Handing over capacity building equipment

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1. Still American property on arrival

Equipment bought on a Building Partner Capacity (BPC) case reaches the partner country as property of the United States. It travels as government-owned materiel and is delivered to the security cooperation organization (SCO), another government employee or a designee in the partner’s territory (SAMM C15.5.6.4). It stays government property until it has cleared the partner’s customs and been physically handed over. The SCO keeps title and custody until the partner is ready to receive it.

One legal step comes first. The International Traffic in Arms Regulations require the government to obtain appropriate end-use and retransfer assurances from the partner before it transfers a defense article or service in a Defense Department security cooperation activity (SAMM C15.5.6.4). Contractors that execute BPC cases must comply with those regulations in their dealings with both governments. How the shipment gets there is covered in shipping capacity building equipment.

2. Customs and the delivery address

Materiel goes to the Mark For address on the contract, or the address available at booking (SAMM C15.5.6.3.1). The SCO sends the implementing agency (IA) any corrections if a change is still possible. Partner officials normally process the materiel through customs on arrival, before it is released into the SCO’s custody. The partner’s customs office may approve release to the SCO ahead of customs procedures if that helps.

The SCO enters the receipt date in the Security Cooperation Information Portal (SCIP) and reports it to the responsible office of the Defense Security Cooperation Agency (DSCA), which verifies it (SAMM C15.5.6.3.1). That applies even if another government employee received the materiel. Detention and demurrage charges are funded from current year BPC program funds, either as a separate case line or through a BPC transportation case. Concerns about storage costs or customs fees go to the responsible DSCA office.

3. Checking what arrived

On arrival, the SCO, another government employee or a designee checks the skid count and confirms that no skid shows obvious signs of tampering (SAMM C15.5.6.3.2). The check is recorded on DD Form 1907, the Signature and Tally Record. "SCOs must report the delivery and receipt of materiel within 30 days" (SAMM C15.5.6.3.2).

The manual offers four ways to report (SAMM C15.5.6.3.2). Receipt can be entered directly in SCIP for a single shipment, which also prints a bar-coded issue release document. That method is most useful when shipping documents are missing but needed later for bar code scanning, inventory or stock issue. Several receipts can be confirmed manually in SCIP from data already there. A spreadsheet report can be uploaded when the SCO next has access, a method meant for users with limited access to the portal. It can also be emailed for offline reporting, using a template available in SCIP and from the Defense Security Cooperation University. Other formats need DSCA approval.

4. Joint inventory and the transfer document

Items count as delivered when the materiel and title pass to a representative of the benefitting partner (SAMM C15.5.6.5). Before that, the SCO or another government employee and the partner’s representative carry out a joint inventory against the shipper’s manifest while the materiel is still in American custody (SAMM C15.5.6.5.1). A designee may take part only for unclassified materiel. Anything suspected missing is reported to the IA, to check that it is not in a later delivery. Initial equipment testing is the job of the initial operator training. The SCO tells the partner it has a limited window to report equipment that does not work as intended.

The title transfer is then recorded on a Transfer and Receipt document or a comparable form (SAMM C15.5.6.5.2). It must be signed before physical transfer, unless DSCA gives written direction to transfer earlier because of urgent need. It also reminds the partner of its obligations on use, disposition and security under its section 505 agreement. A materiel inventory list, by case, line, part number, stock or serial number and quantity, is attached (SAMM C15.5.6.5.2.2).

Equipment under the Coalition Readiness Support Program is handled differently, because it is loaned and title does not pass (SAMM C15.5.6.5.2.1). A custody transfer document is still prepared, but its content differs.

5. Signatures and the notified unit

The SCO or another government employee and the partner’s representative both sign, and the partner thereby assumes title, custody and responsibility (SAMM C15.5.6.5.3). Designees may not sign. Where another government employee presented the articles or services to the partner, that employee must give the signed document to the SCO. Missing or damaged materiel is reported on a Transportation Discrepancy Report (SAMM C15.5.6.5.3.1). If the partner will not sign, the SCO sends the IA the unsigned document with an explanatory memo (SAMM C15.5.6.5.3.2).

Delivery is tied to the congressional notification. Equipment, services and training may be transferred only to the partner unit included in the notification, and no unit not listed may receive them (SAMM C15.5.6.5.4).

6. Reporting the handover

Within 30 days of receiving the materiel, the SCO sends a copy of the signed document to the IA and the DSCA portfolio director, and enters it in SCIP (SAMM C15.5.6.5.5). The IA then posts the shipment in its systems. Where a shipment control number was used, the document is uploaded to it (SAMM C15.5.6.5.5.1). From then on, the SCO and the partner carry out end use monitoring inspections under the Golden Sentry program, and keep records of monitored items in the portal’s end use monitoring community (SAMM C15.5.6.5.5). The manual also encourages the SCO to hold a handover ceremony to mark the relationship publicly (SAMM C15.5.6.5).

Key terms

Benefitting partner	The foreign partner that receives the equipment, services or training on a grant case.
DD Form 1907	The Signature and Tally Record used to document the skid count on arrival.
Transfer and Receipt document	The signed record of title transfer, with an inventory list attached.
Transportation Discrepancy Report	The report of materiel confirmed missing or damaged in transit.
Congressionally notified unit	The partner unit named in the notification, the only unit that may receive the items.
Mark For address	The delivery address on the contract, or the one available at booking, to which materiel is sent.

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

The handover is where a program meets the ground, and it depends on secure arrival. 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.