DEFENSE SECURITY COOPERATION AGENCY  2800 DEFENSE PENTAGON  WASHINGTON, D.C. 20301-2800	11/23/2005

MEMORANDUM FOR :

SEE DISTRIBUTION

SUBJECT :

Importance of FMS Case Delivery Reporting (DSCA 05-29)

DSCA (DBO/ ADM) receives frequent and increasing requests for delivery data from the Congress, FMS customers, Security Assistance Offices, the Government Accountability Office and the DoD Inspector General (DoDIG). DSCA must rely on the integrity of the delivery data provided by the Implementing Agency (IA). Recently. however, DSCA received data showing deliveries to suspended countries, deliveries just reported for shipments that actually occurred several years prior and deliveries reported with significantly erroneous values. To help minimize recurrence of these problems and to promote awareness on the importance of FMS case delivery reporting, the following applies:

• Within 30 days of FMS physical (constructive) delivery, the IA must submit delivery transactions for all major end items that have a unit of issue of "EA" and with the generic codes listed in Table 1 at Attachment A. The IA must report all constructive deliveries to DFAS Denver by the 20th of each month in the C1 I delivery transaction format (see Table 2 at Attachment A). DFAS Denver, in turn, submits this data to DSCA (DBO/ADM) for inclusion in the DSCA 1200 System. This data is used to prepare reports required by Arms Export Control Act (AECA) and are not a part of the formal FMS billing system.
• Delivery data transmitted to the DSCA 1200 System is provided quarterly to the Department of Commerce which, in turn, uses the information for its reports to Congress and publishes the data as part of our Nation's trade figures. FMS sales represent a significant share of International Export data which is closely scrutinized by policy makers, the press, academia, and financial markets. DSCA also provides FMS delivery information to Commerce's Bureau of the Census, various intelligence agencies and Combatant Commands.
• Additionally, the AT&L/DS/Treaty Compliance Office uses FMS delivery data to meet reporting requirements for the Organization for Security and Cooperation in Europe (OSCE) Small Arms & Light Weapon Document, the Wassenaar Arrangement and the United Nations Register. The United States is responsible for annually exchanging information on small arms exports to, and imports from, other OSCE Participating States. The U.S. provides information to other Wassenaar participants on exports to non-Wassenaar countries up to and including the CONFIDENTIAL level of military equipment in eight arms categories (battle tanks; armored combat vehicles; large caliber artillery systems; military aircraft/unmanned aerial vehicles; military and attack helicopters; warships; missiles and missile systems; and small arms and light weapons and man-portable weapons). The U.S. provides information on conventional arms imports, exports, military holdings and procurement through national production and relevant to United Nations Transparency in Armaments.
• In addition, DSCA is often requested by a wide variety of stakeholders to provide sales and deliveries data for item( s) sold to a region or country under the FMS program.
• Attachment B is a flowchart illustrating these key concepts. Attachment C provides detailed FMS procedures on how the physical delivery reporting is processed in the DSCA 1200 system for major end items. This guidance will be incorporated into the DoD 5105.65-M, "FMS Case Reconciliation and Closure Manual (RCM).

In summary, timely and accurate delivery reporting improves the integrity of the data that DSCA provides to the FMS purchasers and other stakeholders. Improved delivery reporting promotes better data integrity, increases our responsiveness to the purchaser's informational needs, enables a more efficient use of DoD resources, and facilitates case reconciliation and case closure. It is imperative that we all work together in order to provide accurate and timely delivery reporting. To that end, and as an outcome of the 25 - 27 May 2005 FMS Case Delivery Reporting Conference, DSCA is working to implement further improvements in the delivery reporting process.

I encourage you to share this with your staff, particularly FMS case managers and others involved in the delivery reporting process.

If you have any questions or need additional information concerning FMS case delivery reporting, please contact Alberta LaBelle, Administration and Management DSCA (DBA/ADM), telephone (703) 601-3738, DSN 329-3738, e-mail: alberta.labelle@dsca.mil.

Keith B. Webster
Director
Business Operations

ATTACHMENT : 
As stated

DISTRIBUTION :

DEPUTY ASSISTANT SECRETARY OF THE ARMY
DEFENSE EXPORTS AND COOPERATION(DASA-DEC)
DEPARTMENT OF THE ARMY

DEPUTY ASSISTANT SECRETARY OF THE NAVY
INTERNATIONAL PROGRAMS (NAVIPO)
DEPARTMENT OF THE NAVY

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

DIRECTOR, DEFENSE LOGISTICS AGENCY

DIRECTOR, NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY

DIRECTOR, DEFENSE THREAT REDUCTIONAGENCY

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

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

CC :

DISAM
USASAC
SATFA TRADOC
NAVICP
NETSAFA
AFSAC
AFSAT