FMS : No

BPC : Yes

Mandatory for all Amendments and Modifications to FY20/21 Title 10-funded BPC defense articles and services cases implemented prior to August 14, 2020.

Use with data from Table C15.T2. as applicable.

CWD

"Administrative surcharges are excluded from new line(s) [insert applicable line numbers], and will be funded through the program's current year, program-wide support case (or through other funds distribution processes (e.g., FADs, MIPRs), if applicable)."

[delete first paragraph if no new Lines were added after 14 Aug 2020]

"Administrative surcharge adjustments made due to increases or decreases to existing lines (implemented prior to 14 August 2020) are addressed in the applicable Administrative Surcharge case note in this LOA.

All other indirect charges (Contract Administration Services (CAS), Transportation and Packing, Crating & Handling (PC&H)), as allowed under policy related to the Interim BPC Accounting Solution, will continue under the provisions provided in the previous version of this LOA (see relative case notes within this LOA)."

"An administrative surcharge of 3.2% has been applied to lines [insert applicable line numbers]."

And/or

"An administrative surcharge of 3.5% has been applied to lines [insert applicable line numbers]."

And/or

"An administrative surcharge of 3.8% has been applied to lines [insert applicable line numbers]."

And/or

"An administrative surcharge of 2.5% has been applied to lines [insert applicable line numbers]."

And/or

"An administrative surcharge of 3% has been applied to lines [insert applicable line numbers]."

And/or

"An administrative surcharge of 5% has been applied to [insert applicable line numbers]."

And/or

"An administrative surcharge has not been applied to lines [include applicable line numbers]."

And, if needed, one of the following BPC-specific notes:

"The administrative surcharge has been manually calculated in accordance with the BPC Interim Accounting Solution, and adjusted to match actual execution at Case Level, based on DSCA direction, for the following line(s): [include applicable line numbers]."

[[FY20/21 T10 BPC cases implemented prior to August 14, 2020 only; this applies to direction received from DSCA to reduce admin on a case, but does not require reduction to zero for the specified case lines; retain all prior percentage notes, to include references to these Case Lines - future adjustments will require re-computation based on the original rates]]

Or

"The administrative surcharge has been manually reduced to zero in accordance with the BPC Interim Accounting Solution, based on DSCA direction, for the following line(s): [include applicable line numbers]."

[[FY20/21 T10 BPC cases implemented prior to August 14, 2020 only; this applies to direction received from DSCA to reduce admin to zero for the specified case lines; retain all prior percentage notes, to include references to these Case Lines - future adjustments will require re-computation based on the original rates]]

Or

"The administrative surcharge does not apply to lines added after implementation of the BPC Interim Accounting Solution. Affected lines are: [include applicable line numbers]."

[[FY20/21 T10 BPC cases implemented prior to August 14, 2020 only; retain all prior percentage notes, to include references to these Case Lines - future adjustments will require re-computation based on the original rates]]

Or

"Unit cost or price increases to a line, after implementation of the BPC Accounting Solution, does not increase the administrative surcharge; the administrative surcharge is manually set to the calculated rate of the line's pre-adjustment amounts. These manually-set amounts may decrease if the unit cost or price is later revised below the pre-adjusted amounts. Affected line(s) are: [include applicable line numbers]."

[[FY20/21 T10 BPC cases implemented prior to August 14, 2020 only; retain all prior percentage notes, to include references to these Case Lines - future adjustments will require re-computation based on the original rates]]

Only include the percentages that are included on the case.

C15.3.1.2.6.1. Transportation and PC&H. Starting ... on cases implemented after August 14, 2020 with DTC 2, 7, or 9.

C15.3.1.2.6.1. Transportation and PC&H. Starting ... on cases implemented on or after August 14, 2020 with DTC 2, 7, or 9.

Scope. All T10 BPC cases implemented after August 14, 2020 must not include any indirect (i.e. below-the-line) charges.

Scope. All T10 BPC cases implemented on or after August 14, 2020 must not include any indirect (i.e. below-the-line) charges.

In consultation with OUSD-C and DoD OGC Fiscal, DSCA determined that all existing T10 BPC cases that were financially implemented prior to August 14, 2020 may continue to include appropriate below-the-line indirect charges. Future amendments and modifications to these cases, may also include any associated CAS and below-the-line indirect charges, but must exclude the FMS administrative surcharge. All future bills for transportation and CAS on these existing cases will be paid from the funds already deposited in the FMS program-specific transportation and CAS accounts until depleted or the last appropriation cancels.

