Foreign Military Sales

Recent reporting has announced that Governmental process in the US has approved the sale of P8-A aircraft to the UK, pending Congressional approval. I will be the Senior Responsible Owner for the delivery of this aircraft and capability to the UK inventory and wanted to take a moment to explain the significance of what has just happened and the hopefully forthcoming Congressional part.


The UK is acquiring the P8s under an arrangement known as Foreign Military Sales. This is a process the US has established to share military capabilities with allies and partners and is governed by The Arms Export Control Act and the Foreign Assistance Act. To secure a sale under FMS, a government to government agreement is reached (although the negotiations can be complex, the letters that seal the deal are often straightforward) and the customer country then buys the equipment or service from the US government, not the manufacturer. This helps keep costs down for all as it allows us to benefit both from the sunk costs of research and development and from the economies of scale of joining a larger US order.

The actual way this process is managed is that the UK would typically submit a non-binding Letter of Request for Pricing & Availability – it's exactly as it sounds and allows a rough cost to be determined. If the decision to go ahead is made a Letter of Request for Offer and Acceptance (LOA) is sent and when this is returned, we have a limited time period to go ahead and buy, or to withdraw. It's similar to getting any price quote, only on a grand scale

Who is Involved?

The key organisations that make this happen in the US are the Defence Security Cooperation Agency, which administers and supervises all FMS cases on behalf of the Department of Defense. In the case of the P8-A, the

US Navy has primacy so the Navy International Programmes Office provides the Single Service oversight whilst the day to day negotiation and contracts are worked between the US Navy's Programme Management Office 290 and the UK's Defence Equipment & Support

Congressional Notification

For certain programmes, usually high value or ones that fall under the International Traffic of Arms Regulations, US Congress retains the final say and must approve the Foreign Military Sale. This approval comes right at the end of the process described above and means that subject to UK agreement and approval, the deal can go ahead!

Finally

Thanks for reading, please leave any feedback or questions and I'll try to get back to you.I'll write a separate piece on how the UK goes about procuring and approving new capabilities another time – there's only so much process anyone can read! I hope this has been useful in explaining how we're going about getting the P8-A and why this Congressional approval is so important. The process is very similar for anything we purchase through this route and if you want to find more detail, the DCSA guide to Foreign Military Sales is here.

 

 

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