Acceptance Date -- The date which appears on the acceptance portion of LOAs and indicates the calendar date on which a foreign buyer agrees to accept the items and conditions contained in the FMS offer.

Acceptance, Letter of Offer and -- US document by which the USG offers to sell to a foreign government or international organization defense articles and defense services pursuant to the Arms Export Control Act, as amended. The LOA lists the items and/or services, estimated costs, the terms and conditions of sale, and provides for the foreign government’s signature to indicate acceptance. May be referred to as "DD Form 1513," which is now replaced but may remain in effect for many programs.

Accepted LOA (Case) -- An FMS offer and acceptance for definitized requirements which has been signed by the designated representative of the eligible recipient and for which the initial deposit or other financial arrangements have been completed by the Purchaser.

Accessorial Cost -- The value of expenses incidental to issues, sales, and transfers of materiel which are not included in the standard price or contract cost of materiel; also any expenses incidental to the performance of services, training, etc. May be commonly referred to by the higher level generic code "LO0" for all types of accessorial costs.

Accrued Costs -- The financial value of delivered articles and services and incurred costs reported to SAAC via DD Forms 1517. Incurred costs represent disbursements for which no physical deliveries have yet occurred. Examples are: progress payments to contractors, GFM/GFE provided to contractors, and NC.

Adjustment Reply Code (ARC) -- Code which identifies the type of action being taken in reply to the FMS customer Report of Discrepancy (ROD). Codes are transmitted to SAAC by the Implementing Agency in FMS Delivery/Performance Reports. Items with valid ARCs are matched to the ROD file to create "FKG" reply transactions.

Administrative Agency -- The Military Department responsible for the provision of logistical and administrative support to a DoD element in a foreign country or international organization.

Administrative Cost -- The value of costs associated with the administration of FMS. Expenses charged directly to the LOA are not included. May be commonly referred to by the generic code "L6A" for administrative costs.

Amendment, LOA -- A contracted scope change to an existing LOA.

Annual Integrated Assessment of Security Assistance (AIASA) -- Report submitted annually by the US Diplomatic Mission which, in addition to an assessment of the host country’s capabilities, contains recommended and projected levels of security assistance, for preparation of the Congressional Presentation Document, and the annual security assistance budget request.

Arms Transfers (See also Conventional Arms Transfers) -- Defense articles and defense services, such as arms, ammunition, and implements of war, including components thereof, and the training, manufacturing licenses, technical assistance and technical data related thereto, provided by the USG under the FAA, as amended, or the AECA, as amended; other statutory authority; or directly by commercial firms to foreign countries, foreign private firms, or to international organizations. [Executive Order No. 10973, as amended, Administration of Foreign Assistance and Related Functions.]

Arms Transfer Management Group (ATMG) -- An interagency board, chaired by the Under Secretary of State for Security Assistance, Science and Technology, which serves to advise the Secretary of State on matters relating to security assistance program funding levels and arms transfer policies. [Formerly, Arms Export Control Board (AECB)]

Billing Statement -- The DD Form 645 Billing Statement represents the official claim for payment by the USG referred to in the Letter of Offer and Acceptance. It also furnishes an accounting to the FMS purchaser for all costs incurred on his behalf under each agreement.

Blanket Order LOA -- An agreement between a foreign customer and the USG for a specific category of items or services (including training) with no definitive listing of items or quantities. The LOA specifies a dollar ceiling against which orders may be placed.

Budget Year -- The fiscal year following the current fiscal year; the subject of new budget estimates.

Cancelled LOA -- An LOA which was not accepted or funded within prescribed time limitations, or was cancelled by the requesting country or the USG. In the latter case, the USG or purchaser electing to cancel all (or part) of the LOA prior to delivery of defense articles or performance of services shall be responsible for all (or associated) termination costs.

Case -- An LOA which has been accepted by an authorized customer. A contractual sales agreement between the US and an eligible foreign country or international organization. One FMS LOA identifier is assigned for the purpose of identification, accounting, and data processing for each Offer.

Cash in Advance -- US dollar currency, check, or other negotiable instrument required concurrently with the acceptance of a sales Offer.

Cash Sales (DoD) -- Involves either "Cash with Acceptance," payment within a reasonable period not to exceed 120 days after delivery of the rendering of the service, or payments as funds

are required to meet USG liabilities to suppliers under a "Dependable Undertaking." [Sections 21 and 22, AECA]

Cash with Acceptance -- US dollar currency, check, or other negotiable instrument submitted by the customer concurrent with acceptance of sales offer for the full amount shown as the estimated total cost on the LOA.

Closed Case -- An FMS case on which all materiel has been delivered and/or all services have been performed, all financial transactions, including all collections, have been completed, and the customer has received a final statement of account.

Co-Development -- A development project to which more than one government contributes efforts or resources.

Collection -- Receipt in US dollar currencies, checks, or other negotiable instruments from a customer country to pay for defense articles or services, based on accepted LOAs.

Commercial Sale -- Sale made by US industry directly to a foreign buyer which is not administered by the DoD through FMS procedures.

