Transportation Pricing Policy for the Foreign Military Sales Program

Abstract

On October 1, 1991, the Department of Defense implemented the Defense Management Review Decisions (DMRDs) in an effort to reorganize the supply system and reduce overall costs. These changes were implemented without regard for the Foreign Military Sales (FMS) program. This paper analyzes the changes forced on the FMS program since implementation of the DMRD initiatives and evaluates those changes in terms of the legislative requirement for cost recovery and effect on customer service. An analysis of the rates assessed FMS customers to use the Defense Transportation System is performed and are compared to the actual charges being billed to the FMS transportation trust fund account. An alternate transportation pricing model is reviewed for applicability, and recommendations are made for changes to the FMS transportation pricing policy.

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Document Details

Document Type
Technical Report
Publication Date
Dec 01, 1992
Accession Number
ADA260619

Entities

People

  • Gregory H. Freeburn

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Human Systems
  • Space
  • Weapons Technologies

DTIC Thesaurus Topics

  • Air Force
  • Commerce
  • Computers
  • Customer Services
  • Department Of Defense
  • Department Of State
  • Financial Management
  • Foreign Military Sales
  • Government (Foreign)
  • International Organizations
  • Law
  • Logistics
  • Military Equipment
  • Money
  • Transportation
  • United States
  • United States Government

Readers

  • Defense Acquisition Program Management
  • Defense Financial Management and Audit.