Industry Survey: Attitudes Towards DOD/Industry Interface under Foreign Military Sales
Study project rept.
DEFENSE SYSTEMS MANAGEMENT SCHOOL FORT BELVOIR VA
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This report presents the results of a survey on industry attitudes with respect to the conduct of business under the Foreign Military Sales FMS Act of 1968 and the Department of DefenseIndustry interrelationships required under this Act. The distinction between foreign direct sales and FMS is discussed. This newly expanded market, which has expanded by a factor of 4 since 1971, has the potential of amplifying issues in the DODIndustry interface. Structured interviews were conducted with a key executive involved in the FMS activity of 5 aerospace firms in the Washington, D. C. area. The survey covered the general interface areas of 1 Marketing 2 DODIndustry management 3 U. S. Government regulatory control and 4 Domestic political environment. The following are among the major issues as seen by the interviewees Inadequate costprofit allowance Needs for more effective organizational structure within the Armed Services, for revised in-country MAAGs charter and militarycivilian mix, and Need to include logistics planning effort by contractors in initial FMS contracts.
- Administration and Management