Bundeswehr/Benny Rudloff

The procurement of military equipment is often a lengthy process. The United States Foreign Military Sales Program, FMS for short, facilitates and accelerates international partners’ access to modern US Weapon systems. The German Armed Forces (Bundeswehr) has chosen this system for the procurement of the P-8A maritime patrol aircraft. How does the FMS work?

Foreign Military Sales is a program of the US government, through which friendly states can acquire US military equipment. This can be either goods from the US Armed Forces, or contracts are negotiated with manufacturers. Unlike direct procurement from a company, the partner state does not deal directly with the manufacturer, but with the US. This in turn buys the desired product from US industry – in this case Boeing – and passes it on to those who place the order.

This means that the US plays a kind of intermediary and guarantor role. It ensures transparent prices, secure contract processing, and ensures that the systems delivered meet the same standards as those of the US Armed Forces.

The process of FMS can be illustrated using the example of the P-8A Poseidon maritime patrol aircraft for the German Navy.

Requirements Assessment and Request

Even before exhausting the modernization possibilities of the existing fleet of P-3C Orion maritime patrol aircraft and reducing their service life, the German Armed Forces (Bundeswehr) determined that these aircraft needed to be replaced. The German government then approached the US with a request to consider the P-8A Poseidon as a successor model via FMS. The capabilities of the P-8A, as it rolls off the production line, were compared with the requirements of the German Navy. The P-8A Poseidon meets 90 percent of these requirements ex works.

Letter of Request

The first formal step at the FMS is a “Letter of Request.” In it, the ordering state describes what equipment, services, and support are required. For the Poseidon, this includes not only the aircraft itself, but also spare parts, simulators, documentation, accessories, equipment, training programs, and tools. On this basis, the US whether it will accept the application at all.

Letter of Offer and Acceptance

Based on the Letter of Request , the US government then submitted a detailed offer – the ” Letter of Offer and Acceptance.” This document contains the exact specifications, prices, and delivery deadlines. It is a contract offer ready for signature and subject to a strict time limit. This was then submitted to the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support ( BAAINBw) .Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support, for the first five machines on June 20, 2021.
Congressional Participation USA

For larger projects, the US Congress approves the deal. This provides additional oversight and political backing within the United States. The Poseidon procurement was also reviewed and approved within this framework. Approval took place in spring 2021.

Contract implementation

for FMS Military Sales. There are fixed rules between governments that are non-negotiable. The US-Government thus acts on the one hand as a contractor, supported by the US-Navy, on the one hand, and as a client to Germany, on the other hand, as a customer to the industry. In the case of the P-8A Poseidon, this is Boeing. Boeing produces the aircraft and delivers them according to the contractually agreed terms. At the same time, training and maintenance packages are being prepared for the Bundeswehr. Industrial maintenance will later be primarily carried out by two German companies in collaboration with Boeing.
Delivery

The first aircraft will then be delivered to the German Navy. Pilots and crew have already been trained in advance. Crews and technicians are currently being trained in the USA so that the aircraft will be operational quickly. Training will then take place later in Germany.

Advantages of the FMS Military Sales-process

The P-8A Poseidon over FMS Military Sales was the only way to obtain a sufficiently powerful platform with the required capabilities in a timely manner and without major capability gaps until the P-3C Orion was decommissioned .

By using existing US Contracts and standards can shorten procedures and thus accelerate procurement, which is particularly evident in the case of the P-8A Poseidon. Through the guarantees of the US-Government in terms of price and performance results in a high level of security for the procuring nation.

Another advantage: interoperability. Many partner nations, such as Norway, New Zealand, Australia, the United Kingdom, and later Canada, will receive largely identical equipment: All P-8A buyers have procured it without any national adaptations. This not only strengthens cooperation in joint missions but also facilitates the exchange of technology, procedures, and logistics on all sides – a plus for joint NATO Atlantic Treaty Organization-Deployments. Maintenance and the procurement of spare parts, as well as training, are also included, providing planning security.

The Poseidon as an example of efficient procurement

With the purchase of the P-8A Poseidon, the Bundeswehr has not only received a modern and proven maritime patrol and submarine warfare aircraft, but has also demonstrated that international arms procurement via the FMS Military Sales-process can run smoothly. While other projects often take many years to deliver, the first aircraft will soon be flying into Nordholz.

The handover to the BAAINBw (Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support) in Seattle took place recently. “Together with our NATO we must successfully ensure deterrence and defense for our allies,” emphasized the Inspector of the Navy, Vice Admiral Jan Christian Kaack. “This tremendous progress, the successful multinational and military-industrial cooperation, and the expected capabilities give me confidence that we can master what, in my experience, are such complex procurement projects.”

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