Term Definition Link
Above-the-line-cost Charges included within the materiel and/or services line may be referred to as "above-the-line" charges. This term is a holdover from the rescinded Letter of Offer and Acceptance (LOA) form (DD Form 1513) where a line divided the direct charges from the accessorial (surcharge) charges.

The act of an authorized representative of the government by which the government assumes for itself, or as agent of another, ownership of existing and identified supplies tendered, or approves specific services rendered, as partial or complete performance of the contract on the part of the contractor. See also Letter of Offer and Acceptance.

Acceptance Date

The date on which an authorized representative of the foreign partner signed the LOA document.

Accepted Case

An FMS case that has been signed by an authorized representative of the foreign partner.

Accessorial Cost

The costs of packing, crating, and handling (PC&H), and transportation which are incidental to issues, sales, and transfers of materiel and are not included in the standard price or contract cost of materiel. An exception to this is working capital fund (WCF) items.

Accrued Costs

The financial value of delivered articles and services and incurred costs reported to DFAS-IN via Delivery Transactions. Incurred costs represent disbursements for which no physical deliveries have yet occurred. Examples are: progress payments to contractors, GFM/GFE provided to contractors, and nonrecurring costs.

Actual Cost

A cost sustained in fact, on the basis of costs incurred, as distinguished from forecasted or estimated costs.

Adjustment Reply Code (ARC)

A code that identifies the type of action being taken in reply to the FMS customer supply discrepancy report [SDR (ROD)]. ARCs are transmitted to DFAS-IN by an FMS case Implementing Agency in FMS Delivery/Performance Reports.

Administrative Contracting Officer (ACO)

The U.S. government contracting officer who is assigned the responsibility for the administration of U.S. government contracts.

Administrative Cost

The value of costs associated with the administration of the FMS Program. The prescribed administrative percentage cost for a case appears in the LOA. This percentage is applied against the case. Expenses charged directly to the FMS case (as prescribed by the LOA) are not included. May be commonly referred to by the generic code "L6A" for administrative costs.

Administrative Lead-time

The time interval between the initiation of procurement action and the letting of a contract or the placing of an order.

Allocable Cost

A cost is allocable to a USG contract if it: a. Is incurred specifically for the contract; b. Benefits both the contract and other work, and can be distributed to them in reasonable proportion to the benefits received; or c. Is necessary to the overall operation of the business, although a direct relationship to any particular cost objective cannot be shown.


An authorization by a designated official of a DoD component making funds available within a prescribed amount to an operating agency for the purpose of making funding allotments (i.e., the first subdivision of an apportionment of funds).


An authorization granted within and pursuant to an allocation for the purpose of incurring commitments, obligations, and expenditures in the accomplishment of an approved budget. Therefore, an allotment is a subdivision of an appropriation that provides the funding authority for an official to accomplish a specific function or mission.


An amendment of an FMS case constitutes a scope change to an existing LOA and requires customer acceptance.

Anti-Deficiency Act

This statute prohibits government agencies and employees against authorizing or incurring obligations or expenditures in excess of amounts appropriated and apportioned by the OMB or in excess of amounts permitted by agency regulations, and establishes procedures for determining the responsibility for violations and for reporting violations to the President, through OMB and to the Congress.


A determination made by the Office of Management and Budget which limits the amount of obligations or expenditures which may be incurred during a specified time period. An apportionment may limit all obligations to be incurred during the specified period or it may limit obligations to be incurred for a specific activity, function, project, or a combination thereof.


A part of an Appropriation Act providing a specified amount of funds to be used for designated purposes. Each appropriation has a finite period of time for incurring obligations.

Appropriations Act

Legislation initiated by the House and Senate Appropriations Committees, that provides authority for Federal agencies to incur obligations and to make payments out of the Treasury for specified purposes. An appropriation act is the most common means of providing budget authority. There are thirteen regular appropriation acts for each fiscal year.

Arms Export Control Act (AECA)

The basic U.S. law providing the authority and general rules for the conduct of foreign military sales and commercial sales of defense articles, defense services, and training. The AECA came into existence with the passage of the Foreign Military Sales Act (FMSA) of 1968. An amendment in the International Security Assistance and Arms Export Control Act of 1976 changed the name of FMSA to the AECA.

Arms Transfers

The sale, lease, loan, or other transfer of defense articles and defense services such as arms, ammunition, and implements of war, including components thereof, and the training, manufacturing licenses, technical assistance, and technical data related thereto, provided by the USG under the authority of the Foreign Assistance Act (FAA) of 1961, as amended, or the Arms Export Control Act (AECA), as amended, or other statutory authority, or directly by commercial firms to foreign countries, foreign private firms, or to international organizations. See also conventional arms transfers.

Attrition [International Military Training]

The total destruction of a DoD capital asset (e.g., a training aircraft) when a foreign student was in physical control of the asset or as a direct result of negligence, simple or gross.

Auditor [Procurement]

A term used to represent the cognizant audit office designated by the Defense Contract Audit Agency (DCAA) or military service audit activities for conducting audit reviews of the contractor's accounting system policies and procedures for compliance with the criteria.

Authorization Act

Basic, substantive, legislation that establishes or continues the legal operation of a federal program or agency, either indefinitely or for a specific period of time, or which sanctions a particular type of obligation or expenditure. An authorization normally is a prerequisite for a subsequent appropriation but does not itself provide budget authority. Under the rules of both houses, the appropriation for a program or agency may not be considered until its authorization has been considered; however, failure to pass an authorization bill will not prevent enactment of an appropriations act. An authorization also may limit the amount of budget authority to be provided or may authorize the appropriation of "such sums as may be necessary."

Back Order (BO)

The quantity of an item requisitioned by ordering activities that is not immediately available for issue but is recorded as a stock commitment for future issue.

Base Year (BY)

A reference period that determines a fixed price level for comparison in economic escalation calculations and cost estimates. The price level index for the base year is 1.000.


Accessorials and/or surcharges that are not included within a line item value may be referred to as "below-the-line" charges (e.g., transportation surcharge and packing, crating, and handling (PC&H)). This term is a holdover from the rescinded LOA form (DD Form 1513) where a line divided the direct charges from the accessorial (surcharge) charges.

Benefitting Country

A partner nation that receives defense articles and/or services through the implementation of a Building Partner Capacity (BPC) case.

Bill (or Billing) Code

This is a DFAS-IN country assigned code that divides FMS customer country billings into management levels lower than a U.S. Implementing Agency or in-country service. T his code often correlates to an FMS customer paying office. It appears in Block 3 of the DD Form 645. Basic alpha codes are derived from the LOA . The FMS customer should ensure that the proper bill code is indicated upon acceptance of an LOA.

Billing Statement

The DD Form 645 Billing Statement represents the official claim for payment by the U.S. government referred to in Letters of Offer and Acceptance. It also furnishes an accounting to the FMS purchaser for all costs incurred on his behalf under each agreement.

Blanket Order Case

An agreement between a foreign customer and the U.S. government for a specific category of items or services (including training) with no definitive listing of items or quantities. The case specifies a dollar ceiling against which orders may be placed.

Budget Authority

The authority Congress gives to government agencies, permitting them to enter into obligations that will result in immediate or future outlays (expenditures). Such budget authority does not include the authority to insure the repayment of loans held by another person or government.

Budget Year

The fiscal year following the current fiscal year, and for which the new budget estimate is prepared.

Building Partner Capacity (BPC) Programs

Security cooperation and security assistance activities that are funded with USG appropriations and administered as cases within the FMS infrastructure. These programs provide defense articles and/or services to other USG departments and agencies under the authority of the Economy Act or other transfer authorities for the purpose of building the capacity of partner nation security forces and enhancing their capability to conduct counterterrorism, counter drug, and counterinsurgency operations, or to support U.S. military and stability operations, multilateral peace operations, and other programs.

Buy-American Act

This law provides that U.S. government agencies must generally give procurement preference to the purchase of domestic end products. This preference is accorded during the price evaluation process by applying a punitive evaluation factor to most foreign products.

Canceled Case

An FMS case which was not accepted or funded within prescribed time limitations, or was accepted and subsequently canceled by the requesting country or the U.S. government. In the latter case, the U.S. government or purchaser electing to cancel all (or part) of a case prior to the delivery of defense articles or the performance of services shall be responsible for all (or associated) termination costs.


A military or commercial ship, aircraft, barge, train or truck, or a commercial transport company that moves material from one location to another.

Case Description

A short title specifically prepared for each FMS case by the implementing agency.

Case Designator

A unique designator assigned by the implementing agency to each FMS case. The designator originates with the offer of a sale, identifies the case through all subsequent transactions, and is generally a three-letter designation, comprising the last element of the Case Identifier.

Case Identifier

A unique six-digit identifier assigned to an FMS case for the purpose of identification, accounting, and data processing of each LOA. The case identifier consists of the two-letter country code, a one-letter designator for the implementing agency, and a three-letter case designator.

Cash Case [FMS]

An FMS case for which the source of funding is directly provided by the purchaser, i.e., not through a credit or grant agreement with the U.S. government.

Cash Prior to Delivery [FMS]

A term of sale in which the U.S. government collects cash in advance of the delivery of defense articles and/or the performance of defense services from DoD resources throughout the life of the case.

Cash with Acceptance [FMS]

A term of sale in which U.S. dollar currency, check, or other negotiable instrument is submitted by the customer concurrent with acceptance of an FMS sales offer for the full amount shown as the estimated total cost on the LOA.

Closed Case

An FMS case for which all materiel has been delivered, all services have been performed, all financial transactions, including all collections, have been completed, and the customer has received a final statement of account.


A joint development project between the U.S. government and foreign government to satisfy a common requirement.

Combating Terrorism Fellowship Program (CTFP)

Formerly known as the Counterterrorism Fellowship Program, and also currently known as the Regional Defense Combating Terrorism Fellowship Program. It is a DoD security cooperation tool that provides education and training to international security personnel as part of the U.S. global effort to combat terrorism. CTFP is authorized by 10 U.S.C. 2249c, which allows DOD to use up to $20 million per year to pay any costs associated with the attendance of foreign government personnel, including civilians, at selected DoD schools, conferences, centers, and other training programs.

Combined Education and Training Program Plan

Plan developed by SCO in coordination with the host country counterparts which consolidates the host country's training needs for the budget year and the planning year (i.e. Host Country Training Requirements for the next two years). Includes program objectives and justifications.

Commercial Sale

See Direct Commercial Sale.

Commercial-type Items

Any items, including those expended or consumed in use, which, in addition to military use, are used and traded in normal civilian enterprise and may be imported/exported through normal international trade channels.


Any communication between a responsible U.S. official and a representative of any country or international organization that could reasonably be interpreted as being a promise that the U.S. will provide a foreign government or international organizations with either funds (including long term credit assignments), goods, services, or information.

