Delivery reporting on a case

← All Insights

1. Why delivery reporting matters

Once a Foreign Military Sales case is implemented, the implementing agency (IA) executes it and reports what happens to the Defense Finance and Accounting Service in Indianapolis (DFAS-IN) (SAMM C9.13.1.1). Those reports drive the purchaser’s bills and delivery listings, the statutory reports on deliveries, and in the end the closure of the case (SAMM C9.13.2 and SAMM C16.2.9). Section C9.13 of the Security Assistance Management Manual sets the rules, and section C16.2.9 adds the rules for active cases. How the resulting bill is laid out is covered in the billing statement and delivery listing.

2. What gets reported, and when

The IA reports the nature and value of transactions (SAMM C9.13.1.1). That covers accrued expenditures, also called work in process, such as progress payments to contractors, government furnished material or equipment given to contractors, and nonrecurring costs. It also covers constructive deliveries. Both are reported within 30 days of shipment or performance. The delivery transaction in the Foreign Military Sales Integrated Control System is submitted on a schedule set by DFAS-IN. Purchasers take delivery problems and questions to the IA.

For selected materiel lines, all constructive deliveries must be reported within 30 days of the delivery event (SAMM C9.13.2). The IA systems pass the data automatically to the Defense Integrated Financial System in a set format. Corrections go to DFAS-IN by the 15th of the month. Quantities of major end items then flow to DSCA for the Case Performance Reporting System. These transactions are not part of formal billing. They are used for reports required by the Arms Export Control Act and to answer inquiries.

3. Constructive and physical delivery

The manual defines constructive delivery as delivery of materiel to a carrier for transportation to the consignee, evidenced by signed shipping documents (SAMM C9.13.1.2). For major end items issued singly in the listed categories, the IA must obtain the shipping documents within 15 days of delivery. The categories include aircraft, complete missiles, ships, combat and tactical vehicles, weapons, ammunition and communications equipment. The lack of constructive delivery reporting is named as an obstacle to certifying and closing a case (SAMM C16.2.9.2). IAs must report it in their execution systems within 30 days of title transfer to the purchasing country.

Physical delivery is the purchaser’s side of the transaction. The customer, or its Designated Government Representative, accepts delivery and signs the receipt and acceptance documents on behalf of the foreign government (SAMM C9.13.1.4). These include the DD Form 1348, a commercial bill of lading, or a government bill of lading with the consignee’s acknowledgment. Security cooperation organizations work with partners to confirm physical delivery of shipments linked to major defense equipment or significant military equipment as soon as practical.

4. Materiel held by third parties

Contractors and other third parties are contractually obliged to care for government property they hold, under the Department’s instruction on accountable property (SAMM C9.13.1.3). IAs must obtain complete supporting documents from them to confirm accountability and the proper transfer of title. The manual calls timely submission critical to audit readiness and to reporting under the Act.

At a minimum, the third party provides the work completion date, expenses, mode of delivery, quantity and requisition number (SAMM C9.13.1.3). Items count as shipped when title passes to the partner or when they leave the consolidation point, whichever applies.

5. Estimated bills

Deliveries are reported before the final price is known. Estimated price codes may be used for physical deliveries if an actual price is not available within 30 days of shipment (SAMM C9.13.2.1). They must be used for major end items if no actual price is available within 90 days. All estimated billings must be converted to actual billings before closure.

The manual describes these estimated delivery reports as E-Bills (SAMM C16.2.9.1). They apply to every open case not pending interim or final closure, and are reported for the entire obligation value, whether or not earlier incremental or accrued bills have been processed. An E-Bill is reversed and restated when the obligation value changes, when shipment status is removed, or when actual final billing occurs.

The manual lists what this means for the purchaser (SAMM C16.2.9.1). Deliveries appear sooner on the quarterly delivery listing. Charges such as the administrative and accessorial charges are assessed more promptly, and discrepancy reports for material not received can be filed sooner. "All E-Bills must be converted to actual bills (A-Bills) before closure" (SAMM C16.2.9.1).

6. The monthly report card

Performance is measured every month (SAMM C9.13.3). DFAS-IN produces an IA report card for DSCA and the implementing agencies, showing delivery reporting trends and detailed transaction data. DSCA, the security cooperation accounting directorate at DFAS and the agencies review it together. Where deliveries were reported later than the 30-day requirement, they look for the root cause and put corrective actions in place.

7. What comes back to the reporting activity

Reporting runs in both directions. Each month DFAS gives reporting activities a Command Pay List showing the total work in process or deliveries charged to cases in the period, excluding accounts payable (FMR Vol. 15, Ch. 8, para. 9.1.1). Its last line should equal the amount the activity receives. A transaction register lists deliveries DFAS could not process, with the reason under each (FMR Vol. 15, Ch. 8, para. 9.1.3.1). Rejected transactions should be corrected and resubmitted within 30 days.

An accounts payable list shows reimbursable deliveries that are not being paid (FMR Vol. 15, Ch. 8, para. 9.1.4.1). The regulation gives three reasons: the country’s funds are frozen, the country lacks enough cash, or the case provides for payment 60 days after delivery. Activities reconcile what they reported against what they were paid, and contact DFAS where the amounts differ (FMR Vol. 15, Ch. 8, para. 9.3).

Key terms

Constructive delivery	Delivery of materiel to a carrier for transport to the consignee, shown by signed shipping documents.
Physical delivery	Receipt of materiel by the purchaser or its representative, who signs the acceptance documents.
Work in process	Accrued expenditures such as progress payments, reported before an item is delivered.
E-Bill	An estimated delivery report for the full obligation value, converted to an actual bill before closure.
IA report card	The monthly DFAS-IN report on each agency’s delivery reporting.

Every statement above links to the document behind it. The full source list for this piece is on the sources page.

This page describes public United States government programs for general information. It is not legal, regulatory or procurement advice, and it does not address the facts of any particular case.

How Sentfore supports this

Between the carrier and the final consignee there is often a last leg that needs secure movement. Sentfore works at the delivery end of defense programs in difficult environments, providing secure movement, protective security, facilities and life support. Requirements can be sent through the contact page.