The FMS process has specific phases and time limits.
|Preliminary Phase||Indeﬁnite||The Customer determines their procurement requirements. The Customer obtains specific systems information from multiple sources, including the potential Vendors.|
|Deﬁnition Phase||Indeﬁnite||Customer and U.S. DoD exchange technical information. The DoD may contact the potential vendor for additional information.|
|Request||Indeﬁnite||Customer prepares and submits a Letter of Request (LOR).|
|Development of Offer||USG has 120 days to respond to LOR Congressional review may take 15 – 50 additional days.||The DoD Implementing agency receives the LOR and develops price and availability (P&A) data or a Letter of Offer and Acceptance (LOA). The DoD offices gain necessary USG and Congressional approvals. The DoD issues Letter of Offer and Acceptance (LOA) to the Customer.|
|Acceptance of the Offer||Customer has 60 – 85 days to accept LOA.||The Customer signs the LOA and returns it to the DoD with their initial deposit.|
|Implementation||15 days average to open active case||The DoD offices issue obligational authority (OA) and implementing directive (the official procurement notification to the Vendor). The DoD activates FMS computer software for case management.|
|Execution||Depends on delivery schedule established in LOA||The Customer completes payment according to schedule established in LOA. The Vendor delivers goods according to schedule.|
|Reconciliation and Closure||2 years after final delivery||The DoD and the Customer reconcile records. The DoD sends closure certificate and issues ﬁnal bill to the Customer.|
Notes and abbreviations:
- U.S. DOD – U.S. DOD refers to any U.S. military office. There are various DOD offices involved in the FMS process.
- Vendor – the Vendor refers to the U.S. defense company seeking to sell their product overseas.
- Customer – the Customer refers to the Foreign Government purchaser of the U.S. defense products.