DSCA 26-123 | Defense Security Cooperation Agency

Incorporated

Policy changes from this SAMM E-Change memo have been incorporated into the SAMM.

DEFENSE SECURITY COOPERATION AGENCY
2800 DEFENSE PENTAGON
WASHINGTON, D.C. 20301-2800

9/23/2026

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 26-123, Rough Order of Magnitude Pricing Clarification [SAMM E-Change 885]

REFERENCE :

Defense Security Cooperation Agency Policy Memorandum 26-45 (CUI), Rough Order of Magnitude Pricing, March 18, 2026 (CAC-Enabled SAMM Memo, DoW CAC Holders only)
Defense Security Cooperation Agency Policy Memorandum 26-65, Changes to Responding to Price and Availability [SAMM E-Change 837]

This memorandum updates the Security Assistance Management Manual (SAMM) with clarification changes to the Rough Order of Magnitude Pricing policy (references a and b). This memorandum does not introduce any substantive policy changes. The policy in the attachment is incorporated into the DSCA SAMM at https://samm.dsca.mil.

If you have any questions concerning this guidance or questions relating to the SAMM, please contact DSCA (Office of Strategy, Plans, and Policy, Execution Policy and Analysis Directorate (SPP/EPA)) at dsca.ncr.spp.mbx.epa@mail.mil.

Hussam H. Bader
Acting Assistant Director
Strategy, Plans, and Policy

ATTACHMENT :
1. DSCA 26-123 - SAMM Rough Order of Magnitude Pricing Clarification
2. E-Change 885 - CAC- Enabled SAMM Rough Order of Magnitude Pricing Clarification

Attachment 1: Security Assistance Management Manual E-Change 26-123
Rough Order of Magnitude Clarification

Update C5.4 "Rough Order of Magnitude Pricing" as follows:

From:

C5.4. - Rough Order of Magnitude Pricing.

Rough Order of Magnitude (ROM) Pricing Memorandum is prepared by the Implementing Agencies (IAs) (Military Department organizations and Defense Agencies) in response to LORs for P&A, except in instances of international competitions or building partner capacity (BPC).

C5.4.1. Definition. A ROM is an initial, non-binding cost estimate intended for planning and feasibility assessment, giving the foreign government or international organization (partner) a general idea of the potential cost and availability of defense articles or services. Furnishing this data does not constitute a commitment for the USG to offer for sale the articles and services. The IA will respond within 30 days using the ROM memorandum template (Template can be found in the CAC-SAMM as attachment A to DSCA 26-45 (CUI). (DoW CAC holders only). Consistent with the existing manpower policy in Table C9.T2A., IAs and program offices will prepare the first ROM response using the FMS administrative surcharge as the appropriate source of funds. Any subsequent requests for the same item from the same partner will require a planning case LOA. In the event an IA determines that providing a ROM response prior to completion of Technology Release and Foreign Disclosure approval would constitute a false impression in accordance with DoDD 5230.11, the IA will provide a negative response directing the partner to submit a Letter of Request (LOR) for Letter of Offer and Acceptance (LOA).

C5.4.2. Rough Order of Magnitude Memorandum Pricing Format. Table C5.T7. presents the information included in ROM pricing data.

Table C5.T7. Rough Order of Magnitude Pricing Memorandum Criteria

#	Rough Order of Magnitude Pricing Memorandum Criteria
1	Estimated cost of total system or capability. Includes estimated cost of major item, training, or service. Includes estimated cost of ancillary support equipment necessary for the operation and maintenance of the requested system. Includes estimated cost of Integrated Logistics Support elements, training, and technical support. Includes adjustments for inflation. If inflation trends on a given system are not known, Under Secretary of Defense (Comptroller) (USD (C)) standard inflation factors are used. Includes estimated administrative charges.
2	Estimated availability of total system or capability.
3	The following statements are included in all ROM Memorandum responses: False Impression Statement: The information provided is for planning purposes only and is not to be construed as a commitment by the U.S. Government to sell the articles or services described or to provide the information requested. Detailed pricing and a decision by the U.S. Government on its willingness to sell defense articles or services will be provided in response to a formal Letter of Request (LOR) for Letter of Offer and Acceptance (LOA) and will be subject to change based on the requirements of the purchaser. The ROM pricing provided is not valid for the purpose of preparing an LOA. This data is for budgetary/planning/review purposes only and is intended to assist your government's determination whether to request an LOA. It does not represent a commitment on the part of the U.S. Government to provide the defense articles (including related technical information) or services mentioned.

#

Rough Order of Magnitude Pricing Memorandum Criteria

1

Estimated cost of total system or capability.

Includes estimated cost of major item, training, or service.
Includes estimated cost of ancillary support equipment necessary for the operation and maintenance of the requested system.
Includes estimated cost of Integrated Logistics Support elements, training, and technical support.
Includes adjustments for inflation. If inflation trends on a given system are not known, Under Secretary of Defense (Comptroller) (USD (C)) standard inflation factors are used.
Includes estimated administrative charges.

2

Estimated availability of total system or capability.

3

The following statements are included in all ROM Memorandum responses:

False Impression Statement: The information provided is for planning purposes only and is not to be construed as a commitment by the U.S. Government to sell the articles or services described or to provide the information requested. Detailed pricing and a decision by the U.S. Government on its willingness to sell defense articles or services will be provided in response to a formal Letter of Request (LOR) for Letter of Offer and Acceptance (LOA) and will be subject to change based on the requirements of the purchaser.
The ROM pricing provided is not valid for the purpose of preparing an LOA. This data is for budgetary/planning/review purposes only and is intended to assist your government's determination whether to request an LOA. It does not represent a commitment on the part of the U.S. Government to provide the defense articles (including related technical information) or services mentioned.

To:

C5.4. - Rough Order of Magnitude Pricing.

Rough Order of Magnitude (ROM) Pricing Memorandum is prepared by the Implementing Agencies (IAs) (Military Department organizations and Defense Agencies) in response to LORs for P&A, except in instances of international competitions or building partner capacity (BPC).

C5.4.1. Definition. A ROM is an initial, non-binding cost estimate intended for planning and feasibility assessment, giving the foreign government or international organization (partner) a general idea of the potential cost and availability of defense articles or services. Furnishing this data does not constitute a commitment for the USG to offer for sale the articles and services. The IA will respond within 30 days using the ROM memorandum template (Template can be found in the CAC-SAMM as attachment A to DSCA 26-45 (CUI). (DoW CAC holders only). Consistent with the existing manpower policy in Table C9.T2A., IAs and program offices will prepare the first ROM response using the FMS administrative surcharge as the appropriate source of funds. Any subsequent requests for the same item from the same partner will require a planning case LOA. In the event an IA determines that providing a ROM response prior to completion of Technology Release and Foreign Disclosure approval would constitute a false impression in accordance with DoDD 5230.11, the IA will provide a negative response directing the partner to submit a Letter of Request (LOR) for Letter of Offer and Acceptance (LOA).

C5.4.2. Rough Order of Magnitude Memorandum Pricing Format. Table C5.T7. presents the information included in ROM pricing data.

Table C5.T7. Rough Order of Magnitude Pricing Memorandum Criteria

#	Rough Order of Magnitude Pricing Memorandum Criteria
1	Total estimated cost of the system or capability (Total Package Approach). The estimated cost is a single, rolled-up estimate that includes, but is not limited to, the individual line-item costs below: Includes estimated cost of major item, training, or service. Includes estimated cost of ancillary support equipment necessary for the operation and maintenance of the requested system. Includes estimated cost of Integrated Logistics Support elements, training, and technical support. Includes adjustments for inflation. If inflation trends on a given system are not known, Under Secretary of War (Comptroller) (USW (C)) standard inflation factors are used. Includes estimated administrative charges.
2	Estimated availability of total system or capability.
3	The following statements are included in all ROM Memorandum responses: False Impression Statement: The information provided is for planning purposes only and is not to be construed as a commitment by the U.S. Government to sell the articles or services described or to provide the information requested. Detailed pricing and a decision by the U.S. Government on its willingness to sell defense articles or services will be provided in response to a formal Letter of Request (LOR) for Letter of Offer and Acceptance (LOA) and will be subject to change based on the requirements of the purchaser. The ROM pricing provided is not valid for the purpose of preparing an LOA. This data is for budgetary/planning/review purposes only and is intended to assist your government's determination whether to request an LOA. It does not represent a commitment on the part of the U.S. Government to provide the defense articles (including related technical information) or services mentioned.

#

Rough Order of Magnitude Pricing Memorandum Criteria

1

Total estimated cost of the system or capability (Total Package Approach). The estimated cost is a single, rolled-up estimate that includes, but is not limited to, the individual line-item costs below:

Includes estimated cost of major item, training, or service.
Includes estimated cost of ancillary support equipment necessary for the operation and maintenance of the requested system.
Includes estimated cost of Integrated Logistics Support elements, training, and technical support.
Includes adjustments for inflation. If inflation trends on a given system are not known, Under Secretary of War (Comptroller) (USW (C)) standard inflation factors are used.
Includes estimated administrative charges.

2

Estimated availability of total system or capability.

3

The following statements are included in all ROM Memorandum responses:

False Impression Statement: The information provided is for planning purposes only and is not to be construed as a commitment by the U.S. Government to sell the articles or services described or to provide the information requested. Detailed pricing and a decision by the U.S. Government on its willingness to sell defense articles or services will be provided in response to a formal Letter of Request (LOR) for Letter of Offer and Acceptance (LOA) and will be subject to change based on the requirements of the purchaser.
The ROM pricing provided is not valid for the purpose of preparing an LOA. This data is for budgetary/planning/review purposes only and is intended to assist your government's determination whether to request an LOA. It does not represent a commitment on the part of the U.S. Government to provide the defense articles (including related technical information) or services mentioned.