What a training place costs

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1. Five prices for the same seat

Two officers can sit in the same classroom, taught by the same instructor, and their governments can be billed different amounts. That is deliberate. The manual points to the statutes that authorize it, noting that they "establish the legal basis for a multi-tier pricing structure for training provided under the U.S. security assistance (SA) authorities" (SAMM C10.14.1), with the detailed rates set out in the financial management regulation.

There are five tiers, lettered A through E. Which one applies is decided by the buyer's status and the source of the money, not by the course.

• Rate A is the default. "Countries and organizations purchasing training via an FMS case and not eligible for one of the FMS pricing categories listed below are charged Rate A" (SAMM C10.14.1.1).
• Rate B is the reciprocal rate. "Countries with a ratified reciprocal pricing agreement with the USG purchasing training via an FMS case are charged Rate B" (SAMM C10.14.1.2).
• Rate C covers countries currently receiving grant training funds, and a short list designated as high income under the Foreign Assistance Act, where they buy training with their own national money (SAMM C10.14.1.3).
• Rate D applies to appropriated money. "Training on a case financed with U.S. appropriated funds receives Rate D" (SAMM C10.14.1.4).
• Rate E is the grant rate. "Training financed by the IMET appropriation is priced at Rate E" (SAMM C10.14.1.5).

The gap between the last two is one item only. Rate D "is identical to Rate E except that the FMS administrative surcharge will be applied to it" (SAMM C10.14.1.4).

2. Who qualifies for the reciprocal rate

Rate B is not an alliance benefit in the abstract. It follows a ratified agreement. The manual publishes the list with effective dates running from 2011 to 2017 for the alliance members, alongside a second list covering Australia, Israel, Japan and New Zealand with dates in the 1980s (SAMM Table C10.T15).

A country can appear in more than one category, and the manual notes that some countries eligible for the reciprocal rate are also eligible for Rate C (SAMM C10.14.1.2). The high income designation under Rate C names Austria, Finland, the Republic of Korea, Singapore and Spain (SAMM C10.14.1.3). A partner unsure of its own grant status can ask the agency, which maintains the allocation database that records it.

3. What the tuition figure includes

The largest single variable is military pay. Where a case is fully funded by grant assistance or non-repayable credit, "the tuition rate excludes military pay and entitlements in accordance with FAA section 503(a) (22 U.S.C. 2311(a)); refer to Rate D" (SAMM C10.14.1).

Mixing funding sources reverses that. Where a case is not fully funded from those sources, "the tuition rate will include military pay and entitlements; refer to Rate C" (SAMM C10.14.1). Instructor salaries are the bulk of the cost of teaching, so a partner adding national money to a grant funded case can find the price of the same seat moving substantially.

4. Tuition is the smaller half

For a case bought with national funds, the course fee is not the exposure. "The purchaser is responsible for all IMS support costs (Travel and Living Allowance (TLA) (which include meals, lodging, and incidentals) (see Section C10.13.), medical care requirements (see Section C10.9.), transportation, and other costs) while they are in training" (SAMM C10.7.5).

There is a cash flow obligation attached to that, and it is frequently missed. "The purchaser must ensure that students receive sufficient allowances (30 days) for advanced start up housing costs and personal expenses" (SAMM C10.7.5). Deposits, first month rent and basic household costs land in the first fortnight, and most training locations cannot make advance payments on arrival. What the allowance covers is described in travel, living allowance and healthcare.

One frequent question has a clean answer. Insurance bought through a case is not part of the course price: "the cost of procuring supplemental insurance is not treated as a cost of the training or the course itself" (SAMM C10.9.1.2.2).

Baggage is treated the same way. "A baggage limitation is not established for students receiving training under an FMS case as student travel is usually funded outside the FMS case" (SAMM C10.7.6). Where travel is put on the case and approved, the grant funded allowances apply instead.

5. Where the training may be bought

Students on a case can be trained at government schools, at contractor facilities inside or outside the United States, and at civilian colleges by exception. The preference for the last of those is to route around the case entirely: "Training at civilian education institutions should be on a Direct Commercial Sales (DCS) basis between the civilian institution and the purchasing country vice through the FMS process" (SAMM C10.7.4).

Buying commercially has a consequence worth weighing before signing. Personnel trained under a directly negotiated contract "may not use U.S. military facilities to support the training" (SAMM C10.7.4). The difference between the two routes is set out in government sale or direct commercial sale.

Contractor delivered training is not a lighter regime. It "must be conducted under the same procedures and regulations (e.g., Invitational Travel Orders (ITOs) and vetting of International Military Students (IMSs)) outlined for government-provided training" (SAMM C10.7.2). Grant financed training carries a further restriction: "If the case is Foreign Military Financing (FMF)-funded, training must be by U.S. suppliers unless an offshore procurement waiver is granted" (SAMM C10.7.1).

6. Training always gets its own line

Training is never allowed to hide inside an equipment purchase. "The IA will ensure there is a separate training line included on every case that involves training, including materiel-only cases where the cost of the training is embedded in the materiel contract" (SAMM C10.7.8).

The purpose is counting rather than billing. Student numbers are reported to Congress, so every student has to be traceable to a line, and the implementing agency creates the training tracks associated with it, covering regional programs and courses held at contractor sites (SAMM C10.7.8). On a regional capacity building case, each participating country needs its own line.

For a partner reading a case document, that line is the place to check the assumed rate and the assumed number of seats. Both are easier to correct before acceptance than afterwards.

Key terms

Rate A	The default price for a partner buying training with its own funds. SAMM C10.14.1.1.
Rate B	The price where a ratified reciprocal pricing agreement is in force.
Rate E	The grant appropriation price, the lowest of the five.
T-MASL	The training articles and services list, which carries course prerequisites and notes.
Training line	The separate case line required on every case involving training.

Every statement above links to the document behind it. The full source list for this piece is on the sources page.

This page describes public United States government programs for general information. It is not legal, regulatory or procurement advice, and it does not address the facts of any particular case.

How Sentfore supports this

Training budgets are set in one place and spent in another. Sentfore supports defense programs at the delivery end, providing secure transport, protective security, accommodation and life support in difficult environments. Requirements can be sent through the contact page.