Can you please clarify where 1206 programs fall?
1. Non-Defense Items - Dept. of Commerce
2. Defense Items sold thru Direct Commercial Sales - Dept. of State (DDTC)
3. Defense Items sold thru Foreign Military Sales (FMS) - Defense Security Cooperation Agency (DSCA).
1206 projects are funded, vetted by DoD/DoS/Embassy/COCOM etc. I believe therefore that 1206 is a "psuedo" FMS and not under same DDTC ITAR restrictions as Direct Commercial Sales (TAAs, DSP-5s, etc.). I need some documentation/policy to back this up. My DDTC rep agrees that 1206 is probably FMS but can't provide me with policy or a DSCA POC to help clarify. SPAWAR contracting also feels that this falls under FMS but says if the contractor wants to submit ITAR paperwork, it is volutary (again, opinion, no policy). So I may go thru massive ITAR paperwork drill for nonmilitary COTS items, while contractor providing same host nation with REAL weapon systems under FMS is not.
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This answer is from DISAM - Defense Institute for Security Asssistance Managment. See www.disam.dsca.mil
To begin, DISAM cannot provide licensing direction or advice. To obtain official licensing direction, you need to contact DoS/DDTC.
Our textbook avail at: http://www.disam.dsca.mil/DR/greenbook.asp
provides some background on your question. Chapter 1 discusses the various legal authories. 1206 is discussed on page 1-9. 1206 is executed through a process referred to as "pseudo-FMS". This process is described in Chapter 6, starting at page 6-4. Typically, under a pseudo-FMS situation, you as a contractor are selling to the USG. The USG accepts & takes title from the contractor then transports and transfers title to the equipment in the destination country. If you are working on a DoD contract, I recommend you contact the USG contracting officer for clarification.