Attachment: Security Assistance Management Manual E-Change 730

1. Update Section C3.7.1.1.4. to clarify the Missile Technology Control Regime Screening Process:

   Current:

   C3.7.1.1.4. DSCA (IOPS/WPN) reviews and forwards the memorandum to the State, Deputy Director, Office of Chemical, Biological, and Missile Threat Reduction (MTR), Bureau of International Security and Nonproliferation (ISN), for review and approval. DSCA will relay State's reply to the IA and the DSCA (Office of International Operations, Global Execution Directorate, Case Writing and Development Division (IOPS/GEX/CWD)).

   Revised:

   C3.7.1.1.4. DSCA (IOPS/WPN) reviews and forwards the memorandum to the State, Deputy Director, Office of Missile, Biological, and Chemical Nonproliferation (MBC), Bureau of International Security and Nonproliferation (ISN), for review and approval. DSCA will relay State's reply to the IA and the DSCA (Office of International Operations, Global Execution Directorate, Case Writing and Development Division (IOPS/GEX/CWD)) for inclusion with supporting documentation submitted.

2. Update Chapter 3 by adding Section C3.7.3.3.2.3. per below to clarify information provided in DSCA Policy Memo 24-07:

   New:

   C3.7.3.3.2.3. Non-North Atlantic Treaty Organization Member Nations, Except Australia and New Zealand, with Access to Communications Security, Joining the North Atlantic Treaty Organization. When a CISMOA Nation joins the North Atlantic Treaty Organization (NATO), for all future Basic LOAs that add COMSEC equipment and new amendments and modifications to LOAs implemented prior to NATO membership, DSCA (Office of International Operations, Global Execution Directorate, Case Writing and Development Division (IOPS/GEX/CWD)) will add the NATO Member, Australia, and New Zealand COMSEC EEUM note. For additional information for CISMOA Nations becoming NATO Members please contact DSCA (Office of International Operations, Weapons Directorate (IOPS/WPN)) at dsca.ncr.iops-wpns.list.c4i@mail.mil.

3. Update Section C4.3.2. per below:

   Current:

   C4.3.2. Total Package Approach. The Total Package Approach (TPA) ensures that FMS purchasers can obtain support articles and services, to include construction of necessary support facilities, required to introduce and sustain equipment and to operate in a responsible and effective manner consistent with U.S. intent in approving the transfer. The complete sustainability package must be offered to the purchaser when preparing Price and Availability (P&A) data or LOAs. In addition to the system itself, other items to consider in a total package include: training, technical assistance, initial support, software, ammunition, follow-on support, etc.

   Revised:

   C4.3.2. Total Package Approach. The Total Package Approach (TPA) ensures that FMS purchasers can obtain support articles and services, to include construction of necessary support facilities, required to introduce and sustain equipment and to operate in a responsible and effective manner consistent with U.S. intent in approving the transfer. The complete sustainability package must be offered to the purchaser when preparing Price and Availability (P&A) data or LOAs. In some instances, the MILDEPs, in coordination with the Office of the Under Secretary of Defense for Acquisition and Sustainment (OUSD (A&S)), may identify possible co-sustainment options to support regional sustainment for platform, weapon systems, sub-systems, and components. When the MILDEP Implementing Agency (IA) and OUSD (A&S) determine these options to be viable, the MILDEP IA notifies DSCA (Office of International Operations, Regional Execution Directorate (IOPS/REX)) of these possible solutions so DSCA (IOPS/REX) can begin discussions with the partner. In addition to the system itself, other items to consider in a total package include training, technical assistance, initial support, software, ammunition, follow-on support, intelligence mission data, etc.

4. Update Chapter 5 by adding Section C5.4.13.2.1. per below to formally document existing process to adjudicate returns:

   new:

   C5.4.13.2.1. The IA may request adjudication of any Write or Review status return it believes was returned in error through IA Policy POCs. If an IA designated POC deems the request valid, they will send an adjudication request to DSCA (IOPS/GEX/CWD) via dsca.wright-patt.iops-gex.mbx.cwd-fo@mail.mil. DSCA (IOPS/GEX/CWD) will provide decision to the IA Policy POC, and if approved, update return code(s) as appropriate in DSAMS.