Commercial-Type Items -- Any items, including those expended or consumed in use which, in addition to military use, are used and traded in normal civilian enterprise and which are, or can be, imported or exported through normal international trade channels.

Commitment -- Any communication between a responsible US official and a representative foreign official (including officials of any international organization or supra-national authority) which reasonably could be interpreted as being a promise that the US will provide a foreign government (including international organizations or supra-national authorities) with funds (including long term credit assignments), goods, services, or information.

Commodity Group -- A grouping or range of items which possess similar characteristics, have similar applications, or are susceptible to similar supply management methods.

Commonality -- A quality that applies to material or systems possessing like and interchangeable characteristics enabling each to be used or operated and maintained by personnel trained on the other without additional specialized training, or having interchangeable repair parts or components, and applying to consumable items interchangeably equivalent without adjustment.

Compatibility -- The characteristics or ability of systems to coexist and function without mutual interference.

Completed Case -- A delivered FMS case for which all collections have been completed, but for which an accounting statement has not been furnished to the Purchaser.

Concurrent Spare Parts (CSP) -- Spare parts programmed as an initial stockage related to a major item and normally delivered concurrently with the delivery of the major item.

Congressional Presentation Document (CPD) -- The document presented annually to Congress, describing the proposed Military Assistance and Foreign Military Sales programs, and related SA programs, for Congressional authorizations and appropriations.

Consolidated Data Report (CDR) -- Report submitted by the US Diplomatic Mission, which updates the information contained in the previously submitted AIASA, for preparation of the CPD. The CDR also is known as the CPD update.

Continuing Resolution Authority (CRA) -- Authority to obligate funds against the MAP or IMET, credit financing, or other related appropriation for the new fiscal year under Continuing Resolution Authority granted by Congress in a Joint Resolution making temporary appropriations prior to passage of the regular appropriation act.

Contract Field Services (CFS) -- Services performed by commercial or industrial companies. These services provide instruction and training on the installation, operation, and maintenance of DoD weapons, equipment, and systems.

Conventional Arms Transfers -- The transfer of nonnuclear weapons, aircraft, equipment, and military services from supplier states to recipient states. The US has viewed arms transfers as a useful foreign policy instrument to: strengthen collective defense arrangements, maintain regional military balances, secure US bases, and compensate for the withdrawal of troops. US arms are transferred by grants, by government-to-government sales under FMS, and by private commercial sales.

Cooperative Logistics Supply Support Arrangements (CLSSA) -- FMSO I pre-stockage and storage and FMSO II consumption LOAs designed to provide responsive standard secondary item supply support for US-origin equipment which is in allied and friendly country inventories. [See SAMM Chapter 7]

Cooperative Logistics Support Arrangement -- The combining term for procedural arrangements (cooperative logistics arrangements) and implementing procedures (supplementary procedures) which together support, define, or implement cooperative logistics understandings between the US and a friendly foreign government under peacetime conditions. [JCS Pub 1]

Cooperative Projects -- Jointly managed arrangements between the US and a NATO member country (or countries) or a specific non-NATO country (or countries). These projects, which must be described in a written agreement, provide for the cooperative sharing of the costs of research, development, testing, evaluation, or joint production (including follow-on support) of specific defense articles. With NATO member countries, these projects are designed to further the objectives of standardization, rationalization, and interoperability (RSI). Similar projects with non-NATO member countries serve to enhance the ongoing multinational effort of the participants to improve their conventional defense capabilities. Waivers or reduction of FMS charges (e.g., non-recurring cost recoupment charges, asset use charges and administrative charges are authorized for such projects since they are not normally implemented through the FMS system [Sec. 27, AECA]

Cooperative Research and Development -- Any method by which governments cooperate to make better use of their collective Research and Development resources to include technical

information exchange, harmonizing of requirements, co-development, interdependent R&D, and agreement on standards.

Coproduction (International) -- Method by which items intended for military application are produced or assembled under the provisions of a cooperative agreement that requires the transfer of technical information and know-how from one nation to another. [Draft DoDD 2000.9]

Country Liaison Officer (CLO) -- An officer or non-commissioned officer (NCO) of a foreign military establishment selected by his or her government and attached to a MILDEP or DoD agency for the primary purpose of helping administer trainees from his or her country. For administrative purposes, the CLO is considered to be in a trainee status.

Country Team -- Senior members of USG agencies assigned to a US diplomatic mission overseas, and subject to the direction and supervision of the Chief, US Mission (Ambassador). Team members coordinate USG political, economic, and military activities and policies in the host country.

Credit -- Transactions approved on a case-by-case basis by the Departments of State, Treasury and Defense, which allow repayment of military export sales for periods beyond 120 days after delivery of materiel or performance of service. [Sections 23 and 24, AECA]

Credit Arrangement -- An arrangement with a foreign government under which the US will advance a stipulated amount of credit for financing an FMS or commercial sale to that government. [Sections 23 and 24, AECA]

Credit Guaranty -- A guaranty to any individual corporation, partnership, or other judicial entity doing business in the US (excluding USG agencies other than the Federal Financing Bank) against risks of nonpayment arising out of their financing of credit sales of defense articles and defense services to eligible countries and international organizations. [Section 24, AECA]

Current Fiscal Year -- The fiscal year (1 October -- 30 September) in progress.

