The U.S. Navy Foreign Military Sales Program.

This study evaluates the organization and procedures presently established to deal with Navy Foreign Military Sales FMS. It focuses on the program office responsible for implementation of the case and ultimate delivery of the system which has been purchased. The paper, first, describes the Navys basic organization and how it relates to DOD and State Department Security Assistance Offices. The following section tracks a typical FMS case from receipt of the customers purchase request, through agreement on sale, to final execution of the case. The paper concludes with a discussion of specific issues relating to financial management problems which currently are being evaluated in the Navy. These issues deal with the requirement to price out a proposed sale and how funds are managed after case implementation. Poor price estimates affect relations with the foreign customers and cause considerable administrative difficulties which result in lost time and possibly, financial loss. Recommendations concentrate on the means by which the accuracy and completeness of price estimates can best be achieved. The funds management problem is primarily associated with the sale of ships. The question of how funds should be controlled impacts on the administration of the SCN account.