Requested and revised payment schedules

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1. A schedule the purchaser asks for

A purchaser eligible for dependable undertaking may ask for a specific payment schedule on a case, under the Security Assistance Management Manual (SAMM) (SAMM C9.9.2). The request may reflect its internal budget allocation, other constraints, or a wish to pay faster. Partners not eligible for dependable undertaking have no payment schedule at all and must use the cash with acceptance term of sale (SAMM C9.9.1.1). How the standard schedule is built from line-level data is covered in how a payment schedule is built.

The implementing agency (IA) reviews the request before sending the offer package to the Defense Security Cooperation Agency (DSCA) for case preparation (SAMM C9.9.2.1). A copy of the purchaser’s request goes in with the case preparation request. The IA then approves the schedule as part of coordinating and countersigning the Letter of Offer and Acceptance (LOA).

2. Tested against the standard

DSCA’s case writing division builds the standard schedule anyway, including any contract termination costs, and compares the two (SAMM C9.9.2.2). The question is whether the purchaser’s schedule provides enough money to meet the needs the standard schedule projects. If it does, DSCA proceeds. If it does not, DSCA tells the IA, copies DSCA’s country finance director, and returns the case document for further action.

At that point the IA has two options (SAMM C9.9.2.2). It may consult the country finance director and deny the request, or it may work with the purchaser to redefine the requirements. The termination liability worksheet is part of the comparison. It is first based on the government’s schedule, including contractor termination costs, and then recalculated on the purchaser’s schedule if that schedule is approved.

An approved purchaser schedule appears on the offer with a standard note beneath it (SAMM C9.9.2.3). The government’s standard schedule does not appear on the offer. It is kept in the case file and in the Defense Security Assistance Management System (DSAMS).

The note records that the purchaser requested the schedule, with a reference, and names the activity that approved it and the date (SAMM Appendix 6 note on purchaser requested schedules). It also reserves the government’s right to bill more if actual costs arise faster than the purchaser’s schedule can support. Schedules driven by purchaser requisitions carry a different note, stating that the schedule is only the government’s best approximation and depends on actual requisitioning (SAMM Appendix 6 note on requisition driven schedules).

3. Why schedules change

Schedules need updating when delivery schedules, scope, prices, contract award dates or contractor payment milestones change (SAMM C9.9.3). IAs review them in the annual case review to see if updates are needed. On offers that required congressional notification, IAs must update the schedule once the main contract for the procurement lines has been awarded. Each quarter, DSCA’s regional financial division also sends IAs a list of cases where it recommends updating the schedule to reduce early collections.

The update itself follows set steps (SAMM C9.9.3). The IA updates every months field on each line, including the delivery schedule where it applies, and the line pricing. DSCA’s case writing division then recalculates the schedule using the DSAMS curves. The IA issues the revision by modification or amendment as appropriate, taking account of the partner’s requirements. It must talk to the partner before the modification and give the partner a copy, so the partner sees the revised payment and delivery schedules.

Reviews can also prompt changes (SAMM C9.9.3). A financial management review, a security assistance management review, a case review or a program management review may lead to an update, as may the amendment or modification process itself. IAs must state any unique schedule request clearly in the cover memorandum, the DSAMS case remarks or the Letter of Request. Without such guidance, DSCA prepares the schedule under its normal business process.

4. The two revision formats

Amendments and modifications show revised schedules in slightly different tables. An amendment uses a format with rows for previous payments scheduled, current government financial requirements, the amount received from the purchaser, and the amount due with amendment acceptance, followed by the dated quarterly payments (SAMM C9.9.3.2). Where the term of sale is cash with acceptance, or the case is fully funded with non-repayable credit or merger funds without cash flow financing, the amount due with acceptance equals the increase in case value.

A modification uses the same rows except that the line for amount due with acceptance becomes revised payments scheduled (SAMM C9.9.3.3). In the same cash with acceptance or fully credit-funded situations, the next quarterly payment due equals the increase in case value. When each kind of change document is used is covered in amendments and modifications.

5. Counting what has been paid

Revised schedules on amendments and modifications show the amount the purchaser has already paid, as well as the quarterly payments (SAMM C9.9.3.4). The revised schedule rests on the financial requirements still remaining on the case. Those requirements are computed first, and then the collections already received are taken into account.

6. Which cases are looked at first

The manual lists criteria for prioritizing offers where money has been collected early (SAMM C9.9.3.1). They include offers less than 75 percent collected or delivered, funded only by the partner, under dependable undertaking, and outside any special billing arrangement or purchaser-requested schedule. Collections must exceed disbursements by at least $1 million. The offer must have been implemented for at least a year and be at least 15 percent financially executed.

Purchasers are not limited to waiting for that list (SAMM C9.9.3.5). A purchaser that wants a case schedule reviewed or revised sends its request to the IA concerned. How billing interacts with the schedule is covered in payment schedules and billing.

Key terms

Purchaser-requested schedule	A payment schedule set by the purchaser, approved only if it covers projected needs.
Standard schedule	The government’s own schedule, kept in the case file when a purchaser schedule is used.
Early collections	Money collected ahead of need, which a schedule update can reduce.
Due with amendment acceptance	The payment due when a purchaser accepts an amendment.
Revised payments scheduled	The row in a modification’s schedule showing new payment amounts.

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

Changes to a case often follow changes on the ground. 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.