Single Pricing for Major Items in FMS (Foreign Military Sales).

Abstract

This study has two primary objectives. First, to investigate how the existing methods of estimating major item prices for FMS could be improved so that the difference between that estimate and the actual price charged will not vary by more than 10% of the initial price. Second, to determine the initial versus final price differences currently being experienced by the Army. It was found that a few cost-effective improvements are possible though the average ratio of final prices to initial prices of between 93% and 99% is well within acceptable limits. The study recommends that the price estimating process be automated by all MSCs, that a contingency reserve be added to those cases where there is a low confidence in the initial price estimate, and that the US Army Security Assistance Center (USASAC) prepare a quarterly management report of the price ratios for each subordinate command and for the total Army case load. Keywords include: FMS, Pricing, Cost, Major items, Financial, Supply, Military missions.

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Document Details

Document Type
Technical Report
Publication Date
Jan 01, 1984
Accession Number
ADA150676

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  • U. R. Poskus

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