ARTICLE · 29 MARCH 2023

FMS Modernization: Major Changes Could Be Coming To DOD's Outdated Weapons Transfer Program

Wiley Rein

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WHAT: Concerned about competition with China and Russia's invasion of Ukraine, the U.S. Department of Defense (DOD) in August 2022 established a task force or "Tiger Team"...

United StatesGovernment, Public Sector

Scott A. Felder

W. Benjamin Phillips, III

WHAT: Concerned about competition with China and Russia's invasion of Ukraine, the U.S. Department of Defense (DOD) in August 2022 established a task force or "Tiger Team" of senior officials to look at ways DOD can streamline the Foreign Military Sales (FMS) program to process and complete weapons deals more efficiently. To accomplish its task, the FMS Tiger Team sought industry input on how the FMS program could be improved. On February 23, 2023, the Aerospace Industries Association (AIA), National Defense Industrial Association (NDIA), and Professional Services Council (PSC) publicly released their report to the FMS Tiger Team on modernizing the FMS system.

According to the report, the current FMS system is misaligned with the National Security Strategy (NSS) and National Defense Strategy (NDS), transactional in nature, and presents significant barriers to entry internationally for the U.S. defense industry. The report also noted that defense trade should not be

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