Home / DoD / DSCA to Cut FMS Contract Administration Surcharge by 20%

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.

Check Also

Air Force Schedules Phase Two of Light-Attack Experiment; David Goldfein Comments

The U.S. Air Force will initiate the second phase of its light-attack experiment, focusing on …

Leave a Reply

Your email address will not be published. Required fields are marked *