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DOCUMENT RESUME
03512 - [A2723948]
[Review of Storage Charges and Customer Assistance Teams for
M.ilitary Sales]. LCD-77-238; B-165731. September 23, 1977. 3 pp.
Report to Sen. John L. McClellan, Chairman, Senate Committee on
Appropriaticns; by Robert F. Keller, Deputy Comptroller General.
Issue Area: International Econciic and Military Programs:
Foreign Military Sales (605) ; Facilities and Material
Manaqement: Federal Transportation of Things (704).
Contact: Logistics and Communications Div.
Budget Function: National Defense: Department of Defense -
Military (except procurement & contracts) (051).
Grganizaticn Concerned: Department of Defense; Department of the
Army; Department of the Air force,.
Congressional Relevance: Senate Committee on Appropriations.
Authcrity: H. Rept. 95-451. S. Ript. 95-325.
A review of shipments from 19 depots under the Foreign
Military Sales Program revealed no significant problems.
Findings/Conclusicns: 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 siles agreement, or can be
included as an administrative surc~arge. Total maintenance
technical assistance for all depots for FY 1976 totaled
$343,414, of wbich $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
ccuntry azd past undercharges can be billed if actual costs can
be identified. (HTW)](ViewImageLocal?handle=hein.gao/gaobaavzj0001&div=1&collection=&method=preview&ext=.png&size=3)