US Military Export Sales Support Grows by 950% from 2007 to 2017

(GAO, Washington, 10 May 2018) The US Foreign Military Sales (FMS) administrative account balance grew by over 950 percent from fiscal years 2007 to 2017—from $391 million to $4.1 billion—due in part to insufficient management controls, including the lack of timely rate reviews. The Defense Security Cooperation Agency (DSCA) has some controls to manage the account balance. By not performing timely rate reviews or setting an upper bound, DSCA has limited its ability to prevent excessive balance growth.  U.S. foreign partners buy billions of dollars of defense equipment and services each year through the U.S. Foreign Military Sales program. The program charges fees to purchasers to cover the U.S. government's cost of operating the program. As the value of these sales has increased, the balances in the 2 main fee accounts have grown in excess of 950% and now top $5 billion. GAO found that the substantial growth in these accounts was due to insufficient management controls.

Country: 
Issue: