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  • Question

    Command would like to verify exactly the USN approval chain of command that will need to be followed as well at what level the decision would be made to replace or not to replace these aircraft. FMR 7000.14 is clear in describing methodology for financial accounting but the approval process is not.


    Answer

    In the Security Assistance Management Manual (SAMM), chapter 6, paragraph 6.7.1, it says “An Amendment is necessary when a change requires purchaser acceptance.”  It sounds like accelerating the scheduled delivery of previously negotiated quantities would be a change to the agreed terms and conditions in the approved Letter of Offer and Acceptance (LOA).  This would require documentation of the purchaser’s agreement to the change, even though they appear to be the ones wanting to initiate the change.  Later in paragraph 6.7.1, it also says “Major increases in scope such as addition or deletion of Significant Military Equipment (SME), including Major Defense Equipment (MDE), normally require the preparation of a new LOA vice an Amendment.”  This does not sound like an increase to the negotiated quantity, so it does not appear that this would need a new LOA.  Whichever way it goes, it would require the appropriate approvals for those actions.  My recommendation is to contact the Navy International Programs Office (NIPO) for their interpretation as to which would be the applicable way to implement this change.




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