Offices and People · 2 of 3
A defense company arriving in a partner country to market equipment usually assumes the commercial section of the embassy is its contact. It is not. "The SCO, rather than the Commercial Attaché, is the principal point of contact (POC) in U.S. missions for most U.S. defense industry representatives marketing defense equipment" (SAMM C2.1.8.1).
The support given is real and bounded at the same time. "SCOs support the marketing efforts of U.S. companies while maintaining strict neutrality between U.S. competitors. The SCO facilitates the flow of U.S. systems information, subject to releasability and export licensing considerations, while avoiding advocacy of a program with a specific U.S. producer" (SAMM C2.1.8.1).
Those two obligations pull against each other, and most of the rest of this area is about how the line is held.
Six categories of unclassified information may be supplied on request, subject to resources and to how sensitive the host country is about the data (SAMM C2.1.8.2). They are more useful than they sound.
Neutrality applies between American suppliers, not between countries. "The SCO must maintain neutrality between U.S. competitors. When more than one U.S. competitor is involved, the SCO should explain to host country personnel why a U.S. system would be to the country's advantage" (SAMM C2.1.8.5).
A company can learn something about the field without learning anything about a rival. "If asked by a representative of one U.S. company, the SCO can acknowledge whether and when other U.S. vendors have come through the country but should not divulge any marketing strategy or other proprietary information of any U.S. competitor" (SAMM C2.1.8.5).
Where there is only one supplier, the rule relaxes. "In cases where it is clear that there is only one U.S. source or producer marketing a system, the SCO may generally endorse a specific American product to the host Government" (SAMM C2.1.8.5). The office may also ask the agency whether the department can actively support a specific sale.
On the choice between the two procurement routes the position is hands-off. Unless the host country asks for a government sale, the department "tries to accommodate the U.S. contractor's preference for DCS" and normally "does not provide price quotes for comparison of FMS to DCS" (SAMM C2.1.8.6). The two routes may differ in delivery schedules, modifications, spares and training, "and the recipient should exercise caution in comparing FMS and DCS data". The comparison is drawn out in government sale or direct commercial sale.
There is a notice period, and it is longer than most companies plan for. "Thirty days in advance of initial visits, defense industry representatives should provide SCOs: a synopsis of equipment and services proposed for sale; current export license information, including restrictions and provisos; dates of planned in-country travel; non-proprietary information already provided to the host country, or other contacts concerning this equipment or service; and specific support (briefings, appointments) requested" (SAMM C2.1.8.4).
Companies are asked to close the loop on the way out. Representatives "should also brief SCOs before departing the host country" (SAMM C2.1.8.4), and the office chief answers later inquiries about host country reactions (SAMM C2.1.8.7).
Some countries have agreements giving mutual access to each other's defense markets, covering research, production, procurement and logistics. Where one exists, the office is expected to know the host acquisition system and, with the commercial attaché, to have "a process for obtaining procurement information on bid solicitations" (SAMM C2.1.8.3).
Timing is the substance of the obligation. That information "should be obtained at the same time as bid solicitations are provided to in-country suppliers" (SAMM C2.1.8.3). Late notice of a tender is a defect in the agreement rather than bad luck.
Compliance is monitored from both ends. The office may suspect unequal access, or a company may supply information suggesting the agreement is not being honored. It then works with the commercial attaché to resolve the matter and to advise host country procurement officials and the relevant American offices (SAMM C2.1.8.3).
Two other mechanisms shape what eventually appears in a request.
The first assesses a requirement in place. "When requested by a country, Security Assistance Survey Teams are organized to conduct surveys in-country to review military capabilities and to make recommendations for meeting security cooperation (SC) objectives" (SAMM C2.4.1). They are paid for by the partner: the teams "generally are funded by a Foreign Military Sales (FMS) case and can include a combination of USG personnel, representatives of the host nation, and commercial contractors". Four kinds exist, covering defense requirements, sites, general studies and engineering assessments.
A related capability is deployed rather than requested. Requirements generation teams augment commands and offices in country, "translating partner nation capability needs into well-defined and specific requirements for use in the preparation of high-quality partner nation Letters of Request (LORs)" (SAMM C2.4.2.1). Such a team "is neither synonymous with, nor a replacement for, Security Assistance Survey Team" (SAMM C2.4.2.4).
The second mechanism runs the other way, from the seller to the buyer. "Materiel Notices inform countries of events that impact their ability to acquire or support an item through Foreign Military Sales (FMS). They normally call for submission of a Letter of Request (LOR) officially requesting the items or associated support" (SAMM C2.5.1).
They are issued for two situations, both of them closing windows: "when U.S. production of an item is scheduled to end, or the United States is making a periodic buy of items that may have foreign demand" (SAMM C2.5.1). Each carries a deadline for receiving a request and a final date for accepting the resulting offer. A notice of this kind is the last easy chance to buy something, and treating it as routine correspondence is expensive.
| Strict neutrality | The rule between American competitors, which does not apply between countries. SAMM C2.1.8.1. |
|---|---|
| Thirty day notice | The information a company should send before an initial country visit. |
| Reciprocal procurement agreement | An arrangement giving mutual access to each other's defense market. |
| Survey team | A partner-funded team assessing capability and recommending solutions. |
| Materiel notice | A warning that a production line is ending or a buy is being made, with a deadline. |
Every statement above links to the document behind it. The full source list for this piece is on the sources page.
This page describes public United States government programs for general information. It is not legal, regulatory or procurement advice, and it does not address the facts of any particular case.
Marketing a capability is one problem; delivering it somewhere difficult is another. Sentfore provides secure movement, protective security, accommodation and site support for defense programs in complex environments, and its principals have worked on overseas defense and security programs. Requirements can be sent through the contact page.