Mandatory for Foreign Military Sales (FMS) Letters of Offer and Acceptance (LOAs), Amendments, and Modifications that add/include procurement lines for Saudi Arabia, Australia, Egypt, Greece, Israel, Japan, Jordan, Korea, Kuwait, Pakistan, Philippines, Taiwan, Thailand, Türkiye, and the Venezuelan Air Force unless the latest version of the note is on the Implemented Version.
For Saudi Arabia:
"All U.S. Government contracts resulting from this Letter of Offer and Acceptance (LOA) must contain one of the following provisions, unless laws of the Kingdom of Saudi Arabia call for prescribing sales commissions or agents' fees, and payment thereof is approved in writing by the purchaser before contract award:
For firm fixed-price contracts or fixed-price contracts with economic price adjustment:
The contractor certifies that the contract price (including any subcontracts awarded hereunder) does not include any direct or indirect costs of sales commissions or fees for contractor sales representatives for the solicitation or promotion or otherwise to secure the conclusion of the sale of any of the supplies or services called for by this contract to [insert Purchaser].
For all other types of contracts:
Notwithstanding any other provision of this contract, any direct or indirect costs of sales commissions or fees for contractor (or subcontractor) sales representatives for the solicitation or promotion or otherwise to secure the conclusion of the sale of any of the supplies or services called for by this contract to [insert Purchaser] will be considered as an unallowable item of cost under this contract."
For Australia, Egypt, Greece, Israel, Japan, Jordan, Korea (Republic of), Kuwait, Pakistan, Philippines, Taiwan, Thailand, Turkey, and the Venezuelan Air Force:
All U.S. Government contracts resulting from this Letter of Offer and Acceptance (LOA) must contain one of the following provisions, unless the sales commission and fee have been identified and payment thereof approved in writing by [insert Purchaser] before contract award:
For firm fixed-price contracts or fixed-price contracts with economic price adjustment:
The contractor certifies that the contract price (including any subcontracts awarded hereunder) does not include any direct or indirect costs of sales commissions or fees for contractor sales representatives for the solicitation or promotion or otherwise to secure the conclusion of the sale of any of the supplies or services called for by this contract to [insert Purchaser].
For all other types of contacts:
Notwithstanding any other provision of this contract, any direct or indirect costs of sales commissions or fees for contractor (or subcontractor) sales representatives for the solicitation or promotion or otherwise to secure the conclusion of the sale of any of the supplies or services called for by this contract to [insert Purchaser] will be considered as an unallowable item of cost under this contract."