DEFENSE SECURITY COOPERATION AGENCY
MEMORANDUM FOR :
Termination of Use of Letters of Intent (LOIs) (DSCA 08-08) [SAMM E-Change 102]
Letters of Intent (LOIs) were intended for use when items being purchased had a long lead time or a short procurement cycle that required financing before a Letter of Offer and Acceptance (LOA) or Amendment could be processed. LOIs allowed a program to proceed on schedule and within the projected cost until superseded by a more complete LOA that covered the entire program.
With improvements in automation systems and subsequent developments in policies on what can be included on Amendments to LOAs, the utility of LOIs has diminished considerably. Long lead requirements and timelines can now be met more efficiently by using start-up LOAs (for the long-lead requirements) and follow-on Amendments (to add the total package requirements). LOIs have seldom been used, having been implemented in only three cases, the last in 2003. For these reasons, LOIs are being withdrawn from use effective thirty days from the date of this memorandum. The Security Assistance Management Manual (SAMM) will be updated as indicated on the Attachment to reflect this change. LOI menu functions will no longer be available in the Defense Security Assistance Management System (DSAMS).
This change will be included in the automated version of the SAMM found on the DSCA Web Page as SAMM E-Change 102. Questions regarding this policy should be directed to Mr. Mike Slack, DSCA/STR/POL, at (703) 601-3842 or e-mail: firstname.lastname@example.org.
Freda J. Lodge
DEPUTY ASSISTANT SECRETARY OF THE ARMY
Security Assistance Management Manual (SAMM), E-Change 102