DEFENSE SECURITY COOPERATION AGENCY 2800 DEFENSE PENTAGON WASHINGTON, D.C. 20301-2800

11/17/2022

MEMORANDUM FOR :

DEPUTY UNDER SECRETARY OF THE AIR FORCE FOR INTERNATIONAL AFFAIRS
DEPUTY ASSISTANT SECRETARY OF THE ARMY FOR DEFENSE EXPORTS AND COOPERATION
DEPUTY ASSISTANT SECRETARY OF THE NAVY FOR INTERNATIONAL PROGRAMS
DIRECTOR, DEFENSE CONTRACT MANAGEMENT AGENCY
DIRECTOR, DEFENSE INFORMATION SYSTEMS AGENCY
DIRECTOR, DEFENSE LOGISTICS AGENCY
DIRECTOR, DEFENSE THREAT REDUCTION AGENCY
DIRECTOR, MISSILE DEFENSE AGENCY
DIRECTOR, NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY
DIRECTOR FOR SECURITY ASSISTANCE, DEFENSE FINANCE AND ACCOUNTING SERVICE - INDIANAPOLIS OPERATIONS
DIRECTOR OF CYBERSECURITY DIRECTORATE AND DEPUTY NATIONAL MANAGER FOR NATIONAL SECURITY SYSTEMS, NATIONAL SECURITY AGENCY

SUBJECT :

Security Assistance Management Manual Policy Memorandum 22-85, Interim Guidance on Multinational Foreign Military Sales cases with North Atlantic Treaty Organization Supply and Procurement Agency

REFERENCE :

1. DSCA Policy Memorandum 20-39, C5.6. Multinational Foreign Military Sales (FMS), November, 17, 2020

This memorandum provides updated, temporary guidance on certain Foreign Military Sales (FMS) cases with North Atlantic Treaty Organization (NATO) Supply and Procurement Agency (NSPA) that are in support of NATO Support or Procurement Partnerships (SP). Effective immediately, and until final guidance is issued, all Letters of Request (LORs) from NSPA for multinational (MN) FMS cases (cases that contemplate the transfer of articles or services from NSPA to one or more NATO nations) will be either for Lead Nation (LN) (using Customer Code "N4") or Agent Sales (using Customer Code "W7"), in accordance with SAMM Section C5.6.1.2. and Section C5.6.2. This memorandum applies until separate policy guidance is established for FMS cases that support NSPA LORs for NATO Support or Procurement Partnerships (SP) as described in SAMM Section C5.6.1.1.

The referenced policy provided guidance that NSPA cases in support of NATO SP are viewed as a type of LN sale, per Section C5.6.1.1. The policy for FMS cases supporting NATO SP, as described in Section C5.6.1.1., is currently under review. This memorandum clarifies that FMS cases intended to support NATO SPs through retransfers to participating nations must be implemented as either a LN or Agent Sale case. The LN and Agent Sale models, per SAMM Section C5.6.1.2. and Section C5.6.2.1., ensure all standard terms and conditions requisite under U.S. law are agreed to by recipient entities.

The Implementing Agencies (IAs) will continue to ensure all other requirements in SAMM Section C5.6. are followed for the development of a MN FMS case.

If you have questions on this memorandum, please contact Mel Dockstader, DSCA (Office of Strategy, Plans, and Policy, Execution Policy and Analysis Directorate (SPP/EPA)) at (703) 692-6657, Melissa.m.dockstader.civ@mail.mil.

James A. Hursch
Director