Review of Storage Charges and Customer Assistance Teams for Military Sales

LCD-77-238: Published: Sep 23, 1977. Publicly Released: Sep 23, 1977.

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A review of shipments from 19 depots under the Foreign Military Sales Program revealed no significant problems.

Program storage costs of 12 depots were estimated at about $11,600 for periods ranging from 3 to 15 months and no storage costs were found at the remaining 7 depots. A problem at the New Cumberland Army Depot relating to failure of German officials to receive notices was corrected by use of a courier service. The cost of customer assistance teams can be included in the price of the material, can be separately identified as a line item on the sales agreement, or can be included as an administrative surcharge. Total maintenance technical assistance for all depots for FY 1976 totaled $343,414, of which $147,176 was identified as program maintenance assistance. If teams are a specific line item on sales agreement, costs are properly payable by the foreign country and past undercharges can be billed if actual costs can be identified.

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