The FMS process has specific phases and time limits.
| Phase | Time limit | Description |
| Preliminary Phase | Indefinite | The Customer determines their procurement requirements. The Customer obtains specific systems information from multiple sources, including the potential Vendors. |
| Definition Phase | Indefinite | Customer and U.S. DoD exchange technical information. The DoD may contact the potential vendor for additional information. |
| Request | Indefinite | Customer prepares and submits a Letter of Request (LOR). |
| Development of Offer | USG has 120 days to respond to LOR Congressional review may take 15 – 50 additional days. | The DoD Implementing agency receives the LOR and develops price and availability (P&A) data or a Letter of Offer and Acceptance (LOA). The DoD offices gain necessary USG and Congressional approvals. The DoD issues Letter of Offer and Acceptance (LOA) to the Customer. |
| Acceptance of the Offer | Customer has 60 – 85 days to accept LOA. | The Customer signs the LOA and returns it to the DoD with their initial deposit. |
| Implementation | 15 days average to open active case | The DoD offices issue obligational authority (OA) and implementing directive (the official procurement notification to the Vendor). The DoD activates FMS computer software for case management. |
| Execution | Depends on delivery schedule established in LOA | The Customer completes payment according to schedule established in LOA. The Vendor delivers goods according to schedule. |
| Reconciliation and Closure | 2 years after final delivery | The DoD and the Customer reconcile records. The DoD sends closure certificate and issues final bill to the Customer. |
Notes and abbreviations:
- U.S. DOD – U.S. DOD refers to any U.S. military office. There are various DOD offices involved in the FMS process.
- Vendor – the Vendor refers to the U.S. defense company seeking to sell their product overseas.
- Customer – the Customer refers to the Foreign Government purchaser of the U.S. defense products.
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