Incorporated
Attachment A is incorporated into Chapter 9..
Attachment B is incorporated into the DoD FMR Vol 15.
Policy changes from this SAMM E-Change (Attachment C) memo have been Incorporated into the SAMM.
DEFENSE SECURITY COOPERATION AGENCY | 7/30/2018 | |
MEMORANDUM FOR :
DEPUTY UNDER SECRETARY OF THE AIR FORCE FOR INTERNATIONAL AFFAIRS
DEPUTY ASSISTANT SECRETARY OF THE ARMY FOR DEFENSE EXPORTS AND COOPERATION
DEPUTY ASSISTANT SECRETARY OF THE NAVY FOR INTERNATIONAL PROGRAMS
DIRECTOR, DEFENSE CONTRACT MANAGEMENT AGENCY
DIRECTOR DEFENSE FINANCE AND ACCOUNTING SERVICE, SECURITY COOPERATION ACCOUNTING
DIRECTOR, DEFENSE LOGISTICS AGENCY
DIRECTOR, DEFENSE LOGISTICS INFORMATION SERVICE
DIRECTOR, DEFENSE THREAT REDUCTION AGENCY
DIRECTOR, MISSILE DEFENSE AGENCY
DIRECTOR, NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY
DEPUTY DIRECTOR FOR INFORMATION ASSURANCE, NATIONAL SECURITY AGENCY
JOINT STRIKE FIGHTER PROGRAM
SUBJECT :
Decrease to Delivery Term Codes Percentage Rates for "Below-the-Line" Transportation on Foreign Military Sales and Building Partnership Capacity cases, Defense Security Cooperation Agency Policy Memo 18-37, E-SAMM 391
REFERENCE :
- DoD 7000.14-R, "Department of Defense Financial Management Regulation," Volume 15, Chapter 3, Paragraph 030202.A, May 2018
- Security Assistance Management Manual, C9.T4a, Table of Delivery Term Codes and Percentages
Based on the results of a recent analysis of Delivery Term Code (DTC) rates and the Foreign Military Sales (FMS) Transportation Accounts, the DTC rates applied to FMS and Building Partnership Capacity (BPC) cases will be reduced to more closely align estimated transportation costs to actual billed amounts. The reduced rates will be applied to articles delivery reported under FMS and BPC cases on or after August 15, 2018. Respective DTC rates on undelivered lines (i.e. no articles have been delivered) must be updated with a Letter of Offer and Acceptance Amendment or Modification within 90 days of this policy's effective date. Additional guidance on applying new rates is provided in the attached implementation instructions.
Changes to the Delivery Term Code rates and Generic Codes as a result of the rate reductions are summarized in the following tables:
Delivery Term Code (DTC) | ||||
---|---|---|---|---|
DTC | Transportation Description | Rate Area* | Current Rate | New Rate |
2 | CONUS inland origin to inland destination | N/A | 3.75% | 2.75% |
5 | CONUS DoD movement for partner | N/A | 3.75% | 2.75% |
7 | Door to Door | 1 | 14.25% | 13.00% |
7 | Door to Door | 2 | 22.25% | 14.75% |
8 | Point of origin to port of exit | N/A | 6.25% | 5.25% |
9 | To Nearest Port | 1 | 11.25% | 10.00% |
9 | To Nearest Port | 2 | 19.25% | 11.75% |
Notes: |
Generic Codes | |||||||
---|---|---|---|---|---|---|---|
L1A | L2B | L1B | L1F | L2C | |||
DTC | Rate Area | Inland CONUS | CONUS Port Handling | Over Ocean Transport | Inland Overseas | Overseas Port Handling | DTC % |
2 | - | 2.75% | - | - | - | - | 2.75% |
5 | - | 2.75% | - | - | - | - | 2.75% |
7 | 1 | 2.75% | 2.50% | 3.75% | 3.00% | 1.00% | 13.00% |
7 | 2 | 2.75% | 2.50% | 5.50% | 3.00% | 1.00% | 14.75% |
8 | - | 2.75% | 2.50% | - | - | - | 5.25% |
9 | 1 | 2.75% | 2.50% | 3.75% | - | 1.00% | 10.00% |
9 | 2 | 2.75% | 2.50% | 5.50% | - | 1.00% | 11.75% |
The Deputy Chief Financial Officer, in the Office of the Under Secretary of Defense (Comptroller) approved these rate reductions on July 9, 2018. The DoD FMR, Volume 15, Chapter 8, Table 8-18, Table 8-27, and Table 8-28 will be updated to reflect the revised generic code percentages, as shown in Attachment B. SAMM, Table C9.T4a, will be updated to reflect the revised DTC percentages, as shown in Attachment C
If you have questions or would like additional information, please contact Ms. Danielle Ayers, DBO/FPA, mary.d.ayers2.civ@mail.mil, (703) 697-9407.
