Security Assistance Management Manual E-Change 656 
Interim Case Closure for Cases with Associated Contracts in Litigation

1. Delete SAMM Section C16.4.1.1.1.3.:

   Delete:

   C16.4.1.1.1.3. A case can close under ACCP for which a litigation judgment was issued, even if the settlement has not been paid.

2. Update existing SAMM Section C16.4.1.1.2.:

   From:

   C16.4.1.1.2. A case shall be direct final closed (i.e., not interim closed) if the ULO equals zero, even if supporting contracts remain open. The USG and purchaser both prefer that direct final closures are utilized to the fullest extent possible without impacting case closure standards.

   To:

   C16.4.1.1.2. A case shall be direct final closed (i.e., not interim closed) if the ULO equals zero, even if supporting contracts remain open, unless a contract associated with the case is the subject of pending litigation as set forth in Section C16.4.1.1.6. Direct final closures should be utilized to the fullest extent possible. without impacting case closure standards.

3. Update existing SAMM Section C16.4.1.1.6.:

   From:

   C16.4.1.1.6. A subcategory of ACCP is Enhanced Accelerated Case Closure (EACC). EACC targets ACCP candidates for first priority processing that have been SSC for at least 24 months. The DSCA (OBO) published the official EACC quarterly list of these cases to the IAs for action. As of 1 December 2008, EACC was suspended and has not been reactivated since.

   To:

   C16.4.1.1.6. Cases with Associated Contracts in Litigation. FMS cases that meet the ACCP closure eligibility conditions set forth in Section C16.4.1.1.1. may be interim closed (closure type 2) even if contracts associated with the relevant case are the subject of ongoing litigation. Such FMS cases shall be final closed after the litigation has concluded and a judgment has been issued.

4. Add new SAMM Section C16.4.1.1.6.1.:

   Add:

   C16.4.1.1.6.1. If cases with contracts subject to litigation are eligible for interim closure in accordance with Section C16.4.1.1.6., IAs shall notify partner nations of this fact, and that the case may not proceed to final closure until the litigation has been resolved.

5. Add new SAMM Section C16.4.1.1.7.:

   Add:

   C16.4.1.1.7. Litigation Resolution. No case shall be final closed prior to the resolution of any litigation involving an associated or supporting U.S. Government contract. At such time that the litigation has been concluded, the case shall be final closed if the litigation resolution did not have an adverse outcome for the relevant partner (see Section A7.C4.14.) or may be reopened as required to process any adverse judgments associated with the case in accordance with the criteria and procedures in Section A7.C4.15..

6. Update SAMM Section A7.C3.3.1.:

   From:

   A7.C3.3.1. ACCP. ACCP is the most common closure process. The USG goal is to close ACCP cases within 24 months following SSC as indicated in the LOA. The USG goal for training cases is 36 months following SSC. This type of closure allows a case to be closed after SSC, even if there are outstanding ULOs on the case (refer to (refer to Section A7.C3.13. for the details). For the purpose of this process, ULOs can be either contractual or miscellaneous/non-contractual. Purchaser funds are placed in a Case Closure Suspense Account (CCSA) pending final resolution of the ULOs. ACCP is voluntary, except for those countries with FMF-funded cases, which require mandatory participation in ACCP for all FMS cases regardless of the funding source. Most countries / international organizations participate, or are automatically included, in the ACCP process. The DSCA (Office of Business Operations, Financial Policy and Regional Execution Directorate) maintains the master list of countries participating in the ACCP program. Refer to Table A7.C3.T1. for a list of participating purchasers. There are two categories of ACCP closure: the standard process, and DSCA-directed force closures. The following are conditions necessary for a case to be closed utilizing ACCP:

   To:

   A7.C3.3.1. ACCP. ACCP is the most common closure process. The USG goal is to close ACCP cases within 24 months following SSC as indicated in the LOA. The USG goal for training cases is 36 months following SSC. This type of closure allows a case to be closed after SSC, even if there are outstanding ULOs on the case (refer to (refer to Section A7.C3.13. for the details). For the purpose of this process, ULOs can be either contractual or miscellaneous/non-contractual. Purchaser funds are placed in a Case Closure Suspense Account (CCSA) pending final resolution of the ULOs. ACCP is voluntary, except for those countries with FMF-funded cases, which require mandatory participation in ACCP for all FMS cases regardless of the funding source. Most countries / international organizations participate, or are automatically included, in the ACCP process. The DSCA (Office of Business Operations, Financial Policy & Regional Execution Directorate (OBO/FPRE)) maintains the master list of countries participating in the ACCP program. Refer to Table A7.C3.T1. for a list of participating purchasers. There are two categories of ACCP closure: the standard process, and DSCA-directed force closures. The following are conditions necessary for a case to be closed utilizing ACCP:

7. Update existing SAMM Section A7.C3.3.1.8.

   From:

   A7.C3.3.1.8. A case is usually direct final closed (i.e., not interim closed) if the ULO equals zero, even if supporting contracts remain open. The USG and purchaser both prefer that direct final closures are utilized to the fullest extent possible if not adversely impacting closure standards.

   To:

   A7.C3.3.1.8. A case is usually direct final closed (i.e., not interim closed) if the ULO equals zero, even if supporting contracts remain open, unless a contract associated with the case is the subject of pending litigation as set forth in Section A7.C3.3.1.10. Direct final closures should be utilized to the fullest extent possible. if not adversely impacting closure standards.

8. Add new SAMM Section A7.C3.3.1.10:

   Add:

   A7.C3.3.1.10. Cases with Associated Contracts in Litigation. FMS cases that meet the ACCP closure eligibility conditions set forth in Section A7.C3.3.1. may be interim closed (closure type 2) even if contracts associated with the relevant case are the subject of ongoing litigation. Such FMS cases shall be final closed after the litigation has concluded and a judgment has been issued.

9. Add new SAMM Section A7.C3.3.1.10.1:

   Add:

   A7.C3.3.1.10.1. If cases with contracts subject to litigation are eligible for interim closure in accordance with Section A7.C3.3.1.10., IAs shall notify partner nations of this fact, and that the case may not proceed to final closure until the litigation has been resolved.

10. Add new SAMM Section A7.C3.3.1.11.:

    Add:

    A7.C3.3.1.11. Litigation Resolution. No case shall be final closed prior to the resolution of any litigation involving an associated or supporting U.S. Government contract. At such time that the litigation has been concluded the case shall be final closed if the litigation resolution did not have an adverse outcome for the relevant partner (see Section A7.C4.14.) or may be reopened as required to process any adverse judgments associated with the case in accordance with the criteria and procedures in Section A7.C4.15.).

11. Delete SAMM Section A7.C3.3.1.3:

    Delete:

    A7.C3.3.1.3. A case can close under ACCP for which a litigation judgment was issued, even if the settlement has not been paid.

12. Delete following row from SAMM Table A7.C3.T3:

    Delete:

    Check	Item
    	No litigation actions are pending or judgments were already issued for all litigations.

13. Update SAMM Table A7.C3.T5. to:

    Inhibitor Code	Inhibitor Type	Estimated Timeframe for Clearing Inhibitor
    LP	Litigation Pending	Once a judgment is issued, ACCP cases can progress to C2 (interim) status. Once all claims are settled, ACCP cases and non-ACCP cases can progress to C3 (final) and C1 (non-ACCP) status, respectively. Cases should be reviewed every six months.