Overview

Basic Cases

Amendments and Modifications

Building Partner Capacity Letters of Offer and Acceptance

Special Letter of Offer and Acceptance Topic Areas

Consistent terminology and acronyms: MOS = Months, U.S. = United States (used for adjectives only, if a noun, spell out), "Purchaser" (not "Customer") used for Foreign Military Sales (FMS) and "Benefitting Partner" used for Building Partner Capacity (BPC) cases, date fully spelled out (e.g. "12 January 2025"), and the ESAMM Glossary and Acronym listing used throughout LOA.

Glossary (SAMM Glossary)

Acronyms (SAMM Acronym Listing)

Classified Letter of Offer and Acceptance data: Classified data cannot be entered into DSAMS. The SAMM has detailed guidance on how to process classified LOAs. Classified documentation associated with the development of an LOA must be sent via the Secret Internet Protocol Router Network (SIPRNET).

Section C5.4.3.4. "Classified Letters of Offer and Acceptance," Section C5.4.14. "Preparing Classified Letters of Offer and Acceptance," and Section C5.4.17.1.3.1. (for SIPRNET Email addresses)

U.S. Government Equivalent Classification: Letters of Request (LORs) must have the equivalent USG classification markings to ensure only unclassified information is documented on the LOA and uploaded in the Case Tracking System (CTS) LOA package.

Section C5.4.17.1.3.1.1.

Purchaser Reference: LORs in chronological order, oldest to newest, with Purchaser name, reference and date, or signed Meeting Minutes and date.

Figure C5.F6. "Instructions for Preparing a Letter of Offer and Acceptance"

Case Description: General description/brief overview of the defense articles and services being provided to Purchaser or Benefitting Partner.

Offer Expiration Date: DSAMS will automatically generate Offer Expiration Date (OED), unless the IA identifies and manually enters a short or long OED.

Personal Identifiable Information: Exclude any information that would identify a person is prohibited from the LOA.

Restated Letters of Offer and Acceptance: If a document is in Offered Status and sent to the Purchaser but then requires a change, the new document is considered Restated. If the document is in Offered Status but not yet actually sent to the Purchaser, then it does not need to be classified as a Restated document.

Section C5.4.2.3.2. "Restatements"

Figure C5.F6. "Instructions for Preparing a Letter of Offer and Acceptance"

State Description: This description, entered by the IA, provides the Department of State (State) LOA details, and should include Major Defense Equipment (MDE) items and quantities, services and end-item supported.

Table C5.T11. "Implementing Agency Responsibilities concerning the State Description"

Term of Sale: Dependable Undertaking (DU) and Cash Prior to Delivery are only authorized for countries identified as Arms Export Control Act (AECA) eligible and DU eligible, lines on the case must match Term of Sale (ToS) (DU for Procurement lines and Cash Prior to Delivery for Stock lines), other special ToS must have advanced coordination with DSCA Country Finance Directors.

Table C4.T2a. "Security Cooperation Customer and Regional Codes and Foreign Military Sales Eligibility"

Table C9.T11. "Terms of Sale"

Payment Schedule: Payment schedules entered by DSCA (Office of International Operations, Global Execution Directorate, Case Writing and Development Division (IOPS/GEX/CWD)) are based on ToS and what is authorized for the Purchaser, with the timing of payments determined by the OED of the case. Payments are quarterly, based on the line value, MOS, and on costs incurred the next quarter. For FMS cases, the Initial Deposit must cover a portion of the Administrative Surcharge, Non-recurring Cost (NC) charges which have not been waived, plus any costs incurred prior to the first quarterly payment.

Section C9.9. "Payment Schedules"

Table C9.T16. "Payment Schedule Dates"

Section C9.9.1.5. "Payment Distribution" and Section C9.9.1.5.1. "Initial Deposit"

Line Information: This includes the following data fields: Description, Military Articles and Services List (MASL), Unit of Issue, Source Code, Type of Assistance, Offer Release Codes and Delivery Term Codes, and other required information.

Figure C5.F6. "Instructions for Preparing a Letter of Offer and Acceptance"

Figure C5.F24. "Military Articles and Services List Form and Instruction Sheet"

Letter of Offer and Acceptance Notes: Notes are added (either by the IA or DSCA) based on what is provided in the LOA. Most of the notes appear after the LOA payment schedule, while some notes (continental United States (CONUS) Training and outside continental United States (OCONUS) Travel notes for example) are added to the Line Description. It is imperative that the IA reviews all the notes in Appendix 6 to ensure proper application.