Commitment [financial]

A firm administrative reservation of funds based upon firm procurement directives, orders, requisitions, authorizations to issue travel orders, or requests which authorize the recipient to create obligations without further recourse to the official responsible for certifying the availability of funds. The act of entering into a commitment is usually the first step in the process of spending available funds. The effect of entering into a commitment and the recording of that commitment on the records of the allotment is to reserve funds for future obligations. A commitment is subject to cancellation by the approving authority if it is not already obligated. Commitments are not required under O&M appropriations.

Communications Security (COMSEC)

The measures and controls taken to deny unauthorized persons’ information derived from telecommunications and other information systems, and technologies necessary to ensure the authenticity of such communications. COMSEC includes cryptographic security, transmission security, emissions security, and physical security of COMSEC material. Secure telecommunication or information system cryptographic components are the primary COMSEC products for transmission security and commonly called COMSEC devices or products. COMSEC devices are designated Controlled Cryptographic Items (CCI).

Competitive Proposals

A method for awarding a U.S. government contract on a basis other than low bid, whereby the best and final offer may be obtained after discussions are concluded.

Completed Case

An FMS case for which all deliveries and collections have been completed but for which a final accounting statement (DD Form 645) has not been furnished to the purchaser.

Concurrent Spare Parts (CSP)

These are spare parts programmed as an initial stockage related to the acquisition of a major item or system. CSPs are normally shipped in advance of the release of the major item or system.

Congressional Budget Justification for Foreign Operations

The document presented annually by the Executive Branch to Congress describing the proposed annual Military Assistance, Foreign Military Sales programs, and related security assistance programs along with other foreign assistance programs for the next fiscal year (i.e., the budget year) for which Congressional authorizations and appropriations are requested. In the past, referred to as the Congressional Presentation Document (CPD)


The person or organization to whom a shipment is to be delivered, whether by land, sea or air.

Constant Year Dollars

A method of relating dollar values for various years by removing the annual effects of inflation and showing all dollars at the value they would have had in a selected base year. See also current year dollars.

Constructive Delivery [FMS]

Completion of delivery of materiel to a carrier for transportation to a consignee, or delivery to a U.S. post office for shipment to a consignee. Delivery is evidenced by completed shipping documents or listings of delivery at the U.S. post office. The delivery of materiel to the customer or the customer's designated freight forwarder at a point of production, testing, or storage at dockside, at staging areas, or at airports constitutes actual delivery. Also referred to as physical delivery.

Continental United States (CONUS)

United States territory, including the adjacent territorial waters, located within the North American Continent between Canada and Mexico. Does not include Hawaii or Alaska.

Continuing Resolution (CR)

Appropriations legislation enacted by Congress to provide temporary budget authority for Federal agencies to keep them in operation when their regular appropriations bill has not been enacted by the start of the fiscal year.

Continuing Resolution Authority (CRA)

The authority to obligate funds against the FMFP, IMET, ESF, or other related security assistance appropriation for the new fiscal year under a CR granted by Congress in a Joint Resolution making temporary appropriations prior to passage of the regular appropriations act, or in lieu of such an act. Normally, however, the CRA is for a designated period less than a fiscal year, and such a CRA does not usually allow funding for the start of any new programs.


An agreement between two or more persons who are legally capable of making a binding agreement, which involves: a promise (or set of promises); a consideration (i.e., something of value promised or given); a reasonable amount of understanding between the persons as to what the agreement means; and a legal means for resolving any breach of the agreement.

Contract Administration

All the activities associated with the performance of a contract, from pre-award to closeout.

Contract Administration Services (CAS)

All those actions accomplished in or near a contractor's plant for the benefit of the U.S. government which are necessary to the performance of a contract or in support of the buying offices, system/project managers, and other organizations, including quality assurance, engineering support, production surveillance, pre-award surveys, mobilization planning, contract administration, property administration, industrial security, and safety.

Contract Administration Services (CAS) Charge

A surcharge applied to all FMS purchases from procurement to cover the cost of contract administration, quality assurance and inspection, and contract audit. The surcharge percentage depends upon any contract administrative reciprocal agreements with a particular purchasing country.

Contract Authority

Budget authority contained in an authorization bill that permits an agency of the federal government to enter into contracts or other obligations for future payments from funds not yet appropriated by Congress. The assumption is that the necessary funds will be made available for payment in a subsequent appropriations act.

Contract Award

This occurs when a contracting officer has signed and distributed a contract to a contractor.

Contract Field Services (CFS)

These are services performed for the USG by commercial or industrial companies. These services provide instruction and training on the installation, operation, and maintenance of DoD weapons, equipment, and systems.

Contract Termination

Cessation or cancellation, in whole or in part, of work under a prime contract, or a subcontract thereunder, for the convenience of, or at the option of, the government, or a foreign purchaser (FMS), or due to failure of the contractor to perform in accordance with the terms of the contract.

Contracting Activity

Each service designates certain commands as contracting activities. The subordinate command is that in which a principal contracting office is located. It may include the program office, related functional support offices, and contracting offices. DFARS 202.1 lists the contracting activities. The Head of the contracting activity has certain approval and authority responsibilities.

Contracting Officer (CO)

A person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the CO acting within the limits of their authority as delegated by the CO. A CO whose primary responsibility is to enter into contracts is called a procuring contracting officer . One whose primary responsibility is to administer contracts is called an administrative contracting officer. One whose primary responsibility is to terminate contracts and/or settle terminated contracts is called a "termination contracting officer." A single contracting officer may be responsible for duties in any or all of these areas.

Contractor Acquired Property

Property procured or otherwise provided by the contractor for the performance of a contract, title to which is vested in the government.

Contractor Furnished Equipment

Standard items of hardware, electrical equipment, and other standard production or commercial items furnished by a prime contractor as part of a larger assembly

Controlled Cryptographic Items (CCI)

CCIs are devices that embody cryptographic logic or other cryptographic design, but do not perform the entire Communications Security (COMSEC) function. CCIs are dependent upon host equipment or assemblies to complete and operate COMSEC functions. Un-keyed CCI is unclassified. An item may be designated CCI because its entire component is controlled (e.g. Inline Network Encryptor (INE)), or because the item contains an embedded cryptographic National Security Agency (NSA) Type-1 certified module to encrypt/de-encrypt information (e.g. secure radio).

Cooperative Logistics

The logistics support provided a foreign government/agency through its participation in a U.S. DoD logistics system, with reimbursement paid to the USG for the support provided.

Cooperative Logistics Supply Support Arrangements (CLSSA)

Military logistics support arrangements designed to provide responsive and continuous supply support at the depot level for U.S.-made military materiel possessed by foreign countries and international organizations. The CLSSA is normally the most effective means for providing common repair parts and secondary item support for equipment of U.S. origin that is in allied and friendly country inventories.

Cooperative Research and Development

A method by which governments cooperate to make better use of their collective Research and Development resources, to include technical data exchanges and co-development of new weapons systems.

Coordinating Authority

A commander or individual assigned responsibility for coordinating specific functions or activities involving forces of two or more military departments, two or more joint force components, or two or more forces of the same service. The commander or individual has the authority to require consultation between the agencies involved, but does not have the authority to compel agreement. In the event that essential agreement cannot be obtained, the matter shall be referred to the next senior in the reporting chain. This authority is given to the Senior Defense Official or the Defense Attache; (SDO/DATT) by DoDD 5105.75, Department of Defense Operations at U.S. Embassies, December 21, 2007


A program implemented by a government-to-government or commercial licensing arrangement that enables a foreign government or firm to acquire the "know-how" to manufacture or assemble, repair, maintain and operate, in whole or in part, a defense item.

Cost Contract

A contract that provides for payment to the contractor of allowable costs, to the extent prescribed in the contract, incurred in performance of the contract.

Cost Sharing Contract

A cost reimbursement type contract under which the contractor receives no fee and is reimbursed only for an agreed portion of the allowable costs prescribed in the contract

Country Liaison Officer (CLO)

An officer or non-commissioned officer (NCO) of a foreign military establishment selected by his or her government and attached to a MILDEP or DOD agency for the primary purpose of helping administer IMS from his or her home country. For administrative purposes, the CLO is considered in a student status.

Country Team

Senior members of U.S. government agencies assigned to a U.S. diplomatic mission overseas, and subject to the direction and supervision of the Chief, U.S. Mission (Ambassador).

Credit Case (FMS)

The use of U.S. government appropriated funds from the FMFP account to finance a foreign country's FMS purchases of U.S. defense articles or services. Credit funds may be in the form of repayable loans or non-repayable grants.

Critical Program Information (CPI)

U.S. capability elements that contribute to the warfighters' technical advantage, which if compromised, undermines U.S. military preeminence. U.S. capability elements may include, but are not limited to, software algorithms and specific hardware residing on the system, its training equipment, or maintenance support equipment.


That function performed by one military service in support of another military service for which reimbursement is required from the service receiving support.

Current Fiscal Year

The fiscal year in progress but not yet completed; e.g. between and including 1 October and 30 September.

Current-Year Dollars

Dollar values of a given year that include the effects of inflation or escalation for that year, or which reflect the price levels expected to prevail during the year at issue. Also referred to as escalated dollars or then-year dollars.

Defense Article - Commercial Sales

Any item designated on the U.S. Munitions List (USML), Section 121.1 of the International Traffic in Arms Regulation (ITAR), or technical data recorded or stored in any physical form, models, mockups or other items that reveal technical data directly relating to items designated on the USML. It does not include basic marketing information on function or purpose or general system descriptions.

Defense Article - Military Sales

As defined, FAA, Section 644 (22 U.S.C. 2403) and AECA, section 47(3) (22 U.S.C. 2794), includes any weapon, weapons system, munitions, aircraft, vessel, boat, or other implement of war; any property, installation, commodity, material, equipment, supply, or goods used for the purposes of furnishing military assistance or making military sales; any machinery, facility, tool, material, supply, or other item necessary for the manufacture, production, processing, repair, servicing, storage, construction, transportation, operation, or use of any other defense article or any component or part of any articles listed above, but shall not include merchant vessels, or as defined by the Atomic Energy Act of 1954, as amended (42 US Code 2011), source material, byproduct material, special nuclear material, production facilities, utilization facilities, or atomic weapons or articles involving Restricted Data.

Defense Attache; Office (DAO)

A DOD organization assigned to a U.S. diplomatic mission overseas for the purposes of overt gathering of military information, representing the U.S. Department of Defense in the conduct of military liaison activities, and performing as a component of the U.S. country team. Several DAO's have been designated by the President as being responsible for security assistance functions in a host country

Defense Contract Management Agency (DCMA)

An agency under the direction of the Under Secretary of Defense for Acquisition and Sustainment [USD(A&S)], which provides unified contract administration services to DoD components and NASA, for all contracts except those specifically exempted.

