Supply complete, and reducing a case

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1. When a case is supply and services complete

A Foreign Military Sales case becomes a candidate for closure when all of its lines reach supply and services complete (SSC) (SAMM C16.2.12). The implementing agency (IA) declares a case or line SSC by updating the status and date in its system and informing the purchaser (SAMM C16.2.12.1). The manual makes clear what does not decide the question: the state of data reconciliation, the allocation of funding or manpower, and the transfer of workload are not factors. Only data that prevents delivery or completion of a service counts.

The conditions are concrete. All items are delivered and title has passed (SAMM C16.2.12.1.1). All services are performed (SAMM C16.2.12.1.2). For training, that means every course, mobile training team and extended training or language training detachment is finished, every temporary duty is over and every case-funded salary position has expired (SAMM C16.2.12.1.2.1). For other services, the period of performance has elapsed (SAMM C16.2.12.1.2.2).

A program management line may end no later than 12 months after final delivery or the last other service on the related cases (SAMM C16.2.12.1.2.3). All warranty periods must have elapsed, and no items may be in storage (SAMM C16.2.12.1.3 and SAMM C16.2.12.1.4). If the country is under suspension or sanctions, there must be no deliveries pending, and none that will occur once sanctions are lifted (SAMM C16.2.12.1.5). Once the conditions are met, the IA codes the status and the actual SSC date in the security cooperation systems within five business days, and that coding may not be delayed for any reason (SAMM C16.2.12.2).

2. Reducing the case to what it needs

At SSC the IA reviews the case to decide whether a modification should reduce its value (SAMM C16.2.13). The reduction rests on the Adjusted SSC Value (ASSV). The manual defines it as the minimum the IA considers necessary to cover actual cost to date, plus a reasonable amount for adjustments that may surface during reconciliation. Finishing reconciliation is not needed to set the ASSV or prepare the reduction. The reduced value must cover the highest financial requirement at line level, or the IA must explain any lower figure in its cover memorandum.

3. The thresholds, and asking the purchaser

The residual value is the existing case value less the ASSV (SAMM C16.2.13.1). Table C16.T1 sets the thresholds by case size (SAMM C16.2.13.1.1). A case worth under $500,000 has a threshold of $10,000. The figure rises to $25,000 for cases from $500,000, to $50,000 from $1,000,000 and to $75,000 from $5,000,000. For cases above $10,000,000 it is $100,000.

If the residual value is within those thresholds, the IA must ask the purchaser whether to reduce the case or put it on the To Be Kept Open list (SAMM C16.2.13.1). The instructions must come in writing from the organization that signed the Letter of Offer and Acceptance (LOA). The IA follows up every 60 days until they arrive. If none come within 180 days, the case moves to interim or final closure, and the residual value returns to the purchaser’s holding account as part of closure. If the residual is below the thresholds, or the case should close within six months of SSC, the purchaser need not be asked.

Written instructions may take several forms, including correspondence, documented meeting minutes, email, letters or messages (SAMM C16.2.13.1.1). No format is required, but the instructions must be in writing and come from a partner representative with authority to act for the country or organization.

4. Keeping a case open

If the purchaser means to use the residual value, the IA adds the case to the To Be Kept Open list on written notice from the LOA signatory organization (SAMM C16.2.13.2). When requirements are identified, the IA removes the SSC status and takes the case off the list. Until then it follows up every 60 days and reports status to the Defense Security Cooperation Agency (DSCA) through quarterly closure reporting. After 180 days without disposition the case leaves the list and moves to closure, with the residual returned to the holding account.

The manual limits the purpose of the list. It is meant to let residual value be used, and is not a blanket endorsement for adding funds that would extend execution and delay closure (SAMM C16.2.13.2). Cases added for other reasons, such as purchaser-specific closure thresholds approved by DSCA, are reviewed every 90 days.

5. Processing the reduction, and the exceptions

If the purchaser wants the residual released, the IA prepares an LOA modification reducing the case to the ASSV (SAMM C16.2.13.3). Where other changes need an amendment, the reduction can be folded into it. Later modifications may follow as reconciliation brings further substantial reductions. The thresholds do not apply to concurrent modifications, or where a modification must cover accounting system overages (SAMM C16.2.13.4.1).

If closure certification is expected within six months of the planned modification, no modification is prepared, because the closure certificate itself will reduce the case (SAMM C16.2.13.4.2). The IA reconsiders if the closure date slips. Exceptions to the thresholds, or to the 180-day timelines, should be driven by the purchaser, kept to a minimum and sent to the DSCA Country Finance Director (SAMM C16.2.13.4.3).

6. Changes after SSC

Amendments are generally not needed on SSC cases (SAMM C16.2.14.1). An amendment that increases scope or value and would restart logistics activity needs DSCA approval before it is developed. A modification is required if expenditures during reconciliation exceed 110 percent of the LOA value (SAMM C16.2.14.2). None is needed at closure when final expenditures stay within the total case value, even if individual lines are exceeded, because the closure certificate serves as the adjusting document.

Key terms

Supply and services complete (SSC)	The status of a case or line once delivery, services, warranties and storage are all finished.
Adjusted SSC Value (ASSV)	The minimum value needed to cover actual cost and reasonable adjustments at SSC.
Residual value	The existing case value less the ASSV.
To Be Kept Open list	The list of SSC cases held open, at the purchaser’s written request, to use residual value.
Highest financial requirement	The line-level figure a case reduction must cover unless a lower one is explained.

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.

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