Foreign Military Sales

An essential course for manufacturers, exporters and their executives, and legal and financial advisors.

The international marketplace offers substantial opportunities for U.S. firms in the business of selling military products and services. These international contracting opportunities can take the form of Foreign Military Sales as well as direct sales of military products and services.

Each type of sale presents unique problems in marketing, contract negotiation, approval, and performance.

Contractors who wish to engage in international contracting opportunities successfully and profitably must be able to anticipate and settle the problems that can arise. To do this means being able to navigate a complex web of statutes, regulations, and policies governing FMS, FMF, and U.S. export controls. This specially developed program is such an opportunity — offering guidance of the rules and skills you need to be successful in this area.

Foreign Military Sales Course Curriculum

Introduction to Security Assistance
1. History
2. Trends
3. Legal & Policy Development
Statutory, Regulatory & Policy Framework
1. Authorizing Legislation
  1. Arms Export Control Act
  2. Foreign Assistance Act
2. Appropriating Legislation
  1. Foreign Operations Appropriations
  2. Defense Appropriations
3. Regulations
  1. Security Assistance Management Manual (SAMM)
  2. International Traffic in Arms Regulations (ITARS)
  3. United States Munitions List (USML)
  4. Federal Acquisition Regulation (FAR)
  5. Defense Federal Acquisition Regulation Supplement (DFARS)
4. Policy Constraints on FMS
Government Involvement
1. Legislative Branch
  1. Role of Congress
  2. Legislated Policy
  3. Congressional Controls
2. Judicial Branch
3. Executive Branch
  1. President
  2. Department of State
  3. Department of Defense
Foreign Military Sales Program & Process
1. Eligibility
  1. Customers
  2. Products and Services
2. Select Policies
3. Authorized Transactions
  1. Stock Sales
  2. Procurement Sales
  3. Dependable Undertakings
  4. Deferred Payment Sales
  5. Leases
4. Types of Cases
  1. Defined Order Cases
  2. Blanket Order Cases
  3. Cooperative Logistics Supply Support Arrangements (CLSSA)
5. Initiating the FMS Case
  1. Letter of Request (LOR)
  2. Negative Responses
  3. Preliminary (Price & Availability [P&A]) Data
  4. Letter of Offer and Acceptance (LOA)
  5. Letter of Intent (LOI)
  6. Coordination and Approval
  7. Congressional Notification & Review
  8. Acceptance
6. Amendments and Modifications
7. Pricing FMS Cases
  1. Stock Sales
  2. Procurement Sales
  3. Agents' Fees, Commissions & Political Contributions
  4. IR&D / B&P
  5. Taxes
  6. Surcharges
  7. Termination Liability
  8. Direct Charges
  9. Waivers and reductions
8. Offsets
9. Terms of Sale
  1. Deposit
  2. Collection & Payments
  3. Trust Funds
  4. Disbursements
10. Execution of FMS Requirements
11. Delivery of FMS Materiel
  1. Title transfer
  2. U. S. Flag Carriers
  3. Responsibilities
  4. Methods of Transport
  5. Discrepancies
12. Follow-on Support
13. Case Closure
14. Disputes and Remedies
Foreign Military Financing
1. Background
2. Types
  1. Direct Loans
  2. Guaranteed Loans
3. Eligibility
  1. General Standards
  2. Credit Standards
4. Annual FMF Funding Process
5. Issuance of Loans & Commitment of Funds
6. Permissible Sources of Goods and Services
7. Transportation Restrictions
  1. General Policies
  2. Waivers
8. Repayment
  1. Due Dates & Late Payments
  2. Sanctions
9. FMF of Direct Commercial Sales
  1. Guidelines & Ground Rules
  2. Place of Manufacture
  3. Domestic Content
  4. Offsets
  5. Fees and Commissions
  6. Oversight
  7. Contractor Certification
  8. Subcontractor Flow-downs
  9. DCMA / DCAA Reviews
  10. Audits
  11. Disputes & Remedies
  12. Applications & Agreements
  13. Defense Export Loans Guarantees
Export Control
1. Statutes and Regulations
2. ITARS
3. USML
4. Commodity Jurisdiction Procedure
5. Controlled Exports
  1. Definitions
  2. What is Controlled
  3. Prohibited Destinations and Exports
6. Exempt Exports
  1. FMS Exemption
  2. U. S. Government End-Use
  3. Canadian Exemption
  4. General Exemptions
  5. Miscellaneous Exemptions
7. Licensing
  1. Defense Articles
  2. SME & MDE
  3. Defense Services
    1. Manufacturing License Agreements
    2. Technical Assistance Agreements
  4. Technical Data
  5. Special Circumstances
8. Export Process and Procedure
  1. Registration
  2. Advisory Opinions
  3. Types of Licenses
  4. Licensing Procedure & Approval
  5. Special Regimes
  6. End-Use Monitoring
  7. Denial of License
Agents Fees & Commissions: ITAR Reporting Requirements
1. Who Must Report
2. Payments Subject to Reporting
3. Payments by Vendors & Suppliers
4. Information Required to be Reported
Foreign Corrupt Practices Act
1. Prohibited Conduct
2. Elements of Violations
3. Exceptions
4. Affirmative Defenses
5. Scope of the Act
6. Subsidiaries and Affiliates
7. Business Review Procedure
8. SEC Enforcement
9. DOJ Enforcement
10. Civil and Criminal Penalties

Course Director

Anthony J. Perfilio is Of Counsel with Rendigs, Fry, Kiely & Dennis, L.L.P.

Mr. Perfilio concentrates his practice in government, public, and business contracts and dispute resolution. His principal practice areas include contract solicitation and proposal requirements, competition, award selections and bid protests, contract technical data and intellectual property matters, organizational conflicts of interest, contract interpretation, dispute resolution, and terminations for convenience and default. A retired member of the Senior Executive Service, he has over 31 years of practice experience as an attorney and legal services manager for the Department of the Air Force. Prior to retiring as Director, Air Force Materiel Command Law Office, he supervised all Air Force contract dispute resolution before the Armed Services Board of Contract Appeals and all legal services in connection with acquisition of major weapon systems by the Aeronautical Systems Center, research and development by the Air Force Research Laboratory, and foreign military sales by the Air Force Security Assistance Center.

Mr. Perfilio is admitted to practice in Ohio and Pennsylvania, as well as before the U. S. Supreme Court and several Federal trial and appellate courts. He is an active member of the Federal Bar Association, having served as past president of the Association's Dayton, Ohio Chapter and serving currently as a Council Member of the Federal Bar Association's Government Contracts Section. Also active in the Armed Forces Communications and Electronics Association, Mr. Perfilio serves on the Board of Directors of the association's Dayton-Wright Chapter, and is a past Chairman of the Board. Mr. Perfilio is a Fellow of the Foundation of the Federal Bar Association.

He holds a Bachelor of Science in Mechanical Engineering from Utah State University and Juris Doctor, Cum Laude, from the University of Pittsburgh School of Law. He is a member of the Order of the Coif. Mr. Perfilio also completed the Harvard University, John F. Kennedy School of Government, Program for Senior Executives in National and International Security.