Defense Industrial Cooperation

U.S. activities performed in conjunction with selected foreign countries, which are intended to stimulate the development of foreign defense industrial capabilities, particularly in emerging technologies, for the mutual benefit of all participants.

Defense Institute of Security Cooperation Studies (DISCS)

The centralized DoD school for the consolidated professional education of personnel involved in security assistance management. DISCS is located at Wright-Patterson Air Force Base, Ohio, and provides an array of resident and nonresident instruction for both USG and foreign government military and civilian personnel as well as for defense contractor and industry personnel.

Defense Security Cooperation Agency (DSCA)

The agency that performs administrative management, program planning, and operations functions for U.S. military assistance programs at the DoD level under the policy direction of the Under Secretary of Defense (Policy) (USD(P)).

Defense Service - Commercial Sales

The furnishing of assistance (including training) to foreign persons, whether in the United States or abroad in the design, development, engineering, manufacture, production, assembly, testing, repair, maintenance, modification, operation, demilitarization, destruction, processing or use of defense articles; the furnishing to foreign persons of any technical data controlled under the International Traffic in Arms Regulation (ITAR) whether in the United States or abroad; or military training of foreign units and forces, regular and irregular, including formal or informal instruction of foreign persons in the United States or abroad or by correspondence courses, technical, educational, or information publications and media of all kinds, training aid, orientation, training exercise, and military advice.

Defense Service - Military Sales

As defined FAA, Section 644 (22 U.S.C. 2403) and AECA, section 47(3) (22 U.S.C. 2794), defense service includes any service, test, inspection, repair, training, publication, technical or other assistance, or defense information used for the purpose of furnishing military assistance or FMS, but does not include military education and training activities or design and construction services under section 29, AECA.

Defense Stock

The term defense stock includes defense articles on hand which are available for prompt delivery. It also includes defense articles under contract and on order that would be available for delivery within a reasonable time from the date of order by an eligible foreign government or international organization without increasing outstanding contracts or entering into new contracts. Any orders received from an eligible foreign government or international organization which cannot be filled in this manner fall within the provisions of section 22, AECA, which requires such orders to be filled under new procurement contracts.

Defense Transportation System (DTS)

The collection of transportation activities and carriers belonging to or under contract to the DoD. The DTS includes commercial and organic aircraft and ships, and commercial small package services under contract to the DoD, as well as the operation of U.S. military air and ocean terminals in and outside of the United States.

Defined Order Case

These are FMS cases characterized by orders for specific defense articles and services that are separately identified line items on the LOA.


The process of tailoring a standard DoD system to the international partner's operational requirements, by making adjustments to the item configuration, the type and quantity of spare parts, and the logistics support package. Definitization is an extension of the DoD's provisioning process.

Delivered Case

See completed case.


Includes constructive or actual delivery of defense articles; also, includes the performance of defense services for the customer or requisitioner, as well as accessorial services, when they are normally recorded in the billing and collection cycle immediately following performance.

Delivery Forecasts

Periodic estimates of contract production deliveries used as a measure of the effectiveness of production and supply availability scheduling and as a guide to corrective actions to resolve procurement or production bottlenecks. These forecasts provide estimates of deliveries under obligation against procurement from appropriated or other funds.

Delivery Term Code (DTC)

A single character code that represents how far the USG is responsible for arranging transportation of defense articles going to an international customer.

Dependable Undertaking [FMS]

An excepted term and condition within the FMS case (or LOA). A firm commitment by a foreign government or international organization to pay the full amount of a contract for new production or for the performance of defense services which will assure the U.S. against any loss on such contract and to make funds available in such amounts and at such times as may be required by the contract, or for any damages and costs that may accrue from the cancellation of such a contract, provided that in the judgment of the DoD there is sufficient likelihood that the foreign government or international organization will have the economic resources to fulfill the commitment.

Depot Level Maintenance

Maintenance performed on material requiring a major overhaul or a complete rebuilding of parts, assemblies, subassemblies, and end items, including the manufacture of parts, modification, testing, and reclamation as required. Provides more extensive shop facilities and equipment and personnel of higher technical skill than are normally available at the lower levels of maintenance, i.e., organizational and intermediate level maintenance.

Designated Government Representative (DGR)

A person or persons duly authorized by a foreign government to act on behalf of that government to negotiate, commit, sign contractual agreements, and/or accept delivery of materiel.

Direct Cite

Citation of the FMS Trust Fund [Account 97-11X8242] as the financing source on documents leaving the DOD system, as well as contracts with commercial firms, the General Services Administration, the Department of Transportation, etc. The term "direct cite" is not valid if any DoD organization establishes a reimbursable order to a DoD appropriation account, stock fund, or industrial fund.

Direct Commercial Sale

A sale of defense articles or defense services made under a Department of State issued license by U.S. industry directly to a foreign buyer, and which is not administered by DoD through FMS procedures.

Direct Cost

Any cost that is specifically identified with a particular final cost objective. Such costs are not necessarily limited to items that are incorporated into the end product as labor or material.

Direct Entry Training

A military service training course that is entered directly by an international military student without first attending English language training at the Defense Language Institute, English Language Center (DLIELC).

Direct Offset

A general type of industrial or commercial compensation practice required of a contractor by a purchasing government as a condition for the purchase of defense articles/services. The form of compensation, which generally offsets a specific percentage of the cost of the purchase, is directly associated with the items purchased, such as the production of components in the purchasing country for installation in the purchased end-item.

Disbursements [Gross and Net]

In budgetary usage, gross disbursements represent the amount of checks issued, cash, or other payments made, less refunds received. Net disbursements represent gross disbursements less income collected and credited to the appropriate fund account, such as amounts received for goods and services provided. See also outlays.

Disclosure Authorization

An authorization by an appropriate U.S. military department authority that is required prior to the disclosure of classified information to foreign nationals who are cleared by their governments to have access to classified information.

Disposable MAP Property

MAP property determined to be no longer needed by the recipient country for the purpose initially furnished and for which no further MAP requirement exists, and MAP property which does not meet the criteria for utilization screening and is classified as disposable property by the in-country Security Cooperation Office (SCO) when initially reported by the foreign country.

DOD Components

The Office of the Secretary of Defense (OSD); the military departments; the Joint Chiefs of Staff (JCS or Joint Staff); the combatant commands; the Office of the Inspector General, Department of Defense (DoDIG); the Defense agencies; and DoD field activities.

DOD Field Studies Program

The DoD program that affords an opportunity for the International Military Student (IMS) to become familiar with the United States; its social, cultural, and political institutions; and its people and their ways of life. The program further increases the IMSs' awareness of the U.S. commitment to basic principles of internationally recognized human rights.

Earmarking of Stocks

The arrangement whereby nations agree, normally in peacetime, to identify a proportion of selected items of their war reserve stocks to be called for by specified NATO commanders under emergency conditions.

Earmarks [Appropriations]

Minimum mandatory funding levels for countries/programs established by Congress in annual foreign assistance authorization and appropriations bills. Earmarks provide Congress a means for establishing its priorities in the allocation of U.S. foreign assistance resources. Since fiscal year 1987, Congress annually earmarked over 90 percent of the FMFP appropriations for a limited number of countries. Such high levels of earmarking restrict the flexibility and discretion of an Administration in funding assistance requirements for the many countries that do not benefit from such congressional earmarking.

Economic Order Quantity (EOQ)

The most economical quantity of parts to order at one time to support a defined production rate, considering the applicable procurement and inventory costs.

Economic Support Fund (ESF)

A USG security assistance program through which economic assistance is provided on a grant basis, to selected foreign governments. The funds may be used to finance imports of commodities, capital, or technical assistance in accordance with the terms of a bilateral agreement; counterpart funds thereby generated may be used as budgetary support. These funds enable a recipient to devote more of its own resources to defense and security purposes than it otherwise could do without serious economic or political consequences (Formerly termed "Security Supporting Assistance").

Embedded Manpower

The manpower requirements priced within materiel costs that cannot be separated from the unit price. Example: LOR requests 100,000 ammunition from vendor. Vendor manufactures 1,000,000 ammunition for multiple LOAs. The manpower cost is included in the unit cost of manufacturing the ammunition and that manpower cost cannot be separated out.

End Item (EI)

A final combination of end products, component parts, and/or materials that is ready for its intended use, e.g., aircraft, ship, tank, mobile machine shop.

Engineering Change Proposal (ECP)

A proposal to a responsible authority recommending that a change to an original item of equipment be considered, and the design or engineering change be incorporated into the article to modify, add to, delete, or supersede original parts.

English Comprehension Level (ECL) Examination

A test of the overall proficiency of foreign military students in English language listening and reading. A minimum entry level score for each DoD course of instruction is set by the military departments (MILDEPs) on the basis of course level difficulty and hazard factors.


An increase in costs due to inflation. A price index may be used to determine escalation by converting past to present prices or by converting present to future prices.

Estimated Actual Charges

A systematic and documented estimate of actual costs. The procedure is used in the absence of an established cost accounting system.


A classification of explosive hazard assigned by the U.S. Department of Transportation to commercial and military explosives, which determines how the explosive material may be stored and transported to comply with international safety regulations.

Excess Defense Articles (EDA)

Defense articles owned by the United States government which are neither procured in anticipation of military assistance or sales requirements, nor procured pursuant to a military assistance or sales order. EDA are items (except construction equipment) that are in excess of the Approved Force Acquisition Objective and Approved Force Retention Stock of all Department of Defense components at the time such articles are dropped from inventory by the supplying agency for delivery to countries or international organizations.

Executive Agreement

An international agreement, reached by the President with foreign heads of state, which does not require Senatorial approval. Such agreements are concluded under the President's constitutional powers as Commander-in-Chief and his general authority in foreign relations, or under powers delegated to him by Congress. Executive agreements may be nullified by Congressional action and are not binding on future presidents without their consent.

Executive Order
Expanded IMET (E-IMET)

Training funded under the IMET program to the following four objectives: proper management of defense resources, improving military justice systems in accordance with internationally recognized human rights, understanding the principle of civilian control of the military, and contributing to the cooperation between police and military forces for counternarcotics law enforcement [sec.541, FAA]. Only courses found in the Expanded IMET Handbook qualify for consideration in the Expanded IMET portion of a country's training program.

Expendable Supplies And Material

Supplies which are consumed in use, such as ammunition, paint, fuel, cleaning and preserving materials, surgical dressings, drugs, medicines, etc., or which lose their identity, such as spare parts, etc. Sometimes referred to as consumable supplies and material.

Expenditure Authority (EA, as used in FMS)

A document or authority from DFAS-IN to an FMS case implementing DOD component that allows expenditures against obligations previously recorded against an FMS case. The disbursing activity must ensure that cash is available prior to processing the disbursement.


The actual spending of money as distinguished from the appropriation of funds. Expenditures are made by the Executive Branch; appropriations are made only by Congress. The two rarely are identical in any fiscal year. In addition to some current budget authority, expenditures may represent prior budget authority made available one, two, or more years earlier. See also disbursements.

Extended Training Service Specialists (ETSS)

ETSS are DOD military and civilian personnel technically qualified to provide advice, instruction, and training in the installation, operation, and maintenance of weapons, equipment, and systems. ETSS are attached to an overseas SCO rather than assigned, and they are carried on the Joint Table of Distribution (JTD), but are not provided as an augmentation to the SCO staff. ETSS may be provided for overseas assignments for periods of up to but not exceeding one year, unless specifically approved by DSCA.

Familiarization Training

Practical experience and job-related training for specific systems, subsystems, functional areas, or other operations that require hands-on experience, to include maintenance training conducted at the depot level. This training does not provide for skill-level upgrading, which is provided under OJT when special procedures are required.

Federal Acquisition Regulation (FAR)

The FAR is the primary regulation for use by federal executive agencies for the acquisition of supplies and services with appropriated funds. The document, published in 1984, consolidated the major procurement regulations of various departments and agencies. The intent of the FAR is to standardize the content, decrease the volume of documents, and to achieve consistency throughout government. The principal agencies involved in putting together the FAR were DOD, the General Services Administration, and the National Aeronautics and Space Administration, the three largest buyers. The FAR is broader than just contracting and applies to all goods and services. It directs the defense program manager in many ways, including contract award procedures, acquisition planning, warranties, and establishing guidelines for competition. Besides the FAR, each agency has its supplement to describe its own particular way of doing business. The DOD supplement is called Defense FAR Supplement (DFARS).

Federal Logistics Data (FED LOG)

Federal Logistics Data on compact disc - read only memory (CD-ROM). Provides important logistics catalog data on items used by the USG.

Field Studies Program (FSP)

The FSP shall provide international students and visitors the opportunity to obtain a balanced understanding of the United States and to increase their awareness of the basic issues involving internationally recognized human rights.

Field training services (FTS)

A generic term that refers to either engineering and technical services, contract field services, or both.

Financial Management Regulation (FMR)

DoD 7000.14-R, Volume 15, Security Assistance Policy and Procedures]. A manual published by the Defense Finance and Accounting Service under the authority of DoDI 7000.14. It establishes basic financial procedures for security assistance activities involving management, fiscal matters, accounting, pricing, budgeting for reimbursements to DoD appropriations accounts and revolving funds, auditing, international balance of payments, and matters affecting the DoD budget.

Fiscal Year [FY]

Accounting period beginning 1 October and ending 30 September of the following year. The fiscal year is designated by the calendar year in which it ends. Fiscal Year 1995 begins on 1 October 1994 and ends 30 September 1995.

Fixed Price Type Contract

A type of contract that generally provides for a firm price or, under appropriate circumstances, may provide for an adjustable price for the supplies or services being procured. Fixed price contracts are of several types, and are so designed as to facilitate proper pricing under varying circumstances.

Flyaway Costs

The costs related to the production of a usable end item of military hardware. Flyaway cost include the cost of procuring the basic unit (airframe, hull, chassis, etc.), a percentage of basic unit for changes allowance, propulsion equipment, electronics, armament, and other installed government-furnished equipment, and nonrecurring production costs. Flyaway cost equates to rollaway and sail-away costs.

Follow-on Training

Sequential training following an initial course of training.

Force Activity Designator (FAD)

An assignment of a Roman numeral designator between I and V to international partner countries, and to U.S. defense organizations, which determines the supply priorities that the requisitioner can use to order materiel from the DoD supply system.

Foreign Assistance Act (FAA) of 1961

The law providing the authority and the general rules for the conduct of USG foreign assistance grant activities/programs.

Foreign Internal Defense (FID)

Participation by civilian and military agencies of one government in any of the programs conducted by another government to free and protect its society from subversion, lawlessness, and insurgency.

Foreign Liaison Officer (FLO)

An official representative, either military or civilian, of a foreign government or international organization stationed in the United States normally for the purpose of managing or monitoring security assistance programs.

Foreign Military Sales (FMS)

That portion of U.S. security assistance authorized by the AECA, and conducted on the basis of formal contracts or agreements between the United States Government and an authorized recipient government or international organization. FMS includes government-to-government sales of defense articles or defense services, from DoD stocks or through new procurements under DoD-managed contracts, regardless of the source of financing.

Foreign Military Sales (FMS) Case

A U.S. Letter of Offer and Acceptance (LOA), and any subsequent Amendments or Modifications, that has been accepted by a foreign country.

Foreign Military Sales Forecast Report

A companion document to the Javits Report, this report provides a two-year projection by fiscal year (vice one calendar year for Javits) but only addresses potential FMS sales.

Foreign Military Sales Order (FMSO)

A term used to describe LOAs that implement Cooperative Logistics Supply Support Arrangements. Two LOAs are written: a FMSO I and a FMSO II.

Foreign Military Sales Order I (FMSO I)

Provides for the pipeline capitalization of a cooperative logistics support arrangement, which consists of stocks on hand and replenishment of stocks on order in which the participating country buys equity in the U.S. supply system for the support of a specific weapons system. Even though stocks are not moved to a foreign country, delivery (equity) does in effect take place when the country pays for the case.

Foreign Military Sales Order II (FMSO II)

Provides for the replenishment of withdrawals of consumption-type items (repair parts, primarily) from the DoD supply system to include charges for accessorial costs and a systems service charge.

Foreign Service National (FSN)

Now referred to as Locally Employed Staff (LES) by the Department of State. A local hire U.S. embassy employee, usually of the same nationality as the host country, but sometimes a third country national (TCN). The FSN fills a billet with a formal position description and is paid according to a local compensation plan developed by the embassy. FSNs are hired and employed by either State Department directly or any other embassy agency (e.g., SCO) with a validated need and billet. Typical jobs for FSNs within a SCO include budget analyst, SA training manager, administrative assistant, and vehicle driver.

Formal Training [military]

Training (including special training) in an officially designated course. It is conducted or administered according to an approved program of instruction. This training generally leads to a specific skill in a certain military occupational specialty.

Freight Forwarder

A commercial import/export company registered with the Directorate of Defense Trade Controls and under contract to the FMS customer which arranges transportation of materiel from a point specified in the LOA to the final destination.

Full And Open Competition

A term associated with procurement contracting whereby all responsible sources are eligible to compete for a contract. This is a standard procedure for competition in contracting, and it is required in DoD procurements under the provisions of the Competition in Contracting Act (1984).

Funding Authority

The organization that controls and oversees management of funds for a BPC program.

Future Years Defense Program (FYDP)

The official program summarizing the Secretary of Defense approved plans and programs for DoD

General English Training (GET)

Defense Language Institute - English Language Center (DLIELC) courses designed to develop the English language capability of IMS so they can attend DOD schools.

General Provisions

The mandatory (by law or regulation) clauses for all DoD contracts for the type of procurement involved. The clauses devised for a particular procurement are called the "Special Provisions."

Generic Code (GC)

A three-digit code identified in the Military Articles and Services List (MASL) and in Appendix 4 of the SAMM, which represents the type of materiel or services to be furnished according to a specific budget activity/project account classification.

Government Accountability Office (GAO)

An agency of the legislative branch, responsible solely to the Congress, which functions to audit all negotiated government contracts and investigate all matters relating to the receipt, disbursement, and application of public funds. The GAO determines whether public funds are expended in accordance with appropriations, and recommends to Congress various policies and procedures to be enacted into law to provide oversight and governance of government spending. Formerly, the General Accounting Office.

Government Furnished Equipment (GFE)

Items in the possession of, or acquired by the USG, and delivered to or otherwise made available to a contractor.

Government Furnished Material (GFM)

U.S. government property which may be incorporated into, or attached to an end item to be delivered under a contract or which may be consumed in the performance of a contract. It includes, but is not limited to, raw and processed material, parts, components, assemblies, small tools, and supplies.


A form of assistance involving a gift of funds, equipment, and/or services which is furnished by the U.S. government to selected recipient nations on a free, nonrepayable basis.

Holding Account

An account established for each FMS country/international organization for the purpose of recording and safeguarding unidentified and certain earmarked funds for future use.

Host Nation Support

Civil and military assistance provided by host nations to allied forces and organizations in peace, transition to war, and wartime.

Human Rights

As defined in section 116(a), FAA, the term "internationally recognized human rights" includes: freedom from torture or other cruel, inhuman, or degrading treatment or punishment; prolonged detention without charges; disappearances due to abduction or clandestine detention and other flagrant denial of the rights to life, liberty, and the security of the person. Other internationally recognized human rights, as examined by the U.S. Department of State in the annual Country Reports on Human Rights Practices for 199X, include: the right of self government; the right to be free of governmental violations of the integrity of the person; the right to enjoy civil liberties, such as freedom of expression, assembly, religion, and movement, without discrimination based on race, ancestry, or sex; and the right to change one's government by peaceful means. Section 502B(2), FAA, prohibits the provision of security assistance to "any county the government of which engages in a consistent pattern of gross violations of internationally recognized human rights."

Implementation Date [FMS]

The date when an FMS case moves to “Implemented” status, indicating it has been signed by an authorized representative of the eligible foreign partner, any initial deposit has been received and appropriately deposited, and data systems implementing transactions have occurred.

Implemented Case

An FMS case that has been signed by an authorized representative of the foreign partner, and for which (1) any required initial deposit has been received by DFAS and deposited; and (2) applicable data system implementing transactions have occurred.

Implementing Agency (IA)

The military department or defense agency responsible for the execution of military assistance programs. With respect to FMS, the military department or defense agency assigned responsibility by the Defense Security Cooperation Agency to prepare an LOA and to implement an FMS case. The implementing agency is responsible for the overall management of the actions that will result in delivery of the materials or services set forth in the LOA that was accepted by a foreign country or international organization.


Any executive action to withhold or delay spending appropriated funds as intended by the Congress. There are two kinds of impoundments: deferrals and rescissions.

Incentive Payment

Direct monetary compensation made by a U.S. supplier of defense articles or services or by any employee, agent, or subcontractor thereof to any U.S. person to induce or persuade that U.S. person to purchase or acquire goods or services produced, manufactured, grown, or extracted, in whole or part, in the foreign country which is purchasing those defense articles or services from the U.S. suppliers [Sec. 39A(d)(2), AECA].