Appendix 6 - "Letter of Offer and Acceptance Notes Listing"

CAC-SAMM Appendix 6a "Letter of Offer and Acceptance Notes Listing" (DoD CAC Holders Only)

Purchaser Reference: Amendments would follow the same rules as for Basics. For Modifications, this field should read "per U.S. Government Review" with no date, unless there is correspondence with Purchaser.

Section C6.T8. "Instructions for Preparing an Amendment or Modification"

Case Description: Key components are to identify the LOA changes, reasons for the changes, and identification if the document is being processed for full case closure. It’s critical to know the exact reason for all line changes to determine whether there is a change of scope.

EXAMPLES:

• This Amendment provides for two additional C-130J aircraft and increases associated equipment, technical orders, technical assistance and Air Force Materiel Command (AFMC) Services (C-130J Aircraft).
• This Modification decreases several lines to the highest financial requirement and corrects the Foreign Military Sales (FMS) Administrative Surcharge on all applicable lines (SG-84C and SYV-5 Technical Assistance).
• This Modification extends the Months on support equipment line due to contract slippage and delayed delivery. There is no change in scope to this document. (F-15 Support)
• This Modification is for CASE CLOSURE, which decreases all remaining lines to the highest financial requirement (Ammunition).
• This Amendment is a RESTATED document which supersedes the previous version offered on 16 July 2016. It provides for on-site maintenance support, repair and return services, and spares replenishment for an existing AH-64E Longbow Crew Trainer (LCT) and Tactical Engagement Simulation System (TESS) (AH-64E Simulator Support).

Section C6.T8. "Instructions for Preparing an Amendment or Modification"

Section C6.7.1.2. "Case Description"

Payment Schedule: The IA should review payment schedules annually due to changes to delivery schedules, costs, and collections, by submitting Amendments or Modifications to DSCA (IOPS/GEX/CWD), who will update the payment schedule.

Section C9.9.3. "Payment Schedule Revisions"

Scope: Changes to scope determines the use of an Amendment or Modification, and whether or not the change can be on a line with an old administrative surcharge rate. The case description must be very clear on whether there are scope changes to each line. Table C6.T7. identifies what is allowable on a Modification. If not in this table, then it must be done on an Amendment or possibly Concurrent Modification.

Section C5.4.3. "Types of Foreign Military Sales Cases"

Section C6.7.1.2. "Case Description"

Table C6.T7. "Modification for FMS Cases"

State Description: This field must identify added items or services, as well as the end item being supported. Required for Concurrent Modifications due to scope changes.

Section C5.T11. "Implementing Agency Responsibilities concerning the State Description"

Section C6.7.3.2. "Concurrent Modifications"

Letter of Offer and Acceptance Notes: Unless identified in Appendix 6, LOA notes from previous versions of the case will not be restated on subsequent Amendments or Modifications. Lines deleted must have corresponding line-item description notes deleted. It is imperative the IA reviews all the notes in Appendix 6 when developing an LOA to ensure proper note application.

Appendix 6 "Letter of Offer and Acceptance Notes Listing"

CAC-SAMM Appendix 6a "Letter of Offer and Acceptance Notes Listing" (DoD CAC Holders Only)

Building Partner Capacity Materiel Cases: These cases will process through DSCA (Office of International Operations, Global Execution Directorate, Case Writing and Development Division (IOPS/GEX/CWD)) and have specific Defense Security Assistance Management System (DSAMS) requirements for: Customer Request (CR), State Description field, Offer Release Codes (ORCs), Delivery Term Codes (DTCs), and Indirect Charges.

Table C15.T3A. "Instructions for Preparing Building Partner Capacity Materiel Cases"

Table C15.Legacy.T3. "Instructions for Preparing Building Partner Capacity Materiel Cases"

Building Partner Capacity Training Cases: These cases will NOT process through DSCA (IOPS/GEX/CWD) but will go directly from the Implementing Agency (IA) to DSCA Office of Business Operations (OBO) for review. Once approved by DSCA (OBO), cases move to Proposed status for review by State’s Bureau of Political-Military Affairs, Office of Regional Security and Arms Transfers (PM/RSAT).

