Foreign Military Sales (FMS)

DLA Disposition Services is authorized to provide excess defense articles (EDA) to authorized Partner Nations through the Foreign Military Sales (FMS) Program. EDA is Defense Department (DoD) owned property that has been declared as excess by the U.S. Armed Forces. This excess equipment is offered at reduced cost to eligible customers or at no cost to eligible grant aid countries on an "as is, where is" basis.

The FMS program is overseen and directed by the Defense Security Cooperation Agency (DSCA) for the Under Secretary of Defense for International Affairs. DLA Disposition Services acts as an Implementing Agency (IA) on behalf of DSCA to write and manage cases for EDA.

Typical examples of property that FMS customers are eligible for includes spare parts and/or components, certain clothing items, basic field equipment, office equipment, supplies, furniture, medical equipment, or other non-Significant Military Equipment (non-SME). Significant Military Equipment (SME) such as tactical vehicles, may also be made available on a limited basis, when available. Items with an original acquisition value over $7M are also treated as SME and both have special reporting requirements to the U.S. Congress.

All available items are listed via RTD Web, which provides users the ability to view available inventory. DLA provides access to registered Partner Nations and members of the U.S. Security Cooperation community to view current inventory upon request.

To request property through the FMS program, the customer must have an implemented Letter of Offer and Acceptance (LOA) on file with DLA Disposition Services. The FMS office manages both Defined Line and Blanket Order cases (see definition below).

All FMS customers are charged for Packing, Crating, and Handling (PC&H), admin, and associated transportation costs. DLA Disposition Services is reimbursed for PC&H costs only.

For any questions, please contact the DLA Disposition Services FMS office at DLADispositionServicesFMS@dla.mil.

For questions concerning cataloging or FEDLOG subscription related FMS services for partner nations, please contact DLA Logistics Information Services (LOGINFO) at FMS at dlalogisticsinformationservicefms@dla.mil with any further questions.

Requesting Property

RTD customers save millions of dollars every year through the DLA Disposition Services reutilization program. A wealth of “ready-to-reuse” property is received daily by DLA Disposition Services, ranging from routine supply requirements to specialized equipment. By taking advantage of the reutilization program, customers can reduce procurement costs and enhance training requirements. Every dollar’s worth of property reutilized is a supply or maintenance dollar saved.

RTD Web is used by FMS customers to search for items during any Screening Cycle. Users requisitioning property must have an implemented DLA Disposition Services LOA on record, prior to submitting a MILSTRIP Requisition (DD Form 1348-1a).

In order to access RTD Web, customers first must create an account in AMPs.

FMS Cases

Each time a military service within an FMS eligible country submits a new Letter of Request (LOR), a new FMS case (or package) is developed. A current FMS case may be amended or modified depending on the type of change, such as addition or deletion of requirements or adding additional funding. Countries can have multiple cases at the same time. A case identifies the country, approved property, as well as any transportation and financial obligations. Cases can be open for many years and are only closed until a request is made by the customer, or when the case reaches ten (10) years of age.

Non-Significant Military Equipment (Non-SME)

Non-tactical items such as spare parts, basic field equipment, medical supplies, office equipment, etc., are considered non-significant military equipment. This category does not require trade security controls. Additionally, vehicles (rolling stock) cannot be requested on a Blanket Order case.

Property that the customer is requesting is specified by the case LOR. Each LOA identifies which Federal Supply Classes (FSC) a partner nation has been authorized to receive.

Property is requisitioned directly off RTD Web by the customers. Only the authorized FSCs are approved by the system. Once the requested property is approved in RTDWeb, it is immediately processed for shipment to the customer.

Significant Military Equipment (SME)

Tactical items such as weapons components, optics, certain aircraft parts, rolling stock (vehicles), fire control systems, are considered significant military equipment (SME).

Some major end items including aircraft are NOT available to FMS customers. LOR/EDA justification must be submitted and approved before any FMS freezes are authorized. Once approved, the partner nation has (up to) 6 months to freeze.

Defined Line Case Timeline

Pricing

EDA pricing is accomplished in accordance with DOD 7000.14 R, the Financial Management Regulation (FMR), volume 15, chapter 7. Customers are either Grant eligible or are considered to be a Sales customer, as determined by the U.S. Department of State.

Customers will pay a 3.2% admin fee for each case (based on the total case value)

Customers will pay a 3.5% Packing, Crating & Handling (PC&H) fee per item, which is returned to DLA Disposition Services.

Price Determination Example

Customer has requested a 5-ton cargo truck with an initial acquisition value of $74,450 and a condition code of F. How is the final cost determined for both Grant and Sales requisitions?

Grant Pricing Example

Grant eligible customers are charged for PC&H which is valued at 3.5% of the original acquisition value (OAV) of the property.

For the example requisition on the right:

$74,450 (OAV) x 3.5% (PC&H) = $2,605 Grant Price

Customers will also pay a 3.2% Admin charge (3.2% of the total case value) as well as any transportation related costs.

