DEFENSE SECURITY COOPERATION AGENCY
MEMORANDUM FOR :
Pre-Countersignature Meetings for New Letters of Offer and Acceptance (LOAs) for Major Sales (DSCA 04-16) [SAMM E-Change 10]
This memorandum establishes a new financial policy requirement for the Defense Security Cooperation Agency (DSCA) to host a meeting prior to countersignature of new LOAs for "major sales," as determined on a case-by-case basis. The purpose of the meeting is to review and ensure consistency of the proposed financial payment schedule and the proposed program/delivery plan. Payment schedules need to be developed consistent with planned program execution to ensure adequate funds are billed and collected in advance of program performance. The meeting will include an Implementing Agency presentation of plans for managing these two critical components of each major sale and should address the contract financing vehicle, anticipated contract payment milestones and known customer budget constraints.
The meeting will be chaired by the DSCA Director for Business Operations/Comptroller and include representatives from other DSCA organizations, the Implementing Agency to include program and case managers, and the prime contractor, as appropriate. New LOAs that trigger Arms Export Control Act 36(b) thresholds and other proposed sales that will have a significant financial impact on the Purchaser's FMS program are subject to this requirement. A guideline for these other sales is a new LOA that represents an increase of more than 15 percent to the FMS Purchaser's current active program reflected in the Security Cooperation Information Portal.
When a Letter of Request is received for a "major sale," as identified above, the Implementing Agency and DSCA Country Financial Director (CFD) will exchange information regarding potential customer budget constraints. The Implementing Agency will notify the DSCA CFD at least 15 days prior to submitting the LOA for countersignature. The notification will include a description of actions taken by the Implementing Agency to assure pay and performance parity for the proposed LOA and identify an Implementing Agency point of contact. Upon receipt of the notification, the CFD will coordinate with the Director for Business Operations/Comptroller, who will call a pre-countersignature meeting when appropriate. The CFD will schedule the meeting and advise participant stakeholders accordingly. If DSCA determines a meeting is not required, the DSCA CFD will inform the Implementing Agency point of contact.
Although this policy addresses major sales, the Implementing Agency is still responsible for ensuring the payment schedule supports the program/delivery schedule for all LOAs. It is critical for the fiscal management and execution of each case as well as for FMS Purchaser budgeting and financial planning purposes. Guidance in this memorandum is effective immediately and will be included in the SAMM as SAMM E-Change 10 attached. Should there be any questions regarding this requirement, DSCA points of contact are Bill Kramer, DSCA-BUSOPS/COMPT/FPS, telephone 303-676-6178, e-mail William.Kramer@dfas.mil, or Patti Higgins, DSCA-BUSOPS/COMPT/FPS, telephone 703-604-6570, e-mail Patricia.Higgins@dsca.mil.
Tome H. Walters, Jr.
DEPUTY ASSISTANT SECRETARY OF THE ARMY
SAMM E-Change 10 - Pre-Countersignature Meetings for New Letters of Offer and Acceptance (LOAs) for Major Sales.
The following paragraph will be included in the SAMM with subsequent paragraphs being renumbered.
C5.4.13 Pre-Countersignature Meetings for New LOAs for Major Sales. DSCA, Director of Business Operations/Comptroller will convene a meeting on selected "major sales" when warranted. Attendees will include DSCA, Implementing Agency, and prime contractor representatives, as appropriate. The purpose of the meeting is to review and ensure the proposed financial payment schedule correlates to the proposed program/delivery plan. The Implementing Agency will be responsible for presenting a plan to manage the program/delivery performance schedule within the financial requirements in the payment schedule and should address the contract financing vehicle, anticipated contract payment milestones, and known customer budget constraints. "Major Sales" for the purpose of this paragraph include: sales that trigger Arms Export Control Act 36(b) thresholds or proposed sales that represent an increase of more than 15 percent to the FMS Purchaser's current active program as reflected in the Security Cooperation Information Portal. The Implementing Agency will notify the DSCA Country Financial Director (CFD) at least 15 days prior to submitting an LOA for a "major sale" for countersignature. The DSCA CFD is responsible for scheduling the meeting or informing the Implementing Agency that a meeting is not required.