Tuition Rates Charged Foreign Governments for Military Training Should Be Revised

NSIAD-84-61: Published: Feb 21, 1984. Publicly Released: Feb 21, 1984.

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Pursuant to a congressional request, GAO reviewed the effect of past changes in the pricing of foreign military training and evaluated an administration proposal for further pricing changes.

GAO found that revisions to the Arms Export Control Act have decreased amounts paid by foreign customers for military training by an estimated $30 million annually. Furthermore, the administration's proposal to amend this act would reduce current training revenues by an additional $40 million annually and increase the costs funded by Defense appropriations.

Matter for Congressional Consideration

  1. Status: Closed - Implemented

    Comments: When we determine what steps the Congress has taken, we will provide updated information.

    Matter: Congress should amend the Arms Export Control Act to establish a single pricing structure for all training provided under the Foreign Military Sales (FMS) program, based on full cost determined in accordance with generally accepted accounting principles. If Congress desires some countries or groups of countries to be able to purchase training under the FMS program at less than the full cost, it should provide guidelines for discounting prices in those cases and require disclosure of the costs waived. In addition, Congress should take legislative action to completely fund the full cost of the International Military Education and Training (IMET) grant program under the Foreign Assistance Appropriation Act rather than under both the Foreign Assistance Appropriation Act and the Defense Appropriation Act as is the current practice. Alternatively, Congress should consider amending the Foreign Assistance Act to provide for disclosure of all unreimbursed costs of the IMET program.


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