DEFENSE SECURITY COOPERATION AGENCY 2800 DEFENSE PENTAGON WASHINGTON, D.C. 20301-2800	8/7/2000

MEMORANDUM FOR :

Deputy Under Secretary of the Army (International Affairs)
Attn: SAUS-IA-DSZ Department of the Army
Commander, United States Army Security Assistance Command
Director, Navy International Programs Office
Department of the Navy
Deputy Under Secretary of the Air Force (International Affairs)
Department of the Air Force
Director, Defense Logistics Agency
Director, National Imagery and Mapping Agency
Director, Defense Reutilization and Marketing Service
Director, Defense Information Systems Agency
Director, Defense Logistics Information Service
Deputy Director for Security Assistance, Defense Finance and Accounting Service -- Denver Center

SUBJECT :

Information to Accompany Foreign Military Sales (FMS) Cases with Manpower Lines (DSCA 00-12)

Recent GAO audits, as well as problems discovered during our Letter of Offer and Acceptance (LOA) review processing, have highlighted problems and inconsistencies in the way case-funded manpower is applied. At the March 2000 Counterparts meeting we distributed a proposal addressing this issue for your review and comment. The information provided in March was two-fold: (1) a matrix which identified manpower-related activities by funding category, and (2) a sample spreadsheet which identified data we will require for LOA review of case-funded manpower.

We hosted a tri-service meeting on 31 May 00 to discuss your comments and concerns. Most of the discussion focused on the sample spreadsheet and each MILDEP expressed concern about the amount of data being requested. As a result of this meeting, we agreed to re-validate our requirements for the backup data. We also agreed to evaluate the products that each MILDEP currently uses for its internal review of manpower lines, to see if any of the existing products would suffice. Our review of the products revealed that they vary drastically from MILDEP-to-MILDEP and do not capture all the data we need. While we are hopeful that DSAMS will eventually provide the information needed, a spreadsheet is necessary to capture the data in the interim. In response to the feedback received, we have revised our initial spreadsheet to include only those items DSCA deems essential for our review of the LOA documents. This is attached for your use in submitting LOA packages for countersignature.

Please note that this requirement extends to all case-funded manpower and not just for manpower included on program management line items. This information will allow us to enforce consistency across the MILDEPs and assist you in ensuring costs are included in appropriate line items. While we appreciate the effort involved to initialize this requirement, we see the benefit of a quicker LOA turn-around and fewer case rejects. Effective 11 Sep 00, a completed spreadsheet must be submitted with the countersignature package for all cases that contain case-funded manpower.

We are also proceeding with further refinement of our activities matrix with the participation of your selected MILDEP representatives. Our next meeting is scheduled for 17 Aug 00. I am confident that together we can reach resolution.

For an electronic version of the attachment, please contact either Lisa Gold (lisa.gold@osd.pentagon.mil) 703-601-3850 or Beth Baker (beth.baker@osd.pentagon.mil) 703-604-6612.

Michael S. Davison, Jr.
Lieutenant General, USA
Director