Skip to main content

Risk Assessed Payment Schedules (RAPS) Standard Note

FMS: 
Yes
BPC: 
No
Note Input Responsibility: 
CWD
Note Usage: 

Mandatory for FMS LOAs when the Term of Sale of Risk Assessed Payment Schedule (RAPS) has been approved.

This note should be included beneath the payment schedule.

Mandatory for Amendments and Modifications when RAPS remains a valid Term of Sale.

References : 
Note Text : 

"Risk Assessed Payment Schedules (RAPS) are authorized under Section 22 of the Arms Export Control Act. The RAPS on this Letter of Offer and Acceptance was calculated and approved by DSCA's Country Financial Management (CFM) division. The initial deposit or due with amendment acceptance amount is front loaded to include the highest projected termination liability amount, and the payment schedule requires payments one year in advance of expected financial requirements, in order to mitigate risk to the U.S. Government. The U.S. Government reserves the right to bill for additional amounts if, during the execution phase, actual costs materialize at a rate that cannot be supported by the LOA's stated payment schedule. CFM must be notified and provide written approval prior to any payment schedule adjustments via a LOA modification or amendment. Any questions or concerns regarding RAPS should be addressed to CFM."