Defense Trade: Decision to Lower FMS Administrative Fee is Premature
NSIAD-99-161R
Published: May 13, 1999. Publicly Released: May 13, 1999.
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Highlights
Pursuant to a congressional request, GAO reviewed the Defense Security Cooperation Agency's (DSCA) decision to lower the Foreign Military Sales (FMS) program's administrative fee from 3 percent to 2.5 percent, focusing on how the: (1) FMS program recovers its costs, as required by the Arms Export Control Act; and (2) projected sales levels made through the program will affect cost recovery in the future.
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Administrative costsDefense cost controlFeesForeign military salesForeign military sales costsFuture budget projectionsManagement reengineeringAdministrative feesWeaponsAgency evaluations