Pricing and Billing of Technical Assistance Sold to Foreign Military Sales Customers
Abstract
Our overall objective was to determine whether the Military Departments accurately identified, priced, and billed appropriate costs for sales of technical assistance to foreign customers. We evaluated the adequacy of internal controls that related to the pricing and billing of technical assistance. The audit also included a follow-up review of recommendations applicable to the issuance of specific guidance for pricing and billing CIP costs, depot maintenance costs, and missile target and range costs. The audit universe consisted of 2,233 foreign military sales cases that included technical assistance transactions, valued at $2.4 billion, for calendar years 1987 through 1989. We compiled the universe data from the Defense Security Assistance Agency (DSAA) Foreign Military Sales Financial Information System (DSAA 1200 System). We reviewed 187 technical assistance cases valued at $1 billion of which 90 cases, valued at $825.5 million did not involve CIP for aircraft engines. We also reviewed cost calculations supporting the recoupment of CIP costs for 7 aircraft engines.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 05, 1990
- Accession Number
- ADA380816
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense