What is an FMS Contract and a DSP-94

What is an FMS Contract and a DSP-94

An FMS contract is an agreement between the Unied States and a third party such as a U.S Corporation to provide military related services or goods to foreign countries.

In addition to complying with the terms of the contract, the third party must be in compliance with ITAR exporting regulations, which include getting Department of Defense approval which must be sought using form dsp-94 and regulated via pm/rsat.

Indeed following the correct process and procedures is absolutely necessary, as, in addition to hefty fines, criminal liabilities are likely on significant violations. Ignorance of the law is no excuse.itar, fms, ddrc, compliance, dsp-94

When you budget your rfp, you should budget about 10% in administrative and legal compliance expenses, specially if you dont already have an Itar compliance program, and a compliance officer in place. For contracts over one Million, budget 1.5% costs for each additional Million.

When maneavering through the DOD regulatory landscape, make sure you have proper and experienced legal consult who can assist you and provide proper opinion letters to protect you and your company’s interest.

 

 

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