SECURITY ASSISTANCE MANAGEMENT MANUAL (SAMM), E-CHANGE 434

1. Revise C9.9.1.3. as follows:

   C9.9.1.3. Information Needed to Prepare the Payment Schedule. The DSCA (Directorate of Security Assistance (DSA) Case Writing Division (CWD)) will use DSAMS to generate the payment schedule on the LOA. Payment schedules are prepared using pricing estimates and estimated dates for when purchasers will accept the LOA, the LOA will be implemented, requisitions will be initiated, contracts will be awarded, payments will be made to contractors, deliveries will occur, and personnel costs will be incurred. The IA will provide this information in DSAMS at the line level. The CWD will use DSAMS to prepare the payment schedule on the LOA based on line level data or unique payment schedule requirements. DSCA (Directorate of Business Operations (DBO) Country Financial Management (CFM) Division) must approve unique payment schedules, and may request an IA level evaluation of unique payment schedule feasibility when necessary. See Section C9.9.3. of the Security Assistance Management Manual for further guidance on purchaser requested payment schedules.

2. Revise C9.9.3. as follows:

   C9.9.3. Payment Schedule Revisions. Payment schedule updates are necessary to reflect revisions to delivery schedules, scope changes, pricing updates, actual contract award dates, contractor payment milestone revisions, etc. IAs will review payment schedules during the annual case review process to determine if any updates are required. Additionally, IAs will update the payment schedules on LOAs that require Congressional Notification when the primary contract for procurement lines has been awarded. On a quarterly basis, CFM will provide the IAs with a list of the cases for which DSCA recommends updating the payment schedule to reduce early collections. The IA will update all "months" fields (including the Delivery Schedule, when applicable) for each line of the LOA, as well as the pricing for the lines. The CWD will then use the DSAMS payment schedule curves to recalculate the payment schedule. IAs will update payment schedules via case modification or amendment, as appropriate, and in consideration of specific partner requirements. IAs must communicate with the Partner prior to modification and provide the partner a copy of all modifications to inform them of the revised payment schedule and updated delivery schedules. IAs may also update payment schedules as a result of a review (Financial Management Review (FMR), Security Assistance Management Review (SAMR), case review, Program Management Review (PMR), etc.) or if deemed necessary during the modification or amendment process. IAs must clearly communicate unique payment schedule requests in the LOA Checklist, DSAMS Case Remarks, and/or via the Letter of Request for country unique payment schedules. Absent unique payment schedule guidance, CWD will continue to prepare the payment schedule in accordance with defined business processes.

   C9.9.3.1. Criteria to Prioritize LOAs with early Collections.

   LOAs that are less than 75% collected or delivered; LOAs solely funded with partner funds; LOAs with Dependable Undertaking term of sale; LOAs not covered under a Special Billing Arrangement; LOAs that do not include a customer requested payment schedule; Total collections exceed disbursements by at least $1M; LOAs that have been implemented for at least one year; and LOAs that are at least 15% financially executed

3. Revise C9.T2. Row 94 as follows:

   #	Activity
   94	Case level review - provide financial, acquisition and logistical status for each line on the case in an electronic or paper report. A review of the payment schedule is required during the annual case review, updates are made when necessary. There is no in-person meeting associated with this review.

4. Revise C5.4.12. and subsequent section as follows:

   C5.4.12. Pre-Countersignature Meetings for New LOAs for Major Sales. The DSCA Integrated Regional Team (IRT) Country Finance Director (CFD) or the IRT Country Portfolio Director (CPD) will convene a Pre-Countersignature meeting on selected "major sales" when warranted. For the purpose of this paragraph "major sales" include: sales that trigger AECA section 36(b) (22 U.S.C. 2776) ("36(b)") thresholds and proposed sales that represent an increase of more than fifteen percent to the FMS purchaser's current active program. The IA notifies the DSCA IRT CFD at least 15 days prior to submitting LOAs for countersignature that trigger 36(b) thresholds. The DSCA IRT CFD will then determine whether a proposed sale represents an increase of more than fifteen percent to the FMS purchaser's current active program. The DSCA IRT CPD and CFD will decide jointly whether a "major sale" requires a Pre-Countersignature meeting. If one is required, the DSCA IRT CFD will schedule the meeting. Attendees will include DSCA, the IA, and prime contractor representatives, as appropriate. The purpose of the meeting is to review the purchaser requirements and confirm that: proposed unique payment schedule correlates to Terms of Sale and program/delivery plan, if applicable; LOA notes and transportation methods are appropriate; MASLs are correct and that the disclosure and releasability review process was conducted as required, and identify discrepancies in the LOA before it reaches the DSCA Case Writing Division (CWD).

   C5.4.12.1. Documents Required for Pre-Countersignature Meetings (PCM). The IA will provide a complete LOA package to the DSCA PCM secretary five work days prior to a Pre-Countersignature meeting. The LOA package will include the following documents, as applicable: LOR, LOA document, LOA checklist, MTCR approval by Department of State, 36(b) Congressional Notification(s), EDA approval message, MTDS, related waivers (e.g., NC, Yockey Waiver), National Security Agency approval letter, Consortium approval memo, GPS approval memo, unique notes and any other applicable offline information related to the LOA.

5. Revise C6.T6. as follows:

   Review Type	Scope
   Country-Level (e.g., FMR, Tri-Service SAMR)	DSCA-chaired Programmatic/financial and/or logistical orientation Higher-level representation Purchaser: Flag officer or civilian equivalent co-chair Summary case-level visibility Case closure Standardized format Delivery status Excess funds Discrepancy resolution Forum to address FMS policies/procedures and SA/SC issues
   Service-Level (e.g., SAR, CRR)	IA lead component chairs Can be oriented by purchaser ICS or IA General status briefings: major weapon systems, etc. Driven by magnitude of purchaser and/or IA issues Forum to address FMS policies and procedures Purchaser and IA representation driven by agenda topics May involve contractor personnel Line/contract-level detailed review
   Program-Level (e.g., PMR)	IA/PMO-chaired Covers all aspects of a specific weapon system/program/case/cadre of cases Line/contract-level detailed review addressing: Obligations/contract awards Expenditures Deliveries Unused funds Programming of current and future requirements Discrepancy resolution Purchaser represented by head of its PMO Driven by key milestones in program life cycle Often involves contractor personnel
   Case-Level	IA prepares this annually Provide financial, acquisition, and logistical status for each line on the case Review the payment schedule for changes as necessary Provide in an electronic or paper format There is no in-person meeting associated with this review

6. Revise A7.C2.F5 Item Number 26 as follows:

   #

   What to Do (Reconciliation)

   26

   Conduct payment schedule review based on case 'anniversary' implementation date in preparation for an external FMS review, when the case value changes by 10% or more, or as part of the annual case review. Pull various IA and DIFS queries or download system data in order to analyze and validate accuracy of existing payment schedule, or to determine that the payment schedule should be changed. DSCA may request copies of annual case reviews for oversight purposes.