| |
| | Defense Procurement and Acquisition Policy - PAIC, Offsets (Site not responding. Last check: 2007-10-12) |
 | | A. “Offset” means the entire range of industrial and commercial benefits provided to foreign governments as an inducement or condition to purchase military goods or services, including benefits such as co-production, licensed production, subcontracting, technology transfer, in-county procurement, marketing and financial assistance, and joint ventures. |
 | | The contractor must make the offset agreement available to the CO upon request when it is needed to evaluate the allowability, allocability, and reasonableness of proposed offset costs. |
 | | Without understanding the scope and terms of the offset agreement, the contracting officer will not be able to ascertain the acceptability of the costs pursuant to the regulations, and therefore will not be able to include those costs in the contract price. |
| www.acq.osd.mil /dpap/paic/international/contracting/offsets (3127 words) |
|