DoD orders contracting officers to get out of the way of foreign military sale negotiations
Generally speaking, the Pentagon is the middle man in foreign military sales — there to usher weapons systems from the U.S. supplier to foreign allies. A new rule from the Department of the Defense will require contracting officers to back off from negotiations even more.
The interim rule released by the DOD Tuesday relates to indirect offset agreements. These are side deals that some foreign military sales hinge on, though they’re completely unrelated to the systems being purchased. Simply put, under indirect offset agreements, the foreign buyer negotiates a military systems purchase from a U.S. supplier and as part of the negotiation, the supplier agrees to buy products or services from, or make some investment in, the foreign country. In theory, this maintains the balance of trade.
So what’s changing about that setup? Basically, contracting officers are to no longer ensure contractors are getting a fair shake.
NEW YORK, NY
Commercial Operations Director, North America
Assistant State Comptroller VII, Director – Revenue Administration Division
Comptroller of Maryland
Federal Marketing Coordinator
Post a JobSee All Jobs
Currently, the U.S. government assumes no obligation to satisfy or administer the offset requirement or to bear any of the associated costs. However, acquisition regulations do provide that the U.S. government conduct foreign military sale acquisitions under the same acquisition and contract management procedures used for other defense buys. That means the contracting officer has to attest to the price reasonableness of these contracts, including indirect offset costs that are not tied directly to the end item.