The Defense Security Cooperation Agency (DSCA), as part of the United States Department of Defense, provides financial and technical assistance, transfer of defense mat?riel, training and services to allies, and promotes military-to-military contacts. Security Cooperation (SC) is founded on a tradition of cooperation between the United States and other sovereign nations with similar values and interests in order to meet common defense goals. It consists of a group of programs authorized by the U.S. Foreign Assistance Act of 1961, as amended, and the Arms Export Control Act, as amended, and related statutes by which the U.S. Department of Defense (DoD) or commercial contractor provide defense articles and services in furtherance of national policies and objectives. Foreign military sales (FMS) and International Military Education and Training (IMET) are two key programs included within Security Cooperation. IMET is conducted solely on a grant basis. FMS can be conducted using cash or FMS Financing (FMF). FMS is managed and operated by DoD on a no-profit and no-loss basis. Countries participating in the program pay for defense articles and services at prices which recoup costs incurred by the United States. This includes a fee ($15,000 or 3.8 percent of item and service cost, whichever is greater) to cover the cost of administering the program.