Centralized Accounting and Disbursing for Foreign Military Sales. Direct-Cite Procurements: Test Evaluation.
NAVAL POSTGRADUATE SCHOOL MONTEREY CA
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Foreign military sales FMS have grown significantly in dollar volume. The General Accounting Office has accused the Department of Defense DOD of a longstanding inability to manage the FMS program, and recently recommended centralization of accounting and disbursing functions as the best long-range solution to the programs problems. Defense subsequently initiated a limited test of centralization at the Security Assistance Accounting Center. The test involves several major direct-cite procurement contracts, and was designed to form the basis of DODs response to the Congress regarding the centralized concept. This thesis describes and evaluates this ongoing test, in particular, its relevancy towards the decision of whether or not to expand and implement centralization of the FMS program. The study concludes that, although centralization is not a panacea for all the problems of the U.S. foreign military sales program, and cannot be expected to produce instant solutions, it is an advancement. Until a better alternative is developed, centralization should be pursued. Author
- Economics and Cost Analysis
- Logistics, Military Facilities and Supplies