- Policy Memos
|Memo Status : Active||Notes : References DSCA Policy 04-30|
DEFENSE SECURITY COOPERATION AGENCY
MEMORANDUM FOR :
DEPUTY UNDER SECRETARY OF THE AIR FORCE
FOR INTERNATIONAL AFFAIRS
DEPUTY ASSISTANT SECRETARY OF THE ARMY
FOR DEFENSE EXPORTS AND COOPERATION
DEPUTY ASSISTANT SECRETARY OF THE NAVY
FOR INTERNATIONAL PROGRAMS
DIRECTOR, DEFENSE CONTRACT MANAGEMENT AGENCY
DIRECTOR FOR SECURITY ASSISTANCE, DEFENSE FINANCE AND ACCOUNTING SERVICE - INDIANAPOLIS OPERATIONS
DIRECTOR, DEFENSE INFORMATION SYSTEMS AGENCY
DIRECTOR, DEFENSE LOGISTICS AGENCY
DIRECTOR, DEFENSE LOGISTICS INFORMATION SERVICE
DIRECTOR, DEFENSE REUTILIZATION AND MARKETING SERVICE
DIRECTOR, DEFENSE THREAT REDUCTION AGENCY
DIRECTOR, NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY
DEPUTY DIRECTOR FOR INFORMATION ASSURANCE, NATIONAL SECURITY AGENCY
Updated Policy for Excess Defense Articles (EDA) Transfers on Letter of Offer and Acceptance (LOA) Documents; DSCA Policy 10-17; [SAMM E-Change 133]
This memorandum updates Chapters 5, 9, and 11 of the Security Assistance Management Manual (SAMM) on procedures for preparing EDA LOA documents.
Referenced memorandum established temporary procedures for listing defense articles transferred by EDA grant authorities as line items on LOAs. These procedures were expected to cover an 18-month test period before being incorporated into the SAMM. This change was instituted to comply with U.S. Customs requirements and to provide Customs a standard means to identify and process EDA grant transfers in the same manner as EDA sales without introducing new forms or procedures.
The change at TAB A updates the SAMM to reflect current policies and procedures.
Grant EDA listed as line items improves management, reporting, and assists the MILDEPs in providing accurate data on EDA transfers. Finally, the addition of an LOA note for grant EDA items will ensure recipient military organizations are aware of, and comply with, terms and conditions for granted defense articles relating to end-use, retransfer, security, and return of net proceeds from sale or disposal.
This guidance reflects current practice and is effective immediately.
If you have any questions regarding this policy, please contact Mr. Michael Slack, DSCA/STR/POL, at (703) 601-3842; or email: firstname.lastname@example.org or Ms. Michelle Davis, DSCA/STR/POL, at (703) 601-3843; or email email@example.com
Updated Policy for Excess Defense Articles (EDA) DSCA Policy 10-17
Security Assistance Management Manual [SAMM E-Change 133]
In the note "Excess Defense Articles (EDA) - Sales: Condition of Materiel," in Chapter 5, Table C5.T5., replace the Title and Note Usage section with the versions below:
|Mandatory for LOAs that involve EDA.
Mandatory for Amendments and Modifications that add EDA sale or grant items.
See Chapter 11, section C11.5.
Replace the note "Excess Defense Articles (EDA) - Sales" in Chapter 5, Table C5.T5., with the version below:
|Mandatory on LOAs that involve EDA. This note should be included at the bottom of the item description for that line.
Mandatory for Amendments and Modifications when an EDA sale or grant line item is added or changed.
See Chapter 11, section C11.5.
|"Excess Defense Articles, Original Acquisition Value is $ ____________. Current Estimated Value is $ ____________.|
Revise Chapter 5, Figure C5.F4., Letter of Offer and Acceptance (LOA) Information by inserting the following Type of Assistance Code:
A - FAA Excess Defense Articles - non-reimbursable, provided under the authority of Section 516 of the Foreign Assistance Act (FAA) of 1961, as amended.
Revise Chapter 9, C9. T8., by inserting at the end EDA Grant Term of Sale as follows:
|Term of Sale||Application|
|EDA Grant||. Applies to Excess Defense Article - non-reimbursable grant transfers as provided in Section 516 of the FAA of 1961, as amended.|
In Chapter 11, Table C11.T8., replace steps 11, 12, and 13 with the following revised text:
|11 - Authorization to Offer EDA||For EDA sales or grant transfers, DSCA Programs sends a message to the MILDEP authorizing the offer and transfer of items to the proposed country. An information copy is sent to the SCO, DoS, the Combatant Commander, the Chairman of the Joint Chiefs of Staff (J-5), and Maritime Administration (MARAD). Each message contains a Record Control Number (RCN) associated with the grant transfer that is used for requisitions. MILDEPS should not submit LOAs for EDA grants, sales, or associated services to DSCA prior to their receipt of DSCA's authorization message.|
|12 - LOA Preparation and Processing||
The MILDEPs prepare an LOA for the grant EDA items, any EDA items being sold, and/or any supporting services or non-EDA articles associated with the transfer. For cases in which EDA is not the primary item being transferred, normal case writing rules apply. For cases in which EDA is the primary item being transferred, the following three steps apply:
The following additional rules apply for any line of any case in which EDA is being transferred by grant or sale:
|13 - Related Shipping Documentation||The Implementing Agency is required to complete a DD 1348-1a, "Issue Release/Receipt Document;" DD 1149, "Requisition and Invoice/Shipping Document;" or other equivalent form, such as a DD 250 "Material Inspection and Receiving Report," as official documentation of delivery.|