DEFENSE SECURITY COOPERATION AGENCY 2800 DEFENSE PENTAGON WASHINGTON, D.C. 20301-2800

9/8/2021

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 INFORMATION SYSTEMS AGENCY
DIRECTOR, DEFENSE LOGISTICS AGENCY
DIRECTOR, DEFENSE THREAT REDUCTION AGENCY
DIRECTOR, MISSILE DEFENSE AGENCY
DIRECTOR, NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY
DIRECTOR FOR SECURITY ASSISTANCE, DEFENSE FINANCE AND ACCOUNTING SERVICE - INDIANAPOLIS OPERATIONS
DIRECTOR OF CYBERSECURITY DIRECTORATE AND DEPUTY NATIONAL MANAGER FOR NATIONAL SECURITY SYSTEMS, NATIONAL SECURITY AGENCY

SUBJECT :

Immediate Return of Unobligated Afghanistan Security Forces Funds, Defense Security Cooperation Agency (DSCA), DSCA Policy 21-67

REFERENCE :

1. Security Assistance Management Manual (SAMM) C15.T2. BPC Programs and Authorities
2. Clarification of Zero-Dollar Value Lines on Foreign Military Sales (FMS) and Building Partner Capacity (BPC) Cases, DSCA Policy 20-62
3. Guidance Concerning the Reduction of Foreign Military Sales (FMS) and Building Partner Capacity (BPC) Cases FMS Administrative Surcharge to Facilitate Case Closure, DSCA Policy 13-59
4. Prior Year Adjustment Requests for Building Partner Capacity (BPC) Cases, DSCA Policy 19-03
5. Clarification to DSCA Policy on Prior Year Adjustment Requests, DSCA Policy 20-12

This memorandum establishes policy on Building Partner Capacity (BPC) cases funded with Afghanistan Security Forces Funds (ASFF). Effective immediately, the Implementing Agencies (IAs) are directed to identify any close-out activities for ASFF-related BPC cases and return any unobligated funds not required to support close-out activities, and when possible, ensure FY 2020/2021 ASFF funded cases are closed at zero-dollar value. See reference (a) for applicable program code(s).

In accordance with DSCA Policy 20-62 and DSCA Policy 13-59, IAs must close FY 2020/2021 ASFF funded BPC cases that have not incurred obligations at zero-dollar value in an effort to aid the systematic shutdown of the program. A case is not eligible for zero-dollar closure if any, or all, of the case lines have incurred obligations. IAs should not delete case line(s) to reduce cases for zero-dollar closure.

Separately, cases with obligations should be reviewed carefully, line-by-line, to identify any unfulfilled requisitions. No further requisitions should be processed for blanket order lines and the remaining line value returned. Any blanket order lines with unfulfilled requisitions should have those requisitions cancelled and the funds returned as well.

For lines with existing obligations, to include fulfilled requisitions, IAs should continue recording, adjusting, and liquidating valid obligations incurred during the funds' period of availability. If an upward adjustment is needed at the line level, or if there is a need for current year funding due to a case being funded by a canceled or an expired appropriation, IAs must follow the Prior Year Adjustment process in accordance with DSCA Policy 19-03 and 20-12. This applies to all Prior Fiscal Year ASFF.

Guidance on FY 2021/2022 ASFF funded BPC cases, terminating existing ASFF-funded contracts, and to what extent new obligations are permissible is forthcoming.

Finally, and until further guidance is provided, IAs will not process any new procurements or make any new obligations with any Fiscal Year ASFF unless approved by the Afghanistan Resources Oversight Council and DoD Comptroller. The only exceptions to this policy are equitable adjustments, contingent liabilities, transportation expenses to a consolidation point, and storage expenses necessary due to the suspension of delivery of any ASFF funded articles to the Government of Afghanistan. A Customer Advisory is forthcoming to provide direction for requisitions that have been filled but not yet shipped.

If you have questions regarding this memorandum, please contact Trish Manzke, (703) 697-2603, patricia.m.manzke.civ@mail.mil.

J. Aaron Harding
Chief Operating Officer and Chief Financial Officer
Defense Security Cooperation Agency