Attachment 1 Security Assistance Management Manual E-Change 588
SAMM Admin Change Memo

1. DSCA is conducting multiple administrative maintenance projects to increase SAMM clarity and usability including:
   1. Acronyms
      1. The acronym list will be updated to include all acronyms currently used in the SAMM.
      2. Acronyms will no longer be used in section headings.
      3. Acronyms will be introduced at first use in each main section of a SAMM chapter, for example C1.1, C1.2, etc.
   2. All chapters, tables, and figures will be updated with DoD current organizational office symbol standards.
2. Published SAMM policy memoranda are being reviewed and updated to reflect the current status
   1. A new status "Incorporated" is added for policy memoranda that include policy incorporated into the SAMM chapters and/or appendices.
      1. This change clarifies that for policy memoranda that institute SAMM policy, the resulting policy incorporated into the SAMM is the official guidance. The policy memorandum is the mechanism for introducing that guidance.
      2. "Incorporated" policy memoranda can be superseded or rescinded at a later date.
   2. Policy memoranda with status updates are provided on Attachment 2.
3. The "Combating Terrorism Fellowship Program (CTFP)" is replaced with "Regional Defense Fellowship Program (RDFP)." Updates will be made throughout the SAMM.

4. Update SAMM Section C2.1.6.1.3. to read as follows:

   Current Wording:

   C2.1.6.1.3. Combating Terrorism Fellowship Program (CTFP). The CTFP is centrally managed by the Office of the Secretary of Defense for Special Operations/Low-Intensity Conflict (OSD/SOLIC). SCOs submit nominations for CTFP training to the CCMD CTFP manager (usually the same office responsible for SA training). CCMD approved nominations are forwarded to OSD/SOLIC for final approval. The entire nomination process is accomplished online via the Security Assistance Network (SAN). Once approval is received, SCOs must conduct student processing similar to that used for IMET students.

   Revised Wording:

   C2.1.6.1.3. Regional Defense Fellowship Program. The Regional Defense Fellowship Program (RDFP) is a special operations education and training program with policy oversight provided by the Office of the Secretary of Defense for Special Operations/Low Intensity Conflict (OSD/SOLIC), and program management by the Defense Security Cooperation University (DSCU). SCOs submit nominations for the RDFP to the CCMD RDFP manager (usually the same office responsible for other Security Cooperation training and education). Once the CCMD approves the nomination it is forwarded to DSCU and OSD/SOLIC for final approval. The entire nomination process is accomplished online via the Security Assistance Network (SAN). SCOs must conduct screening in accordance with SAMM Section C10.8. All RDFP students must be vetted for human rights violations before final approval.

5. Update SAMM Section C6.4.10.7. to read as follows:

   Current Wording:

   C6.4.10.7. DSCA SDR Review. DSCA reviews and approves or disapproves SDRs when the IA determines the USG is liable for correction and recommends use of FMS funds in excess of $50,000; or, the SDR involves an issue likely to be raised to DSCA. When either or both of these criteria are met, the IA must submit a complete SDR package through its Headquarters which meets all documentary and analysis requirements in accordance with Table C6.T3. After Headquarters endorsement of the SDR package, the SDR package will be submitted to DSCA (Directorate of Business Operations (DBO) and Strategy, Plans, and Policy Directorate (SPP)). DSCA will make a final decision on the SDR within 30 days of receipt of the SDR package.

   Revised Wording:

   C6.4.10.7. DSCA Supply Discrepancy Report Review. DSCA reviews and approves or disapproves Supply Discrepancy Reports (SDRs) when the IA determines the USG is liable for correction and recommends use of FMS funds in excess of $50,000; or, the SDR involves an issue likely to be raised to DSCA. When either of these criteria are met, the IA must submit a complete SDR package through its Headquarters which meets all documentary and analysis requirements in accordance with Table C6.T3. After Headquarters endorsement of the SDR package, the SDR package will be submitted to DSCA (Office of Business Operations, Financial Policy and Regional Execution Directorate, Financial Policy Division (OBO/FPRE/FP)). DSCA will make a final decision on the SDR within 60 days of receipt of the SDR package.

6. Updated SAMM Section C6.7.4. to read as follows:

   Current Wording:

   C6.7.4. Request for Exceptions to Policy (ETPs). Implementing Agency (IA) policy offices must send all ETP requests through the following email address: dsca.ncr.dsca-spp.mbx.etp@mail.mil mailbox. Requests for financial policy exception related to prior year adjustment should be sent to dsca.ncr.dbo.mbx.prior-year-requests@mail.mil, and case closure sent to dsca.ncr.dbo.mbx.case-closure-requests@mail.mil. DSCA SPP/SPI will coordinate ETP requests with the appropriate DSCA stakeholders and reply to ETP requests submitted via email within ten business days of receiving a complete ETP request. DSCA SPP/SPI will provide ETP determinations to the IA by email and enter a DSAMS case remark. General Officer/Flag Officer/SES-level requests or ETP appeals submitted via formal correspondence are staffed with the DSCA Director, who will respond accordingly to the requester. DSCA will consider ETPs on a case-by-case basis, in accordance with legal requirements, when SAMM guidance is not established.

