DEFENSE SECURITY COOPERATION AGENCY  2800 DEFENSE PENTAGON  WASHINGTON, D.C. 20301-2800	11/9/2000

MEMORANDUM FOR :

Deputy Under Secretary of the Army (International Affairs)
Attn: SAUS-IA-DSZ
Department of the Army
Director, Navy International Programs Office
Department of the Navy
Deputy Under Secretary of the Air Force (International Affairs)
Department of the Air Force
Director, Defense Logistics Agency
Director, National Imagery and Mapping Agency
Director, Defense Threat Reduction Agency
Director, Defense Reutilization and Marketing Service
Director, Defense Information Systems Agency
Director, Defense Logistics Information Service
Deputy Director for Security Assistance, Defense Finance and Accounting Service -- Denver Center

SUBJECT :

Foreign Military Sales Case Management (DSCA 00-17)

Section 704 of the Security Assistance Management Manual (SAMM) provides details on functions that must be performed by case managers. Recent complaints regarding management of Foreign Military Sales (FMS) cases indicate that there are problems in this area -- the following existing guidance is provided for your use and information to ensure proper management.

The case manager is accountable for all aspects of FMS cases assigned to him or her -- this includes planning and execution functions as well as all financial, logistical, and acquisition matters associated with each program. The objective is to provide all articles and services within the cost and schedule estimated on the Letter of Offer and Acceptance (LOA). The case manager must stay on-top of each program and be aware of any problems which could impact the estimated cost or schedule. This requires frequent communication with the weapon system program manager as well as the contracting officer. When potential cost overruns or delays are identified, the case manager is expected to consult with the program manager, the contractor and the foreign customer to ensure all options are explored and informed decisions can be made. LOA amendments and/or modifications should be processed promptly to ensure the case reflects up-to-date estimates and descriptions for the program.

Good case management requires working together -- USG managers, contractors, and the foreign purchaser -- prior to any financial impacts on the case. This team effort is essential and will help ensure we are able to meet the obligations and commitments of our security cooperation programs. If you have any questions or concerns regarding this policy, please contact Beth Baker, DSCA/PSD-PMD, (703) 604-6612.

Tome H. Walters, Jr.
Lieutenant General, USAF
Director