Incentive Type Contract

A contract that may be of either a fixed price or cost reimbursement nature, with a special provision for adjustment of the fixed price or fee. It provides for a tentative target price and a maximum price or maximum fee, with price or fee adjustment after completion of the contract for the purpose of establishing a final price or fee based on the contractor's actual costs plus a sliding scale of profit or fee that varies inversely with the cost but which in no event shall permit the final price or fee to exceed the maximum price or fee stated in the contract.

Indirect Cost

Costs which are incurred for common or joint objectives, and which are not as readily subject to treatment as direct costs. See also direct costs.

Indirect Offset

A general type of industrial or commercial compensation practice required of a contractor by a purchasing government as a condition for the purchase of defense articles/services. The form of compensation, which generally offsets a specific percentage of the cost of the purchase, is unrelated to the items purchased, and may include contractor purchases of commodities and manufactured goods produced in the purchasing country.

Industrial Base

The capability of U.S. industry to respond to the needs of and produce end items for DoD. Also, that part of the total privately-owned and government-owned industrial production and maintenance capacity located in Canada expected to be available during emergencies to manufacture and repair items required by the U.S. military services.

Industrial Mobilization

The transformation of industry from its peacetime activity to the fulfillment of the military program necessary to support national military objectives. It includes the mobilization of materials, labor, capital, productive facilities, and contributory items and services essential to military programs.

Industrial Modernization Incentive Programs

Money transferred to the credit of the Treasurer of the United States or other authorized officer at the time of acceptance of an LOA as full or partial payment for defense articles, services, or training contracted for by an eligible foreign country.

Information Security (INFOSEC)

The protection of information systems against unauthorized access to or modification of information, whether in storage, processing, or transit, and against the denial of service to authorized users, including those measures necessary to detect, document and counter such threat. INFOSEC is applied through the application of Cybersecurity and Communications Security (COMSEC).

Initial Operational Capability (IOC)

The first attainment of the capability to employ effectively a weapon, item of equipment, or system of approved specific characteristics, and which is manned or operated by an adequately trained, equipped, and supported military unit or force. Usually a target year or period of a year established early on which drives the development and production schedule. Normally, the IOC objective is based on the threat.

Initial Provisioning

The process of determining the range and quantity of items (i.e., spares and repair parts, special tools, test equipment, and support equipment) required to support and maintain an item for an initial period of service. Its phases include the identification of items of supply, the establishment of data for catalog, technical manual, and allowance list preparation, and the preparation of instructions to assure delivery of necessary support items with related end articles.

Initial Spares

Spare parts procured for the logistics support of a system during its initial period of operation.

Internal Defense

The full range of measures taken by a government to free and protect its society from subversion, lawlessness, and insurgency.

Internal Security

The state of law and order prevailing within a nation.

International Armaments Cooperation Programs (IACP)

Programs that promote rationalization, standardization and interoperability (RSI) and comprise one or more specific cooperative projects whose arrangements are defined in a written agreement between DoD and one or more countries.

International Cooperative Administrative Support Services (ICASS)

The purpose of ICASS is to provide, on a reimbursable basis, needed administrative services to USG offices located overseas. The administrative support services are provided by ICASS personnel of the DoS stationed at overseas U.S. embassies, consulates, etc. Normally, such personnel perform a variety of services including: personnel, budget and fiscal, general services, communications, security and guard, and management services. The specific services required are the basis of an agreement between DoS and the requesting agency. Charges are based on the amount of services received, with each agency, including DoS, paying its share. The ICAAS system provides an equitable method of sharing the costs of providing "common type" administrative support to the SCO and other agencies at the post.

International Logistics

The planning, negotiating, and implementation of supporting logistics arrangements between nations, their forces and agencies. It includes furnishing logistics support (major end items, materiel, and/or services) to, or receiving logistics support from, one or more friendly foreign governments, international organizations, or military forces, with or without reimbursement. It also includes planning and actions related to the intermeshing of a significant element, activity, or component of the military logistics systems or procedures of the United States with those of one or more foreign governments, international organizations, or military forces on a temporary or permanent basis. International logistics involves planning and actions related to the utilization of United States logistics, policies, systems, and/or procedures to meet requirements of one or more foreign governments, international organizations, or forces.

International Logistics Communication System

A fee-for-service telecommunications system established for international partners to communicate supply requirements directly to the DoD supply system through the Defense Data Network.

International Logistics Control Organization

An organization within each of the military departments that is dedicated to managing logistics support programs and logistics transactions in support of foreign military sales and security cooperation programs.

International Military Education And Training (IMET) Program

That component of the U.S. security assistance program which provides training to selected foreign military and defense associated civilian personnel on a grant basis. Training is provided at U.S. military facilities and with U.S. Armed Forces in the United States and overseas, and through the use of Mobile Training Teams. Training also may be provided by contract technicians, contractors (including instruction at civilian institutions), or by correspondence courses. The IMET Program is authorized by the FAA.

International Military Student (IMS)

A national of a foreign government, with military or civilian status of that government, who is receiving education or training or is touring USG activities under the sponsorship of the security assistance training program (SATP).

International Military Student Office/Manager (IMSO/IMSM)

Provides for administrative support of international students while in training at schoolhouses. The IMSO also manages and conducts the DoD Field Studies Program for their schoolhouse.

International Narcotics Control And Law Enforcement (INCLE)

Counter drug bureau/programs managed by DoS, but can have materiel, services, and training support provided and managed by DoD using SC assets and procedures.

International Traffic in Arms Regulation (ITAR)

A regulation prepared by the Directorate of Defense Trade Control (DDTC), Bureau of Political-Military Affairs, Department of State, providing licensing and regulatory provisions for the import and export of defense articles, technical data, and services. The ITAR also includes the U.S. Munitions List. Published in the Federal Register as 22 CFR 120-130.


The ability of systems, units, or forces to provide services to and accept services from other systems, units or forces, and to use the services so exchanged to enable them to operate effectively together. Also, the condition achieved among communications-electronic systems or items of communications-electronics equipment when information or services can be exchanged directly and satisfactorily between them and/or their users.

Inventory Control

That phase of military logistics which includes managing, cataloging, requirements determinations, procurement, distribution, overhaul, and disposal of materiel.

Inventory Control Point (ICP)

The organizational element within a DoD system which is assigned responsibility for materiel management of a group of items including such management functions as the computation of requirements, the initiation of procurement or disposal actions, distribution management, and rebuild direction.

Investment Cost

The cost of equipment, supplies and services that improve the capability of a force, including initial unit equipment, war reserves of equipment and ammunition, concurrent spare parts, and initial spare parts stockage levels. Also includes replacement costs for obsolescent and attrited equipment, rebuild and modernization costs for newly provided equipment, projects programmed as dollar value lines to facilitate administration, and training costs associated with the introduction of new equipment or an improved capability.

Invitational Travel Order (ITO)

A written authorization (DD Form 2285) for international military students to travel to, from, and between U.S. activities for the purpose of training under an approved and funded IMET or FMS program.

Item Identification Number

A seven-character identifier assigned to each line of training in the MASL. The first character is a letter that identifies the MILDEP offering the training (B Army, P-Navy, D-Air Force). The following six characters are numbers that identify the specific item of training. The identification number is used in all FMS and IMET training programs and implementation documents.

Item Manager (IM)

An individual within the organization of an inventory control point or other such organization assigned management responsibility for one or more specific items of materiel.

Javits Report

The President's estimate to the Congress of potential or proposed arms transfers during a given calendar year required by AECA, Section 25(a)(1) (22 USC 2765(a)(1)).

Joint Resolution

A legislative resolution, designated H J Res (House) or S J Res (Senate) which requires the approval of both houses and the signature of the President, just as a bill does, and which has the force of law if approved. There is no practical difference between a bill and a joint resolution. A joint resolution generally is used to deal with a limited matter such as a single appropriation. Congressional rejection of a proposed arms transfer, lease, third country transfer, or a proposed international cooperative project takes the form of a joint resolution of disapproval.

Joint Security Cooperation Education and Training Regulation (JSCET)

Regulation that prescribes policies, responsibilities, procedures, and administration for the education and training of international military students by the Departments of the Army, Navy and Air Force as authorized by U.S. security assistance legislation. Regulation is also applicable to the Marine Corps and Coast Guard.

Language Training Detachment (LTD)

A group of personnel from the Defense Language Institute, English Language Center (DLIELC), Lackland Air Force Base, Texas, performing duty in a foreign country or in CONUS on a military installation away from DLIELC. They serve as consultants or instructors in English as a foreign language.

Lease (Security Assistance)

An agreement for the temporary transfer of the right of possession and use of a non-excess defense article or articles to a foreign government or international organization, with the lessee agreeing to reimburse the USG in U.S. dollars for all costs incurred in leasing such articles, and to maintain, protect, repair, or restore the article(s), subject to and under the authority of section 61, AECA (22 USC 2796).

Letter of offer and acceptance (LOA)

U.S. DoD letter by which the U.S. government offers to sell to a foreign government or international organization U.S. defense articles and defense services pursuant to the Arms Export Control Act. T he LOA lists the items and/or services, estimated costs, and the terms and conditions of sale; it also provides for the signature of an appropriate foreign government official to indicate acceptance.

Letter of request (LOR)

The term used to identify a request from an eligible FMS participant country for the purchase of U.S. defense articles and services. The request may be in message or letter format.

Licensed Production

Licensed production involves agreements made by U.S. commercial firms with international organizations, foreign governments, or foreign commercial firms to produce weapon systems. USG involvement is limited to the approval by DSCA of any applicable FMS case and approval of applicable type of export license. Such agreements generally establish quantitative limits on production, and prohibit third country transfers of the manufactured items.

Life Cycle Cost

The total costs to the government of acquisition and ownership of a system over its useful life. It includes the costs of development, acquisition, support, and, where applicable, disposal.

Line Item Number

A three-digit alpha/numeric code that identifies a detail line item on the LOA. This code is perpetuated on the customer's bill.

Living Allowance

An authorized allowance paid to an international military student while in training under the IMET program.


Applies to loans to a NATO or major non-NATO ally of materials, supplies, or equipment for the purpose of carrying out a program of cooperative research, development, testing, or evaluation subject to and under the authority of section 65, AECA.

Locally Employed Staff (LES)

See Foreign Service National (FSN).

Logistics Support Charge (LSC)

A charge based on the AECA requirement for full cost recovery. This charge is intended to recover the cost of logistics support involved in providing the spares and other items required to maintain a weapon system. These support costs are associated with production control, requisition processing, inventory maintenance, administration of Supply Discrepancy Reports (SDRs), and logistics management. The LSC is applied by the DFAS-IN to delivery costs for those lines in FMS cases that have been identified as support lines based on the generic code included in the LOA.

