Last revised: November 17, 2008
Please read this privacy and security notice

Pricing, Finance, and U.S. Cost Recovery White Paper approved 1/26/99

This white paper is designed: (a) to find ways to ensure that prices for foreign customers are fair and don’t carry inappropriate charges and (b) to find ways to recover the costs incurred by the USG in supporting both FMS and Commercial Sales.

In response to the foreign customer’s request for greater visibility into the pricing of LOAs, DSCA issued a  policy memorandum  in February 1999 that allows for the release of both the Logistics Support Charge (LSC) and Contract Administration Services (CAS) costs to customers on a routine basis.  

Legislative changes are required in order to recover USG costs incurred in support of Direct Commercial Sales (DCS). Proposed legislative language allowing the DoD to recover costs for support to DCS was submitted as part of the current DoD legislative request package. [more]

1. Process Transparency White Paper approved 1/26/99

• March 1999 DepSecDef policy memo --Customer Participation in Contract Negotiations

• May 1999 USD(P) & USD(A&T) policy memo --Cooperating with Industry

2. Pricing, Finance, and U.S. Cost Recovery White Paper approved 1/26/99

• February 1999 DSCA policy memo --Approved Release of Logistics Support Charge (LSC) and Contract Administration Services (CAS)

• September 1999, DSCA policy memo --Increased LOA Transparency

•  June 2000, DSCA policy memo--Firm Fixed Price (FFP) and Not To Exceed (NTE) Letter of Offer and Acceptance

3. Arms/Technology Transfer White Paper approved 9/27/99

• 18 November 1998 DepSecDef policy memo--General, Disclosure, Licensing, and the Arms Transfer Policy Review Group (ATPRG)

• DoD Plan to Cut the Export Application Time

• 4 October 1999 DepSecDef memo --Implements New Export License Review Timeframes

Send Comments to the Security Cooperation Reinvention Effort