Incorporated

Policy changes from this SAMM E-Change memo have been incorporated into the SAMM.

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

 

11/17/2021

 

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 :

Security Assistance Management Manual (SAMM) Policy Memorandum 21-74, Update to SAMM Section C6.4.10., C15.T1., C15.5.4.8., C15.6.3.1., and C16.4.20. [SAMM E-Change 551]

This memorandum revises and clarifies existing policies as it relates to the applicability of Supply Discrepancy Report (SDR) processing and Building Partner Capacity (BPC) cases. Specifically, this memorandum clarifies that the SDR process, that is available to Foreign Military Sales (FMS) customers and described in Chapter 6 of the SAMM, does not apply to BPC cases. An SDR may not be prepared or submitted by the Security Cooperation Organization for BPC cases and FMS Administrative Funds are not legally viable for reimbursing a foreign partner or addressing deficient case execution as it relates to a BPC program. Last, the 12-month waiting period for closure of FMS cases to facilitate the submittal and resolution of SDRs does not apply to BPC cases.

Effective immediately, the attached E-Change 551 is incorporated into the SAMM.

If you have questions on this memorandum, please contact S. Justin Lee, DSCA/OBO/FPRE/Financial Policy at (703) 697-6587, sungjae.j.lee.civ@mail.mil.

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

ATTACHMENT : 
As stated

Security Assistance Management Manual E-Change 551 
Update to SAMM Section C6.4.10., C15.T1., C15.5.4.8., C15.6.3.1., and C16.4.20.

  1. Update SAMM Section C6.4.10. to:

    C6.4.10. Supply Discrepancies. The USG makes every effort to provide the correct defense article or service in the quantity and quality shown in the LOA. In the event of a discrepancy, the purchaser submits an SDR using Standard Form (SF) 364. Instructions for SF 364 completion, DoD processing timeframes, and responsibilities are located in the Defense Logistics Management System (DLMS) Manual, DLM 4000.25-M, Volume 2, Chapter 17. The SDR process is not applicable to BPC cases.

  2. Update SAMM Section C15.T1. to:

    C15.T1. - Row 7. Prepare and submit Transportation Discrepancy Reports (TDRs) and Supply Discrepancy Reports (SDRs) in accordance with guidance provided to foreign purchasers. See Section C6.4.

  3. Update SAMM Section C15.5.4.8. to:

    C15.5.4.8. BPC materiel that is confirmed to be missing will be reported by the SCO on a Transportation Discrepancy Report (TDR). and items that are damaged or defective will be reported by the SCO on a Supply Discrepancy Report (SDR), in accordance with guidance for FMS purchasers. See Section C6.4.10. If there are any damaged or defective items, a foreign partner's request or IA's desire for additional DoD support to remedy the loss or damage, may be approved and funded with a current year BPC appropriation. Subject to the availability of funds, the BPC program appropriation that funded the original defense article or defense service may be used if the requested additional support falls within the scope of the Congressionally-notified BPC effort. If the foreign partner's or IA's request for assistance falls outside the scope of the originally notified BPC program, then the DoD may consider providing the requested additional support as part of a new BPC program, which must comply with all BPC program prerequisite requirements.

  4. Update SAMM Section C15.6.3.1. to:

    C15.6.3.1. Reconciling Balances. The IA and DFAS-IN will ensure accounting balances have been reconciled and all performance and disbursements have been properly reported. The IA will also ensure approved outstanding Supply Discrepancy Reports (SDRs) applicable to BPC cases have been submitted to Defense Finance and Accounting Service - Indianapolis (DFAS-IN) for action. BPC cases which have associated open contracts can be closed if no unliquidated obligations exist on those contracts. IAs will prepare the closure certificate and any other necessary supporting documentation in accordance with established procedures. Closure certificates will be sent electronically to DFAS-IN.

  5. Add SAMM Section C16.4.20. and renumber existing C16.4.20. (and subsections) as C16.4.21.

    C16.4.20. Closure of BPC cases. BPC cases must be submitted for closure when SSC is posted, as the SDR process is not applicable to BPC cases. If a problem associated with the delivery of material or services is discovered by either the USG or the foreign partner, the IAs should refer to the relevant USG contract. If no contractual remedy is available, or liability does not reside with the contractor, the IAs should contact the DSCA Program Manager to determine the way-forward.