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DSCA to Cut FMS Contract Administration Surcharge by 20%

PentagonThe U.S. Defense Security Cooperation Agency will lower the contract administration services fee for foreign military sales from 1.5 percent on every transaction to 1.2 percent.

DSCA said Monday the surcharge reduction will take effect Dec. 1 and falls under an agency initiative to reduce total FMS program cost for overseas buyers.

The agency said it reduced the CAS surcharge rate after a review of the account’s historical sales and expense data.

The new CAS fee covers quality assurance assessment, inspection, audit and contract management services and is different from the program’s 3.5 percent administrative fee for government-to-government sales.

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