Attachment: Security Assistance Management Manual E-Change 708

1. Globally update the SAMM to portray currency in the short form of $X million when the amounts end in a string of zeros, excluding tables and data entry requirements.

2. Chapter 5 updates:

   Current:

   C5.4.15. Pen and Ink Changes. There may be times when minor changes need to be made to an LOA after it has been countersigned and offered to the purchaser. Minor changes can be made if the LOA is in "OFFERED" Status, the purchaser has not yet signed the LOA, the OED has not yet expired, and all changes are consistent with FMS policies and procedures. The purchaser must be authorized via email or memorandum to make any Pen and Ink changes, with a copy to Defense Finance and Accounting Services - Indianapolis (DFAS-IN). All changes, including Pen and Ink, must be updated in DSAMS. Pen and Ink changes should be kept to a minimum, with processing as follows:

   C5.4.15.1. Offer Expiration Date Changes. Normally, the greater the period of time between Offer and Acceptance, the greater the likelihood of decreased accuracy of pricing and availability data. Requests by the purchaser to extend the expiration date are honored only after a review by the IA to ensure data are still valid for the extended period. All concerned should be advised of any consequences associated with the extension.

   C5.6.1.1. North Atlantic Treaty Organization Support or Procurement Partnerships. 10 U.S.C. 2350(d) permits DoD to participate in and support NATO Support or Procurement Partnerships (SPs) provided that all conditions of the AECA are met. Under NATO SPs, sales are made to the NATO Support and Procurement Agency (NSPA) for retransfer to members of the partnership. All multinational FMS cases will be either Lead Nation or Agent Sales until new policy guidance for NSPA Support Partnerships is established (see DSCA Policy Memorandum 22-85 for more information). NATO SP Agreements may contain terms consistent with those of the AECA that permit retransfer of defense articles purchased through such arrangements among members of the partnership but that require separate retransfer authorizations for transfers outside the partnership. Prior to 2015, in order to comply with AECA Section 3, FMS sales to NATO SPs were generally limited to non-Significant Military Equipment (SME) spare and repair parts so that subsequent retransfers remained below AECA dollar thresholds otherwise requiring prior notification to Congress. In 2015 NSPA expanded its charter to include procurement and lifecycle support of major end items, necessitating development of new FMS sales models.

   C5.6.1.3.1. North Atlantic Treaty Organization Support Partnerships. NSPA purchases for NATO SPs using Security Cooperation Customer Code (SCCC) N4. For sales that involve spare and repair parts, no special notes or formatting is required. Such sales will normally not require a Country Team Assessment (CTA) or Combatant Command (CCMD) endorsement unless requested by DSCA per Section C5.1.4. Case development will occur as a sale to a NATO agency without reference to the Participating Nations, subsequent retransfers will take place pursuant to the terms of the SP charter agreement. More complex sales in support of NATO SPs will generally take place through Lead Nation Procurement or Agent Sales.

   C5.6.1.7.1. "Lead Nation Procurement" should appear in the nickname field beneath the case identifier. Each case shall include a version of the note in Figure C5.F16. developed by the IA and cleared separately by the DSCA (IOPS) CPD with DSCA (SPP/EPA) and DSCA (FO/OGC).

   C5.6.2.5.1. Security Cooperation Customer Code. NSPA purchases as an Agent using SCCC W7 exclusively for such sales. No special notes or formatting is required. OCCAR, which may purchase on behalf of other countries only as an Agent, uses SCCC 7B.

   C5.6.2.5.2. Letter of Offer and Acceptance Special Notes and Formatting. The Case Description should include language derived from Figure C5.F20.

   Figure C5.F20. Draft Case Description

   C5.6.2.5.2.2. Case lines will be organized in groups, first of defense articles, then defense services, and finally training. In each group, lines should be further grouped by Principal and the Principal identified for each line.

   C5.6.2.5.2.3. The IA will include a note in the case, Appendix 6 - FMS Agent Sale, to outline terms and conditions relating to the Agent. It need not be restated on Modifications or Amendments if the current implemented case has the latest version.

   Revised:

   C5.4.15. Pen and Ink Changes. There may be times when minor changes need to be made, with both purchaser and IA agreement, to an LOA after it has been countersigned and offered to the purchaser. OED (see Section C5.4.15.1.), minor (see Section C5.4.15.2.) or major (see Section C5.4.15.3.) changes can be made if the LOA is in "OFFERED" Status, the purchaser has not yet signed the LOA, the OED has not yet expired, and all changes are consistent with FMS policies and procedures. The purchaser must be authorized via email or memorandum to make any Pen and Ink changes, with a copy of the email or memorandum to Defense Finance and Accounting Services - Indianapolis (DFAS-IN) for awareness that the LOA is being updated. All changes, including Pen and Ink, must be updated in DSAMS, with the updated copy of the LOA provided to purchaser. Pen and Ink changes should be kept to a minimum, with processing as follows:

   C5.4.15.1. Offer Expiration Date Changes. Normally, the greater the period of time between Offer and Acceptance, the greater the likelihood of decreased accuracy of the LOA data. The OED may be extended, without a requirement for case restatement, only if requested no later than 6 months after the current valid OED expiration, the document is not cancelled (see Section C5.4.14.7.), and completion of IA review by the IA ensuring data are still valid for the extended period. All concerned should be advised of any consequences associated with the extension. Minor (see Section C5.4.15.2.) and MOS changes that result from the extension are updated as well. Payment schedules can only be updated to correspond with the MOS changes (see Section C5.4.15.3.).

   C5.6.1.1. North Atlantic Treaty Organization Support or Procurement Partnerships. 10 U.S.C. 2350(d) permits DoD to participate in and support NATO Support or Procurement Partnerships (SPs) provided that all conditions of the AECA are met. Under NATO SPs, sales are made to the NATO Support and Procurement Agency (NSPA) for retransfer to members of the partnership. All multinational FMS cases will be either Lead Nation or Agent Sales until new policy guidance for NSPA Support Partnerships is established (see DSCA Policy Memorandum 22-85 for more information). NATO SP Agreements may contain terms consistent with those of the AECA that permit retransfer of defense articles purchased through such arrangements among members of the partnership but that require separate retransfer authorizations for transfers outside the partnership. Prior to 2015, in order to comply with AECA Section 3, FMS sales to NATO SPs were generally limited to non-Significant Military Equipment (SME) spare and repair parts so that subsequent retransfers remained below AECA dollar thresholds otherwise requiring prior notification to Congress. In 2015 NSPA expanded its charter to include procurement and lifecycle support of major end items, necessitating development of new FMS sales models.

   C5.6.1.3.1. North Atlantic Treaty Organization Support Partnerships. NSPA purchases for NATO SPs use Security Cooperation Customer Code (SCCC) N4 (see DSCA Policy Memorandum 22-85). To differentiate other purposes of this SCCC, the case nickname field is used as follows: "NSPA Procurement for NSPA" or "NSPA Procurement for NATO." For sales that involve spare and repair parts, no special notes or formatting is required. Such sales will normally not require a Country Team Assessment (CTA) or Combatant Command (CCMD) endorsement unless requested by DSCA per Section C5.1.4. Case development will occur as a sale to a NATO agency without reference to the Participating Nations, subsequent retransfers will take place pursuant to the terms of the SP charter agreement. More complex sales in support of NATO SPs will generally take place through Lead Nation Procurement or Agent Sales.

   C5.6.1.7.1. "Lead Nation Procurement" is entered in the nickname field beneath the case identifier. Case line descriptions will indicate which Participating Nation will be receiving the items. Each case shall include a version of the note in Figure C5.F16. developed by the IA and cleared separately by the DSCA (IOPS) CPD, DSCA (SPP/EPA), and DSCA (FO/OGC) within the Case Tracking System (CTS).

   C5.6.2.5.1. Security Cooperation Customer Code. NSPA purchases as an Agent using SCCC W7 exclusively for such sales. No special notes or formatting is required. OCCAR, which may purchase on behalf of other countries only as an Agent, uses SCCC 7B.

   C5.6.2.5.2. Letter of Offer and Acceptance Special Notes and Formatting. The term "Agent Sale Procurement" is entered in the case nickname field. In addition to the requirements in the LOA Standardization Guide, the Case Description should include language derived from Figure C5.F20.

   Figure C5.F20. Draft Agent Sales Case Description

   C5.6.2.5.2.2. Case lines will be organized in groups, first of defense articles, then defense services, and finally training. In each group, lines should be further grouped by Principal, with each Principal being identified in the line description.

   C5.6.2.5.2.3. The IA will include a note in the case, Appendix 6 - FMS Agent Sale, to outline terms and conditions relating to the Agent. It need not be restated on Modifications or Amendments if the current implemented case has the latest version.

3. Update C5.T2a. as follows to clarify division roles for Space Systems:

   Air Force

   Implementing Agency Code	Military Department Organization with Security Cooperation Responsibilities	Applicability	Address for Letter of Request Submission
   D	Secretary of the Air Force International Affairs (SAF/IA)	Action purposes for LORs with Communications, Electronics, Aircraft, and Missile, and Space Systems for Secretary of the Air Force International Affairs, Regional Affairs (SAF/IAR) main office.	MAIL: SAF/IAR 1080 Air Force Pentagon Washington DC 20330-1080
   		Action purposes for LORs with Communications, Electronics, Aircraft, and Missile, and Space Systems for Americas/Africa Division.	MAIL: SAF/IARA (Americas/Africa Division) 1080 Air Force Pentagon Washington DC 20330-1080
   			E-MAIL: SAF/IARA Workflow SAF.IARA.Workflow@us.af.mil
   		Action purposes for LORs with Communications, Electronics, Aircraft, and Missile, and Space Systems for Central Division.	MAIL: SAF/IARC (Central Division) 1080 Air Force Pentagon Washington DC 20330-1080
   			E-MAIL: SAF/IARC Workflow SAF.IARC.Workflow@us.af.mil
   		Action purposes for LORs with Communications, Electronics, Aircraft, and Missile, and Space Systems for Europe/North Atlantic Treaty Organization (NATO) Division.	MAIL: SAF/IARE (Europe/NATO Division) 1080 Air Force Pentagon Washington DC 20330-1080
   			E-MAIL: SAF/IARE Workflow SAF.IARE.Workflow@us.af.mil
   		Action purposes for LORs with Communications, Electronics, Aircraft, and Missile, and Space Systems for Pacific Division.	MAIL: SAF/IARP (Pacific Division) 1080 Air Force Pentagon Washington DC 20330-1080
   			E-MAIL: SAF/IARP Workflow SAF.IARP.Workflow@us.af.mil
   		Action purposes for LORs with any Space Capabilities (e.g., Satellite Communications, Space Electromagnetic Warfare, Domain Awareness), Technologies, Systems, or Spacecraft.	MAIL: SAF/IARS (Space Division) 1080 Air Force Pentagon Washington DC 20330-1080
   			E-MAIL: SAF/IARS Workflow SAF.IARS.Workflow@us.af.mil
   	Air Force Security Assistance and Cooperation (AFSAC)	Action purposes with LORs (non-training) for AFSAC	MAIL: Air Force Security Assistance and Cooperation (AFSAC) Directorate 1822 Van Patton Drive Wright-Patterson Air Force Base, OH. 45433
   			ELECTRONIC: Use the LOR-A Tool at https://afsac.wpafb.af.mil/, or Contact individual AFSAC Command Country Managers for email addresses
   	Air Force Security Assistance Training Squadron/LOA Office (AFSAT/LOA)	Action purposes for LORs with formal training for AFSAT/LOA	MAIL: Air Force Security Assistance Training Squadron (AFSAT) Attn: AFSAT/LOA 10583 H Street West JBSA Randolph AFB, TX 78150-4418
   			E-MAIL: afsat.lor.workflow@us.af.mil

4. Update verbiage in C5.F16. to conform with current business practices:

   Current:

