Report on the Audit of Pricing and Billing of Stinger Missiles Sold to Foreign Military Sales Customers
Abstract
The Arms Export Control Act (AECA), which governs the sale of defense articles and services to foreign countries, requires that all costs incurred in these sales be fully recovered. DoD Manual 7290.3-M, "Foreign Military Sales Financial Management Manual," June 30, 1981, specifies the costs that must be included in the pricing of Defense articles and services to comply with the AECA. The Defense Security Assistance Agency (DSAA) has overall responsibility for the coordination and implementation of all foreign military sales (FMS) agreements. The U.S. Army Missile Command (MICOM), as the inventory manager of Stinger missiles, is responsible for providing defense articles and services to satisfy the requirements of sales agreements. In addition, MICOM is responsible for reporting all costs of the sales agreements to the Security Assistance Accounting Center (SAAC), which bills FMS customers. As of December 1989, 13 foreign countries had entered into 37 sales agreements for 3,413 Stinger missiles with an estimated cost of $205.4 million. Through December 1989, 2,539 missiles with a reported cost of $133.0 million had been delivered to 13 countries.
Document Details
- Document Type
- Technical Report
- Publication Date
- Feb 27, 1991
- Accession Number
- ADA380160
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense