Millions in Losses Continue on Defense Stock Fund Sales to Foreign Customers.

Abstract

The Department of Defense continues to sell items to foreign customers from its stock fund inventory for less than estimated replacement cost. As a result, Defense appropriations are subsidizing foreign sales by millions of dollars each year--a practice the Congress wants Defense to avoid. This report discusses pricing problems similar to those reported by GAO in 1978. In establishing sales prices, Defense does not: (1) adequately consider the impact of inflation in determining replacement costs; and (2) update often enough the sales prices charged foreign customers. GAO is recommending actions necessary to improve Defense's pricing policies and procedures for stock fund items sold from inventory. (Author)

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Document Details

Document Type
Technical Report
Publication Date
Sep 10, 1981
Accession Number
ADA108450

Entities

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Ground and Sea Platforms
  • Human Systems

DTIC Thesaurus Topics

  • Accounting
  • Air Force
  • Air Force Facilities
  • Contracts
  • Department Of Defense
  • Export Controls
  • Financial Management
  • Foreign Military Sales
  • Government (Foreign)
  • Governments
  • Logistics
  • Management Personnel
  • Money
  • Procurement
  • Statistical Analysis
  • Statistical Samples
  • United States

Fields of Study

  • Business

Readers

  • Government Contracting/Procurement.
  • Logistics and Supply Chain Management.