Foreign Military Sales and Direct Commercial Sales as Alternatives and Possibilities to be Combined in Defence Acquisition Cover Image
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Чуждестранни военни продажби и директни търговски продажби като алтернативи и възможности за комбиниране при отбранителната аквизиция
Foreign Military Sales and Direct Commercial Sales as Alternatives and Possibilities to be Combined in Defence Acquisition

Author(s): Desislava Yosifova
Subject(s): Social Sciences, Economy, Education, National Economy, Supranational / Global Economy, Vocational Education, Adult Education, Higher Education , State/Government and Education, Inclusive Education / Inclusion, Socio-Economic Research, Distance learning / e-learning
Published by: Военна академия „Г. C Раковски"
Keywords: FMS program; direct commercial sales; DCS; acquisition; combined approach

Summary/Abstract: In this paper, attention is focused on the need to conduct a comprehensive comparative overview, and on that basis a comparison of the procurement of defence products/services from the US through the two main approaches perceived as alternatives (under the Foreign Military Sales (FMS) programme and the traditional manner using Direct Commercial Sales (DCS). Regarding acquisition under the FMS programme, its rules of functioning and administration have a deep impact on the management, spending, execution and budget reporting for both types of customers: at the level of customer countries and at the level of customer international organisations (e.g. relevant NATO entities performing such procurement). This is insofar as the rules imposing large periodic advance payments drive ‘inconsistencies’ throughout the process (up to the point of effective actual delivery of the assets from the US), in the direction of modifying the fundamental accrual principle into a modified cash basis. A major striving in this paper is to provide a structured view with appropriately selected criteria by which countries and international organizations that are potential commercial customers of the U.S. military industry can navigate in making a choice between the two alternatives for acquiring defence products/services.

  • Issue Year: 131/2024
  • Issue No: 1s
  • Page Range: 54-67
  • Page Count: 14
  • Language: Bulgarian