Charles W. Hooper
Lieutenant General, USA
Director
ATTACHMENTS :
As stated
Attachment A
IMPLEMENTATION INSTRUCTIONS
Reduction of DTC Percentage Rates for "Below-the-Line" Transportation on FMS and BPC cases
Scope. The reduced rates are effective with all articles delivery reported under FMS and BPC cases on or after August 15, 2018. New cases or lines submitted to the DSCA Case Writing Division on or after August 15, 2018 (with a MILAP milestone on or after August 15, 2018), must use these new rates to estimate transportation costs for any lines using the applicable DTC rates. Cases already in Write, Review, or Proposed Status prior to August 15, 2018 (MILAP milestone prior to 15 Aug 2018) will continue to process as-is and will not be returned, but should be adjusted on the next LOA modification or amendment.
Within 90 days of this policy's effective date, all cases and case lines with related DTC rates and undelivered lines (i.e. no articles have been delivered) should be amended or modified to update DTC rates.
- Cases "Implemented" prior to 15 Aug 2018.
- Case lines with partial deliveries should be adjusted at closure; or on the next LOA document.
- Case lines with completely undelivered lines (i.e. no articles have been delivered) should be amended or modified to update DTC rates within 90 days of this policy's implementation date.
- Cases in "Development" Status on 15 Aug 2018. The new rates for the appropriate DTCs must be applied to all cases and completely undelivered case lines in development on or after 15 Sep 2018.
- Cases in Write, Review, or Proposed Status prior to 15 Aug 2018 (MILAP milestone prior to 15 Aug 2018). Cases in write, review, or proposed status prior to 15 Aug 2018 will continue to process as-is and will not be returned. However, the rate for completely undelivered lines should be adjusted on the next LOA modification or amendment, initiated within 90 days of policy implementation.
- Cases in "Offer" or "Accepted" Status on 15 Aug 2018. Cases in offer or accepted status on 15 Aug 2018 will continue to process as-is and will not be returned. However, the rate for completely undelivered lines should be adjusted on the next LOA modification or amendment, initiated within 90 days of policy implementation.
Additional Reminders.
- Implementing Agencies (IAs) should update all implemented but undelivered materiel lines to the new rate on the next modification or amendment. This LOA document must be initiated within 90 days of policy implementation. Please pay attention to the delivered transportation and update this Indirect Pricing Code (IPC) on all future modifications and amendments.
- Case preparers should adjust the effective date in the Line Price Estimation window in DSAMS to a date on/after 15 Aug 2018 for any undelivered case/lines established prior to this date in order for DSAMS to pull in the new rate.
- IAs must continue to ensure only transportation-related costs are charged to the FMS Transportation Account. Any costs not covered by the DTC rates must be charge as direct "Above-the-Line" costs and billed appropriately. Examples of these costs include, but are not limited to, charges related to tagging and tracking devices such as Radio Frequency Identification, containers not being returned to the transportation provider, assessment of storage fees for shipments not delivered in a timely manner, additional security requirements, and special off-loading expenses, etc. Special Airlift Assignment Mission (SAAM) flights must be charged as "Above-the-Line" direct costs. These premium transportation costs are not included in DTC transportation rates and therefore, are not billable to the FMS Transportation Accounts.