5. Update Figure C5.F22. IA Remarks entry:

   Current:

   IA Remarks

   When filling out this section ensure you provide an overall brief description of the item and what it will serve and describe: What system is the item associated with? What will it be used for? What is the delivery mechanism (i.e. CD, Technical Manuals, Email, etc.)? Is it country specific?

   Revised:

   IA Remarks

   When filling out this section ensure you provide an overall brief description of the item and what it will serve and describe: What system is the item associated with? What will it be used for? What is the delivery mechanism (i.e. CD, Technical Manuals, Email, etc.)? Is it country specific? Is there a specific paragraph within a USML Category this item or service falls under? If so, what is that USML Category and paragraph?

6. Update Section C5.4.15. per below:

   Current:

   C5.4.15. Pen and Ink Changes. There may be times when 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:

   Revised:

   C5.4.15. Pen and Ink Changes. There may be times when 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 changes can be made per Section C5.4.15.1. 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 (see Section C5.4.15.2.). With prior DSCA (OBO/FPRE/FP) and DSCA (SPP/EPA) concurrence, major 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 (see Section C5.4.15.3.). 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:

7. Update Section C5.5.6.1. to clarify communications security release requirements per below:

   Current:

   C5.5.6.1. Implementing Agencies Prepare and Submit Initial 36(b) Congressional Notification Package to the Defense Security Cooperation Agency. The IA prepares and submits the data required for a CN to DSCA (IOPS/GEX). See Section C5.5.5. for required information and templates. The IA should concurrently process required TSFD approvals while preparing the initial Section 36(b) CN package.

   Revised:

   C5.5.6.1. Implementing Agencies Prepare and Submit Initial 36(b) Congressional Notification Package to the Defense Security Cooperation Agency. The IA prepares and submits the data required for a CN to DSCA (IOPS/GEX). See Section C5.5.5. for required information and templates. The IA should concurrently process required TSFD approvals while preparing the initial Section 36(b) CN package. See Section C3.7.3.4.2.2., CNs for containing COMSEC. TIP concerns and deficiencies must be resolved before the CN can be processed by DSCA. See Section C4.3.2. for more information on TIP policy.

8. Update Figure C5.F3. sample case line data per below:

   Current:

   005 B4 47

   R9Z 079Z000THSERV (N)(N)(R) OTHER SERVICES (XXI)

   XX

   -

   $40,000

   S(-) TA3

   -

   -

   Revised:

   005 B4 47

   R9Z 079Z000THSERV (N)(N)(R) OTHER SERVICES (-)

   XX

   -

   $40,000

   S(-) TA3

   -

   -

9. Update Figure C5.F5. International Traffic in Arms Regulations (ITAR) U.S. Munitions List (USML) Category III per below:

   Current:

   USML	Description
   III	Ammunition/Ordnance

   Revised:

   USML	Description
   III	Ammunition and Ordnance

10. Update C5.6.1.3.1. per below:

    Current:

    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.

    Revised:

    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" and "NSPA Procurement for NATO"). For sales that involve spare and repair parts, no special notes or formatting is required. Such Sales that involve spare and repair parts 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.

11. Update Section C6.7.2.7. per below:

    Current:

    C6.7.2.7. Pen and Ink Changes to Amendments. There may be times when 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:

    Revised:

    C6.7.2.7. Pen and Ink Changes to Amendments. There may be times when 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 changes can be made per Section C6.7.2.7.1. Minor 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 (see Section C6.7.2.7.2.). With prior DSCA (OBO/FPRE/FP) and DSCA (SPP) concurrence, 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:

12. Update Section C6.7.5. per below:

    Current:

