A new “term of sale” opens the doors to more nations that want to approach the United States about foreign military sales, and that makes the U.S. more competitive in seeking partnerships, the director of the Defense Security Cooperation Agency said.
Just last year, DSCA created the “risk assessed payment schedule,” or RAPS, term of sale, which offers more nations better opportunities to acquire U.S. military hardware through foreign military sales, Heidi Grant said today in an online discussion during the ComDef 2020 conference, a virtual conference providing insights and perspectives on issues facing the international defense communities.
“[This is for] countries that are on the cusp of what people are familiar with, dependable undertaking,” Grant said. “This is a new financial opportunity, so we can be more competitive … and we’ve approved already three countries for this RAPS opportunity. One of them has actually acted on it. And we won a competition out there, I would say, because of this financial opportunity.”
Some nations interested in FMS may qualify as “dependable undertaking,” which means those countries have been evaluated as most likely to be able to meet financial obligations made as part of their FMS request.
Nations not able to meet qualifications for dependable undertaking, or that are only on the cusp of meeting those requirements, have, in the past, been able to engage in FMS using “cash with acceptance,” which requires they pay in full for their FMS purchase at the time the sale is approved.
For nations that are approved