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  • Question

    Can a Contractor have in-direct inputs to the building of the LOA?


    Answer

    The short answer is yes, but it depends.  The Security Assistance Management Manual (SAMM) provides some mention of contractor participation in the Foreign Military Sales (FMS) process of preparing Letters of Offer and Acceptance (LOAs).  For example, the SAMM at paragraph C5.4.12 states:
    “C5.4.12. Pre-Countersignature Meetings for New LOAs for Major Sales. DSCA (Business Operations Directorate) will convene a meeting on selected “major sales” when warranted. Attendees include DSCA, IAs, and prime contractor representatives, as appropriate. The purpose of the meeting is to review the purchaser requirements; ensure the proposed financial payment schedule correlates to the proposed program/delivery plan, and Dependable Undertaking term of sale if applicable; LOA notes and transportation methods are appropriate; MASLs are correct; disclosure and releasability review process was conducted as required, etc. The IA is 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 purchaser budget constraints. For the purpose of this paragraph “major sales” include: sales that trigger AECA section 36(b) (22 U.S.C. 2776) thresholds or proposed sales that represent an increase of more than fifteen percent to the FMS purchaser’s current active program. The IA notifies 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.”

    Therefore, we can assume that if they can be invited to this meeting that they may be consulted prior to the meeting.  It is best to check with your Implementing Agency (IA) office for guidance.  See the SAMM Table C5.1.5.1 for the Air Force list.


    You can find the entire SAMM at: 
    http://www.dsca.osd.mil/samm/ESAMM/ESAMM.htm

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