When a sales case is classified

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1. Unclassified by default

Security cooperation information is unclassified unless someone with authority directs otherwise, under the Security Assistance Management Manual (SAMM) (SAMM C4.3.12). The State Department, the Under Secretary of Defense for Policy, the Assistant Secretary of Defense for International Security Affairs or the Director of the Defense Security Cooperation Agency (DSCA) may direct classification in a particular situation. Information may also be classified where the national security criteria of Executive Order 13526, the Defense Department’s information security manual and matching military department rules call for it. How rare classified offers are, and who pays for them, is covered in inside the Letter of Offer and Acceptance.

Where information is classified, the level is Confidential unless the State Department, the Policy office or the DSCA Director directs a higher level, or the national security criteria require one (SAMM C4.3.12.3).

2. When the buyer asks

A purchaser may ask for its information to be classified, and in exceptional circumstances, with approval, that can happen (SAMM C4.3.12.1). The manual says purchasers should be discouraged from asking. It notes that 10 U.S.C. 130c can, in certain circumstances, keep a purchaser’s sensitive sales information from public release, though information protected that way is not necessarily classified.

The bar is high (SAMM C4.3.12.1). Congress has set a strict standard for classifying sales cases. Where congressional notification is required, section 36(b)(1) of the Arms Export Control Act demands, as justification, a description of the damage to American national security that public disclosure could be expected to cause. How notifications are prepared, including the temporary confidential handling of sensitive ones, is covered in preparing a 36(b) notification package.

3. Estimates follow the same rule

Price and availability data, the early estimates given before an offer, are classified only in rare circumstances (SAMM C5.5.7). Whatever the estimated value or program content, they are classified only when the State Department, the Secretary of War or a designee such as the DSCA Director directs it, or approves a purchaser’s request. Classified estimates cannot be prepared in the case management system. Disclosure rules reach even unclassified estimates where they would lead to later disclosure of classified military information (SAMM C3.2.2). Such disclosures must be authorized in advance by the designated disclosure officials, and it must be stated that no commitment to provide the information is intended until disclosure is approved.

4. What decides it

The State Department, the Policy office and the DSCA Director weigh four main factors before requiring classification of sales information (SAMM C4.3.12.2). The first is whether the purchaser itself considers the information classified. The second is how far disclosure would reveal the purchaser’s order of battle, given the nature and quantity of what is sold and how far the purchaser depends on the United States for military supply.

The third factor looks outward (SAMM C4.3.12.2). It asks whether disclosure could prompt third countries to demand similar articles from the United States or other suppliers, encouraging global or regional instability or an arms race. The fourth is the need to prevent unauthorized disclosure that a specific article is or may be sold to a particular foreign government.

5. Writing a case the system cannot hold

Classifying offers at Secret or above should be strongly discouraged (SAMM C5.6.7). The Defense Security Assistance Management System (DSAMS) is unclassified, so classified information cannot be entered into it, even temporarily. The manual therefore sets out how to use the system for the parts of a classified case that are not classified.

The country must mark its Letter of Request under classification rules and say exactly which data is classified (SAMM C5.6.7.1). Some purchasers want the item’s name kept classified, while others want the quantity or the line description note protected. At a minimum, every paragraph must carry its classification marking, including those that can stay unclassified.

The unclassified bulk of the case can be built in DSAMS (SAMM C5.6.7.2). Classified details are added on approved classified systems after the document is printed, such as on a secure network, or in a separate classified annex. Generic or pseudo line codes may stand in for the real item so it is not disclosed in the system. The correct codes are then written onto the printed document off line, and the hard copy is marked under classification rules.

6. Pricing without giving the item away

Pseudo line codes have a cost (SAMM C5.6.7.2). Pricing and waivers linked to the real code, such as the nonrecurring cost recoupment charge, are not applied automatically, so the case developer must make sure every charge is included. Where entering specific pricing could reveal the item, for example a nonrecurring charge that would identify exactly what is sold, the pricing is done off line and only a total price for the line is entered. The costs of writing and executing classified cases are charged to the purchaser as the manual’s pricing table sets out.

Processing follows a hardcopy route (SAMM C5.6.11.5.2). For classified cases, the implementing agency (IA) enters all the system milestones and tells DSCA’s case writing division in advance that the documents are being handled in hard copy. Unclassified supporting documents go by the normal route, while the classified documents are sent to designated addresses on the secret network.

7. Avoiding classification where possible

Some governments classify their requests for specific secure communications products, but classifying the whole case should be avoided where possible (SAMM C3.7.3.4.4). Shipping classified materiel brings its own requirement. Before it ships, the IA and the purchaser must set out how it will be safeguarded in a detailed transportation plan (SAMM C2.1.5.4.2). The plan is an integral part of every official copy of the offer and should be kept in the Security Cooperation Organization’s case files. How those plans work is covered in transportation plans for sensitive cargo.

Key terms

Confidential	The default level for classified security cooperation information.
Order of battle	The makeup of a country’s forces, which disclosure of a sale might reveal.
Pseudo line code	A generic code used in the case system to avoid naming a classified item.
Classified annex	A separate document holding the classified parts of an offer.
10 U.S.C. 130c	A statute that can protect a purchaser’s sensitive sales information from public release.

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

Sensitive cargo calls for careful handling all the way to delivery. 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.