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New US DSCA framework to bolster foreign military sales

New US DSCA framework to bolster foreign military sales

The Defense Security Cooperation Agency has created a new term of sale, which director Heidi Grant expects to open the door to more foreign military sales.

The Defense Security Cooperation Agency has created a new term of sale, which director Heidi Grant expects to open the door to more foreign military sales.

The Defense Security Cooperation Agency (DSCA) has created a new risk assessed payment schedule (RAPS), which according to director Heidi Grant said would offer more nations better opportunities to acquire US military hardware.

"[This is for] countries that are on the cusp of what people are familiar with, dependable undertaking," Grant said.

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"This is a new financial opportunity, so we can be more competitive ... and we've approved already three countries for this RAPS opportunity.

“One of them has actually acted on it. And we won a competition out there, I would say, because of this financial opportunity."

In the past, nations not able to meet qualifications for ‘dependable undertaking’ – referring to their capacity to meet financial obligations were required to pay in full for their purchase at the time the sale is approved.

However, as part of the new arrangement, such nations would be required to agree to alternative payment schedules, including paying a deposit that amounts to 100 per cent of the cost of terminating their agreement.

In FY 2019, DSCA had oversight of 14,700 foreign military sale cases, executed $55.4 billion in arms sales, and worked with over 160 countries.

However, Grant noted that weapons sales are not the sole focus of the DSCA.

"Foreign military sales often seems to be the focus when people talk about DSCA — that's what we're most well-known for," she said.

"But we provide much more than just defence equipment to our allies and partners.

“Security co-operation includes international military education and training, advising on defence doctrine, rule of law, human rights, civilian harm mitigation, and other institutional capacity-building programs."

[Related: DSCA approves Australia for international AMRAAM acquisition]

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