Insights

Sources

Every document cited in the Insights pieces, with the date each was last checked.

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Statute and regulation are quoted from the Office of the Law Revision Counsel and the Electronic Code of Federal Regulations. Programme procedure is quoted from the Security Assistance Management Manual, DSCA 5105.38-M, by chapter and section. Figures come from the Department of State and from DSCA. Each piece also links every statement to its source in the body text.

1. What Foreign Military Sales is and who takes part

2. Foreign Military Sales or Direct Commercial Sales

3. How an FMS case is built, from request to agreement

4. Congressional notification of arms sales under 36(b)

5. How a US company supplies a Foreign Military Sale

Foreign Military Financing

1. What Foreign Military Financing is and who runs it

2. Grant financing, loans and guaranties

3. Where Foreign Military Financing may be spent

4. What non-repayable funding changes on a case

5. How Foreign Military Financing is appropriated and notified

Offsets

1. What an offset is and who is party to it

2. The United States position on offsets and cost recovery

3. Reporting offsets to the Bureau of Industry and Security

End Use Monitoring

1. What end use monitoring is and where it comes from

2. Routine and enhanced end use monitoring

3. Storage site certification and serial number inventories

4. Golden Sentry visits, ratings and hostile environments

Excess Defense Articles

1. What excess defense articles are and who can get them

2. The conditions on an excess defense articles transfer

3. Who pays for an excess defense articles transfer

Transportation and Delivery

1. Title transfer and who carries the risk in transit

2. Delivery term codes and freight forwarders

3. The Defense Transportation System and delivery documents

4. Cargo preference and the rules on flag carriers

5. Transportation plans for classified and explosive cargo

Building Partner Capacity

1. What Building Partner Capacity is and who the customer is

2. Section 333, the authority to build partner capacity

3. How a BPC case runs and closes on appropriated money

Humanitarian and Disaster Aid

1. What OHDACA funds and the authorities behind it

2. How a humanitarian assistance project is approved

3. Humanitarian mine action and excess property transfers

4. Moving donated supplies and responding to a disaster

Technology Transfer and Export Control

1. Technology transfer and how a release decision is made

2. Disclosure of classified military information

3. Export licenses and customs clearance on a shipment

4. Technical data and what a purchaser can be given

5. Anti-tamper and system specific release requirements

International Training

1. The authorities behind international military training

2. What the IMET program funds

3. Who may be trained, and what the program will not fund

4. Screening an international military student

Logistics and Discrepancies

1. Priority of supply and force activity designators

2. Supply discrepancy reports and the deadlines on them

3. Cooperative logistics supply support arrangements

Pricing, Payment and Billing

1. Terms of sale and the dependable undertaking

2. Payment schedules, billing and late payment

3. What goes into the price, and what can be waived

Case Closure

1. How a case is reconciled and closed

2. Closure deadlines and what happens to leftover funds

Case Changes and Reviews

1. Amendments and modifications

2. Case reviews and how often they happen

3. Suspension, cancellation and what each one stops

International Students

1. Travel orders and the English language threshold

2. What a training place costs

3. Living allowance, healthcare and dependents

Letters of Request

1. Before a letter of request

2. The three kinds of answer to a letter of request

3. Inside the letter of offer and acceptance

Eligibility and Scope of Sale

1. Who may buy, and how eligibility works

2. What may be purchased, and on what terms

3. What may not be purchased, and the exceptions

Shipping and Claims

1. Packaging, marking and insurance

2. Notices of availability and what transport costs

3. When a shipment is lost, damaged or sent back

Offices and People

1. The security cooperation organization

2. What the office does for industry

3. The case manager and the budget cycle

Authorities and Funding

1. Security cooperation and security assistance

2. Who holds which authority

3. Where the money comes from, and when it runs out

Financing and the Trust Fund

1. Paying with a bank letter of credit

2. Foreign military sales credit and who may receive it

3. The trust fund, and getting money back out of it

Budget, Forecasting and Audit

1. How the administrative budget is built

2. The forecast, and the Javits report to Congress

3. Auditing the security assistance accounts

Systems and Data

1. How security cooperation systems get funded

2. The systems a case runs on

3. Where the data is held, and who can see it

Writing the Agreement

1. How a Letter of Offer and Acceptance is drafted

2. Changing a case, and the scope test

3. The approvals a case has to carry

Teams in Country

1. The teams sent to a partner country

2. How a team is asked for and manned

3. Who a deployed team answers to

Multinational Sales

1. When one nation buys for several

2. Buying through an agent

3. Getting the equipment to the participants

Case Development Controls

90. The review before the document is written

91. Putting a case on hold

92. How a case gets countersigned

Before the Case Is Written

93. Planning and advice before a request

94. Buying a system still in testing

95. Naming the item, and the clock on a request

Manpower and Training Costs

96. Who pays for the people on a case

97. How training is priced on a case

98. The small case management line

Line Level Financial Review

99. Pricing equipment sold from stock

100. Line level review of a case

101. Sharing cost, and paying under assessment

Inside the Embassy Office

102. The embassy office and a new case

103. Planning training from the embassy

104. Security duties in the embassy office

Contracting for a Case

105. What a buyer may say about the contract

106. Agents, commissions and contingent fees

107. Diversions, returns and buy backs

Writing a Capacity Building Case

108. Planning a grant funded program

109. Writing a capacity building case

110. Services and training on a grant case

Grant Money and Program Changes

111. Obligating money on a grant case

112. Amending a grant funded case

113. Redirecting equipment to another partner

Humanitarian Project Rules

114. What makes a humanitarian project fundable

115. Training on a humanitarian project

116. Changing a humanitarian project

Sensitive Systems and Export Compliance

117. Electronic warfare and friend or foe systems

118. Escorting classified cargo and filing the export

119. Planning a compliance visit, and reporting a violation

Classifying Defense Articles

120. Who decides what is a defense article

121. Commodity jurisdiction and the order of review

122. Specially designed and the terms that scope the list

Commercial Export Licenses

123. Reexports, retransfers and end use assurances

124. Temporary licenses and special conveyances

125. Congressional certification and general exemptions

Defense Services Agreements

126. What a defense services agreement is

127. Filing and ending a defense services agreement

128. Offshore procurement, warehousing and space systems

Licensing Exemptions

129. The government and official use exemption

130. Streamlined pathways for close allies

131. Comprehensive authorizations for major programs

Brokering Controls

132. What counts as brokering

133. Getting approval for a brokering transaction

134. Broker filings, guidance and annual reports

Violations and Penalties

135. What counts as an export violation

136. Penalties, debarment and the presumption of denial

137. The voluntary disclosure policy

138. How an export enforcement case is heard

Registration and Reporting

139. Registering as a manufacturer or exporter

140. Reporting fees, commissions and political contributions

Military Assistance Authorities

141. The military assistance program in the statute

142. Drawdowns and peacekeeping assistance

143. Delegation, debarment and waiver powers

Assistance Program Controls

144. Stockpiles, overseas staff and major non-NATO allies

145. Reporting to Congress on assistance programs

Nonproliferation, Antiterrorism and Cyber

146. Nonproliferation and export control assistance

147. Antiterrorism assistance for foreign law enforcement

148. Cyberspace and digital connectivity assistance

Military Engagement Authorities

149. Personnel exchanges and liaison officers

150. Training and exercises with foreign forces

151. Operational support and ministry of defense advisors

Regional Centers and Institutes

152. The regional centers for security studies

153. The Western Hemisphere Institute

154. The Irregular Warfare Center and fellowship program

155. State partnerships and centers of excellence

Acquisition and Cross-Servicing

156. What an acquisition and cross-servicing agreement is

157. Paying for cross-servicing transactions

158. Airlift, refueling, test ranges and overseas repair

Cooperative Programs and Contributions

159. Cooperative research and development agreements

160. Cooperative projects under the Arms Export Control Act

161. Foreign contributions and burden sharing

Security Cooperation Administration

162. How Defense Department security cooperation is managed

163. The security cooperation workforce

164. The annual security cooperation report

Academies and Partner Schools

165. Foreign cadets at the service academies

166. Specialized schools for partner forces

Trust Fund Accounting

167. The Treasury accounts behind Foreign Military Sales

