Changes to Foreign Military Sales Administrative Surcharge Structure and Rate

Abstract

On 15 March 2006, the Defense Security Cooperation Agency (DSCA) announced a package of reforms aimed at ensuring the continued solvency of the foreign military sales (FMS) Trust Fund Administrative Account. Included in these changes is an increase to the FMS administrative surcharge rate assessed against all FMS and FMS-like cases. The surcharge rate, 2.5 percent since 1999, will be 3.8 percent effective with cases or new case line items accepted on or after 1 August 2006. Other changes in the package include elimination of the Logistics Support Charge in fiscal year (FY) 2008, a requirement to collect a minimum amount against all FMS cases, and a commitment to clarify and consistently implement the standard level of service covered by these charges. This total package of reforms represents some very significant changes that will have both short-term and long-term benefits to the security assistance community. This article discusses the history and factors behind the decision to implement these changes and the overall impact they will have on our programs.

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Document Details

Document Type
Technical Report
Publication Date
Jan 01, 2006
Accession Number
ADA496603

Entities

People

  • Beth M. Baker

Organizations

  • Defense Security Cooperation Agency

Tags

Communities of Interest

  • Biomedical
  • Human Systems

DTIC Thesaurus Topics

  • Air Force
  • Business Administration
  • Commerce
  • Communities
  • Congress
  • Cooperation
  • Department Of Defense
  • Financial Management
  • Foreign Military Sales
  • Governments
  • Interagency Coordination
  • Logistics
  • Logistics Support
  • Program Management
  • Public Administration
  • Security
  • Standards

Fields of Study

  • Political science

Readers

  • Defense Acquisition Program Management
  • Government Contracting/Procurement.
  • Software Engineering