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Foreign Military Sales: Controls Should Be Strengthened to Address Substantial Growth in Overhead Account Balances
[Technical Report, Congressional Report]
United States Government Accountability Office
Pagination or Media Count:
Why GAO Did This Study. The FMS program is one of the primary ways the U.S. government supports its foreign partners, by providing them with defense equipment and services. The program charges FMS customers overhead fees to cover the U.S. governments operating costs. They include the administrative fee for costs such as civilian employee salaries and facilities, and the CAS fee for the cost of contract quality assurance, management, and audits. In 1989, Congress excluded from administrative expenses certain costs associated with military personnel who work on the FMS program as well as unfunded civilian retirement and other benefits. As of May 2018, the administrative fee rate is 3.5 percent ,and the CAS fee rate is 1.2 percent.
[A, Approved For Public Release]