Foreign Military Sales
No
Building Partner Capacity
Yes
Note Input Responsibility
IA
Date Range Of Use
All
References

N/A

Note Usage Instructions for Documents

For cases prior to fiscal year 2025 (see Chapter 15-Legacy).

Mandatory for Building Partner Capacity (BPC) Letters of Offer and Acceptance (LOAs), Amendments, and Modifications that utilize the Section 333 (10 U.S.C. 333) authority developed in the Defense Security Assistance Management System (DSAMS) case module, unless the latest version of the note is on the Implemented Version.

Note Text

"10 U.S.C. 333(g)(2)(A) provides Cross Fiscal Year (CFY) authority. CFY [will/will not] be utilized on lines xxx of this Building Partner Capacity (BPC) Letter of Offer and Acceptance (LOA).

  1. CFY allows the period(s) of performance for (10 U.S.C. 333) (Section 333) programs that begin in the fiscal year in which funds are available to continue until the end of the second fiscal year thereafter.
  2. In addition, as long as funds on a procurement contract are obligated within the Period of Availability timeframe for an existing bona fide need, long-lead procurement items may be delivered to the U.S. Government until funds cancel. Case reconciliation must occur after the final delivery to the U.S. Government to facilitate case closure not later than July 31 of the cancellation year.
  3. Provision of Services Related to Equipment Delivery. Certain activities that are intrinsic to the provision of equipment being delivered under a Section 333 program may occur outside the period of performance authorized by CFY authority. Such activities may include engineering and technical services, quality assurance, installation, transportation, and initial operator training (not tactical or deployment training) when performance is intrinsic to the provision of the equipment and a bona fide need exists for them at the outset of the Section 333 program. However, only services, including training, that meet these criteria and are included in the procurement contract for the equipment being delivered may be provided outside the CFY performance period (as long as funds have not yet cancelled).
  4. Defense Security Cooperation Agency (DSCA) received funding for this activity under the authority of 10 U.S.C. 2571 (Section 2571). The use of CFY authority is legally available for programs executed via reimbursable funds transfers under this authority. Unlike funds transfers under the Economy Act (31 U.S.C. 1535), Section 2571 does not require that funds transferred under its authority be returned to the ordering organization if they are not obligated during the funds period of availability. Therefore, such funds are available to pay for DoD-provided services during the period of performance allowed under CFY authority even if the funds were not obligated via a project order, travel order, or by a working capital fund transaction.”

Add for Amendments and Modifications only if BPC LOAs are utilizing Full Operational Capability Authority:

"10 U.S.C. 333(g)(2)(B) provides Full Operational Capability (FOC) authority.

  1. For a program to qualify for FOC, the program must first meet the requirements of CFY authority. Then, the USG must receive all equipment requiring follow-on support and/or services to ensure the foreign partner achieves full operational capability for such equipment before the end of the fiscal year after the fiscal year in which the program incurs the first financial obligation. If all such equipment is delivered to the U.S. Government during this time, the U.S. Government may provide the foreign partner with defense articles, training, defense services (i.e. field service representatives contractor logistical support), supplies, and small-scale military construction (subject to $2,500,000 limit) associated with the previously-delivered equipment. These FOC activities may begin in the fiscal year when the equipment is delivered to the partner nation and may continue until the end of the second fiscal year thereafter. The following lines on this LOA use this authority: (fill in).
  2. If the U.S. Government does not receive all equipment requiring follow-on support and/or services before the end of the next fiscal year after the first obligation, the line on the case does not qualify for FOC and must revert to the period of performance otherwise available under the program. The U.S. Government will make every effort to deliver the equipment to the partner nation within 120 days after acceptance of the items by the U.S. Government.
  3. Note that FOC authority is not available to extend the period of performance for training-only programs, Section 333 programs that include FOC assistance executed via Section 2571 funds transfers are not subject to obligation/de-obligation requirements under the Economy Act.
  4. The following lines on this LOA use FOC authority: (fill in)."

Add the below for all uses of this note:

"*A Section 333 program is defined as the provision of a particular capability to a specific benefitting partner (or partners) within a tranche of a Congressional Notification. DSCA (Office of International Operations, Global Capability Development Directorate (IOPS/GCD)) oversees the development and execution of Section 333 programs. The notification to Congress defines a Section 333 program's scope. A Section 333 program may require execution by multiple Implementing Agencies and recipients of Direct Funds, with multiple BPC LOAs and direct funds transfers, all of which will share a common program start date based on the earlier of the following: (1) the program's first obligation of program funds for a procurement contract; or (2) the first date of delivery to the Benefitting Partner of a USG sourced defense article or USG sourced defense service provided by the program.

**For more information on the program start date, please pull Security Cooperation Information Portal (SCIP)/Security Cooperation Management Suite (SCMS) Dashboard report or contact DSCA (IOPS/GCD) for assistance."