Long-lead Items/Long-lead Time Materials

Those components of a system or piece of equipment for which the times to design and fabricate are the longest, and therefore, to which an early commitment of funds may be desirable in order to meet the earliest possible date of system completion.

Major Defense Equipment (MDE)

Any item of Significant Military Equipment (SME) on the U.S. Munitions List having a nonrecurring research and development cost of more than $50 million or a total production cost of more than $200 million. Also defined in section 47 (6), AECA.

Major Line Item

A program line for which the requirement is expressed quantitatively as well as in dollars. These lines are identified in the military articles and services list(s) (MASL) by a unit of issue (XX) other than dollars.

Major Non-NATO Allies

Designated as Argentina, Australia, Bahrain, Egypt, Israel, Japan, Jordan, Kuwait, Morocco, New Zealand, Pakistan, Philippines, Republic of Korea, Taiwan, and Thailand [Sec. 517, FAA].

Man Hour/Month/Year

The effort equal to that of one person during one hour/month/year.

Market Survey
Materiel Management

Direction and control of those aspects of logistics which deal with materiel, including the functions of identification, cataloging, standardization, requirements determination, procurement, inspection, quality control, packaging, storage, distribution, disposal, maintenance, mobilization planning, industrial readiness planning, and item management classification; encompasses materiel control, inventory control, inventory management, and supply management.

Memorandum of Agreement (MOA) or Memorandum of Understanding (MOU)

A written agreement between governments or a government and international organization signed by authorized representatives and signifying an intent to be legally bound.

Memorandum of Request (MOR)

A document prepared and submitted by the Requesting Authority which identifies requirements and initiates the case development process under a BPC program.

Military Articles And Services List (MASL)

A catalogue of materiel, services, and training used in the planning and programming of International Military Education and Training (IMET), and Foreign Military Sales (FMS). Separate MASLs are maintained for IMET and FMS training that provides data on course identification, course availability, price, and duration of training.

Military Assistance Advisory Group (MAAG)

A name for the Security Cooperation Organization in some countries. The term MAAG encompasses Joint U.S. Military Advisory Groups, Military Missions, Military Assistance Groups, U.S. Military Groups, and U.S. Military Representatives exercising responsibility within a U.S. Diplomatic Mission for security assistance and other related DoD matters. Defense Attachés are included only when specifically designated as having security assistance functions. See also security assistance organization.

Military Assistance Program (MAP)

That portion of the United States security assistance program authorized by the Foreign Assistance Act of 1961, as amended, which once provided defense articles and services to recipients on a nonreimbursable (grant) basis. Funding for MAP was consolidated under the Foreign Military Financing (FMF) Program beginning in fiscal year 1990.

Military Assistance Program Address Directory (MAPAD)

The MAPAD provides clear text addresses of country representatives, freight forwarders, and customers-within-country required for releasing FMS and MAP shipments processed in accordance with military standard requisitioning and issuing procedures (MILSTRIP), and addresses required for the forwarding of related documentation.

Military Civic Action

The use of preponderantly indigenous military forces on projects useful to the local population at all levels in such fields as education, training, public works, agriculture, transportation, communications, health sanitation, and others contributing to economic and social development, which would also serve to improve the standing of the military forces with the population. (U.S. forces may at times advise or engage in military civic action in overseas areas.)

Military Department (MILDEP)

One of the departments within the Department of Defense created by the National Security Act of 1947, as amended. The Military Departments are: the Department of the Air Force, the Department of the Army, and the Department of the Navy.

Military Standard Billing System (MILSBILLS)

This system provides data elements, codes, standard mechanized procedures, and formats for use by DoD components for billing, collecting and related accounting for sales from system stocks, including direct deliveries.

Military Standard Requisitioning And Issue Procedures (MILSTRIP)

A uniform procedure established by DoD to govern the requisition and issue of materiel within standardized priorities.

Mission Strategic Resource Plan

The primary planning document within the USG that defines U.S. national interests in a foreign country and coordinates performance measurement in that country among USG agencies.

Mobile Education Team (MET)

A team of U.S. DoD personnel on temporary duty in a foreign country for the purpose of educating foreign personnel in resource management. Such teams are normally funded from Expanded IMET Program funds.

Mobile Training Team (MTT)

A team of U.S. DoD personnel on temporary duty in a foreign country for the purpose of training foreign personnel in the operation, maintenance, or other support of weapon systems and support equipment, as well as training for general military operations. MTTs may be funded from either FMS or IMET Programs.


Modification of a case constitutes an administrative or price change to an existing LOA, without revising the scope of the case.

Munitions List

The U.S. Munitions List is an enumeration of defense articles and defense services and is published in the Department of State's International Traffic in Arms Regulations.

National Policy and Procedures for the Disclosure of Classified Military Information to Foreign Governments and International Organizations (U)

National Disclosure Policy (NDP-1) Promulgates national policy and procedures in the form of specific disclosure criteria and limitations, definitions of terms, release arrangements, and other guidance required by US departments and agencies having occasion to release classified US military information to foreign governments and international organizations. In addition it establishes and provides for the management of an interagency mechanism, and includes procedures that are required for the effective implementation of that policy.

National Stock Number A thirteen-digit stock number consisting of a four-digit federal supply classification and a nine-digit national item identification number.
NATO Codification System (NCS)

A supply codification system developed by the U.S. and adopted by NATO and non-NATO partners. The NCS standardizes item identification processes to permit item interchangeability between international partners and contributes to systems interoperability.

Net Case Value

Total amount of the cost reflected on line 21 of the DD Form 1513 or line 8 of the LOA.

Nonrecurring Costs (NRC or NC)

Those costs funded by an RDT&E appropriation to develop or improve a product or technology either through contract or in-house effort. Also, those one-time costs incurred in support of previous production of a specified model and those costs incurred in support of a total projected production run.

Nonrepayable Credits/Loans

Grant funds appropriated by Congress for use in the Foreign Military Financing Program under Title III of the annual Foreign Operations Appropriations Act. Formerly termed "forgiven credits/loans," these grant funds are allocated to selected countries for their use in financing FMS acquisitions of defense articles, defense services, and training under the authority of section 23, AECA. Additionally, certain countries may be authorized these grant funds to finance direct commercial sales.

Nonstandard Article

For FMS purposes, a nonstandard article is one that the DoD does not manage, either because an applicable end item has been retired or because it was never purchased for DoD components.

Nonstandard Service

For FMS purposes a nonstandard service is a service that the DoD does not routinely provide for itself or for purchase.

Notice of Availability (NOA)

A written notification that material requiring special handling is ready to be shipped. The NOA is sent by the shipper to the purchaser or freight forwarder for oversized, hazardous, explosive, classified or perishable material, and requires a response from the recipient with delivery instructions.


A duty to make a future payment of money. The duty is incurred as soon as an order is placed, or a contract is awarded for the delivery of goods and the performance of services. It is not necessary that goods actually be delivered, or services actually performed, before the obligation is created; neither is it necessary that a bill, or invoice be received first. The placement of an order is sufficient. An obligation legally encumbers a specified sum of money which will require an outlay or expenditure in the future.

Obligational Authority (OA, as used in FMS)

A document or authority passed from DFAS-IN to an implementing DoD component which allows obligations to be incurred against a given FMS case in an amount not to exceed the value specified in the obligational authority.


Amounts of orders placed, contracts awarded, services received, and similar transactions during a given period requiring the future payment of money. Such amounts include adjustments for differences between obligations previously recorded and accrued expenditures of actual payments.

Observer Training (OBT)

Special training conducted to permit international military students to observe U.S. military techniques and procedures.

Offer Date

The date which appears on the offer portion of an LOA and which indicates the date on which an FMS offer is made to a foreign buyer.

Offset Agreement

An agreement, arrangement, or understanding between a U.S. supplier of defense articles or services and a foreign country under which the supplier agrees to purchase or acquire, to promote the purchase or acquisition by other U.S. persons, of goods or services produced, manufactured, grown, or extracted, in whole or in part, in that foreign country in consideration for the purchase by the country of defense articles or services from the supplier [Sec. 39A(d)(1), AECA]. See also direct offset and indirect offset.

Omnibus Billing Statement Of Account

A statement of additional charges or credits to cases that have been recategorized from active to inactive status.

On-the-Job Training (OJT)

A training program whereby international military students (IMSs) acquire knowledge and skills through the actual performance of duties under competent supervision in accordance with an approved, planned program.

Operation & Maintenance (O&M) Costs

Costs associated with equipment, supplies, and services required to train, operate, and maintain forces in a recipient country, including the cost of spare parts other than concurrent spares and initial stockages, ammunition and missiles used in training or replacements for such items expended in training or operations, rebuild and overhaul costs (excluding modernization) of equipment subsequent to initial issue, training and other services that do not constitute investment costs, and administrative costs associated with overall program management and administration.

Oral Proficiency Interview (OPI)

English language test that rates English language speaking ability for international military students. Certain courses require an OPI test be taken and a specific OPI score to be met before an IMS can attend the course.

Ordering Activity

An activity that originates a requisition or order for procurement, production, or performance of work or service by another activity.

Orientation Tour (OT)

A tour arranged for key foreign personnel that may be funded under FMS or IMET to acquaint them with U.S. organizations, equipment, facilities, or methods of operation at various locations.


Actual expenditures. Checks issued, interest occurred on the public debt, or other payments. Total budget outlays consist of the sum of the outlays from appropriations and other funds in the budget, less receipts (i.e., refunds and reimbursements).

Outside CONUS

All geographic areas not within the territorial boundaries of the continental United States. OCONUS includes Hawaii and Alaska.

Packing, Crating, Handling, & Transportation (PCH&T)

The resources, processes, procedures, design considerations, and methods to ensure that all system, equipment, and support items are preserved, packaged, handled, and transported properly, including: environmental considerations, equipment preservation requirements for short-and-long-term storage, and transportability. One of the principal elements of integrated logistics support (ILS).

Paramilitary Forces

Forces or groups which are distinct from the regular armed forces of any country, but resemble them in organization, equipment, training, or mission.

Payment on Delivery [FMS]

An FMS term of sale in which the U.S. government issues a bill to the FMS purchaser at the time of delivery of defense articles or the rendering of defense services from DoD resources. This term may only be used pursuant to a written statutory determination by the Director, DSCA, who may find it in the national interest to authorize such payment. Based on presidential action, this term may also be modified to read "Payment 120 Days After Delivery."

Payment Schedule

List of dollar amounts and when they are due from the foreign customer. The payment schedule is included in the Letter of Offer and Acceptance (LOA) presented to the customer. After implementation of the LOA, the payment schedule generally serves as the basis for billing to the foreign partner. Changes in the estimated costs of an FMS case may require changes in the accompanying payment schedule.

