See Section C9.5. and Table C9.T4.
Mandatory for Foreign Military Sales (FMS) Letter of Offer and Acceptance (LOAs), Amendments, and Modifications when any lines use a Source of Supply of "X" or "P" unless the latest version of the note is on the Implemented Version.
"For any lines on this Letter of Offer and Acceptance (LOA) document with a Source of Supply of 'X' or 'P,' the Contract Administration Services (CAS) surcharge rates apply: for Contract Administration, ___%; for Quality Assurance and Inspection, ___%; for Contract Audit, ___%, for Overseas CAS, ___% [if Overseas CAS is applicable]. CAS has only been applied to the portion of "X"-coded lines expected to come from procurement."
If a CAS waiver applies, add the following statement:
"A waiver is authorized for the following CAS components: [fill in those that apply] based on [add reference and date]."