Foreign Military Sales glossary and acronyms

Costs identified as line (8) Net Estimated Cost under the Estimated Cost Summary section in the Letter of Offer and Acceptance (LOA). This is inclusive of materiel and/or services, and other charges, when applicable, such as the Contract Administrative Surcharge, Unfunded Civilian Retirement, Civilian Fringe Benefits, Non-Recurring Costs, Commercial Repair and Return Program Support Charges, and more. The FMS Administrative Surcharge is calculated based on line (8) Net Estimated Cost.

The act of an authorized representative of the government by which the government assumes for itself, or as agent of another, ownership of existing and identified supplies tendered, or approves specific services rendered, as partial or complete performance of the contract on the part of the contractor. See also Letter of Offer and Acceptance.

The date on which an authorized representative of the foreign partner signed the LOA document.

A Letter of Offer and Acceptance signed by an authorized representative (e.g., Foreign Military Sale case signed by the foreign purchaser’s government or Building Partner Capacity case signed by the DoD Implementing Agency).

The costs of Packing, Crating, and Handling, and transportation which are incidental to issues, sales, and transfers of materiel and are not included in the standard price or contract cost of materiel. An exception to this is Working Capital Fund items.

A two position alphanumeric field which identifies a specific line of accounting within a contract or funding document.

Amounts owed by the DoD to other entities for goods and services received (i.e., actual or constructive receipt), progress in contract performance, and rents due to other entities.

Assets that arise from specifically identifiable, legally enforceable claims to cash or other assets through an entity’s established assessment processes or when goods or services are provided.

The financial value of delivered articles and services and incurred costs reported to DFAS-IN via Delivery Transactions. Incurred costs represent disbursements for which no physical deliveries have yet occurred. Examples are: progress payments to contractors, GFM/GFE provided to contractors, and nonrecurring costs.

Materiel management codes, listed in Table 58, Volume 10 of the Cataloging Data and Transaction Standards used to specify requirements, restrictions, and methods for acquiring an item.

Agreement, negotiated on a bilateral basis with countries or international organizations, that allow U.S. forces to exchange most common types of support, including food, fuel, transportation, ammunition, and equipment.

A cost sustained in fact, on the basis of costs incurred, as distinguished from forecasted or estimated costs.

A code that identifies the type of action being taken in reply to the Foreign Military Sales (FMS) customer Supply Discrepancy Report. ARCs are transmitted to Defense Finance and Accounting Service-Indianapolis by an FMS case Implementing Agency in FMS delivery/performance Reports.

The USG contracting officer who is assigned the responsibility for the administration of USG contracts.

The value of costs associated with the administration of the Foreign Military Sales (FMS) program. The prescribed administrative percentage cost for a case appears in the Letter of Offer and Acceptance (LOA). This percentage is applied against the case. Expenses charged directly to the FMS case (as prescribed by the LOA) are not included. May be commonly referred to by the generic code "L6A" for administrative costs.

The time interval between the initiation of procurement action and the letting of a contract or the placing of an order.

The financial institution that provides overarching guidance to the Participants regarding a Letter of Credit (LC). Duties include providing notification to the Beneficiary when a Letter of Credit has been opened on behalf of the Foreign Military Sales (FMS) partner, authenticating and transferring the LC to the Beneficiary, and advising the Beneficiary on the terms and conditions of the LC. The Advising Bank often serves as the Confirming Bank, but these roles may be filled by different financial institutions as well.

A cost is allocable to a USG contract if it: a. Is incurred specifically for the contract; b. Benefits both the contract and other work, and can be distributed to them in reasonable proportion to the benefits received; or c. Is necessary to the overall operation of the business, although a direct relationship to any particular cost objective cannot be shown.

A further subdivision of allotments. Within DoD, the term has been used to refer to departmental-level accounting entity distributions of apportionments, or funds that do not require apportionment, to an operating Agency or other intermediate level accounting entity.

Subdivisions of apportionments that are made by the heads of agencies, or their designee, to incur obligations within a prescribed amount. Subdivision and distribution of an allotment (e.g., sub-allotments and allocations to operating agencies or installation-level accounting activities) must contain at least the same legal and other limitations applicable to the original allotment. Such subdivisions and distributions may establish additional legal and other limitations applicable to execution of budgetary resources.

An Amendment of a Foreign Military Sales (FMS) case constitutes a change in scope to an existing Letter of Offer and Acceptance (LOA) and requires FMS purchaser acceptance.

The date an FMS Letter of Offer and Acceptance (LOA) is anticipated to be offered to the customer based on the standards set for the case development category of the LOA.

Federal law that prohibits the making of expenditures or the incurring of obligations in advance of an appropriation; prohibits the incurring of obligations or the making of expenditures in excess of amounts available in appropriation or fund accounts unless specifically authorized by law (31 U.S.C. 1341(a)); prohibits the acceptance of voluntary or personal services unless authorized by law (31 U.S.C. 1342); requires the Office of Management and Budget, via delegation from the President, to apportion appropriated funds and other budgetary resources for all executive branch agencies (31 U.S.C. 1512); requires a system of administrative controls within each agency (see 31 U.S.C. 1514 for the administrative divisions established); prohibits incurring any obligation or making any expenditure in excess of an apportionment or reapportionment or in excess of other subdivisions established pursuant to sections 1513 and 1514 of title 31 of the United States Code (31 U.S.C. 1517); and specifies penalties for deficiencies (see Anti-deficiency Act Violation).

A distribution made by the Office of Management and Budget of amounts available for obligation and expenditures in an appropriation or fund account into amounts available for specified time periods (usually fiscal quarters), programs, activities, projects, objects, or any combination of these. The apportioned amount limits the obligations that may be incurred. An apportionment may be further subdivided by an agency into allotments, sub-allotments, and allocations.

A provision of law (not necessarily in an appropriations act) authorizing the expenditure of funds for a specified purpose. Usually, but not always, an appropriation provides budget authority, which is authority provided by law to incur financial obligations that will result in outlays. For purposes of the Antideficiency Act, the term "appropriations" may have a broader meaning. As defined by the Antideficiency Act, it means all new budget authority and balances of budget authority as described in Office of Management and Budget Circular No. A-11, Section 20.4.

The basic U.S. law providing the authority and general rules for the conduct of Foreign Military Sales and commercial sales of defense articles, defense services, and training. The Arms Export Control Act (AECA) came into existence with the passage of the Foreign Military Sales Act (FMSA) of 1968. An amendment in the International Security Assistance and AECA of 1976 changed the name of FMSA to the AECA.

The 4-digit alphanumeric character assigned by DSCA to each AECA, Section 36(b) CN that identifies the year and sequential number of the transmittal (e.g. 03-30, 03-AB, 0A-03, or 03-0A, depending on the type of CN) for tracking and documentation.

The sale, lease, loan, or other transfer of defense articles and defense services such as arms, ammunition, and implements of war, including components thereof, and the training, manufacturing licenses, technical assistance, and technical data related thereto, provided by the USG under the authority of the Foreign Assistance Act of 1961, as amended, or the Arms Export Control Act, as amended, or other statutory authority, or directly by commercial firms to foreign countries, foreign private firms, or to international organizations. See also conventional arms transfers.

Report from the geographic Combatant Command (CCMD) to DSCA which communicates a summary of existing humanitarian assistance needs and gaps in the region and identifies Overseas Humanitarian, Disaster, and Civic Aid (OHDACA) projects and other OHDACA funding requirements to address regional needs, capability gaps, and CCMD objectives

The total destruction of a DoD capital asset (e.g., a training aircraft) when a foreign student was in physical control of the asset or as a direct result of negligence, simple or gross.

A term used to represent the cognizant audit office designated by the Defense Contract Audit Agency or military service audit activities for conducting audit reviews of the contractor's accounting system policies and procedures for compliance with the criteria.

Basic, substantive, legislation enacted by Congress that establishes or continues the legal operation of a federal program or agency, either indefinitely or for a specific period of time, or which sanctions a particular type of obligation or expenditure. An authorization normally is a prerequisite for a subsequent appropriation but does not itself provide budget authority. Under the rules of both houses, the appropriation for a program or agency may not be considered until its authorization has been considered; however, failure to pass an authorization bill will not prevent enactment of an appropriations act. An authorization also may limit the amount of budget authority to be provided or may authorize the appropriation of "such sums as may be necessary.”

Costs identified in the Letter of Offer and Acceptance (LOA) in lines (9) Packing, Crating, and Handling, (10) Administrative Charge, (11) Transportation, and (12) Other under the Estimated Cost Summary section in the LOA. These costs are added to line (8) Net Estimated Cost to arrive to line (13) Total Estimated Cost. Normally, the DFAS Security Cooperation Accounting (SCA) retains the obligational authority necessary to execute these costs. These costs include all applicable surcharges other than the Contract Administrative Surcharge, Unfunded Civilian Retirement, Civilian Fringe Benefits, Non-Recurring Costs, Commercial Repair and Return Program Support Charges, among others.

The entity that is entitled to have its complying presentation for payment honored under the Letter of Credit (e.g. DSCA).

A partner nation that receives defense articles and/or services through the implementation of a Building Partner Capacity (BPC) case.

This is a Defense Finance and Accounting Service-Indianapolis country assigned code that divides Foreign Military Sales (FMS) customer country billings into management levels lower than a U.S. Implementing Agency or in-country service. This code often correlates to an FMS customer paying office. It appears in Block 3 of the DD Form 645. Basic alpha codes are derived from the Letter of Offer and Acceptance (LOA). The FMS customer should ensure that the proper bill code is indicated upon acceptance of an LOA.

A Foreign Military Sales Letter of Offer and Acceptance (LOA) that provides categories of defense articles and/or defense services with no definitive listing of items, quantities, or Months of anticipated materiel delivery or performance of services with the intent to use the lines on the LOA until funds are exhausted.

Authority provided by law to incur financial obligations that will result in outlays. Specific forms of authority include appropriations, borrowing authority, contract authority, and spending authority from offsetting collections.

Refers to the fiscal year for which the budget is being considered, that is, with respect to a session of Congress, the fiscal year of the Government that starts on October 1 of the calendar year in which that session of Congress begins.

A U.S. Letter of Offer and Acceptance (LOA), and any subsequent Amendment, that is the legal instrument used by the USG to transfer defense articles and defense services (including training) to a foreign country or international organization under authorities provided in either Title 10 or Title 22 of the U.S. Code or in annual National Defense Authorization legislation and funded by an Appropriation Act. Modifications can only be executed on BPC cases for which DoD is not using the Semi-Permanent Security Cooperation Customer Codes. BPC LOAs are not signed by the Benefitting Partner, as the Benefitting Partner's commitment on end-use, security, and re-transfer assurances is provided through a signed Section 505 agreement. See also "BPC Programs" and "LOA."

"Security Cooperation Customer Code" used for BPC security cooperation programs' cases to identify BPC efforts by their distinct program authorities, appropriations, and availability/expiration of funds.

Security cooperation and security assistance activities funded with USG appropriations (not including Foreign Military Sales Credit and Military Assistance Program/Merger).

This law provides that USG agencies must generally give procurement preference to the purchase of domestic end products. This preference is accorded during the price evaluation process by applying a punitive evaluation factor to most foreign products.

An Foreign Military Sales case which was not accepted or funded within prescribed time limitations, or was accepted and subsequently canceled by the requesting country or the USG. In the latter case, the USG or purchaser electing to cancel all (or part) of a case prior to the delivery of defense articles or the performance of services shall be responsible for all (or associated) termination costs.

A military or commercial ship, aircraft, barge, train or truck, or a commercial transport company that moves material from one location to another.

Country level account maintained by Defense Finance Accounting Service Indianapolis that summarizes disbursement activity and unliquidated obligation balance for each interim closed case.

A short title specifically prepared for each Foreign Military Sales case by the Implementing Agency.

A unique six-digit identifier assigned to an Foreign Military Sales case for the purpose of identification, accounting, and data processing of each Letter of Offer and Acceptance. The case identifier consists of the two-letter country code, a one-letter designator for the Implementing Agency, and a three-letter case designator.

A financial and logistical tracking system used by the U.S. Air Force for Foreign Military Sales (FMS) cases. It provides for the creation and maintenance of FMS case file data for case planning, execution, and management. This central collection point performs unique FMS accounting functions in real-time with on-line interactive financial management capabilities and updating/reporting operations that interface with other systems during the life of a case. Such functions include Obligational Authority (OA), commitments, expenditure authority, disbursement of funds, customer billing, total financial reporting, case oversight, and delivery of goods including line and case closure.

A system used by DSCA to provide unclassified and classified reports to Congress, Department of State, and Department of Commerce with a DoD-wide view of Foreign Military Sales as well as other DoD and State sales programs information. The system is sourced with monthly transactions received from Implementing Agencies through Defense Security Assistance Management System and quarterly materiel delivery transactions are received from Defense Integrated Financial System.

A DSCA application directly fed from the Defense Security Assistance Management System that allows all draft Letters of Offer and Acceptance (LOA) electronic packages, developed by the Implementing Agencies, to be submitted to DSCA Case Writing and Development Division for end-phase LOA development and reviewed by DSCA stakeholders, prior to final review by the U.S. Department of State, and culminating in a final LOA.

An FMS case for which the source of funding is directly provided by the purchaser, i.e., not through a credit or grant agreement with the U.S. government.

A term of sale in which the USG collects cash in advance of the delivery of defense articles and/or the performance of defense services from DoD resources throughout the life of the case.

A term of sale in which U.S. dollar currency, check, or other negotiable instrument is submitted by the customer concurrent with acceptance of an Foreign Military Sales sales offer for the full amount shown as the estimated total cost on the Letter of Offer and Acceptance.

A system used by the U.S. Army and Missile Defense Agency for the management of Foreign Military Sales (FMS) cases. The system maintains data from country request to FMS case closure. The system produces logistics requisitions, case status, status of delivery, repair status, supply discrepancy status, and other management reports.

Codes assigned by the CJCS that provide precedence for requisition processing and supply decisions.

A change in scope occurs when there is a change to the materiel or service requirements that change the original purpose of a contract or Letter of Offer and Acceptance (LOA). These changes may or may not change the total estimated cost of the contract or LOA as a result of (1) changes to the function/type of work; (2) increases or decreases in quantity of items; (3) increases or decreases to the amount of man years; and (4) increases or decreases to the performance period or Months.

The principal officer in charge of a diplomatic facility of the United States, including any individual temporarily assigned to be in charge of such a facility.

An Foreign Military Sales case for which all materiel has been delivered, all services have been performed, all financial transactions, including all collections, have been completed, and the customer has received a final statement of account.

Systems or subsytems cooperatively designed and developed in two or more countries. Shared responsibilities include design and engineering, and may be expanded to include applied research.

The enduring collaboration among allies and partners to enable effective and efficient logistics, sustainment activities, and personnel services to operationally maintain defense platforms, systems, sub-systems, or components. "Co-sustainment" is commonly used during bi-lateral, tri-lateral, and multi-lateral security cooperation engagements alongside terms "co-development" and "co-production."

Amounts received during the fiscal year. Collections are classified into two major categories: budget receipts and offsetting collections. Budget receipts are amounts received by the Federal Government from the public, e.g. tax revenues, premiums of compulsory social insurance programs, court fines, and license fees. Offsetting collections are classified into two major categories: offsetting receipts and collections credited to appropriation or fund accounts.

A unified or specified command with a broad continuing mission under a single commander established and so designated by the President, through the Secretary of Defense and with the advice and assistance of the Chairman of the Joint Chiefs of Staff. Also called CCMD.

Plan developed by Security Cooperation Organization in coordination with the host country counterparts which consolidates the host country's training needs for the budget year and the planning year (i.e. Host Country Training Requirements for the next two years). Includes program objectives and justifications.

See Direct Commercial Sale.

Any items, including those expended or consumed in use, which, in addition to military use, are used and traded in normal civilian enterprise and may be imported/exported through normal international trade channels.

Any communication between a responsible U.S. official and a representative of any country or international organization that could reasonably be interpreted as being a promise that the U.S. will provide a foreign government or international organizations with either funds (including long term credit assignments), goods, services, or information.

An administrative reservation of funds based on firm procurement requests, unaccepted customer orders, Directives, and equivalent instruments.

A commitment document shall be signed by a person authorized to reserve funds; that is, the official responsible for administrative control of funds for the affected subdivision of the appropriation. This helps ensure that the subsequent entry of an undelivered order or accrued expenditure will not exceed available funds.

The measures and controls taken to deny unauthorized persons’ information derived from telecommunications and other information systems, and technologies necessary to ensure the authenticity of such communications. COMSEC includes cryptographic security, transmission security, emissions security, and physical security of COMSEC material. Secure telecommunication or information system cryptographic components are the primary COMSEC products for transmission security and commonly called COMSEC devices or products. COMSEC devices are designated Controlled Cryptographic Items (CCI).

A method for awarding a U.S. government contract on a basis other than low bid, whereby the best and final offer may be obtained after discussions are concluded.

An Foreign Military Sales case for which all deliveries and collections have been completed but for which a final accounting statement (DD Form 645) has not been furnished to the purchaser.

These are spare parts programmed as an initial stockage related to the acquisition of a major item or system. CSPs are normally shipped in advance of the release of the major item or system.

The formal assurance provided by a Confirming Bank to honor the credit issued by an Issuing Bank, ensuring payment to the Beneficiary if the Issuing Bank fails to fulfill its obligation under the Letter of Credit.

The financial institution that undertakes to honor a presentation made by DSCA, as Beneficiary, under the Letter of Credit issued by the Issuing Bank at the request of the Issuing Bank.

The document presented annually by the Executive Branch to Congress describing the proposed annual Military Assistance, and related security assistance programs along with other foreign assistance programs for the next fiscal year (i.e., the budget year) for which Congressional authorizations and appropriations are requested. In the past, referred to as the Congressional Presentation Document.

