Transportation pricing policy for the Foreign Military Sales programs.

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Author
Freeburn, Gregory Harold
Date
1992-12Advisor
Boger, Dan C.
Brown, David G.
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Show full item recordAbstract
On 1 October, 1991 the Department of Defense implemented the
Defense Management Review Decisions (DMRDs) in an effort to
reorganize the supply system and reduce overall costs. These
changes were implemented without regard for the Foreign Military
Sales (FMS) program. This paper analyzes the changes forced on the
FMS program since implementation of the DMRD initiatives and
evaluates those changes in terms of the legislative requirement for
cost recovery and effect on customer service. An analysis of the
rates assessed FMS customers to use the Defense Transportation
System is performed and are compared to the actual charges being
billed to the FMS transportation trust fund account. An alternate
transportation pricing model is reviewed for applicability and
recommendations are made for changes to the FMS transportation
pricing policy.
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