DEFENSE SECURITY COOPERATION AGENCY  2800 DEFENSE PENTAGON  WASHINGTON, D.C. 20301-2800	8/25/2009

MEMORANDUM FOR :

DEPUTY ASSISTANT SECRETARY (BUDGET MANAGEMENT & EXECUTION)
ATTN: SAF/FMBMS,
(MS. VALERIE KIMBALL)
DEPARTMENT OF THE AIR FORCE

SUBJECT

Nonrecurring Cost (NC) Recoupment Charge - AMRAAM Missile AIM-120C7 Guidance Section, DSCA Policy Memo 09-39

The attached Finding, signed by the Director, Defense Security Cooperation Agency (DSCA), approves a nonrecurring cost (NC) recoupment pro rata charge for the sale, coproduction, or licensed production of the items shown on the Finding table.

The NC charges listed in the Finding will be included in the next update of Appendix 1 of the automated version of the Security Assistance Management Manual (SAMM) found on the DSCA Web Page.

Department of Defense (DoD) NC recoupment charges are required to be reimbursed to the DoD within 30 days following delivery or purchaser acceptance (whichever comes first) of each item sold or produced; and all recoupments will be recorded under DSCA(Q) 1112 Report. In accordance with the Arms Export Control Act, any country requesting a waiver of NC charges must request the waiver in writing prior to finalization of the purchase, if it is to be approved.

The AIM-120C7 missile is 90 percent common with all previous models of the AIM-120 missile. The guidance section of the AMRAAM AIM-120C7 missile comprises 85 percent of the nonrecurring investment. The Air Force provided data that shows a common pool non-recurring investment to the AIM-120 and its sub-assemblies totaling $2,644,830,000; and additional investments unique to the AIM-120C7 and its sub-assemblies of $545,900,000. Based on the commonality with other models, the quantity of USG procured units and FMS procured units (NC waived and/or collected), no more than $1,602,851,303 may be additionally recouped. Regardless of model, once investment and recoupment totals are equal, the Air Force must submit a request to remove the pro-rata charge from all common pool models.

The point of contact for additional information is Ms. Susan Kidd at (703) 604-6625, e-mail: susan.kidd.ctr@dsca.mil, or Ms. June Squire at (703) 601-3833, e-mail: june.squire.ctr@dsca.mil.

Jeanne L. Farmer
Principal Director
Programs

ATTACHMENT : 
As stated

CC :

Orig & cc
DSCA Chron
DSCA PGM/BPC
DSCA STR/POL
DSCA DBO/FPS

Department of the Air Force
Deputy Assistant Secretary (Budget Management & Execution)
Attn: SAF/FMBMS, (Ms. Valerie Kimball)
1130 Air Force Pentagon
Washington, DC 20330-1130