The person or organization to whom a shipment is to be delivered, whether by land, sea or air.

Completion of delivery of materiel to a carrier for transportation to a consignee, consolidation/integration point, or delivery to a U.S. post office for shipment to a consignee. Delivery is evidenced by completed shipping documents or listings of delivery at the U.S. post office.

When title of defense articles provided under Presidential Drawdown authority transfers from the Military Department to the designated partner representative prior to physical delivery. A DD-1348-1A signed by an authorized partner representative is required to document proof of title transfer. Physical delivery of the transferred materiel may occur after constructive delivery.

U.S. territory, including the adjacent territorial waters, located within the North American continent between Canada and Mexico. Does not include Hawaii or Alaska.

Continuing resolutions (CRs) are joint resolutions that provide continuing appropriations for part of a fiscal year or for a full fiscal year. A CR that covers only a part of a fiscal year is referred to as a "short-term" CR, and a CR that covers a full fiscal year is referred to as a "full-year" CR. A CR is often enacted when the Congress has not yet passed new appropriations bills by October 1 or when the President has vetoed congressionally passed appropriations bills. Because of the nature of a short-term CR, you should operate at a minimal level until after your regular fiscal year appropriations is enacted.

An agreement between two or more persons who are legally capable of making a binding agreement, which involves: a promise (or set of promises); a consideration (i.e., something of value promised or given); a reasonable amount of understanding between the persons as to what the agreement means; and a legal means for resolving any breach of the agreement.

All the activities associated with the performance of a contract, from pre-award to closeout.

All those actions accomplished in or near a contractor's plant for the benefit of the U.S. government which are necessary to the performance of a contract or in support of the buying offices, system/project managers, and other organizations, including quality assurance, engineering support, production surveillance, pre-award surveys, mobilization planning, contract administration, property administration, industrial security, and safety.

A surcharge that is collected and applied based on the value of payments made to contractors for procured items and services purchased through a Foreign Military Sales case. This surcharge covers the cost of quality assurance and inspections, contract management, and contract audits. The CAS percentage varies and is contingent upon contract administrative reciprocal agreements with the purchasing country.

This occurs when a contracting officer has signed and distributed a contract to a contractor.

A Contract Closeout occurs when a contractor has met all the terms of a contract and all administrative actions have been completed, all disputes settled, and final payment has been made. This also indicates all Contract Line Item Numbers have been closed.

These are services performed for the USG by commercial or industrial companies. These services provide instruction and training on the installation, operation, and maintenance of DoD weapons, equipment, and systems.

Part of defense contracts that break the contract down by the commodities being procured (labor hours of services, funding for travel, quantity product A, etc.). They help identify the supplies or services to be acquired as separately identified line items on a contract that provides for accounting traceability.

Cessation or cancellation, in whole or in part, of work under a prime contract, or a subcontract thereunder, for the convenience of, or at the option of, the government, or a foreign purchaser (Foreign Military Sales), or due to failure of the contractor to perform in accordance with the terms of the contract.

Each service designates certain commands as contracting activities. The subordinate command is that in which a principal contracting office is located. It may include the program office, related functional support offices, and contracting offices. Defense Finance Acquisition Regulation Supplement 202.101 lists the contracting activities. The Head of the contracting activity has certain approval and authority responsibilities.

A person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the Contracting Officer acting within the limits of their authority as delegated by the Contracting Officer. A Contracting Officer whose primary responsibility is to enter into contracts is called a procuring contracting officer. One whose primary responsibility is to administer contracts is called an administrative contracting officer. One whose primary responsibility is to terminate contracts and/or settle terminated contracts is called a "termination contracting officer." A single contracting officer may be responsible for duties in any or all of these areas.

Property procured or otherwise provided by the contractor for the performance of a contract, title to which is vested in the government.

Standard items of hardware, electrical equipment, and other standard production or commercial items furnished by a prime contractor as part of a larger assembly

CCIs are devices that embody cryptographic logic or other cryptographic design, but do not perform the entire Communications Security (COMSEC) function. CCIs are dependent upon host equipment or assemblies to complete and operate COMSEC functions. Un-keyed CCI is unclassified. An item may be designated CCI because its entire component is controlled (e.g. Inline Network Encryptor (INE)), or because the item contains an embedded cryptographic National Security Agency (NSA) Type-1 certified module to encrypt/de-encrypt information (e.g. secure radio).

The logistics support provided a foreign government/agency through its participation in a U.S. DoD logistics system, with reimbursement paid to the USG for the support provided.

Military logistics support arrangements designed to provide responsive and continuous supply support at the depot level for U.S.-made military materiel possessed by foreign countries and international organizations. The CLSSA is normally the most effective means for providing common repair parts and secondary item support for equipment of U.S. origin that is in allied and friendly country inventories.

A project involving joint participation by the United States and one or more countries and organizations under a memorandum of understanding (or other formal agreement) to carry out a research and development program for new conventional defense equipment and munitions, or to modify existing military equipment to meet U.S. military requirements.

A program implemented by a government-to-government or commercial licensing arrangement that enables a foreign government or firm to acquire the "know-how" to manufacture or assemble, repair, maintain and operate, in whole or in part, a defense item.

An account used when standard rates are employed. The actual expenses are debited to the cost clearing account and the amounts billed to customers are credited to the account. At the end of the fiscal year, the account is closed with analysis performed to determine if rates require adjustment.

A contract that provides for payment to the contractor of allowable costs, to the extent prescribed in the contract, incurred in performance of the contract.

A cost reimbursement type contract under which the contractor receives no fee and is reimbursed only for an agreed portion of the allowable costs prescribed in the contract

Foreign liaison personnel assigned to assist U.S. training activities with International Military Student (IMS) administration as authorized by the Implementing Agency (IA), only when a country is scheduled to train a large number of IMS or where IMS background warrants liaison personnel assistance.

DoD's periodic review of the relationship between Overseas Humanitarian Disaster, and Civic Aid (OHDACA) project outcomes and strategic conditions in a partner nation or region.

The senior, in-country, U.S. coordinating and supervising body, headed by the chief of the U.S. diplomatic mission, and composed of the senior member of each represented U.S. department or agency, as desired by the chief of the U.S. diplomatic mission.

A USG coordinated position of senior U.S. embassy leadership that includes an assessment of a proposed transfer and provides key information necessary for USG evaluation. CTAs can be provided as published cables or dated memos on embassy letterhead and signed by a member of the country team.

The use of U.S. government appropriated funds from the FMFP account to finance a foreign country's FMS purchases of U.S. defense articles or services. Credit funds may be in the form of repayable loans or non-repayable grants.

U.S. capability elements that contribute to the warfighters' technical advantage, which if compromised, undermines U.S. military preeminence. U.S. capability elements may include, but are not limited to, software algorithms and specific hardware residing on the system, its training equipment, or maintenance support equipment.

That function performed by one military service in support of another military service for which reimbursement is required from the service receiving support.

The fiscal year in progress but not yet completed; e.g. between and including 1 October and 30 September.

Dollar values of a given year that include the effects of inflation or escalation for that year, or which reflect the price levels expected to prevail during the year at issue. Also referred to as escalated dollars or then-year dollars.

A document generated within the Overseas Humanitarian Shared Information System (OHASIS) for documenting an authorized Department of State (State) representative's acknowledgement that DoD Excess Property authorized under 10 USC 2557 has been transferred from DoD into State custody.

A Defense Logistics Agency-led system for the budget, finance, and accounting operations of most DoD Defense Agencies in order to achieve accurate and reliable financial information in support of financial accountability and effective and efficient decision-making throughout the Defense Agencies in support of the missions of the warfighter.

Any weapon, weapons system, munition, aircraft, vessel, boat, or other implement of war;

Any property, installation, commodity, material, equipment, supply, or goods used for the purposes of furnishing military assistance or making military sales;

Any machinery, facility, tool, material supply, or other item necessary for the manufacture, production, processing repair, servicing, storage, construction, transportation, operation, or use of any article listed in this subsection; or

Any component or part of any article listed in this subsection; but shall not include merchant vessels or, as defined by the Atomic Energy Act of 1954, as amended (42 U.S.C. 2011 et seq.), source material (except uranium depleted in the isotope 235 which is incorporated in defense articles solely to take advantage of high density or pyrophoric characteristics unrelated to radioactivity), by-product material, special nuclear material, production facilities, utilization facilities, or atomic weapons or articles involving Restricted Data.

A DoD organization assigned to a U.S. diplomatic mission overseas for the purposes of overt gathering of military information, representing the U.S. DoD in the conduct of military liaison activities, and performing as a component of the U.S. country team. Several DAO's have been designated by the President as being responsible for security assistance functions in a host country.

An agency under the direction of the Under Secretary of Defense for Acquisition and Sustainment, which provides contract administration services for the Department of Defense, other federal organizations and international partners, and is an essential part of the acquisition process from pre-award to sustainment and contract closeout.

Any individual, firm, corporation, partnership, association, or other legal non-Federal entity that enters into a contract directly with the DoD to furnish services, supplies, or construction. Foreign governments, representatives of foreign governments, or foreign corporations wholly owned by foreign governments that have entered into contracts with the DoD are not defense contractors.

U.S. activities performed in conjunction with selected foreign countries, which are intended to stimulate the development of foreign defense industrial capabilities, particularly in emerging technologies, for the mutual benefit of all participants.

The centralized DoD school for the consolidated professional education of personnel involved in security assistance management. DISCS is located at Wright-Patterson Air Force Base, Ohio, and provides an array of resident and nonresident instruction for both USG and foreign government military and civilian personnel as well as for defense contractor and industry personnel.

A financial system providing DoD-level financial management functions for the security assistance (SA) program. This includes centralized Foreign Military Sales (FMS) trust fund accounting, foreign customer billing, and financial management reporting. DIFS consolidates FMS data from the Army, Navy, Air Force, and other implementing agencies, and provides efficient accountability for oversight of the financial and program management aspects of SA.

A DoD system used for the development and implementation of all unclassified cases for Foreign Military Sales, Building Partner Capacity, International Military Education and Training, and other aspects of Security Cooperation involving the transfer of defense articles, services, or training through sale, grant, or lease to allied and friendly foreign partners and international organizations under the authority of the Arms Export Control Act (AECA), the Foreign Assistance Act (FAA), and other laws and regulations.

An agency, under the authority, direction, and control of the Under Secretary of Defense for Policy (USD(P)), that directs, administers, and provides DoD-wide guidance to the DoD Components and DoD representatives to U.S. missions abroad for the execution of DoD security assistance and security cooperation programs over which DSCA has responsibility, in accordance with Chapter 32 and Chapter 39 of title 22 U.S.C., DoD Directive (DoDD) 5132.03, other laws, and DoDD 5105.65.

Any service, test, inspection, repair, training, publication, technical or other assistance, or defense information used for the purpose of furnishing military assistance or sales of the United States, but does not include military education and training activities under section 2347 of the FAA (22 U.S.C 2347) or design and construction services under section 29 of the AECA.

The term defense stock includes defense articles on hand which are available for prompt delivery. It also includes defense articles under contract and on order that would be available for delivery within a reasonable time from the date of order by an eligible foreign government or international organization without increasing outstanding contracts or entering into new contracts. Any orders received from an eligible foreign government or international organization which cannot be filled in this manner fall within the provisions of section 22, Arms Export Control Act, which requires such orders to be filled under new procurement contracts.

The portion of the worldwide transportation infrastructure that supports DoD transportation needs in peace and war. DTS consists of two major elements: military and commercial resources. These resources include aircraft, assets, services, and systems organic to, contracted for, or controlled by the DoD. DoD's infrastructure, including ports, airlift, sealift, railway, highway, in-transit visibility, information management systems, customs, and traffic management that the DoD maintains and exercises in peacetime, is a vital element of the DoD's capability to project power worldwide. It provides for responsive force projection and a seamless transition between peacetime and wartime operations.

A Letter of Offer and Acceptance (LOA) that provides specific defense articles and/or defense services with definitive items, quantities, and/or Months of anticipated materiel delivery or performance of services on the LOA lines.

The process of tailoring a standard DoD system to the international partner's operational requirements, by making adjustments to the item configuration, the type and quantity of spare parts, and the logistics support package. Definitization is an extension of the DoD's provisioning process.

See completed case.

Includes constructive or physical delivery of defense articles; also, includes the performance of defense services for the customer or requisitioner, as well as accessorial services, when they are normally recorded in the billing and collection cycle immediately following performance.

Periodic estimates of contract production deliveries used as a measure of the effectiveness of production and supply availability scheduling and as a guide to corrective actions to resolve procurement or production bottlenecks. These forecasts provide estimates of deliveries under obligation against procurement from appropriated or other funds.

A single character code that represents how far the USG is responsible for arranging transportation of defense articles going to an international customer.

An agency's cancellation or downward adjustment of previously incurred obligations. Deobligated funds may be reobligated within the period of availability of the appropriation. For example, annual appropriated funds may be reobligated in the fiscal year in which the funds were appropriated, while multiyear or no-year appropriated funds may be reobligated in the same or subsequent fiscal years.

An excepted term and condition within the Foreign Military Sales case (or Letter of Offer and Acceptance). A firm commitment by a foreign government or international organization to pay the full amount of a contract for new production or for the performance of defense services which will assure the U.S. against any loss on such contract and to make funds available in such amounts and at such times as may be required by the contract, or for any damages and costs that may accrue from the cancellation of such a contract, provided that in the judgment of the DoD there is sufficient likelihood that the foreign government or international organization will have the economic resources to fulfill the commitment.

Maintenance performed on material requiring a major overhaul or a complete rebuilding of parts, assemblies, subassemblies, and end items, including the manufacture of parts, modification, testing, and reclamation as required. Provides more extensive shop facilities and equipment and personnel of higher technical skill than are normally available at the lower levels of maintenance, i.e., organizational and intermediate level maintenance.

A person or persons duly authorized by a foreign government to act on behalf of that government to negotiate, commit, sign contractual agreements, and/or accept delivery of materiel.

A financing action by a DoD organization (ordering entity) to procure products and services from another entity. When direct cite is used, the procuring entity sends the procurement source documents to the customer for the customer to perform all accounting functions. In the case of the Foreign Military Sales (FMS) program, it specifically refers to documents that result in a disbursement to other than a DoD organization (a contractor, other Federal Agency, or employee).

A sale of defense articles or defense services made under a Department of State issued license by U.S. industry directly to a foreign buyer, and which is not administered by DoD through Foreign Military Sales procedures.

The costs of resources directly consumed by an activity. Direct costs are assigned to activities by direct tracing of units of resources consumed by individual activities. They are a cost that is identified specifically with a single cost object.

A military service training course that is entered directly by an International Military Student without first attending English language training at the Defense Language Institute, English Language Center.

A general type of industrial or commercial compensation practice required of a contractor by a purchasing government as a condition for the purchase of defense articles/services. The form of compensation, which generally offsets a specific percentage of the cost of the purchase, is directly associated with the items purchased, such as the production of components in the purchasing country for installation in the purchased end-item.

Amounts paid by Federal Agencies, by cash or cash equivalent, during the fiscal year to liquidate government obligations. "Disbursement" is often used interchangeably with the term "outlay." In budgetary usage, gross disbursements represent the amount of checks issued and cash or other payments made, less refunds received. Net disbursements represent gross disbursements less income collected and credited to the appropriation or fund account, such as amounts received for goods and services provided. For purposes of matching a disbursement to its proper obligation, the term disbursement refers to the amount charged to a separate line of accounting.

An authorization by an appropriate U.S. Military Department authority that is required prior to the disclosure of classified information to foreign nationals who are cleared by their governments to have access to classified information.

MAP property determined to be no longer needed by the recipient country for the purpose initially furnished and for which no further MAP requirement exists, and MAP property which does not meet the criteria for utilization screening and is classified as disposable property by the in-country Security Cooperation Organization when initially reported by the foreign country.

The Office of the Secretary of Defense, the Military Departments, the Joint Chiefs of Staff, the Combatant Commands, the DoD Office of the Inspector General, the Defense agencies, and DoD field activities.

The DoD program that affords an opportunity for the International Military Student (IMS) to become familiar with the United States; its social, cultural, and political institutions; and its people and their ways of life. The program further increases the IMSs' awareness of the U.S. commitment to basic principles of internationally recognized human rights.

A manual published by the Defense Finance and Accounting Service under the authority of DoD Instruction (DoDI) 7000.14. It establishes basic financial procedures for security assistance activities involving management, fiscal matters, accounting, pricing, budgeting for reimbursements to DoD appropriations accounts and revolving funds, auditing, international balance of payments, and matters affecting the DoD budget.et.

The arrangement whereby nations agree, normally in peacetime, to identify a proportion of selected items of their war reserve stocks to be called for by specified North Atlantic Treaty Organization commanders under emergency conditions.

Funds provided by the Congress for projects, programs, or grants where the purported congressional direction (whether in statutory text, report language, or other communication) circumvents otherwise applicable merit-based or competitive allocation processes, or specifies the location or recipient, or otherwise curtails the ability of the executive branch to manage its statutory and constitutional responsibilities pertaining to the funds allocation process.

The most economical quantity of parts to order at one time to support a defined production rate, considering the applicable procurement and inventory costs.

A USG security assistance program through which economic assistance is provided on a grant basis, to selected foreign governments. The funds may be used to finance imports of commodities, capital, or technical assistance in accordance with the terms of a bilateral agreement; counterpart funds thereby generated may be used as budgetary support. These funds enable a recipient to devote more of its own resources to defense and security purposes than it otherwise could do without serious economic or political consequences (Formerly termed "Security Supporting Assistance").

Resource requirements that are linked to a fixed service provided internally (e.g. Interagency Agreements) or externally (i.e. through contracts). Example: Special Assignment Airlift Mission (SAAM) flights where the airlift requirement for special pickup or delivery is billed as a line item on the Letter of Offer and Acceptance (LOA). The resource requirements can also be priced within materiel costs that cannot be separated from the unit price. Example: Letter of Request requests 100,000 ammunition from vendor. Vendor manufactures 1,000,000 of ammunition for multiple LOAs. The manpower cost is included in the unit cost of manufacturing.

The act of implementing a case after the Foreign Military Sales (FMS) purchaser has signed the case but has not yet paid the required initial deposit. This is performed on exceptional cases with the approval of DSCA (Office of Business Operations (OBO)) due to extenuating circumstances that require urgent implementation.

The final production product when assembled, or completed, and ready for issue or deployment.

Mandated by Section 40A of the Arms Export Control Act (AECA) (22 U.S.C. 2785), activities undertaken by the U.S. Government to ensure that defense articles and defense services transferred to foreign partners under security assistance/cooperation authorities are monitored and used according to the terms and conditions specified in Letters of Offer and Acceptance and other transfer agreements, and as required by the AECA or the Foreign Assistance Act of 1961.

A proposal to a responsible authority recommending that a change to an original item of equipment be considered, and the design or engineering change be incorporated into the article to modify, add to, delete, or supersede original parts.

A test of the overall proficiency of foreign military students in English language listening and reading. A minimum entry level score for each DoD course of instruction is set by the Military Departments on the basis of course level difficulty and hazard factors.

A secure web-based application, resident in the Security Cooperation Information Portal, that serves as a consolidated source for security cooperation defense articles in-transit information and transportation plans. EFTS receives data from DLA, contractors, depots, the Defense Transportation System, carriers, freight forwarders, consolidation points, and ports of embarkation and debarkation.

An increase in costs due to inflation. A price index may be used to determine escalation by converting past to present prices or by converting present to future prices.

A systematic and documented estimate of actual costs. The procedure is used in the absence of an established cost accounting system.

A classification of explosive hazard assigned by the U.S. Department of Transportation to commercial and military explosives, which determines how the explosive material may be stored and transported to comply with international safety regulations.

Exception to SAMM policy. Does not include exceptions outside of SAMM purview.

Defense articles owned by the USG which are neither procured in anticipation of military assistance or sales requirements, nor procured pursuant to a military assistance or sales order. EDA are items (except construction equipment) that are in excess of the Approved Force Acquisition Objective and Approved Force Retention Stock of all DoD components at the time such articles are dropped from inventory by the supplying agency for delivery to countries or international organizations.

An international agreement, reached by the President with foreign heads of state, which does not require Senatorial approval. Such agreements are concluded under the President's constitutional powers as Commander-in-Chief and his general authority in foreign relations, or under powers delegated to him by Congress. Executive agreements may be nullified by Congressional action and are not binding on future presidents without their consent.

Official documents, numbered consecutively, through which the President of the United States manages the operations of the Federal Government.

Training funded under the International Military Education and Training (IMET) program to the following four objectives: proper management of defense resources, improving military justice systems in accordance with internationally recognized human rights, understanding the principle of civilian control of the military, and contributing to the cooperation between police and military forces for counternarcotics law enforcement [sec.541, Foreign Assistance Act].

An actual disbursement of funds in return for goods or services. Frequently used interchangeably with the term “outlay.”

Authority issued by Defense Finance and Accounting Service Security Cooperation Accounting to a certifying officer or a disbursing activity authorizing the subsequent disbursement of a Foreign Military Sales country’s funds when such funds are available.

The outflow or other depletion of assets or incurrence of liabilities (or a combination of both) during some period as a result of providing goods, rendering services, or carrying out other activities related to an entity's programs and missions, the benefits from which do not extend beyond the present operating period. In financial accounting and reporting, the costs that apply to an entity's operations for the current accounting period are recognized as expenses of that period.

Land mines, unexploded ordnance, and abandoned ammunition storage and cache sites that remain after the end of an armed conflict.

ETSS are DoD military and civilian personnel technically qualified to provide advice, instruction, and training in the installation, operation, and maintenance of weapons, equipment, and systems. ETSS are attached to an overseas Security Cooperation Organization (SCO) rather than assigned, and they are carried on the Joint Table of Distribution, but are not provided as an augmentation to the SCO staff. ETSS may be provided for overseas assignments for periods of up to but not exceeding one year, unless specifically approved by DSCA.

Practical experience and job-related training for specific systems, subsystems, functional areas, or other operations that require hands-on experience, to include maintenance training conducted at the depot level. This training does not provide for skill-level upgrading, which is provided under On-the-Job Training when special procedures are required.

The FAR is the primary regulation for use by federal executive agencies for the acquisition of supplies and services with appropriated funds. The document, published in 1984, consolidated the major procurement regulations of various departments and agencies. The intent of the FAR is to standardize the content, decrease the volume of documents, and to achieve consistency throughout government. The principal agencies involved in putting together the FAR were DoD, the General Services Administration, and the National Aeronautics and Space Administration, the three largest buyers. The FAR is broader than just contracting and applies to all goods and services. It directs the defense program manager in many ways, including contract award procedures, acquisition planning, warranties, and establishing guidelines for competition. Besides the FAR, each agency has its supplement to describe its own particular way of doing business. The DoD supplement is called Defense FAR Supplement.

FED LOG provides users the ability to access Federal Logistics Information System (FLIS) data during instances when internet connectivity is not available. FED LOG provides essential information about items within the federal supply system to include the National Stock Number, Item Name, Manufacturers and Distributors information (to include Part Numbers), Freight Data, Hazardous Materiel Indicators, Interchangeable and Substitutable data, Acquisition Advice Code and Unit Price, Physical and Performance Characteristics along with service specific management data.

The FSP shall provide international students and visitors the opportunity to obtain a balanced understanding of the United States and to increase their awareness of the basic issues involving internationally recognized human rights.

A generic term that refers to either engineering and technical services, contract field services, or both.

Provides for a price that is not subject to any adjustment on the basis of the contractor's cost incurred in performing the contract. This type of contract places upon the contractor maximum risk and full responsibility for all costs and resulting profit or loss. Provides maximum incentive for the contractor to control costs and imposes a minimum administrative burden on the government.

The USG’s accounting period. It begins on October 1 and ends on September 30 and is designated by the calendar year in which it ends.

A type of contract that generally provides for a firm price or, under appropriate circumstances, may provide for an adjustable price for the supplies or services being procured. Fixed price contracts are of several types, and are so designed as to facilitate proper pricing under varying circumstances.

The costs related to the production of a usable end item of military hardware. Flyaway cost include the cost of procuring the basic unit (airframe, hull, chassis, etc.), a percentage of basic unit for changes allowance, propulsion equipment, electronics, armament, and other installed government-furnished equipment, and nonrecurring production costs. Flyaway cost equates to rollaway and sail-away costs.

Sequential training following an initial course of training.

An assignment of a Roman numeral designator between I and V to international partner countries, and to U.S. defense organizations, which determines the supply priorities that the requisitioner can use to order materiel from the DoD supply system.

An Act to promote the foreign policy, security, and general welfare of the United States by assisting peoples of the world in their efforts toward economic development and internal and external security, and for other purposes.

Section 607 of the Foreign Assistance Act authorizes the President of the United States to furnish services and commodities on an advance-of-funds or reimbursable basis to friendly countries, international organizations, the American Red Cross, and voluntary nonprofit-relief agencies registered with and approved by the U.S. Agency for International Development, when the President determines it is in furtherance of the goals of the Act.

Assistance that can be used immediately to alleviate the suffering of foreign disaster victims that normally includes services and commodities as well as the rescue and evacuation of victims; the provision and transportation of food, water, clothing, medicines, beds, bedding, temporary shelter; the furnishing of medical equipment, medical and technical personnel; and making repairs to essential services.

Participation by civilian and military agencies of one government in any of the programs conducted by another government to free and protect its society from subversion, lawlessness, and insurgency.

An official representative, either military or civilian, of a foreign government or international organization stationed in the United States normally for the purpose of managing or monitoring security assistance programs.

A process, authorized by the Arms Export Control Act, through which eligible foreign governments and international organizations may purchase defense articles, services, and training from the United States Government.

DoD (DD) Form 645, FMS Billing Statement (or automated equivalent), and special billing arrangement statements issued by DSCA represent an official claim for payment by the USG. The DD645 is prepared on a quarterly basis as of December, March, June, and September.

A USG Letter of Offer and Acceptance (LOA), and any subsequent Amendment or Modification, that is the legal instrument used by the USG to transfer defense articles and defense services under the FMS program. See also "FMS" and "LOA."

An annual Controlled Unclassified Information report, prepared by DSCA, used to anticipate Foreign Military Sales (FMS) cases to be offered to FMS purchasers within the upcoming two fiscal years.

