Security Assistance Management Manual E-Change 641
Presidential Drawdown Authority Valuation

1. Update SAMM Section C11.2.4.2.:

   From:

   C11.2.4.2. Transportation. New commercial contracts for transportation and related services may be used if the cost is less than the cost to use USG assets. All transportation costs must be included as part of the total drawdown authority amount. Transportation costs are calculated and tracked separately. The MILDEP providing the equipment must fund the transportation of that equipment to its final destination. The MILDEP reimburses the U.S. Transportation Command for air and sealift of the equipment. Existing contracts or resources may be used for airlift and sealift if their scope covers the proposed use (such as time-charter or multiple air mission agreements).

   To:

   C11.2.4.2. Transportation and Packing, Crating, and Handling. USTRANSCOM is generally responsible for coordinating and executing air and sealift of cargo into designated theatre locations and ensuring they arrive to the end user. The MILDEPs are responsible for CONUS-based Packing, Crating, and Handling (PC&H), which includes cargo movement to CONUS-based ports of embarkation or consolidation points. New commercial contracts for transportation and related services may be used if the cost is less than the cost to use USG assets. Existing contracts or resources may be used for airlift and sealift if their scope covers the proposed use (such as time-charter or multiple air mission agreements).

   C11.2.4.2.1. All transportation and PC&H costs must be included as part of the total Presidential drawdown authority amount. Any CONUS transportation effort(s) should fall under PC&H, and any OCONUS transportation effort(s) should fall under a separate transportation line on the PD.

   C11.2.4.2.2. The MILDEP allocated Transportation and PC&H in the EXORD is responsible the cost to transport equipment to the end user, to include reimbursing USTRANSCOM for all costs incurred when applicable.

   C11.2.4.2.3. The MILDEPs must report actual PC&H and Transportation costs in the DSCA 1000 System within 90 days based on bills received from the organization responsible for executing the movement.

2. Update SAMM Section C11.2.5.:

   From:

   C11.2.5. Value of Drawdowns. It is critical to ensure that projected values are as accurate as possible. Close coordination between the DSCA CPD, DSCA Directorate of Business Operations (DBO) Financial Policy and Regional Execution (FPRE) Division Financial Reporting and Compliance (FRC) Branch and the MILDEPs during drawdown execution is critical to reconcile values as early as possible. The actual value of drawdowns is normally available 90 days after delivery of the equipment and should be reported to DSCA DBO/FPRE/FRC at that time (See SAMM Section C11.2.7.1.). Value of articles, services, and training is determined using the following guidance:

   To:

   C11.2.5. Value of Drawdowns. It is critical to ensure that projected values are as accurate as possible. Close coordination between the DSCA CPD, DSCA (Office of Business Operations, Financial Policy & Regional Execution Directorate, Financial Reporting and Compliance Division (OBO/FPRE/FRC)) and the MILDEPs during drawdown execution is critical to reconcile values as early as possible. The actual value of drawdowns should be reported to DSCA (OBO/FPRE/FRC) in the DSCA 1000 system no later than 90 days after delivery of the equipment (See SAMM Section C11.2.7.1.). Value of articles, training, and services is determined using the following guidance:

3. Update SAMM Section C11.2.5.1.:

   From:

   C11.2.5.1. Value of Articles. The value of drawdown articles is calculated pursuant to DoD 7000.14-R, Volume 4, Chapter 4 for inventory and related property (e.g. operating materials and supplies, and stockpile material) and Volume 4, Chapter 25 for equipment.

   To:

   C11.2.5.1. Value of Articles. The value of drawdown articles is calculated pursuant to DoD 7000.14-R, Volume 4, Chapter 4 for inventory and related property (i.e., operating materials and supplies, and stockpile material) and Volume 4, Chapter 25 for general equipment. MILDEP replacement cost should not be used to determine the replacement value of drawdown articles. MILDEPs should not use replacement cost as the value of defense articles being provided under drawdown authority.

4. Update SAMM Section C11.2.6.:

   From:

   C11.2.6. Drawdown Process. Table C11.T5. summarizes the drawdown planning and development process.

   To:

   C11.2.6. Drawdown Process. Table C11.T5. summarizes the drawdown planning and development process. All personnel supporting this planning and development process, or the execution of the drawdowns themselves, must charge time spent and expenses incurred to an O&M appropriation of their respective Service or agency. DSCA will not reimburse other agencies for personnel costs incurred as a result of a Presidential Determination and subsequent drawdown of articles, services, and / or training. DSCA also will not authorize the use of a Foreign Military Sales (FMS) Administrative funds line of accounting to support PD planning and execution because the FMS Administrative account does not have reimbursable authority and thus, cannot be reimbursed by the appropriate O&M appropriation.

5. Update Table C11.T5. Drawdown Process step #8 to read:

   Step	Actions
   8	The MILDEPs (and others as appropriate) receive the drawdown execution message and provide Military Service O&M funding to the agency/organization responsible for executing the drawdown. The executing agency/organization provides the articles, services, and training to the recipient(s).