   Revised Wording:

   C6.7.4. Request for Exceptions to Policy. Implementing Agency (IA) policy offices must send all Exception to Policy (ETP) for case modification and amendment requests through the following email address: dsca.ncr.dsca-spp.mbx.etp@mail.mil mailbox. Requests for financial policy exception related to prior year adjustment should be sent to dsca.ncr.dbo.mbx.prior-year-requests@mail.mil, and case closure sent to dsca.ncr.dbo.mbx.case-closure-requests@mail.mil. DSCA (Office of Strategy, Plans, and Policy, Execution Policy and Analysis Directorate (SPP/EPA)) will coordinate ETP requests with the appropriate DSCA stakeholders and reply to ETP requests submitted via email within ten business days of receiving a complete ETP request. DSCA (SPP/EPA) will provide ETP determinations to the IA by email and enter a DSAMS case remark. General Officer/Flag Officer/SES-level requests or ETP appeals submitted via formal correspondence are staffed with the DSCA Director, who will respond accordingly to the requester. ETP appeals must be submitted fifteen business days after receipt of denial notification. DSCA will consider ETPs on a case-by-case basis, in accordance with legal requirements, when SAMM guidance is not established.

7. Update SAMM section C7.12.1. to read as follows:

   Current Wording:

   C7.12.1. When preparing a Letter of Offer and Acceptance (LOA), standard transportation percentages are normally applied based on the Delivery Term Code (DTC). The Transportation Cost Look-up Table (See Appendix 2) is used to compute estimated actual transportation costs for the items listed. When estimated actual costs are used, a note is included in the LOA that identifies the amount, by line item, for each DTS transportation element (e.g., CONUS inland, port loading, and ocean transportation). Estimated actual costs are, similar to standard percentages, placed below-the-line (vice as a separate line item) in an LOA, and the funds are placed in the Foreign Military Sales (FMS) Trust Fund Transportation Cost Clearing Account. When a Special Assigned Airlift Mission or some other form of dedicated premium transportation (e.g., One Time Only vessel charter) must be used to move materiel purchased under an LOA, a separate transportation service line is included in the LOA. If it is One Time Only premium transportation (i.e. booking a One Time Only vessel or SAAM), transportation costs must be above the line. If it is One Time Only non-premium transportation, where the transportation is shared with other shipments, the transportation costs may be above or below the line. When expenditures are made for actual transportation, this line is adjusted to meet the full cost of the special transportation and a Type Address Code needs to be supplied to be transferred to the Department of Defense service contract for movement of the freight. When shipments require containerization, storage in-transit, escorts, or has any other special transportation accessorial requirements; these special transportation accessorials are not included in the standard transportation percentages nor in the cost provided in the transportation cost look-up table. These charges are to be placed above-the-line and adjusted as needed to capture actual cost.

   Revised Wording:

   C7.12.1. Defense Transportation System Costs. When preparing a Letter of Offer and Acceptance (LOA), standard transportation percentages are normally applied based on the Delivery Term Code (DTC). The Transportation Cost Look-up Table (See Appendix 2) is used to compute estimated actual transportation costs for the items listed. When estimated actual costs are used, a note is included in the LOA that identifies the amount, by line item, for each Defense Transportation System (DTS) transportation element (e.g., CONUS inland, port loading, and ocean transportation). Estimated actual costs are, similar to standard percentages, placed below-the-line (vice as a separate line item) in an LOA, and the funds are placed in the Foreign Military Sales (FMS) Trust Fund Transportation Cost Clearing Account. When a Special Assigned Airlift Mission or some other form of dedicated premium transportation (e.g., One Time Only vessel charter) must be used to move materiel purchased under an LOA, a separate transportation service line is included in the LOA. If it is One Time Only premium transportation (i.e. booking a One Time Only vessel or SAAM), transportation costs must be above the line. If it is One Time Only non-premium transportation, where the transportation is shared with other shipments, the transportation costs may be above or below the line. When expenditures are made for actual transportation, this line is adjusted to meet the full cost of the special transportation and a Transportation Account Code needs to be supplied to be transferred to the Department of Defense service contract for movement of the freight. When shipments require containerization, storage in-transit, escorts, or has any other special transportation accessorial requirements; these special transportation accessorials are not included in the standard transportation percentages nor in the cost provided in the transportation cost look-up table. These charges are to be placed above-the-line and adjusted as needed to capture actual cost.

8. Update SAMM section C9.9.1.5.4.4.4. to read as follows:

   Current Wording:

   C9.9.1.5.4.4.4. Confirming Bank. Refer to the definition of "Confirmer" and related rules contained in ISP 98 and Uniform Commercial Code Article 5. A confirming bank is necessary when an issuing bank alone will not suffice to meet DSCA's eligibility criteria to provide DSCA with adequate assurance of payment. (e.g. The issuing bank may not have the necessary credit rating but the confirming bank may or the issuing bank may be located in a country that is not acceptable in terms of country risk but the confirming bank's being located in the U.S. mitigates that risk.) A confirming bank takes the issuing bank's promise under the SBLC and then under the Confirmation adds its own independent and documentary obligation under the Confirmation to pay DSCA, as beneficiary, against presentation of a complying demand for payment under the Confirmation. Under whatever separate agreement(s) into which they choose to enter, the confirming bank and the issuing bank, and possibly the Purchaser, will negotiate fees associated with the Confirmation as well as any reimbursement or other underlying transactions required, which are separate and apart from the Confirmation and the SBLC. Under no circumstances can articles delivered or services performed under the FMS program be used as collateral for securing arrangements associated with the Confirmation or the SBLC. In the body of the Confirmation the confirming bank notifies DSCA as to the letter of credit number assigned to the specific Confirmation.

