What is the FMS process?

FMS programs are conducted through binding contractual agreements between the U.S. government (USG) and an authorized foreign purchaser. These government-to-government agreements to transfer defense articles and services are called Letters of Offer and Acceptance (LOAs).

What is a FMS case?

The Foreign Military Sales (FMS) program is a form of security assistance authorized by the Arms Export Control Act (AECA), as amended [22 U.S.C. 2751, et. … Under FMS, the U.S. Government and a foreign government enter into a government-to-government agreement called a Letter of Offer and Acceptance (LOA).

How does foreign military sales work?

Foreign Military Sales (FMS) is the U.S. Government’s program for transferring defense articles, services, and training to our international partners and international organizations. The FMS program is funded by administrative charges to foreign purchasers and is operated at no cost to taxpayers.

What is the purpose of a country team assessment?

Country Team Assessment (CTA). The CTA presents the coordinated position of senior U.S. Embassy leadership in support of a proposed sale and provides key information necessary to evaluate and explain it.

What is total package approach for FMS?

When FMS customers enter into an FMS case with the United States, they are purchasing a portfolio of services that includes training, spare parts, technical manuals and the full backing of the U.S. government. This is known as the “total package approach.”

What is end use monitoring?

End-use monitoring (EUM) is aimed at satisfying statutory requirements for the U.S. government to provide assurances that American arms are not being misused, diverted, or otherwise violating the terms of their export.

Do FMS funds expire?

Pseudo FMS cases are implemented via the FMS trust fund that are financed with appropriations that expire usually in one to two years. These funds are required to be obligated in the FMS trust fund prior to the appropriation expiring, and expended prior to the appropriation canceling.

What is the Blue Lantern program?

Under the Blue Lantern program, PM Bureau and U.S. Embassy personnel worldwide conduct pre-license, post-license/pre-shipment, and post-shipment checks to verify the bona fides of foreign consignees and end-users, and confirm the legitimacy of proposed transactions.

Which DoD agency prepares FMS cases for cataloging services Disposal Services and Excess Defense Articles?

DLA
DLA prepares FMS cases for cataloging services, disposal services, and Excess Defense Articles (EDA) at the DLA Disposition Services.

What are the 3 phases of appropriation life cycle?

Each appropriation category has three distinct periods during its lifecycle: current period, expired period, and cancelled period.

Are FMS funds appropriated?

First Foreign Military Sales (FMS) Case dollars are “no year” dollars. FMS Admin dollars are also “no year” dollars but these funds are subject to apportionment. As a result, unused admin dollars must be returned at the end of each fiscal year.

What is a bona fide need?

What is the bona fide needs rule? The bona fide needs rule is a rule of appropriations law. It mandates that a fiscal year’s appropriations only be obligated to meet a legitimate—or bona fide—need arising in (or sometimes before) the fiscal year for which the appropriation was made.

How long is 3010 money good for?

10 U.S. Code §2410a authorizes the obligation of Procurement (3010) funds for a severable service contract that crosses fiscal years 20 and 21, as long as the Year 4 Option is for no more than a year. And, OMB Circular No. A-11, Section 20.4. c and FMR, Vol 2A, Ch 1, Paragraph 010107, Section B.

What are closed appropriations?

Closed Appropriation (Canceled) — An appropriation or fund account in which the balance has been closed or canceled and is no longer available for obligation or expenditure for any purpose.

What is the difference between apportionment and appropriation?

An apportioned amount may be further subdivided by an agency into allotments, suballotments, and allocations. Appropriation means a provision of law (not necessarily in an appropriations act) authorizing the expenditure of funds for a given purpose.

What is DoD color of money?

The term “Color of Money” is uses in the DoD to refer to an Appropriation Category for a DoD financial account. The type of account can range from Procurement, Research and Development (R&D), Operations and Maintenance (O&M), and others. Each category is considered to be a different color of money.

What is Colors of money?

Colors of money is shorthand for categories of budget appropriations. Colors of money is a single dimension of defense financial management that itself is multidimensional and next to impossible to illustrate in two dimensions.

What are 3300 funds?

PPBE Process
Appropriation Numerical Codes
Appropriations Accounts (Available) Navy Air Force
MILPERS (1 Year) 1453 3500
Operations and Maintenance (O&M) (1 Year) 1804 3400
Military Construction (MILCON) (5 Years) 1205 3300
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Nov 26, 2021