Foreign Military Sales:
Air Force Efforts to Develop an FMS Accounting System
AFMD-90-82FS, Aug 8, 1990
Pursuant to a congressional request, GAO evaluated the Department of Defense's progress in implementing Foreign Military Sales (FMS) accounting system improvements, focusing on the status of the Air Force's efforts to design, develop, and implement a new central FMS accounting and billing system.
GAO found that: (1) the Air Force designated its audit agency and a new management office to oversee the design, development, and implementation of the FMS central accounting and billing system; (2) the Air Force also completed an economic analysis to assist it in selecting the best development method for the FMS program; (3) the Air Force identified five alternatives for the new system, but felt that only three alternatives offered viable approaches for correcting long-standing FMS financial management problems; (4) the Air Force estimated a total cost for each of the three alternatives of between $60 million and $68 million; (5) following the completion of the initial economic analysis, the Air Force developed 613 requirements for the new FMS accounting and billing system; and (6) since July 1988, the Air Force had awarded 10 contracts valued at over $1 million to assist it in developing cost estimates and alternatives for the new FMS system.