   Revised Wording:

   C9.9.1.5.4.4.4. Confirming and Advising Banks

   C9.9.1.5.4.4.4.1. Confirming Bank. Refer to the definition of "Confirmer" and related rules contained in ISP 98 and Uniform Commercial Code Article 5. A confirming bank is necessary when an issuing bank alone will not suffice to meet DSCA's eligibility criteria to provide DSCA with adequate assurance of payment. (e.g. The issuing bank may not have the necessary credit rating, but the confirming bank may or the issuing bank may be located in a country that is not acceptable in terms of country risk. The confirming bank being located in the U.S. mitigates that risk.) A confirming bank takes the issuing bank's promise under the SBLC and then under the Confirmation adds its own independent and documentary obligation under the Confirmation to pay DSCA, as beneficiary, against presentation of a complying demand for payment under the Confirmation. The confirming bank will also usually act as an advising bank to advise the terms and conditions of the SBLC to DSCA and to check the apparent authenticity of the SBLC. Under whatever separate agreement(s) into which they choose to enter, the confirming bank and the issuing bank, and possibly the Purchaser, will negotiate fees associated with the Confirmation as well as any reimbursement or other underlying transactions required, which are separate and apart from the Confirmation and the SBLC. Under no circumstances can articles delivered or services performed under the FMS program be used as collateral for securing arrangements associated with the Confirmation or the SBLC. In the body of the Confirmation, the confirming bank notifies DSCA as to the letter of credit number assigned to the specific Confirmation.

   C9.9.1.5.4.4.4.2. Advising Bank. The advising bank will notify DSCA that a letter of credit has been opened on behalf of the Partner. The advising bank will authenticate and transfer the SBLC to DSCA as well as advise DSCA on the terms and conditions of the SBLC. The advising bank often serves as the confirming bank, but these roles may be filled by different financial institutions as well.

9. Update SAMM Section C10.8.5.2.3. to read as follows:

   Current Wording:

   C10.8.5.2.3. Certification of Immunization and Fitness. Either a PN MOD physician or a licensed practicing medical authority named on the U.S. embassy-maintained list of qualified practitioners must complete and sign DD Form 2808, block 82, certifying the IMS has had the immunizations listed in Table C10.T8. and meets the health and fitness standards of requested training.

   Revised Wording:

   C10.8.5.2.3. Certification of Immunization and Fitness. Either a PN MOD physician or a licensed practicing medical authority named on the U.S. embassy-maintained list of qualified practitioners must complete and sign DD Form 2808, block 82, certifying the IMS's current immunization status, to include immunizations listed in Table C10.T8. and meets the health and fitness standards of requested training.

10. Update SAMM Section C10.8.5.4.3. to read as follows:

    Current Wording:

    C10.8.5.4.3. Certification of Immunization and Fitness. Either a PN MOD physician or a licensed practicing medical authority named on the U.S. embassy-maintained list of qualified practitioners must complete and sign DD Form 2808, block 82 certifying the AFM has had the immunizations listed in Table C10.T8.

    Revised Wording:

    C10.8.5.4.3. Certification of Immunization and Fitness. Either a PN MOD physician or a licensed practicing medical authority named on the U.S. embassy-maintained list of qualified practitioners must complete and sign DD Form 2808, block 82 certifying the AFM's current immunization status, to include immunizations listed in Table C10.T8.

11. Update SAMM Section C10.17.14. to read as follows:

    Current Wording:

    C10.17.14. Combating Terrorism Fellowship Program (CTFP). CTFP is designed to address key challenges globally, regionally, and in specific countries through a tailored program of education and training activities. Permanently authorized by 10 U.S.C. 2249c, the CTFP provides a unique and flexible tool to focus efforts toward building partner capacity to meet a specific Combatant Command objective. Contact DSCA (Building Partner Capacity Directorate (BPC)) for questions regarding CTFP.

    Revised Wording:

    C10.17.14. The Regional Defense Fellowship Program. The Regional Defense Fellowship Plan (RDFP) is designed to address key challenges in irregular warfare globally, regionally, and in specific countries through tailored education and training programs. It is permanently authorized by 10 U.S.C. Section 345. The RDFP provides a unique and flexible tool to focus efforts toward building partner capacity to meet specific combatant commander objectives. Contact the Defense Security Cooperation University for questions regarding the RDFP.

12. Update SAMM Section C11.9.6.1. to read as follows:

    Current Wording:

    C11.9.6.11. Presidential Drawdown. The SDAF-procured stock can be used to support Presidential Drawdowns. Since the SDAF is a revolving fund, the Military Departments must use their own funds to purchase the item(s) or service(s) from the SDAF.

    Revised Wording:

    C11.9.6.11. Presidential Drawdown. The SDAF-procured stock can be used to support Presidential Drawdowns on a case-by-case basis. Since the SDAF is a revolving fund, the Military Departments must use their own funds to purchase the item(s) or service(s) from the SDAF. IAs should direct any request for guidance to DSCA (Office of International Operations, Global Execution Directorate, Assistance & Monitoring Division (IOPS/GEX/AMD)).

13. Update SAMM Section C11.9.6.4.3. to read as follows:

    Current Wording:

    C11.9.6.4.3. Type of Assistance (TA) Code. The TA code for SDAF assets is 5 (Cash Sale from Procurement with Payment in Advance, AECA Section 22(a)). This does not require a cash term of sale on the LOA.

    Revised Wording:

    C11.9.6.4.3. The Type of Assistance (TA) code used for SDAF assets is 3, 6 or 8 if being funded with the applicable Terms of Sale listed in SAMM Figure C5.F5. paragraph f, based on AECA Section 21(b and d). For SDAF lines funded with Foreign Military Sales (FMS) Credit, FMS Credit Non-Repayable, and Military Assistance Program (MAP) Merger, use the applicable credit TA code, also listed in SAMM Figure C5.F5. paragraph f. For instances when both cash and credit funding is provided on a line, both applicable cash and credit codes must be used.

14. Update SAMM Section C15.3.3.11.4. to read as follows:

    Current Wording:

    C15.3.3.11.4. Prime Vendor Transportation. For system sales and more complex acquisition and sustainment efforts, the IA may request approval from DSCA (Strategy Directorate) for the prime vendor to transport and make delivery of materiel to the in-country location. The Prime Vendor's contract price will include a cost for transportation and DTC 4 will be cited against the line. The IA will include a note in the pseudo LOA to describe the transportation and delivery arrangements.

