| Description |
1 online resource (x, 26 pages). |
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text txt rdacontent |
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computer c rdamedia |
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online resource cr rdacarrier |
| Series |
Staff working paper |
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Staff working paper.
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| Note |
Title from title screen (viewed on June 6, 2014). |
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"May 24, 1976." |
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Staff working paper. |
| Access |
APPROVED FOR PUBLIC RELEASE. |
| Summary |
This is a report on the financial aspects of the sale of U.S. arms abroad. Specifically, the report deals with the budgetary cost savings to the U.S. Department of Defense which are generated by foreign military sales. Based on the current mix of sales of weapons, services, and construction, an $8 billion sales program would on average generate $560 million in savings annually. This estimate of savings presumes then the United States would not significantly alter the defense production base in the absence of foreign military sales. If only research and development (R&D) savings are considered, an $8 billion sales program would on average generate $160 million in R&D recoupments. If the mix of sales were to remain the same but the foreign military sales program were reduced, the savings would be reduced proportionally. For example, a $4 billion program would on average generate $280 million in total savings of which $80 million represents R&D recoupments. The report first discusses the types of savings which can be generated and classifies them into five groups. Next, data on past and projected savings for 35 selected weapon systems are presented. This is followed by a discussion of the kinds of foreign military sales for fiscal year 1975 had the potential to generate savings. Finally, an estimate is made of the dollar value of savings for an $8 billion sales program based on data for 35 major weapon systems and on two alternative mixes of sales. The paper focuses on government-to-government arms sales and for the most part does not discuss commercial sales. As will become clear upon discussion of the types of budgetary savings that can be generated by foreign military sales, commercial arms sales have little potential for generating budgetary savings to the Department of Defense. |
| Subject |
Military assistance, American -- Economic aspects.
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United States -- Armed Forces -- Appropriations and expenditures.
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Administration and management.
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Economics and cost analysis.
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Military forces and organizations.
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Military budgets.
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Savings.
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Weapon systems.
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Government(foreign).
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Economic impact.
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Department of defense.
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Foreign military sales.
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Defense industry.
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Military procurement.
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Classification.
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Estimates.
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Policies.
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Construction.
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Armed Forces -- Appropriations and expenditures.
(OCoLC)fst00814587
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Military assistance, American -- Economic aspects.
(OCoLC)fst01020937
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United States. (OCoLC)fst01204155
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| Indexed Term |
BUDGETARY COST SAVINGS |
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RESEARCH AND DEVELOPMENT RECOUPMENTS |
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LEARNING CURVE EFFECTS SAVINGS |
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ECONOMIES OF SCALE SAVINGS |
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OVERHEAD SAVINGS |
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PRODUCTION LINE GAPS |
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COMMERCIAL ARMS SALES |
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SERVICES |
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ALTERNATIVE MIXES |
| Added Author |
Schafer, Robert E., author.
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Renehan, Patrick L., author.
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Nelson, Terry.
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Espinosa, Ramon.
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Fifer, Sheila K.
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United States. Congressional Budget Office, issuing body.
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| Other Form: |
Print version: Capra, James R. Budgetary cost savings to the Department of Defense resulting from foreign military sales (DLC) 81603485 (OCoLC)2533821 |
| Standard No. |
DTICE ADA529071 |
| Gpo Item No. |
1005-C (online) |
| Sudoc No. |
Y 10.2:D 36/2 |
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