Contract Pricing Impact on Foreign Military Sales Cases Closures

Abstract

Abstract : Experience of Foreign Military Sales (FMS) managers indicates that many FMS cases are retained in an open status because of delays in negotiation of final contract prices. The objective of this study was to develop procedures and policies which will reduce to acceptable levels the number of FMS case closures being delayed due to lack of finalized prices. The approach was to determine the number, age, and value of contracts delaying closure of FMS cases; upon determination of reasons for delay in final price negotiation, identify opportunities for reducing the delays which are within the procuring activities' ability to exploit. A satisfactory data base does not currently exist to enable a reliable finding of the impact of pricing delay in FMS case closures. A lack of interface between computer systems, as well as semantics problems, cause a lack of communication and precludes a system approach to FMS case management and closure in particular. System change requests (SCR's) have been developed to provide an interface between computer systems and provide for a basis of a systematic approach to management and closure of FMS cases. Upon implementation of the SCR's, a data base will become available which will allow analysis of the impact of pricing and other potential functional delays on FMS case closures.