Table C15.T3B. "Instructions for Preparing Building Partner Capacity Training Grant"

$0,1,2 etc. Minimal-dollar Value (Non-Executable) Lines: Minimal-dollar value lines should not be included except for one of the SAMM exceptions. For Amendments and Modifications, unused lines should be deleted, not reduced to zero.

Section C6.7.6. "Reduction of Value on Unused Foreign Military Sales and Building Partner Capacity Cases"

Section C6.7.6.2. "Minimal-Dollar Value Lines on Letters of Offer and Acceptance"

36(b) Congressional Notification: New Congressional Notifications (CNs) must have CN Defense Security Assistance Management System (DSAMS) milestones loaded and cannot be offered until formal notification period has expired. DSAMS RP533 is used to quality check CN on the LOA, and the CN number must be added using DSAMS drop-down menu.

Note: Implementing Agencies (IAs) should not include Congressional Notification Balance Sheet (RP533) in CTS LOA Package.

Section C5.5.3. "36(b) Congressional Notification Requirements"

For issues related to DSAMS CN Tables, IA POCs can contact the DSCA CN Team at dsca.ncr.dsa.mbx.cns@mail.mil.

Agent Sales W7 and Lead Nation N4: Both Agent Sales and Lead Nation cases have similar attributes, with respect to requirements for nickname, pricing, identification of participating countries, and special notes. A special Lead Nation note must be included in the Case Tracking System (CTS) LOA package. Lead Nation cases can be from either an International Organization (IO) or country, while an Agent Sale is from an IO to one or more countries.

Section C5.6.2. "Lead Nation Procurements"

Section C5.6.2.5. "Case Development" [Lead Nation]

Section C5.6.3. "Agent Sales"

Section C5.6.3.5. "Case Development" [Agent Sales]

Classified Items and Classified Publications and Technical Orders: Classified items must be on defined order lines, with the exception of classified publications, manuals and reports, which have special conditions: not mixed on a line with unclassified, classified Military Article and Services List (MASL) used, quantities provided in line-item note, and special statement that only the USG is authorized to acquire. Classified items also require special Offer Release Codes (ORCs) and Delivery Term Codes (DTCs).

Section C5.4.3.1.2. "Items Provided on Defined Order Cases or Lines"

Section C5.4.3.2.2. "Items Provided on Blanket Order Cases or Case Lines"

Table C5.T7. "Blanket Order Case Conditions for Classified Publications"

Table C7.T6. "Offer Release Codes"

Communications Security: Communications security (COMSEC) equipment requires National Security Agency (NSA) release (included in the CTS LOA package) unless item provided is under NSA general release, or on an NSA "M" case; also COMSEC equipment is required to be on Enhanced End Use Monitoring (EEUM) lines.

Section C8.4.1.4.

Concurrent Modifications: Use the Concurrent Funding Tab in Case Detail in Defense Security Assistance Management System (DSAMS) and link both Modifications in CTS.

Section C6.7.3.2. "Concurrent Modifications"

Cooperative Logistics Supply Support Arrangements: Cooperative Logistics Supply Support Arrangements (CLSSAs) are special cases consisting of a Foreign Military Sales Order (FMSO) I and FMSO II with unique Type of Assistance (TA) codes. The FMSO I case is used to sustain spares and repair parts in the DoD inventory and the Purchaser is only required to pay 30 percent of the line value plus a 5 percent surcharge, with special Terms of Sale (ToS) and no administrative surcharge. The FMSO II case is for actual Purchaser requisitions, with the Purchaser paying the total case value and the normal administrative surcharge.

Section C5.4.3.3. "Cooperative Logistics Supply Support Arrangements"

Figure C5.F5. "Letter of Offer and Acceptance Information" [Paragraph 2.f. for Type of Assistance codes for FMSO I (TAU) and II (TAV)]

Table C9.T11. "Terms of Sale" [Cash with Acceptance/Balance as Billed for FMSO I]

Exception to Policy: Exceptions to Policy (ETPs) should be very rarely used and must be very specific. DSCA Policy ETP approval must be in the DSAMS Case Remarks along with CTS LOA package requirements noted in SAMM C6.7.5.2.

Section C6.7.5. "Request for Exceptions to Policy"

Excess Defense Articles: Excess Defense Articles (EDA) Grant or Sales have specific requirements for Nickname, Term of Sale, Case Description, Source Codes, and notes. CTS LOA packages must include copy of EDA Approval Notification. The LOA must not exceed this notification, and values must all be consistent within the LOA lines and notes.