Performance-Based Logistics

The DoD strategy of purchasing support in terms of systems readiness and performance outcome, rather than simply acquiring and stocking material on demand. DOD contracts with a manufacturer who is responsible for ensuring optimum system performance by providing complete logistics support to the customer.

Performing Activity

An activity which is responsible for performing work or service, including the production of material and/or the procurement of goods and services from other contractors and activities.

Planning, Programming, Budgeting And Execution System (PPBES)

An integrated system for the establishment, maintenance, and revision of the Future Years Defense Plan (FYDP) and the DoD budget.

Port of Debarkation (POD)

A military or commercial air or ocean port at which materiel is offloaded. Also referred to as the Port of Discharge.

Port of Embarkation (POE)

A military or commercial air or ocean port at which a carrier begins the journey to deliver materiel to the consignee. This is also referred to as the Port of Exit.

President's Budget

See federal budget.

Price and Availability (P&A) Data

Prepared by the MILDEPs, DSCA, and other DoD components in response to a foreign government's request for preliminary data for the possible purchase of a defense article or service. P&A data are not considered valid for the preparation of an LOA. Furnishing of this data does not constitute a commitment for the USG to offer for sale the articles and services for which the data are provided.


Act of buying goods and services for the government.

Procurement Lead Time

The interval in months between the initiation of procurement action and receipt into the supply system of the production model (excluding prototypes) purchased as the result of such actions; procurement lead time is composed of two elements, production lead time, and administrative lead time.

Procuring Contracting Officer (PCO)

The individual authorized to enter into contracts for supplies and services on behalf of the government by detailed bids or negotiations and who is responsible for overall procurement under such contracts.

Production Lead Time

The time interval between the placement of a contract and receipt into the supply system of materiel purchased.

Professional Military Education (PME)

Career training designed to provide or enhance leadership and the recipient force's capabilities to conduct military planning, programming, management, budgeting, and force development to the level of sophistication appropriate to that force.

Program Management Review (PMR)

A management level review held by a Systems Program Office or Systems Program Manager for the purpose of determining the status of an assigned system. PMRs are designed as tools to identify problems, if any, and to develop appropriate follow-up actions as required.

Progress Payments

Those payments made to contractors or DoD industrial fund activities as work progresses under a contract; payments are made on the basis of cost incurred or percentage of work completed, or of a particular stage of completion accomplished prior to actual delivery and acceptance of contract items.


The process of determining the type and quantity of repair parts required to be available to support and maintain a weapon system through its initial period of service. The DoD provisions each weapon system by identifying component characteristics, maintenance intervals, levels of repair and military essentiality, to enable logistics managers to procure and stock the most critical items needed to support the system.

Quality Assurance (QA)

A planned and systematic pattern of all actions necessary to provide confidence that adequate technical requirements are established, that products and services conform to established technical requirements, and that satisfactory performance is achieved.


The formal action of the President in giving effect to a treaty that has been approved by the Senate. The President or his representative meets with representatives of the other signatory parties and exchanges ratifications with them. The treaty then is officially proclaimed and becomes legally enforceable.

Rationalization, Standardization And Interoperability (RSI)

Any action that increases the effectiveness of NATO Forces through more efficient or effective use of defense resources committed to the Alliance.


A revision of an annual apportionment of funds either upwards or downwards, accomplished within the fiscal year for which the original apportionment applied.


The congressional carrying over of funds unused in one year to the following year. For example, ESF or IMET funds which at the end of the fiscal year are not reserved or obligated, are customarily made available by the Congress for use in the subsequent fiscal year.

Reciprocal Defense Procurement

Procurement actions which are implemented under memoranda of understanding/memoranda of agreement (MOU/MOA) between the United States and various participating nations whereby the participants agree to effect complementary acquisitions of defense articles from each other's country.

Recoverable Item

An item that is normally not consumed in use and is subject to return for repair or disposal. See also reparable item.

Release In Principle (RIP)

A Communications Security (COMSEC) RIP is a USG policy decision related to disclosure of COMSEC information, products, or services in support of a secure interoperability requirement. A RIP is not an approval to physically transfer any COMSEC product. A RIP is required prior to any detailed discussions with the foreign nation regarding COMSEC products or associated COMSEC information requirements. RIPs are a means to support requirements definition for proposed solutions to fulfill U.S. secure interoperability requirements.

Release in Specific (RIS)

A Communications Security (COMSEC) RIS is a USG approval for release of a defined set (quantity and nomenclature) of COMSEC information, products, or services to a Partner Nation.

Reorder Point

The point at which time a stock replenishment requisition is submitted to maintain the predetermined stock age objective.

Repair and Replace [FMS]

Programs by which eligible Cooperative Logistics Supply Support Arrangement (CLSSA) customers return repairable carcasses to the United States and receive a serviceable item without awaiting the normal repair cycle time frame. The concept is that the replacement involves an exchange of CLSSA customer-owned stocks in the customer's hands and the CLSSA customer-owned stocks in the U.S. government inventory in the United States. Countries are initially charged the estimated repair cost, with adjustment to the actual repair cost upon completion of repair of the carcass.

Repair and Return

Programs by which eligible foreign countries return unserviceable repairable items for entry into the U.S. military department repair cycle. Upon completion of repairs, the same item is returned to the country and the actual cost of the repair is billed to the country.

Reparable Item

An item that can be reconditioned or economically repaired for reuse when it becomes unserviceable.


The purchase of items following the initial purchase, whether bought for the initial support of additional end items, stock replenishment, or other purposes.

Replenishment Spare Parts

Items and equipment, both repairable and consumable, purchased as spares by inventory control points and which are required to replenish stocks for use in the maintenance, overhaul, and repair of equipment, such as ships, tanks, guns, aircraft, engines, etc.


The transfer of funds between program elements or line items within an appropriation.

Request for Bid (RFB)

The formal document used in sealed bidding acquisitions to communicate government requirements to prospective contractors and to solicit bids.

Request for Proposal (RFP)

A solicitation used in negotiated acquisitions to communicate government requirements to prospective contractors and to solicit a proposal.

Requesting Authority

The organization with responsibility for planning regional or country capacity building activities and that identifies BPC case requirements by submitting an MOR.

Retainable Instructional Material (RIM)

Unclassified books, pamphlets, maps, charts, or other course material issued to and retained by the international military student and their U.S. classmates. It also includes official Field Studies Program materials.

Revolving Fund

A fund established to finance a cycle of operations to which reimbursements and collections are returned for reuse in a manner that will maintain the principal of the fund; e.g., working capital funds and industrial funds.

Safety Level

The quantity of materiel, in addition to the operating level of supply required to be on hand to permit continuous operations.

Second Source

Execution of established acquisition strategy to qualify two producers for the part or system. Sometimes called dual sourcing.

Secondary Appropriation

An appropriation account increased as a result of reimbursable orders from an implementing agency that cites one of the implementing agency's appropriations accounts. Activity in a secondary appropriation is not categorized as an FMS reimbursable.

Security Assistance (SA)

A group of programs authorized by the Foreign Assistance Act (FAA) of 1961, as amended, and the Arms Export Control Act (AECA) of 1976, as amended, or other related statutes by which the United States provides defense articles, military training, and other defense related services, by grant, loan, cash sale, or lease, in furtherance of national policies and objectives [Joint Pub 1-02, as amended through 14 April 2006].

Security Assistance Management Review (SAMR)

A management review led by a security assistance organization, for the purpose of determining the status of one or more specific programs . Such reviews may include the entire range of a purchaser's security assistance program.

Security Assistance Network (SAN)

SAN is a web-based system (also known as SANweb) that hosts various Security Cooperation applications and a library system for sharing documents. SAN also provides administrative functions to monitor and manage user accounts, control access to hosted applications and provides logs for system access and actions performed by the users. The SAN's counterpart, International SAN (ISAN), provides limited access to partner countries. It has only one application, Partner Security Cooperation - Training Management System.

Security Cooperation

Activities undertaken by the DoD to encourage and enable international partners to work with the United States to achieve strategic objectives. It includes all DoD interactions with foreign defense and security establishments, including all DoD-administered security assistance programs, that: build defense and security relationships that promote specific U.S. security interests, including all international armaments cooperation activities and security assistance activities; develop allied and friendly military capabilities for self-defense and multinational operations; and provide U.S. forces with peacetime and contingency access to host nations.

Security Cooperation Education and Training Working Group (SCETWG)

An annual geographic combatant command conference conducted for the purpose of establishing the SA and SC training program for each country. Attendees are the SCO training manager and representatives from DSCA, the MILDEP, training agencies , and other key SC training management personnel. Actual IMET and FMS training programs are submitted, reviewed and determinations made as to training availability. The CTFP program is also a major focus of the SCETWG.

Security Cooperation Information Portal (SCIP)

A DoD managed web-based system that provides access to FMS and security cooperation case-related data extracts as well as numerous other capabilities.

Security Cooperation Officer Token Administrator

The individual designated, in writing, by the Security Cooperation Office Chief to oversee and maintain the custody of each SCIP token within the Security Cooperation Organization.

Security Cooperation Organization (SCO)

Those DoD organizations permanently located in a foreign country and assigned responsibilities for carrying out of security cooperation management functions under section 515 of the Foreign Assistance Act and under Joint Publication 1-02, regardless of the actual name given to such DoD Component. SCOs include military assistance advisory groups, military missions and groups, offices of defense and military cooperation, liaison groups, and Defense Attaché personnel designated to perform security cooperation functions. The term "SCO" does not include units, formations, or other ad hoc organizations that conduct security cooperation activities such a mobile training teams, mobile education teams, or operational units conducting security cooperation activities. The generic term SCO replaces the former term Security Assistance Office (SAO).

Security Force Assistance (SFA)

DoD activities that contribute to the unified action by the USG to support the development of the capacity and capability of foreign security forces (FSF) and their supporting institutions. (DODI 5000.68, Oct 2010)

Senior Defense Official (SDO) and Defense Attaché (DATT)

Principal DoD official in a U.S. embassy, as designated by the Secretary of Defense. The SDO or DATT is the Chief of Mission's principal military advisor on defense and national security issues, the senior diplomatically accredited DoD military officer assigned to a diplomatic mission, and the single point of contact for all DoD matters involving the embassy or DoD elements assigned to or working from the embassy. The SDO or DATT is considered the dual-hatted chief of both the security cooperation organization (SCO) and defense attaché office (DAO) in the embassy. This position was established by DODD 5105.75, Department of Defense Operations at U.S. Embassies, December 21, 2007. The same document gives coordinating authority (see glossary definition) to the SDO or DATT for the purpose of ensuring that all DoD elements in a country are working in consonance with each other and under the guidance of the Chief of Mission. The SDO or DATT program replaces the now defunct U.S. Defense Representative (USDR) model.

