Cost Elements

National Funds

U.S. Appropriated Funds

FULL COST

FULL COST

ADDITIONAL COST

ADDITIONAL COST

RATE A

RATE B

RATE C

Foreign Military Sales (FMS) RATE D

International Military Education and Training (IMET) RATE E

Full FMS

Reciprocal

FMS1

Foreign Military Financing (FMF)4

IMET

Direct Costs:

 

 

 

 

 

Military Pay

Full

Full

Additional

N/A

N/A

Medical Eligible Retiree Health Care (MERHC)

Apply

Apply

N/A

N/A

N/A

Defense Health Program (DHP)

Apply

Apply

N/A

N/A

N/A

Civilian Pay

Full

Full

Additional

Additional

Additional

Civilian Fringe Benefits

Apply

Apply

Apply2

Apply2

Apply2

Unfunded Civilian Retirement (UCR)

Apply

Apply

N/A

N/A

N/A

Non-Personnel/Material

Full

Full

Additional

Additional

Additional

Indirect Costs:

 

 

 

 

 

Military Pay

Full

N/A3

Additional

N/A

N/A

MERHC

Apply

N/A3

N/A

N/A

N/A

DHP

Apply

N/A3

N/A

N/A

N/A

Civilian Pay

Full

N/A3

Additional

Additional

Additional

Civilian Fringe Benefits

Apply

N/A3

Apply2

Apply2

Apply2

Civilian Unfunded Retirement

Apply

N/A3

N/A

N/A

N/A

Non-Personnel/Material

Full

N/A3

Additional

Additional

Additional

Other Billable Costs:

 

 

 

 

 

Attrition Surcharge

Apply

N/A

N/A

N/A

N/A

Liability Statement

N/A

Apply

Apply

Apply

N/A

Field Studies Program (FSP)

Full

Full

Full

Full

Full

Retainable Instructional Materials (RIM)

If applicable

If applicable

If applicable

If applicable

If applicable

FMS Admin:

 

 

 

 

 

?

Apply

N/A3

Apply

Apply

N/A

Notes:

  1. RATE C – FMS: Countries concurrently in receipt of IMET that elect to purchase training using national funds receive this rate. Countries designated as high-income countries also receive this rate.
  2. Apply: Charge the entire factor against the additional cost. There is no reduction to the factor because additional cost pricing is used.
  3. Refer to Arms Export Control Act (AECA), Section 21(g) (22 U.S.C. 2761(g)). The President is authorized to enter into North Atlantic Treaty Organization (NATO) Standardization Agreement (STANAG) and similar agreements with Major Non-NATO Allies if the pricing principles of such agreements are based on reciprocity. Such agreements may exclude reimbursement of indirect costs and the FMS Administrative Surcharge.
  4. RATE D - FMF: This rate applies to courses provided to countries that use U.S. appropriated dollars as their source of funding (except IMET). If the training case is not wholly funded with U.S. appropriated funds (e.g., 100 percent Military Assistance Program (MAP) Merger, 100 percent non-repayable FMF), then re-price training to include military salaries and benefits. This rate also applies to general BPC appropriations and authorities (i.e., Foreign Security Forces (FSF): authority to build capacity under 10 U.S.C. 333).