Defense Article -- Weapon, weapon system, munition, aircraft, vessel, boat, or other implement of war; any property, installation, commodity, material, equipment, supply, or goods used for the purposes of furnishing military assistance or making military sales; any machinery, facility, tool, material, supply, or other item necessary for the manufacture, production, processing, repair, servicing, storage, construction, transportation, operation, or use of any other defense article or any component or part of any article listed above, but shall not include merchant vessels, major combatant vessels (10 U.S.C.7307), or as defined by the Atomic Energy Act of 1954, as amended (42 U.S.C.2011), source material, by-product material, special nuclear material, production facilities, utilization facilities, or atomic weapons or articles involving Restricted Data. [Section 644(d), FAA and Section 47(3), AECA]

Defense Attache Office -- A DoD organization assigned to a US diplomatic mission overseas for the purposes of overt gathering of military information, representing DoD in the conduct of military liaison activities, and performing as a member of the US country team. Some DAOs

have been designated by the President as responsible for security assistance functions in the host country.

Defense Automatic Addressing System (DAAS) -- DAAS functions as an automated system for routing logistics data traffic and provides document processing and data information services. [DoDD 4000.25]

Defense Business Operations Fund (DBOF) -- A working capital fund. (See the FMR)

Defense Industrial Cooperation -- US activities performed in conjunction with selected foreign countries, which are intended to stimulate the development of foreign defense industrial capabilities, particularly in emerging technologies, for the mutual benefit of all participants.

Defense Information -- Any document, writing, sketch, photograph, plan, model, specification, design, prototype, or other recorded or oral information relating to any defense article, defense service, or major combatant vessel (e.g., DE, SS and above), but shall not include Restricted Data as defined by the Atomic Energy Act of 1954, as amended, and data removed from the Restricted Data category under Section 142d of that Act. [Section 644(e) FAA 61]

Defense Service -- Includes any service, test, inspection, repair, training, publication, or technical or other assistance, or defense information used for the purpose of furnishing military assistance but does not include military education and training activities. [Section 644(f), FAA] For FMS, defense services also include training (AECA Section 47(4)]. For purposes of guidance within this manual, includes military education and training activities and military design and construction services.

Defined Order LOA -- These LOAs are characterized by separately identified line items, which may include individually listed items or dollar value lines for which requisitions (for hardware lines) are initiated by the IA following LOA acceptance.

Delivered Case -- [See Completed Case]

Delivery, Constructive -- Constructive: Delivery of materiel to a carrier for transportation to the consignee, or delivery to a US post office for shipment to the consignee. Actual: Delivery is evidenced by completed shipping documents or listings of delivery at the US post office. The delivery of materiel to the customer or the customer’s designated freight forwarder at point of production, testing, or storage at dockside, at staging areas, or at airports. The performance of services for the Purchaser.

Dependable Undertaking -- A firm commitment by the Purchaser to pay the full amount of a contract for new production or for the performance of defense services which will assure the US against any loss on such contract and to make funds available in such amounts and at such times as may be required by the contract, or for any damages and costs that may accrue from the cancellation of such contract, provided that in the judgment of DoD there is sufficient likelihood that the Purchaser will have the economic resources to fulfill the commitment. [Section 22, AECA]

Designated Country Representative -- Person(s) duly authorized by a foreign government to act on behalf of that government to negotiate, commit, sign contractual agreements, or accept delivery of materiel.

Designator, LOA -- A unique three-letter designator assigned by the implementing agency to each LOA.

Disclosure Authorization -- Authorization by appropriate DoD authority which is required prior to disclosure of classified information to foreign nationals who are cleared by their government to have access to classified information.

Disposable MAP Property -- MAP property for which no further SA requirement exists, including MAP property which does not meet the criteria for utilization screening.

DoD Activity Address Directory System (DoDAADS) -- Provides data elements, identification codes, and clear text addresses needed for materiel requisitioning, marking, shipping document preparation, billing, and similar applications. [DoDD 4000.25]

DoD Direct Credit -- Long-term credit which is directly financed from the appropriation or account available for that purpose. Authority is Section 23 of the Arms Export Control Act, as amended, or pertinent earlier legislation.

Down Payment -- [See Initial Deposit]

Dual Production -- The joint production of defense articles in both the US and other countries. Includes independent productions lines for entire weapon systems, and interdependent production whereby participants produce components for one another.

Economic Support Fund -- Program by which economic assistance is provided on a loan or grant basis to selected foreign governments which are of strategic concern to the US. ESF is used to finance imports of commodities, capital, or technical assistance in accordance with terms of a bilateral agreement or for budgetary support. This enables recipients to devote more resources to defense and security purposes without serious economic or political consequences.

Eligible Recipient (FMS) -- Any friendly foreign country or international organization determined by the President to be eligible to purchase defense articles and defense services, unless otherwise ineligible due to statutory restrictions. [Section 3, AECA]

Eligible Recipient (MAP) -- Any foreign country or international organization determined by the President to be eligible to receive military assistance, unless otherwise ineligible due to statutory restrictions. [Section 508, FAA]

End Item -- A final combination of end products, component parts, or other materiel which is ready for its intended use; e.g., ship, tank, mobile machine shop, aircraft. [JCS Pub 1]

Eurogroup -- European nations working together within NATO to make a better coordinated contribution to the common defense effort and thus strengthen the Alliance.

Extended Training Service Specialists (ETSS) -- DoD military and civilian personnel technically qualified to provide advice, instruction, and training in the installation, operation, and maintenance of weapons, equipment, and systems. ETSS are attached to the SAO but are not listed on the Joint Table of Distribution (JTD). ETSS may be provided for up to one year, unless a longer period is specifically approved by DSCA.

English Comprehension Level (ECL) Examination -- A test of foreign military student proficiency in English listening and reading. A minimum entry level for each course is set by the MILDEPs on the basis of course difficulty and hazard factors.

Excess Defense Articles -- Defense articles owned by the USG and not procured in anticipation of military assistance or sales requirements, or pursuant to a military assistance or sales order, which are in excess of the AFAO and Approved Force Retention Stock of all DoD components at the time such articles are dropped from inventory by the supplying agency for delivery to countries or international organizations. [Sec. 644(g), FAA]

Expendables -- Supplies which are consumed in use, such as ammunition, paint, fuel, cleaning and preserving materials, surgical dressing, drugs, medicines, etc., or which lose their identity, such as spare parts. Sometimes referred to as consumable supplies and material. [JCS Pub 1]

Expenditure Authority (under FMS) -- A document or authority from DFAS-DE to the IA which allows expenditures against obligations previously recorded against an FMS case. The disbursing activity must ensure that cash is available prior to processing the disbursement.

Expenditures -- See Cash Disbursements.

Extended Offer -- A new FMS offer for which a reply from the buyer has not been received within the time limit specified on the letter of offer which is still in effect pending clarification of its status.

Feasibility Study -- Carried out by industry, government agencies, or a combination of both to determine the feasibility of developing and producing a defense article within available resources. The study identifies areas of technical risk, recommends characteristics, and gives the optimum balance between performance, cost, and development time. The study also indicates areas where advances are likely to be necessary for success. It indicates the means by which the recommended solution will be achieved, suggests a program for project definition, development, and production with a preliminary estimate of the costs for these stages.

Federal Financing Bank Financed Sale -- Sale of defense articles or services financed by credit supplied by the Federal Financing Bank. The sale may be made by DoD or directly by US industry. US industry sales are subject to DoD approval.

Field Training Services or FTS -- Engineering and technical services or contract field services.

Financing, Type of -- The method by which the USG is authorized to sell defense articles and services under the AECA (e.g., cash with acceptance, dependable undertaking, credit). The type of financing is reflected through entry of the proper term(s) of sale on the LOA.

Five-Year Defense Program or FYDP -- The program summarizing the SECDEF’s plans and programs for DoD.

Foreign Affairs Administrative Support or FAAS -- Provides, on a reimbursable basis at the Washington level, administrative services to USG offices, including SAOs, located overseas. Services are provided by FAAS personnel of DoS, including: personnel, budget and fiscal, general services, communications, security and guard, and management. The specific services required are the basis of an agreement between State and the requesting agency. Charges are based on the amount of service received with each agency, including State, paying its share.

Foreign Liaison Officer or FLO -- An official representative, either military or civilian, of a foreign government or international organization stationed in the US normally for the purpose of managing or monitoring SA programs.

Foreign Military Sales or FMS -- That portion of US security assistance authorized by the AECA, as amended, and conducted on the basis of formal contracts or agreements between the USG and an authorized recipient government or international organization. FMS includes government-to-government sale of defense articles or defense services, from DoD stocks or through purchase under DoD-managed contracts, regardless of the source of financing.

Foreign Military Trainees or FMT -- Foreign military and associated civilian defense personnel receiving training under FMS or IMET, also referred to as International Military Students (IMS).

Foreign Training Officer or FTO -- The US military officer or federal civilian employee named to coordinate and monitor the local foreign training program. The FTO provides required administrative support for foreign students at the training installation or activity level, and plans, coordinates and implements the DoD Informational Program (IP), also referred to as the IMS Officer (IMSO).

Formal Training -- Training (including special training) in an officially designated course, administered according to an approved program of instruction. This training generally leads to a specific skill in a certain military occupational specialty.

Generic Code -- Represents the type of materiel or services according to budget activity or project account classification.

Grant Aid -- Assistance rendered under authority of the FAA for which the US receives no dollar reimbursement. Currently consists of nonreimbursable MAP and IMET. Also see Military Assistance Program.

Host Nation Support -- Civil and military assistance provided by host nations to allied forces and organizations in peace, transition to war, and wartime.

