Foreign Military Sales
Yes
Building Partner Capacity
No
Note Input Responsibility
CWD
Date Range Of Use
All
References
See DSCA 26-128
Note Usage Instructions for Documents
Mandatory for Investment Letter of Offer and Acceptance (LOAs)
Note Text
This Letter of Offer and Acceptance (LOA) is executed solely to fund research, development, test, and evaluation (RDT&E) activities, concept exploration, and exportability feasibility assessments for the defined capability. The partner nation is hereby advised of and agrees to the following critical operational, regulatory, financial, and data rights parameters governing this case:
- No Procurement Guarantee: Implementation of this Investment Case does not guarantee, promise, or obligate the United States Government (USG) to approve or execute any future procurement, production, or transfer of a major end-item or weapon system.
- Acquisition Determination Risks: Future capability procurement is subject to independent USG release approvals, technology transfer policies, and exportability determinations. An unfavorable acquisition determination or non-release of technology by the USG may result in the inability to transition the developed capability into a procurement case.
- Financial Feasibility and Production Economics: Initial cost estimates generated during this R&D phase do not constitute a fixed-price commitment for future production. Subsequent production phases may be determined by either party to be financially undesirable due to scale, industrial base constraints, or unit cost escalations.
- Liability for Sunk Costs: If a future procurement case is not established, is denied, or is determined to be non-viable by either government, the USG assumes no financial or operational liability for funds expended (sunk costs) under this active Investment LOA.
- U.S. Government Access to and Use of Data: The USG shall be privy to all technical data, research findings, test results, and intellectual property generated by the FMS customer's research and development (R&D) or Defense Industrial Base (DIB) investments under this case. This access and use right remains fully active and perpetual, regardless of whether: (a) the FMS customer decides to terminate participation or funding after the initial phase, or (b) the USG ultimately decides to procure or not procure the resulting end-item capability.
- Any R&D costs paid under this LOA may be recouped by a Special Non-Recurring Cost charge on subsequent FMS LOAs. Future sale of any capability resulting from this LOA is at the sole discretion of the USG.