Appendix 6 "Letter of Offer and Acceptance Notes Listing" Search "EDA"

CAC-SAMMCAC-SAMM Appendix 6a - "Letter of Offer and Acceptance Notes Listing" (DoD CAC Holders Only) Search "EDA"

Appendix 8 - Excess Defense Articles

Figure EDA.F1. Excess Defense Article Process Flow

Exception to Policy: Exceptions to Policy (ETPs) should be very rarely used and must be very specific. DSCA Policy ETP approval must be in the DSAMS Case Remarks along with CTS LOA package requirements noted in SAMM C6.7.5.2.

Section C6.7.5. "Request for Exceptions to Policy"

Excess Defense Articles: Excess Defense Articles (EDA) Grant or Sales have specific requirements for Nickname, Term of Sale, Case Description, Source Codes, and notes. CTS LOA packages must include copy of EDA Approval Notification. The LOA must not exceed this notification, and values must all be consistent within the LOA lines and notes.

Appendix 6 "Letter of Offer and Acceptance Notes Listing" Search "EDA"

CAC-SAMM Appendix 6a "Letter of Offer and Acceptance Notes Listing" (DoD CAC Holders Only) Search "EDA"

Appendix 8 Excess Defense Articles

Figure EDA.F1. Excess Defense Article Process Flow

Financial Line Review: Touched lines must be correct on all documents; however, both touched and untouched lines must be correct on documents being processed for case closure. Any waived or overridden costs must have an Indirect Pricing Category (IPC) comment explaining the reason for the waiver. IAs must also document lines with financial imbalances (e.g. lines being reduced below current commitments/obligations) in a DSAMS Case Remark.

Section C9.4.9. "Line Level Review Related to Letters of Offer and Acceptance"

Section C9.4.9.1.3. ""Touched" and "Untouched Lines" on Letters of Offer and Acceptance Amendments and Modifications"

Section C9.4.9.2. "Continuous Review of Financial Obligations, Commitments, Delivery, and Billing"

Future Correction: A future correction can be used to identify errors to be corrected on the next document and entered as a DSAMS Milestone (can be viewed in DSAMS RP-434). Cannot be used for Case Closure documents.

Section C9.4.9.1.2.1.1.

Global Positioning System (GPS)/Precise Positioning System (PPS) Selective Availability Anti-Spoofing Module (SAASM): CTS LOA packages must include USAF Space Force and State Department Missile Technology Control Regime (MTCR) approvals.

Section C3.7.3.3.3.

Section C3.7.3.4.3.

CAC-SAMM Appendix 6a "Letter of Offer and Acceptance Notes Listing" (DoD CAC Holders Only) Search "GPS"

Manpower Travel Data Sheets: Manpower Travel Data Sheets (MTDSs) are required for all FMS case lines with manpower having direct costs funded by the Purchaser based on FMS Case-Related Manpower Function and Funding Source Matrix. Costs must be reasonable and based on current personnel salary tables and consistent throughout the LOA. Travel costs should be less than $1K per day, per person, and per trip unless justified in the line note. MTDS is required on Amendments and Modifications for any changes to manpower lines. MTDS not required if manpower is listed on the MTDS exception list. The line note should include justification for case-funded manpower IAW with Table C9.T2A. & Table C9.T2B. The use of the term "above Standard Level of Service (SLS)" in a line note is not allowed.

Section C9.4.2.4. "Foreign Military Sales and Title 10 Building Partner Capacity Manpower Reporting Requirement"

Table C9.T2A. "FMS Case-Related Manpower Functions and Funding Source Matrix"

Table C9.T2B. "BPC Case-Related Manpower Functions and Funding Source Matrix"

Section C9.4.2.4.1.1.2. "Reasonable Assessment of Travel Costs"

Section C9.4.2.4.4. "Manpower Travel Data Sheets Exemptions"

Missile Technology Control Regime: Missile Technology Control Regime (MTCR) defense articles require State approval in the CTS LOA package. This applies to Basic Cases and Amendments with increased scope of MTCR defense articles.

Section C3.7.1.1.3.

Months and Estimated Delivery by Quarter: For Basic Cases, Months (MOS) are calculated based on the Offer Expiration Date (OED).

For Amendments and Modifications:

• If Basic implemented before 1 Jan 2011, use the Basic Case Acceptance Date
• If Basic implemented on/after 1 Jan 2011, use Basic Case Implementation Date

The Estimated Deliveries by Quarter/Estimated Delivery Schedule must align and be consistent with the MOS.

