Superseded
This policy memo has been superseded by DSCA 16-73.
 | DEFENSE SECURITY COOPERATION AGENCY | 3/8/2005 |
MEMORANDUM FOR :
SEE DISTRIBUTION
SUBJECT :
Initial Deposit for Cases Funded with FMS Credit (Non-Repayable) and/or MAP Merger (DSCA 05-09) [SAMM E-Change 28]
REFERENCE :
- DSCA Memorandum 1-07943/99, dated June 21, 1999
- Referenced memorandum established the policy that initial deposit for new cases financed with FMS Credit (non-repayable) would be equal to the Estimated Total Costs of the Letter of Offer and Acceptance. This memorandum rescinds that policy and updates the Security Assistance Management Manual (SAMM).
SAMM Paragraph C9.9.1.1. is replaced in its entirety with the following:
C9.9.1.1. Payment Schedule Requirement. A payment schedule is developed for each case unless the Term of Sale is "Cash With Acceptance," or the case is fully funded with FMS Credit (Non-Repayable) and/or MAP Merger, the total case value is less than $5M, and the country is not authorized cash flow financing. In these instances, the Initial Deposit covers the entire case value. The following paragraphs provide criteria for developing payment schedules.
SAMM Table C9. T10 is amended as follows:
Table C9.T10. Initial Deposit Requirements
Condition | Initial Deposit Amount* |
|---|---|
Delivery of the defense article or served is within 90 days of LOA acceptance The Term of Sale is "Case With Acceptance." | Full case value |
Total performance is anticipated to be complete before DFAS Denver ca bill and collect additional payments. The Term of Sale is "Cash With Acceptance." | Full case value |
Cash sale from procurement when the purchaser is not authorized Dependable Undertaking | Full case value |
Case is financed wholly with "FMS Credit (Non-Repayable)" or "MAP Merger,: and Case value is less than $5,000,000 and Country is not authorized cash flow financing. | Full case value |
Delivery of the defense article or service is longer than 90 days after LOA acceptance. | Dollar value associated with performance until a quarterly payment can be made plus half of the total Administrative Surcharge. |
No performance Scheduled of the case and no contractual actions offer during the period prior to the first quarterly payment | Half of the total Administrative Surcharge |
When items are placed on contract before the first quarterly payment and no SBLC applies | Half of the total Administrative Surcharge; plus that portion of TL requires if the contract is terminated during the period covered by the Initial Deposit; plus contractor holdback. |
If the case is partially funded by FMS Credit (Non-Repayable) and/or MAP Merger Funds (except when cash flow financing is approved) the deposit should be at least the amount of the FMS Credit (Non-Repayable) and/or MAP Merger Funding. | |
SAMM Paragraphs C9.9.3.1. and C9.9.3.2. are replaced as follows:
C9.9.3.1. Payment Schedule Revision Format for Amendments. Amendments use the payment schedule format in Table C9.T11. When either the Term of Sale is "Cash With Acceptance," or the case is fully funded with FMS Credit (Non-Repayable) and/or MAP Merger, the total cash value is less than $5M, and cash flow financing is not authorized, the Amount Due with Amendment Acceptance will equal the increase in case value.
C9.9.3.2. Payment Schedule Revision Format for Modification. Modifications use the payment schedule format in Table C9. T12. When either the Term of Sales is "Cash With Acceptance," or the case is fully funded with FMS Credit (Non-Repayable) and/or MAP Merger, the total cash value is less than $5M, and cash flow financing is not authorized, the next quarterly payment due will equal the increase in case value.
This change will be included in the automated version of the SAMM found on the DSCA Web Page as SAMM E-Change 28. If you have any questions concerning this change please contact DSCA/BUSOPS-FPS points of contact Jan Rakickas, 303-676-6172, e-mail Jan.Rakickas@dfas.mil, or Candy Donaldson, 303-676-5905, e-mail Candy.Donaldson@dfas.mil.
Keith B. Webster
Director
Business Operations/Comptroller
DISTRIBUTION :
DEPUTY ASSISTANT SECRETARY OF THE ARMY
FOR DEFENSE EXPORTS AND COOPERATION
DEPARTMENT OF THE ARMY
ATTN: SAAL-NP
DIRECTOR, NAVY INTERNATIONAL PROGRAMS OFFICE
DEPARTMENT OF THE NAVY
DEPUTY UNDER SECRETARY OF THE AIR FORCE
(INTERNATIONAL AFFAIRS)
DEPARTMENT OF THE AIR FORCE
DIRECTOR, DEFENSE LOGISTICS AGENCY
DIRECTOR, NATIONAL GEOSPATIAL- INTELLIGENCE AGENCY
DIRECTOR, DEFENSE THREAT REDUCTION AGENCY
DIRECTOR, DEFENSE REUTILIZATION AND MARKETING SERVICE
DIRECTOR, DEFENSE CONTRACT MANAGEMENT AGENCY
DIRECTOR, DEFENSE INFORMATION SYSTEMS AGENCY
DIRECTOR, DEFENSE LOGISTICS INFORMATION SERVICE
DEPUTY DIRECTOR FOR INFORMATION ASSURANCE,
NATIONAL SECURITY AGENCY
DIRECTOR FOR SECURITY ASSISTANCE,
DEFENSE FINANCE AND ACCOUNTING SERVICE - DENVER CENTER
CC :
USASAC
SATFA TRADOC
NAVICP
AFSAC
DISAM
STATE/PM-RSAT