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Does the prime who has been awarded a contract or delivery order over $700k have to submit the individual subcontract report (ISR) and the summary subcontract report (SSR) in eSRS? These are hybrid contracts supply/services, supply mainly built in the US and services mainly done in the US.
Answer
It seems the reason for not using eSRS has nothing to do with the fact this is FMS; it's based solely on whether or not the contract is or is not being funded with non-appropriated funds.

Rationale:
If it were using appropriated funds then the citation to focus on would be DFARS 225.7301(b); which basically says: "Do FMS contracts like you'd do other defense contracts."
I found no exceptions in FAR parts 19, 25, and 44 or DFARS 219, 225, and 244 for FMS contracts. So, it would appear they would need to use eSRS.

However, if it really is a contract that is not using appropriated funds... Then our citation would be FAR 2.101 and the definition of a "contract". Notice the phrase “an expenditure of appropriated funds” embedded within the definition. If NAF, then the FAR and DFARS and Agency Supplements will not apply. Check DoDI 4105.67 Nonappropriated Fund (NAF) Procurement Policy and Procedure or service component regulations and policy on FMS. These could mention something about the requirement for reporting in eSRS, but doubtful.

A few more details might be required because I would imagine we are NOT talking a run of the mill post-camp-station NAF program here. It's more likely this is some kind of revolving, or supply fund, etc. Those need to be approved at high levels (like DoD Comptroller). In my experience, one of the ways they get approved is BECAUSE the fund managers agree to follow the FAR and agency supplements. If that's the case, eSRS should be used unless another exception unique to their situate but not because it is associated with a FMS contract exists.

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