    Revised Wording:

    C15.3.3.11.4. Prime Vendor Transportation. For system sales and more complex acquisition and sustainment efforts, the IA may request approval from DSCA (Office of Strategy, Plans, and Policy (SPP)) for the prime vendor to transport and make delivery of materiel to the in-country location. DSCA approval is required when the prime vendor is transporting USG titled materiel. The prime vendor's contract price will include a cost for transportation and Offer Release Code (ORC) A and DTC 4 will be cited against the line. The IA will include a note in the BPC LOA to describe the transportation and delivery arrangements.

15. Update SAMM Section C16.1.1.2. to read as follows:

    Current Wording:

    C16.1.1.2. Closure Defined. Closure occurs in the life of a case when all material was delivered, services were performed, other requirements of the Letter of Offer and Acceptance (LOA) were satisfied, known financial transactions (including collections) were completed, and the purchaser receives a final statement of account in the next DD Form 645, "Foreign Military Sales Billing Statement". From a practical and operational standpoint, such "final" case closure marks the conclusion of the life of a given case. However, the DoD FMR, Volume 15, Chapter 6 states that a closed case may remain open from a DoD accounting perspective in order to acknowledge the possibility that a financial transaction may occur subsequent to case closure. See DoD FMR Volume 15, Chapter 3 for general closure policies in addition to the information contained in this chapter.

    Revised Wording:

    C16.1.1.2. Closure Defined. Closure occurs in the life of a case when all material was delivered, services were performed, other requirements of the Letter of Offer and Acceptance (LOA) were satisfied, known financial transactions (including collections) were completed, and the purchaser receives a final statement of account in the next DD Form 645, "Foreign Military Sales Billing Statement". From a practical and operational standpoint, such "final" case closure marks the conclusion of the life of a given case. However, the DoD FMR, Volume 15, Chapter 3, states "Case closure does not stop the billing/reporting process, but results in a re-categorization of the case records from active status to inactive status to ensure accessibility for recording subsequent activity. In other words, a case never closes from a DoD accounting perspective." Reference DoD FMR, Volume 15, Chapter 3 for general closure policies in addition to the information contained in this chapter.

16. Update SAMM Section C16.1.6.5. to read as follows:

    Current Wording:

    C16.1.6.5. DCAA. Performs contract audit functions for FMS as prescribed in the FAR and the DFARS, including final overhead rate audits necessary to close out contracts that, in turn, lead to closure of cases.

    Revised Wording:

    C16.1.6.5. Defense Contract Audit Agency. Performs contract audit functions for FMS as prescribed in the FAR and the DFARS, including final overhead rate audits necessary to close out cost-type contracts that, in turn, lead to closure of cases.

17. Update SAMM Section C16.2.2.3. to read as follows:

    Current Wording:

    C16.2.2.3. Case Manager: Contracting Relationship. A relationship between the FMS CM and the contracting community allows participants to effectively address the outline of issues noted in the previous section. "Contracting community" includes the Program Manager (PM), Procuring Contracting Officer (PCO), Administrative Contracting Officer (ACO), Contracting Officer's Representative (COR), contractor, disbursing office, accounting office, foreign purchaser, DCMA and DCAA. Such relationships can develop in several ways, including involving the FMS CM with the PCO's team pre-award planning and building the statement of work/performance work statement and ensuring the CM understands post-award issues such as the contract, contract Modifications and links with financial systems. These interactions may reduce reconciliation actions and help facilitate case closure.

    Revised Wording:

    C16.2.2.3. Case Manager: Contracting Relationship. A relationship between the FMS CM and the contracting community allows participants to effectively address the outline of issues noted in the previous section. "Contracting community" includes the Program Manager (PM), Procuring Contracting Officer (PCO), Administrative Contracting Officer (ACO), Contracting Officer's Representative (COR), contractor, disbursing office, accounting office, foreign purchaser, DCMA and DCAA. These relationships can develop in several ways, including collaborative efforts between the FMS CM and the PCO's team in pre-award planning and building the statement of work/performance work statement. Early and ongoing involvement ensures that the CM understands post-award actions required to address issues involving contract clauses/details, contract modifications and links with financial systems. These interactions may minimize reconciliation actions and assist in realizing case closure efficiencies.

18. Update SAMM Section C16.2.12.2. to read as follows:

    Current Wording:

    C16.2.12.2. SSC Status Application. Once the conditions for SSC are reached, lines and/or cases shall be coded by the IA with this status and the actual date of SSC within five (5) business days in Socium and the appropriate security cooperation information management systems. This coding shall not be delayed under any circumstance. The management of blanket order case/line items is generally conducted based on their value. Therefore, the application of SSC status on blanket order cases and/or lines may be accomplished based on the amount of unused value, when appropriate, rather than the absence of open orders. The reconciliation condition of data (other than that which is preventing item delivery or actual completion of services), the allocation of resources (funding and/or manpower), or the distribution/transfer of workload has no application in determining when supply/services completion occurs. To the extent possible, the SSC status of lines and sublines should be coded in the Defense Security Assistance Management System (DSAMS) as either completed (CMPLTD) or shipped (SHPD).

    Revised Wording:

    C16.2.12.2. Supply/Services Complete Status Application. Once the conditions for SSC are reached, lines and/or cases shall be coded by the IA with this status and the actual date of SSC within five (5) business days in Socium and the appropriate security cooperation information management systems. This coding shall not be delayed under any circumstance. The management of blanket order case/line items is generally conducted based on their value. Therefore, the application of SSC status on blanket order cases and/or lines may be accomplished based on the amount of unused value, when appropriate, rather than the absence of open orders, in addition to the purchaser's concurrence that no further activity will occur. The reconciliation condition of data (other than that which is preventing item delivery or actual completion of services), the allocation of resources (funding and/or manpower), or the distribution/transfer of workload has no application in determining when supply/services completion occurs. To the extent possible, the SSC status of lines and sublines should be coded in the Defense Security Assistance Management System (DSAMS) as either completed (CMPLTD) or shipped (SHPD).

