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

5/30/2024 

 

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 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 24-38, Storage of Items Identified for Foreign Military Sales [SAMM E-Change 607]

REFERENCE :

  1. Defense Security Cooperation Agency Policy Memorandum 23-16, "DoD Component Cost Recovery of Security Assistance Functions [SAMM E-Change 625]," March 30, 2023

This memorandum updates the Security Assistance Management Manual (SAMM) Chapter 5 to reinforce the requirement for Implementing Agencies to include storage costs of items associated with development of an end item for Foreign Military Sales in a Letter of Offer and Acceptance (LOA). This update supplements the reference on cost recovery guidance and procedures. The policy in the attachment is incorporated into the SAMM at https://samm.dsca.mil.

If you have questions on this memorandum, 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 607 - Storage of Items Identified for Foreign Military Sales

Security Assistance Management Manual E-Change 607 
Storage of Items Identified for Foreign Military Sales

1. Add SAMM Section C5.4.7.10.11. as:

C5.4.7.10.11. Storage of Items. As LOAs are drafted, IAs will include estimated costs which may be incurred to store items identified for FMS at USG or contractor facilities prior to integration into the final end item or before delivery to the customer. See SAMM Section C9.3.1., Table C9.T4., and Section C7.11.1. for information on financial policies, types of storage costs, and notices of availability. In addition, see FMR Volume 15 Chapter 7 for information on above-the-line transportation services and storage guidance.