- Policy Memos
|Memo Status : Active|
DEFENSE SECURITY COOPERATION AGENCY
MEMORANDUM FOR :
Contract Administration Services (CAS) Fee for U.S. Army Corps of Engineers (CoE) Foreign Military Sales (FMS) Contracts (DSCA 07-33) [SAMM E-Change 86]
The Corps of Engineers (CoE) performs quality assurance and inspections and other contract administrative services on their contracts. The reference memorandum recognized that these services were included in the CoE supervision and administrative rate and directly charged to the FMS case funding the contract. The memo acknowledged the Contract Administration and Quality Assurance and Inspection portions of CAS were inappropriate for CoE FMS cases.
In recognition of this longstanding policy, the SAMM, Table C9.T2. section on FMS Contract Administration Services Surcharges is updated as provided in the attachment. This change will be included in the automated version of the SAMM found on the DSCA Web Page as SAMM E-Change 86.
If you have any questions concerning this change please contact Jan Rakickas, DSCA/DBO/FPA, 303-676-6172, DSN 926, email firstname.lastname@example.org or Patti Higgins, 703-604-6570, DSCA/DBO/FPA, email email@example.com.
DEPUTY ASSISTANT SECRETARY OF THE ARMY
DEFENSE EXPORTS AND COOPERATION (DASA-DEC)
DEPARTMENT OF THE ARMY
DEPUTY ASSISTANT SECRETARY OF THE NAVY
INTERNATIONAL PROGRAMS (NAVIPO)
DEPARTMENT OF THE NAVY
DEPUTY UNDER SECRETARY OF THE AIR FORCE
INTERNATIONAL AFFAIRS (SAF/IA)
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 LOGISTICS INFORMATION SERVICE
DEPUTY DIRECTOR FOR INFORMATION ASSURANCE,
NATIONAL SECURITY AGENCY
DEPUTY DIRECTOR FOR SECURITY ASSISTANCE,
DEFENSE FINANCE AND ACCOUNTING SERVICE - DENVER CENTER
CAS Changes to SAMM Table C9.T2
|Charge||Description||How Priced||Applied by - for billing||References|
|Contract Administration Services (CAS) Surcharge||Contract is comprised of three basic elements: (1) quality assurance and inspection; (2) contract management; and (3) contract audit.||Included in value of procurement line items (Source of Supply (SOS) of "P" or "X") on the LOA.
A surcharge applies to each element.
May be waived if reciprocal agreements exist.
For cases implemented before 1 Oct 2002, a surcharge of .5% applies to each element for a maximum of 1.5% if all elements apply to a given FMS case.
|DFAS Denver||AECA, section 21(h) DoDFMR, Volume 15, Chapter 7, paragraph 070405|
|For cases implemented on or after 1 Oct 2002 that have contracts administered overseas an additional element (OCONUS CAS) applies.||For cases implemented on or after 1 Oct 2002, a surcharge of .65% applies to contract administration/ management, .65% to quality assurance and inspection, .20% to contract audits, for a total of 1.5%. For contracts administered overseas an additional .20% (OCONUS CAS) applies to the entire case.|
|For Corps of Engineers contracts, quality assurance and inspections and other contract administrative services costs are included in its supervision and administration costs charged to the case line.||For Corps of Engineers (CoE) cases implemented before 1 Oct 2002, a surcharge of .5% for contract audit is applied.
For CoE cases implemented on or after 1 Oct 2002, a surcharge of .2% for contract audit is applied.
The .2% OCONUS CAS does not apply to CoE contracts administered overseas.