19. Update SAMM Section C16.4. to read as follows:

    Current Wording:

    C16.4. Once a case is SSC, and the requisite verification steps for SSC reconciliation are complete, the case is eligible to be submitted for closure. Case closure is the final phase of the FMS life cycle and is extremely important to the USG and purchaser. Reconciliation for closure involves extensive communication between various logistics, financial and contract organizations to ensure associated closure transactions are completed. It is imperative that case/line reconciliation be initiated upon implementation of the LOA to make the closure process described herein timely and easier. By reconciling during case execution, case closure becomes an event instead of a process. A case is submitted for closure once it is reconciled according to procedures for the appropriate closure method.

    Revised Wording:

    C16.4. Closure. Once a case is SSC, and the requisite verification steps for SSC reconciliation are complete, the case is eligible to be submitted for closure. Case closure is the final phase of the FMS life cycle and is extremely important to the USG and purchaser. Reconciliation for closure involves extensive communication between various logistics, financial and contract organizations to ensure associated closure transactions are completed. It is imperative that case/line reconciliation activities be initiated upon implementation of the LOA and continue through case execution to SSC to make the closure process described herein timely and easier. By reconciling during case execution, case closure becomes an event instead of a process. A case is submitted for closure once it is reconciled according to procedures for the appropriate closure method.

20. Update SAMM Section C16.4.5.2. to read as follows:

    Current Wording:

    C16.4.5.2. Determining the ULO Value. The IA is responsible for determining, validating, and certifying the ULO Value for closure purposes. The certified ULO is the difference between obligations and articles/services disbursements recorded in the accounting system. Any ULO value that applies to a contract is assessed a ULO CAS value. The sum of the articles/services ULO and the CAS ULO is the total ULO. Refer to RCG Section A7.C3.13. for further information.

    Revised Wording:

    C16.4.5.2. Determining the Unliquidated Obligations Value. The IA is responsible for determining, validating, and certifying the ULO Value for closure purposes. The certified ULO is the difference between obligations and articles/services disbursements recorded in the accounting system. Any ULO value that applies to a contract has an associated estimated ULO CAS value. The sum of the articles/services ULO and the CAS ULO is the total ULO. Refer to RCG Section A7.C3.13. for further information.

21. Update SAMM Section C16.4.9.2. to read as follows:

    Current Wording:

    C16.4.9.2. Other related closure transactions include the 'C3', 'C4' and 'C5'. The 'C3' transaction indicates a case is closed. It is generated by DIFS and sent to the IA. The 'C4' transaction removes the case from the CCCI. The 'C5' transaction reopens a non-ACCP case or moves an ACCP case from Final to Interim closed status. Both the 'C4' and 'C5' transactions are initiated by the IA and sent to DIFS.

    Revised Wording:

    C16.4.9.2. Other related closure transactions include the 'C3', 'C4' and 'C5'. The 'C3' transaction indicates a case is closed. It is generated by DIFS and sent to the IA. The 'C4' transaction removes the case from the CCCI. The 'C5' transaction reopens a non-ACCP case or moves an ACCP case from Final to Interim closed status. Both the 'C4' and 'C5' transactions are initiated by the IA and sent to DIFS. "C5" transactions require DSCA approval when re-opening a non-ACCP case.

22. Update SAMM A6 LOA Note "Principles of Use of Military Unmanned Aerial Systems (UASs) - BPC" Note Usage Section:

    Note Usage

    Mandatory for BPC LOAs that include military UASs. Mandatory for Amendments and Modifications that add military UASs; or, if the current implemented version of the LOA contains UASs, and the newest version of the note is not on the implemented version of the case. It is the responsibility of the Implementing Agency to identify in the line description note that the UAS in question is a military UAS and controlled under the ITAR whether armed or unarmed.

23. Update SAMM A6 LOA Note "Principles of Use of Military Unmanned Aerial Systems (UASs) - FMS" Note Usage Section:

    Note Usage

    Mandatory for FMS LOAs that include military UASs. Mandatory for Amendments and Modifications that add military UASs; or, if the current implemented version of the LOA contains UASs, and the newest version of the note is not on the implemented version of the case. It is the responsibility of the Implementing Agency to identify in the line description note that the UAS in question is a military UAS and controlled under the ITAR whether armed or unarmed.

24. Update SAMM section A7.C1.5. to read as follows:

    Current Wording:

    A7.C1.5. Closure Criteria. Closure refers to a case for which all material was delivered, services were performed, other requirements of the LOA were satisfied, known financial transactions (including collections) were completed, and the purchaser receives a final statement of account in the next DD Form 645, "Foreign Military Sales Billing Statement". From a practical and operational standpoint, "final" case closure marks the conclusion of the life of a given case. It is DSCA policy to close an FMS case as soon it is feasible to do so. Cases are not considered candidates for closure until SSC, meaning all logistical actions are completed and all conditions of the LOA are satisfied. An elaboration of SSC criteria is found in Appendix 7, Section C2.13. The two broad categories of closure are: Accelerated Case Closure Procedures (ACCP) and non-ACCP. ACCP is voluntary except for those countries with FMF-funded cases. For cases categorized under ACCP, not all financial transactions are necessarily complete prior to closure. The non-ACCP category exists to accommodate those countries whose FMS programs are completely financed with national funds (cash) and have not elected to participate in ACCP, as well as all BPC cases. Non-ACCP cases must be fully reconciled prior to closure.

