Risk Assessed Payment Schedules (RAPS) Standard Note
Foreign Military Sales
Yes
Building Partner Capacity
No
Note Input Responsibility
CWD
Date Range Of Use
All
References
Note Usage Instructions for Documents

Mandatory for Foreign Military Sales (FMS) Letter of Offer and Acceptance (LOAs) when the Term of Sale of a Risk Assessment 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.

Note Text

"Risk Assessed Payment Schedules (RAPS) are authorized under Section 22 of the Arms Export Control Act (AECA) (22 U.S.C. 2762). The RAPS on this Letter of Offer and Acceptance (LOA) was calculated and approved by the Defense Security Cooperation Agency (DSCA) (Office of Business Operations, Financial Policy & Regional Execution Directorate (OBO/FPRE)). 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, 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. DSCA (OBO/FPRE) 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 DSCA (OBO/FPRE)."