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Figure C9.F5.

 

SPECIAL BILLING ARRANGEMENT (SBA)
BETWEEN
THE BANDARIA MINISTRY OF DEFENCE (MoD)
AND
DEFENSE SECURITY COOPERATION AGENCY (DSCA)

 

  1. Parties. The parties to this agreement are:

    1. The Ministry of Defence of the Government of Bandaria;

    2. The Defense Security Cooperation Agency (DSCA), an agency of the United States Department of Defense (DoD)

  2. Definitions. For the purpose of this arrangement, the following definitions are applicable:

    Key Term Description

    Working Capital (Available Funds)

    The current country cash balance of both their FMS Trust Fund account and, if applicable, an Interest Bearing Account, that has not been associated with a projected expenditure. Includes Termination Liability Reserve.

    Special Reserve

    A special reserve may be added for special requirements such as high value programs.

    Baseline Reserve

    The amount required for projected disbursements until the special bill payment arrives.

    Working Fund

    The amount required to cover future disbursements subsequent to payment of the special bill.

  3. Scope. The scope of this arrangement:

    This SBA is to more accurately project cash requirements for your FMS program, including reserves for termination liability, expenditure fluctuations and progress payments to contractors are covered as agreed in the Letters of Offer and Acceptance (LOAs). Additionally, it will identify any amounts needed to close cases and Initial Deposit and Amount Due with Acceptance shortages for basic cases and Amendments implemented without payment of the total amount identified, respectively.

    This SBA will include all implemented FMS cases. Special cash requirements for Bandaria unique FMS programs such as F-35 and V-22 and their related support cases will be separately identified.

    This SBA may result in billings that supersede the Amount Due and Payable as stated DD 645 Quarterly Billing Statement.

    LOA payment schedules will not be adjusted to reflect the revised payment requested in the Special Bill Letter (SBL), but should be reviewed by the Implementing Agency on a regular basis and updated as needed (by Modification or Amendment) to more accurately reflect financial requirements.

    The DoD reserves the right to bill out-of-cycle for additional amounts if the amount previously billed proves to be inadequate to support actual expenditures for the billed period. The MoD may pay additional funds against FMS cases at any time.

  4. Implementation of this SBA: This SBA is implemented as described in the annex attached.

  5. Effective Date: This arrangement shall enter into force at [Date TBD], but not before all required signatures are subscribed hereon.

  6. Termination: Notification of SBA termination must come in the form of an official letter which will provide 30 days' notice. Upon termination, billing reverts to the standard DD 645 billing statement. In order to facilitate this transition, DSCA will calculate a final bill letter with an amount due based on the latest DD 645 billing statement amount and your current cash position. When the next quarterly DD 645 billing statement is available, the FMS partner will recommence payment in accordance with that official billing statement. If the FMS partner is unable to pay the final amount due, then the FMS partner must notify the DSCA Country Finance Director as soon as possible in order to work on restructuring payments in accordance with the Security Assistance Management Manual (SAMM), Chapter 9. Delayed repayment may result in FMS program restrictions.

For the Defense Security Cooperation Agency,
U.S. Department of Defense

For the Government of Bandaria,
Ministry of Defence

 

 

 

By _______________________________

Signature

 

 

 

By _______________________________

Signature

 

Name: _______________________________

 

Title:
Principal Director
Business Operations
Defense Security Cooperation Agency

 

Name: _______________________________

 

Title: _______________________________

 

 

 

Annex to Bandaria SBA

 

  1. Implementation: This SBA is implemented as described below:

    1. MoD will be billed [TBD] by a Special Bill Letter (SBL) identifying the payment requirements for the next billing period.

    2. The basis for the special bill calculation is monthly average disbursements including under collected accrued costs. DSCA will always bill the MoD for under collected accrued costs.

    3. DSCA will issue one SBL for the country.

    4. Each SBL will have a unique Bill number and which identifies the country code, month and year (e.g., BN0119).

    5. DSCA will issue the SBLs on or before the 5th business day of the month. The special bill will identify the due date of the payment.

    6. The SBL shall be addressed to: [MoD point of contact, address and email]

    7. The USG POC for the SBL is: [DSCA (Directorate of Business Operations (DBO) Country Financial Management Division (CFM)) POC, address and email]

    8. Payment Instructions: [Wire Transfer Instructions]

    9. MoD will notify DSCA in case of payments in addition to the SBL.