Attachment B
Changes to DoD FMR, Volume 15, Chapter 8
Table 8-18. Surcharge Matrix
DSC | Contract Administration 1 | PC&H 2 | Admin 3 | Transportation 4,5 Parcel Post 6 |
---|---|---|---|---|
AA | N | N | Y | A |
AB | N | N | Y | A |
AC | N | N | Y | A |
AD | N | N | Y | A |
AE | N | Y | Y | B |
AG | N | Y | Y | B |
AH | N | N | Y | A |
AJ | N | N | Y | A |
AK | N | N | Y | B |
AL | N | N | Y | B |
BA | N | N | Y | N |
BB | Y | N | Y | N |
BC | N | N7 | Y | N7 |
BD | N | N | Y | N |
BE | N | N | Y | N |
BF | N | N | N | N |
BG | N | N | Y | N |
BH | N | N | Y | N |
BK | N | N | Y | N |
BT | N | N | Y | N |
CA | N | N | N | N |
CB | N | N | Y | N |
CC | N | N | Y | N |
CD | N | N | N | N |
DA | N | N | Y | N |
DB | N | N | Y | A |
DC | N | N | Y | B |
DD | N | N | Y | N |
DE | Y | N | Y | N |
DF | N | N | Y | N |
DG | N | N | Y | N |
DJ | N | N | Y | N |
DK | Y | N | Y | N |
DL | N | N | Y | N |
DX | N | N | Y | N |
EE | N | N | Y | N |
EF | N | Y8 | Y | B9 |
EG | N | N | Y | B9 |
EH | N | N | Y | N |
EJ | N | Y | Y | Y |
EK | N | N | Y | N |
EL | N | N | N | N |
EM | N | N | N | N |
EN | N | N | Y | N |
SA | N | N | Y | A |
SB | N | Y | Y | B |
SD | N | Y | Y | B |
SE | N | N | Y | B |
EK | N | N | Y | N |
EL | N | N | N | N |
EM | N | N | N | N |
EN | N | N | Y | N |
SA | N | N | Y | A |
SB | N | Y | Y | B |
SD | N | Y | Y | B |
SE | N | N | Y | B |
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Table 8-27. Transportation Charges Based on Transportation Bill Codes for Inventory Items Shipped by DWCF
TBC | Generic Code | Percentage of Item Priced by Generic Code | Total Percentage |
---|---|---|---|
A | L1D | 0.0 1,2 | 0.0 |
B | L1E | 0.0 1,2 | 0.0 |
C | L1A | 0.0 2 | 7.25, 9.0/7.5,9.5 |
L2B | 2.5 | ||
L1B /L1C 3 | 3.75, 5.50 4/ 4.0, 6.0 5 | ||
L2C | 1.0 | ||
D | N/A | 0.0 | 0.0 |
E | L1A | 0.0 2 | 0.0 |
F | L1A | 0.0 2 | 6.25, 8.0/6.5, 8.5 |
L2B | 2.5 | ||
L1B/L1C 3 | 3.75, 5.50 4/ 4.0, 6.0 5 | ||
G | L1A | 0.0 2 | 10.25, 12.0/10.5, 12.5 |
L2B | 2.5 | ||
L1B/L1C 3 | 3.75, 5.50 4/ 4.0, 6.0 5 | ||
L2C | 1.0 | ||
L1F | 3.0 | ||
H | L1A | 0.0 2 | 2.5 |
L2B | 2.5 | ||
J | L2B | 2.5 | 7.5/9.5 |
L1C | 4.0/6.0 5 | ||
L2C | 1.0 | ||
K | L1C | N/A | Actual amount billed by AMC |
L | As applicable | N/A | Actual amount computed by shipper |
M | L4O | 3.0 1 | 3.0 |
N | L1A | 0.0 2 | 3.0 |
L4O | 3.0 1 | ||
P | L1A | 0.0 2 | 5.75 |
L4O | 3.0 1 | ||
L1A | 2.75 2 | ||