A single account that is authorized to be credited with receipts that may be obligated and expended in accordance with the Arms Export Control Act (AECA). Foreign Military Sales (FMS) Trust Fund receipts must be apportioned prior to obligation and expenditure; however, an official, designated under 31 U.S.C. 1513 (as per 31 U.S.C. 1516), may exempt trust funds from apportionment. The FMS Trust Fund is managed as a single cash entity, regardless of the source of the deposits. All FMS Trust Fund deposits are accounted for at purchaser and FMS case level by source of financing. Examples of funds include Foreign Military Financing (FMF) (FMS Credit and FMS Credit (nonrepayable)) and the Military Assistance Program (MAP) Merger. Examples of other types of funds are a purchaser's national funds, which include third-party funds, and other DoD appropriated funds.

A term used to describe Letters of Offer and Acceptance (LOAs) that implement Cooperative Logistics Supply Support Arrangements. Two LOAs are written: a FMSO I and a FMSO II.

Provides for the pipeline capitalization of a cooperative logistics support arrangement, which consists of stocks on hand and replenishment of stocks on order in which the participating country buys equity in the U.S. supply system for the support of a specific weapons system. Even though stocks are not moved to a foreign country, delivery (equity) does in effect take place when the country pays for the case.

Provides for the replenishment of withdrawals of consumption-type items (repair parts, primarily) from the DoD supply system to include charges for accessorial costs and a systems service charge.

Now referred to as Locally Employed Staff (LES) by the Department of State. A local hire U.S. embassy employee, usually of the same nationality as the host country, but sometimes a third country national (TCN). The FSN fills a billet with a formal position description and is paid according to a local compensation plan developed by the embassy. FSNs are hired and employed by either State Department directly or any other embassy agency (e.g., SCO) with a validated need and billet. Typical jobs for FSNs within a SCO include budget analyst, SA training manager, administrative assistant, and vehicle driver.

Training (including special training) in an officially designated course. It is conducted or administered according to an approved program of instruction. This training generally leads to a specific skill in a certain military occupational specialty.

A commercial import/export company registered with the Department of State, Bureau of Political-Military Affairs, Directorate of Defense Trade Controls and under contract to the Foreign Military Sales customer which arranges transportation of materiel from a point specified in the Letter of Offer and Acceptance to the final destination.

When used with respect to a contract action, means that all responsible sources are permitted to compete.

A type of Humanitarian Assistance Transportation Program, pursuant to 10 USC 2561, that offers DoD-funded transport of privately donated humanitarian cargo to a foreign country.

The USG organization (DSCA, a Military Department, or the Office of the Under Secretary of Defense for Policy) that receives appropriated funding and is responsible for administering the funding and exercising management oversight for Building Partner Capacity programs.

The Secretary of Defense shall submit to Congress each year, not later than five days after the date on which the President’s budget is submitted to Congress that year under section 1105(a) of title 31, a future-years defense program (including associated annexes) reflecting the estimated expenditures and proposed appropriations included in that budget. Any such future-years defense program shall cover the fiscal year with respect to which the budget is submitted and at least the four succeeding fiscal years.

Defense Language Institute - English Language Center courses designed to develop the English language capability of International Military Students so they can attend DoD schools.

The mandatory (by law or regulation) clauses for all DoD contracts for the type of procurement involved. The clauses devised for a particular procurement are called the "Special Provisions."

A three-digit code identified in the Military Articles and Services List and in Appendix 4 of the SAMM, which represents the type of materiel or services to be furnished according to a specific budget activity/project account classification.

An agency of the legislative branch, responsible solely to the Congress, which functions to audit all negotiated government contracts and investigate all matters relating to the receipt, disbursement, and application of public funds. The GAO determines whether public funds are expended in accordance with appropriations, and recommends to Congress various policies and procedures to be enacted into law to provide oversight and governance of government spending. Formerly, the General Accounting Office.

Items in the possession of, or acquired by the USG, and delivered to or otherwise made available to a contractor.

USG property which may be incorporated into, or attached to an end item to be delivered under a contract or which may be consumed in the performance of a contract. It includes, but is not limited to, raw and processed material, parts, components, assemblies, small tools, and supplies.

A form of assistance involving a gift of funds, equipment, and/or services which is furnished by the USG to selected recipient nations on a free, nonrepayable basis.

Includes torture or cruel, inhuman, or degrading treatment or punishment, prolonged detention without charges and trial, causing the disappearance of persons by the abduction and clandestine detention of those persons, and other flagrant denial of the right to life, liberty, or the security of person.

An account established for each Foreign Military Sales country/international organization for the purpose of recording and safeguarding unidentified and certain earmarked funds for future use

Civil and military assistance provided by host nations to allied forces and organizations in peace, transition to war, and wartime.

DoD assistance to the local populace pursuant to 10 U.S.C. 401 and provided by U.S. forces in conjunction with military operations and exercises.

DoD security cooperation activities with partner nation civilian government authorities, which support partner nation efforts to provide essential human services to civilian populations or to directly relieve or reduce human privation in support of national security priorities. DoD humanitarian assistance activities may be authorized under 10 U.S.C. 166a, 182, 401, 402, 404, 407, 2557, 2561, the Asia Pacific Regional Initiative, the Pacific Deterrence Initiative, the Ukraine Supplemental Appropriations Act, Presidential Drawdown Authority, certain Defense Health Programs, certain Global Health Engagements, and other DoD programs.

DoD HA programs and activities that are categorized into one of five sectors of assistance or focus areas: disaster preparedness risk reduction and mitigation, public health, basic education, basic infrastructure, and humanitarian mine action. See definition of "Humanitarian Assistance."

The combination of the DoD funded transportation program and the DoD space-available transportation program, which both offer transport of privately donated humanitarian cargo to a foreign country.

DoD activities related to the furnishing of education, training, and technical assistance with respect to explosive safety, the detection and clearance of land mines, unexploded explosive ordnance, and other explosive remnants of war.

DoD activities that strive to reduce the social, economic, and environmental impact of land mines, unexploded ordnance, and small arms ammunition.

The date when an Foreign Military Sales (FMS) case becomes the official agreed upon instrument between the USG and the foreign purchaser authorizing the Implementing Agency to start taking actions to execute the case. See "Implemented Case [Foreign Military Sales (FMS)]."

An FMS case that has been signed by an authorized representative of the foreign partner, and for which (1) any required initial deposit has been received by DFAS and deposited; and (2) applicable data system implementing transactions have occurred.

The military department or defense agency responsible for the execution of military assistance programs. With respect to FMS, the military department or defense agency assigned responsibility by the Defense Security Cooperation Agency to prepare an LOA and to implement an FMS case. The implementing agency is responsible for the overall management of the actions that will result in delivery of the materials or services set forth in the LOA that was accepted by a foreign country or international organization.

A single-digit code in a case designator that represents the implementing agency responsible for management of the LOA.

Any executive action to withhold or delay spending appropriated funds as intended by the Congress. There are two kinds of impoundments: deferrals and rescissions.

Direct monetary compensation made by a U.S. supplier of defense articles or services or by any employee, agent, or subcontractor thereof to any U.S. person to induce or persuade that U.S. person to purchase or acquire goods or services produced, manufactured, grown, or extracted, in whole or part, in the foreign country which is purchasing those defense articles or services from the U.S. suppliers [Sec. 39A(d)(2), Arms Export Control Act].

A contract that may be of either a fixed price or cost reimbursement nature, with a special provision for adjustment of the fixed price or fee. It provides for a tentative target price and a maximum price or maximum fee, with price or fee adjustment after completion of the contract for the purpose of establishing a final price or fee based on the contractor's actual costs plus a sliding scale of profit or fee that varies inversely with the cost but which in no event shall permit the final price or fee to exceed the maximum price or fee stated in the contract.

An estimate of the cost for goods and/or estimate of services to be procured by contract. Such estimates are prepared by government personnel, i.e., independent of contractors.

Costs which are incurred for common or joint objectives, and which are not as readily subject to treatment as direct costs. See also direct costs.

A general type of industrial or commercial compensation practice required of a contractor by a purchasing government as a condition for the purchase of defense articles/services. The form of compensation, which generally offsets a specific percentage of the cost of the purchase, is unrelated to the items purchased, and may include contractor purchases of commodities and manufactured goods produced in the purchasing country.

Costs that are added to the base material or service value to determine the full cost to be charged to the purchaser. Examples of IPCs are inflation charge, transportation, nonrecurring cost, administrative charge, etc. IPCs that are included with the material/service base price (inflation, contract administrative charges, etc.) or are identified to its own line (transportation, nonrecurring costs, etc.) and are included in the case net value are called above-the-line costs. IPCs that are added to the case net value to get the total case value (administrative charge, packing, crating, and handling, transportation, etc.) are called below-the-line charges.

The capability of U.S. industry to respond to the needs of and produce end items for DoD. Also, that part of the total privately-owned and government-owned industrial production and maintenance capacity located in Canada expected to be available during emergencies to manufacture and repair items required by the U.S. military services.

The transformation of industry from its peacetime activity to the fulfillment of the military program necessary to support national military objectives. It includes the mobilization of materials, labor, capital, productive facilities, and contributory items and services essential to military programs.

The protection of information systems against unauthorized access to or modification of information, whether in storage, processing, or transit, and against the denial of service to authorized users, including those measures necessary to detect, document and counter such threat. INFOSEC is applied through the application of Cybersecurity and Communications Security (COMSEC).

Funds that are required to cover outlays and/or deliveries that are anticipated to occur before the receipt of the first quarterly payment. These funds must accompany the accepted Letter of Offer and Acceptance.

In general, attained when some units and/or organizations in the force structure scheduled to receive a system have received it and have the ability to employ and maintain it. The specifics for any particular system IOC are defined in that system's Capability Development Document (CDD) and updated CDD.

The process of determining the range and quantity of items (i.e., spares and repair parts, special tools, test equipment, and support equipment) required to support and maintain an item for an initial period of service. Its phases include the identification of items of supply, the establishment of data for catalog, technical manual, and allowance list preparation, and the preparation of instructions to assure delivery of necessary support items with related end articles.

Spare parts procured for the logistics support of a system during its initial period of operation.

A bill processed under the interfund billing system. These bills are not only "bills" but notices to the billed office that its funds have been disbursed and the bill "paid."

The full range of measures taken by a government to free and protect its society from subversion, lawlessness, and insurgency.

The state of law and order prevailing within a nation.

Pursuant to 22 USC 2767, authorizes and facilitates the identification, advancement, and implementation of DoD's:

Cooperative research, development, testing, and evaluation of defense technologies, systems, or equipment;

Joint production, sustainment and follow-on development of defense articles; and

Procurement of foreign technology, equipment, systems or logistics support solutions that uniquely meet U.S. needs.

The purpose of ICASS is to provide, on a reimbursable basis, needed administrative services to USG offices located overseas. The administrative support services are provided by ICASS personnel of the DoS stationed at overseas U.S. embassies, consulates, etc. Normally, such personnel perform a variety of services including: personnel, budget and fiscal, general services, communications, security and guard, and management services. The specific services required are the basis of an agreement between DoS and the requesting agency. Charges are based on the amount of services received, with each agency, including DoS, paying its share. The ICAAS system provides an equitable method of sharing the costs of providing "common type" administrative support to the SCO and other agencies at the post.

The planning, negotiating, and implementation of supporting logistics arrangements between nations, their forces and agencies. It includes furnishing logistics support (major end items, materiel, and/or services) to, or receiving logistics support from, one or more friendly foreign governments, international organizations, or military forces, with or without reimbursement. It also includes planning and actions related to the intermeshing of a significant element, activity, or component of the military logistics systems or procedures of the United States with those of one or more foreign governments, international organizations, or military forces on a temporary or permanent basis. International logistics involves planning and actions related to the utilization of U.S. logistics, policies, systems, and/or procedures to meet requirements of one or more foreign governments, international organizations, or forces.

A fee-for-service telecommunications system established for international partners to communicate supply requirements directly to the DoD supply system through the Defense Data Network.

The central U.S. Military Service control point in continental United States (CONUS) that monitors requisitions and related transactions for Foreign Military Sales (FMS) and Military Sales and Grant Aid.

That component of the U.S. Security Assistance program which provides training to selected foreign military and defense associated civilian personnel on a grant basis. Training is provided at U.S. military facilities and with U.S. Armed Forces in the United States and overseas, and through the use of Mobile Training Teams. Training also may be provided by contract technicians, contractors (including instruction at civilian institutions), or by correspondence courses. The IMET Program is authorized by the Foreign Assistance Act.

A national of a foreign government, with military or civilian status of that government, who is receiving education or training or is touring USG activities under the sponsorship of the security assistance training program.

Provides for administrative support of international students while in training at schoolhouses. The IMSO also manages and conducts the DoD Field Studies Program for their schoolhouse.

Counter drug bureau/programs managed by Department of State, but can have materiel, services, and training support provided and managed by DoD using Security Cooperation assets and procedures.

A regulation prepared by the Department of State, Bureau of Political-Military Affairs, Directorate of Defense Trade Control providing licensing and regulatory provisions for the import and export of defense articles, technical data, and services. The ITAR also includes the U.S. Munitions List. Published in the Federal Register as 22 CFR 120-130.

The ability to act together coherently, effectively, and efficiently to achieve tactical, operational, and strategic objectives. (Source: Joint Publication (JP) 3-0 (not publicly releasable))

The condition achieved among communications-electronics systems or items of communications-electronics equipment when information or services can be exchanged directly and satisfactorily between them and/or their users. (Source: JP 6-0 (not publicly releasable))

That phase of military logistics which includes managing, cataloging, requirements determinations, procurement, distribution, overhaul, and disposal of materiel.

The organizational element within a DoD system which is assigned responsibility for materiel management of a group of items including such management functions as the computation of requirements, the initiation of procurement or disposal actions, distribution management, and rebuild direction.

Investments are costs that result in the acquisition of or addition to end items. Such costs benefit future periods and generally are of a long-term character. Costs budgeted in the procurement and military construction appropriations are considered investment costs. Costs budgeted in the research, development, test, and evaluation (RDT&E) appropriation can be considered investment costs or expenses, depending on the circumstances.

A written authorization (DD Form 2285) for International Military Students to travel to, from, and between U.S. activities for the purpose of training under an approved and funded International Military Education and Training or Foreign Military Sales program.

The financial institution that issues the Letter of Credit.

A seven-character identifier assigned to each line of training in the Military Articles and Services List. The first character is a letter that identifies the Military Department offering the training (B -Army, P-Navy, D-Air Force). The following six characters are numbers that identify the specific item of training. The identification number is used in all Foreign Military Sales and International Military Education and Training training programs and implementation documents.

An individual within the organization of an inventory control point or other such organization assigned management responsibility for one or more specific items of materiel.

The President's estimate to the Congress of potential or proposed arms transfers during a given calendar year required by Arms Export Control Act (AECA), Section 25(a)(1) (22 USC 2765(a)(1)) .

The DSCA-recognized location in the Continental United States where defense articles on BPC cases are consolidated, as required, prior to transfer.

A legislative resolution, designated H J Res (House) or S J Res (Senate) which requires the approval of both houses and the signature of the President, just as a bill does, and which has the force of law if approved. There is no practical difference between a bill and a joint resolution. A joint resolution generally is used to deal with a limited matter such as a single appropriation. Congressional rejection of a proposed arms transfer, lease, third country transfer, or a proposed international cooperative project takes the form of a joint resolution of disapproval.

Regulation that prescribes policies, responsibilities, procedures, and administration for the education and training of International Military Students by the Departments of the Army, Navy and Air Force as authorized by U.S. Security Assistance legislation. Regulation is also applicable to the Marine Corps and Coast Guard.

A group of personnel from the Defense Language Institute, English Language Center (DLIELC), Lackland Air Force Base, Texas, performing duty in a foreign country or in Continental United States on a military installation away from DLIELC. They serve as consultants or instructors in English as a foreign language.

Term refers to either a statutory restriction imposed by Title 10 U.S.C. § 362 (DoD Leahy Law) or Section 620M of the Foreign Assistance Act of 1961 (DOS Leahy Law) that prohibits assistance to a foreign security force unit if there is credible information that unit has committed a gross violation of human rights. Both the DOS and DoD Leahy laws allow for the remediation of tainted units.

The U.S. government process to assess whether there is credible information that a specific individual or a specific security force unit has committed a gross violation of human rights.

An agreement for the temporary transfer of the right of possession and use of a non-excess defense article or articles to a foreign government or international organization, with the lessee agreeing to reimburse the USG in U.S. dollars for all costs incurred in leasing such articles, and to maintain, protect, repair, or restore the article(s), subject to and under the authority of section 61, Arms Export Control Act (22 USC 2796).

A legal instrument issued by a bank, Export Credit Agency, or other lending institution, that guarantees the Foreign Military Sales (FMS) partner's payment due to the U.S. Government under applicable FMS Letter of Offer and Acceptance. LC Number: Unique identifier for a specific Letter of Credit.

The legal instrument used by the USG to transfer itemized defense articles, defense services, and design and construction services to foreign partners.

When used under the authorities provided in the Arms Export Control Act for Foreign Military Sales, the LOA is a binding agreement signed by the USG and the foreign partner to transfer such articles and services.

When used under Building Partnership Capacity (BPC) authorities, the BPC LOA is not signed by the Benefitting Partner.

Data required to develop a Letter of Offer and Acceptance.

The term used to identify a request from an eligible FMS participant country for the purchase of U.S. defense articles and services. The request may be in message or letter format.

Licensed production involves agreements made by U.S. commercial firms with international organizations, foreign governments, or foreign commercial firms to produce weapon systems. USG involvement is limited to the approval by DSCA of any applicable Foreign Military Sales case and approval of applicable type of export license. Such agreements generally establish quantitative limits on production, and prohibit third country transfers of the manufactured items.

