Agents Fees/Sales Commissions

• Fees/Commissions* (May exceed $50,000 per Contract if accepted by customer in writing before contract award) are allowable in DoD FMS Contracts under cash/FMF funded LOAs, if justified, supported and paid to:

  • A Bona-Fide Employee of a contractor or,
  • A Bona-Fide Selling agency maintained by the contractor to obtain business

• Country must be informed of such fees, and may reject within 30 days of notice

(However, such fees/commissions are unallowable in FMF funded direct commercial contracts.**)

* DFARS 225.7303-4

** DSAA Guidelines for FMF of Direct Commercial Contracts, Sec. 8.

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