Foreign Military Sales: Controls Should Be Strengthened to Address Substantial Growth in Overhead 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 providing them with defense equipment and services. The program charges FMS customers overhead fees to cover the U.S. governments operating costs. They include the administrative fee for costs such as civilian employee salaries and facilities, and the CAS fee for the cost of contract quality assurance, management, and audits. In 1989, Congress excluded from administrative expenses certain costs associated with military personnel who work on the FMS program as well as unfunded civilian retirement and other benefits. As of May 2018, the administrative fee rate is 3.5 percent ,and the CAS fee rate is 1.2 percent.

Open PDF

Document Details

Document Type
Technical Report
Publication Date
May 01, 2018
Accession Number
AD1155053

Entities

People

  • Thomas Melito

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Biomedical
  • Human Systems
  • Materials and Manufacturing Processes

DTIC Thesaurus Topics

  • Accounting
  • Agreements
  • Best Practices
  • Business Administration
  • Commerce
  • Congress
  • Contract Administration
  • Contracts
  • Department Of Defense
  • Department Of State
  • Federal Budgets
  • Financial Management
  • Foreign Military Sales
  • Government (Foreign)
  • Governments
  • House Of Representatives
  • Law
  • Military Personnel
  • Standards
  • United States
  • United States Government

Fields of Study

  • Political science

Readers

  • Defense Financial Management and Audit.
  • Government Contracting/Procurement.