Amendments funded with FY 2020/2021 appropriations, require a new, separate line for quantity increases. These new lines will have a percent of zero for the FMS administrative surcharge rate. Amendments/modifications funded with FY 2020/2021 appropriations that are for a valid increase to unit cost can be assessed a rate for transportation and CAS. The cost for the administrative rate for these lines must not increase.

In consultation with OUSD-C and DoD OGC Fiscal, DSCA determined that all existing T10 BPC cases, funded with FY20/21 appropriations and financially implemented prior to August 14, 2020, may continue to include appropriate below-the-line indirect charges. However, future amendments and modifications to these cases will need to follow the below rules:

For Lines requiring a quantity change:

• Increased Quantity:
  • Requires a new, separate line for quantity increases
  • FMS Administrative surcharge rate on these new lines will use an override percent (OP) Indirect Pricing Component (IPC) code set to zero (0%)
    • Ensure the Administrative Surcharge case note reflects no surcharge for the new Lines. Case Note will retain existing percentage verbiage(s), and add the following verbiage:
      • "The administrative surcharges does not apply to lines added after implementation of the BPC Interim Accounting Solution. Affected lines are: [include applicable line numbers]."
  • CAS and Transportation surcharge rates may be included using SAMM guidance to determine the rate
    • Include the "Indirect Charges - Title 10 BPC - LOAs Implemented Prior to 14 Aug 2020" case note
• Decrease Quantity:
  • Retain original Line percentages, as applicable, for FMS Administrative, CAS, and Transportation Surcharge fees, and allow these fees to decrease accordingly
  • Manually-entered Transportation surcharge rates may be adjusted, if needed, to meet current requirements

For Lines requiring a valid unit cost or price change:

• Increased Unit Cost or Price:
  • FMS Administrative surcharge fee will not increase; instead, use an override cost (OC) Indirect Pricing Component (IPC) code to manually set the value to the pre-adjustment amount
    • Ensure the Administrative Surcharge case note reflects no surcharge change for the affected Lines. Case Note will retain existing percentage verbiage(s), and add the following verbiage:
      • "Unit cost or price increases to a line, after implementation of the BPC Accounting Solution, does not increase the administrative surcharge; the administrative surcharge is manually set to the calculated rate of the line's pre-adjustment amounts. These manually-set amounts may decrease if the unit cost or price is later revised below the pre-adjusted amounts. Affected lines are: [include applicable line numbers]."
  • CAS and Transportation surcharge fees will increase accordingly based on the rates in place when the case was implemented or when the Line was created or last amended/modified, as applicable
    • Include the "Indirect Charges - Title 10 BPC - LOAs Implemented Prior to 14 Aug 2020" case note
• Decreased Unit Cost or Price:
  • CAS and Transportation Surcharge percentage rates:
    • Retain original Line Surcharge percentages, as applicable, and allow these fees to decrease accordingly
  • FMS Administrative Surcharge rates:
    • No prior adjustments: Retain original Line Surcharge percentages, and allow these fees to decrease accordingly
    • Prior adjustments made from Increase Unit Cost section above: recalculate the FMS Administrative cost based on the pre-adjustment percentage rate to compare to the existing manually-computed amount.
      • If less, change the IPC back to the original percentage code.
      • If more, make no changes to the manual amount.
• Admin-only Lines changes - amount remains the same:
  • All percentage-based Surcharge rates remain unchanged
• In all above scenarios:
  • Manually-entered Transportation Surcharges may be adjusted, if needed, to meet current requirements; otherwise no change required

Adding New Lines (not as a result of a quantity change referenced above):