    C6.7.5. Request for Exceptions to Policy. IA policy offices must send all Exception to Policy (ETP) for case modification and amendment requests through the following email address: dsca.ncr.dsca-spp.mbx.etp@mail.mil mailbox. Requests for financial policy exception related to prior year adjustment should be sent to dsca.ncr.dbo.mbx.prior-year-requests@mail.mil, and case closure sent to dsca.ncr.dbo.mbx.case-closure-requests@mail.mil. DSCA (Office of Strategy, Plans, and Policy, Execution Policy and Analysis Directorate (SPP/EPA)) will coordinate ETP requests with the appropriate DSCA stakeholders and reply to ETP requests submitted via email within ten business days of receiving a complete ETP request. DSCA (SPP/EPA) will provide ETP determinations to the IA by email and enter a DSAMS case remark. General Officer/Flag Officer/ Senior Executive Service (SES)-level requests or ETP appeals submitted via formal correspondence are staffed with the DSCA Director, who will respond accordingly to the requester. ETP appeals must be submitted fifteen business days after receipt of denial notification. DSCA will consider ETPs on a case-by-case basis, in accordance with legal requirements, when SAMM guidance is not established.

    Revised:

    C6.7.5. Request for Exceptions to Policy. IA policy offices must send all Exception to Policy (ETP) for case modification and amendment requests through the ETP tracker on SharePoint. Requests for financial policy exception related to prior year adjustment should be sent to dsca.ncr.dbo.mbx.prior-year-requests@mail.mil, and case closure sent to dsca.ncr.dbo.mbx.case-closure-requests@mail.mil. DSCA (Office of Strategy, Plans, and Policy, Execution Policy and Analysis Directorate (SPP/EPA)) will coordinate ETP requests with the appropriate DSCA stakeholders and reply to ETP requests submitted via the ETP tracker within 10 business days for routine requests and 15 business days for special requests, as prescribed in the ETP tracker, of receiving a complete ETP request. DSCA (SPP/EPA) will provide ETP determinations to the IA by automated email from the ETP tracker and enter a DSAMS case remark. Approved ETPs will expire six months from date of approval unless otherwise requested and approved. General Officer/Flag Officer/Senior Executive Service (SES)-level requests or ETP appeals submitted via formal correspondence are staffed with the DSCA Director, who will respond accordingly to the requester. ETP appeals must be submitted fifteen business days after receipt of denial notification. DSCA will consider ETPs on a case-by-case basis, in accordance with legal requirements, when SAMM guidance is not established.

13. Update Table C6.T1. to add the below entries:

    New:

    Item Unique Identification and Valuation		252.211-7003
    Government Furnished Property	52.245-1

14. Update Table C6.T7. entry 1 per below:

    Revised:

    Table C6.T7. Modification for FMS Cases

    #	Allowable Changes
    1	Increasing or decreasing funding on a defined order line based on: actual or projected billing due to over commitments, actual or projected billing due to under commitments, or supply services complete reconciliation in preparation for case closure.

15. Update to C7.3 per below:

    Current:

    Title to Foreign Military Sales (FMS) materiel is transferred to the purchaser upon release from a Department of Defense (DoD) supply activity (point of origin) unless otherwise specified in the Letter of Offer and Acceptance (LOA). A supply activity can be either a DoD storage depot or a commercial vendor that furnishes materiel under a DoD-administered contract. However, U.S. Government (USG) security responsibility does not cease until the recipient's Designated Government Representative assumes control of the consignment.

    Revised:

    Title to Foreign Military Sales (FMS) materiel is transferred to the purchaser upon release from a Department of Defense (DoD) supply activity (point of origin) unless otherwise specified in the Letter of Offer and Acceptance (LOA). A supply activity can be either a DoD storage depot or a commercial vendor that furnishes materiel under a DoD-administered contract. However, U.S. Government (USG) security responsibility does not cease until the recipient's Designated Government Representative assumes control of the consignment. Before transfer, a US Government representative will perform a visual kind, count, and condition of the packaging, marking, and pallets.

