Foreign Military Sales

The United States has sold sensitive military items through the foreign military sales program over the years because the items are presumed by some to be better controlled by the programs than through direct commercial sales. The U.S. government relies on a complex process with many participants to determine which technology may be transferred as part of a sale through the program. The U.S. government has not established a process for ensuring that certain controlled items are fully and systematically identified when reviewing requests or approving agreements under the program. As a result of weaknesses in the review process, items controlled by an international missile nonproliferation agreement have been transferred under the program without proper review and approval. The Defense Department's proposals to reform the program now focus on reducing the time for making technology transfer decisions.

GAO noted that: (1) the U.S. government relies on a complex process with many participants to determine what technology may be transferred as part of a sale through the Foreign Military Sales program; (2) technology transfer decisions begin with an interagency National Disclosure Policy Committee process; (3) when making overall policy decisions, the committee provides authority for the government to transmit classified information associated with military items but does not approve the actual transfer of those items; (4) it does not typically address whether systems must be sold through the Foreign Military Sales program or a direct commercial sale; (5) the committee has a process for reviewing exceptions to the National Disclosure Policy; (6) within the National Disclosure Policy framework, separate organizations within the military departments recommend whether the requested items under their jurisdiction may be sold and manage the sales; (7) the U.S. government has not established a process for ensuring that certain controlled items are fully and systematically identified when reviewing requests or approving agreements under the Foreign Military Sales program; (8) as a result of weaknesses in the review process, items controlled by an international missile nonproliferation agreement have been transferred under the program without proper review and approval; (9) as structured, DOD's proposals to reform the Foreign Military Sales program are primarily focused on reducing time for making technology transfer decisions; (10) in considering DOD's efforts to shorten the processing time, officials acknowledge the need to properly assess the national security risks and benefits of proposed transfers; (11) a DOD and industry working group proposes more rigorously implementing requirements to make technology transfer assessments early in the planning of a weapon program; and (12) such assessments are a means of expediting technology transfer decisions when responding to foreign customers' requests.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: Team: Phone: