This chapter is for Building Partner Capacity (BPC) Programs that use cases and Training Grants developed in the Defense Security Assistance Management System (DSAMS). This applies to Title 10 (T10) Fiscal Year (FY) 2025 BPC appropriations, FY 2024 Women, Peace, and Security, FY 2024 Counter-Islamic State of Iraq and Levant/Counter-Islamic State of Iraq and Syria Train and Equip Fund, and all future year appropriations. Refer to Chapter 15-Legacy for guidance on all other T10 BPC programs and Title 22 BPC programs. Each program listed in Appendix 8 will indicate in the program whether cases are used or not

C15.1.1. BPC programs are USG security cooperation (SC) projects, programs, activities, and engagements, funded by USG appropriations for the purpose of building partner security force capability. Program authorizations originate in Title 10 of the U.S. Code or in annual National Defense Authorization legislation and are funded by an Appropriation Act. The SC community designs, coordinates, and centrally manages each BPC Program to achieve a certain set of objectives, in accordance with its statutory authorization. See Chapter 11 for a listing and description of SC and security assistance (SA) BPC authorities executed and administered by DSCA. A single BPC program that uses BPC Letters of Offer and Acceptance (LOAs) may require the development and implementation of multiple cases executed by multiple Implementing Agencies (IAs). See Chapter 1 for the relationship of the SC Program, SC project or program, and activity overview and relationships. The SC community follows the BPC case process outlined in this chapter for executing and managing BPC programs that require a BPC LOA.

C15.1.2. Life Cycle. BPC Programs authorized under Title 10 of the U.S. Code must comply with Assessment, Monitoring, & Evaluation (AM&E) policies and guidance. Assessments must be conducted prior to case development and implementation, monitored during execution, and evaluated after case closure. AM&E is conducted at the Initiative, Program, and Authority levels.

C15.1.3. BPC response documents are known as BPC cases. The DoD utilize BPC cases to provide defense articles, services, and training to partners, and to facilitate the DoD’s ability to meet other statutory requirements such as reporting, AM&E, and audit readiness. Unlike Foreign Military Sales (FMS) cases which are funded with partner funds or Foreign Military Financing funds and signed by the partner, BPC cases are only funded using U.S. appropriated funds unless otherwise authorized by U.S. law and policy (i.e. donations to Ukraine Security Assistance Initiative). A BPC case is not signed by the assisted partner or Benefitting Partner. As a result, BPC case terms and case notes do not provide a means to obtain a commitment from the Benefitting Partner.

C15.1.4. DSCA-managed BPC equipping programs must be provided pursuant to a BPC case, absent a waiver approved by the Director, DSCA, for the following:

C15.1.5. Appropriation Life Cycle. BPC cases are funded through appropriated funds and are subject to the appropriation lifecycle. Typically, the period of availability of an appropriation has three distinct phases: current or unexpired, expired, and cancelled. (See DoD Financial Management Regulation (DoD FMR), DoD 7000.14-R, Volume 3, Chapter 13, Paragraph 3.2.1.2. for additional details.)

C15.1.5.1. Current or Unexpired Funds. Congress appropriates current-year funds, and establishes a period of availability (see DoD FMR. DoD 7000.14-R. Volume 3 Chapter 13, Paragraph 3.2.1.1.) During the current-year period (see DoD FMR. DoD 7000.14-R. Volume 3 Chapter 13, Paragraph 3.2.1.2.1.), IAs and Program Offices have the authority to utilize those funds for new obligations, obligation adjustments, expenditures, and outlays. BPC authorities typically receive Operations and Maintenance (O&M) appropriations with a period of availability of one or two fiscal years. At the end of the specific fiscal year, which is September 30th, after an appropriation expires, absent an explicit ad hoc approval to use prior years funds, an IA is not permitted to create new obligations with expired funds.

C15.1.5.2. Expired Funds. Expired funds retain their fiscal year identity for five years after the appropriation expires (see DoD FMR. DoD 7000.14-R. Volume 3 Chapter 13, Paragraph 3.2.1.2.2.). IAs must only utilize funds for obligation adjustments, expenditures, and outlays during the expired period. The DSCA Country Portfolio Director (CPD), Regional Portfolio Director (RPD), and Country Finance Director (CFD) in coordination with the IA will work to identify and return any unused or residual case funds prior to the end of the fiscal year of which funds cancel.

C15.1.5.3. Cancelled Funds. The appropriation is considered cancelled on September 30th of the fifth fiscal year after the period of availability ends (see DoD FMR. DoD 7000.14-R. Volume 3 Chapter 13, Paragraph 3.2.1.2.3.). Funds are no longer available for any purpose. Program Offices must seek appropriated funds currently available for the same purpose if an obligation adjustment or payment is required. See Section C15.6.2.1. Prior Year Adjustments for more information.

C15.1.6. Overview of the Building Partner Capacity Case Process. BPC case development and execution is organized into six phases. The IAs manage appropriated funds in accordance with the appropriation lifecycle and ensure communication with the Benefitting Partner, which must occur in each phase.

Planning and Requirements Definition. The Requesting Authority generates the plan and documents the associated performance requirements necessary to build the desired capability for the Benefitting Partner to support U.S. objectives. The SC community reviews, prioritizes, approves, and resources the plans for development and execution. This phase often begins prior to the appropriation of funds but may also continue during the current period of availability of the appropriation. The Requesting Authority completes this phase by submitting a memorandum of request (MOR) as soon as possible so that the program remains on the appropriate development timeline. The BPC MOR is analogous to the FMS Letter of Request (LOR), which is submitted by the foreign purchaser (See Section C15.2.1. for more details).

C15.1.6.2. Case and Training Grant Development. There are two different methods to develop a BPC LOA. A BPC materiel case will contain a line(s) for each of the defense articles, services, and small scale construction being provided and may also contain training specifically related to the use of U.S. defense articles or services. A BPC grant program will only include training managed and executed by the appropriate training field activities. Case development occurs during the current period of funds availability. IAs and Requesting Authorities coordinate to document the requirements, costs, and schedule on a BPC case. The Requesting Authority, with support from Component Commands and IAs, determine BPC case scope through assessment of partner capacity and capability to perform strategic, operational, support, and governance roles. Upon completing development of a BPC materiel case, the IA submits the BPC case to DSCA for processing. DSCA (Office of International Operations, Global Execution Directorate, Case Writing and Development Division (IOPS/GEX/CWD)) conducts a quality assurance review, prepares the final version of the BPC case, and coordinates review and approval by DSCA and the Department of State (State), as required. Any changes made to the BPC case are approved by the IA. Upon completing development of a BPC training grant, DSCA (Office of Business Operations (OBO)) will review the training grant and approve funding.

C15.1.6.3. Case and Training Grant Implementation. Defense Finance Accounting Services Security Cooperation Accounting (DFAS-SCA) does not have oversight of BPC case or training grant funds. Funds are not transferred into the FMS trust fund or accounted for in Defense Integrated Finance System (DIFS). (See Section C15.4.3.1.) Following completion by the IA of a BPC materiel case or training grant, DSCA and State (as applicable) will review and approve the case. The Funding Authority then transfers funds to the IA or performing activity, and the case or training grant is placed in Implemented status after the IA acknowledges the receipt of funds in DSAMS. (Materiel cases and training grants will not have milestones for offer and accepted). This action must occur during the period of availability of the appropriation.

C15.1.6.4. Case and Training Grant Execution. DoD Title 10 funds must be obligated during the period of availability.

C15.1.6.4.1. Procurement. IAs procure defense articles and services in accordance with the Federal Acquisition Regulation (FAR) and the Defense Federal Acquisition Regulation Supplement (DFARS).

C15.1.6.4.2. Transportation. Materiel is transported using the Defense Transportation System (DTS), or vendor-provided transportation when pre-approved by policy exception. The IA retains oversight of the transportation process and assists with resolution of transportation issues that may arise.

C15.1.6.4.3. Receipt and Transfer. The Security Cooperation Organization (SCO), or authorized USG representative, receives and inventories the materiel, transfers custody and responsibility of the materiel and services to the Benefitting Partner, documents the transfer of equipment to the Benefitting Partner provides copies to DSCA per Table C15.T1., and begins End Use Monitoring (EUM), as applicable.

C15.1.6.5. Case and Training Grant Amendments. IAs make all administrative updates and scope changes to the BPC case as necessary. Amendments to BPC cases do not require Benefitting Partner acceptance or signature, therefore these changes will be accomplished via a case amendment. Modifications will no longer be used for BPC cases as there is no meaningful difference between a modification and amendment for cases funded with USG appropriations. IAs may amend the BPC case during the current or expired period of the relevant appropriation funding for the BPC case. Once placed in proposed status and funding transferred as applicable, the amendment will be implemented. Amendments after the period of availability are limited to returning funds, reducing scope if funds were not obligated, and prior year adjustment actions. A BPC case may only be funded with a single appropriation.

C15.1.6.6. Case Closure. Case closure begins once the BPC case is Supply/Services Complete (SSC). See Section A7.C2.13.1.1. and Section A7.C2.13.1.2. for SSC criteria. The IA expends BPC program funds no later than July 31st of the funds’ cancelling fiscal year or other deadline specified in funding documents to complete closure before appropriated funds cancel.

C15.1.6.6.1. Residual Funds. The IA must identify any residual funds for return as soon as possible and inform the DSCA (Office of International Operations (IOPS)) Program Manager. DSCA determines if an amendment should be tasked to return these funds, or if the funds should be returned during case closure. When closure activities are complete, the IA will post closure milestone in DSAMS.

C15.1.7. Responsibilities. General roles and responsibilities that pertain to the planning, development, execution, and management of BPC programs are summarized below.

C15.1.7.1. Funding Authority. The Funding Authority is the organization responsible for administering BPC program funding and exercising management oversight of program requirements. See Section C11.2. and Section C11.3. for details on Funding Authority and Sources. DSCA, a Military Department (MILDEP), or the Office of the Under Secretary of Defense for Policy (OUSD(P)) serves as the Funding Authority upon receipt of funding through appropriation. Non-DoD agencies serve as the Funding Authority for appropriations they provide to DSCA under the Economy Act or Section 632(b) of the Foreign Assistance Act (FAA), as amended. See Appendix 8 program-specific entries for the organization that serves the Funding Authority role.

C15.1.7.2. Requesting Authority. The Requesting Authority is the organization responsible for planning and monitoring program execution of regional or country capacity building activities. The geographic Combatant Commands (CCMDs) serve as Requesting Authorities for DoD T10 authorities. The Requesting Authority communicates detailed requirements to DSCA and the IA as part of pre-MOR planning, and receives IA feedback in order to complete the MOR. The Requesting Authority must then remain actively engaged to ensure the IA has the necessary information for case development, and the Requesting Authority must approve any proposed substitutions or program adjustments due to cost overages if a requested article cannot be procured to enable timely obligation of expiring funds.

C15.1.7.3. Department of State, Bureau of Political and Military Affairs. Department of State, Bureau of Political and Military Affairs (State (PM)) negotiates and concludes Section 505 agreements with Benefitting Partners in receipt of U.S. grant assistance. Section 505 of the FAA requires that any partner receiving assistance under the FAA, as amended, sign such an agreement. This requirement applies to the provision of assistance under some Title 10 authorities as a matter of law, (e.g., assistance provided under 10 U.S.C. 331 or 10 U.S.C. 333) and others as a matter of policy. Diplomatic Notes or other appropriate means are used in obtaining the requisite assurances under Section 505 that the Benefitting Partner clearly understands its responsibilities. State (PM) reviews each BPC LOA to ensure that BPC programs align with foreign policy objectives, and approves each BPC LOA based on the daily State List Report provided by DSCA (IOPS/GEX/CWD).

C15.1.7.4. Under Secretary of Defense for Policy. In accordance with 10 U.S.C. 382(a) the Secretary of Defense (SECDEF) assigned the Under Secretary of Defense for Policy (USD(P)) the responsibility to provide oversight of the strategic policy and guidance and overall resource allocation for security cooperation programs and activities funded by operations and maintenance, defense-wide appropriated funds allocated to DSCA. USD(P) generates guidance and directs the prioritization of SC resources through the Significant Security Cooperation Initiative (SSCI)-centric planning process. USD(P) tasks the geographic CCMDs with assistance from DSCA, the Joint Staff (JS), and relevant OUSD(P) offices to develop and submit SSCI objectives, Initiative Design Documents (IDDs), Performance Monitoring Plan (PMP), and five-year plans for demand signal for resources and forces required to achieve DoD objectives. OUSD(P), through the Security Cooperation Policy Executive Council (SCOPEC), reviews, prioritizes, and generates recommended resource allocation courses of action for SC activities contained in the SSCIs to USD(P). USD(P) resource allocation responsibilities also include determinations for redirection and diversion of Title 10 assistance. See Section C15.6.2. for additional details on redirection and diversion.

C15.1.7.4.1. Defense Security Cooperation Agency. DSCA supports DoD components on the appropriate use, integration, and execution of SC programs to develop comprehensive, full-spectrum, and sustainable approaches building allied or partner defense and security capabilities and capacity, and to achieve other USG defense policy goals. DSCA provides guidance to DoD components, SCOs, and IAs on the development, administration, and execution of BPC program activities. DSCA guidance includes supporting the generation of MOR documents, defining requirements with IAs, feasibility, proposal development, case development and closure guidance. The MILDEP IAs maintain primary responsibility for BPC case and training grant preparation and execution, however, in specific circumstances, DSCA acts as the IA in the case of direct-funded programs. DSCA oversees program-level logistics planning, performs program and financial management for BPC programs, develops and implements program policies, monitors obligations of funds, deliveries, and execution, and otherwise assists Requesting Authorities in achieving BPC program objectives. DSCA is responsible for notifications and other reporting to Congress in respect to certain authorities. DSCA maintains responsibility for the FMS and BPC data infrastructure and Information Technology (IT) systems of record. See Appendix 8 for BPC program-specific guidance and restrictions.

C15.1.7.5. Office of the Under Secretary of Defense (Comptroller). The Office of the Under Secretary of Defense (Comptroller) (OUSD(C)) is responsible for establishing and updating guidance on the use of DoD funds. For select authorities (See Appendix 8) OUSD(C) reviews and submits Congressional Notification (CN) packages to the Office of the Under Secretary of Defense for Legislative Affairs (OUSD(LA)) to forward to appropriate Congressional committees. OUSD(C) authorizes the release of DoD funds for BPC programs and reports to Congress on the use of funds.

C15.1.7.6. Geographic Combatant Commands. Each geographic CCMD conducts multi-year planning of BPC activities and strategies for the regions and partners within its theater of operations, documented in the Theater Security Cooperation Plan (TSCP). Each TSCP supports geographic CCMD goals and objectives for regional security and is coordinated with the U.S. Missions’ plans for security assistance. Geographic CCMDs are the Requesting Authority for Title 10 resources controlled by the USD(P). Geographic CCMDs generate a demand signal for Title 10 resources through generation of SSCIs, IDDs, and Five-Year Plans. The geographic CCMD also has overall responsibility for prioritizing, coordinating, monitoring, and evaluating the success of SC activities in-theater.

C15.1.7.6.1. Security Cooperation Organization. The SCO within each Benefitting Partner supports the Requesting Authority through each phase of the BPC process from planning to the transfer of materiel or provision of services and interacts closely with Benefitting Partner security forces. The SCO is entrusted with communicating BPC program objectives and requirements to Benefitting Partner representatives and soliciting information from the partner. The SCO is ultimately responsible for tracking and reporting all BPC-provided assistance back to DSCA. Table C15.T1. provides a summary listing of SCO responsibilities unique to all BPC programs.

C15.1.7.6.2. The Implementing Agency. The IA has overall responsibility for case development, timely funds obligation, execution, and closure. IAs must communicate frequently with stakeholders such as the DSCA CPD, the DSCA RPD, the DSCA CFD, the Requesting Authority, the Procuring Office, the United States Transportation Command (USTRANSCOM), and the SCO to facilitate information sharing of case plans, status, and changes. The IA collaborates closely with the Requesting Authority during planning and verifies that the MOR is complete before initiating a BPC LOA document in DSAMS (see Table C15.T2.). The IA must be aware of the nature and limitations of the appropriated funds being used to ensure its activities meet obligation, expiration, and cancellation timelines.

C15.1.7.6.3. United States Transportation Command. The IA has overall responsibility for ensuring BPC materiel is transported and delivered to the SCO. However, USTRANSCOM manages DTS, which moves materiel from the point of origin to the final destination within the Benefitting Partner. If materiel is delivered to a central Port of Debarkation (POD) in-theater, USTRANSCOM may coordinate with the geographic CCMD to arrange for materiel to be moved to the destination depending on the delivery term code applied to the BPC LOA. The SCO may need to contact the POD or USTRANSCOM Deployment Distribution Operations Center, (commercial phone (618) 220-7700), to determine the shipping status if the articles are not in a tracking system such as the Enhanced Freight Tracking System (EFTS).

C15.2.1. General. The Requesting Authority is responsible for planning and requirements definition of Building Partner Capacity (BPC) efforts to support specific USG objectives. The Implementing Agency (IA) may conduct a feasibility assessment to determine the most appropriate solution. The Requesting Authority then submits an actionable memorandum of request (MOR) to DSCA.

C15.2.2. Appropriations.

C15.2.2.1. Department of Defense Appropriations. Congress appropriates funding to DoD for specific BPC authorities through annual DoD Appropriations. However, not all BPC authorities receive appropriated funds each year. Some BPC authorities may also be funded by DoD appropriations and executed by other USG agencies. DoD will use the Economy Act or 10 U.S.C. 2571 to seek reimbursable support from external organizations tasked with executing the program. The executing agency or performing activity receives the appropriated funds or obligation authority, obligates, and expends the funds to procure the desired articles and services.

C15.2.2.2. Other United States Government Agency Appropriations. Refer to Chapter 15-Legacy (found as a subset under the Chapter 15 section).

C15.2.3. End Use Assurances. BPC assistance cannot be provided unless the partner has concluded a binding bi-lateral agreement with the USG pursuant to Section 505 of the FAA (Section 505 Agreement). The requirement for a Section 505 agreement is imposed as a matter of law for some DoD BPC programs (e.g. assistance provided under 10 U.S.C. 331 or 10 U.S.C. 333). The requirement for a 505 agreement is imposed as a matter of policy through regulation for all other DoD BPC programs. Even when a 505 agreement is not legally required, the International Traffic in Arms Regulations (ITAR), 22 CFR 126.4(a)(4), imposes a regulatory requirement for the USG to obtain appropriate end-use and retransfer assurances from the partner before transferring a defense article or defense service for a DoD SC activity. If proposed BPC assistance is for a partner who lacks a Section 505 agreement and the relevant BPC transfer authority does not legally require a Section 505 agreement, DoD may apply for an ITAR waiver to enable the BPC assistance to proceed despite the lack of any binding end use assurances by the partner. The existence of a Section 505 agreement is not sufficient to satisfy the requirement to obtain partner end use assurances if the scope of the concluded 505 agreement is not broad enough to capture the proposed transfer pursuant to the applicable BPC assistance authority. To satisfy the requirement for a Section 505 agreement, the scope of the concluded Section 505 Agreement must include the proposed grant assistance that would be provided through the specific BPC Program. Physical security requirements for transferred sensitive defense articles are not included in the terms of a BPC case because the Benefitting Partner is not a signatory to the case.

C15.2.3.1. Principles of Use of Military Unmanned Aerial Systems. DSCA (Office of International Operations, Global Execution Directorate, Assistance & Monitoring Division (IOPS/GEX/AMD)) is the DSCA lead for tracking the development and coordination of Unmanned Aerial Systems (UAS) Principles of Use Agreement for the particular transfer.

C15.2.4. Building Partner Capacity Program Codes. BPC program implementation and appropriated funds execution must comply with authorizing legislation. DSCA assigns a unique two-digit alphanumeric or alpha-alpha semi-permanent program code to each BPC Program Authority applicable appropriation to accurately track funds in support of each specific authorization. Table C11.T2. lists each SC and State SA BPC Program administered by DSCA. The Authority and Program Code Listings are provided in Section 8 of each program in Appendix 8, and a summary table is provided in Table AP8.T2. Security Assistance and Security Cooperation Programs Code Listing. Each BPC Program listed in Table AP8.T2. contains a Fund Source column that provides the source of funding associated with each code and indicates whether the funds are from a DoD or non-DoD agency, and whether the funds were provided via an IAA pursuant to the FAA, Section 632(b). The Appropriation Authority, Expiration Date, and Cancelling fiscal year columns indicate the fiscal year that the appropriation was signed into law and its timeline.

C15.2.5. Planning and Coordination. Most BPC program and case planning occur in conjunction with annual geographic Combatant Command (CCMD) SC planning. The geographic CCMD’s J5 organizes this annual SC planning in a series of regional and partner-focused working groups, which is documented in the Theater Security Cooperation Plan (TSCP). Crises, targeted appropriations, and other events may make it necessary for the Requesting Authority to begin BPC case planning outside the annual geographic CCMD’s planning process. Some authorities, such as Section 333 and Section 332, have their own annual coordination cycles. The Requesting Authority must coordinate with the geographic CCMD, the Security Cooperation Organization (SCO), DSCA, and other key USG stakeholders as early in the process as possible. The geographic CCMD should include the Military Departments (MILDEPs) and regional experts within the Office of the Secretary of Defense (OSD) and State to participate in SC planning.

C15.2.5.1. Benefitting Partner Involvement. SCOs should engage with the Benefitting Partner representatives, as appropriate, to support U.S. objectives. The SCO must clearly communicate during any engagement with the Benefitting Partner that planning discussions do not in any way imply or guarantee USG assistance. Proposed U.S. assistance for a partner is not guaranteed. Prior to title transfer, the USG may opt to divert proposed assistance to a different Benefitting Partner. See Section C15.5.9.9.

C15.2.5.1.1. The SCO may engage with the Benefitting Partner to gain insights on the current conditions within the Benefitting Partner to develop an individual BPC program’s objectives and requirements. The Benefitting Partner’s representatives can provide the SCO with their perspective on the threat, details of existing capabilities, current capacity, inventory, logistics and lifecycle management chain, concept of operations, and any additional security requirements that would support identification and prioritization of the BPC program requirements. The Benefitting Partner’s representatives must confirm budget availability and the ability to support and sustain any BPC provided articles and services under consideration.

C15.2.5.1.2. The SCO works with the Benefitting Partner to navigate the Benefitting Partner Customs processing and security, and to arrange for final delivery and title transfer once defense articles, training, and services are procured or available to be provided.

C15.2.5.2. Protected Information. SCOs must not share internal USG correspondence or information about internal USG discussions regarding BPC requirements and pre-decisional information with Benefitting Partner representatives.

C15.2.5.2.1. Approved Sample Language to the Benefitting Partner for Security Cooperation Organization use for Proposed United States Government Assistance. Below is the approved language that SCOs can use to discuss potential grant assistance directly with the Benefitting Partner:

C15.2.6. Identification of Desired Capabilities. The Requesting Authority defines the Benefitting Partner’s military roles required to meet security objectives under existing and emerging security environments. This assessment should include a gap analysis of doctrine, organization, training, materiel, leadership, personnel, facilities, and policy (DOTMLPF-P) within the Benefitting Partner for each capability considered to prevent an overly narrow focus on equipment or training solutions. The assessment, captured in the geographic CCMD’s Country Campaign Plan, should also consider the Benefitting Partner’s political will to apply the capabilities, the national legal framework that permits or circumscribes the application of the capabilities in support of the desired partner role, and the capacity of the partner’s Ministry of Defense (MoD) and other supporting institutions to sustain the capabilities. The Country Campaign Plan articulates how desired roles and capabilities relate to specific geographic CCMD and national-level strategic objectives. The U.S. Embassy includes desired partner objectives in the Integrated Country Strategy (ICS) and Mission Resource Request (MRR).

C15.2.6.1. Prioritize Requirements. The Requesting Authority identifies a prioritized list of partner capacity and capability shortfalls that the Benefitting Partner is willing to address once initial planning is completed, and the Country Team within the U.S. Embassy or the American Institute in Taiwan (AIT) indicates the will to support. This prioritization helps direct resources toward the most urgent requirements, assures proper sequencing of the delivery of new capabilities, facilitates the creation of capability packages, and provides scale-ability to the overall program should only a portion of requested funds be available. The Requesting Authority should coordinate the prioritization with IAs and geographic CCMD’s staff, while considering any known restrictions on the use of funds.

C15.2.6.2. Capability Package Planning. The Requesting Authority translates prioritized requirements into packages of specific, actionable, and sustainable BPC program requests. USG subject matter experts may conduct site visits for complex efforts or if more definitive assessments are required. The subject matter experts consult with Benefitting Partner representatives, inspect equipment, evaluate institutional capacity, and assist the Requesting Authority in capability package planning.

C15.2.7. Total Package Approach. The Requesting Authority should apply the Total Package Approach (TPA) to the provision of defense articles and defense services for capacity building in BPC MORs. The Requesting Authority should consider and address follow-on support and effective sustainability during planning, and also recognize that BPC programs are limited by the funds’ availability of the appropriation. Adequate sustainment support may require additional spares, training, consumables, and possible contractor logistics support that exceed the BPC authority and appropriation timelines and may require a follow-on program.

C15.2.7.1. Feasibility Assessment. DSCA and the IA will conduct a feasibility assessment to verify that requirements are actionable, and the desired materiel and training can be provided in accordance with the restrictions of the authorizing legislation. The IA should use the Feasibility Checklist on the Training and Equipment List (TEL) early in the process. The formal feasibility assessment period is 7-14 days, during which the IAs and other implementers review the TELs to ensure they can purchase the assigned equipment, training, and services. The DSCA Country Portfolio Director (CPD) in coordination with the Regional Portfolio Director (RPD) or BPC Program Manager may by exception extend the feasibility assessment period for more complex programs. The IA proposes alternatives to the Requesting Authority for articles, services, and training that cannot be provided due to availability or releasability issues. The alternatives being considered provide a similar capability that is permitted in accordance with the authorizing legislation and the period of availability of the funds. The Requesting Authority must confirm that any proposed substitutes for equipment and services are acceptable and must revise the MOR to reflect the change. DSCA may also reassign programs or lines to another IA if the original IA identifies issues with executing a particular program. Feasibility assessments should identify any documentation needed to complete the MOR package, such as a Country Team Assessment (CTA) and the geographic CCMD’s endorsement; definition of requirements; technology security and foreign disclosure releases; accurate equipment, training, and support cost estimates; transportation plans; third-party transfer approval and waiver of non-recurring cost charges for cooperatively produced defense articles; and special contracting requirements.

C15.2.8. Targeting Capabilities. Any BPC transfers of air-to-surface (A/S) munitions greater than or equal to 105mm in diameter, ship-to-shore munitions, indirect fire surface-to-surface (S/S) munitions, and/or the associated A/S and S/S delivery systems and/or components, must account for the appropriate advanced target development (ATD) capabilities that enable the effective employment of such munitions while enabling the partner to minimize the risk of civilian harm. ATD capabilities are covered in more detail in Section C4.4.18., and more specific guidance for unguided indirect fire S/S munitions is provided in Section C4.4.18.7.

C15.2.9. Price and Availability. IAs provide Price and Availability (P&A) data to DSCA immediately following the feasibility review period. BPC P&A responses differ from FMS P&A responses outlined in Section C5.3. BPC P&As are developed by the IA, independent of Defense Security Assistance Management System (DSAMS) and provided directly to DSCA. BPC P&A pricing data must be of sufficient fidelity to accurately set the program price ceiling and create the Congressional Notification (CN). IAs must also complete the program execution timeline tab, as this information is included in the CN tables. The IA must communicate to DSCA any requirements for additional information or clarification in order to provide pricing information within 45 days of the P&A request. When submitting P&A data to DSCA, IAs must identify and communicate to the DSCA Program Manager any equipment that requires a CTA, CCMD endorsement, and/or technology security and foreign disclosure review and release. The Requesting Authority, in conjunction with the SCO, ensures CTAs and CCMD endorsements are provided before BPC case development begins. IA submittal of P&A confirms IA sufficiency to develop the BPC case in accordance with Case Development Category D as explained in Table C5.T6., and to begin execution once the BPC case is implemented.

C15.2.10. Economy Act. The Economy Act, 31 U.S.C. 1535 and Section 1536, is a general authority for the interagency or the intradepartmental furnishing of goods and services on a reimbursable basis. The purchasing department or agency must pay the performing agency’s actual costs of the goods or services provided under this act, to include direct and indirect costs. The entire amount of an Economy Act order to fill a BPC program requirement is obligated by the purchasing agency when the performing agency accepts the order (DoD Financial Management Regulation (DoD FMR) Volume 11A, Chapter 3). Economy Act orders, however, are subject to the same fiscal limitations that are contained in the appropriation from which they are funded. The performing agency must enter into any supply or service contract pursuant to the Economy Act order before the appropriation’s period of availability for obligation expires. For services to be provided not by contract but by the performing agency, the performing agency will de-obligate all obligated funds for services not to be provided before fund expiration and return the funds to DSCA. The purchasing agency will return the funds prior to their expiration.

C15.2.11. Funds Execution Planning. The IA verifies that all appropriated funds for the BPC case can be obligated before the expiration of the period of availability for new obligations. The IA notifies the Requesting Authority and the DSCA CPD or Regional Portfolio Director (RPD) if there is a possibility that funds may not be obligated during this timeframe. The IA also considers materiel shipment requirements and ensures that sufficient transportation funds are identified in the MOR and on a BPC transportation case.

C15.2.11.1. Congressional Notification. BPC program execution may be subject to a CN requirement before funds are made available for case implementation based upon the requirements in the specific authorizing legislation. See the program-specific guidance in Appendix 8 for additional details on roles, format, and time requirements for notifications to Congress.

C15.2.11.2. The CN must be submitted to Congress in advance of initiating activities under a BPC program. Each BPC authority requiring notice to Congress may have differing requirements for how far in advance the notice must take place. DSCA (Office of International Operations, Global Execution Directorate, Case Writing and Development Division (IOPS/GEX/CWD)) will withhold offering any BPC Letter of Offer and Acceptance (LOA) by placing the “WAIT” milestone on the BPC case until DSCA Country Finance Director (CFD) confirms the CN and funds release. The IA and DSCA must ensure each case is ready to implement as early in the year as possible, to maximize the remaining period of availability for funds obligation, funds expenditure, and case execution.

C15.2.12. Title 10 Significant Security Cooperation Initiative Centric Planning. The Significant Security Cooperation Initiative (SSCI) centric planning process serves as the basis of generating requirements for a Title 10 BPC program. An SSCI comprises multiple SC activities planned over multiple years in support of a specific SC objective and consists of Initiative Design Documents (IDDs), with Performance Monitoring Plans (PMPs) as a requirement. A PMP outlines objective statements, monitoring indicators, and baseline data for SSCI objectives, long-term and short-term outcomes, outputs, and activities. The PMP includes an Objective Tree, a logic model that ties activities to specific objectives at the SSCI, National Defense Strategy and Theater Campaign Plan levels. Each SSCI objective requires the Requesting Authority to generate an IDD that identifies the programs, projects, and activities over a three-to-five-year period in sufficient detail to ensure that IAs have the information needed to source appropriate defense articles and services to enable the achievement of the SSCI objective. This phase of a BPC requirement concludes with the Requesting Authority’s submittal of a detailed, coordinated MOR that is executable by the IA within funding and timeline limitations. The Requesting Authority should complete the request package with support from the SCO, geographic CCMD, DSCA, the Office of the Under Secretary of Defense for Policy (OUSD(P)) and other stakeholders, and with technical advice from the IA if required.

C15.2.13. Memorandum of Request. The Requesting Authority, in accordance with its internal procedures, finalizes and submits a MOR to DSCA. DSCA reviews the MOR, determines the appropriate IA, and tasks the IA with the MOR for BPC case development. If an MOR does not meet the basic requirements of Table C15.T2., no further action will be taken until all required information is received. MORs must be unclassified and submitted in unclassified communication channels so they are accessible to all stakeholders. See Table C15.T2. for a list of MOR information. Requesting Authorities should submit completed MORs as expeditiously as possible and in accordance with the authority’s programmatic schedule to allow adequate time for case development and funds obligation within the established authority’s specified planning timeline (See Section 4 of each program in Appendix 8 for planning information). The IA must develop 85 percent of BPC materiel cases within 60 days of receiving a completed MOR. The development period is complete when the case is assigned the BPC Wait milestone. See Table C5.T6., for Case Development Category D cases. Training grants do not have a development period.

C15.2.14. Congressional Notifications for Department of Defense Funded Programs. The DoD Requesting Authority initiates the CN process by submitting proposals and requirements to OSD. Depending on the specific authority, Office of the Under Secretary of Defense (Comptroller) (OUSD(C)) or Office of the OUSD(P) coordinates the CN packages with DSCA, State, and Office of the Under Secretary of Defense for Legislative Affairs (OUSD(LA)) before they are submitted to the Secretary of Defense (SECDEF), as required, and then to Congress for the required notification period. BPC program funds may be notified annually or may be notified in groups, referred to as tranches, during the fiscal year. Annual or tranche notifications are determined based on the applicable statutory authority. The level of detail required for each CN varies by authority. OUSD(C) will authorize release of funds to the appropriate DoD Comptroller office once the notification period expires and no congressional holds remain.

C15.2.15. Sole Source Justification. All sole source requests require a J&A in accordance with Federal Acquisition Regulation (FAR) and Defense FAR Supplement (DFARS) requirements for DoD and must be approved by the IA’s contracting authority per 10 U.S.C. 3204. See Figure C15.F1.

C15.2.15.1. The Requesting Authority will provide a Statement of Urgency if an exception is requested based on unusual and compelling urgency. See 10 U.S.C. 3204(a)(2). Neither the preference of the Benefitting Partner nor the expiring nature of funds will be sufficient justification for urgency.

C15.2.15.2. The Requesting Authority will complete a J&A if an exception is requested because there is either only one responsible source or there is a specific brand-name requirement to support an existing logistics chain already found in the Benefitting Partner per 10 U.S.C. 3204(a)(1). See FAR Subpart 6.3, DFARS 206.3, DFARSPGI 206.3.

C15.2.15.3. The 10 U.S.C. 3204(a)(4) “International Agreement” exception cannot be used to support BPC requirements, because there is no international agreement with the partner. In the context of FMS, the Letter of Offer and Acceptance is a binding agreement under U.S. domestic law and can be relied upon as the basis to sole source a requirement based on the “international agreement” exception.

C15.2.15.4. Other justifications for sole source procurements can be found in the FAR and DFARS.

C15.3.1. General. Building Partner Capacity (BPC) case development generally follows the guidance for Foreign Military Sales (FMS) and Foreign Military Financing (FMF) Letter of Offer and Acceptance (LOA) development, implementation, and execution found in the Chapter 5 and Chapter 6. The process set forth below highlights BPC-unique caveats that Implementing Agencies (IAs) must follow when developing BPC cases. The Requesting Authority and Security Cooperation Organization (SCO) will monitor program and case development in Security Cooperation Information Portal (SCIP)/Security Cooperation Management Suite (SCMS) and will remain actively engaged during case development to clarify requirements, ensure development is on-track, and maintain communication with the Benefitting Partner.

C15.3.2. Development Timelines. BPC cases must be developed in accordance with Case Development Category D as described in Table C5.T6., 85% of the time. The Group D 60-day timeline for BPC materiel cases begins when the customer request is complete and ends either when the “BPC Wait” milestone is applied or once BPC cases are in the “Review” status, stopping the 60-day timeline. DSCA (Office of International Operations, Global Execution Directorate, Case Writing and Development Division (IOPS/GEX/CWD) should conduct final phase case writing within four business days from when the Implementing Agency (IA) posts the Military Approval (MILAP) milestone in Defense Security Assistance Management System (DSAMS) until the case is in review in the Case Tracking System (CTS). Case review should occur within six working days and case financial implementation can take 10-15 days from the date when the IA posts the Military Signature (MILSGN) milestone in DSAMS. DSCA (Office of Administration, Performance Improvement and Effectiveness Directorate (ADM/PIE)) will monitor case implementation status as a SCIP Pending Case Status report and will annotate any reasons for late implementation. BPC cases returned to development status for correction should be addressed expeditiously to support notional timelines. For case corrections DSCA reviewers deem may be fixed later via comments in CTS and case remarks in DSAMS, DSCA (IOPS/GEX/CWD) will post a Future Correction milestone to be incorporated in conjunction with the first Case Amendment. BPC training grants will not have a case development category, however the IA must approve the customer request within five working.

C15.3.3. Security Cooperation Customer Code. The Benefitting Partner’s security cooperation (SC) Customer Code (SCCC) should be followed by a dash, then a short description of the articles and services being provided. This field is limited to 45 characters. The Benefitting Partner code must be the SCCC that is used for the Congressional Notification (CN).

C15.3.3.1. The BPC program code is used as the Benefitting Partner code when the case developed is exclusively for transportation.

C15.3.4. Initiating a Building Partner Capacity Letter of Offer and Acceptance. The DSCA CPD for partner specific BPC authorities or the DSCA Regional Portfolio Director (RPD) for regional and global authorities, as appropriate, will forward a copy of the memorandum of request (MOR) to the IA and identify the allowed Total Case Value (TCV). DSCA (Office of International Operations, Regional Execution Directorate (IOPS) will create a customer request in DSAMS, with the exception of the Ukraine Security Assistance Initiative (USAI) program, the IA will retain responsibility of creating the customer request. The IA will initiate the case in DSAMS using a unique case identifier and provide the case identifier back to the DSCA CPD or RPD. The case identifier is a 6-position alpha-numeric or alpha-alpha string which includes the program code, the single-position IA code of the DoD component providing the support, and a three-position case designator (e.g. E7-B-UAC). The three-position case designator will be assigned according to the letters used by the IAs to assign case designators found in Figure C5.F6. (Instructions for Preparing an LOA). DSAMS will attach BPC case information and validate the entry of BPC case data. Each program code in DSAMS is associated with Benefitting Partner authorized to receive assistance. If a BPC case benefits more than one Benefitting Partner, the IA will first coordinate this with the DSCA CFD, and there may only be one Benefitting Partner on each line of the case. The Benefitting Partner FMS SSSC, found in Table C4.T2a. and distinct from the BPC code, will be selected by the IA at the line level in DSAMS. Table C15.T3. and Table C15.T3b provides instructions for preparing a BPC case document, to be used with BPC Program data provided in each program in Appendix 8 and the definitions of terms provided in the BPC LOA Information document.

C15.3.5. Line Construction. Each line item on the MOR must be an individual line item on the case, unless the DSCA Office of Primary Responsibility (OPR) (DSCA (Office of International Operations, Regional Execution Directorate (IOPS/REX), and/or Global Capability Development Directorate (IOPS/GCD)) determine it is not appropriate to do so. The notes section will identify the corresponding line on the MOR, if applicable. The purpose is to increase accuracy in program execution reporting and accountability. All SME and MDE must be tracked using the appropriate MASL.

C15.3.5.1. Benefitting Countries. Multiple Benefitting Partners can be included on the same case but may not be included on the same line. A single Benefitting Partner must be listed on a defense article or service line to enable tracking, monitoring, and evaluation of the provided assistance.

C15.3.5.2. Non-descriptive Military Articles and Services List Item. A non-descriptive general MASL may only be used by approved exception from DSCA (IOPS/GCD) and the corresponding case note must provide a complete and detailed listing of all the items purchased to include quantities and National Stock Numbers (NSNs) of items purchased. The case preparer should not use a non-descriptive MASL with only general information contained in the notes.

C15.3.6. Months. For BPC cases, the Months (MOS) field in DSAMS is the period of performance date(s) when services will be performed or the number of months for anticipated delivery of defense articles to the USG (not the Benefitting Partner), calculated from the anticipated or actual case implementation date. See Figure C5.F5. for the MOS definition. The MOS calculation is not to be confused with when items are considered to be delivered to the Benefitting Partner as described in Section C15.5.9.5.

C15.3.7. Delivery to the Benefitting Partner. To the maximum extent practical, defense articles should be delivered to the Benefitting Partner within 120 days of receipt by the USG. The IA must prepare a memorandum explaining the extenuating circumstances and provide an updated execution plan with key performance milestones for all deliveries that exceed the 120-day target and/or occur in the third fiscal year after the first obligation of the program. The updated execution memorandum will be sent to DSCA (IOPS/REX/GCD) and coordinated with DSCA (Office of Business Operations, Financial Policy & Regional Execution Directorate (OBO/FPRE)) for approval before funds may be expended for follow-on services and training activities.

C15.3.8. Pricing. The IA will use DoD Financial Management Regulation (DoD FMR), DoD 7000.14-R, Volume 11A, "Reimbursable Operations," the authorizing legislation for the program, and relevant financial management policy for the appropriation when pricing articles, services and training. The IA must exercise care whenever items and quantities on the LOA change to ensure they do not change or exceed the nature and scope of the congressionally notified program. The quantities and/or value of defense articles and services provided under a BPC program that has been notified to Congress in accordance with its authorizing statute may not increase without the submittal of a re-notification of the relevant BPC program to Congress.

C15.3.8.1. Title 10 Building Partner Capacity Case-Related Manpower Functions and Funding Source Matrix. For Title 10 BPC, the BPC Activity Matrix (BAM) table describes T10 BPC case-related activities/functions and their proper source of funding. The activities/functions listed in Table C9.T2b. under the "T10 BPC Program Support Costs" and "Performing Activity T10 Costs" columns represent indirect costs funded by the DoD Title 10 (T10) 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 "T10 BPC Case Costs" column represents direct costs funded by the DoD T10 appropriated funds made available to support Benefitting Partners 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).

C15.3.8.1.1. FMS Administrative funds are not provided to support the program management of Title 10 BPC programs. DSCA will issue a Funding Authorization Document (FAD) for administrative program support costs associated with the execution of DSCA's Title 10 BPC programs. IAs will work with the Army Budget Office (ABO) to determine the funds distribution mechanism (e.g. Military Interdepartmental Purchase Requests (MIPRs)) for the Counter-Islamic State of Iraq and Levant/Counter-Islamic State of Iraq and Syria Train and Equip Fund (CTEF) programs. DSCA's Operations and Maintenance (O&M) will not be used to support CTEF programs. DSCA will issue FADs to the respective IA procuring organizations to commence executing implemented BPC cases.

C15.3.8.1.2. IAs will be required to report all administrative program support costs monthly and periodically respond to Requests for Information (RFIs) to DSCA and Office of the Under Secretary of Defense (Comptroller) (OUSD(C)) in support of annual programming and budgeting processes. Administrative program support costs for DSCA programs will include all previously funded below-the-line and above-the-line administrative program support costs. IAs’ submissions will be reviewed and approved by the DSCA Program Managers and DSCA (Office of Business Operations (OBO)). IAs must adhere to the OUSD(C) July 13, 2018, budget policy guidance to determine allowable costs for CTEF requirements. CTEF manpower requirements and execution will be reported to the ABO.

C15.3.8.2. Defense Articles. For defense articles which need to be replaced, the price of defense articles utilized to provide reimbursable support to a BPC program authority is the acquisition cost to replace the same item minus the amount of depreciation for the provided defense article adjusted as appropriate for condition and age. For defense articles not to be replaced, the price of defense articles utilized to provide reimbursable support to a BPC program is depreciated value of the provided defense article. See DoD Financial Management Regulation (DoD FMR), Volume 15, Chapter 7.

C15.3.8.3. Defense Working Capital Funded Materiel and Services. The selling price is the Defense Working Capital Fund (DWCF) current standard price. Payments or reimbursements are credited to the DWCF providing the items.

C15.3.8.4. Non-Defense Working Capital Funded Materiel and Services Not to be Replaced. The IA will set the price for these assets at the sum of the most recent actual procurement cost and modifications, or improvements incorporated after production, adjusted for age or condition, plus prorated overhaul cost. Funds collected from the transfer of equipment from DoD stock pursuant to Title 10 BPC, as well as FMF, authorities are not legally authorized to be deposited into the Special Defense Acquisition Fund (SDAF). Proceeds from BPC and FMF-funded transfers of equipment not intended, or unable to be replaced, should be deposited into Miscellaneous Receipts.

C15.3.8.5. Non-Defense Working Capital Funded Materiel and Services to be Replaced. The DoD Budget and Future Years Defense Program (FYDP) must reflect intent to acquire replacements for such assets before they are included on a BPC case. The Funding Authority will make reimbursements equal to the estimated replacement cost, including the contract or production costs of the article, less an adjustment for age and condition of the item being sold. The items can be replaced with "Like Items" or replaced with "Dissimilar or Modified Items."

C15.3.8.6. Nonrecurring Costs. USG appropriated funds will not be used to pay Nonrecurring Costs (NC); therefore, IAs will not apply NC to BPC case documents and will only reflect costs as waived in DSAMS. Cooperatively produced defense articles require third party transfer approval, and a waiver of special NC charges must be requested by the IA from the cooperative partners once the waiver requirement is identified. The Benefitting Partner must agree to pay the NC charges that are not waived within 90 days to satisfy the requirement, or the article must be deleted from the MOR and BPC case. Any Benefitting Partner’s payment of a special NC must be paid directly from the Benefitting Partner’s national funds accounts to the partner/consortium member for which the special NC was established. Any unused appropriated funds must be returned to DSCA immediately for reallocation to other BPC cases.

C15.3.8.7. Special Defense Acquisition Fund. Funds collected from the transfer of equipment from DoD stock pursuant to Title 10 BPC, as well as FMF, authorities are not legally authorized to be deposited into the SDAF. Proceeds from BPC and FMF-funded transfers of equipment not intended, or unable to be replaced, must be deposited into Miscellaneous Receipts.

C15.3.9. Procurement.

C15.3.9.1. Capital Investment Operations and Maintenance Threshold. The annual appropriations legislation for DoD typically prohibits the use of O&M funds to procure an item whose unit cost exceeds a specified threshold. DoD procures such capital investment items for its own inventory using funds appropriated for procurement. However, an O&M expense for procurement of defense articles in support of a BPC program is not subject to the O&M threshold for capital investment items.

C15.3.9.2. Buy American Act.

C15.3.9.2.1. The Buy American Act does not apply to BPC procurements.

C15.3.10. Training. All training requirements must be captured in the MOR. See Section C15.3.4. to ensure that projected training schedules comply with period of performance and funds availability restrictions applicable to the BPC program.

C15.3.10.1. Building Partner Capacity Training

C15.3.10.1.1. Building Partner Capacity Case Training Lines. BPC cases containing materiel may also include training lines. When training is included on a materiel case, it should be specifically in support of the purchase of U.S. defense articles and services. Each Military Department (MILDEP) should coordinate and execute those training lines, to include both USG and contractor-provided training, with the appropriate training field activities according to MILDEP procedures. There shall be only one Benefitting Partner on each BPC Title 10 BPC case. Training shall be a standalone training line on the case using the FMS training MASL and may not be included in other service or materiel lines. A medical line will be included on BPC training cases. The IAs will have separate training pipelines using the appropriate MASL to distinguish between continental United States (CONUS) and outside the contiguous United States (OCONUS) training. The IA must establish training tracks in DSAMS prior to the case being sent to the DSCA (IOPS/GEX/CWD) for countersignature. Training should be in a programmed or scheduled status when the case is sent forward.

C15.3.10.1.2. Building Partner Capacity Training Grant. Training managed and executed by the appropriate training field activities will go on a BPC training grants (applies to and T10 333, USAI, MSI). There shall be only one Benefitting Partner on each Title 10 BPC Training Grant. BPC training grants are developed in the DSAMS-BPC. The IA will develop training tracks for each line in DSAMS. Upon completion of the BPC training grant and receipt of funds into the IA’s financial system, the grant will implement. BPC training grants do not get routed to DSCA (CWD) for final phase development and are not reviewed by the IA or DSCA reviewers. BPC training grants will be approved by Department of State, Bureau of Political and Military Affairs (State (PM)) based on the daily State List Report provided by DSCA (IOPS/GEX/CWD).

C15.3.10.2. The IA will enter all BPC training in the DSAMS Training Module, including training provided by Mobile Training Teams (MTTs). See Section C10.22.5. for specific guidance on BPC MTTs. The SCO will record all Benefitting Partner student information in the Security Assistance Network/Security Cooperation – Training Management System (SANweb/SC-TMS) prior to the training start date. See Section C10.4.2. The SCO shall update the SANweb/SC-TMS with student information for every student that participated upon conclusion of an MTT.

C15.3.10.3. The IA will apply Rate D for tuition-based training funded with DoD BPC program funds (see DoD FMR Volume 15, Chapter 7). For training requiring dedicated resources, the full cost of the training will be applied (excluding military pay and civilian unfunded retirement).

C15.3.10.4. Travel and Living Allowances for Training. See Section C10.13.3. The IA may include appropriate Travel and Living Allowance (TLA) charges on the MOR and the final BPC case in accordance with the authorized living allowance rates in Table C10.T12. and does not need to seek approval from DSCA (Office of International Operations, Regional Execution Directorate (IOPS/REX)).

C15.3.10.5. Medical Expenses. BPC funded programs fall under a number of authorities. If the scope of the applicable BPC authority allows DoD to provide a defense service, the BPC program may provide funding for emergency and non-elective health care necessary to either return the International Military Students (IMSs) to training or return the IMS from the training location to their destination. The provision of medical support is addressed by including a medical line on the case, regardless of whether the training is at a contractor-owned facility or at a military installation. The details of medical coverage are delineated on the IMS’s Invitational Travel Order (ITO). The case may require an amendment to increase funds on the line if incurred medical expenses exceed the original estimate. The IA will contact the DSCA CFD to discuss funds availability or possible prior year adjustment. See Section C10.9. for additional healthcare coverage policy guidance.

C15.3.10.6. Dependent Travel. Dependents are not authorized to accompany the IMS to BPC training unless they meet the requirements outlined in Section C10.6.10.5. Travel with Dependents and Section C10.12. Dependents.

C15.3.11. Services. Non-training services will be priced using the DoD FMR Volume 11A. See Section C15.3.9.

C15.3.11.1. Surcharges and Accessorial Charges. The IA must not apply the FMS Administrative surcharge, Contract Administration Services surcharge, and accessorial charges to Title 10-funded BPC LOAs.

C15.3.11.2. Services Under a Continuing Resolution Appropriation. When developing a BPC case document that will be funded under a Continuing Resolution (CR) appropriation that lapses before the end of the fiscal year, the IA will specify the required period of performance for services in accordance with the general fiscal law limitations associated with the appropriation. The applicable CR will specify the availability period of the funds appropriated pursuant to a CR. Typically, the period of availability of funds provided by the CR will be limited to the duration of the enacted CR. The IA must also ensure that the BPC case is for activity that is allowed by the CR. For example, CRs generally prohibit the initiation of projects for which appropriations, funds, or authority were not available during the preceding fiscal year. The IA will provide written notification via e-mail or memo to the service provider to clarify that obligations are subject to the availability of funds. See Section C15.3.17.3.1. for a discussion of funds obligation under a CR appropriation.

C15.3.11.3. Project Orders. IAs may use project orders as a mechanism to fund services in support of a program. Project orders must be obligated before the appropriation’s period of availability for obligation expires. See DoD FMR Volume 11A, Chapter 2. Project orders must not extend beyond the appropriation’s funds cancellation date.

C15.3.11.3.1. Commencement of Work. A bona fide need must exist in the fiscal year in which the project order is issued. Work to be performed must be expected to begin within a reasonable timeframe after acceptance. A project order should not be issued if work is contingent upon a future event.

C15.3.11.3.2. Cancellation. The project order must be cancelled if work does not begin before January 1 of the fiscal year after the appropriation expiration date.

C15.3.12. Transportation. The IA will plan for transportation of BPC case materiel from the earliest stages of case development in order to ensure delivery of materiel and services meets the Requesting Authority’s Required Delivery Date (RDD). Estimated costs for transportation will be calculated and tracked to allow for adequate resources if transportation costs will be paid by a separate transportation case, since multiple organizations will be requesting use of these transportation funds.

C15.3.12.1. Above-the-line Transportation. Funds for shipping defense articles that are placed as above-the-line transportation costs, such as Arms, Ammunition, & Explosives (AA&E), are obligated when transportation is contracted or when a manifest is received from the United States Transportation Command (USTRANSCOM). A manifest is issued after the materiel has been loaded on the DTS conveyance. The IA will confirm with the SCO that shipment delivery information provided in the MOR (e.g. MAPAC, POD, and RDD) is complete and valid. The IA will then submit the shipping data to the Procuring Agency, along with any other specific transportation guidance. When the BPC materiel is ready for shipment, the DoD entity responsible for ensuring DTS transportation will enter the shipment requirements into the DTS booking system.

C15.3.12.2. Transportation Charges. For all Title 10 transportation that is not part of the applicable procurement contract to meet the case requirement, a separate program-wide transportation case will fund transportation of materiel to the Benefitting Partner. The IA will include a case note that indicates transportation will be billed via a separate case and provide, if possible, that case’s identifier. This information will also be entered when the Transportation Bill Code (TBC) is selected.

C15.3.12.2.1. Transportation and PC&H program-wide support case(s) must have a correlating line note describing the costs included for each line. BPC cases for defense articles and defense services providing the primary BPC assistance that will have a transportation related charge must include the "Transportation Charges Not Included" case note. Transportation planning must occur during case development.

C15.3.12.2.2. PC&H charges on Title 10 BPC cases will be funded with an annual Title 10 BPC transportation account if the PC&H is not already included in the transportation costs. PC&H costs incurred through stock items will be paid with the IA’s annual transportation account.

C15.3.12.2.3. IAs must submit Title 10 PC&H estimates for the next fiscal year to the DSCA (Office of International Operations (IOPS)) Program Manager through the Title 10 BPC cost collection process due annually in September.

C15.3.12.2.4. IAs that do not have an established transportation account will receive funding via a direct cite MIPR for Title 10 PC&H services performed during the fiscal year.

C15.3.12.2.5. IAs must provide Title 10 PC&H estimates to the Army Case Manager via the U.S. Army Security Assistance Command-Washington Field Office in coordination with their submission to the DSCA (IOPS/GCD) program manager.

C15.3.12.2.6. IAs will return all residual funds from the MIPR back to the Army Case Manager by June 1 of the fiscal year in which the funds’ period of availability expires.

C15.3.12.3. Consolidation Point Transportation. The IA may consolidate materiel at a CONUS consolidation point in order to manage multiple shipments of materiel to a Benefitting Partner. The IA will include a case note on the BPC case document to describe the intended consolidation and cite the separate case (if known) that will provide funds for materiel handling services at the consolidation point and onward shipment into the Benefitting Partner. Equipment or materiel that does not ship through a consolidation point may include, but is not limited to, oversized rolling stock/equipment, oversized/heavy engineering equipment, arms, ammunition, and explosives.

C15.3.12.4. Transportation to a Consolidation Point. The case must show the delivery address of the final destination, even if the equipment goes to a consolidation point first. The IA will use DTC 2/7 on the BPC LOA to indicate a consolidation point is being used.

C15.3.12.5. Transportation from a Consolidation Point. For the final leg of transportation from the consolidation point to the Benefitting Partner, the IA will use DTC 7 or 9. Please refer to Appendix 8 and for BPC Authority and Program specific guidance.

C15.3.12.6. Premium Transportation. An above-the line direct charge that must be used during the period of availability is added to the case if a line item will be transported via a Special Assigned Airlift Mission (SAAM) or other premium transportation.

C15.3.12.6.1. Prime Vendor Transportation. The IAs are required to use DTS to ship BPC materiel unless USTRANSCOM provides a waiver. For system sales and more complex acquisition and sustainment efforts, the IA may request approval from DSCA (Office of Strategy, Plans, and Policy (SPP)) for the prime vendor to transport and make delivery of materiel to the partner’s designated location and this request must be submitted prior to case development. DSCA approval is required when the prime vendor is transporting USG titled materiel. DSCA (SPP/EPA) will review the request and coordinate with the United States Maritime Administration (MARAD) and USTRANSCOM to determine if the mandatory use of DTS for BPC shipments will be waived. The prime vendor’s contract price will include a cost for transportation and Offer Release Code (ORC) A and DTC 4 will be cited against the line. The IA will include a note in the BPC LOA to describe the transportation and delivery arrangements.

C15.3.13. Engineering Services and Construction. BPC programs cannot be used for engineering services or construction to accomplish infrastructure projects within a Benefitting Partner that are in support of U.S. forces unless there is specific statutory authorization. Such projects are governed by the laws regarding military construction, 10 U.S.C. 2801, and implementing regulations and guidance are provided by the geographic Combatant Command (CCMD).

C15.3.14. Months of Service. The allowable MOS for services under a BPC case is based on the period of availability of the appropriation that funds the effort as well as the time limitations provided in the authorizing legislation and the DoD FMR. All BPC funds must be obligated during the period of availability for obligation regardless of the MOS for services. The IA will make its best effort to perform services in compliance with the Requesting Authority's required delivery date (RDD) or MOS. The MOS must be defined in accordance with the timeframe necessary to execute the requirements and must not automatically extend to the maximum legally permissible MOS.

C15.3.15. Contractor Services. Contractor services are categorized as either severable or non-severable, according to the definition provided in DoD FMR, Volume 3, Chapter 8, section 080304.B. Each category of service is subject to separate MOS restrictions with which the IA must comply to avoid Anti-Deficiency Act (31 U.S.C. 1341) violations.

C15.3.15.1. Severable Services. Severable contractor services are generally performed within the year of funds availability. However, under 10 U.S.C. 3133, the MOS for severable contract services entered into by a DoD component that begins during the period of funds availability may extend into the subsequent year provided the contract period does not exceed a total of 12 months (absent other legal authority). Option years on a contract are treated as new contracts. Training on tactics, techniques, and procedures, or maintenance is generally considered severable training.

C15.3.15.1.1. 10 U.S.C. 3133 does not limit the ability to use Cross-Fiscal Year (CFY) authority under Section 333. 10 U.S.C. 3133 and the Section 333. CFY authority both provide exceptions to the bona fide needs rule. There is no limitation on the use of Section 333. CFY authority simply because 10 U.S.C. 3133 would also apply. Therefore, DoD may use CFY authority for contractor-provided training under Section 333. to perform severable services for up to 36 months, irrespective of the 12-month limit on severable service contracts under 10 U.S.C. 3133, as long as funds are appropriately obligated during their period of availability.

C15.3.15.2. Non-severable Services. Non-severable services are those performed via contractors that produce a single or unified outcome. Non-severable contractor services will be funded entirely at the time the contract is awarded, though the MOS may extend across fiscal years. Contractor-provided new equipment familiarization training and installation at a basic level are considered non-severable services when necessary for the installation or operation of the actual equipment. This includes basic quality assurance testing to ensure that the items are in operating order. All non-severable services must be completed prior to funds cancellation. An example of non-severable services follows: a Benefitting Partner under a FY 20XX appropriation is to receive radios and antennas with a lead-time allowing deliveries three years later, so FY 20XX funds can be used to place basic initial training and antenna installation on contract so that the basic training and installation can be conducted when the equipment is delivered (as long as the funds have not yet cancelled).

C15.3.15.3. Government-sourced Services. For reimbursable support provided pursuant to the Economy Act, USG personnel (civilian and/or military) must cease program-related activities when the period of availability for obligation of the appropriation ends. Project Order—and-DWCF-funded USG personnel may continue program-related activities beyond the period of availability for obligation of the appropriation in accordance with timelines allowed in DoD FMR Vol 11A. Neither of these exceptions prolong the period of availability for obligation of the funds. The funds must still be obligated within the period of availability.

C15.3.16. Notes. Notes on a BPC case do not represent the terms and conditions of an international agreement, but they do communicate case information necessary for proper handling of the case and case materiel by USG entities. Appendix 6 lists standard notes applicable to BPC cases. The IA is responsible for adding non-standard notes, as required. Line-item description notes for training, service, or technical assistance lines will include an explanation of the category of service (severable or non-severable) along with the expected period of performance for services. BPC training grants will not contain case notes.

C15.3.17. Defense Security Cooperation Agency Processing of the Building Partner Capacity Case.

C15.3.17.1. Submittal to the Defense Security Cooperation Agency Case Writing and Development Division. The IA will submit the draft BPC materiel case documents to DSCA (IOPS/GEX/CWD) as early as possible to allow adequate time for final stage processing and review before obligation of funds and return of excess funds for other uses. A BPC case package must include the MOR and the final training and equipment list. At the latest, the IA should provide Military Approval (MILAP) in DSAMS 60 days before the BPC program funds expire for new obligation.

C15.3.17.2. Building Partner Capacity Wait milestone. The "BPC Wait" milestone stops the BPC case processing clock and it is automatically added to the case when the case is moved into review status. This milestone does not apply to BPC training grants cases.

C15.3.17.3. Fund Source and Availability, and Amount. DSCA (IOPS/GEX/CWD) will place the case into “Proposed” status after DSCA, the IA and State approve as written, ensuring the “Fund Source and Availability” case note cites the current appropriation authority and fund source. Obligation and expenditure of the case funds are subject to the terms, conditions, and expiration date specified in the appropriation. Case funds must be obligated prior to the end of their period of availability or must be removed from the case and returned to DSCA for appropriate action. The fund source and availability, and amount note is not added to BPC training grants.

C15.3.17.3.1. Continuing Resolution Appropriations. Congress may pass a CR appropriation that partially funds BPC programs for a specific time period, which will be less than the full fiscal year. The funds will generally not be available for use if the CR is not extended or replaced by a subsequent appropriation if a BPC case is offered using a CR appropriation and the case funds are not subsequently obligated prior to the CR expiration. Case activity and funds obligation would proceed after CR extension or when a subsequent appropriation replace the CR. The CR appropriation cited in the “Fund Source and Availability” case note will need to be revised prior to case closure, subject to the terms and conditions of the new appropriation. Any funds not yet obligated become no longer available if a CR extension or appropriation is not approved before the CR expiration; USG services (not funded by Project Order or DWCF) must cease.

C15.4.1. General. Implementation of a Building Partner Capacity (BPC) case begins when the case is approved in DSAMS and the appropriate DoD Component receives the funds. The Implementing Agency (IA) will record a Funds Received (FUNDRCVD) milestone confirming they received the funds in their accounting system. The case status changes to Implemented. If DSCA Comptroller rejects the case, the case will be returned to Write (“W”) status.

C15.4.2. United States Government Signature. An authorized representative of the IA will post the Military Signature (MILSGN) milestone on BPC materiel cases in DSAMS representing the U.S. Signature. This is the only signature applied to the BPC Letter of Offer and Acceptance (LOA), as the DSCA counter signature data is updated by DSAMS.

C15.4.3. Funding. Before proceeding to implementation, DSCA confirms funds are available and initiates the funds distribution process.

C15.4.3.1. Department of Defense Appropriations. After a BPC case is approved, DSCA disburses funds to the DoD Component via FAD. The DoD Component receives funds into their financial system and distributes funds through their internal funds distribution processes. There will be one FAD per case. Line level funding requirements will be documented in the FAD notes. The DoD Component is expected to load funds in accordance with the FAD.

C15.4.4. Implementation. After BPC LOA development is completed and routed for approval as required, the BPC LOA will implement once the steps below are complete.

C15.4.4.1. The BPC case is implemented in DSAMS when the IA records the FUNRCVD Milestone in DSAMS.

C15.5.1. General. DSCA (Office of Business Operations (OBO)) will provide Title 10 (T10) Building Partner Capacity (BPC) funds via Funding Authorization Document (FAD) to the Implementing Agencies (IAs) to implement the case. The IA is then responsible for obligating the funds and executing the case to meet Requesting Authority timelines. BPC program funds are subject to applicable USG procurement law and policy. The USG is responsible for transporting BPC materiel to the Benefitting Partner according to delivery requirements provided by the Security Cooperation Organization (SCO). The SCO or authorized USG representative will transfer custody to the Benefitting Partner after materiel has been inventoried and when the Benefitting Partner is prepared to maintain and employ the materiel.

C15.5.2. Funds Obligation. The IA will begin case execution, funds obligation and funds reconciliation immediately following case implementation. The IA will obligate both DoD and non-DoD appropriations in accordance with the rules described in the DoD Financial Management Regulation (DoD FMR), Volume 3, Chapter 8, prior to the date upon which the funds availability ends, as provided in Table AP8.T3. Security Assistance and Security Cooperation Programs. The IA and the procuring organization must recognize the fund’s expiring and canceling timeline. See Section C15.3.12.2. for specific guidance on handling BPC case funds offered under a Continuing Resolution (CR) Appropriation. IA-managed funds transfers for training via Military Interdepartmental Purchase Requests (MIPRs), should include the following information: case information, funds availability, and the period of performance in accordance with the BPC case. The IA will also request to obligate the funds within 3 months from MIPR acceptance, but no later than the end of the period of availability for obligation of the appropriation.

C15.5.2.1. Obligation Against Materiel and Services. Requesting Authorities will submit information and documentation to the IA Procuring Agency as early as possible to ensure funds are obligated prior to expiration, allowing sufficient time for that agency to submit requisitions or award contracts. IAs will enter requisitions in the appropriate logistics management system within 30 days of case implementation. Funding for items that require basic contracting action should be obligated within six months of case implementation. Items requiring long lead contracting action are flagged and reviewed during quarterly program reviews with the IAs. The processing time required to obligate funds on contract will depend on the complexity of the requirement. The IA will ensure that participants in the sourcing, procurement, and acquisition processes are informed of the BPC case financial timeline. Instructions will be included in funding documents to ensure that all relevant offices are aware of the expiring or cancelling nature of the case funds. An example of such language follows:

C15.5.2.1.1. Funding Civilian Pay. BPC program case funds may be used to reimburse civilian pay expenses consistent with period of performance restrictions (See Section C15.3.14.) and in accordance with the DoD FMR. DSCA does not direct the use of a particular funds’ obligation vehicle. Each IA should verify with its financial management organization(s) which document is most appropriate to use as a valid obligating document. See Section C15.3.2. concerning funding civilian pay with Title 10 BPC funds.

C15.5.3. Notification to the Security Cooperation Organization. The IA will notify the SCO and provide a copy of the implemented case once appropriated funds are obligated. The SCO or authorized USG representative may begin preparations for receipt of the materiel and services, as needed.

C15.5.3.1. Sharing Case Information with Benefitting Partners. The SCO may share the BPC case and supporting documents, with the exception of protected information, with Benefitting Partner Ministry of Defense (MoD) representatives, as appropriate (BPC cases with multiple Benefitting Partners will not normally be shared). SCOs should clearly communicate to Benefitting Partner representatives that information regarding the schedule of shipments or training events does not constitute a commitment by the United States. An implemented case and valid obligations are not guarantees that the USG will provide military assistance. Changes to the program during execution, such as changes to contracts, or diversions or redirections to other Benefitting Partners may occur. Assistance to a Benefitting Partner is not guaranteed until the final delivery of the materiel and title is transferred, or services are provided.

C15.5.4. Funds Expenditure. BPC case funds should be fully expended in accordance with Military Department (MILDEP) procedures once obligated to allow sufficient time to process and pay final invoices and enable timely case closure. Funds that cancel are no longer available for any purpose. The “Fund Source and Availability” case note on the BPC case will specify the date by which funds must be expended. See individual BPC program guidance in the Table AP8.T3. Security Assistance and Security Cooperation Programs for funds expiration and cancellation dates. The IA will maintain oversight of deliverables and coordinate with the Defense Contract Management Agency (DCMA) to ensure inspection, acceptance, and timely processing of contractor invoices. See the Federal Acquisition Regulation (FAR) 32.905.

C15.5.4.1. Reporting. The DoD Components execution systems will directly feed into the applicable security cooperation Advana dashboards to centralize BPC execution tracking and reporting.

C15.5.4.2. Review and Reconciliation. The DoD FMR, Volume 3, Chapter 8, requires a Dormant Account Review-Quarterly (DAR-Q) of commitments, obligations, accounts payable, and accounts receivable. The IA will review and reconcile financial documentation regularly to identify and correct errors. Performing these reviews ensures the full use of appropriated funds before they expire and ensures that open obligations are valid and liquidated before the cancellation of the appropriation. This should be a collaborative effort among multiple IA offices, to include resource management, accounting, program management, contracting, acquisition, and logistics functions. Both case and financial data should be reconciled throughout the execution phase to facilitate timely case closure. Price increases and other activities may occur on the BPC case after availability of funds. Fiscal law allows upward obligation adjustments only in select situations. Increases in scope, quantity increases on defined order lines, or extending the period of performance are not usually allowed. The DSCA CFD will review any price and quantity increase or extension of the period of performance at the line or sub-line level. For adjustments to obligations incurred on a BPC case, funds from the original fiscal year appropriation should be used if available; current year funds will only be used if there are no original year funds available. See DoD FMR Volume 3, Chapter 10.

C15.5.5. Transportation and Delivery of Materiel and Services. The IA has overall responsibility for transportation and delivery of BPC case materiel and services. The IA will make its best efforts to deliver BPC equipment and training/services within the period of performance for case implementation or prior to the RDD. The IA will ensure that transportation requirements and schedules are communicated appropriately to the procuring activity and the SCO. The SCO will provide shipping documents (e.g. bills of lading or manifests) to the Benefitting Partner representative to allow for arrangement of materiel off-load, customs clearance, security, staging, storage, onward movement, and integration. The IA will confirm that the SCO or other USG representative and Benefitting Partner are able to receive the materiel and that proper arrangements have been made to move the cargo to a secure location before delivery.

C15.5.5.1. Continental United States Shipments.

C15.5.5.1.1. Small Parcel Package Direct from Vendor. Use of Delivery Term Code (DTC) 4 (shipping by the vendor) is rare and requires DSCA (Office of Business Operations, Financial Policy & Regional Execution Directorate (OBO/FPRE)) to approve an exception to policy prior to developing the BPC case. The IA should consult DSCA (Office of International Operations, Global Capability Development Directorate (IOPS/GCD)) or the CPD prior to case development.

C15.5.5.1.2. Arms, Ammunition, and Explosives. Arms, Ammunition, and Explosives (AA&E) cannot be sent via the Joint Consolidation Point (JCP) (see Section C15.5.5.1.3.) and must be shipped directly to the Benefitting Partner. All AA&E items should use an executable DTC for the MILDEP. DTC options may include but are not limited to DTC 7 (delivery to an inland point in the recipient partner) or DTC 9 (delivery to an overseas POD).

Joint Consolidation Point. Equipment and materiel from a continental United States (CONUS) vendor can be consolidated at a JCP. Typically, the JCP is used for small items that need to be collected from various vendors to enhance the efficiency of transportation and delivery coordination. The JCP is not typically used for large items that may be more appropriately sent direct from the vendors. The JCP does not handle weapons, ammunition, or certain types of hazardous materiel. IAs that are unsure whether use of the JCP is appropriate for an item should coordinate with DSCA Program Managers prior to shipments. DTC 2 and 7 will be indicated on the equipment lines on the case with associated notes when a consolidation point is used. A consolidation point team will contact the SCO to coordinate shipment within 30-45 days prior to arrange transportation and confirm the delivery address or MAPAC, POD, RDD and any special delivery requirements. The coordination will provide the SCO proper time to prepare the transfer of equipment to the appropriate Benefitting Partner unit and/or representative prior to delivery or make arrangements for another USG representative to perform these functions. The current year transportation case will support the consolidation of equipment and materiel, as well as onward movement of equipment to the Benefitting Partner. IAs will calculate and track estimated costs for transportation to allow for adequate request of resources.

C15.5.5.2. Outside of the Continental United States Shipments. The vendor is responsible for outside the continental United States (OCONUS)-sourced materiel movement. All packaging, crating, export license, marking, certification, and/or documentation pertaining to hazardous materiel must be included in the contract. OCONUS-sourced procurements do not ship through a consolidation point. The vendor is also responsible for providing the IA with detailed documentation, including but not limited to export license, packing lists, detailed invoices, and photos (if deemed necessary). MILDEPs will use the applicable and executable DTC with associated case notes.

C15.5.6. Tax Exoneration. U.S. grant assistance efforts must be free from any foreign sales tax, Value Added Tax (VAT), customs fees, or other similar fees imposed by the Benefitting Partner. Absent an Under Secretary of Defense for Policy (USD(P)) approved exception, DoD may not use U.S. funds to pay a foreign tax directly charged to the USG, or indirectly charged to the USG through a USG contractor assisting the Benefitting Partner, in accordance with DoD Instruction (DoDI) 5100.64, “DoD Foreign Tax Relief Program” and the Deputy Secretary of Defense memorandum, “Update to the DoD Foreign Tax Relief Policy,” dated September 29, 2017. Absent an approved USD(P) exception, an IA’s or geographic Combatant Command’s (CCMD’s) may also not use U.S. funds to indirectly pay a foreign tax imposed on a DoD contractor by the assisted Benefitting Partner if such payment is not allowed by DoDI 5100.64 or the referenced supplemental memo. With some partners, there may be an existing bi-lateral agreement between the United States and the Benefitting Partner that provides tax relief for U.S. assistance to the Benefitting Partner. With some partner’s the Benefitting Partner’s own domestic law may also unilaterally exempt foreign assistance from taxation. Either of these methods are preferred over partner offering to reimburse any collected tax on the U.S. grant assistance. A tax reimbursement process is disadvantageous to the U.S. government because by the time funds are provided, the period of availability funds are typically expired which precludes DoD’s use of the returned funds for another security cooperation effort. To seek a DoD exception to use funds for taxes imposed by the Benefitting Partner, the geographic CCMD must seek clearance to proceed through DSCA Office of International Operations and provide a compelling justification as to why payment of the foreign tax is in U.S. national security interests.

C15.5.7. Training Support Equipment/Services. Training provided to the Benefitting Partner will not have a DTC code annotated on the BPC case. If equipment is needed by the trainers, a separate line on the BPC case will be developed to provide the proper funding to move the training support equipment. See Chapter 10 for other training information, to include requesting Security Cooperation Education Training/Mobile Training Teams.

C15.5.8. Materiel Accountability. The IA will enter serial numbers, Vehicle Identification Numbers (VINs), and partner of origin (for those defense articles that have them) into the Security Cooperation Management Suite (SCMS) in the Security Cooperation Information Portal (SCIP) prior to the materiel shipment. For radios with serial numbered components the IA should enter the serial number of the receiver and transmitter. SCMS should be referenced during case planning to identify the status of already-programmed BPC cases by partner. See Section C13.3.5.1.

C15.5.9. Materiel Preparation. The IA and SCO should use the Enhanced Freight Tracking System (EFTS) in SCIP to track transportation of all BPC materiel. Deliveries by vendors will not likely appear in EFTS. The IA will ensure that specific requirements for materiel packing and shipping are properly addressed, and that necessary plans have been made for Enhanced End-Use Monitoring (EEUM), and classified or sensitive materiel. This duty cannot be delegated by the SCO to another USG representative.

C15.5.9.1. Title Transfer. Typically, BPC defense articles and defense services are transported to the Benefitting Partner as USG-owned materiel and delivered to the SCO (or USG representative) in the Benefitting Partner. The defense articles will remain USG-owned materiel until they pass through the Benefitting Partner Customs and are physically transferred to the Benefitting Partner. The International Traffic in Arms Regulations (ITAR), 22 Code of Federal Regulations (C.F.R.) 126.4(a)(4), requires the USG to obtain appropriate end-use and retransfer assurances from the partner before transferring a defense article or defense service to the partner for a DoD security cooperation (SC) activity. See Section C15.1.7.3. Contractors that execute BPC cases are required to comply with the ITAR in their dealings with the USG and Benefitting Partner.

C15.5.9.2. Advance Notice of Delivery. The IAs must provide advance notice to the SCO, geographic CCMD, and DSCA Office of Primary Responsibility (OPR) for that program approximately 45 days prior to materiel delivery. The SCO will provide the Benefitting Partner MoD (or other government ministry, as appropriate) with a written notice of the pending delivery. The notice should state what materiel or service is arriving for the Benefitting Partner, when (if known) and where the materiel will be delivered, and which unit is to receive the materiel or service. The materiel shipment information should be attached to the notice, which may be used by the Benefitting Partner to facilitate Customs processing. See Figure C15.F2.

C15.5.9.3. Office of Security Cooperation Delivery Process for Joint Consolidation Point Commercial Air Deliveries.

C15.5.9.3.1. Advanced Notification. The SCO is responsible for confirming to the United States Army Security Assistance Command (USASAC) Global Train and Equip Delivery Team (GTE DT): the USG point of contact for the shipment; the MAPAC; the physical address for delivery; the materiel handling requirements at airport and destination; and of any blackout dates including holidays, weekends, and hours of arrival once the 45-day notification is provided. The SCO will provide a copy to DSCA and upload the Transfer and Receipt Documentation and Annex A to SCIP to create a central point of reference.

C15.5.9.3.2. 1149 Packet. The GTE DT will provide the SCO (or USG representative) an 1149 Packet, which will include a list of EEUM articles' serial numbers, a Handover Receipt Annex A (Delivery Report), and a tentative delivery date 25 days prior to delivery.

C15.5.9.3.3. Carrier and Shipping Agent. The GTE DT will provide the SCO (or USG representative) carrier and shipping agent contact information, to include name, phone number, and email address 18-20 days prior to delivery.

C15.5.9.3.4. Local Coordination. The SCO will coordinate with Airport/Police Security, Benefitting Partner customs agents, contracted shipping agents, and Benefitting Partner military leadership for sufficient ground handling, transportation, and security from airport to the final destination, and storage, as applicable 18-20 days prior to delivery. In addition, the SCO will coordinate with Persistent Engagement Teams for Support as applicable/available, confirm Secure Storage for End-Use Monitoring (EUM) articles, and coordinate for any delivery assist team.

C15.5.9.3.5. Final Documentation. The GTE DT will provide an airway bill, invoice, and packing list to the SCO or USG representative 14-18 days prior to delivery. The GTE DT will provide a delivery marking brief to the SCO, including EUM skid's tamper proof seal serial number(s) seven days prior to delivery.

C15.5.9.3.6. Delivery Movement Notification. GTE DT will confirm shipment pickup at the JCP (Shipment en route) two to seven days prior to delivery. The Carrier/Shipping Agent will confirm aircraft departure one to two days prior to delivery. The Carrier/Shipping Agent will confirm aircraft arrival to SCO and GTE DT.

C15.5.9.3.7. Security Cooperation Organization Delivery Day Requirements. The SCO (or USG representative) will sign Form 1907 “Signature and Tally Record,” upon skid count verification on the day of arrival. The SCO (or USG representative) will verify each skid has no obvious signs of tampering. The SCO (or USG representative) will confirm EUM skid's tamper seal is intact and serial number cross checks with advanced documentation. The SCO (or USG representative) will provide for continuous monitoring of materiel from airport to the final destination. The SCO (or USG representative) will ensure that EUM articles are delivered and secured per EUM requirements.

C15.5.9.3.8. Receipt Inventory. The SCO (or USG representative) will conduct an inventory of all articles received in the shipment on the day of arrival or the next day. The SCO (or USG representative) will reconfirm skid count and that each skid has no obvious signs of tampering. The SCO will reconfirm EUM skid's tamper seal is intact and serial number is correct. The SCO (or USG representative) will conduct joint serial number inventory of EUM articles against advanced shipping documentation with Benefitting Partner recipient unit representative, as applicable. The SCO (or USG representative) will conduct joint inventory with Benefitting Partner recipient unit representative of remaining articles. Verification of skid contents by external documentation is sufficient unless there is evidence of tampering or damage. For damaged or tamper evident skids, the SCO (or USG representative) will conduct a 100% inventory of articles, then photograph and document any damage, discrepancies, or evidence of tampering.

C15.5.9.3.9. Record of Inventory. The SCO will provide a record of inventory and discrepancies to the GTE DT no later than seven days after delivery. This will include any photographic documentation.

C15.5.9.3.10. Delivery Survey. The SCO will provide the GTE DT Delivery Survey no later than seven days after delivery.

C15.5.9.3.11. Handover of Delivered Articles. The SCO will transfer articles to Benefitting Partner and provide Transfer and Receipt Documentation with Annex A within 30 days after delivery. At a minimum, one copy is provided to the Benefitting Partner, one copy is provided to the SCO Office, and one copy is provided to GTE DT. The SCO is still responsible for ensuring the Transfer and Receipt Documentation is provided even if another USG representative transferred the articles to the Benefitting Partner.

C15.5.9.4. Arrival. BPC case materiel will be delivered to the Mark For address on the contract (or text address) available at the time of booking. The SCO will provide the IA with any corrections to this information, if a change is possible. BPC materiel will normally be processed through Customs by Benefitting Partner officials upon arrival and before being released into the SCO’s custody. The Benefitting Partner Customs Office approves release of materiel to the SCO's custody in advance of Customs procedures if that will facilitate processing. The SCO will enter the receipt date of BPC materiel in the EFTS even if another USG representative transferred the materiel and report the receipt date to the DSCA OPR and the DSCA OPR will enter the receipt date in the EFTS. Charges related to detention and demurrage will be funded with current year BPC program funds, either as a separate line on the BPC case or under a Transportation case. Contact DSCA OPR for resolution options if there are concerns or issues over storage costs and/or customs fees.

C15.5.9.5. Receipt Reporting. The SCO will sign Form 1907 “Signature and Tally Record” upon skid count verification on the day of arrival. The SCO will verify each skid has no obvious signs of tampering. SCOs must report the delivery and receipt of BPC materiel within 30 days. The SCO is encouraged to hold a handover ceremony to publicly reinforce the deepening bilateral relationship between the United States and the Benefitting Partner. Items are considered delivered when the materiel and title is transferred to a representative of the Benefitting Partner. The SCO will provide an explanatory memo to the IA, along with the unsigned document and attachments if the Benefitting Partner representative does not sign the Transfer and Receipt document. The IA then posts the shipment in their systems. The SCO and the Benefitting Partner will track and conduct EUM inspections as required by the DoD Golden Sentry program and guidance in Chapter 8, maintaining appropriate records of EEUM items within the SCIP EUM community. Table C15.T4. provides options for reporting shipment receipts. At least one of the methods listed in Table C15.T4. should be used to report receipt.

C15.5.9.6. Joint Inventory. The SCO (or authorized USG representative) and the Benefitting Partner representative will conduct a joint materiel inventory using the shipper’s manifest while the materiel remains in the custody of the SCO. The SCO will inform the IA of any materiel suspected to be missing, to verify that it has not been included in a subsequent delivery. The initial operator training is responsible for providing initial equipment testing. The SCO will advise the Benefitting Partner that the Benefitting Partner has a limited-time window to notify the SCO if equipment is not functioning as intended.

C15.5.9.7. Discrepancy Reporting. The SCO will report on a Transportation Discrepancy Report (TDR) BPC materiel that is confirmed to be missing or damaged during transportation.

C15.5.9.8. Title Transfer Procedures. Equipment, services, and training may only be transferred to the Benefitting Partner unit that was included in the Congressional Notification (CN). No equipment, services, or training may be received by a unit that was not specifically listed on the CN.

C15.5.9.9. Transfer and Receipt of Materiel. The SCO will retain title and custody of the BPC equipment until the Benefitting Partner is ready to receive the equipment. A Transfer and Receipt document, or a comparable form established for this purpose, is used to record the title transfer and serves as a reminder to the Benefitting Partner of their obligations regarding the use, disposition, and security of the defense articles and services in accordance with the FAA Section 505 Agreement. See Figure C15.F3.

C15.5.9.10. Preparation. The SCO will prepare the Transfer and Receipt document.

C15.5.9.10.1. The format for Transfer and Receipt document in Figure C15.F3. will not be used for Coalition Readiness Support Program (CRSP) equipment because CRSP equipment is loaned to the Benefitting Partner and title is not transferred. See Section CRSP.2. The documentation to record the transfer of physical custody of the loaned equipment will be accomplished but the content of this transfer document would be different than Figure C15.F3.

C15.5.9.11. Attachments. The SCO will attach a materiel inventory list to the Transfer and Receipt document, similar in content and format to the template provided in Figure C15.F4.

C15.5.9.12. Presentation. The SCO (or authorized USG representative) and the Benefitting Partner representative will sign the Transfer and Receipt document, acknowledging that the Benefitting Partner is assuming title, custody, and responsibility for the items or services being transferred when appropriate or when defense services are ready to begin. An authorized USG representative that presented the articles and services to the Benefitting Partner must provide the SCO with the Transfer and Receipt document.

C15.5.9.13. Documentation. The SCO will provide a copy of the signed Transfer and Receipt document within 30 days of receipt of materiel to IA and DSCA Regional Portfolio Director (RPD) and will input the document into SCIP. The SCO will provide an explanatory memo to the IA, along with the unsigned document and attachments when the Benefitting Partner representative does not sign the Transfer and Receipt document. The SCO and the Benefitting Partner will track and conduct EUM inspections as required by the DoD Golden Sentry program and guidance in Chapter 8, maintaining appropriate records of EEUM items within the SCIP EUM community.

C15.6.1. General. Changes to a BPC case requires an amendment and must be accomplished in DSAMS. Amendments to BPC cases do not require Benefitting Partner acceptance or signature, therefore these changes will be accomplished via a case amendment. Modifications will no longer be used for cases. All actions identified in Section C6.7.2. apply to BPC amendments. Once placed in proposed status and funding transferred as applicable, the amendment will be implemented. For Emergency Implementation, See Section C6.1.2.

C15.6.1.1. Prior Year Adjustments. Prior Year Adjustment (PYA) requests are submitted to make monetary or Months (MOS) adjustments to BPC cases funded with prior year appropriations. The funds are no longer available for incurring new obligations when an appropriation expires but are still available for recording and adjusting valid obligations for such purposes. Expired funds are available for upward adjustments only in specific situations. The funds cancel and are no longer available for any purpose five years after the funds expire. The Implementing Agency (IA) will submit a PYA Request Package to the DSCA Country Finance Director (CFD), identifying the amount and/or period of performance changes required, the reason for the additional funds or time, and supporting documentation. A determination by the IA Contracting Officer and an opinion by the IA’s legal counsel are required if additional funds for a procurement action are required.

C15.6.1.1.1. Prior Year Adjustment Submission for Use of Expired Year Funds. IAs are required to submit PYA Requests to use expired funds for: increases to BPC case Total Case Value (TCV); adjustments within TCV (e.g. increasing one line and decreasing another); Defense Working Capital Fund (DWCF) fact-of-life price increases; and MOS, where applicable. The IA will submit a PYA Request package (see Figure C15.F5.) to the DSCA CFD, identifying the amount and/or MOS changes required, the reason for the additional funds or time, and supporting documentation. The IA Contracting Officer determination and the opinion of the IA’s legal counsel will be included when funds are needed for procurement actions. IAs will submit the PYA Request package to the DSCA CFD PYA Request mailbox (dsca.ncr.dbo.mbx.prior-year-requests@mail.mil).

C15.6.1.1.1.1. PYA requests for MOS extensions are not required when:

C15.6.1.1.1.1.1. The change in MOS for the provision of defense articles is being extended due to delays in delivery;

C15.6.1.1.1.1.2. The change in MOS for the provision of defense services by USG personnel, funded under the Economy Act, is being extended to a date that is within the period of availability for obligation of the appropriation that is financing the service; or

C15.6.1.1.1.1.3. The change in MOS for the provision of defense services, utilizing Cross Fiscal Year or Full Operational Capability authority by USG personnel funded by DWCF or Project Orders, is being extended to a date that is within the allowable period for the applicable authority.

C15.6.1.1.2. Prior Year Adjustment Submission for Use of Current Year Funds. IAs are required to submit PYA requests to use current year funds when necessary to make payments against a cancelled-year appropriation or against an expired-year appropriation where insufficient funds are available in that appropriation to support the requested payment, among other scenarios. IAs will complete the PYA Request Form with all supporting documentation and submit to the DSCA CFD PYA Request mailbox (dsca.ncr.dbo.mbx.prior-year-requests@mail.mil).

C15.6.1.1.2.1. The use of a current year case to fund a PYA request should take into consideration the following:

C15.6.1.1.2.1.1. The line item(s) loaded in the Defense Security Assistance Management System (DSAMS). Line items should reflect the Military Articles and Services List (MASL) for articles and services procured in the cancelled-year funded case.

C15.6.1.1.2.1.2. Quantities should default to 'XX', and periods of performance should end no later than the fund’s expiration date.

C15.6.1.1.2.2. Each line item added to the current-year funded case should link to the old case using the USE OF CURRENT YEAR FUNDS case note provided by the CFD PYA Team. The case writer should insert a place holder for said case note until the approved USE OF CURRENT YEAR FUNDS note is provided.

C15.6.1.1.2.3. IAs must coordinate the use of an Amendment with the BPC Program Manager and the DSCA CFD to assess the feasibility of the request, taking into consideration assessorial surcharges and the current year program's budget allocation.

C15.6.1.1.3. Source of Funds. The original source of funds will be used, if available, to fund the PYA request. Current year funds that are available for the same purpose as the expired funds must be used to fund the requirement if the original source is not available. Current year funds should also be used to fund PYA requests involving cancelled appropriations. The DSCA CFD will determine an appropriate fund source and coordinate approval with DSCA (Office of Business Operations, Comptroller Directorate (OBO/CMP)) and the DSCA (Front Office, Office of the General Counsel (FO/OGC)). A Congressional Notification (CN) may be required in certain instances, (i.e., when assistance exceeds the previous total program value) prior to authorizing and releasing the funds.

C15.6.1.1.4. Prior Year Adjustment Approval. Approval from DSCA is required for all PYA requests. DSCA (OBO/CMP) approves all funding requests which increase the TCV of the BPC Letter of Offer and Acceptance (LOA), and DSCA (Office of Business Operations, Financial Policy & Regional Execution Directorate (OBO/FPRE)) Deputy Assistant Director approves all adjustment requests within the TCV of the LOA and Months extensions. DSCA (FO/OGC) and DSCA (OBO/FPRE) also review PYA submissions and provide concurrence.

C15.6.2. Redirection or Diversion. Articles that are procured but not yet transferred to the Benefitting Partner and require redirection or diversion to a different Benefitting Partner than originally notified to Congress require DSCA notification to the Office of the Under Secretary of Defense for Policy (OUSD(P)) with DSCA also providing recommended options to hold and redirect the equipment and services. The Under Secretary of Defense for Policy (USD(P)) will coordinate with the Department of State (State) prior to USD(P) notifying Congress with the intent to redirect the equipment. USD(P) provides DSCA with direction and will obtain the necessary Congressional approval. DSCA will provide the IA instructions with the development of a new case and new Benefitting Partner, and any additional required information, referencing the original case identifier (ID) in the notes, with the Congressional redirect reference. A note must be added to the original implemented case referencing the new LOA, identifying the new case ID, the new Benefitting Partner, and the line numbers of all redirected items.

C15.6.3. Coordinated Amendments. There may be occasions when two or more BPC cases need to be amended in order move funds between the cases to reallocate funding to best meet requirements. While concurrent modifications are not allowed for BPC cases, coordinated amendments can be processed for select Title 10 BPC authorities (please see each specific program in Appendix 8 for security cooperation (SC) authority specific guidance to confirm applicability) so long as the amendment reducing value is implemented first followed by an amendment to receive the funds. IAs will coordinate with DSCA OBO/CMP, OBO/FPRE and the cognizant BPC Portfolio Manager (PM) to verify the case documents do not exceed CN thresholds.

C15.7.1. General. The Implementing Agency (IA) will expend funds or reduce case value before the end of the cancelling year of the funds, generally the fifth year after the funds expire for new obligation, or other statutorily authorized period. DSCA requires that Building Partner Capacity (BPC) cases funded with expiring/cancelling funds be closed by the IA no later than July 31st of the cancelling year, which allows time for residual funds to be redirected or returned before the deadline. IAs must ensure that vendors have submitted all invoices and that all outstanding obligations have been paid in full prior to July 31st. The IA will update the Estimated Closure Date milestone in the Defense Security Assistance Management System (DSAMS), if appropriate, and begin closure of a BPC case as soon as the case is supply service complete. Chapter 16 and Appendix 7, Reconciliation and Closure Guide (RCG) provide additional information on case reconciliation and closure.

C15.7.2. Closure Facilitation. Each IA will submit contact information for their Closure Facilitator to DSCA (OBO/FPRE) no later than 15 months prior to funds cancellation, and the Closure Facilitator will submit a list of contracts with case funds that will cancel the following fiscal year to DSCA (OBO/FPRE). The Closure Facilitator is expected to lead the stakeholders within the respective IA and ensure timely closure of BPC cases. The closure facilitator will direct stakeholders to review cancelling BPC cases as listed in the Security Cooperation Management Suite (SCMS) and identify any case at risk of not closing by July 31st of the cancelling year. The Closure Facilitator will also identify to DSCA (Office of Business Operations (OBO)) valid, unliquidated obligations subject to closure/cancellation to determine whether funds are available for future adjustments or payments against such obligations. See DoD Financial Management Regulation (DoD FMR), Volume 3, Chapter 10, 100201.D.

C15.7.3. Reporting Case Financial Status. The IA will input closure status/issues for all cases funded with cancelling funds on the form at Figure C15.F6., available in SCMS (Input Case Option). DSCA (OBO) will download this information monthly beginning in November, bi-weekly beginning in July, and weekly beginning in September during the fiscal year of cancellation.

C15.7.3.1. Reconciling Balances. The IA and DFAS-IN will ensure accounting balances have been reconciled, and all performance and disbursements have been properly reported. BPC cases that have associated open contracts can be closed if no unliquidated obligations exist on those contracts. IAs will prepare the closure certificate and any other necessary supporting documentation in accordance with established procedures. Closure certificates will be sent electronically to DFAS-IN.

C15.7.3.2. Closing a Case With Open Contracts. A BPC case may be closed even when an underlying contract remains open as long as the contract lines pertaining to the BPC case are closed and there are no unliquidated obligations.

C15.7.4. Closure in the Defense Information Finance System. DFAS-IN will review the closure certificate and perform actions to close the BPC LOA document in Defense Integrated Financial System (DIFS). DFAS-IN should close cases containing no inhibitors within 30 days of receipt of the closure certificate and process the “C1” closure transaction. When DFAS-IN closes the case in DIFS, DIFS sends a transaction to the Military Department (MILDEP) execution systems, Centralized Integrated System - International Logistics (CISIL), Management Information System - International Logistics (MISIL), Security Assistance Management Information System (SAMIS) or Case Management Control System (CMCS) to close the case in those systems. The systems send a transaction to update the status in DSAMS to Closed when the closure transaction is processed. IAs can review closure information by referring to MILDEP systems or to the Security Cooperation Information Portal (SCIP).

C15.7.5. Financial Activity After Funds Cancel.

C15.7.5.1. Adding Funds to an Open Case. The IA must contact the Country Finance Director in DSCA (OBO/FPRE) if additional funds are required on a case which has canceled funds. A currently available appropriation may be approved by DSCA (OBO) to pay this requirement if specific conditions are met. The total of all payments from the current appropriation must not exceed the amount specified in DoD FMR, Volume 3, Chapter 10, 100201.F. Refer to Section C15.6.1.1. for submitting Prior Year Adjustment (PYA) requests.

C15.7.5.2. Reopening a Closed Case. It will be necessary for an IA to reopen a BPC case once closed if there is financial activity that impacts the closed case. The IA will send a request to DSCA (OBO/FPRE) to reopen the case, with sufficient justification, for review and approval to either apply a credit or use current year funds if a case needs to be reopened.