Lines and notes are included for illustration purposes only.

  1. Case Identifier. Each case includes a unique case identifier (XX-X-XXX) composed of the Security Cooperation Customer code, the IA code, and a case designator. The case designator is a three-position code assigned by the IA. The chart below shows the letters used by the Military Departments to assign case designators. This chart is for information purposes only and does not mandate use of these first-position letters. Case designations are the responsibility of the IA.

    U.S. Army

    U.S. Navy

    U.S. Air Force

    B

    Repair Parts

    D

    Training OCONUS (SATMO)

    G

    SELPO/Communications Security

    H

    Construction (Corps of Engineers)

    I

    Excess Defense Articles

    J

    SDAF

    K

    Foreign Military Sales Order (FMSO) I and II

    L

    Leases

    M

    Medical (U.S. Army Medical Materiel Agency)

    N

    Coproduction

    O

    Training CONUS (TRADOC)

    P

    Planning

    Q

    Materiel/Services (from U.S. activities located in Europe

     

    S

    Materiel/Services (from U.S. Army Security Assistance Agency – Latin America)

    T

    Publications

    U-Z

    Materiel/Services provided from various Life Cycle Management Commands (including but not limited to system package sales, munitions, spare parts, equipment, technical services, maintenance, etc.)

    A

    Ammunition and Other Explosives

    B-C

    Individual Spares and Components

    G

    Technical and Engineering Services

    H-J

    Direct Requisitioning Procedures

    K

    FMSO (KA or KS – FMSO I and KB-KR or KT-KW – FMSO II

    L

    Major End Items (components and equipment)

    M

    Repair and Return

    P

    Cartridge Actuated Devices (CAD), Propellant Actuated Devices (PAD), Aircrew Escape Propulsion Systems (AEPS)

    R

    Open End Requisitioning Procedures

    S

    Weapon System Sale (Ship or Aircraft)

    T

    Training

    Z

    Leases

    A

    Munitions (AFLC)

    C

    Cartridge Actuated Devices/Propellant Actuated Devices (CAD/PAD)

    D

    Communication/ Electronic System Sale

    E

    Equipment (Blanket)

    F

    Targeting

    G

    Services

    H

    Section 30 Sales

    I

    Contingency Support

    K

    FMSO (KA – FMSO I and KB-KW – FMSO II

    L

    Equipment (Defined)

    M

    Maintenance

    N

    Special Support

    O

    Communications Security (COMSEC)

    P

    Publications

    Q

    Systems Sustainment Support

    R

    Spares

    S

    Aircraft System Sale

    T

    Training

    V

    Major Modifications

    X

    Special Financial (Reserved for DFAS-IN/JAX

    Y

    Missile System Sale

    Z

    Leases

  2. Purchaser’s Reference. The LOR date, serial number, etc. is entered in the “Based on” field.

    BN-Q-SEH
    Page 21 of 25

     

     

  3. Term(s) of Sale. Term(s) of Sale indicate when payments are required and whether the LOA is financed with cash or credit. Table C9.T11. of this Manual provides details on the various types. The terms must be recorded on the first page of each LOA. LOAs that include multiple sources of funding must list all sources and include a dollar breakout for each credit term used.
  4. DSCA Congressional Notification Transmittal Number. Include the DSCA transmittal number used in the statutory Congressional notification (e.g., Congressional Notification 92-15) when applicable. When multiple notification numbers apply, they must all be listed.

  5. Offer Expiration Date (OED). Each LOA document includes an OED indicating the last date on which the purchaser may accept the offer. The OED is normally 85 days (25 days for administrative processing and 60 days for Security Cooperation Customer review) from Military Department Approval (MILAP) in the Defense Security Assistance Management System (DSAMS), except for countries that have been approved a longer OED as reflected in the below chart. For countries listed in the chart below with an OED longer than 85 days, the Security Cooperation Customer review time is the OED minus 25 days.

    Long OEDs: The purchaser can submit request for OEDs longer than the approved timeframes reflected in the below chart on a countrywide or case-by-case basis to the applicable IA. If the IA concurs, it enters a case remark in the DSAMS that the LOA document contains an OED that is longer than the approved timeframes reflected in the below chart, and forwards it to DSCA (Strategy, Plans, and Policy Directorate (SPP)) for approval. The validity of the data may decrease as the length of time from offer increases. The chart below reflects the current Security Cooperation Customer timeframes that should be used unless an exception is granted.

    Short OEDs: Short OEDs are used for USG driven requirements (e.g., where the price estimates are dependent on contract award by a certain date). Short OEDs should not be used for purchaser-driven needs or as a means to expedite LOA documents through the review and countersignature process. If the purchaser has less than the OED minus 25 days, the IA must include the mandatory short OED LOA note (see Appendix 6 on LOA Notes). The standard OED is used even when it is anticipated that the purchaser may accept the LOA document early. Using the standard OED allows the purchaser to accept the LOA document early (e.g., purchaser driven needs such as internal budget requirements, etc.), but also allows the purchaser the normal review time when early acceptance does not occur. This eliminates unnecessary pen and ink changes that are required to revise the OED when early acceptance does not take place.

    BN-Q-SEH
    Page 22 of 25

     

     

    Security Cooperation Customer

    Number of Days from
    Implementing Agency Signature
    to OED

    Egypt

    115

    Germany

    115

    Greece

    115

    India

    180

    Indonesia

    145

    Israel

    115

    Italy

    130

    Korea

    120

    Kuwait

    180

    Morocco

    115

    Pakistan

    115

    Philippines

    145

    Portugal

    120

    Saudi Arabia

    180 (Air Force cases)
    180 (Navy Cases)
    140 (Army Cases)
    150 (all other cases)

    Spain

    115

    Taiwan

    120

    Turkey

    100

    Yemen

    115

    All Others

    85

  6. Item Number. Each LOA includes three position numeric LOA line numbers (e.g., 001, 002).

  7. Description/Condition Field. For each line item this field must include a Generic Code and Military Articles and Services List (MASL) line data, National Stock Number (NSN) or part number (if applicable), MDE (Y)/SME (S)/non-MDE (N), MTCR, EUM code, a description of the articles or services, whether the materiel is classified or unclassified, CONUS or OCONUS travel and the condition code (if other than A1 condition) or reference to a note in which the condition is shown. Appendix 4 of this Manual contains the entire list of Generic Codes. References to other information within the LOA may also be included, e.g., for weapon systems, the reference may relate to an attachment or note of the LOA that includes more descriptive information.

    The LOA must contain a separate line for each article with a MASL line that is measured in units (any unit of issue other than “XX”). Any MDE/SME or other reportable items (e.g. Classified Materiel) must be listed separately on the LOA---they may not be embedded within a line item for Non-MDE equipment. For LOAs with more than one significant article or service, lines are listed in order from most to least substantial. After the major items, the remaining lines are in order by generic code. The purpose of this order is for ease of reading. If there are compelling reasons for listing the lines in a different order, the IA may decide to do so, on a case-by-case basis.

    BN-Q-SEH
    Page 23 of 25

     

     

  8. Quantity, Unit of Issue, and Unit and Total Costs. This information is entered, as applicable. Total costs for each line are always in whole dollars. See DoD 7000-14.R, Volume 15, Chapter 7 for information on how to price.
  9. Supply Code/Months/Types of Assistance Code or Training Notes. This column includes the Supply Code (SC) (also referred to as the Source of Supply (SoS) code), defines the Months (MOS), Type of Assistance (TA) code, and training notes. These terms are defined in the LOA Information attached to each LOA. See Figure C5.F5.
  10. Offer Release Code (ORC). This code specifies notification requirements prior to shipment and must be compatible with the Delivery Term Code. See Figure C5.F5. for a complete list of ORCs. More than one code may apply for each line item.
  11. Delivery Term Code (DTC). This code specifies who is responsible for transportation and how far items are transported. The percentage associated with this code is used to compute the transportation charges in Block 11. See Figure C5.F5. for a complete list of DTCs. More than one code may apply for each line item although it is recommended that different lines be used to facilitate different computations.
  12. Charges on the LOA. Chapter 9 and DoD 7000-14.R, Volume 15, Chapter 7 identify specific pricing policies for FMS cases. The LOA includes a Net Estimated Cost that represents the total of all line items on the case. Separate entries identify Packing, Crating, and Handling (PC&H), Administrative, Transportation, or other accessorial charges that are included. These figures are added to the Net Estimated Cost to provide a Total Estimated Cost. With the exception of the Contract Administrative Services (CAS) and administrative surcharge, the percentage rate used for determining accessorial costs should not be indicated in the LOA. A note is included indicating the percentage of CAS and administrative surcharges that are applied against each line item (See Appendix 6). When calculating the administrative surcharge, if the calculated amount is less than $15,000, a Small Case Management Line (SCML) must be added as a line item on the case to recover the difference between the calculated administrative surcharge and $15,000. See Section C9.4.7. of this Manual for more information on the SCML.
  13. Estimated Payment Schedule. Unless the initial deposit constitutes the total value of the LOA, each LOA must include a payment schedule. This payment schedule shows the calendar dates when each payment is required and the amount due on each calendar date. The total of these amounts is equal to the amount reflected on the LOA “Total Estimated Cost” line. See Section C9.9. of this Manual for more information on payment schedules.

  14. Ordering of LOA Notes. Notes should be included to provide detailed information about what is being sold. Appendix 6 provides information on mandatory notes. To ensure consistency, notes should be included in the following order.

    BN-Q-SEH
    Page 24 of 25

     

     

    Order

    Description

    1

    Line item description notes. Each line should have a separate item description note. The sample LOA in Figure C5.F3. has five lines so there are five item description notes. If all line item description information fits beneath the MASL description, a line item description note is not required. If any one line item requires a line item description note, a line item description note must be included for each line item.

    2

    Case unique notes, e.g., description of the system, any purchaser responsibilities.

    3

    Mandatory notes unique to the system being sold, e.g., Man Portable Air Defense Systems (MANPADS), Computer Security (COMSEC), and Anthrax Vaccine.

    4

    Notes regarding waivers, e.g., Contract Administrative Services (CAS) and Nonrecurring Cost (NC).

    5

    Standard notes required on all cases, e.g., Administrative Surcharge, CAS, NC, Accessorial Charges, and Supply Discrepancy Report Time Limits. The Administrative Surcharge note should be the last note on the LOA.

BN-Q-SEH
Page 25 of 25

 

 

Lines and notes are included for illustration purposes only.