The Defense Department Continues to Subsidize The Foreign Military Sales Program By Not Charging for Normal Inventory Losses
GENERAL ACCOUNTING OFFICE WASHINGTON DC WASHINGTON DC United States
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Concerning the recovery of normal inventory losses on sales of inventory items to foreign governments, determine 1 the nature of inventory losses, 2 if Defense is properly charging foreign governments for inventory losses on sales of nonstock fund items sold under supply support arrangements, and 3 whether the Arms Export Control Act should be further amended to require the recovery of inventory losses on sales of nonstock fund items not covered by supply support arrangements. Nonstock items are generally reparable and nonexpendable items, such as engine motors or generators. Undersupply support arrangements, items are provided, in effect, on a prepaid basis since foreign governments are required to invest in Defenses inventories.
- Logistics, Military Facilities and Supplies
- Economics and Cost Analysis