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

3/22/2001

MEMORANDUM FOR :

DIRECTOR FOR SECURITY ASSISTANCE,
DEFENSE FINANCE AND ACCOUNTING SERVICE -- DENVER CENTER,
ATTN: DFAS-AY/DE

COMMANDER, U.S. ARMY SECURITY ASSISTANCE COMMAND,
ATTN: AMSAC-ME-SE, AMSAC-NE-CM-SE

DEPUTY UNDER SECRETARY OF THE AIR FORCE
INTERNATIONAL AFFAIRS), ATTN: SAF/IAE
DEPARTMENT OF THE AIR FORCE

DIRECTOR OF NAVY INTERNATIONAL PROGRAMS
OFFICE DEPARTMENT OF THE NAVY,
ATTN: 260L

U.S. AIR FORCE SECURITY ASSISTANCE CENTER,
ATTN: AFSAC/CME

DIRECTOR, DEFENSE LOGISTICS AGENCY,
ATTN: DLSCCI, FORT BELVOIR, VA

DIRECTOR, DEFENSE CONTRACTING MANAGEMENT AGENCY,
ATTN: SBFB, ALEXANDRIA, VA

DIRECTOR, NATIONAL IMAGERY AND MAPPING AGENCY,
ATTN: ISROA,M/S D-77,

DIRECTOR, NATIONAL SECURITY AGENCY, ATTN: I12

SUBJECT :

Contract Administrative Services (CAS) Waiver on Spain

A Memorandum of Understanding Between the Ministry of Defense of the Kingdom of Spain and the Department of Defense of the United States of America Regarding Reciprocal Quality Assurance (QA) Services was signed 12 June 2000. This reciprocal agreement authorizes a waiver of QA surcharges on FMS cases (basic or amendments involving CAS-related lines) with acceptance dates on or after the effective date of the agreement (12 June 2000).

Request DFAS-AY/DE load a CAS percentage of 1.0 percent for all Spain Foreign Military Sales (FMS) cases (basic or amendments) accepted on or after 12 June 2000. Also request DFAS-AY/DE remove the Quality Assurance and Inspection (0.5 percent) charges on all FMS cases with an acceptance date of 12 June 2000 or later.

In addition, request all Implementing Agencies task FMS case preparers to do the following:

• Effective immediately, ensure that all future Letter of Offer and Acceptance documents reflect where applicable a FMS CAS surcharge rate of 1.0 percent, versus the standard 1.5 percent for all FMS CAS charges. This is in accordance with the DoDFMR, Volume 15, Chapter 7, paragraph 070405.C. We will ensure that the change is incorporated in the next revision of the DOD 5105-38-M, SAMM.
• Ensure that the next amendment/modification to the cases shown in the attached case listing reflect the correct CAS charge and total ordered value.

If you have any questions or need additional information, the Points of Contact at this Agency are Ms. Cindy Leach, (703)601-3743/e-mail: Cindy.Leach@osd.pentagon.mil or Mr. David Rude, (703)604-6569/e-mail: David.Rude@osd.pentagon.mil.

James A. McQuality
Comptroller

ATTACHMENT : 
As stated

CC :

DCAA-C
DSCA-DLO
DSCA-COMPT-FM (David Rude)
DSCA-COMPT-RM (Bill Spradley)