What is nonrecurring cost recoupment in Foreign Military Sales?

Any item of Significant Military Equipment on the U.S. Munitions List having a nonrecurring research and development cost of more than $50 million or a total production cost of more than $200 million. Also defined in section 47 (6), Arms Export Control Act.

Costs funded by a Research, Development, Test, and Evaluation appropriation to develop or improve a product or technology either through contract or in-house effort. NC also includes one-time costs incurred in support of previous production of a specified model and costs incurred in support of a total projected production run. See "Nonrecurring Production Costs" and "Nonrecurring Research, Development, Test, and Evaluation Costs."

The one-time costs incurred in support of previous production of the model specified and the costs specifically incurred in support of the total projected production run. These costs include DoD expenditures for preproduction engineering; special tooling; special test equipment; production engineering; product improvement; destructive testing; and pilot model production, testing, and evaluation. These costs also include any engineering change proposals initiated before the date of calculations of the nonrecurring cost recoupment charge. Nonrecurring production costs do not include DoD expenditures for machine tools, capital equipment, or facilities for which contractor rental payments are made or waived.

Costs funded by a research, development, test, and evaluation appropriation to develop or improve the product or technology under consideration either through contract or in-house DoD effort. This includes costs for any engineering change proposal started before the date of calculation of the nonrecurring cost recoupment charges as well as projections of such costs, to the extent additional effort applicable to the sale model or technology is necessary or planned. It does not include costs funded by either procurement or operation and maintenance appropriations.

Defense articles for which special export controls are warranted because of the capacity of such articles for substantial military utility or capability. These items are identified on the U.S. Munitions List in the International Traffic in Arms Regulations by an asterisk preceding the item category listing.

The U.S. Munitions List is an enumeration of defense articles and defense services and is published in the Department of State's International Traffic in Arms Regulations.

The basic U.S. law providing the authority and general rules for the conduct of Foreign Military Sales and commercial sales of defense articles, defense services, and training. The Arms Export Control Act (AECA) came into existence with the passage of the Foreign Military Sales Act (FMSA) of 1968. An amendment in the International Security Assistance and AECA of 1976 changed the name of FMSA to the AECA.

The Office of the Secretary of Defense, the Military Departments, the Joint Chiefs of Staff, the Combatant Commands, the DoD Office of the Inspector General, the Defense agencies, and DoD field activities.

Funds that are required to cover outlays and/or deliveries that are anticipated to occur before the receipt of the first quarterly payment. These funds must accompany the accepted Letter of Offer and Acceptance.