    Revised Wording:

    A7.C1.5. Closure Criteria. Closure refers to a case for which all material was delivered, services were performed, other requirements of the LOA were satisfied, known financial transactions (including collections) were completed, and the purchaser receives a final statement of account in the next DD Form 645, "Foreign Military Sales Billing Statement". From a practical and operational standpoint, "final" case closure marks the conclusion of the life of a given case. It is DSCA policy to close an FMS case as soon it is feasible to do so. Cases are not considered candidates for closure until SSC, meaning all logistical actions are completed and all conditions of the LOA are satisfied. An elaboration of SSC criteria is found in Appendix 7, Section C2.13. The two broad categories of closure are: Accelerated Case Closure Procedures (ACCP) and non-ACCP. ACCP is voluntary except for those countries with FMF-funded cases. For cases categorized under ACCP, not all financial transactions are necessarily complete prior to closure. The non-ACCP category exists to accommodate those countries whose FMS programs are completely financed with national funds (cash) and have not elected to participate in ACCP, as well as all BPC cases. Non-ACCP requires that all financial transactions are complete/finalized and cases must be fully reconciled prior to closure.

25. Update SAMM Section A7.C2.10.7. to read as follows:

    Current Wording:

    A7.C2.10.7. SF1081 ("Voucher and Schedule of Withdrawals and Credits").

    Revised Wording:

    A7.C2.10.7. Vouchers.

26. Add SAMM Section A7.C2.10.7.1. to read as follows:

    A7.C2.10.7.1. SF1080 ("Voucher for Transfers between Appropriations and/or Funds"). This form is used to expend orders for which the source of supply has not sent a bill.

27. Add SAMM Section A7.C2.10.7.2. to read as follows:

    A7.C2.10.7.2. SF1081 ("Voucher and Schedule of Withdrawals and Credits"). This form is used to move disbursement transactions from one case/line item to another as well as correct erroneous disbursement information.

28. Update SAMM section A7.C2.12.4.2.2.3. to read as follows:

    Current Wording:

    A7.C2.12.4.2.2.3. Transportation Bill Code (TBC) is used to override the DTC or when no DTC was provided on the requisition. It is not part of the requisition document number. The override is used to charge an amount different from that computed by the DTC and documents the actual transportation method used for that requisition. See the TBC definitions and rate table in DoD FMR Volume 15, Chapter 8, Section 080402.R and Table C8.27.

    Revised Wording:

    A7.C2.12.4.2.2.3. Transportation Bill Code (TBC) is used to override the DTC or when no DTC was provided on the requisition. It is not part of the requisition document number. The override is used to charge an amount different from that computed by the DTC and documents the actual transportation method used for that requisition. See the TBC definitions and rate table in DoD FMR Volume 15, Chapter 8, Tables 8-1, 8-2 and 8-3.

29. Update SAMM Section A7.C3.11.3. to read as follows:

    Current Wording:

    A7.C3.11.3. Case Managers who want to certify a case for closure at a value that results in a reduction (to include $0) in the minimum, non-refundable required amount of FMS administrative surcharge funding must contact their IA focal point to request the DSCA (Business Operations Directorate, Financial Policy and Analysis Division) for approval. Requests should include the following information: case identifier, date of case acceptance, value of the case, delivered amount, minimum amount of surcharge required per policy, recommended surcharge to be collected, a detailed justification for the amount, and any other information the IA deems applicable. The DSCA (Business Operations Directorate, Financial Policy and Analysis Division) reply is sent via email to the requestor and DFAS Indianapolis. Additionally, a case remark is added to DSAMS if the request is approved.

    Revised Wording:

    A7.C3.11.3. Case Managers who want to certify a case for closure at a value that results in a reduction (to include $0) in the minimum, non-refundable required amount of FMS administrative surcharge funding must contact their IA focal point to request DSCA (Office of Business Operations, Financial Policy & Regional Execution Directorate, Financial Policy (OBO/FPRE/FP)) approval. Requests should include the following information: term of sale code, case description, case identifier, date of case acceptance, value of the case, delivered amount, minimum amount of surcharge required per policy, recommended surcharge to be collected, a detailed justification for the amount, and any other information the IA deems applicable. The DSCA (OBO/FPRE/FP) reply is sent via email to the requestor and DFAS Indianapolis. Additionally, a case remark is added to DSAMS if the request is approved.

30. Update SAMM Section A7.C4.7.1.1. to read as follows:

    Current Wording:

    A7.C4.7.1.1. Data Elements for the 'C1I' Transaction. The primary data elements are date submitted, case designator, certificate values including CAS and LSC, articles/services disbursed (not including CAS or LSC) and closure type request code (Non-ACCP 'C1", ACCP interim 'C2', or ACCP direct final or ACCP interim to final 'C3'). Loan Guarantee Sources.

    Revised Wording:

    A7.C4.7.1.1. The primary data elements are date submitted, case designator, certificate values including CAS and LSC (at Interim closure, data elements include ULO and ULO CAS), articles/services disbursed (not including CAS or LSC) and closure type request code (Non-ACCP 'C1', ACCP interim 'C2', or ACCP direct final or ACCP interim to final 'C3'). Loan Guarantee Sources.

31. Update SAMM Section A7.C4.7.5. to read as follows:

    Current Wording:

    A7.C4.7.5. Other Related Closure Transactions include the 'C4I', which is generated by the IA system to rescind the 'C1' transaction and related certificate of closure and the 'C5I', which serves two purposes:

    Revised Wording:

    A7.C4.7.5. Other Related Closure Transactions include the 'C4I', which is generated by the IA system to rescind the 'C1' transaction and related certificate of closure while the case is in pending closure status or prior to DFAS closure approval, and the 'C5I', which serves two purposes:

32. Update SAMM Section A7.C4.13.3.3.2. to read as follows:

    Current Wording:

    A7.C4.13.3.3.2. Navy Cases. NAVSUP Weapons System Support, Deputy Commander for International Programs, 700 Robbins Ave, Bldg 4B, Code P762, Philadelphia, PA 19111-5098.