Q | L1A | 0.0 2 | 12.0, 13.75/12.25, 14.25 |
L4O | 3.0 1 | ||
L1A | 2.75 2 | ||
L2B | 2.5 | ||
L1B/L1C 3 | 3.75, 5.50 4/ 4.0, 6.0 5 | ||
TBC | Generic Code | Percentage of Item Priced by Generic Code | Total Percentage |
R | L1A | 0.0 2 | 16.0, 17.75/ 16.25, 18.25 |
L4O | 3.0 1 | ||
L1A | 2.75 2 | ||
L2B | 2.5 | ||
L1B/L1C | 3.75, 5.50 4/ 4.0, 6.0 5 | ||
L2C | 1.0 | ||
L1F | 3.0 | ||
S | L1A | 0.0 2 | 8.25 |
L4O | 3.0 1 | ||
L1A | 2.75 2 | ||
L2B | 2.5 | ||
U | L1D | 0.0 1,2 | 2.5 |
L2B | 2.5 | ||
V | L1D | 0.0 1,2 | 7.25, 9.0/7.5, 9.5 |
L2B | 2.5 | ||
L1B/L1C 3 | 3.75, 5.50 4/ 4.0, 6.0 5 | ||
L2C | 1.0 | ||
W | L1O | N/A | Transportation Cost Look-Up Table |
X | L1D | 0.0 1,2 | 6.25, 8.0/6.5, 8.5 |
L2B | 2.5 | ||
L1B/L1C 3 | 3.75, 5.50 4/ 4.0, 6.0 5 | ||
Y | L1D | 0.0 1,2 | 10.25, 12.0/10.5, 12.5 |
L2B | 2.5 | ||
L1B/L1C 3 | 3.75, 5.50 4/ 4.0, 6.0 5 | ||
L2C | 1.0 | ||
L1F | 3.0 | ||
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Table 8-28. Transportation Charges Based on Transportation Bill Codes for Inventory Items Not Shipped by DWCF
TBC | Generic Code | Percentage of Item Priced by Generic Code | Total Percentage |
---|---|---|---|
TBC | Generic Code | Percentage of Item Priced by Generic Code | Total Percentage |
A | L1D | 3.75 1 | 3.75 |
B | L1E | 3.75 1 | 3.75 |
C | L1A | 2.75 | 10.0, 11.75/ 10.25,12.25 |
L2B | 2.5 | ||
L1B/L1C 2 | 3.75, 5.50 3/ 4.0, 6.0 4 | ||
L2C | 1.0 | ||
D | N/A | 0.0 | 0.0 |
E | L1A | 2.75 | 2.75 |
F | L1A | 2.75 | 9.0, 10.75 /9.25, 11.25 |
L2B | 2.5 | ||
L1B/L1C 2 | 3.75, 5.50 3/ 4.0, 6.0 4 | ||
G | L1A | 2.75 | 13.0, 14.75/13.25, 15.25 |
L2B | 2.5 | ||
L1B/L1C 2 | 3.75, 5.50 3/ 4.0, 6.0 4 | ||
L2C | 1.0 | ||
L1F | 3.0 | ||
H | L1A | 2.75 | 5.25 |
L2B | 2.5 | ||
J | L2B | 2.5 | 7.5/9.5 |
L1C | 4.0/6.0 2 | ||
L2C | 1.0 | ||
K | L1C | N/A | Actual amount billed by AMC |
L | As applicable | N/A | Actual amount computed by shipper |
M | L4O | 3.0 1 | 3.0 |
N | L1A | 2.75 | 5.75 |
L4O | 3.0 1 | ||
P | L1A | 2.755 | 8.5 |
L4O | 3.0 1 | ||
L1A | 2.755 | ||
Q | L1A | 2.755 | 14.75, 16.5/15.0,17.0 |
L4O | 3.0 1 | ||
L1A | 2.755 | ||
L2B | 2.5 | ||
L1B/L1C 2 | 3.75, 5.50 3/ 4.0, 6.0 4 | ||
R | L1A | 2.755 | 18.75, 20.5/19.0, 21.0 |
L4O | 3.0 1 | ||
L1A | 2.755 | ||
L2B | 2.5 | ||
L1B/L1C 2 | 3.75, 5.50 3/ 4.0, 6.0 4 | ||
L2C | 1.0 | ||
L1F | 3.0 | ||
S | L1A | 2.755 | 11.0 |
L4O | 3.0 1 | ||
L1A | 2.755 | ||
L2B | 2.5 | ||
U | L1D | 3.75 1 | 6.25 |
L2B | 2.5 | ||
V | L1D | 3.75 1 | 11.0, 12.75/11.25, 13.25 |
L2B | 2.5 | ||
L1B/L1C 2 | 3.75, 5.50 3/ 4.0, 6.0 4 | ||
L2C | 1.0 | ||
W | L1O | N/A | Transportation Cost Look-Up Table |
X | L1D | 3.75 1 | 10.0, 11.75/10.25, 12.25 |
L2B | 2.5 | ||
L1B/L1C 2 | 3.75, 5.50 3/ 4.0, 6.0 4 | ||
Y | L1D | 3.75 1 | 14.0, 15.75/14.25, 16.25 |
L2B | 2.5 | ||
L1B/L1C 2 | 3.75, 5.50 3/ 4.0, 6.0 4 | ||
L2C | 1.0 | ||
L1F | 3.0 | ||
Z | L1A | 2.75 | (Charge may not exceed $25.00) |
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Attachment C
E-SAMM Change 391
Change SAMM Table C9.T4a. Table of Delivery Term Codes and Percentages to reflect:
Percentages to be used when Shipping from: | |||
---|---|---|---|
# | Delivery Term Codes (DTC) | DWCF | Other than DWCF |
2 | a) Inland origin to inland destination within CONUS/Canada (except Newfoundland and Labrador) | 0.00% | 2.75% |
b) Inland origin to inland destination within a foreign country other than Canada | 0.00% | 2.75% | |
4 | Recipient country is responsible for the cost of CONUS transportation and subsequent arrangement for onward movement or when transportation is provided as a case line such as high flight or special assignment airlift mission (SAAM) | 0.00% | 0.00% |
5 | DoD movement for FMS customer in CONUS/Canada (except Newfoundland and Labrador) | 0.00% | 2.75% |
7 | DoD movement from point of origin to, and including, inland carrier delivery to the specified inland location (includes overseas movement of parcel shipments via the Military Postal Service through APO/FPO channels): |
|
|
a) To Europe, Hawaii, Latin America (Central America and Caribbean Basin), and Mediterranean ports | 10.25% | 13.00% | |
b) To Newfoundland, Labrador, Thule, Iceland, South America (East and West Coasts), Far East, African ports (other than Mediterranean), and Near East | 12.00% | 14.75% | |
8 | DoD movement from point of origin to, and including, unloading, handling, and storage aboard vessel at port of exit | 2.50% | 5.25% |
9 | DoD movement from point of origin to, and including, vessel discharge at the point of discharge: |
|
|
a) To Europe, Hawaii, Latin America (Central America and Caribbean Basin), and Mediterranean port | 7.25% | 10.00% | |
b) To Newfoundland, Labrador, Thule, Iceland, South America (East and West Coasts), Far East, African ports (other than Mediterranean), and Near East | 9.00% | 11.75% | |
Notes:
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