Paragraph 70102.C.

Supplemental Information. Standard Terms must be supplemented with additional items or notes for each Offer in order to make obligations clear. When LOAs are prepared before details are known, "notes" (which include "supplemental conditions") will include general coverage of this information and an estimate of when specific information on these topics can be provided to the Purchaser. Inclusion of all terms and information as a complete package within the LOA, rather than orally or by separate correspondence, reduces misunderstandings regarding FMS commitments

Supplemental Information. Standard Terms must be supplemented with additional items or notes for each Offer in order to make obligations clear. When LOAs are prepared before details are known, "notes" will include general coverage of this information and an estimate of when specific information on these topics can be provided to the Purchaser. These notes may be shared in advance with the Purchaser to ensure any Purchaser-unique requirements are accommodated.

Paragraph 70102.G.

NC Charges. LOAs will not normally be established for the sole purpose of collecting nonrecurring costs. Pro rata NC charges for articles sold under FMS will be included in the unit price. Due to inclusion of sensitive US technical production information, data regarding USG cost pool and production quantities used to determine NC charges will not normally be released outside DoD. (see also DoDD 2140.2)

NC Charges. LOAs will normally not be established for the sole purpose of collecting nonrecurring costs. Pro rata NC charges for articles sold under FMS will be included in the unit price. This cost may be disclosed to the Purchaser on the LOA or through other means as desired (reports, meetings, discussions, etc.). Due to inclusion of sensitive US technical production information, data regarding USG cost pool and production quantities used to determine NC charges will not be released outside DoD. (see SAMM, paragraph 50202.B.4. and DoDD 2140.2)

Paragraph 70102.H. (new)

Customer Participation in the LOA Preparation Process. Customer involvement early-on in the LOA development process is essential to ensure the final document provides the best "fit" for their requirements. Customers should be encouraged to attend meetings and receive correspondence designed to clarify Letter of Request (LOR) information. As the development of the LOA progresses, there will be many instances where Purchaser participation and input are necessary. For example, the customer should help identify unique requirements and special needs which must be accommodated in the final sales document. Any unique notes or conditions being considered may be provided to the customer for advance review to ensure these special case/program-unique needs are addressed.

Paragraph 130701.B.

Single Selling Price. It is DoD policy to provide a single unit price for articles offered under FMS. It is not normal FMS practice to provide a detailed description of the components of cost included in estimated prices for line items on LOAs. When the buyer so requests, there may be instances where the provisions of such information is necessary to demonstrate that such costs are necessary.

Single Selling Price. It is DoD policy to provide a single unit price for articles offered under FMS. If the customer desires, a more detailed description of the major components of cost included in estimated prices may be provided with the LOA as supplemental information or via separate report.

Paragraph 130704.C.2.

DD Form 1513 Presentation. Estimated costs of providing engineering services associated with production of purchased items will be included in the estimated unit costs of the item being purchased. Thus, the LOA item price will include not only the estimated contract cost to produce it (including GFM) but also the cost of services required to assure production in the correct configuration. Such costs will also include the pro-rata share of government-furnished testing and evaluation services.

LOA Presentation. Estimated costs of providing engineering services associated with production of purchased items will be included in the estimated unit costs of the item being purchased. Thus, the LOA item price will include not only the estimated contract cost to produce it (including GFM) but also the cost of services required to assure production in the correct configuration. A break-out of USG costs may be provided to the customer if requested. Such costs will also include the pro-rata share of government-furnished testing and evaluation services.

Paragraph 130705.C.2.

LOA Presentation. The LSC is to be included in the single selling price presented to FMS purchasers in the LOA for those lines coded with the applicable generic codes listed in the FMR, Section 0722.

LOA Presentation. The LSC is to be included in the single selling price presented to FMS purchasers in the LOA for those lines coded with the applicable generic codes listed in the DoD FMR. Information on LSC pricing estimates may be provided to FMS customers.