Human Rights -- The right to be free from governmental violations of the integrity of the person; the right to the fulfillment of such vital needs as food, shelter, health care, and education; and the right to enjoy civil and political liberties.

Identifier, LOA -- A unique identifier assigned to an LOA for the purpose of identification, accounting, and data processing of each accepted Offer. The identifier consists of the country code, implementing agency code, and the LOA designator.

IMET Order -- Document issued by DSCA to authorize the MILDEPs to expend funds for IMET funded training including English language equipment and materiel.

Implementation Date -- Date on which FMS case supply action is first authorized.

Implementing Agency -- The DoD Component responsible for the execution of programs under the AECA or FAA of 1961, as amended.

Informational Program or IP -- Provides for foreign students, information pertaining to the United States; its social, cultural, and political institutions; and its people and their ways of life. It further increases foreign students’ awareness of US commitment to basic principles of internationally-recognized human rights.

Interchangeability -- Two or more items possess such functional and physical characteristics as to be equivalent in performance, fit, and durability, and either is capable of being used without alteration of the items or of adjoining items, except for adjustment.

Initial Deposit -- Money furnished to the USG for the credit of the Treasurer of the United States at the time of acceptance of an LOA or Amendment.

Interfund Billing System or IBS -- Under IBS, the selling activity will credit the appropriation or fund which owns the materiel or finances the accessorial charges at the time of billing the ordering activity and charge the funds of the ordering activity. IBS normally encompasses supply system sales and purchases of materiel, including perishable subsistence, bulk petroleum, oil, lubricants, and into-plane aviation fuels issues. Reimbursable sales will be billed at the time items are dropped from inventory except that billings for sales under FMS and MAP will be based on constructive delivery. [DoDI 7420.12]

International Logistics -- The negotiating, planning, and implementation of supporting logistics arrangements between nations, their forces, and agencies. It includes furnishing logistic support (major end items, materiel, or services) to, or receiving logistic support from, one or more friendly foreign governments, international organizations, or military forces, with or without reimbursement. It also includes planning and actions related to the intermeshing of a significant element, activity, or component of the military logistics systems or procedures of the US with those of one or more foreign governments, international organizations, or military forces on a

temporary or permanent basis. It includes planning and actions related to the utilization of US logistics, policies, systems, or procedures to meet requirements of foreign governments, international organizations, or forces. [JCS Pub. 1]

International Military Education and Training Program -- Provides training to selected foreign military and defense associated civilian personnel on a grant basis. IMET is authorized by the Foreign Assistance Act of 1961, as amended.

International Traffic in Arms Regulation or ITAR -- A document prepared by the Bureau of Politico-Military Affairs, Department of State, providing licensing and regulatory provisions for the export of defense articles, technical data and services. The ITAR also contains the US Munitions List. (22 CFR 120-130).

Invitational Travel Orders or ITOs -- A written authorization for foreign personnel to travel to, from, and between US activities for training under a funded IMET or FMS program.

Joint Security Assistance Memorandum -- A Joint Strategic Planning System document providing US military views on alternate funding levels projected for US financed SA program elements. The JSAM is based on individual US Diplomatic Mission and SAO submissions of the AIASA and the JSPD/SA, as well as Unified Command comments on both.

Joint Strategic Planning Document -- This document contains a comprehensive appraisal of the military threat to the US, a statement of recommended military strategy to attain the objectives, and a summary of the JCS planning force levels that could execute, with reasonable assurance, the military strategy. It will incorporate an initial appraisal of the risk associated with programmed force levels and recommendations for changes in the prior consolidated guidance.

Joint Strategic Planning Document Supporting Analysis (JSPDSA) -- That part of the JSPD which is submitted by the SAO to address planning within a specific country.

Language Training Detachment -- DLIELC personnel with duty in a foreign country or in CONUS on military installations, away from the Center. They serve as consultants or instructors in English as a foreign language.

Lease -- An agreement for temporary transfer, with or without a rental charge, of the right of possession and use of a defense article to an FMS eligible foreign government or international organization, with the transferee agreeing to maintain, protect, repair, or restore the article, under authority of Chap 6, AECA.

Letter of Offer and Acceptance or LOA -- See Acceptance, Letter of Offer and.

Letter of Request or LOR -- A written message or letter request from eligible FMS participants for the purchase of defense articles or services.

License, Exclusive; Non-Exclusive -- A license covering a patent, technical or proprietary data, technical assistance, know-how, or any combination of these, granted by a US firm to a foreign firm or government to produce, co-produce, or sell a defense article or service within a given sales territory without competition from any other licenses or from the licensor. A non-exclusive license is a license as described above, except that competition may be permitted with other licensees or the licensor.

Licensed Production -- Production based on agreements by US commercial firms with international organizations, foreign governments, or foreign commercial firms. Sale, under FMS, of a TDP for production purposes also results in licensed production.

Living Allowance -- Authorized allowance paid to a foreign student while in IMET training.

Loan -- An agreement for temporary transfer of the right of possession and use of a defense article not acquired with military assistance funds to a foreign government or international organization, at no rental charge to the transferee, with the transferor US Military Department being reimbursed from MAP funds, under authority of FAA Section 503.

Logistics Support Charge or LSC -- A charge based on the AECA requirement for full cost recovery. The LSC is intended to recover the cost of support involved in providing the spares and other items required to maintain a weapon system. It is applied by DFAS-DE to delivery costs for those lines in FMS cases which have been identified as support lines based on the generic code.

Major Defense Equipment -- Any item of significant military equipment on the USML having a nonrecurring research and development cost of more than $50 million or a total production cost of more than $200 million.

Major Item Line -- A program line for which the requirement is expressed in quantity and in dollars. These lines are identified in the MASL by a unit of issue other than dollars (XX).

Major Non-NATO Ally – A country designated in accordance with FAA Sec 517 as a major non-NATO ally for the purposes of the FAA and AECA. Initial designations are Australia, Egypt, Israel, Japan, the Republic of Korea, and New Zealand.

MAP Order -- Document formerly issued by DSCA to authorize and direct the delivery of defense articles or services to designated recipients. MAP orders were issued for approved and funded MAP and IMET articles and services (e.g., materiel, training, construction, supply operations, administrative expenses).

Memorandum of Understanding -- A written understanding between governments or international agencies setting forth the terms under which they will cooperate in the performance of certain work such as research, development, production, or utilization. The MOU usually sets down, in broad terms, the objectives of the program, the work to be performed by each participant and its financing, the rights to technical data and patents to be acquired, and other elements concerned with the performance of the program.

Military Articles and Services List or MASL -- Catalog of materiel, services, and training used in the planning and programming of MAP, IMET, and FMS. Separate MASLs are maintained for IMET and FMS training to disseminate course availability, price, and duration.

Military Assistance Program or MAP -- That portion of the US SA authorized by the FAA of 1961, as amended, which provides defense articles or commodities and defense services to recipients, generally on a nonreimbursable (grant) basis. Also see Grant Aid.

Military Assistance Program Address Directory or MAPAD -- See DoD Activity Address Directory System.

Military Civic Action -- The use of preponderantly indigenous military forces on projects useful to the local population at all levels in education, training, public works, agriculture, transportation, communications, health, sanitation, and other areas contributing to economic and social development, which also improve the standing of the local military forces with the population.

Military Export Sales -- Sales of defense articles and services made from US sources to foreign governments, foreign private firms, and international organizations, whether made by DoD or by US industry. Such sales generally fall into two major categories: Foreign Military Sales and Commercial Sales.

Military Standard Billing System or MILSBILLS -- Provides data elements and codes, standard mechanized procedures and formats to be used by DoD components for billing, collecting, and related accounting for sales from stock, including direct deliveries. The mechanized procedures apply to MAP and FMS as outlined in DoDI 7420.12 (regarding Interfund Billing System). [DoDD 4000.25]

Military Standard Contract Administration Procedures or MILSCAP -- Provides uniform procedures, rules, formats, time standards, and standard data elements and codes for the interchange of contract-related information between and among DoD components and contractors. [DoDD 4000.25]

Military Standard Requisitioning and Issue Procedures or MILSTRIP -- A uniform DoD procedure to govern requisition and issue of materiel within standardized priorities. [JCS Pub 1]

Military Standard Transaction Reporting and Accounting Procedures or MILSTRAP -- prescribes uniform procedures, data elements, codes, documents, and time standards for the flow of inventory accounting information pertaining to receipt issue and adjustment actions between inventory control points, stock control activities, storage sites, and posts or bases. [DoDD 4000.25]

Military Standard Transportation and Movement Procedures or MILSTAMP -- Standard transportation data, documentation, and control procedures applicable to cargo movements in the DoD transportation system. [JCS Pub 1]

Military Supply and Transportation Evaluation Procedures or MILSTEP -- provides a standard method for the preparation and collection of basic data necessary to measure supply system performance and transportation effectiveness. [DoDD 4000.25]

Mission Analysis -- A process to determine the operational capabilities of military forces that are required to carry out assigned missions, roles, and tasks in the face of the existing or postulated threat with an acceptable degree of risk. Having ascertained the military forces required, a comparative assessment is made between those available and those required in order to identify the qualitative and quantitative deficiencies that may be related to the element of risk involved.

Mission Area -- A mission area is a grouping of military activities by mission-related functions.

Mission Need -- A statement based on a mission analysis identifying in broad outline a quantitative or qualitative operational deficiency that cannot be solved satisfactorily with existing or planned forces or equipment.

Mobile Training Team or MTT -- Team of US DoD personnel on temporary duty in a foreign country for the purpose of training foreign personnel in the operation, maintenance, or support of defense equipment, as well as training for general military operations. MTTs may be funded from either FMS or IMET Programs. [AFM 50-29]

Modification, LOA -- An administrative or price change to an existing LOA, without revising the scope.

Munitions List -- The USML is an enumeration of defense articles and defense services published in the ITAR (22 CFR 121).

