DEFENSE SECURITY COOPERATION AGENCY
MEMORANDUM FOR :
Revised Guidance for Multi-Service Letters of Offer and Acceptance (LOAs) (DSCA 08-26) [SAMM E-Change 115]
This memorandum revises the guidance contained in the reference due to concerns expressed regarding the need for manual financial and logistical processing of Multi-Service LOAs. When the referenced memorandum was prepared, the availability of a tri-Service case execution system was imminent. Having a single case execution system used by all three Services would facilitate the transactions required to successfully prepare and execute a Multi-Service LOA. While this capability is still a goal, to date we do not have a single system that all Implementing Agencies may use. This has resulted in the need for resource-intensive manual processing of requirements to implement this policy.
To relieve this problem given the resources currently available, if a purchaser's Letter of Request (LOR) identifies defense articles and/or services managed by more than one Implementing Agency, consideration may be given to either a Multi-Service LOA or individual LOAs for each Implementing Agency. The decision of which option to choose should be based on all factors, including efficiencies of case development, execution, and closure; lower cost (dollars and time) to the customer; and the purchaser's preference. Attachment 1 updates SAMM Chapter 5, paragraph C22.214.171.124. Attachments 2 and 3 provide guidance for Multi-Service LOAs and individual LOAs for single consolidated programs, respectively. All Implementing Agencies involved, regardless of whether the decision is a Multi-Service LOA or multiple LOAs, shall work together to ensure the use of a Total Package Approach as defined in SAMM Chapter 4, paragraph C4.5.3.
The guidance in this memorandum is effective 30 days from the date of signature.
For questions or additional information regarding this matter, please contact Ms. Kathy Robinson, DSCA Strategy/Policy, (703) 601-4368, e-mail: email@example.com.
Freda J. Lodge
DEPUTY ASSISTANT SECRETARY OF THE ARMY
C126.96.36.199. Preparing Activity. Certain organizations are authorized to prepare FMS cases. See Table C5.T2. for a list of these activities. These organizations, known as Implementing Agencies, are responsible for preparing and processing LOAs in accordance with this Manual. When an LOR received by an Implementing Agency includes a requirement for an item managed by another Implementing Agency, the LOR shall be coordinated with all organizations involved. Because the LOR was submitted as a single program, the Implementing Agency should consider a Multi-Service LOA, particularly when the purchaser advises the USG that it requires multiple weapon systems on a single case for its own budgetary and/or other internally-based reasons. However, if the manual financial and logistical processing required to prepare and execute a Multi-Service LOA exceeds the efficiencies that would be derived, the LOR requirements may be split into multiple LOA documents that are separated by Implementing Agency and major weapon system but are managed in coordination with one another. The Implementing Agencies shall operate under mutually agreed terms (using a "Leader-Follower" set of LOAs) to ensure a Total Package Approach. All efforts must be made to minimize costs to the FMS purchaser. For the multiple LOA document option, the Implementing Agencies involved must plan events in which all parties may participate together, such as a single Program Management Review (PMR) rather than each Implementing Agency conducting its own PMR. Regardless of the method used, Implementing Agencies must operate within a framework that clearly defines the roles and responsibilities of each participant. If multiple LOAs separated by Implementing Agency and major weapon system are used to respond to an LOR submitted for a single program, the Implementing Agency that received the LOR must advise the purchaser that the response will be multiple LOA documents instead of a Multi-Service LOA. Implementing Agencies are encouraged to consolidate requirements as much as possible. Multiple LORs from the same purchaser may be answered by a single LOA. Questions relating to this subject should be referred to DSCA (Strategy Directorate).
The following guidance is for use in managing Multi-Service LOAs:
The following guidance is provided for use in managing multiple LOAs using a Leader-Follower process:
Note: DSAMS is scheduled to deploy a new capability in January 2009 that will associate cases across the Implementing Agency databases using the Related Cases tab of the Case Detail screen. Implementing Agencies will use this capability, once it becomes available, when preparing multiple LOAs under the Leader-Follower process. The Implementing Agency has the responsibility for loading DSAMS with both the Leader and the Follower case information.