Administration of Foreign Military Sales: Is the U.S. Government Recouping Full Cost

摘要

Foreign military sales (FMS) is a multi-billion dollar program providing for the sale of military equipment and services to foreign governments. Foreign countries are charged the direct costs of providing the equipment or services plus a surcharge to recover the indirect costs incurred to administer the program. These indirect or administrative costs relate to the logistical supply and procurement operations required to provide the material as well as costs to control the program and account for the funds. The primary focus of this paper is on the administrative costs and the factors that determine the proper charges to be included in that cost.