• CAS and Transportation Surcharges existed on the LOA prior to August 14, 2020:
  • Continue to use the applicable rates in place for the existing case on new Lines.
  • FMS Administrative surcharge rate on these new lines will use an override percent (OP) Indirect Pricing Component (IPC) code set to zero (0%).
    • Ensure the Administrative Surcharge case note reflects no surcharge for the new Lines. Case Note will retain existing percentage verbiage(s), and add the following verbiage:
      • "The administrative surcharge does not apply to lines added after implementation of the BPC Interim Accounting Solution. Affected lines are: [include applicable line numbers]."
• No CAS and Transportation Surcharges existed on the LOA prior to August 14, 2020:
  • Do not include CAS and Transportation Surcharge rates for these Lines.
    • Include the "Indirect Charges - Title 10 BPC - LOAs Implemented Prior to 14 Aug 2020" case note if CAS and/or Transportation is still required for existing Lines
  • FMS Administrative surcharge rate on these new lines will use an override percent (OP) Indirect Pricing Component (IPC) code set to zero (0%)
    • Ensure the Administrative Surcharge case note reflects no surcharge for the new Lines. Case Note will retain existing percentage verbiage(s), and add the following verbiage:
      • "The administrative surcharge does not apply to lines added after implementation of the BPC Interim Accounting Solution. Affected lines are: [include applicable line numbers]."

For Lines requiring the total removal of FMS Admin based on DSCA direction:

• Use the override cost (OC) Indirect Pricing Component (IPC) code to manually set the value to zero.
  • Ensure the Administrative Surcharge case note reflects no surcharge change for the affected Line(s). Case Note will retain existing percentage verbiage(s), and add the following verbiage:
    • "The administrative surcharge has been manually reduced to zero in accordance with the BPC Interim Accounting Solution, based on DSCA direction, for the following line(s): [include applicable line numbers]."

For Lines requiring the partial removal of FMS Admin based on DSCA direction:

• Use the override cost (OC) Indirect Pricing Component (IPC) code to manually set the value to the amount provided by DSCA.
  • Ensure the Administrative Surcharge case note reflects no surcharge change for the affected Line(s). Case Note will retain existing percentage verbiage(s), and add the following verbiage:
    • "The administrative surcharge has been manually calculated in accordance with the BPC Interim Accounting Solution, and adjusted to match actual execution at Case Level, based on DSCA direction, for the following line(s): [include applicable line numbers]."

Implementing Agencies (IAs)

1. LOAs in "Implemented" Status prior to August 14, 2020. All existing T10 BPC cases, financially implemented prior to August 14, 2020 are allowed to follow the current process, which includes all future amendments and modifications and any associated CAS and below-the-line indirect charges to these existing cases. All future bills for transportation and CAS on these existing cases will be paid from the funds already deposited in the FMS program specific transportation and CAS accounts until depleted or last appropriation cancels. Amendments funded with FY 2020/2021 appropriations, require a new, separate line for all quantity funding increases. These new lines will have a percent of zero for the FMS administrative surcharge rate. Amendments/modifications funded with FY 2020/2021 appropriations that are for a valid increase to unit cost can be assessed a rate for transportation and CAS. The cost for the administrative rate for these lines must not increase (IAs will use "OC" to override the administrative costs).

Implementing Agencies (IAs)

