Defense Trade U.S. Contractors Employ Diverse Activities to Meet Offset Obligations.
Abstract
This report provides information on the types of activities undertaken by U.S. contractors to meet offset obligations associated with the sale of defense equipment to various foreign governments. Offsets are the entire range of industrial and commercial benefits that are provided to foreign governments as inducements or conditions for the purchase of military goods and services. They include, for example, co-production and sub-contracting, technology transfers, in-country procurements, marketing and financial assistance, or joint ventures. Our review examined offset transactions of six major U.S. defense contractors. We obtained and analyzed data for over 100 offset transactions on defense weapon system procurements by countries in the Middle East, Europe, and Asia. The transactions were primarily from ongoing or recently completed offset programs reflecting both high and low dollar procurements and tied to foreign military sales (FMS) contracts. Although the sample is not statistically valid, contractors have indicated that these transactions are representative of their offset activities.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 1998
- Accession Number
- ADA359364
Entities
Organizations
- United States Government Accountability Office