Foreign Military Sales: Changes Needed to Correct Weaknesses in End-Use Monitoring Program

NSIAD-00-208 Published: Aug 24, 2000. Publicly Released: Aug 24, 2000.
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Highlights

Pursuant to a congressional request, GAO reviewed the Foreign Military Sales Program, focusing on: (1) the Department of Defense's (DOD) implementation of its requirement to observe and report on defense articles and services transferred under the Foreign Military Sales program; (2) DOD's implementation of requirements to perform end-use checks; and (3) the extent to which DOD has satisfied the reporting requirements of the end-use monitoring amendment to the Arms Export Control Act.

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Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense To improve the implementation of the end-use monitoring program, the Secretary of Defense should, with concurrence from the Secretary of State, develop procedures to provide field personnel with the information necessary to apply the five end-use check standards, including the information contained in Arms Export Control Act violation reports, and provide guidance on when to apply the standards.
Closed - Implemented
In April 2004, the Defense Security Cooperation Agency (DSCA) updated the Security Assistance Management Manual to reflect the new program and assign responsibilities for end-use monitoring. This includes guidance for field and headquarters personnel to apply when situations occur in a country or region that necessitate additional end-use checks. The manual also includes specific procedures on performing end-use checks when the Department of State reports to field staff through the U.S. embassy that an Arms Export Control Act violation has occurred.
Department of Defense To improve the implementation of the end-use monitoring program, the Secretary of Defense should, with concurrence from the Secretary of State, issue specific guidance to field personnel on what activities need to be performed for the routine observation of U.S. defense equipment and additional guidance for the monitoring of specific weapon systems.
Closed - Implemented
In response to GAO's recommendation, DOD has developed an enhanced end-use monitoring program, and in 2004, provided guidance on the requirements, timelines, and reports for each type of end-use monitoring visit. DOD has also developed a specific checklist for use in reviewing requirements for one specific weapon system and stated that additional checklists were being developed for all enhanced articles/services.
Department of Defense To improve the implementation of the end-use monitoring program, the Secretary of Defense should, with concurrence from the Secretary of State, reconcile discrepancies in foreign governments' Stinger missile inventories, where discrepancies exist.
Closed - Not Implemented
In a follow-on review of Stinger missile end-use monitoring, GAO reported that DOD's inventory inspection process still has flaws. (NONPROLIFERATION: Further Improvements Needed in U.S. Efforts to Counter Threats from Man-Portable Air Defense Systems, May 12, 2004, GAO-04-519). Because DOD's records on the number and destination of Stinger missiles sold overseas are incomplete and unreliable, the department continues to be unable to reconcile discrepancies in foreign governments' Stinger missile inventories.
Department of Defense To improve the implementation of the end-use monitoring program, the Secretary of Defense should, with concurrence from the Secretary of State, comply with the 1996 end-use monitoring amendment by reporting required information to Congress.
Closed - Implemented
Beginning with the fiscal year 2005 Congressional Budget Justification for Foreign Operations (released on February 10, 2004), DOD is now tracking and reporting to Congress the activities and resource expenditures associated with end-use monitoring under the Golden Sentry program.

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