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

10/18/2024

 

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, SECURITY COOPERATION ACCOUNTING DIRECTORATE, DEFENSE FINANCE AND ACCOUNTING SERVICE, INDIANAPOLIS OPERATIONS 
DIRECTOR OF CYBERSECURITY DIRECTORATE AND DEPUTY NATIONAL MANAGER FOR NATIONAL SECURITY SYSTEMS, NATIONAL SECURITY AGENCY

SUBJECT :

Defense Security Cooperation Agency Policy Memorandum 24-30, DoD Sales to U.S. Companies for Incorporation into End Items [SAMM E-Change 685]

REFERENCE :

  1. DSCA Memorandum, Designation of Authority to Approve Sales to U.S. Industry for Coding Services for Selective Availability Anti-Spoofing Module (SAASM) Chips Pursuant to Section 30 of the Arms Export Control Act (AECA), as amended, October 7, 2020

This memorandum updates general policy and process guidance on Section 30 sales agreements, including moving this guidance from DSCA 24-04 Attachment B to SAMM Appendix 8. Arms Export Control Act (AECA), Section 30 (22 U.S.C. 2770) authorizes the USG to sell defense articles and defense services to U.S. companies in support of direct commercial sales pursuant to an approved export license. In accordance with 10 U.S.C. 382(b), the DSCA Director has the authority to execute, administer, and delegate approval authority of all security cooperation programs and activities of the Department of Defense involving the provision of defense articles, military training, and other defense-related services by grant, loan, cash sale, or lease. When the sale is approved by DSCA, the Implementing Agency concludes and executes the sale agreement with the requesting U.S. company.

Of note, this updates the SAMM to include DSCA's delegation of approval authority for Section 30 Sales of coding of Selective Availability Anti-Spoofing Module to Air Force Life Cycle Management Center in accordance with the reference. The policy in the attachment is incorporated into the SAMM Appendix 8 at https://samm.dsca.mil. If you have questions concerning this guidance, please contact DSCA (Office of Strategy, Plans, and Policy, Execution Policy and Analysis Directorate (SPP/EPA)) at dsca.ncr.spp.mbx.epa@mail.mil.

David Ferrari 
Assistant Director 
Strategy, Plans, and Policy

ATTACHMENT : 
SAMM E-Change 685 - DoD Sales to U.S. Companies for Incorporation into End Items

Security Assistance Management Manual E-Change 685 
DoD Sales to U.S. Companies for Incorporation into End Items

 

  1. Add SAMM Appendix 8, Section 30 Sales

    See Appendix 8 Section 30 Sales for content.

  2. Update SAMM Section C4.3.13. to:

    C4.3.13. Department of Defense Support to Direct Commercial Sales. U.S. industry may request defense articles and services from the DoD to support a DCS to a partner or international organization. Defense articles and/or services provided to U.S. industry must be accomplished pursuant to applicable statutory authority including AECA, section 30 (22 U.S.C. 2770), which authorizes the sale of defense articles or defense services to U.S. companies at not less than their estimated replacement cost (or actual cost in the case of services) for incorporation into end items to be sold by such company on a direct commercial basis to a friendly partner or international organization. Appendix 8, Section 30 Sales further clarifies authorized DoD support (articles or services) under this section. It is important that defense industry representatives identify early in the DCS planning process whether support from the DoD will be required. If DoD support is deemed necessary, meetings with DoD representatives should be arranged to discuss the level of support required and the method for funding the associated costs.

  3. Update SAMM Section C6.4.10.8. to:

    C6.4.10.8. Supply Discrepancy Report Financial Guidelines. AECA, section 21 (22 U.S.C. 2761) and AECA, section 22 (22 U.S.C. 2762) require that the USG recover full costs. This requirement applies to SDRs. When purchasers re-requisition items, the current price is paid even if the item was initially released at a lower price. Purchaser problems involving Government Furnished Equipment (GFE) and Government Furnished Materiel (GFM) obtained under AECA, section 30 (22 U.S.C. 2770) (see Appendix 8, Section 30 Sales) should be addressed to the U.S. contractor possessing the GFE/GFM. FMS funding and FMS SDR processing do not apply to these sales. GFE/GFM items purchased under the auspices of an FMS case are processed under normal SDR guidelines.