What is Obligational Authority in Foreign Military Sales?

The sum of (1) budget authority provided for a given fiscal year, (2) balances of amounts brought forward from prior years that remain available for obligation, and (3) amounts authorized to be credited to a specific fund or account during that year, including transfers between funds or accounts.

The military department or defense agency responsible for the execution of military assistance programs. With respect to FMS, the military department or defense agency assigned responsibility by the Defense Security Cooperation Agency to prepare an LOA and to implement an FMS case. The implementing agency is responsible for the overall management of the actions that will result in delivery of the materials or services set forth in the LOA that was accepted by a foreign country or international organization.

A process, authorized by the Arms Export Control Act, through which eligible foreign governments and international organizations may purchase defense articles, services, and training from the United States Government.

The legal instrument used by the USG to transfer itemized defense articles, defense services, and design and construction services to foreign partners.

When used under the authorities provided in the Arms Export Control Act for Foreign Military Sales, the LOA is a binding agreement signed by the USG and the foreign partner to transfer such articles and services.

When used under Building Partnership Capacity (BPC) authorities, the BPC LOA is not signed by the Benefitting Partner.

Funds that are required to cover outlays and/or deliveries that are anticipated to occur before the receipt of the first quarterly payment. These funds must accompany the accepted Letter of Offer and Acceptance.

A Department of Defense element that is part of the United States Diplomatic mission located in a foreign country to carry out security assistance and security cooperation management functions under the supervision and coordination authority of the senior defense official/defense attaché.

A USG Letter of Offer and Acceptance (LOA), and any subsequent Amendment or Modification, that is the legal instrument used by the USG to transfer defense articles and defense services under the FMS program. See also "FMS" and "LOA."

A group of programs authorized by federal statutes by which the United States provides defense articles, military training, and other defense-related services by grant, lease, loan, credit, or cash sales in furtherance of national policies and objectives, and those that are funded and authorized through the Department of State to be administered by Department of Defense/Defense Security Cooperation Agency, which are considered part of security cooperation.

A financial system providing DoD-level financial management functions for the security assistance (SA) program. This includes centralized Foreign Military Sales (FMS) trust fund accounting, foreign customer billing, and financial management reporting. DIFS consolidates FMS data from the Army, Navy, Air Force, and other implementing agencies, and provides efficient accountability for oversight of the financial and program management aspects of SA.

One of the departments within the DoD created by the National Security Act of 1947, as amended. The Military Departments are: the Department of the Air Force, the Department of the Army, and the Department of the Navy.

Undefined requirements lines with MASL “R9B 079200N0NSPRQ, Non-Specific Requirements” that can be included on Foreign Military Sales cases when requested by or coordinated with the purchaser as a holding place for funds budgeted but not yet programmed. Non-Specific Requirements lines cannot be used to requisition items or to provide services, are written with Source Code “S” (stock), and only utilize national funds. Non-Specific Requirements lines are written without a defined period of performance.

List of dollar amounts and when they are due from the foreign customer. The payment schedule is included in the Letter of Offer and Acceptance (LOA) presented to the customer. After acceptance of the LOA, the payment schedule generally serves as the basis for billing to the customer. Changes in the estimated costs of an Foreign Military Sales case may require changes in the accompanying payment schedule.

The financial value of delivered articles and services and incurred costs reported to DFAS-IN via Delivery Transactions. Incurred costs represent disbursements for which no physical deliveries have yet occurred. Examples are: progress payments to contractors, GFM/GFE provided to contractors, and nonrecurring costs.