The Defense Department Continues to Subsidize The Foreign Military Sales Program By Not Charging for Normal Inventory Losses

Abstract

Concerning the recovery of normal inventory losses on sales of inventory items to foreign governments, determine (1) the nature of inventory losses, (2) if Defense is properly charging foreign governments for inventory losses on sales of nonstock fund items sold under supply support arrangements, and (3) whether the Arms Export Control Act should be further amended to require the recovery of inventory losses on sales of nonstock fund items not covered by supply support arrangements. (Nonstock items are generally reparable and nonexpendable items, such as engine motors or generators. Undersupply support arrangements, items are provided, in effect, on a prepaid basis since foreign governments are required to invest in Defense's inventories.)

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Document Details

Document Type
Technical Report
Publication Date
May 15, 1979
Accession Number
AD1101913

Entities

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Weapons Technologies

DTIC Thesaurus Topics

  • Accounting
  • Agreements
  • Air Force
  • Air Force Facilities
  • Aircraft Engines
  • Aircrafts
  • Airlift Operations
  • Computer Programs
  • Congress
  • Department Of Defense
  • Export Controls
  • Exports
  • Flight Training
  • Foreign Military Sales
  • Government (Foreign)
  • Governments
  • Inventory
  • Jet Aircraft
  • Law
  • Logistics
  • Military Personnel
  • Money
  • Training
  • United States

Readers

  • Defense Financial Management and Audit.
  • Government Contracting/Procurement.
  • Logistics and Supply Chain Management.