Sensitive Materiel

Volatile and dangerous explosives which require special handling and transportation arrangements. The term sensitive also applies to highly desirable selected technologies which are not explosive, but which require special security procedures for transportation.

Service Contract

A contract that calls directly for a contractor's time and effort rather than for a physical end product.


The commercial or military manufacturer, vendor, supply depot, or repair facility that ships material in support of security cooperation programs on behalf of the DoD.

Significant Military Equipment (SME)

Defense articles for which special export controls are warranted because of the capacity of such articles for substantial military utility or capability. These items are identified on the U.S. Munitions List in the International Traffic in Arms Regulations (ITAR) by an asterisk preceding the item category listing.

Site Survey

A team of U.S. personnel who assess the FMS customer's logistics capabilities and shortfalls to determine the optimum type and quantity of logistics support to be included in the Total Package Approach.

Sole Source Acquisition

A contract for the purchase of supplies or services that is entered into or proposed to be entered into by an agency after soliciting and negotiating with only one source.


The formal document used in negotiating acquisitions to communicate government requirements to prospective contractors and to solicit proposals.

Source Selection

The process wherein the requirements, facts, recommendations, and government policy relevant to an award decision in a competitive procurement of a system/project are examined and the decision made.

Spares/Spare Parts

An individual part, subassembly, or assembly supplied for the maintenance or repair of systems or equipment.

Special Assignment Airlift Mission (SAAM)

A dedicated U.S. military aircraft, chartered to deliver sensitive, classified or explosive defense articles to a specific customer location when no commercial delivery capability exists.

Specialized English Training (SET)

Nine weeks of Specialized English Training at DLIELC provides intensive practice in the functional English language skills and technical terminology identified as essential for success in technical training courses and professional military education. Focuses on terminology the international military student will need to know in follow on courses.

Staging Cost

The cost incurred by DoD to consolidate materiel before shipment to an FMS customer. Includes costs incident to storage and control of inventory, consolidation of incoming articles into a single shipment, and a break in CONUS transportation.


The process by which DoD achieves the closest practicable cooperation among the military services and defense agencies for the most efficient use of research, development, and production resources, and agrees to adopt on the broadest possible basis the use of: a. Common or compatible operational, administrative, and logistic procedures b. Common or compatible technical procedures c. Common, compatible, or interchangeable supplies, components, weapons, or equipment d. Common or compatible tactical doctrine with corresponding organizational compatibility. As applied to NATO and to non-NATO countries, standardization involves the process of developing concepts, doctrines, procedures and designs to achieve and maintain the most effective levels of compatibility, interoperability, interchangeability and commonality in the fields of operations, administration, and materiel.

Standardization Agreement [NATO]

The record of an agreement among several or all of the members nations of NATO to adopt like or similar military equipment, ammunition, supplies and stores; and operational, logistics, and administrative procedures. National acceptance of a NATO allied publication issued by the Military Agency for Standardization may be recorded as a Standardization agreement.

Standardized Training List (STL)

List of all the Security Cooperation training courses that a country has requested from DoD and the status of the courses.

Supplemental Appropriations Bill

Legislation appropriating funds after the regular annual appropriations bill for a federal department or agency has been enacted. A supplemental appropriations bill provides additional budget authority beyond original estimates for programs or activities, including new programs authorized after the enactment of the regular appropriations act. Such bills are often passed in response to emergency or otherwise urgent requirements which are too important to be postponed until passage of the next regular appropriations bill.

Supply Discrepancy Report (SDR)

A process for international customers to file a complaint with the DoD for product loss, quality deficiencies, damage, and various other problems associated with the delivery of material under the FMS program.


The ability to maintain the necessary level and duration of combat activity to achieve national objectives. Sustainability is a function of providing and maintaining those levels of force, materiel, and consumables necessary to support a military effort.

System Program Office

The office of the program manager and the single point of contact with industry, government agencies, and other activities participating in the system acquisition process.

System Support Buyout

An opportunity for international partners to make a final purchase of major items and associated spares and support equipment of a major system that is being terminated in the DoD inventory, prior to the contracts or production being discontinued.

Teaming/Teaming Arrangements

An agreement of two or more firms to form a partnership or joint venture to act as a potential prime contractor; or an agreement by a potential prime contractor to act as a subcontractor under a specified acquisition program; or an agreement for a joint proposal resulting from a normal prime contractor-subcontractor, licensee-licensor, or leader company relationship.

Technical Assistance Field Team (TAFT)

A team of U.S. DoD personnel deployed on PCS status, normally for one year or longer, to a foreign country to provide technical assistance and training to foreign military personnel in the operation, maintenance, and employment of specific equipment, technology, weapons, supporting systems, or in other special skills related to military functions.

Technical Assistance Team (TAT)

A team of U.S. DoD personnel deployed to a foreign country on TDY status (i.e., up to 179 days) to place into operation, operate, maintain, and repair equipment provided under the FMS or MAP programs.

Technical Coordination Group (TCG)

A U.S. Air Force aviation support program that provides technical assistance for specific aircraft and engines. The TCG provides dedicated technical and engineering support to international partners who have purchased the aircraft or engines through the FMS program.

Technical Data (TD)

Recorded information of a scientific or technical nature, regardless of form or characteristic. Examples of technical data packages include research and engineering drawings and associated lists, specifications, standards, process sheets, manuals, technical reports, catalog item identifications, and related information and computer software documentation.

Technical Data Package (TDP)

Normally includes technical design and manufacturing information sufficient to enable the construction or manufacture of a defense item component modification, or to enable the performance of certain maintenance or production processes. It may include blueprints, drawings, plans, or instructions that can be used or adapted for use in the design, production, manufacture, or maintenance of defense items or technology.

Technical Manual

A publication containing instructions designed to meet the needs of personnel responsible for (or being trained in) the operation, maintenance, service, overhaul, installation, and inspection of specific items of equipment and materiel.

Theater Campaign Plans

Plans developed by geographic combatant commands that focus on the command's steady-state activities, which include operations, security cooperation, and other activities designed to achieve theater strategic end states. It is incumbent upon geographic Combatant Commanders to ensure any supporting campaign plans address objectives in the Global Environmental Fund global planning effort and their respective theater campaign plans. Contingency plans for responding to crisis scenarios are treated as branch plans to the campaign plan.

Theater Security Cooperation Strategy

The document of a geographic combatant commander which plans, prioritizes, and proposes allocation of DoD resources across the full spectrum of military engagement within an area of operations. Normally, the TSCS is augmented by individual plans for each country, routinely termed country campaign plans. The TSCS responds to the OSD-level Security Cooperation Guidance and, when approved, serves as the roadmap for the execution of security cooperation activities by the combatant command staff, the component commands, and the assigned SCOs.

Third Country/Party Transfers

The transfer from its current owner to a foreign government or any private entity of U.S. defense articles, services, training, or information originally acquired from the United States by a foreign government. As a condition of any U.S. Government authorized sale, lease or grant, the divesting party must agree to obtain the written consent of the Department of State prior to any temporary or permanent retransfer of, or access to, U.S.-provided defense articles, data, services, and training to a third party, defined as anyone not an officer, employee, or agent (defined as freight forwarder only) of the divesting government or of the USG. The term is also used to refer to the requirement to seek prior Department of State approval for modifications, changes in end-use, and disposal.

Total Obligational Authority (TOA)

TOA is the total amount of funds available for programming in a given year, regardless of the year the funds are appropriated, obligated, or expended. TOA includes new obligational authority, unprogrammed, or reprogrammed obligational authority from prior years, reimbursements not used for replacements of inventory in kind, advanced funding for programs to be financed in the future, and unobligated balances transferred from other appropriations.

Total Package Approach (TPA)

A means of ensuring that FMS customers are aware of and are given the opportunity to plan for and obtain needed support items, training, and services from the U.S. government contractors, or from within the foreign country's resources which are required to introduce and operationally sustain major items of equipment or systems.

Training Management System (TMS)

An Internet-based data system developed by DISCS for use in the SCO to manage the SA training program. TMS uses STL and MASL data downloaded from the SA Network to produce IMET and FMS management reports, invitational travel orders, and other training management documents.

Transfer and Receipt

A document which transfers title and custody of BPC defense articles and services from the U.S. Government representative in-country to the Benefitting Country. The document is dated and co-signed by both parties.

Transportation Plan

A document that details the transportation and security arrangements for moving classified or sensitive material, and identifies individuals responsible for providing security at various points during transportation.

Travel And Living Allowance (TLA)

Those costs associated with transportation, excess baggage, and living allowances (per diem) of IMSs which are authorized for payment under the IMET Program.


A formal agreement entered into between two or more countries. The treaty process includes negotiation, signing, ratification, exchange of ratifications, publishing and proclamation, and treaty execution. Treaties having only two signatory states are called bilateral; those with more than two parties are multilateral.

Trust Fund

A fund credited with receipts which are earmarked by law and held in trust, or in a fiduciary capacity, by the government for use in carrying out specific purposes and programs in accordance with an agreement.

Type of Address Code

One of several codes used in the MAPAD to identify a plain language address to which to ship a specific category of documents or material.

Type of Assistance Code

A code used to reflect the type of assistance (if any) and/or the planned source of supply for items/services identified on the LOA. Also known as a type of finance code.

Unaccepted Case

An FMS letter of offer that was not accepted or funded within the prescribed time shown on the LOA.

Uniform Materiel Movement and Issue Priority System (UMMIPS)

A DoD system of ranking materiel requirements and time standards for requisition processing and materiel movement through the use of a two-digit priority designator. It identifies the relative importance of competing demands for logistics resources.

United States Code (USC)

A consolidation and codification of the general and permanent laws of the United States arranged according to subject matter under fifty title headings. The USC sets out the current status of the laws, as amended. It presents the laws in a concise and usable form without requiring recourse to the many volumes of the Statutes at Large containing the individual amendments.


Disapproval by the President of a bill or joint resolution (other than one proposing an amendment to the Constitution). When Congress is in session, the President must veto a bill within ten days (excluding Sundays) of receiving it; otherwise, the bill becomes law without the President's signature. When the President vetoes a bill, it must be returned to the house of origin with a message stating the President's objections.

War Reserve Stocks for Allies

A DoD program whereby the services procure or retain in their inventories those minimum stockpiles of materiel such as munitions, equipment, and combat essential consumables to ensure support for selected allied forces in time of war until future in-country production and external resupply can meet the estimated combat consumption.

Weapon System Life Cycle Cost

A period divided into phases, ranging from the first consideration of the need for a weapon system through the development and in-service stages down to system phase-out and disposal.

Worldwide Warehouse Redistribution Service (WWRS)

A tri-service program that redistributes excess spare parts and support equipment acquired by foreign military sales customers.