   Standard Note in a Lead Nation Case   The Purchaser, as distinct from the participating transferee nations, agrees, with respect to any subsequent retransfer of defense articles to it by the North Atlantic Treaty Organization (NATO) Organization or the countries named on this Letter of Offer and Acceptance (LOA), that it shall not, unless the prior written consent of the Government of the United States of America has been first obtained: Permit any use of defense articles originally provided on this LOA including related data and information, by anyone not an officer, employee, or agent of the Purchaser; and Transfer or permit any officer, employee, or agent of the Purchaser to transfer such commodity, including related data and information, by gift, sale, or otherwise to anyone other than the NATO Organization or the countries named on this LOA. The Purchaser agrees to seek advance consent from the U.S Department of State (State) prior to any subsequent retransfer to a NATO member country or country identified in Section 3(d)(5) of the Arms Export Control Act (AECA) and named on this LOA if the original acquisition value of the articles being retransferred is $25M or more of Major Defense Equipment (MDE) or $100M or more in total value, or prior to any subsequent retransfer to a NATO Organization or non-NATO member country named on this LOA if the original acquisition value of the articles being retransferred is $14M of MDE or $50M in total value. For retransfers below these thresholds to any country named on this LOA, advance consent is not required. Transferee NATO Organization or countries named on this LOA will report their retransfers to the Lead Nation on a quarterly basis. The Purchaser agrees to provide the information on its retransfers as well as those of the Transferee Nations by email to PM_RSAT-TPT@state.gov in a quarterly report to State by the 15th of each month following the end of each quarter in which a retransfer has occurred. The Purchaser agrees to maintain the security of such commodity while in its possession, including related data and information, and will provide substantially the same degree of security protection afforded by the Government of the United States of America. The Purchaser agrees that, unless prior written consent of the Government of the United States of America has first been obtained, it will use such commodity, including related data and information, solely for internal security, for legitimate self-defense, for preventing or hindering the proliferation of weapons of mass destruction and of the means of delivering such weapons, to permit the Purchaser to participate in regional or collective arrangements or measures consistent with the Charter of the United Nations, or otherwise to permit the Purchaser to participate in collective measures requested by the United Nations for the purpose of maintaining or restoring international peace and security.

   Current:

   Standard Note in a Lead Nation Case   [XXX] will act as Lead Nation on this Letter of Offer and Acceptance (LOA). [YYY] will act as Participating Nation(s) on this LOA. The Lead Nation will ensure that no defense article or service under this LOA is transferred to a Participating Nation until the Participating Nation has signed the separate "Basic Retransfer Assurances and Letter of Offer and Acceptance (LOA) Standard Terms and Conditions for Participating Nations" and such signed terms and conditions are returned to the U.S. Government (USG). Upon delivery of the defense article or service from the Lead Nation to the Participating Nation(s), the Lead Nation will be required to submit in writing to the U.S. State Department (State) at PM_RSAT-TPT@state.gov, a note to reference the initial transfer to the Participating Nation(s). Subsequent retransfers among the Participating Nation(s) and/or Lead Nation will be subject to the retransfer requirements outlined in Section 2.4 of the separate LOA Standards Terms and Conditions, as well as any written retransfer authorizations received from the USG. The Purchaser, acting as the Lead Nation and distinct from the Participating Nations, as distinct from the participating transferee nations, agrees, with respect to any subsequent retransfer of defense articles to it by the North Atlantic Treaty Organization (NATO) Organization or the countries named on this Letter of Offer and Acceptance (LOA), that it shall not, unless the prior written consent of the Government of the United States of America has been first obtained: Permit any use of defense articles originally provided on this LOA including related data and information, by anyone not an officer, employee, or agent of the Purchaser; and Transfer or permit any officer, employee, or agent of the Purchaser to transfer such commodity, including related data and information, by gift, sale, or otherwise to anyone other than the NATO Organization or the countries named on this LOA. The Purchaser agrees to seek advance consent from U.S. Department of State (State) prior to any subsequent retransfer to a NATO member country or country identified in Section 3(d)(5) of the Arms Export Control Act (AECA) and named on this LOA if the original acquisition value of the articles being retransferred is $25M or more of Major Defense Equipment (MDE) or $100M or more in total value, or prior to any subsequent retransfer to a NATO Organization or non-NATO member country named on this LOA if the original acquisition value of the articles being retransferred is $14M of MDE or $50M in total value. For retransfers below these thresholds to any country named on this LOA, advance consent is not required. Transferee NATO Organization or countries named on this LOA will report their retransfers to the Lead Nation on a quarterly basis. The Purchaser agrees to provide the information on its retransfers as well as those of the Transferee Participating Nation(s) by email to PM_RSAT-TPT@state.gov in a quarterly report to State by the 15th of each month following the end of each quarter in which a retransfer has occurred. The Purchaser agrees to maintain the security of such commodity while in its possession, including related data and information, and will provide substantially the same degree of security protection afforded by the Government of the United States of America. The Purchaser agrees that, unless prior written consent of the Government of the United States of America has first been obtained, it will use such commodity, including related data and information, solely for internal security, for legitimate self-defense, for preventing or hindering the proliferation of weapons of mass destruction and of the means of delivering such weapons, to permit the Purchaser to participate in regional or collective arrangements or measures consistent with the Charter of the United Nations, or otherwise to permit the Purchaser to participate in collective measures requested by the United Nations for the purpose of maintaining or restoring international peace and security.

