Skip to main content

DSCA 05-09

Memo Status : Superseded Notes : Superseded by DSCA 16-73.
DoD Shield

DEFENSE SECURITY COOPERATION AGENCY
201 12th STREET SOUTH, STE 203
ARLINGTON, VA 22202-5408

3/8/2005

MEMORANDUM FOR :

SEE DISTRIBUTION

SUBJECT :

Initial Deposit for Cases Funded with FMS Credit (Non-Repayable) and/or MAP Merger (DSCA 05-09) [SAMM E-Change 28]

REFERENCE :

 

  1. DSCA Memorandum 1-07943/99, dated June 21, 1999
  2. Referenced memorandum established the policy that initial deposit for new cases financed with FMS Credit (non-repayable) would be equal to the Estimated Total Costs of the Letter of Offer and Acceptance. This memorandum rescinds that policy and updates the Security Assistance Management Manual (SAMM).

 

SAMM Paragraph C9.9.1.1. is replaced in its entirety with the following:

C9.9.1.1. Payment Schedule Requirement. A payment schedule is developed for each case unless the Term of Sale is "Cash With Acceptance," or the case is fully funded with FMS Credit (Non-Repayable) and/or MAP Merger, the total case value is less than $5M, and the country is not authorized cash flow financing. In these instances, the Initial Deposit covers the entire case value. The following paragraphs provide criteria for developing payment schedules.

SAMM Table C9. T10 is amended as follows:

Table C9.T10. Initial Deposit Requirements

Condition Initial Deposit Amount*

Delivery of the defense article or served is within 90 days of LOA acceptance

The Term of Sale is "Case With Acceptance."

Full case value

Total performance is anticipated to be complete before DFAS Denver ca bill and collect additional payments.

The Term of Sale is "Cash With Acceptance."

Full case value

Cash sale from procurement when the purchaser is not authorized Dependable Undertaking

Full case value

Case is financed wholly with "FMS Credit (Non-Repayable)" or "MAP Merger,: and

Case value is less than $5,000,000 and

Country is not authorized cash flow financing.

Full case value

Delivery of the defense article or service is longer than 90 days after LOA acceptance.

Dollar value associated with performance until a quarterly payment can be made plus half of the total Administrative Surcharge.

No performance Scheduled of the case and no contractual actions offer during the period prior to the first quarterly payment

Half of the total Administrative Surcharge

When items are placed on contract before the first quarterly payment and no SBLC applies

Half of the total Administrative Surcharge; plus that portion of TL requires if the contract is terminated during the period covered by the Initial Deposit; plus contractor holdback.

If the case is partially funded by FMS Credit (Non-Repayable) and/or MAP Merger Funds (except when cash flow financing is approved) the deposit should be at least the amount of the FMS Credit (Non-Repayable) and/or MAP Merger Funding.

SAMM Paragraphs C9.9.3.1. and C9.9.3.2. are replaced as follows:

C9.9.3.1. Payment Schedule Revision Format for Amendments. Amendments use the payment schedule format in Table C9.T11. When either the Term of Sale is "Cash With Acceptance," or the case is fully funded with FMS Credit (Non-Repayable) and/or MAP Merger, the total cash value is less than $5M, and cash flow financing is not authorized, the Amount Due with Amendment Acceptance will equal the increase in case value.

C9.9.3.2. Payment Schedule Revision Format for Modification. Modifications use the payment schedule format in Table C9. T12. When either the Term of Sales is "Cash With Acceptance," or the case is fully funded with FMS Credit (Non-Repayable) and/or MAP Merger, the total cash value is less than $5M, and cash flow financing is not authorized, the next quarterly payment due will equal the increase in case value.

This change will be included in the automated version of the SAMM found on the DSCA Web Page as SAMM E-Change 28. If you have any questions concerning this change please contact DSCA/BUSOPS-FPS points of contact Jan Rakickas, 303-676-6172, e-mail Jan.Rakickas@dfas.mil, or Candy Donaldson, 303-676-5905, e-mail Candy.Donaldson@dfas.mil.

Keith B. Webster
Director
Business Operations/Comptroller

DISTRIBUTION :

DEPUTY ASSISTANT SECRETARY OF THE ARMY
FOR DEFENSE EXPORTS AND COOPERATION
DEPARTMENT OF THE ARMY
ATTN: SAAL-NP

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 GEOSPATIAL- INTELLIGENCE AGENCY

DIRECTOR, DEFENSE THREAT REDUCTION AGENCY

DIRECTOR, DEFENSE REUTILIZATION AND MARKETING SERVICE

DIRECTOR, DEFENSE CONTRACT MANAGEMENT AGENCY

DIRECTOR, DEFENSE INFORMATION SYSTEMS AGENCY

DIRECTOR, DEFENSE LOGISTICS INFORMATION SERVICE

DEPUTY DIRECTOR FOR INFORMATION ASSURANCE,
NATIONAL SECURITY AGENCY

DIRECTOR FOR SECURITY ASSISTANCE,
DEFENSE FINANCE AND ACCOUNTING SERVICE - DENVER CENTER

CC :

USASAC
SATFA TRADOC
NAVICP
AFSAC
DISAM
STATE/PM-RSAT