Security Assistance Management Manual E-Change 683 
Administrative Expenses for Foreign Government Representatives

1. Update SAMM Section C4.5.1.:

   FROM:

   C4.5.1. Administrative Expenses for Foreign Government Representatives. The USG does not serve as the disbursing agent for funds received under LOAs unless those funds are required for defense articles and services provided by DoD, another federal agency, or through a DoD procurement contract. LOAs must not include transportation, lodging, per diem, or other administrative expenses of foreign Government representatives even though such expenses may relate to the procured materiel and/or services. The only exception to this prohibition is if the FMS purchaser requests the LOA to include the payment of Travel and Living Allowance (TLA) for international students receiving training under an LOA. See Section C10.13. regarding TLA. Foreign purchasers may not use LOAs to lease commercial or General Services Administration (GSA) vehicles. Foreign purchasers are responsible for making and paying for these arrangements outside the FMS process.

   TO:

   C4.5.1. Administrative Expenses for Foreign Government Representatives. The USG does not serve as the disbursing agent for funds received under LOAs for commercial services or items directly obtained by foreign government or FMS purchaser authorized officials unless those funds are required for defense articles and services provided by DoD, another federal agency, or through a DoD procurement contract. This disbursing agent limitation does not apply to the use of LOA funds required for defense articles and defense services provided by DoD, another federal agency, or through a DoD procurement contract. LOAs funds are not available to pay for commercial must not include transportation, commercial lodging, per diem, or other administrative expenses obtained by of foreign gGovernment or FMS purchaser authorized officials even though such expenses may be indirectly related to FMS support relate to the procured materiel and/or services. Foreign purchasers may not use LOAs to lease commercial or General Services Administration (GSA) vehicles. Foreign purchasers are responsible for making and paying for these arrangements outside the FMS process.

   C4.5.1.1. The only exceptions to this prohibition are:

   C4.5.1.1.1. The FMS purchaser may request LOAs funding DoD-provided training include the payment of Travel and Living Allowance (TLA) and unanticipated expenses for commercial health care for international students receiving training under an LOA. See Chapter 10 regarding expenses allowed on LOAs for International Military Students (IMS).

   C4.5.1.1.2. The FMS purchaser may request that the fully nationally-funded LOA utilized for obtaining FMS support for its dedicated foreign training detachment include its detachment personnel's expenses. Foreign detachment personnel are not considered IMS because the purpose of the foreign training detachment is for the FMS purchaser to train its authorized officials, rather than obtaining DoD-provided training. Allowable expenses on nationally-funded FMS cases supporting foreign detachments include the following payments for its authorized officials while participating in the dedicated foreign training detachment on DoD installations in the United States: 1) commercial medical, travel, lodging, and/or vehicle services directly procured from a commercial source by the FMS purchaser's authorized official; and/or 2) per diem. If requested by the FMS purchaser, the authorized dependents of the detachment officials can receive disbursement services limited to payment of medical services, which are paid through the FMS LOA to a commercial provider. FMS LOA funds are not permitted to be used to provide disbursing agent support for commercial medical insurance. An FMS purchaser's dedicated foreign training detachment is limited to the FMS purchaser's authorized officials participating in non-DoD training within a dedicated space on a DoD installation in the United States for a committed multi-year time period with FMS-procured major defense equipment. Since these detachment officials are not IMS, a Security Cooperation Training Management System (SC-TMS) generated invitational travel authorization cannot be processed. The lack of a SC-TMS generated invitational travel authorization does not preclude an Implementing Agency (IA), if necessary, from issuing its own invitational travel authorization. If requested by the FMS purchaser, the FMS LOA may also include such administrative expenses for the foreign training detachment personnel while they are participating as their government's representative in DoD-hosted exercises in the United States.

   C4.5.1.2. For disbursing agent support, the commercial services and per diem must be on a dedicated line using the Military Articles & Service List (MASL) "ADMC0MSERV0FF, Administrative Commercial Services, FMS Purchaser Officials" that is limited to 10% of the current total case value. This line includes the standard "Administrative Disbursing Services" LOA note in Appendix 6. Further, any DoD services to administer these payments must be case-funded, as stated in Table C9.T2a.

