DEFENSE SECURITY COOPERATION AGENCY  2800 DEFENSE PENTAGON  WASHINGTON, D.C. 20301-2800	6/23/2020

MEMORANDUM FOR :

DEPUTY ASSISTANT SECRETARY OF THE ARMY FOR DEFENSE EXPORTS AND COOPERATION
DEPUTY ASSISTANT SECRETARY OF THE NAVY FOR INTERNATIONAL PROGRAMS
DEPUTY UNDER SECRETARY OF THE AIR FORCE FOR INTERNATIONAL AFFAIRS
DIRECTOR, DEFENSE CONTRACT MANAGEMENT AGENCY
DIRECTOR FOR SECURITY ASSISTANCE, DEFENSE FINANCE AND ACCOUNTING SERVICE - INDIANAPOLIS OPERATIONS
DIRECTOR, DEFENSE INFORMATION SYSTEMS AGENCY
DIRECTOR, DEFENSE THREAT REDUCTION AGENCY
DIRECTOR, NATIONAL GEOSPATIAL - INTELLIGENCE AGENCY
DIRECTOR, MISSILE DEFENSE AGENCY
DIRECTOR, DEFENSE LOGISTICS AGENCY
DIRECTOR, DEFENSE LOGISTICS INFORMATION SERVICE
DIRECTOR, DEFENSE LOGISTICS AGENCY DISPOSITION
DEPUTY DIRECTOR FOR INFORMATION ASSURANCE, NATIONAL SECURITY AGENCY

SUBJECT :

Defense Security Assistance Management System (DSAMS) Standard Payment Schedule Update, DSCA Policy 20-22

REFERENCE :

1. Department of Defense (DoD) 7000.14-R, Financial Management Regulation (FMR), Volume 15, Chapter 4, paragraph 0404
2. DSCA Manual 5105.38-M, Security Assistance Management Manual (SAMM), Chapter 9, Section 9
3. DSCA Policy Memo, "Clarification to Standardize use of the Months of Service (MOS) Fields on a Letter of Offer and Agreement (LOA) Document, (DSCA 13-41)," August 9, 2013

As stated in references (a) and (b), payment schedules provide forecasted financial requirements for a Foreign Military Sales (FMS) case and identify the timing and amount of purchaser deposits needed to meet financial requirements. Payment schedules for Letter of Offer and Acceptance (LOA) documents are generated in DSAMS by DSCA (Directorate for Security Assistance (DSA) Case Writing Division (CWD)) during the case writing process and are prepared using inputs provided from the Implementing Agencies (IAs) per Section C9.9.1.3. of the SAMM. As outlined in reference (c), it is imperative for the IAs to accurately estimate the delivery of items on defined order lines, period of performance of services, and requisitioning schedule for blanket order lines.

As part of DSCA's ongoing efforts to improve Security Cooperation processes and procedures, DSCA conducted an in-depth study of the accuracy of standard payment schedules relative to actual expenditure activity. This review was based on foreign partner concerns that the United States Government collects funds too far in advance. DSCA's analysis showed that the projected disbursement amounts for LOA's initial performance periods were often overstated, which may have led to the premature collection of funds. To improve the alignment of FMS case funding requirements to the actual cash need of cases, DSCA created new standard payment schedules.

Effective 30 June 2020, CWD will apply the new payment schedules to all new basic cases entering the writing phase. Payment schedules for Amendments and Modifications will continue to be prepared using the payment schedule contained in their respective basic case. These payment schedule revisions, along with more accurate delivery schedules and requisitioning estimates, should help reduce the over-collection of cases.

If you have questions regarding this policy, please contact Ms. Gloria Kim, DSCA DBO/FPA, gloria.c.kim.civ@mail.mil, (703) 697-8875.

Cara L. Abercrombie
Acting Deputy Director

CC :

AFRICOM
CENTCOM
EUCOM
NORTHCOM
SOUTHCOM
PACOM
TRANSCOM
SOCOM
STATE/PM-RSAT
USASAC
SATFA
USACE
NAVSUP
WSS
NETSAFA
TRADOC
AFSAC
AFSAT
DISCS
MARCOR IP
SCETC
USCG International Affairs (G-CI)