Cooperative Logistics Supply Support Arrangement Pricing Relationships Between Programmed and Nonprogrammed Requisitions

摘要

The United States Government participates with friendly countries in Foreign Military Sales (FMS) arrangements to enhance its objectives of peace and security. The Department of Defense usually will complete FMS contracts only after insuring that the foreign customer has adequately considered logistical support for the weapon systems sold. Supply Support Arrangements (SSA) are negotiated to provide this follow-on logistical support to countries who invest and participate in the U.S. defense logistics system. Under this arrangement, foreign governemnts are required to put up advance equity funds equal to a stated portion of the inventory items to be purchased for their needs. This causes items in the SSA to become programmed for foreign customers and should result in lower prices based on advanced procurement, shipments by the Item Manager below the control level, and exclusion of replacement pricing for programmed requisitions. The purpose of this thesis was to determine if a significant difference exists in final billing prices for programmed versus nonprogrammed Cooperative Logistics Supply Support Arrangement (CLSSA) requisitions and if prescribed pricing procedures were being implemented effectively. (Author)