5. Chapter 6 Updates

   Current:

   C6.4.10.6. Shipment Documentation. Any movement document or receipt, signed by a carrier representative, showing that the United State shipped or released materiel to a carrier for shipment to the country's designated representative, constitutes evidence of shipment. Such documents generally show the quantity; National Stock Number (NSN); mode of shipment; date; Transportation Control Number (TCN); notice of availability number; bill of lading, parcel post insured, or registered number; addressee; vessel, voyage, or flight number (to the extent possible); and names of the shipper and carrier. This information is essential for adjudication of SDRs. If proof of delivery to a carrier is requested and the freight forwarder has not received the consignee copy of the bill of lading, then a duplicate of the appropriate documents establishing evidence of shipment is provided to the purchaser's representative.

   C6.7.2.7. Pen and Ink Changes to Amendments. There may be times when minor changes to an Amendment are needed after it has been countersigned and offered to the purchaser. Minor changes can be made as long as: the Amendment is in "offered" status, the purchaser has not yet signed the Amendment, the OED has not yet expired, and all changes are consistent with FMS policies and procedures. The IA authorizes the purchaser to make any Pen and Ink changes by issuing a message or memorandum. A copy of the message or memorandum should be provided to Defense Finance and Accounting Services - Indianapolis (DFAS-IN). All changes, including Pen and Ink, must be updated in DSAMS. Pen and Ink changes should be kept to a minimum, with processing as follows:

   C6.7.2.7.1. Offer Expiration Date Changes to Amendments. The greater the period of time between offer and acceptance, the greater the likelihood of decreased accuracy of availability and pricing data. Requests by the FMS purchaser to extend the OED may be honored after a review by the IA. The IA must ensure all pricing data is still valid, and the services and materiel continue to be available for the extended period. The IA will advise the FMS purchaser of any consequences associated with the extension. The USG reserves the right to cancel the case.

   Revised:

   C6.4.10.6. Shipment Documentation. Any movement document or receipt, signed by a carrier representative, showing that the United States shipped or released materiel to a carrier for shipment to the country's designated representative, constitutes evidence of shipment. Such documents generally show the quantity; National Stock Number (NSN); mode of shipment transport; date; Transportation Control Number (TCN); notice of availability number; bill of lading, parcel post insured, or registered number; addressee; vessel, voyage, or flight number (to the extent possible); and names of the shipper and carrier. This information is essential for adjudication of SDRs. If proof of delivery to a carrier is requested and the freight forwarder has not received the consignee copy of the bill of lading, then a duplicate of the appropriate documents establishing evidence of shipment is provided to the purchaser's representative.