16. Update Section C8.4.1. per below:

    Current:

    C8.4.1. Definition. Enhanced End Use Monitoring (EEUM), based on the principle of trust with verification, is required for defense articles or munitions controlled items designated for EEUM by the military department's (MILDEP's) export policy, the inter-agency release process, or by the DoD policy as a result of consultation with Congress and/or the Department of State (State). EEUM requires physical security assessments of the storage facilities and serial number inventories of designated defense articles to verify compliance with the transfer conditions of the Letters of Offer and Acceptance (LOAs) and other government-to-government transfer agreements. All EEUM-designated defense articles are required to be sold on defined order lines using an EEUM-coded Military Articles and Services List (MASL) and are accompanied by specialized physical security and accountability notes. The defense articles listed in Table C8.T4. below have been designated for EEUM for all Foreign Military Sales (FMS)-eligible countries. Other defense articles may require EEUM and/or additional U.S. control measures (e.g. U.S. custody and/or electronic monitoring) on a case-by-case basis as determined in the transfer approval process.

    Revised:

    C8.4.1. Definition. Enhanced End Use Monitoring (EEUM), based on the principle of trust with verification, is required for defense articles or munitions controlled items designated for EEUM by the Military Department's (MILDEP's) export policy, the inter-agency release process, or by the DoD policy as a result of consultation with Congress and/or the Department of State (State). EEUM requires physical security assessments of the storage facilities and serial number inventories of designated defense articles to verify compliance with the transfer conditions of the Letters of Offer and Acceptance (LOAs) and other government-to-government transfer agreements. Defense articles subject to EEUM must be transferred through the FMS process and sold on defined order lines using an EEUM-coded Military Articles and Services List (MASL). Items designated as EEUM must be transferred through the FMS process (see Section C4.3.5.2.). They must also include physical security and accountability notes. The defense articles listed in Table C8.T4. below have been designated for EEUM for all Foreign Military Sales (FMS)-eligible countries. Other defense articles may require EEUM and/or additional U.S. control measures (e.g. U.S. custody and/or electronic monitoring) on a case-by-case basis as determined in the transfer approval process.

17. Update Figure C8.F1. to add a reference to the FMS-Only Policy list (C4.3.5.2.)

    Current	Revised
    State staffing to ensure concurrence and all necessary actions are taken for EEUM designation incorporation with Foreign Military Sales (FMS)-Only Policy List.	State staffing to ensure concurrence and all necessary actions are taken for EEUM designation incorporation with Foreign Military Sales (FMS)-Only Policy List (See Section C4.3.5.2.).

18. Update Table C8.T2. "DSCA (Office of International Operations, Global Execution Directorate, End Use Monitoring Division (IOPS/GEX/EUM))" and "MILDEPs and Implementing Agencies (IAs)" per below:

    Revised:

    DSCA (Office of International Operations, Global Execution Directorate, End Use Monitoring Division (IOPS/GEX/EUM))

    ... Notify USG country teams when articles in their Area of Responsibility (AOR) are designated as Enhanced via the Security Cooperation Information Portal (SCIP)-EUM database interface. Once received from the IA/MILDEP, ensure serial numbers of EEUM items are promptly added to the SCIP-EUM database and notify the SCO upon completion. Review LOAs for EEUM coded Military Articles and Services Lists (MASLs). ...

    MILDEPs and Implementing Agencies (IAs)

    ... Submit to DSCA (IOPS) recommendations of defense articles that no longer require EEUM management. Provide a monthly delivery record report with serial numbers of EEUM items to DSCA (IOPS/GEX/EUM) (dsca.eumhelpdesk@mail.mil) in advanced of shipment to the partner of EEUM-designated items for input into the SCIP-EUM database. Provide delivery record report with serial numbers of EEUM items that are being transferred to hostile environments (Section C8.5.5.) in advance of shipment to a partner to the dsca.eumhelpdesk@mail.mil. Review and submit MASLs for items identified for EEUM. Defense Security Assistance Management System (DSAMS) will send alerts to the IA when a Letter of Request (LOR) contains Enhanced Case-Unique articles. The IA will verify EUM codes on LOAs in review for accuracy when an item is designated as Enhanced Case-Unique. The IA will notify/coordinate with its respective program office(s) that a partner included an Enhanced Case-Unique defense article in a LOR. ...

19. Update Sections C9.4.2.1., C9.4.2.2., and C9.4.2.3. per below:

    Current:

    C9.4.2.1. Foreign Military Sales Activity Matrix. The Foreign Military Sales Activity Matrix (FAM) table describes FMS case-related activities/functions and their proper source of funding. The activities/functions listed in Table C9.T2A. in the "FMS Admin" column represents indirect costs funded by the FMS Administrative Surcharge and should not be included and/or priced as direct costs on the Letter of Offer and Acceptance (LOA). The activities/functions listed in Table C9.T2A. under the "FMS Case," "Non-Standard," and "Frequency" columns represent direct costs funded by the Purchaser and should be included as line items on the case. Requests to deviate from the funding sources shown on this table or requests for clarification regarding this table must be coordinated with the DSCA (Office of Business Operations, Financial Policy & Regional Execution Directorate, Financial Policy Division (OBO/FPRE/FP)).

    C9.4.2.2. Title 10 Building Partner Capacity Activity Matrix. The Building Partner Capacity (BPC) Activity Matrix (BAM) table describes Title 10 BPC case-related activities/functions and their proper source of funding. The activities/functions listed in Table C9.T2B. under the "Title 10 BPC Program Support Costs" and "Performing Activity Title 10 Costs" columns represent indirect costs funded by the DoD Title 10 appropriated funds and should not be included and/or priced as direct costs on the LOA. The activities/functions listed in Table C9.T2B. under the " Title 10 BPC Case Costs" column represents direct costs funded by the DoD Title 10 appropriated funds made available to support Benefitting Countries and should be included as line items on the case. Requests for funding clarification regarding this table and possible funding alternatives or exemptions must be coordinated with the DSCA (OBO/FPRE/FP).

    C9.4.2.3. Foreign Military Sales Program Management Services. The Implementing Agency (IA) may determine that USG program management services are necessary for successful program implementation and execution in accordance with the FAM in Table C9.T2A.

    Revised:

    C9.4.2.1. Foreign Military Sales Case-Related Manpower Functions and Funding Source Matrix. The Foreign Military Sales Case-Related Manpower Functions and Funding Source Matrix (FAM) table describes FMS case-related activities/functions and their proper source of funding. The activities/functions listed in Table C9.T2A. in the "FMS Admin" column represents indirect costs funded by the FMS Administrative Surcharge and should not be included and/or priced as direct costs on the Letter of Offer and Acceptance (LOA). The activities/functions listed in Table C9.T2A. under the "FMS Case," "Non-Standard," and "Frequency" columns represent direct costs funded by the Purchaser and should be included as line items on the case. Requests to deviate from the funding sources shown on this table or requests for clarification regarding this table must be coordinated with the DSCA (Office of Business Operations, Financial Policy & Regional Execution Directorate, Financial Policy Division (OBO/FPRE/FP)).

    C9.4.2.2. Title 10 Building Partner Capacity Case-Related Manpower Functions and Funding Source Matrix. The Building Partner Capacity (BPC) Case-Related Manpower Functions and Funding Source Matrix (BAM) table describes Title 10 BPC case-related activities/functions and their proper source of funding. The activities/functions listed in Table C9.T2B. under the "Title 10 BPC Program Support Costs" and "Performing Activity Title 10 Costs" columns represent indirect costs funded by the DoD Title 10 appropriated funds and should not be included and/or priced as direct costs on the LOA. The activities/functions listed in Table C9.T2B. under the "Title 10 BPC Case Costs" column represents direct costs funded by the DoD Title 10 appropriated funds made available to support Benefitting Countries and should be included as line items on the case. Requests for funding clarification regarding this table and possible funding alternatives or exemptions must be coordinated with the DSCA (OBO/FPRE/FP).

    C9.4.2.3. Foreign Military Sales Program Management Services. The Implementing Agency (IA) may determine that USG program management services are necessary for successful program implementation and execution in accordance with the Foreign Military Sales Case-Related Manpower Functions and Funding Source Matrix in Table C9.T2A.

20. Update Sections C9.6.1.2., C9.6.1.2.1. , C9.6.1.2.2., and C9.6.1.2.5. per below:

    Current:

    C9.6.1.2. Waiver of Administrative Surcharges for North Atlantic Treaty Organization Support Organization's and its executive agencies' Foreign Military Sales Programs. AECA, section 21(e)(3) (22 U.S.C. 2761(e)(3)), allows the waiver of FMS Administrative Surcharges for North Atlantic Treaty Organization (NATO) Support Organization (NSPO) programs under very specific circumstances. Waiver of FMS Administrative Surcharges on these cases is not retroactive; only LOAs implemented after October 1, 1988, are eligible for consideration. The waiver value includes the calculated FMS Administrative Surcharge amount and any SCML value included on the LOA. Only NSPO LOAs in support of support partnership agreements or NATO Supreme Headquarters Allied Powers, Europe (SHAPE) projects (i.e., common-funded projects supported by allocated credits from NATO bodies or by host nations with NATO infrastructure funds) qualify for FMS Administrative Surcharge waivers. FMS Administrative Surcharges waived under this program must be reimbursed to the FMS Administrative Surcharge Account from Major Force Program (MFP) 10 funds controlled by the U.S. Mission to NATO. The following procedures apply:

    C9.6.1.2.1. NSPO includes a statement in its Letter of Request (LOR) indicating the LOA qualifies for an FMS Administrative Surcharge waiver under AECA, section 21(e)(3) (22 U.S.C. 2761(e)(3)). NSPO identifies the specific NATO/SHAPE project supported by the request and includes the following statement:

    "This is a joint coordinated request with the U.S. Mission to NATO. The U.S. Mission to NATO certifies intent to reserve and obligate MFP 10 funds for FMS Administrative Surcharges waived over the life of the LOA. It further certifies that MFP 10 funds have been obligated in the amount of one-half of the FMS Administrative Surcharges computed based on the dollar value of items or services estimated to be reported as delivered in the first year for all LOAs."

    C9.6.1.2.2. NSPO provides an information copy of the LOR to the U.S. Mission to NATO when an FMS Administrative Surcharge waiver is requested. For budgeting purposes, NSPO provides a yearly estimate of the amount of FMS Administrative Surcharge waivers to the U.S. Mission to NATO.

    C9.6.1.2.5. The U.S. Mission to NATO budgets for waived FMS Administrative Surcharges, advises DSCA of agreements to reimburse DoD for waived FMS Administrative Surcharges before the LOA is issued to NSPO, and develops an understanding with NSPO concerning programs for which waivers are supported. The U.S. Mission reserves and obligates MFP 10 funds for waived FMS Administrative Surcharges under this legislation for the life of the FMS case. For cases where the calculated FMS Administrative Surcharge value is greater than $30,000, 35 percent of the FMS Administrative Surcharge is recouped as part of the initial deposit. The remaining 65 percent is recouped based on the delivery schedule of the line.

    Revised:

    C9.6.1.2. Waiver of Administrative Surcharges for North Atlantic Treaty Organization Support Organization's and its executive agencies' Foreign Military Sales Programs. AECA, section 21(e)(3) (22 U.S.C. 2761(e)(3)), allows the waiver of FMS Administrative Surcharges for North Atlantic Treaty Organization (NATO) NATO Support and Procurement Agency (NSPA), once called NATO Support Organization (NSPO), programs under very specific circumstances. Waiver of FMS Administrative Surcharges on these cases is not retroactive; only LOAs implemented after October 1, 1988, are eligible for consideration. The waiver value includes the calculated FMS Administrative Surcharge amount and any SCML value included on the LOA. Only NSPA LOAs in support of support partnership agreements or NATO Supreme Headquarters Allied Powers, Europe (SHAPE) projects (i.e., common-funded projects supported by allocated credits from NATO bodies or by host nations with NATO infrastructure funds) qualify for FMS Administrative Surcharge waivers. FMS Administrative Surcharges waived under this program must be reimbursed to the FMS Administrative Surcharge Account from Major Force Program (MFP) 10 funds controlled by the U.S. Mission to NATO. The following procedures apply:

    C9.6.1.2.1. NSPA includes a statement in its Letter of Request (LOR) indicating the LOA qualifies for an FMS Administrative Surcharge waiver under AECA, section 21(e)(3) (22 U.S.C. 2761(e)(3)). NSPA identifies the specific NATO/SHAPE project supported by the request and includes the following statement:

    "This is a joint coordinated request with the U.S. Mission to NATO. The U.S. Mission to NATO certifies intent to reserve and obligate MFP 10 funds for FMS Administrative Surcharges waived over the life of the LOA. It further certifies that MFP 10 funds have been obligated in the amount of one-half of the FMS Administrative Surcharges computed based on the dollar value of items or services estimated to be reported as delivered in the first year for all LOAs."

    C9.6.1.2.2. NSPA provides an information copy of the LOR to the U.S. Mission to NATO when an FMS Administrative Surcharge waiver is requested. For budgeting purposes, NSPA provides a yearly estimate of the amount of FMS Administrative Surcharge waivers to the U.S. Mission to NATO.

    C9.6.1.2.5. The U.S. Mission to NATO budgets for waived FMS Administrative Surcharges, advises DSCA of agreements to reimburse DoD for waived FMS Administrative Surcharges before the LOA is issued to NSPA, and develops an understanding with NSPA concerning programs for which waivers are supported. The U.S. Mission reserves and obligates MFP 10 funds for waived FMS Administrative Surcharges under this legislation for the life of the FMS case. For cases where the calculated FMS Administrative Surcharge value is greater than $30,000, 35 percent of the FMS Administrative Surcharge is recouped as part of the initial deposit. The remaining 65 percent is recouped based on the delivery schedule of the line.

21. Update Section C9.11.8. per below:

    Current:

    C9.11.8. Delinquent Accounts. Details on arrearages, indebtedness, delinquent debt reporting formats and frequencies are contained in Department of Defense Financial Management Regulation (DoD FMR) 7000.14-R, Volume 6A, Chapter 12, and Volume 15, Chapter 5. Most collection problems are caused by late payment, rather than default on payments. It generally takes 45-75 days after the billing statement mailing to receive collection.

    Revised:

    C9.11.8. Delinquent Accounts. Details on arrearages, indebtedness, delinquent debt reporting formats and frequencies are contained in Department of Defense Financial Management Regulation (DoD FMR) 7000.14-R, Volume 16, Chapter 6, and Volume 16, Chapter 2. Most collection problems are caused by late payment, rather than default on payments. It generally takes 45-75 days after the billing statement mailing to receive collection.

22. Update Table C10.T7. National Defense University per below:

    Revised:

    Table C10.T7. Invitational Schools

    Invitational Schools/Courses
    National Defense University College of Information and Cyberspace (B171036) College of International Security Affairs Regional Defense Fellowship Program (B171798) Joint Special Operations Irregular Warfare Master of Arts Program (B171808) Eisenhower School (B171806) Joint Forces Staff College Joint Advanced Warfighting School (B171027) National War College (B171801)

23. Add the following glossary entry:

    New:

    TERM	DEFINITION
    Co-Sustainment	The enduring collaboration among allies and partners to enable effective and efficient logistics, sustainment activities, and personnel services to operationally maintain defense platforms, systems, sub-systems, or components. "Co-sustainment" is commonly used during bi-lateral, tri-lateral, and multi-lateral security cooperation engagements alongside terms "co-development" and "co-production."

24. In AP8.T2. delete the SCCCs "C7" from International Narcotics Control and Law Enforcement (INCLE) and "C8" and "C9" from Section 1203.
25. Update appropriate references in the SAMM to "DSCA (Office of International Operations, Global Execution Directorate, Assistance & Monitoring Division (IOPS/GEX/AMD))" to "DSCA (Office of International Operations, Global Execution Directorate, End Use Monitoring Division (IOPS/GEX/EUM))".
26. The following Policy Memo statuses are updated as shown: