DEFENSE SECURITY COOPERATION AGENCY 2800 DEFENSE PENTAGON WASHINGTON, D.C. 20301-2800	6/1/2001

MEMORANDUM FOR :

DEPUTY UNDER SECRETARY OF THE ARMY
(INTERNATIONAL AFFAIRS)
ATTN: SAUS-IA-DSZ
DEPARTMENT OF THE ARMY

DIRECTOR, NAVY INTERNATIONAL PROGRAMS
DEPARTMENT OF THE NAVY

DEPUTY UNDER SECRETARY OF THE AIR FORCE
(INTERNATIONAL AFFAIRS)
DEPARTMENT OF THE AIR FORCE

DIRECTOR, DEFENSE REUTILIZATION AND
MARKETING SERVICES

DIRECTOR, DEFENSE LOGISTICS AGENCY

DIRECTOR, NATIONAL IMAGERY AND MAPPING AGENCY

DIRECTOR, DEFENSE THREAT REDUCTION AGENCY

DIRECTOR, DEFENSE REUTILIZATION AND MARKETING SERVICE

DIRECTOR, DEFENSE CONTRACTING MANAGEMENT AGENCY

DIRECTOR, DEFENSE INFORMATION SYSTEMS AGENCY

DIRECTOR, DEFENSE LOGISTICS INFORMATION SERVICE

DEPUTY DIRECTOR FOR SECURITY ASSISTANCE,
DEFENSE FINANCE AND ACCOUNTING SERVICE -- DENVER CENTER

SUBJECT :

Interim Security Assistance Management Manual (SAMM) Change - Sole Source Procurement Policy Clarification (DSCA Policy 01-10)

Paragraph 80102 of the SAMM provides guidance on the use of sole source procurement when requested by the purchasing country. Within this section several situations are cited as examples of where sole source procurement may be justified. Two of the examples use the term "particular prime source" to describe the supplier of articles or services with which a country has established a history of procurement.

The USAF has interpreted this language as restricting sole source requests to those involving prime sources or prime vendors, eliminating other procurement sources such as the Original Equipment Manufacturer (OEM).

SAF/IAPX requested that SAMM paragraph 80102.B.1 be revised to eliminate the word "prime" from the phrase "particular prime source" enabling a broader interpretation and more flexibility to our FMS customers.

DSCA recognizes that the SAMM wording needs updating to ensure it does not conflict with the DFARS language and to ensure that the examples are viewed only as samples and not a definitive justification list. The major rewrite of the SAMM will address these larger issues but as an interim step we will revise paragraph 80102.B.1 of the electronic version of the SAMM to delete the word prime in examples c. and e.

This guidance is effective immediately and will be included in the Defense Acquisition Deskbook version of the SAMM as E-Change 25. Questions regarding this matter should be directed to Beth Baker (703) 604-6612 or DSN 664-6612, e-mail: beth.baker@osd.pentagon.mil.

Tome H. Walters, Jr.
Lieutenant General, USAF
Director

CC :

AMSAC-OL-MP