…the quantity of defense articles (other than construction equipment, including tractors, scrapers, loaders, graders, bulldozers, dump trucks, generators, and compressors) owned by the United States Government, and not procured in anticipation of military assistance or sales requirements, or pursuant to a military assistance or sales order, which is in excess of the Approved Force Acquisition Objective and Approved Force Retention Stock of all Department of Defense Components at the time such articles are dropped from inventory by the supplying agency for delivery to countries or international organizations under this Act.

The Military Departments determine what is or is not excess, and after surveying requirements by potential recipient countries, recommend an allocation of excess assets to the EDA Coordinating Committee. The Committee, co-chaired by Defense Security Cooperation Agency and the Department of State/PM-RSAT, with representatives from the Department of Commerce and regional and functional policy offices in the Department of Defense, agree on a final allocation of the articles. Equipment which has been transferred from the Military Departments to the Defense Reutilization and Marketing Service (DRMS), is also available for transfer through the EDA program if an eligible foreign government makes known its requirements for the equipment.

EDA is offered either at reduced or no cost to eligible foreign recipients on an "as is, where is" basis. The foreign recipients, in most cases, are responsible for the costs of packing, handling, and transportation, as well as any restorative work and follow on support. Foreign recipients may purchase such services from the Department of Defense through the Foreign Military Sales (FMS) program.

The Department of Defense is authorized by law to transfer excess defense articles to foreign governments under the following authorities:

Section 516 of the Foreign Assistance Act of 1961, as amended, authorizes grant transfers of lethal and non-lethal EDA to countries which receipt of such articles were justified to Congress for the fiscal year in which the transfer is authorized.
EDA may also be sold to foreign countries under the normal FMS system authorized by the Arms Export Control Act (AECA). When EDA is sold, the price is a percentage of the original acquisition value, based on age and condition and ranges between 5% to 50% of the original acquisition. These transfers are notified under section 525 of the annual Foreign Operation and Appropriation Act and are shown as 546 transfers in the system.

All grant recipients must sign agreements pursuant to Section 505 of the FAA agreeing to end use restrictions and giving the U.S. first right to proceeds of any sale.

Information on classified transfers have been removed from this database, as has information on potential offers which have not yet been notified to Congress. Prior to notification, to Congress, the decision to provide EDA is not yet final and disclosure of potential offers is not possible.

The following information on each notified transfer is available:

The recipient country
The item(s) to be transferred and the quantity of each
The implementing agency for each transfer (Army, Navy, Air Force, or the Defense Logistics Agency (DLA) for transfers made through DRMS).
The notified acquisition value and current value of the equipment. For grants, the current value is the value at which the equipment would be sold through FMS if it was not being granted.
The status of the transfer (notified to Congress, notification period complete, or implementing agency authorized to transfer) and the date of the latest status change.

DSCA is currently working with the Military Departments and DLA on the process for automated uploading of information on acceptance, rejection, and delivery into this database. Information will include the quantity accepted, rejected, or delivered and the date of acceptance, rejection or delivery.

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