD component responsible for the end item. The Department of State approves or disapproves all sales, and is responsible for the continuous supervision and general direction of all sales. Four general criteria are used to determine if a sale is required to proceed through the FMS program: legislative/presidential restrictions; DoD/ MILDEPT policy, directive or regulatory requirements, e.g., the National Disclosure Policy, government-to-government requirements and interoperability/safety requirements for U.S. Forces. The PWGSC(W) office will confirm with the client when the FMS program is the only solution.