2. Add the following to SAMM Table C9.T2a.:

   Case Execution
   Row	Activity	Admin	Case	Non-Standard	Frequency
   CE49	Dedicated administrative disbursing services when requested by the international partner; applies only for nationally-funded LOAs administratively supporting international military students and the FMS purchaser's dedicated foreign training detachments with the standard "Administrative Disbursing Services" LOA note.		X

3. Add Appendix 6 Note:

   Administrative Disbursing Services

   FMS : Yes
   BPC : No
   Note Input Responsibility :	IA
   Date Range of Use 1,2 :	ALL
   References
   See Section C4.5.1.1.
   Note Usage
   Mandatory for Foreign Military Sales (FMS) Letters of Offer and Acceptance (LOAs) funded solely with national funds that include commercial services (medical, travel, lodging, or vehicle) or per diem for 1) FMS purchaser authorized officials participating in dedicated foreign training detachments on DoD installations in the United States and 2) international military students. The IA must remove any expenses in the note that are not requested by the FMS purchaser and that are not authorized pursuant to Chapter 10.
   Note Text
   "The use of this line is strictly limited for the Foreign Military Sales (FMS) purchaser's authorized official while that official was participating [select one: "as an international military student" or "in the FMS purchaser's dedicated foreign training detachment"] in the United States and is strictly limited to: payment of commercial medical, travel, lodging, and/or vehicle services directly procured from a commercial source by the FMS purchaser's authorized official; the payment of commercial medical services directly procured by FMS purchaser's authorized official's authorized dependent; and payment of per diem for FMS purchaser's authorized officials [include the following only for dedicated foreign training detachments: at the FMS purchaser's established per diem rate on FMS purchaser directed travel]. The amount of this line must not exceed 10% of the total current case value. The FMS purchaser is not permitted to seek payment for any other type of commercial bills from this case line. The FMS purchaser is not permitted to seek payment for commercial bills procured by persons who are not the FMS purchaser's authorized official or an authorized dependent in the United States. The FMS purchaser acknowledges that it is not the U.S. Government's responsibility to determine the validity or accuracy of any commercial bill presented for payment from this case line. The FMS purchaser will designate a representative to review all commercial bills before presenting them as authorized FMS purchaser valid bills for payment by the U.S. Government. The FMS purchaser acknowledges that the U.S. Government is not authorized to negotiate the amount of commercial charges or resolve any disputes relating to any of the FMS purchaser's authorized officials' commercial expenditures. The FMS purchaser acknowledges that the U.S. Government has no legal responsibility to ensure timely payment of any bill paid by this case line. The U.S. Government has no privity of contract and no legal responsibility to provide any payment to any of the FMS purchaser's authorized officials' direct commercial providers. The U.S. Government will not provide payment to the FMS purchaser's authorized official's commercial provider or pay per diem if the amount of the bill is in excess of funds on this case line. The FMS purchaser acknowledges that any DoD disbursing agent support provided by this case line cannot be the basis for the FMS purchaser to seek any relief from the U.S. Government through a Supply Discrepancy Report. The existence of this case line does not absolve or modify the FMS purchaser's authorized officials' or the officials' authorized dependents' legal responsibility or contract liability to ensure timely payment for their procured commercial service."

4. Update SAMM Section C10.13.2.2.

   FROM:

   C10.13.2.2. TLA includes travel from country to CONUS training location (and also between training locations) and the living allowance comprised of lodging, meals and incidentals. DSCA will not consider a waiver to pay any TLA for any non-students. For any non-students, including those traveling on a Foreign Visit Request, their country must directly pay for their travel to CONUS and also their per diem.

   TO:

   C10.13.2.2. TLA includes travel from country to the CONUS training location (and also between training locations) and the living allowance comprised of lodging, meals and incidentals. DSCA will not consider a waiver to pay any TLA for any non-students. For any non-students, including those traveling on a Foreign Visit Request, their country must directly pay for their travel to CONUS and also their per diem. 

5. Update SAMM Section C10.13.2.3.

   FROM:

   C10.13.2.3. The USG does not provide travel management for international partners when foreign partner personnel are not formally on Invitational Travel Orders (ITO) to participate in U.S.-provided formal or informal training, instruction, or evaluations. Accordingly, Foreign Liaison Officers and Country Liaison Officers are not eligible for TLA. DSCA will not allow the inclusion of TLA on FMS cases for such travel that is not in support of FMS partner training under any circumstances.

   TO:

   C10.13.2.3. Except as described in Section C4.5.1., the USG does not provide travel management for international partners when foreign partner personnel are not formally on Invitational Travel Orders (ITO) to participate in U.S.-provided formal or informal training, instruction, or evaluations. Accordingly, Foreign Liaison Officers and Country Liaison Officers are not eligible for TLA. DSCA will not allow the inclusion of TLA on FMS cases for such travel that is not in support of FMS partner training under any circumstances. 

6. Update SAMM Section C10.13.2.6. to:

   FROM:

   C10.13.2.6. Military Departments (MILDEPs) are authorized to charge appropriate management costs to administer payment of TLA to IMS under FMS cases.

   TO:

   C10.13.2.6. Military Departments (MILDEPs) are authorized to must charge appropriate management costs to administer payment of TLA to IMS under FMS cases. See Table C9.T2a.