Sales Pricing Example

For sales requisitions, pricing is based on the original acquisition value and the condition code of the actual item. Condition codes of the property determines the current estimated value. Explanation of Condition Codes

Condition Code Multipliers:

Code A: 50%

Code B, C and D: 30%

Code E, F, and G: 20%

Code H: 10%

Other: 5%

For the truck example above:

$74,450 (OAV) x 20% (condition code F) = $14,890 Current EST Value

+$74,450 (OAV) x 3.5% (PC&H) = $2,605 PC&H
$17,495 Total EDA Sales Price

Customers will also pay a 3.2% Admin charge (3.2% of the total case value) as well as any transportation related costs.

Example Requisition

TRUCK, CARGO M923A1
NSN 2320-01-206-4087
Initial Acquisition Value $74,450
Condition Code F

EDA Letter of Request (LOR) Justification

Requests to provide a LOA are referred to as Letters of Request (LORs), whether provided through formal correspondence, signed meeting minutes, electronic mail (e-mail), letters, or messages. Although no specific format is required for an LOR, it must be in writing and partner nations are strongly encouraged to work with their IA Case Manager to ensure LORs address the required elements needed to prepare a case or take action. Customer are also required to complete the EDA Justification/LOR checklist which must accompany the LOR.

Additional LOR development and submission information can be found in the Security Assistance Management Manual (eSAMM)

Documents:

Frequently Asked Questions

Q: How can partner nations request property from DLA Disposition Services?

A: Partner Nations wishing to open a case must submit a Letter of Request (LOR) to the DLA Disposition Services FMS Office through their host nation Security Cooperation Officer (SCO). The LOR must include, at a minimum, the articles being requested, Delivery Term Code (DTC) which determines the shipping method, the type of assistance being used to fund the case, as well as justification for the items. More detailed instructions on LOR preparation may be found in the DSCA Manual 5105.38-M, Security Assistance Management Manual (SAMM). SCOs act as a liaison between the partner nation and the DLA Disposition Services Case Manager for the lifecycle of the case. Please email the FMS office with additional questions.

Q: What is the timeline to open a case for Excess Defense Articles (EDA) through DLA Disposition Services?

A: The timeline varies based on the property being requested, the overall value of the case, and many other factors. Customers should expect to wait AT LEAST 6-8 months after submitting the LOR package before receiving the offered Letter of Offer and Acceptance (LOA).

Q: How can customers access DLA Disposition Services EDA Inventory?

A: The DLA Disposition Services active inventory is maintained in a web-based system. Customers (or the SCO or designated representatives) are encouraged to register for access and are granted permissions based on their case status. Customers may request “read-only” access if they are unsure of the type of property that is available or do not have an implemented case. Once a case is implemented, it is the customer’s responsibility to search for and submit requisitions against implemented cases.

Q: Can property found on the inventory be held for a partner nation while a case is pending approval?

A: No. DLA Disposition Services can no longer hold property in anticipation of a future case.

Q: What are the most common types of property acquired by partner nations?

A: Medical supplies and equipment, vehicles and trailers, material handling equipment, forklifts, aircraft parts and components, vehicle parts and components, tents, containers, camouflage netting, and much more.

Q: Are there restrictions associated with what can be acquired?

A: Yes. DLA Disposition Services FMS cannot provide weapons, construction equipment (i.e. dump trucks, generators, compressors, scrapers, graders, bulldozers), body armor, helmets, certain uniform items, or aircraft (aircraft parts may be requested).

Q: Are there costs associated with acquiring property from DLA Disposition Services?

A: Yes. There are costs associated with all EDA cases through DLA Disposition Services in accordance with the DoD 7000.14-R, Financial Management Regulation. If a country is EDA Grant eligible, they are responsible for paying the Packing, Crating and Handling (PC&H) at 3.5% of the original acquisition value of the property. If a country is not EDA Grant eligible, they must pay for the EDA at a current estimated value, based on condition code, as well as PC&H at 3.5% the original acquisition value. Each case has an additional administration fee (currently 3.2% of the total case value) as well as any associated transportation costs. All transportation costs must be paid by the customer and will be added onto the LOA, unless using a Freight Forwarder (DTC 4).

Q: Can partner nations use an implemented MILDEP (USASAC, AFSAC, NIPO, etc.) FMS case to acquire property from DLA Disposition Services?

A: No. DLA Disposition Services cases can only provide EDA that is in our inventory. Likely, MILDEP IAs cannot provide DLA Disposition Services EDA inventory on their FMS cases.

Q: The MILDEP declared property as excess (EDA), but still retains title/ownership. Can this be acquired through DLA Disposition Services?

A: No. DLA Disposition Service can ONLY provide property that has been declared as excess by the MILDEP and then transferred to DLA Disposition Services for disposal. The MILDEP can write cases for and provide EDA the same as DLA Disposition Services.