Figure C5.F5. "Letter of Offer and Acceptance Information" paragraph 2.e.

Section C5.4.8.5. "Estimated Delivery Schedule"

Night Vision Devices: DSCA Authorization Memorandum is required to be in CTS LOA package for man-portable Night Vision Devices (NVDs) (not platform mounted NVDs), including image intensifier tubes, thermal NVD/cameras and infrared NVDs.

CAC-SAMM Table C8.T4. "Defense Articles Designated for Enhanced End Use Monitoring for all Foreign Military Sales-eligible Countries" (DoD CAC Holders Only)

Nonrecurring Charges: Major Defense Equipment (MDE) may have applicable NC that may/may not be waived on the LOA. Nonrecurring Charge (NC) Recoupment Charge Waivers are required to be in the CTS LOA package. MASL on NC Recoupment Charge Waiver must match LOA. NC does not apply to cases that are fully funded by Foreign Military Finance (FMF) or to BPC cases.

Section C9.4.5. "Nonrecurring Cost Recoupment Charges"

Appendix 1 "Nonrecurring Cost Recoupment Charges for Major Defense Equipment"

Non-Specific Requirements Lines: Undefined requirements using MASL "079200N0NSPRQ," must be less than 10 percent of the Total Case Value, Source Code of "S", with no ORC, DTC or MOS, and cannot be used on BPC or FMF funded cases. Specific line note verbiage must be used per standard Line-Items Description Note.

Section C5.4.13. "Non-Specific Requirements Lines"

Appendix 6 "Line Item [Insert Line Item Number] Description" Note

Parts and Repair Ordering System, Commercial Repair and Return and Simplified Non-Standard Acquisition Program: Parts and Repair Ordering System (PROS), Commercial Repair and Return (CR&R), and the Simplified Non-Standard Acquisition Program (SNAP) all special programs to provide non-standard parts and repair services. An Army Program Support Charge is required for CR&R and SNAP programs, and Contract Administration Services (CAS) do not apply to fully dedicated PROS lines. Special notes also apply (see Appendix 6).

Table C9.T4. "Table of Charges"

Purchaser Requested Payment Schedule: The Purchaser can request a unique payment schedule (UPS), but it must be approved by the IA. DSCA (IOPS/GEX/CWD) will compare the UPS to the DSAMS standard payment schedule to determine if it will meet forecasted requirements. A revised UPS must be provided by the IA for Amendments and Modifications that request a continuation of the UPS.

Section C9.9.2. "Purchaser-Requested Schedules"

Sole Source: Officially known as "procurement using other than full and open competition," a request must be submitted by the Purchaser and approved by the IA. Sole source is only for Procurement (contractor) lines, not USG-provided Stock lines. Adding new sole source requires a new sole source request, which can be on Amendments or Modifications. FMS and BPC cases have distinct sole source standard notes to be added by the Implementing Agency (IA).

Section C6.3.4. "Requests for Other than Full and Open Competition"

Section C6.3.4.2. "Timing of Requests" [adding Sole Source to Amendments and Modifications]

Special Defense Acquisition Fund: Special Acquisition Fund lines use the Source of Supply "F," special pricing coding must be used, and the IA must include the Financial Analysis Worksheet (FAW) and Asset Allocation Form (AAF) in the CTS LOA package.

SDAF.2.1.5.3. "Section 51(b) Criteria Coding"

SDAF.6.6. "Letter of Offer and Acceptance Development Data"

Training Lines, Medical Services, and Travel and Living Allowance: Separate lines are required for every case involving training or medical services. Travel and Living Allowance (TLA) must be requested by the Purchaser in the Letter of Request (LOR), and there is no longer any requirement for a TLA waiver. Training-Blanket Order standard note must be added by the IA.

Section C10.7.8. (separate Training line required)

Section C2.1.6.2.2. (separate Medical Services line required and Travel and Living Allowance requirements)

Worldwide Warehouse: Worldwide Warehouse (WWRS) Seller lines must use MASL WWWRED1STSERV and special line note. Stand-alone WWRS Seller Cases use Cash with Acceptance-Balance as Billed or FMS Credit Terms of Sale, with special Initial Deposit and no payment schedule.

AP8.S21m.2.2. "Worldwide Warehouse Distribution Services"

Worldwide Warehouse Redistribution Services (WWRS) User Guide, October 2025