1. LOAs in "Implemented" Status prior to August 14, 2020. All existing T10 BPC cases, funded with FY20/21 appropriations and financially implemented prior to August 14, 2020, may continue to include appropriate below-the-line indirect charges. However, future amendments and modifications to these cases will need to follow the below rules:
   1. For Lines requiring a quantity change:
      1. Increased Quantity:
         1. Requires a new, separate line for quantity increases
         2. FMS Administrative surcharge rate on these new lines will use an override percent (OP) Indirect Pricing Component (IPC) code set to zero (0%)
            1. Ensure the Administrative Surcharge case note reflects no surcharge for the new Lines. Case Note will retain existing percentage verbiage(s), and add the following verbiage:
               1. "The administrative surcharges does not apply to lines added after implementation of the BPC Interim Accounting Solution. Affected lines are: [include applicable line numbers]."
         3. CAS and Transportation surcharge rates may be included using SAMM guidance to determine the rate
            1. Include the "Indirect Charges - Title 10 BPC - LOAs Implemented Prior to 14 Aug 2020" case note
      2. Decrease Quantity:
         1. Retain original Line percentages, as applicable, for FMS Administrative, CAS, and Transportation Surcharge fees, and allow these fees to decrease accordingly
         2. Manually-entered Transportation surcharge rates may be adjusted if needed to meet current requirements
   2. For Lines requiring a valid unit cost or price change:
      1. Increased Unit Cost or Price:
         1. FMS Administrative surcharge fee will not increase; instead, use an override cost (OC) Indirect Pricing Component (IPC) code to manually set the value to the pre-adjustment amount
            1. Ensure the Administrative Surcharge case note reflects no surcharge change for the affected Lines. Case Note will retain existing percentage verbiage(s), and add the following verbiage:
               1. "Unit cost or price increases to a line, after implementation of the BPC Accounting Solution, does not increase the administrative surcharge; the administrative surcharge is manually set to the calculated rate of the line's pre-adjustment amounts. These manually-set amounts may decrease if the unit cost or price is later revised below the pre-adjusted amounts. Affected lines are: [include applicable line numbers]."
         2. CAS and Transportation surcharge fees will increase accordingly based on the rates in place when the case was implemented or when the Line was created or last amended/modified, as applicable
            1. Include the "Indirect Charges - Title 10 BPC - LOAs Implemented Prior to 14 Aug 2020" case note
      2. Decreased Unit Cost or Price:
         1. CAS and Transportation Surcharge percentage rates:
            1. Retain original Line Surcharge percentages, as applicable, and allow these fees to decrease accordingly
         2. FMS Administrative Surcharge rates:
            1. No prior adjustments: Retain original Line Surcharge percentages, and allow these fees to decrease accordingly
            2. Prior adjustments made from section b.i.1. above: recalculate the FMS Administrative cost based on the pre-adjustment percentage rate to compare to the existing manually-computed amount.
               1. If less, change the IPC back to the original percentage code.
               2. If more, make no changes to the manual amount.
      3. Admin-only Lines changes - amount remains the same:
         1. All percentage-based Surcharge rates remain unchanged
      4. In all above scenarios:
         1. Manually-entered Transportation Surcharges may be adjusted if needed to meet current requirements; otherwise no change required
   3. Adding New Lines (not as a result of a quantity change referenced above):
      1. CAS and Transportation Surcharges existed on the LOA prior to August 14, 2020:
         1. Continue to use the applicable rates in place for the existing case on new Lines.
         2. FMS Administrative surcharge rate on these new lines will use an override percent (OP) Indirect Pricing Component (IPC) code set to zero (0%)
            1. Ensure the Administrative Surcharge case note reflects no surcharge for the new Lines. Case Note will retain existing percentage verbiage(s), and add the following verbiage:
               1. "The administrative surcharges does not apply to lines added after implementation of the BPC Interim Accounting Solution. Affected lines are: [include applicable line numbers]."
      2. No CAS and Transportation Surcharges existed on the LOA prior to August 14, 2020:
         1. Do not include CAS and Transportation Surcharge rates for these Lines.
            1. Include the "Indirect Charges - Title 10 BPC - LOAs Implemented Prior to 14 Aug 2020" case note if CAS and/or Transportation is still required for these Lines
         2. FMS Administrative surcharge rate on these new lines will use an override percent (OP) Indirect Pricing Component (IPC) code set to zero (0%)
            1. Ensure the Administrative Surcharge case note reflects no surcharge for the new Lines. Case Note will retain existing percentage verbiage(s), and add the following verbiage:
               1. "The administrative surcharges does not apply to lines added after implementation of the BPC Interim Accounting Solution. Affected lines are: [include applicable line numbers]."
   4. For Lines requiring the total removal of FMS Admin based on DSCA direction:
      1. Use the override cost (OC) Indirect Pricing Component (IPC) code to manually set the value to zero.
         1. Ensure the Administrative Surcharge case note reflects no surcharge change for the affected Line(s). Case Note will retain existing percentage verbiage(s), and add the following verbiage:
            1. "The administrative surcharge has been manually reduced to zero in accordance with the BPC Interim Accounting Solution, based on DSCA direction, for the following line(s): [include applicable line numbers]."
   5. For Lines requiring the partial removal of FMS Admin based on DSCA direction:
      1. Use the override cost (OC) Indirect Pricing Component (IPC) code to manually set the value to the amount provided by DSCA.
         1. Ensure the Administrative Surcharge case note reflects no surcharge change for the affected Line(s). Case Note will retain existing percentage verbiage(s), and add the following verbiage:
         2. "The administrative surcharge has been manually calculated in accordance with the BPC Interim Accounting Solution, and adjusted to match actual execution at Case Level, based on DSCA direction, for the following line(s): [include applicable line numbers]."