168. Budget and obligational authority on a case

169. How the trust fund keeps its books

Cash Management

170. Cash management in the trust fund

171. How the cash advance on a case is calculated

Financial Controls and Records

172. The case file and how long it is kept

173. Accounting for administrative funds

174. Year end, write-offs and the Antideficiency Act

Pricing Services and Support

175. How personnel services are priced

176. How a supply support arrangement is priced

177. Pricing storage, repair, facilities and publications

Procurement Pricing and Waivers

178. Pricing a new procurement for a sale

179. Waivers, exclusions and pricing exceptions

Billing and Cost Recovery

180. The billing statement and delivery listing

181. How contract administration costs are billed

182. How transportation costs are billed

Standby Letters of Credit

183. The standby letter of credit for termination liability

184. Setting up a standby letter of credit

185. Drawing on and ending a standby letter of credit

Surcharge Accounts and Reviews

186. Managing the administrative surcharge account

187. The contract administration and transportation accounts

188. Financial reviews and the financial statements

Executing and Reconciling a Case

189. Implementing a case and warning of delays

190. Delivery reporting on a case

191. Reconciling an active case

Problems, Reductions and Closure

192. Problem disbursements and unpaid bills on an active case

193. Supply complete, and reducing a case

194. Closure priorities, certification and reporting

Leases and Other Sales

195. Leasing defense articles

196. Section 30 sales and construction services

197. Procurement, surveys and administrative expenses

Delivering Capacity Building Equipment

198. Shipping capacity building equipment

199. Handing over capacity building equipment

200. The consolidation point and delivery by air

Planning Grant Aid and the IMET Year

201. How a security cooperation organization plans

202. Planning and funding the IMET year

203. IMET student travel and allowances

204. IMET program costs and training it will not fund

International Students in Practice

205. How a student’s healthcare is covered

206. Who does what on student healthcare

207. Unauthorized absence, cancellation and sanctions

208. Diplomas, records and liaison officers

Other Training Routes

209. Other routes into American military training

210. Observer training and orientation tours

Preparing the Offer

211. Preparing an offer

212. Support terms and pen and ink changes in an offer

213. International competitions

214. Preparing a 36(b) notification package

Running Humanitarian Programs

215. Managing and reporting humanitarian programs

216. Humanitarian construction and partner terms

Munitions List: Weapons

217. How the Munitions List is organized

218. USML Category I: firearms

219. USML Category II: guns and armament

220. USML Category III: ammunition and ordnance

221. USML Category IV: rockets, missiles and munitions

222. USML Category V: explosives and energetic materials

Munitions List: Platforms

223. USML Categories VI and XX: naval vessels

224. USML Category VII: ground vehicles

225. USML Category VIII: aircraft

226. USML Category XIX: gas turbine engines

Munitions List: Electronics and Sensors

227. USML Category XI: sonar, radar and electronic warfare

228. USML Category XI: communications, sensors and components

229. USML Category XII: fire control, lasers and night vision

230. USML Category XII: guidance, navigation and components

231. USML Category XV: spacecraft

Munitions List: Training, Protection and Materials

232. USML Category IX: training equipment and training

233. USML Category X: personal protective equipment

234. USML Category XIII: materials, armor and cryptography

Pricing Articles and Offers

235. How prices are estimated on an offer

236. How items sold from stock are priced

237. Pricing excess articles and firm prices

238. How the nonrecurring cost charge is calculated

239. Pricing duties and above-the-line costs

Pricing Training

240. How tuition rates are set

241. How a full cost tuition rate is built

242. How an additional cost tuition rate is built

243. Pricing dedicated programs and training teams

244. The Field Studies Program and student costs

Case Accounting

245. How a case is accounted for

246. The Planning Directive and the OA request

247. How the administrative surcharge is applied

248. How supporting activities are reimbursed

249. The accounting steps in closing a case

Training Plans and Reports

250. How the annual training working group works

251. How the foreign military training report is built

252. The living allowance during training

Release Gates for Sensitive Systems

253. Releasing secure communications equipment

254. Screening missile technology and large drones

Paying for a Case

255. Paying for work before a case exists

256. How a payment schedule is built

