Cost Waivers Under the Foreign Military Sales Program: More Attention and Control Needed

The Arms Export Control Act provides that charges for nonrecurring research, development, and production costs and for the use of government-owned assets can be waived or reduced if the sale would significantly advance either U.S. interests in North Atlantic Treaty Organization (NATO) standardization or foreign procurement in the United States under coproduction arrangements. The Department of Defense (DOD) is not required to obtain congressional approval before authorizing waivers, nor is it required to report to Congress on the reasons for and amounts of waivers.