Purpose
The purpose of Policy Notification (PN)-143 is to inform Acquisitions Program (AP) contracting officers of Supply Manual updates to the Foreign Military Sales (FMS) processes outlined in Chapter 9.15.
Effective date
This policy notification is effective immediately.
Background
The Foreign Military Sales (FMS) program is a form of security assistance authorized by the United States Government’s (USG’s) Arms Export Control Act (AECA) that allows allies of the United States (US) to procure export controlled defence goods and services of US origin.
Executed by the US Department of Defense (DoD), the FMS program enables Canada to acquire defence goods and services that are export-controlled from the United States Government (USG) through a government-to-government agreement referred to as Letter of Offer and Acceptance (LOA).
The FMS program is a mutually beneficial government-to-government method for the procurement of export-controlled US defence articles and services. Responsible arms sales furthers US national security and foreign policy objectives by strengthening bilateral defence relations, which support coalition building, and enhance interoperability between US forces and military partners and allies. In the case of purchasing countries, FMS allows access to otherwise controlled technologies, and extensive US supply chains. Leveraging the US procurement regime may also offer savings through economies of scale, procurement risk mitigation, and additional oversight.
As the sole delegated Contracting Authority for FMS acquisitions, PWGSC Washington Sector [PWGSC (W)] is responsible for entering into government-to-government agreements with the US Department of Defense (DoD). PWGSC (W) is responsible for entry into agreement, amendment, transportation, contract management, and monitoring US policy changes related to FMS acquisitions.
Overview
This policy notification provides an update to the processes outlined within the Supply Manual for FMS acquisitions. The summary of the changes made are as follows:
- Section 2.30.1 Funding of the Supply Manual has been amended to provide Clients with an option to submit requisitions for FMS acquisitions in United States Dollars (USD). Given all FMS government-to-government agreements are in USD this amendment will provide PWGSC (W) with sufficient funding to manage agreements throughout their duration, and provide Clients with the ability to manage any exchange rate fluctuations in house.
- FMS acquisition processes have been updated to accurately reflect day-to-day processes. PWGSC Headquarters [PWGSC (H)] contracting officers are requested to seek advice from PWGSC (W) on new acquisitions that may involve procuring goods or services through the US FMS Program.
- Third Party Transfer (TPT) processes have been added to provide clients and PWGSC contracting officers with guidelines on how to proceed.
- The difference between FMS and Direct Commercial Sales (DCS) has been added.
Summary of changes
In support of PN-143, the Supply Manual has been updated. For more details, refer to the Affected Supply Manual sections listed below.
There were no changes to the SACC manual.
Contact information
Questions related to Foreign Military Sales acquisitions may be directed to PWGSC Washington Sector at the following address: TPSGC.PAWSHDCBDG-APWSHDCDGO.PWGSC@tpsgc-pwgsc.gc.ca.
Questions regarding to the Supply Manual can be sent by email to the following email: TPSGC.PASPSPublications-APSPSPublications.PWGSC@tpsgc-pwgsc.gc.ca.