    Revised Wording:

    A7.C4.13.3.3.2. Navy Cases. NAVSUP Weapons System Support, Deputy Commander for International Programs, 700 Robbins Ave, Bldg 4B, Code N5232, Philadelphia, PA 19111-5098.

33. Update SAMM Section A7.C4.14.9. to read as follows:

    Current Wording:

    A7.C4.14.9. Validate DIFS disbursement values by ensuring DIFS cash accounting and articles/services disbursement values equal IA performance values. Compare DIFS cash accounting CAS, LSC, ULO, accessorial and administrative disbursement transfers to case summary values. Total deliveries (DIFS FIC1) less total disbursements (DIFS FIS2) must equal ULO-REQD value. If a CCSA refund will be given, or was recently given, to the purchaser, this may cause a disbursement difference between DIFS and the IA system.

    Revised Wording:

    A7.C4.14.9. Validate DIFS disbursement values by ensuring DIFS cash accounting and articles/services disbursement values equal IA performance values. Compare DIFS cash accounting CAS, LSC, ULO, accessorial and administrative disbursement transfers to case summary values. Total deliveries (DIFS FIC1) less total disbursements (DIFS FIS2) must equal ULO-REQD value. If a CCSA refund will be given, or was recently given, to the purchaser, this may cause a disbursement difference between DIFS and the IA system, as well as Work-in-Process versus Deliveries difference with the same dollar amount. However, the two differences should not prevent final closure.

34. Update SAMM Section A7.C4.15.1.2. to read as follows:

    Current Wording:

    A7.C4.15.1.2. Reopening a final closed case to an implemented status is done manually by DFAS Indianapolis upon DSCA (Business Operations Directorate, Financial Policy and Analysis Division) approval of an IA request.

    Revised Wording:

    A7.C4.15.1.2. Reopening a final closed case to an implemented status is done manually by DFAS Indianapolis upon DSCA (Office of Business Operations, Financial Policy & Regional Execution, Financial Policy (OBO/FPRE/FP)) approval of an IA request if the IA cannot perform this function via the submission of a C5 transaction.

35. Update SAMM Table C4.T2. and C4.T2.A-D Notes to add entry 9:

    #	Notes
    9	Country/Territory Customer Code in parentheses indicates a legacy or obsolete code.

36. Update SAMM Figure C5.F6. to add one Case Category and update one Case Category for U.S. Air Force:
    • Case Category F: Targeting
    • Case Category V: Major Modifications

37. Update SAMM Table C9.T2. to add row 43, which was inadvertently removed during publication of DSCA Policy Memo 16-67. All subsequent rows in the table will be renumbered. Also update the table to remove verbiage from row 102, which was previously row 101:

    Row	Activity	Admin*	Case	Non-Standard	Frequency
    Case Development
    43	Excess Defense Articles (EDA) grant transfers and associated EDA activities such as Joint Visual Inspections (JVIs).	EDA grant transfers are not funded by the FMS Administrative Surcharge. Associated EDA activities such as Joint Visual Inspections (JVIs) should be funded from an FMS case, FMF administrative funds or other IA funds, e.g., O&M. EDA grant transfers use an LOA document for ease of tracking/reporting only and are not part of the FMS program. However, if an EDA grant transfer of an item is part of an FMS LOA whereby a foreign partner is purchasing refurbishment, training, spare parts, etc., the FMS portion of the LOA is properly supported via FMS administrative funding as with any other FMS LOA. The funding source for the FMS portion of the LOA (FMF, national funds, etc.) does not alter that it is supported with FMS administrative funding.
    102	Foreign Participation in a USG-sponsored Group. Foreign purchaser participation in a case/program related group such as Technical Coordination Groups (TCG), Technical Coordination Program (TCP), International Engine Management Program (IEMP), Electronic Combat International Security Assistance Program (ECISAP), Fair Share Sustainment Program (FSSP), Engineering Fair Share Program (EFSP), Apache Coordination Technical Services Improvement Program (ACTSIP), etc.	Case funded

38. Update SAMM Table C9.T4. to read as follows:

    Current Wording:

