Definition

A charge based on the Arms Export Control Act requirement for full cost recovery. This charge is intended to recover the cost of logistics support involved in providing the spares and other items required to maintain a weapon system. These support costs are associated with production control, requisition processing, inventory maintenance, administration of Supply Discrepancy Reports, and logistics management. The LSC is applied by the Defense Finance and Accounting Service-Indianapolis to delivery costs for those lines in Foreign Military Sales cases that have been identified as support lines based on the generic code included in the Letter of Offer and Acceptance.