Attachment 1: Security Assistance Management Manual E-Change 756 - Updates to Chapters 3, 5, 9, 15 and 16

1. Revise Section C3.6.2. as follows:

   Current:

   C3.6.2. When preparing a response to a Letter of Request (LOR) for weapons systems or components containing CPI, the Implementing Agency (IA) will coordinate with the DoD ATEA (atexecutiveagent@pentagon.af.mil) to ensure that sensitive technology or program information is defended against unlawful exploitation or loss and that an approved AT plan is in place. The IA must ensure that any necessary AT sustainment mechanisms and associated costs are included in the Letter of Offer and Acceptance (LOA) and certify compliance with AT requirements on the LOA transmittal memorandum forwarded to DSCA (Office of International Operations, Global Execution Directorate, Case Writing and Development Division (IOPS/GEX/CWD)) for LOA processing.

   Revised:

   C3.6.2. When preparing a response to a Letter of Request (LOR) for weapons systems or components containing CPI, the Implementing Agency (IA) will coordinate with the DoD ATEA (atexecutiveagent@pentagon.af.mil) to ensure that sensitive technology or program information is defended against unlawful exploitation or loss and that an approved AT plan is in place. The IA must ensure that any necessary AT sustainment mechanisms and associated costs are included in the Letter of Offer and Acceptance (LOA) and certify compliance with AT requirements on the LOA transmittal memorandum FMS Cover Memorandum (Memo) (see Figure C5.F25.) forwarded to DSCA (Office of International Operations, Global Execution Directorate, Case Writing and Development Division (IOPS/GEX/CWD)) via the Case Tracking System (CTS) for LOA processing.

2. Revise Section C5.4.8.6 as follows:

   Current:

   C5.4.8.6. Permanent Change of Station Costs. The IA notifies the SCO by message of requirements for assignment of permanent change of station (PCS) (but not temporary duty (TDY)) personnel to the purchaser country, including projected start date and duration, rank or grade and specialty, and in-country location. The DSCA (IOPS), the geographic Combatant Command (CCMD), the Department of State, Bureau of Information Resource Management (State (RM)) and Department of State, Bureau of Political-Military Affairs, Office of Regional Security and Arms Transfers (State (PM/RSAT)), and the U.S. Embassy are information addressees. The SCO coordinates with the U.S. Chief of Mission (COM) and reports PCS personnel support cost data, as well as obstacles to their acceptance or support, to the IA. The IA includes PCS personnel support costs in the LOA, adds a note at the bottom of the item description (See Figure C5.F6. for LOA Notes requirement), ensures the PCS block on the Case Detail Document Tab in DSAMS is checked, and lists the PCS requirement and any support problems in the LOA Checklist (formerly the LOA Cover Letter or Transmittal) when the LOA is transmitted to DSCA for countersignature.

   Revised:

   C5.4.8.6. Permanent Change of Station Costs. The IA notifies the SCO by message of requirements for assignment of permanent change of station (PCS) (but not temporary duty (TDY)) personnel to the purchaser country, including projected start date and duration, rank or grade and specialty, and in-country location. The DSCA (IOPS), the geographic Combatant Command (CCMD), the Department of State, Bureau of Information Resource Management (State (RM)) and Department of State, Bureau of Political-Military Affairs, Office of Regional Security and Arms Transfers (State (PM/RSAT)), and the U.S. Embassy are information addressees. The SCO coordinates with the U.S. Chief of Mission (COM) and reports PCS personnel support cost data, as well as obstacles to their acceptance or support, to the IA. The IA includes PCS personnel support costs in the LOA, adds a note at the bottom of the item description (See Figure C5.F6. for LOA Notes requirement), ensures the PCS block on the Case Detail Document Tab in DSAMS is checked, and lists the PCS requirement and any support problems in the LOA Checklist (formerly the LOA Cover Letter or Transmittal) FMS Cover Memorandum (Memo) (see Figure C5.F25.) when the LOA is transmitted to DSCA for countersignature.

3. Revise Section C5.4.16.5. as follows:

   Current:

   C5.4.16.5. Required Documents. The IA will provide a complete LOA package to the PCR Lead seven work days prior to the meeting. The LOA package will include the following documents, as applicable: LOR, LOA document, LOA checklist, MTCR approval by State, 36(b) CNs, EDA approval message, MTDS, related waivers (e.g., NC, Yockey Waiver), COMSEC Approval to Sell letters, Multifunctional Information Distribution System (MIDS) Consortium approval memo, Global Positioning System (GPS) approval memo, Line Item Pricing (RP069) report, Case Remarks (RP084) report, unique notes and any other applicable offline information related to the LOA. Depending on the focus of the PCR, the PCR Lead may identify additional required documents. If an LOA is only waiting for long lead waivers and/or CN and all other case development processes have been complete, the IA should notify the PCR Lead and a PCR can be conducted while waiting for those waivers and/or CN to be completed.

   Revised:

   C5.4.16.5. Required Documents. The IA will provide a complete LOA package to the PCR Lead seven work days prior to the meeting. The LOA package will include the following documents, as applicable: LOR, LOA document, LOA checklist FMS Cover Memorandum (Memo) (see Figure C5.F25.), MTCR approval by State, 36(b) CNs, EDA approval message, MTDS, related waivers (e.g., NC, Yockey Waiver), COMSEC Approval to Sell letters, Multifunctional Information Distribution System (MIDS) Consortium approval memo, Global Positioning System (GPS) approval memo, Line Item Pricing (RP069) report, Case Remarks (RP084) report, unique notes and any other applicable offline information related to the LOA. Depending on the focus of the PCR, the PCR Lead may identify additional required documents. If an LOA is only waiting for long lead waivers and/or CN and all other case development processes have been complete, the IA should notify the PCR Lead and a PCR can be conducted while waiting for those waivers and/or CN to be completed.

4. Revise Section C5.4.17.1.3. as follows:

   Current:

   C5.4.17.1.3. Concurrent with movement of the document to Write status via MILAP, the IA must upload ONLY UNCLASSIFIED off-line documentation into the CTS application no later than 24 hours after the MILAP submission. Off-line documentation must include all applicable supporting files (editable LOA Checklist, LOR, MTDS, MCTR approval, etc.), that supports preparation of the case.

   Revised:

   C5.4.17.1.3. Concurrent with movement of the document to Write status via MILAP, the IA must upload ONLY UNCLASSIFIED off-line documentation into the CTS application no later than 24 hours after the MILAP submission. Off-line documentation must include all applicable supporting files (editable LOA Checklist FMS Cover Memorandum (Memo) (see Figure C5.F25.), LOR, MTDS, MTCR approval, etc.), that supports preparation of the case.

5. Revise Section C5.4.18.4. as follows:

   Current:

   C5.4.18.4. Previous Versions of the Document. When LOA documents are restated, a copy of the previously approved version must be included along with the restated version as a part of the electronic package. When LOA documents have been rejected and are resubmitted for countersignature, the electronic package must include the returned version as well as the new version. If there are concerns, changes must be clearly identified in DSAMS Case Remarks and the LOA Checklist. If no changes were made in response to a return reason that was identified, DSAMS Case Remarks and the LOA Checklist must provide the rationale. The IA should contact the individual(s) who initiated the return action to discuss the reason for the return and corrective action prior to resubmission to DSCA (IOPS/GEX/CWD) to avoid further returns or delays in processing.

   Revised:

   C5.4.18.4. Previous Versions of the Document. When LOA documents are restated, a copy of the previously approved version must be included along with the restated version as a part of the electronic package. When LOA documents have been rejected and are resubmitted for countersignature, the electronic package must include the returned version as well as the new version. If there are concerns, changes must be clearly identified in DSAMS Case Remarks and the LOA Checklist FMS Cover Memorandum (Memo). If no changes were made in response to a return reason that was identified, DSAMS Case Remarks and the LOA Checklist FMS Cover Memo must provide the rationale. The IA should contact the individual(s) who initiated the return action to discuss the reason for the return and corrective action prior to resubmission to DSCA (IOPS/GEX/CWD) to avoid further returns or delays in processing.

6. Add Section C5.4.18.8. and C5.F25. as follows:

   C5.4.18.8. Foreign Military Sales Cover Memorandum. All documents must be sent with the FMS cover memorandum (see Figure C5.F25.)

   Insert Figure C5.F25. Foreign Military Sales Cover Memorandum

7. Revise Section C9.7.1.2.6.5. as follows:

   Current:

   C9.7.1.2.6.5. Implementing Agencies. The IAs will communicate the request to use a unique payment schedule on the LOA checklist upon MILDEP Approval (MILAP), and subsequently upload documentation into the Case Tracking System (CTS) for review and approval by the DSCA (Office of International Operations, Global Execution Directorate, Case Writing and Development Division (IOPS/GEX/CWD)).

   Revised:

   C9.7.1.2.6.5. Implementing Agencies. The IAs will communicate the request to use a unique payment schedule on the LOA checklist FMS Cover Memorandum (Memo) (see Figure C5.F25.) upon MILDEP Approval (MILAP), and subsequently upload documentation into the Case Tracking System (CTS) for review and approval by the DSCA (Office of International Operations, Global Execution Directorate, Case Writing and Development Division (IOPS/GEX/CWD)).).

8. Revise Section C9.8.5.2.2.6. as follows:

   Current:

   C9.8.5.2.2.6. Implementing Agencies. The IA will communicate the request to use a unique payment schedule on the LOA checklist upon MILAP, and subsequently upload documentation into the Case Tracking System (CTS) for review and approval by the DSCA (Office of International Operations, Global Execution Directorate, Case Writing and Development Division (IOPS/GEX/CWD)) and DSCA (OBO/FPRE) CFD.

   Revised:

   C9.8.5.2.2.6. Implementing Agencies. The IA will communicate the request to use a unique payment schedule on the LOA checklist FMS Cover Memorandum (Memo) (see Figure C5.F25.) upon MILAP, and subsequently upload documentation into the Case Tracking System (CTS) for review and approval by the DSCA (Office of International Operations, Global Execution Directorate, Case Writing and Development Division (IOPS/GEX/CWD)) and DSCA (OBO/FPRE) CFD.

9. Revise Section C9.9.3. as follows:

   Current:

   C9.9.3. Payment Schedule Revisions. Payment schedule updates are necessary to reflect revisions to delivery schedules, scope changes, pricing updates, actual contract award dates, contractor payment milestone revisions, etc. IAs will review payment schedules during the annual case review process to determine if any updates are required. Additionally, IAs will update the payment schedules on LOAs that require Congressional Notification when the primary contract for procurement lines has been awarded. On a quarterly basis, The DSCA (OBO/FPRE) Regional Division will provide the IAs with a list of the cases for which DSCA recommends updating the payment schedule to reduce early collections. The IA will update all "months" fields (including the Delivery Schedule, when applicable) for each line of the LOA, as well as the pricing for the lines. DSCA (IOPS/GEX/CWD) will then use the DSAMS payment schedule curves to recalculate the payment schedule. IAs will update payment schedules via case modification or amendment, as appropriate, and in consideration of specific partner requirements. IAs must communicate with the Partner prior to modification and provide the partner a copy of all modifications to inform them of the revised payment schedule and updated delivery schedules. IAs may also update payment schedules as a result of a review (Financial Management Review (FMR), Security Assistance Management Review (SAMR), case review, Program Management Review (PMR), etc.) or if deemed necessary during the modification or amendment process. IAs must clearly communicate unique payment schedule requests in the LOA Checklist, DSAMS Case Remarks, and/or via the Letter of Request (LOR) for country unique payment schedules. Absent unique payment schedule guidance, DSCA (IOPS/GEX/CWD) will continue to prepare the payment schedule in accordance with defined business processes.

   Revised:

   C9.9.3. Payment Schedule Revisions. Payment schedule updates are necessary to reflect revisions to delivery schedules, scope changes, pricing updates, actual contract award dates, contractor payment milestone revisions, etc. IAs will review payment schedules during the annual case review process to determine if any updates are required. Additionally, IAs will update the payment schedules on LOAs that require Congressional Notification when the primary contract for procurement lines has been awarded. On a quarterly basis, The DSCA (OBO/FPRE) Regional Division will provide the IAs with a list of the cases for which DSCA recommends updating the payment schedule to reduce early collections. The IA will update all "months" fields (including the Delivery Schedule, when applicable) for each line of the LOA, as well as the pricing for the lines. DSCA (IOPS/GEX/CWD) will then use the DSAMS payment schedule curves to recalculate the payment schedule. IAs will update payment schedules via case modification or amendment, as appropriate, and in consideration of specific partner requirements. IAs must communicate with the Partner prior to modification and provide the partner a copy of all modifications to inform them of the revised payment schedule and updated delivery schedules. IAs may also update payment schedules as a result of a review (Financial Management Review (FMR), Security Assistance Management Review (SAMR), case review, Program Management Review (PMR), etc.) or if deemed necessary during the modification or amendment process. IAs must clearly communicate unique payment schedule requests in the LOA Checklist FMS Cover Memorandum (Memo) (see Figure C5.F25.), DSAMS Case Remarks, and/or via the Letter of Request (LOR) for country unique payment schedules. Absent unique payment schedule guidance, DSCA (IOPS/GEX/CWD) will continue to prepare the payment schedule in accordance with defined business processes.

10. Revise Table C15.T3a., Section C15.3.13.1., add Figure C15.F2., and renumber subsequent figures as appropriate:

    Current:

    #	Item	Use
    5j	Military Approval (MILAP)	Once the IA enters the MILAP milestone, the BPC case will move to "Write" status (WSTATUS) in DSAMS-BPC. The IA will upload the LOA checklist, relevant planning documentation such as a memorandum of request (MOR), final Training and Equipment List (TEL), etc. and any required supporting documentation such as waivers/approvals in the CTS. This kicks off the writing process with DSCA (IOPS/GEX/CWD) prior to formal review with DSCA reviewers, the IA, and State.

    C15.3.13.1. Submittal to the Defense Security Cooperation Agency Case Writing and Development Division. The IA will submit the BPC case electronic package (ePKG) to DSCA (IOPS/GEX/CWD) as early as possible to allow adequate time for final stage processing and review before obligation of funds and return of excess funds for other uses. A BPC case ePKG must include the checklist, planning document (e.g. MOR, TEL, etc.), the draft Congressional Notification (CN) document, the direction to begin BPC case development, and any significant changes to the planning document, as applicable (e.g. MOR, TEL, etc.). For BPC cases, when the IA completes development of the BPC case, the IA posts MILAP. The IA should provide MILAP in DSAMS-BPC at least 60 days before the BPC program funds expire for new obligation. The BPC case moves to DSCA (IOPS/GEX/CWD) for review and preparation of the final version of the BPC case WSTATUS. For training grants, when the IA completes development, the IA posts BPCCMP.

    Revised:

    #	Item	Use
    5j	Military Approval (MILAP)	Once the IA enters the MILAP milestone, the BPC case will move to "Write" status (WSTATUS) in DSAMS-BPC. The IA will upload the LOA checklist BPC Cover Memorandum (see Figure C15.F2.), relevant planning documentation such as a memorandum of request (MOR), final Training and Equipment List (TEL), etc. and any required supporting documentation such as waivers/approvals in the CTS. This kicks off the writing process with DSCA (IOPS/GEX/CWD) prior to formal review with DSCA reviewers, the IA, and State.

    C15.3.13.1. Submittal to the Defense Security Cooperation Agency Case Writing and Development Division. The IA will submit the BPC case electronic package (ePKG) to DSCA (IOPS/GEX/CWD) as early as possible to allow adequate time for final stage processing and review before obligation of funds and return of excess funds for other uses. A BPC case ePKG must include the BPC Cover Memorandum (see Figure C15.F2.) checklist, planning document (e.g. MOR, TEL, etc.), the draft Congressional Notification (CN) document, the direction to begin BPC case development, and any significant changes to the planning document, as applicable (e.g. MOR, TEL, etc.). For BPC cases, when the IA completes development of the BPC case, the IA posts MILAP. The IA should provide MILAP in DSAMS-BPC at least 60 days before the BPC program funds expire for new obligation. The BPC case moves to DSCA (IOPS/GEX/CWD) for review and preparation of the final version of the BPC case WSTATUS. For training grants, when the IA completes development, the IA posts BPCCMP.

    Insert Figure C15.F2. Building Partner Capacity Cover Memorandum

11. Revise Section C16.2.13. as follows:

    Current:

    C16.2.13. Reduction of Foreign Military Sales Cases at Supply/Services Complete. Upon SSC, the IA is responsible for reviewing the case to determine if a modification to reduce the case value is required. The reduction will be based on the Adjusted SSC Value (ASSV). The ASSV is the minimum amount the IA considers is required to cover current, actual cost and any projected, reasonable amount necessary to cover potential adjustments that may be found during SSC reconciliation in preparation for case closure. Completing SSC reconciliation is not expected or necessary to determine the ASSV or to prepare a case reduction. Case reductions must either cover the Highest Financial Requirement (HFR) at the line level as indicated in the appropriate SC management and accounting systems, or an amount below the line level HFR must be explained sufficiently in the IA comments section of the LOA Checklist.

    Revised:

    C16.2.13. Reduction of Foreign Military Sales Cases at Supply/Services Complete. Upon SSC, the IA is responsible for reviewing the case to determine if a modification to reduce the case value is required. The reduction will be based on the Adjusted SSC Value (ASSV). The ASSV is the minimum amount the IA considers is required to cover current, actual cost and any projected, reasonable amount necessary to cover potential adjustments that may be found during SSC reconciliation in preparation for case closure. Completing SSC reconciliation is not expected or necessary to determine the ASSV or to prepare a case reduction. Case reductions must either cover the Highest Financial Requirement (HFR) at the line level as indicated in the appropriate SC management and accounting systems, or an amount below the line level HFR must be explained sufficiently in the IA comments section of the LOA Checklist FMS or BPC Cover Memoranda (Memos) (see Figure C5.F25. for FMS and Figure C15.F2. for BPC).

Attachment 2: Figure C5.F25. Foreign Military Sales Cover Memorandum

 

 

Click here to view Figure C5.F25.

Click here for a PDF Fillable Form version.

Attachment 3: Figure C15.F2. Building Partner Capacity Cover Memorandum

 

 

Click here to view Figure C15.F2.

Click here for a PDF Fillable Form version.