Armed Services Procedures for Handling Foreign Military Sales Need Improvement

LCD-77-222: Published: May 27, 1977. Publicly Released: May 27, 1977.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Certain procedures and practices for handling direct foreign military sales at the Defense Logistics Agency and its subsidiary centers have resulted in unnecessary and illegal expenditures of appropriated funds, and may have adversely affected the Agency's ability to respond to the needs of U.S. military customers.

Defense policy provides that cooperative sales arrangements be considered in forecasting stock levels but that direct sales not be considered. However, direct sales of low value replenishment demand and numeric stockage objective type items to foreign customers are required to be included in forecasting demand by Agency policy. U.S. funds are used illegally according to law governing foreign military sales. This departure from established policy has increased stock levels significantly. Direct foreign sales requisitions should be placed on backorder if existing stocks are at reorder level; however, the requisitions are often considered to be "exceptions" and on-hand stocks are used, thus depleting stocks needed for U.S. military protection. Certain nonmaintained inventory items are automatically reviewed each quarter for possible reclassification to maintained items. Many items have been changed without meeting the maintained criteria, which is against Defense policy.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Department of Defense should insure that the changes in the foreign sales policy proposed by the Agency are implemented on a timely basis and that they comply with legal provisions and with Defense and Agency policy.

    Agency Affected:

 

Explore the full database of GAO's Open Recommendations »

Mar 28, 2018

Mar 22, 2018

Mar 16, 2018

Mar 8, 2018

Mar 6, 2018

Feb 27, 2018

Feb 14, 2018

Feb 6, 2018

Jan 29, 2018

Dec 14, 2017

Looking for more? Browse all our products here