Foreign Military Sales: DoD Should Strengthen Oversight of Its Growing Transportation Account Balances
Abstract
Why GAO Did This Study. The FMS program is one of the primary ways the U.S. government supports its foreign partners, by annually selling them billions of dollars of items and services. According to DOD, the FMS program is intended to operate on a "no profit, no loss" basis, with purchasers not charged excessive fees and fee revenue covering operating costs. Foreign partners can arrange for their own transportation of FMS items or pay DOD a transportation fee to cover the costs of DOD transporting them. The fees are collected into transportation accounts in the FMS Trust Fund. House Report 114-537 and Senate Report 114-255 included provisions that GAO review DSCA's management of FMS fees. This report examines (1) the balances of the FMS transportation accounts for fiscal years 2007 through2018, (2) DSCA's management oversight of the accounts, and (3 )DSCA's processes for setting transportation fees. GAO analyzed DOD data and documents, and interviewed DOD officials.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 2019
- Accession Number
- AD1152886
Entities
People
- Jason Bair
Organizations
- United States Government Accountability Office