   C6.7.2.7. Pen and Ink Changes to Amendments. There may be times when minor changes need to be made to an Amendment, with both purchaser and IA agreement, after it has been countersigned and offered to the purchaser. OED (see Section C6.7.2.7.1.), minor (see Section C6.7.2.7.2.) or major (see Section C6.7.2.7.3.) changes can be made if the Amendment is in "OFFERED" status, the purchaser has not yet signed the Amendment, the OED has not yet expired, and all changes are consistent with FMS policies and procedures. The purchaser must be authorized by the IA via email or memorandum to make any Pen and Ink changes. Provide a copy of the email or memorandum to Defense Finance and Accounting Services - Indianapolis (DFAS-IN) for awareness. All changes, including Pen and Ink, must be updated in DSAMS, with the updated copy of the Amendment provided to purchaser. Pen and Ink changes should be kept to a minimum, with processing as follows:

   C6.7.2.7.1. Offer Expiration Date Changes to Amendments. Normally, the greater the period of time between Offer and Acceptance, the greater the likelihood of decreased accuracy of the LOA data. Requests by the FMS purchaser to extend the OED may be honored after a review by the IA. The OED may be extended, without a requirement for case restatement, only if requested no later than 6 months after the current valid OED, the document has not been cancelled (see Section C6.7.2.5.), and completion of IA review, ensuring data are still valid for the extended period. All concerned should be advised of any consequences associated with the extension. Minor (see Section C6.7.2.7.2.) and MOS changes that result from the extension are updated as well. Payment schedules can only be updated to correspond with the MOS changes (see Section C6.7.2.7.3.). The USG reserves the right to cancel the case.

6. Update Chapter 13 per below and SAMM Sections C6.1.1. and C9.13.1.2., C9.T4., and throughout Appendix 4 to replace the term "1200 System" with "Case Performance Reporting System":

   Current:

   C13.3.4.6. 1200 System. DSCA (Office of Business Operations, Financial Policy & Regional Execution Directorate, Financial Reporting and Compliance Division (OBO/FPRE/FRC)) utilizes the 1200 System to provide Congress, State, Department of Commerce, and DSCA with a DoD-wide view of FMS as well as other DoD and State sales programs information. DSCA (OBO/FPRE/FRC) uses the 1200 System to gather monthly and quarterly materiel delivery data to produce unclassified and classified congressional reports. The system is sourced with monthly transactions received from IAs through DSAMS. Quarterly materiel delivery transactions are received from DIFS.

   Revised:

   C13.3.4.6. Case Performance Reporting System. DSCA (Office of Business Operations, Financial Policy & Regional Execution Directorate, Financial Reporting and Compliance Division (OBO/FPRE/FRC)) utilizes the Case Performance Reporting System (CPRS) to provide Congress, State, Department of Commerce, and DSCA with a DoD-wide view of FMS as well as other DoD and State sales programs information. DSCA (OBO/FPRE/FRC) uses the CPRS to gather monthly and quarterly materiel delivery data to produce unclassified and classified congressional reports. The system is sourced with monthly transactions received from IAs through DSAMS. Quarterly materiel delivery transactions are received from DIFS.

7. Update the SAMM by archiving the following notes and removing from them from Appendix 6:
   1. Associated Letters of Offer and Acceptance
   2. Building Partner Capacity (BPC) Materiel Transfer for Afghanistan
   3. Full Operational Capability
   4. Packing, Crating & Handling (PC&H) - Title 10 Building Partner Capacity (BPC) Note
   5. Section 2282 Deliveries to the U.S. Government
   6. Section 2282 Delivery to the Partner Nation
   7. Section 333 Availability of Funds Across Fiscal Years

8. Update Glossary Entry "Major Non-North Atlantic Treaty Organization (NATO) Allies (MNNA)" per below:

   Major Non-North Atlantic Treaty Organization (NATO) Allies (MNNA)	Currently 19 countries are designated as MNNAs under 22 U.S.C. 2321k and 10 U.S.C. 2350a: Argentina, Australia, Bahrain, Brazil, Colombia, Egypt, Israel, Japan, Jordan, Kenya, Kuwait, Morocco, New Zealand, Pakistan, Philippines, Qatar, South Korea, Thailand, and Tunisia. In addition, P.L. 107-228 provides Taiwan shall be treated as an MNNA, without formal designation as such.	https://www.state.gov/major-non-nato-ally-status/ 22 U.S.C. 2321k; 22 U.S.C. 2403; 10 U.S.C. 2350a