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

4/8/2024

 

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 :

DSCA Policy Memorandum 23-60, Updates to Special Defense Acquisition Fund Contract Administrative Services Surcharge [SAMM E-Change 650]

REFERENCE :

  1. Department of Defense Inspector General, Report Number 2020-114, Audit of Department of Defense Use of Security Assistance Funds and Asset Accountability, August 17, 2020

This memorandum updates policy in the SAMM to clarify Special Defense Acquisition Fund (SDAF) Contract Administrative Services (CAS) surcharge guidance in response to reference (a). The policy in the attachment is incorporated into the DSCA Security Assistance Management Manual (SAMM) at https://samm.dsca.mil.

If you have questions please contact Mario Franklin, Financial Policy Division (OBO/FPRE/FP), (703) 697-9434, mario.c.franklin.civ@mail.mil.

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

ATTACHMENT : 
SAMM E-Change 650

Security Assistance Management Manual E-Change 650 
UPDATES TO THE SPECIAL DEFENSE ACQUISITION FUND (SDAF) CONTRACT ADMINISTRATIVE SERVICES SURCHARGE (CAS)

 

1. Update SAMM section C11.9.6.5.1.4.:

FROM:

C11.9.6.5.1.4. Contract Administrative Services Surcharge. If contracts were used to acquire any portion of SDAF articles or services provided on a case line, a proportionate calculated Contract Administration Services (CAS) surcharge should be applied based on the units being sold and should reconcile with the SDAF FAW.

TO:

C11.9.6.5.1.4. Contract Administrative Services Surcharge.

C11.9.6.5.1.4.1. Defense Contract Management Agency. Defense Contract Management Agency (DCMA) does not charge a Contract Administrative Services (CAS) surcharge for U.S. purchases (i.e., procurements conducted by and for the benefit of U.S. forces). SDAF procurements are considered U.S. purchases and therefore, CAS should not be applied to case lines that include SDAF-procured defense articles or defense services.

C11.9.6.5.1.4.2. Military Departments / Implementing Agencies. MILDEPs / IAs performing CAS functions will show costs on the SDAF Financial Analysis Worksheet (FAW). Such costs will be incorporated into the SDAF unit price to fund CAS support.