    Charge	Description	How Priced	Applied by - for billing	References
    Contract Administration Services (CAS) Surcharge	CAS is comprised of three basic elements: quality assurance and inspection; contract management; and contract audit. For cases implemented on or after October 1, 2002 that have contracts administered overseas, an additional element (OCONUS CAS) applies. For United States Army Corps of Engineers (USACE) contracts, quality assurance and inspections and other contract administrative services costs are included in its supervision and administration costs charged to the case line, so CAS(1) and CAS(2) do not apply to USACE.	Included in value of procurement line items (Source of Supply (SoS) of "P" or "X") on the LOA. A surcharge applies to each element. May be waived if reciprocal agreements exist. For USACE cases: Implemented on or after February 1, 2020, apply a surcharge of: 0.10% for contract audit Implemented on or after October 1, 2002, but before February 1, 2020, apply a surcharge of: 0.20% for contract audit Implemented before October 1, 2002, apply a surcharge of: 0.50% for contract audit For non-USACE cases: Implemented on or after February 1, 2020, the following surcharge(s) apply: 0.45% contract administration/management 0.45% quality assurance and inspection 0.10% contract audits For contracts administered overseas, an additional 0.20% (OCONUS CAS) applies to the entire case. (For contracts administered overseas (by permanent-party DCMA employees), an additional 0.20% (OCONUS CAS) applies to the entire case.) Implemented on or after December 1, 2014, but before February 1, 2020, the following surcharge(s) apply: 0.50% contract administration/management 0.50% quality assurance and inspection 0.20% contract audits For contracts administered overseas, an additional 0.20% (OCONUS CAS) applies to the entire case. (For contracts administered overseas (by permanent-party DCMA employees), an additional 0.20% (OCONUS CAS) applies to the entire case.) Implemented on or after October 1, 2002, but before December 1, 2014, the following surcharge(s) apply: 0.65% contract administration/management 0.65% quality assurance and inspection 0.20% contract audits For contracts administered overseas, an additional 0.20% (OCONUS CAS) applies to the entire case. (For contracts administered overseas (by permanent-party DCMA employees), an additional 0.20% (OCONUS CAS) applies to the entire case.) Implemented before October 1, 2002, the following surcharge(s) apply: 0.50% contract administration/management 0.50% quality assurance and inspection 0.50% contract audits	DFAS Indianapolis	AECA, section 21(h) (22 U.S.C. 2761(h)) and DoD FMR, Volume 15, Chapter 7 (Jan 2021), paragraph 071603 BPC: Applicable CAS charges are no different than FMS cases. However, effective 14 Aug 2020, BPC Title 10-funded cases will not be assessed the CAS Surcharge.

    Revised Wording:

    Charge	Description	How Priced	Applied by - for Billing	References
    Contract Administration Services (CAS) Surcharge	CAS is comprised of three basic elements: quality assurance and inspection; contract management; and contract audit. For cases implemented on or after October 1, 2002 that have contracts administered overseas, an additional element (OCONUS CAS) applies. For United States Army Corps of Engineers (USACE) contracts, quality assurance and inspections and other contract administrative services costs are included in its supervision and administration costs charged to the case line, so CAS(1) and CAS(2) do not apply to USACE. For Parts and Repair Ordering System II (PROS) Program, full administration of PROS II is provided through a contracted program office and no additional services for contract administration, quality assurance or contract audit are provided, so CAS(1), CAS(2), and CAS(3) do not apply for PROS II Program.	Included in value of procurement line items (Source of Supply (SoS) of "P" or "X") on the LOA. A surcharge applies to each element. May be waived if reciprocal agreements exist. For USACE cases: Implemented on or after February 1, 2020, apply a surcharge of: 0.10% for contract audit Implemented on or after October 1, 2002, but before February 1, 2020, apply a surcharge of: 0.20% for contract audit Implemented before October 1, 2002, apply a surcharge of: 0.50% for contract audit For PROS II Program Lines: Implemented on or after April 18, 2005, do not apply any CAS components Implemented on or after October 1, 2002, but before April 18, 2005, the following surcharge(s) apply: 0.50% contract administration/management 0.50% quality assurance and inspection 0.50% contract audits For non-USACE cases: Implemented on or after February 1, 2020, the following surcharge(s) apply: 0.45% contract administration/management 0.45% quality assurance and inspection 0.10% contract audits For contracts administered overseas, an additional 0.20% (OCONUS CAS) applies to the entire case. (For contracts administered overseas (by permanent-party DCMA employees), an additional 0.20% (OCONUS CAS) applies to the entire case.) Implemented on or after December 1, 2014, but before February 1, 2020, the following surcharge(s) apply: 0.50% contract administration/management 0.50% quality assurance and inspection 0.20% contract audits For contracts administered overseas, an additional 0.20% (OCONUS CAS) applies to the entire case. (For contracts administered overseas (by permanent-party DCMA employees), an additional 0.20% (OCONUS CAS) applies to the entire case.) Implemented on or after October 1, 2002, but before December 1, 2014, the following surcharge(s) apply: 0.65% contract administration/management 0.65% quality assurance and inspection 0.20% contract audits For contracts administered overseas, an additional 0.20% (OCONUS CAS) applies to the entire case. (For contracts administered overseas (by permanent-party DCMA employees), an additional 0.20% (OCONUS CAS) applies to the entire case.) Implemented before October 1, 2002, the following surcharge(s) apply: 0.50% contract administration/management 0.50% quality assurance and inspection 0.50% contract audits	DFAS Indianapolis	AECA, section 21(h) (22 U.S.C. 2761(h)) and DoD FMR, Volume 15, Chapter 7 (Jan 2021), paragraph 071603 BPC: Applicable CAS charges are no different than FMS cases. However, effective 14 Aug 2020, BPC Title 10-funded cases will not be assessed the CAS Surcharge.

39. Update RCG tables A7.C4.T9. to change NAVY IPO Office from 240C to 230C. Update RCG Tables A7.C2.T10., A7.C3.T10., A7.C5.T2., A7.C6.T1. to change NAVY IPO Office from 240C to 230-F.

40. Update SAMM Figure A7.C2.F8. to read as follows:

    Current Wording:

    Box 5: After approval of transaction '7' request, IA accounting system reserves funds and rejects all other transactions attempting to process

    Revised Wording:

    Box 5: After approval of transaction '7' request, IA accounting system reserves funds and subtracts this value from outstanding obligations when attempting to process other expenditures.

41. Update SAMM Figure A7.C4.F5. to read as follows:
    • Change the figure in the first column in the third row from DIFS to MILDEPS.

42. Update SAMM Figure A7.C4.F13. to read as follows:

    Current Wording for Note:

    • *Reverting from Final Closed case requires to go through the process twice

    Revised Wording for Note:

    • *For ACCP cases reverting from final closed case to implemented case, the submission of two C5 transactions in the same daily cycle is required.

43. The following Policy Memos status are updated as shown:

43. The following Policy Memos status are updated as shown: