C6.9.1. Purchaser-Requested Case Cancellations. Purchasers may request that their FMS cases be cancelled. After a case has been implemented, cancellations are processed as a closure of the case. The purchaser is responsible for any termination costs as well as any estimated administrative costs associated with the case. The minimum, non-refundable amount of administrative costs will be: the value when combining the Small Case Management Line (SCML) and the administrative surcharge value; or ½ of the administrative surcharge estimated on the case; or the standard administrative surcharge percentage of the expended value whichever is greater. An IA’s recommendation to charge other than these amounts must be submitted to the Defense Security Cooperation Agency (DSCA) (Business Operations Directorate) for approval, see Section C6.8.4.2. for information on closing cases with $0 delivered value. For cases closing with a case value greater than or equal to $25,000,000, the IA will submit a recommended non-refundable FMS administrative charge amount to DSCA (Business Operations Directorate) for approval. DSCA countersignature of an LOA Modification does not constitute DSCA approval of the recommended non-refundable administrative charge amount. Requests submitted to DSCA must include the following documentation:

C6.9.1.1. Brief description of the case to include the basic LOA acceptance date and the terms of sale used.

C6.9.1.2. Copy of the purchaser’s request for case cancellation or a written explanation why the case was cancelled.

C6.9.1.3. Statement whether costs to implement, execute, and cancel the case will be recouped by the administrative charge assessed on the actual delivered value.

C6.9.1.4. Minimum amount of FMS administrative charge that would normally be charged in accordance with current policy and a statement whether costs to implement, execute, and cancel the case will be recouped by that amount. If a different amount is recommended, include the proposed amount and justification.

C6.9.2. USG-Requested Case Cancellations. In accordance with the LOA Standard Terms and Conditions (see Chapter 5, Figure C5.F4.), the USG may cancel a case (or any part of a case) when U.S. national interest requires. The amount of administrative charges assessed against cases cancelled by the USG must be approved by DSCA (Business Operations Directorate) even if the proposed amount is $0.