Defense Security Cooperation Agency
Defense Solutions for America's Global Partners
C5.3. - LOR Responses - Price and Availability (P&A) Data
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P&A data are requested when preliminary data are required by a foreign country or international organization for planning or in anticipation of a purchase under FMS.

C5.3.1. Definition. P&A data are rough order of magnitude estimates of cost and availability of defense articles or services. These estimates are sufficiently accurate for rough-order planning purposes, but should not be used for budget purposes and are not commitments. P&A data are not valid for use in preparing an LOA. The term P&A data is not used to reference data being developed for an LOA. Instead, data compiled for an LOA are referred to as LOA Data (LOAD). When responding to requests for P&A data, the IA ensures that:

  1. The DoD Component can recommend release of the articles and/or services.

  2. If the purchaser were to request an LOA, it could be provided (i.e., further clearances such as Congressional Notification or disclosure approval are obtainable).

  3. The purchaser knows to submit an LOR to request an LOA if it wants to pursue the purchase.

C5.3.2. P&A Preparation Timeframe. P&A data estimates should be provided to the prospective purchaser within 45 days of the request.

C5.3.2.1. Classified P&A Data. P&A data are classified only in rare circumstances. Classified P&A data cannot be entered into DSAMS. P&A data, regardless of estimated dollar value or proposed program content, are classified only when directed by the DoS, the Secretary of Defense or his or her designees, to include Director, DSCA; or the purchaser requests classification and the request is approved by an authority listed above.

C5.3.3. P&A for Nonstandard Subsystems. P&A data normally includes standard U.S. subsystems. In exceptional cases, purchasers may request P&A data for nonstandard subsystems. The purchaser’s P&A request should include a description of the performance characteristics of any nonstandard subsystem(s) and supporting justification, including why U.S. systems do not meet the purchaser’s requirements. DSCA must approve any proposed responses to requests for nonstandard subsystems. If an IA believes it should modify contractor-furnished data for nonstandard subsystem(s), the IA notifies the contractor and contractor comments are considered prior to P&A issuance. Significant differences must be reconciled.

C5.3.4. P&A Preparation. IAs authorized to prepare LOAs are also authorized to prepare P&A data for presentation to purchasers. DSAMS should be used to prepare P&A data response documents whenever possible. DSAMS cannot be used to prepare classified P&A data.

C5.3.5. P&A Data Format. Table C5.T5. presents the information included in P&A data.

Table C5.T5. Price and Availability (P&A) Data

# Price and Availability (P&A) Data
1

Major item or service, quantity, and estimated cost.

  1. Cost 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.
  2. Include estimated offset costs as provided by the contractor.
2

Ancillary support equipment necessary for the operation and maintenance of the requested system and its estimated cost.

3

Integrated logistics support (ILS) elements (e.g., training and publications) and estimated cost.

4

Estimated assessorial charges.

5

Source of the data (e.g., last contract award, stock price).

6

Estimated availability of the articles or services.

7

Assumptions used in developing the data. For example:

  1. The standard DoD Component factors were used in developing the ancillary equipment or ILS elements necessary to support the quantity of items requested.
  2. Training and publication cost estimates are based on criteria used by the DoD Component.
8

Key factors affecting the data. For example:

  1. The current contract for this item expires on [insert date] and an LOA must be accepted by [insert date] so that options can be added to the current contract.
  2. The production line is due to phase out by [insert date]. Start-up costs apply if an LOA is not accepted by [insert date].
  3. The materiel has a shelf life of [insert date].
9

The following is included in all responses for P&A data:

“The Price and Availability (P&A) data provided are not valid for purposes of preparing a Letter of Offer and Acceptance (LOA) and may not be adequate for budgetary purposes. These data are for planning/review purposes only, to assist in your Government’s determination whether or not to request an LOA. If [insert the appropriate foreign country] is interested in pursuing this potential purchase, it must request an LOA.”

C5.3.6. Agents Fees or Sales Commissions. P&A data quotations that contain agents’ fees or sales commissions are coordinated with DSCA (Strategy Directorate) prior to presentation to the purchaser. See Section C6.3.7.

C5.3.7. Discussions with Foreign Governments and International Organizations. Economic, production, and budget uncertainties make it difficult to develop accurate cost and delivery estimates. Discretion must be exercised by members of the country team or other U.S. officials in discussing P&A data with foreign Government or international organization officials. Only specific data approved and provided by the IA or DSCA should be used.

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Page Updated 04-18-2012