257. Requested and revised payment schedules

258. Special billing arrangements

259. Keeping and losing the dependable undertaking

Running a Capacity Program

260. Who does what on a capacity building program

261. From gap analysis to sole source on a capacity case

262. After funds are obligated on a capacity case

Sole Source, Changes and Secrecy

263. When a buyer names the supplier

264. What a modification may change

265. Changing a sale Congress has already seen

266. When a sales case is classified

Humanitarian Money and Cargo

267. How OHDACA money is obligated and returned

268. What OHDACA pays for, cost by cost

269. Paying for foreign disaster relief

270. Shipping donated humanitarian cargo

271. Buying and shipping humanitarian project equipment

Country Policy and the Treaties

272. The ITAR policy of denial

273. Country exceptions to the policy of denial

274. How the defense trade treaties work

275. Moving items within a treaty community

276. Marking and records for treaty exports

Licenses From Application to Revocation

277. Authorizations and who may hold them

278. What a license application must show

279. Filing export information for ITAR shipments

280. When a license is denied or revoked

281. Suspensions, satellite parts and underwater vehicles

ITAR Definitions and Technical Data

282. What counts as an export under the ITAR

283. Dual national and third-country national employees

284. ITAR definitions that set the level of control

285. Licensing technical data and classified exports

286. The technical data exemptions

Terrorism and Missile Controls

287. How the terrorism ban binds the government

288. The terrorism ban for companies and its waiver

289. Missile licenses and sanctions on American persons

290. Missile sanctions on foreign persons

Chemical, Biological and Nuclear Sanctions

291. Sanctions for aiding chemical or biological weapons

292. Aid cutoffs for enrichment and reprocessing transfers

293. Sanctions for nuclear explosive device transfers

Allied Arrangements and Special Funds

294. Exchanging support and medical care with allies

295. NATO support programs and foreign project contributions

296. How the Special Defense Acquisition Fund works

Assistance Procurement and Claims

297. Where assistance funds may buy

298. Contracting authority and the five-year limit

299. False claims, improper payments and patent claims

Assistance Funds and Property

300. Allocating assistance funds to other agencies

301. Retained items, excess property and facilities abroad

302. What assistance administrative funds may pay for

Assistance Personnel and Participants

303. Staffing assistance programs

304. Missions, details and coordination abroad

305. The IMET statute, exchanges and participant records

Assistance Reports and Limits

306. The annual assistance report and strategy

307. Findings, notices and public assistance data

308. Standing bars, caps and winding up

Contractors in Operational Areas

309. When the operational area clause applies

310. Working under the operational area clause

311. Supporting deployed forces under DFARS 252.225-7040

312. Conduct, rights and accountability for deployed contractors

313. Medical and dental fitness for deploying contractors

Private Security Contractors

314. Private security functions under the FAR and DFARS

315. How private security contractors are governed

316. Arming and accounting for private security personnel

Operational Contract Support

317. What operational contract support means

318. Who counts as deployed contractor personnel

319. What the contract can and cannot do abroad

Contractor Deployment Cycle

320. Deployment processing for contractor personnel

321. Credentials, reception and return of contractors

322. Government support to deployed contractors

323. Tracking and recovering deployed contractors

Contractor Conduct and Liability

324. Discipline, force protection and arming in theater

325. Criminal jurisdiction over contractors abroad

326. Workers compensation under the Defense Base Act

Buy American for Supplies

327. What makes an end product domestic

328. When Buy American does not apply to supplies

329. Pricing a domestic offer against a foreign one

330. How trade agreements affect federal purchases

Construction and Overseas Content

331. Domestic construction materials in US projects

332. Construction material requests and noncompliance

333. The Balance of Payments Program overseas

Specialty Metals and Covered Materials

334. What counts as a specialty metal

335. Exceptions to the specialty metals rule

336. Specialty metals waivers and determinations

337. Magnets, tantalum and tungsten from covered countries

Domestic Source Restrictions

338. Berry Amendment food, clothing and textiles

339. Items tied to the national industrial base

340. Bearings, steel plate, forgings and shipyards

341. Solar devices in Defense energy and housing contracts