Defense Continues to Subsidize Sales of Secondary Items to Foreign Governments Because of Poor Pricing Policies.

Abstract

Over the years, the Congress has made it clear that Defense appropriations are not to be used to subsidize the foreign sales program. However, according to GAO estimates, over $8 million of Defense appropriations were used to subsidize the foreign military sales program in fiscal 1979 at four inventory control points because of inadequacies in estimating replacement costs of secondary items sold from inventory. GAO believes that additional millions of dollars in subsidies occurred because all foreign governments were not billed for certain indirect costs associated with these sales. GAO is recommending actions, including legislative changes, necessary to improve Defense's pricing policies and procedures for sales of secondary items. (Author)

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Document Details

Document Type
Technical Report
Publication Date
Oct 05, 1981
Accession Number
ADA108451

Entities

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Air Platforms
  • Weapons Technologies

DTIC Thesaurus Topics

  • Accounting
  • Air Force
  • Contracts
  • Department Of Defense
  • Export Controls
  • Financial Management
  • Foreign Military Sales
  • Government (Foreign)
  • Governments
  • Indirect Costs
  • Inventory
  • Inventory Control
  • Management Personnel
  • Money
  • Procurement
  • Standards
  • United States

Fields of Study

  • Political science

Readers

  • Government Contracting/Procurement.