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DSCA 07-33

Memo Status : Active
DoD Shield

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

8/29/2007

MEMORANDUM FOR :

SEE DISTRIBUTION

SUBJECT :

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]

REFERENCE :

 

  1. DSCA Memorandum I-060185/90, 25 July 1990

 

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 jan.rakickas@dfas.mil or Patti Higgins, 703-604-6570, DSCA/DBO/FPA, email patricia.higgins@dsca.mil.

Ann Cataldo
Principal Director
Business Operations

ATTACHMENT :
As stated

DISTRIBUTION :

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

CC :

STATE/PM-RSAT
USDP/ISP
DISAM
USASAC
SATFA TRADOC
NAVICP
NETSAFA
AFSAC
AFSAT
JFCOM
SOCOM
EUCOM
CENTCOM
NORTHCOM
PACOM
SOUTHCOM

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.