DSCA Policy Memo 20-47, Department of Defense Appropriated Building Partner Capacity (BPC) Accounting Interim Solution has been posted.

Title 10 (T10) BPC authorities leverage the existing Foreign Military Sales (FMS) process and infrastructure to procure authorized defense articles and defense services, as well as track and report BPC case execution to support Department of Defense security objectives. To utilize the FMS process, T10 BPC funds are transferred to the FMS Trust Fund under the authority of the Economy Act (31 U.S.C. § 1535). Based upon recent guidance from the Office of the Under Secretary of Defense, Comptroller (OUSD-C) and DoD Office of General Counsel (DoD OGC) Fiscal, DSCA determined that BPC case funds transferred to the FMS Trust Fund for indirect charges (i.e. FMS Administrative surcharges, Contract Administration Services (CAS) surcharges, transportation, and Packing Crating and Handling (PC&H) costs) do not conform to U.S. Government (USG) accounting and appropriation fiscal requirements. The interim solution will be implemented on October 1, 2020 (Fiscal Year 2021).

This memo:

• Adds C15.3.1.1. Title 10 (T10) BPC Accounting Interim Solution. and sub sections

• Modifies Table C9.T2. Case-Related Manpower Functions and Funding Source Manpower Matrix

• Modifies LOA Note Building Partner Capacity (BPC) Materiel Transfer

• Adds LOA Note Indirect Charges - Title 10 BPC

• Adds LOA Note Packing, Crating & Handling (PC&H) - Title 10 BPC Note

• Adds LOA Note Transportation - Title 10 BPC Note

• Adds LOA Note Transportation Charges Not Included - BPC