NDP-1 or National Policy and Procedures for the Disclosure of Classified Military Information to Foreign Governments and International Organizations (U) [Short Title: National Disclosure Policy -- National policy, including disclosure criteria and limitations, definitions of terms, release arrangements, and other guidance required to release classified US military information to foreign governments and international organizations. Provides for interagency procedures for implementation of that policy.

Obligational Authority or OA -- Under FMS, authority in DD Form 2060 format for a given FMS case, passed from DFAS-DE to the IA which allows obligations to be incurred against a country’s Trust Fund in an amount not to exceed the value of the OA.

Obligations -- Dollar values of orders placed, contracts awarded, services received, and similar transactions during a given period requiring future payment of money. Such amounts include payments for which obligations previously have not been recorded, and adjustments for differences between obligations previously recorded and actual payments to liquidate those obligations.

Observer Training -- Special training conducted to permit foreign students to observe US military techniques and procedures.

Offer Date -- The date which appears on the offer portion of LOAs and which indicates the date on which an FMS offer is made to a foreign buyer.

Offset Agreement -- An agreement, arrangement, or understanding between a US supplier and a non-US Purchaser under which the supplier agrees to purchase or acquire, or to promote the purchase or acquisition by other US persons of, goods or services produced, manufactured, grown, or extracted, in whole or in part, outside the US in consideration for purchases of defense articles or services from the supplier. A US person means an individual who is a national or permanent resident alien of the US and any corporation, business association, partnership, trust, or other judicial entity incorporated, or permanently residing, in the US. (reference Sec 732, P.L. 103-236)

On-the-Job Training or OJT -- Training devoted to the practical application of a previously achieved skill.

Open Sales Case -- An FMS case is designated open as long as any portion of the transaction is incomplete; that is, delivery of materiel, performance of services, financial transactions, or rendering of the final statement of accounts.

Open Sales Offer -- An FMS offer made to a foreign buyer which is pending acceptance.

Operation and Maintenance, or O&M, Costs -- Costs associated with equipment, supplies, and services required to train, operate, and maintain forces in a recipient country, including cost of spare parts other than concurrent spares and initial stockages, ammunition and missiles used in training or replacements for such items expended in training or operations, rebuild and overhaul costs (excluding modernization) of equipment subsequent to initial issue, training and other services that do not constitute investment costs, and administrative costs associated with overall program management and administration.

Orientation Tours -- Tours arranged for key foreign personnel for the purpose of orientation and indoctrination.

Paramilitary Forces -- Forces or groups which are distinct from the regular armed forces of any country, but resembling them in organization, equipment, training, or mission.

Pipeline -- That portion of (a) approved and funded MAP articles and services, and (b) accepted FMS orders for defense articles and services, for which delivery, either constructive or actual, has not occurred, or services have not been rendered.

Planning, Programming, and Budgeting System -- An integrated system for the establishment, maintenance, and revision of the FYDP and the DoD budget.

Price and Availability, or P&A, Data -- Prepared by the MILDEPs, DSCA, and other DoD components in response to a foreign government request for preliminary data for the possible purchase of a defense article or service. P&A data are not considered valid for the preparation of an LOA. Furnishing of this data does not constitute a commitment for the USG to offer for sale the articles and services for which the data are provided.

Program Decision Memorandum -- A document which provides SECDEF decisions on the POM and the Joint Program Assessment Memorandum (JPAM).

Progress Payments -- Payments to contractors or DBOF activities as work progresses under a contract, on the basis of cost incurred or percentage of completion, or of a particular stage of completion, accomplished prior to actual delivery and acceptance of contract items.

Psuedo Letter of Offer and Acceptance, or PLOA -- An LOA, designed for sales of defense articles or services under the AECA, which has been modified to accommodate sale of defense commodities or services under the FAA of 1961, as amended.

Reappropriation -- Process whereby Grant Aid funds, which at the end of the fiscal year are not reserved or obligated, are made available by the Congress for use in the subsequent fiscal year.

Reciprocal Defense Procurement. -- Procurement actions which are implemented under MOUs between the US and participating nations whereby the participants agree to effect complementary acquisitions of defense articles from each other’s country.

Record Serial Number or RSN -- A line item indicator on the LOA which is perpetuated in the DD Form 645 billing document.

Recoupments -- Adjustments or cancellations of outstanding MAP orders in prior year program accounts which generate additional funds for current year operations.

Redistributable MAP Property -- MAP property which has been declared by the recipient to the US as no longer needed for the purposes for which furnished.

Reimbursements -- Funds realized from the sale of MAP-owned property, such funds being deposited to MAP accounts and available for programming.

Repair and Replace -- Procedure whereby CLSSA customers return repairable carcasses to the US and receive a serviceable replacement without awaiting the normal repair cycle timeframe. Replacement involves an exchange of a customer-owned unserviceable item with a serviceable customer-owned item held by the US. Countries are initially charged the estimated repair cost, with adjustment to the actual repair cost upon completion of repair of the unserviceable item.

Repair and Return -- Procedure by which eligible foreign countries return unserviceable repairable items for entry into the US MILDEP repair cycle. Upon completion of repairs, the same item is returned to the country and the actual cost of the repair is billed to the country.

Security Assistance Organization/Office -- The generic term SAO encompasses all DoD elements, regardless of actual title, located in a foreign country with assigned responsibilities for carrying out security assistance management functions.

Security Assistance -- Group of programs authorized by the FAA of 1961, as amended, and the AECA as amended, or other related statutes by which the US provides defense articles, military training, and other defense related services, by grant, credit, or cash sales, in furtherance of national policies and objectives. [JCS Pub 1]

Significant Military Equipment or SME -- Those defense articles and services on the USML in the ITAR which are preceded by an asterisk. SME are articles which require special export controls because of their capacity for substantial utility in the conduct of military operations.

Specialized English Terminology -- Instruction conducted at DLIELC for FMTs who have attained the required ECL to develop vocabulary skills for entry into both hazardous and highly technical courses.

STANAG or Standardization Agreement -- The record of an agreement among nations to adopt like or similar military equipment, ammunition, supplies and stores; and operational, logistics, and administrative procedures. National acceptance of a NATO allied publication issued by the Military Agency for Standardization may be recorded as a Standardization Agreement.

Teaming Arrangement -- A agreement of two or more firms to form a joint venture to act as a potential prime contractor; or an agreement by a potential prime contractor to act as a subcontractor under a specified acquisition program; or an agreement for a joint proposal resulting from a normal prime contractor-subcontractor, licensee-licensor, or leader company relationship.

Technical Assistance Field Team or TAFT -- Team of DoD personnel deployed under FMS on PCS status, normally for one year or longer, to a foreign country to train local defense cadre personnel to operate, maintain, and employ defense equipment, and in other non-equipment specific military skills.

Technical Assistance Team or TAT -- Team of DoD personnel deployed to a foreign country on TDY status to place into operation, maintain, and repair equipment provided under FMS or MAP programs.

Technical Data -- @@Recorded information, regardless of form or the method of recording, of a scientific or technical nature. Examples of technical data include research and engineering drawings and associated lists, specifications, standards, process sheets, manuals, technical reports, catalog item identifications, and related information and computer software documentation. Computer software financial, administrative, cost and pricing, or other information incidental to contract administration are excluded.@@(Changed 12 Aug 98)

Technical Data Package or TDP -- The most prominent category of technical data is described as a TDP. The TDP normally includes technical design and manufacturing information to enable the construction or manufacture of a defense item component, or to enable the performance of certain maintenance or production processes. It may include blueprints, drawings, plans, or instructions that can be used or adapted for use in the design, production, manufacture, or maintenance of defense items or technology.

Test Control Officer or TCO -- US military or civilian personnel designated to administer, supervise, and control ECL testing and test materials. Must be a US citizen, not a foreign national "local hire" civilian or foreign military officer or NCO.

Total Package Approach -- A means of ensuring that FMS customers are given the chance to plan for and obtain needed support items, training, and services required to introduce and sustain the operation of major items of equipment.

Training (FMS) -- Formal or informal instruction of foreign students in the US or overseas by officers or employees of the US, contract technicians, contractors (including instruction at civilian institutions), or by correspondence courses, technical, educational or information publications and media of all kinds, training aid, orientation, training exercise, and military advice to foreign military units and forces. [Sec. 47(5), AECA] Also see IMET.

Travel and Living Allowance or TLA -- Those costs associated with transportation, excess baggage, and living allowance (per diem) of students which are authorized for payment under IMET.

Trust Fund (FMS) -- A fund credited with receipts which are earmarked by law and held in trust, or a fiduciary capacity by the USG for use in carrying out specific purposes and programs in accordance with an agreement.

Under Section 644(m), FAA:

(1) With respect to an EDA, the actual value of the article plus the gross cost incurred by the USG in repairing, rehabilitating, or modifying the article, except that for purposes of Section 632(d) such actual value shall not be taken into account:

(a) For major items the pricing guidance contained in DoD Instruction 7290.2 may be used to determine the value of EDA.

(b) For secondary items the inventory standard stock price is to be used.

(2) With respect to a non-EDA delivered from inventory to foreign countries or international organizations under this Act, the acquisition cost to the United States Government, adjusted as appropriate for condition and market value.

(3) With respect to a non-EDA delivered from new procurement to foreign countries or international organizations under this Act, the contract or production costs of such article, and;

(4) With respect to a defense service, the cost to the USG of such service.

(5) With respect to IMET, the additional costs incurred by the USG in furnishing such assistance.

Under Section 47(2), AECA:

"Value" means, in the case of an excess defense article, not less than the greater of: (1) the gross cost incurred by the USG in repairing, rehabilitating, or modifying such articles, plus the scrap value; or (2) the market value, if ascertainable.

Weapon System Life Cycle Cost -- The period divided into phases, ranging from the first consideration of the need for a weapon system through the development and in-service stages down to phase-out and disposal.