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

10/13/2022

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 :

Defense Security Cooperation Agency Policy Memorandum 22-30, Department of Defense Appropriated Building Partner Capacity Interim Solution Packing, Crating, and Handling Direct Charges [SAMM E-Change 578]

REFERENCE :

1. DSCA, Department of Defense Appropriated Building Partner Capacity Accounting Interim Solution, Policy Memo 20-47, September 29, 2020
2. DSCA, Clarification to Department of Defense Appropriated Building Partner Capacity Accounting Interim Solution, Policy Memo 20-86, January 29, 2021

As part of the Defense Security Cooperation Agency (DSCA) Building Partner Capacity (BPC) Interim Solution (reference (a)), this policy memorandum instructs U.S. Implementing Agencies (IAs) how to charge and be compensated for Packing, Crating, and Handling (PC&H) activities in support of Title 10 (T10) BPC cases.

PC&H, as outlined in the DoD Financial Management Regulation volume 15, chapter 7, 4.1, includes the costs incurred at DoD facilities for labor, materials, or services in removing requisitioned articles from storage locations, preparing them for shipment from the storage or distribution points, and processing necessary materiel release confirmation documents.

Beginning October 1, 2022, fiscal year (FY) 2023, all PC&H charges for T10 BPC cases implemented on or after August 14, 2020, in accordance with reference (a) and (b), will be funded through the annual BPC transportation allocation, if PC&H costs are not already included in the transportation costs for a given BPC case based upon the programs requirements. PC&H costs incurred through procurement are typically included in the unit cost of the equipment however, procurement items that do not include PC&H in the unit cost will have the PC&H costs paid through the IA's annual T10 BPC transportation account. PC&H costs incurred through stock items will be paid with the IA's annual T10 BPC transportation allocation (e.g. funds transferred to the Navy managed transportation account for PC&H activities provided by the Navy). For T10 BPC cases implemented prior to August 14, 2020, IAs should refer to the guidance in reference (a) and (b), which outline the requirements for amendments and modifications to below-the-line indirect charges for these existing cases.

For IAs that do not have an established T10 BPC transportation allocation, the Army will provide funding from the Army transportation case via a direct cite Military Interdepartmental Purchase Request (MIPR) for PC&H services performed during the FY. In order to ensure funds are included in each T10 BPC program's Congressional Notification and that funds are made available on the Army case at the beginning of the FY, IAs must submit their T10 PC&H estimates for the next FY to the DSCA Office of International Operations (IOPS) program manager through the T10 BPC cost collection process due annually in September. Additional guidance will be published in the annual Comptroller memo, "FY 20XX DSCA T10 BPC Cost Collection Guidance." A more detailed schedule will be sent to IAs in June of each FY.

In addition to the submission to the DSCA IOPS program manager, IAs utilizing the Army transportation case must also provide their PC&H estimates to the Army case manager via the U.S. Army Security Assistance Command-Washington Field Office. IAs are to return all residual funds from the MIPR back to the Army case manager by June 1 of the FY in which the funds' period of availability expires. Residual funds will either be reallocated and obligated for PC&H or transportation activities for another T10 BPC program, or returned to DSCA prior to the end of the FY. In the event a PC&H charge is received after residual funds have been returned, the IA should notify the DSCA program manager for guidance on how to obtain currently available funds to cover the charges.

Should you have questions concerning this memorandum, please contact my action officers in Financial Policy & Regional Execution Directorate, Financial Policy Division: Mr. Lucas Rose, lucas.j.rose1.civ@mail.mil, (202) 853-5693; and Ms. Jennifer Robey, jennifer.e.robey.civ@mail.mil, (703) 692-1329.

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

ATTACHMENT :
Security Assistance Management Manual E-Change 578