Competitive Pricing for FMFP Grant Funded FMS Acquisition*
FMS acquisitions of defense articles financed wholly with grant FMF must be priced on same costing basis as applicable to procurements of like items by DoD for own use
- E.g., regarding profit, overhead, IR&D, bid and proposal and other costing elements.
Direct Costs associated with meeting additional or unique requirements of foreign customers are allowable.
- Loadings** applicable to such costs will be at same rates as those applicable to the DoD.
- Does not affect FMS administrative charges.
* Sec. 531A, Foreign Operations, . . . Approp. Act FY 1996, P.L. 104-107 & DSAA Legislative Update, 2/27/96.
**Indirect costs, e.g., mfg. overhead, selling and general and admin. expenses. FAR 31.203