The total costs to the government of acquisition and ownership of a system over its useful life. It includes the costs of development, acquisition, support, and, where applicable, disposal.

A specific line and its content on a Letter of Offer and Acceptance. Also known as "Line."

A three-digit alpha/numeric code that identifies a line on the Letter of Offer and Acceptance. This code is perpetuated on the partner's bill.

A structured set of data elements used to identify and track financial information related to specific appropriations, programs, activities, and funding sources within the DoD's financial management systems.

Funds for lodging, meals, and incidental expenses that are paid, if authorized, to international military students while participating in USG security cooperation programs.

Applies to loans to a NATO or major non-NATO ally of materials, supplies, or equipment for the purpose of carrying out a program of cooperative research, development, testing, or evaluation subject to and under the authority of section 65, AECA.

Individuals who work at a staff position at Foreign Service post (Embassy/Consulate/Mission) abroad. The overwhelming majority are citizens of the country the post is located in, but some are American citizens living in the country and family members of Foreign Service Officers and other full time USG employees who are assigned to a post. They provide local expertise, language skills, continuity and contacts within the host country. They are indispensable full-fledged members of our American missions abroad.

A charge based on the Arms Export Control Act requirement for full cost recovery. This charge is intended to recover the cost of logistics support involved in providing the spares and other items required to maintain a weapon system. These support costs are associated with production control, requisition processing, inventory maintenance, administration of Supply Discrepancy Reports, and logistics management. The LSC is applied by the Defense Finance and Accounting Service-Indianapolis to delivery costs for those lines in Foreign Military Sales cases that have been identified as support lines based on the generic code included in the Letter of Offer and Acceptance.

Those components of a system or piece of equipment for which the times to design and fabricate are the longest, and therefore, to which an early commitment of funds may be desirable in order to meet the earliest possible date of system completion.

Any item of Significant Military Equipment on the U.S. Munitions List having a nonrecurring research and development cost of more than $50 million or a total production cost of more than $200 million. Also defined in section 47 (6), Arms Export Control Act.

Any end item that is Significant Military Equipment or Major Defense Equipment or where control over the programming of these items is required. See also "end item."

Defense articles identified in the Military Articles and Services List (MASL) with a unit of issue other than "XX" (dollar lines)." Control over the programming of these items is required.

Currently 19 countries are designated as MNNAs under 22 U.S.C. 2321k and 10 U.S.C. 2350a:

Argentina, Australia, Bahrain, Brazil, Colombia, Egypt, Israel, Japan, Jordan, Kenya, Kuwait, Morocco, New Zealand, Pakistan, Philippines, Qatar, South Korea, Thailand, and Tunisia.

In addition, P.L. 107-228 provides Taiwan shall be treated as an MNNA, without formal designation as such.

The effort equal to that of one person during one hour/month/year.

System used by the U.S. Navy to manage the execution and accounting of all Foreign Military Sales cases.

A process for gathering data on product characteristics, suppliers' capabilities, and the business practices that surround them. Includes the analysis of that data to inform acquisition decisions. There are two types of market research: strategic market research and tactical market research.

Property that may be consumed or expended during the performance of a contract, component parts of a higher assembly, or items that lose their individual identity through incorporation into an end-item. Material does not include equipment, special tooling, special test equipment or real property.

All items necessary to equip, operate, maintain, and support military activities without distinction as to its application for administrative or combat purposes.

Direction and control of those aspects of logistics which deal with materiel, including the functions of identification, cataloging, standardization, requirements determination, procurement, inspection, quality control, packaging, storage, distribution, disposal, maintenance, mobilization planning, industrial readiness planning, and item management classification; encompasses materiel control, inventory control, inventory management, and supply management.

An agreement between sovereign states or international organizations that is legally binding under international law.

A document prepared and submitted by the Requesting Authority which identifies requirements and initiates the case development process under a Building Partner Capacity program.

An arrangement between sovereign states or their executive agencies, or international organizations, that is not legally binding under international law.

A catalogue of materiel, services, and training used in the planning and programming of International Military Education and Training (IMET), and Foreign Military Sales (FMS). Separate MASLs are maintained for IMET and FMS training that provides data on course identification, course availability, price, and duration of training.

A name for the Security Cooperation Organization in some countries. The term MAAG encompasses Joint U.S. Military Advisory Groups, Military Missions, Military Assistance Groups, U.S. Military Groups, and U.S. Military Representatives exercising responsibility within a U.S. diplomatic mission for security assistance and other related DoD matters. Defense Attaches are included only when specifically designated as having Security Assistance functions.

That portion of the United States Security Assistance program authorized by the Foreign Assistance Act of 1961, as amended, which once provided defense articles and services to recipients on a nonreimbursable (grant) basis. Funding for MAP was consolidated under the Foreign Military Financing program beginning in Fiscal Year 1990.

A directory that contains the addresses of country representatives, freight forwarders, and customers-within-country required for releasing Foreign Military Sales and Military Assistance Program Grant Aid shipments, and addresses required for forwarding of related documentation.

One of the departments within the DoD created by the National Security Act of 1947, as amended. The Military Departments are: the Department of the Air Force, the Department of the Army, and the Department of the Navy.

An order issued by one military service to another to procure services, supplies, or equipment for the requiring service. The MIPR (DD Form 448) may be accepted on a direct citation or reimbursable basis. It is an Economy Act (31 U.S.C. 1535) order subject to downward adjustment when the obligated appropriation is no longer valid for obligation.

A broad base of logistics transactions and procedures designed to meet DoD requirements to establish standard codes, forms, formats (both Defense Logistics Management System and legacy 80 record position), and procedures for billing, and related adjustments and collections for sales of materiel and related services for logistics support. It prescribes uniform procedures and time standards for the interchange of logistics information relating to logistics bills. The procedures govern the interchange of information for all logistics related financial management of the DoD and participating external organizations unless specifically exempted by the Assistant Secretary of Defense for Logistics and Materiel Readiness (ASD (L&MR)).

A broad base of logistics transactions and procedures designed to meet DoD requirements to establish standard data elements, codes, forms, transaction formats (both legacy 80 record position and Defense Logistics Management System) and procedures to requisition, release/issue, and dispose of materiel and prepare related documents. It prescribes uniform procedures and time standards for the interchange of logistics information relating to requisitioning, supply advice, supply status, cancellation, materiel release/issue, lateral redistribution, materiel return processes, materiel obligation validation, contractor access to government sources of supply, and selected security assistance processes. The provisions apply to the Office of the Secretary of Defense, the Military Departments, the Joint Staff, the Combatant Commands, and Defense Agencies. It also applies, by agreement, to external organizations conducting logistics business operations with DoD including:

non-Government organizations, both commercial and nonprofit;

Agencies of the U.S. Government other than DoD;

foreign national governments; and

international government organizations.

DoD security cooperation Humanitarian Assistance efforts pursuant to 10 U.S.C. 2561 costing $30,000 or less and which do not provide any equipment, supplies, or other items to a security force.

The primary planning document within the USG that defines U.S. national interests in a foreign country and coordinates performance measurement in that country among USG agencies.

An interagency request for specific DoD assistance activities under an approved Foreign Disaster Relief.

A team of U.S. DoD personnel on temporary duty in a foreign country for the purpose of educating foreign personnel in resource management. Such teams are normally funded from Expanded International Military Education and Training program funds.

A team of U.S. DoD personnel on temporary duty in a foreign country for the purpose of training foreign personnel in the operation, maintenance, or other support of weapon systems and support equipment, as well as training for general military operations. MTTs may be funded from either Foreign Military Sales or International Military Education and Training programs.

One of, or a combination of, the following modes used for a movement:

inland surface transportation (rail, road, and inland waterway);

sea transport (coastal and ocean);

air transportation; and

pipelines.

A Modification of a Foreign Military Sales (FMS) case constitutes a within-scope change to an existing Letter of Offer and Acceptance (LOA).

The Months (MOS) on a Letter of Offer and Acceptance (LOA) line is the time-period when the materiel or performance of services is available to the foreign partner. For materiel, the MOS start and end is a numeric range determined to be when the materiel is available to the foreign partner for transportation, or for delivery only when the materiel are to be delivered in-place. For basic cases not yet offered, calculation of the MOS for materiel begins with the Offer Expiration Date (OED). For implemented cases, calculation of the MOS for materiel begins with the actual implementation date of the basic case. When the OED or implementation date is between the 1st-15th day of the month, it will define month one (1) as the given starting point. When the OED or implementation date is between the 16th-31st day of the month, it will define month one (1) as the following month. For services, the MOS field reflects a Month/Year range.

A Humanitarian Assistance project type pursuant to 10 U.S.C. 2561 for training efforts that benefit more than one partner nation. MLT projects, approved by DSCA, contain a separate subproject for each of the benefitting partner nations, including the host partner nation where the training will take place. MLT projects are designated for a single fiscal year, and the combatant command includes the MLT in the appropriate program year Assessment and Budget Submittal.

The U.S. Munitions List is an enumeration of defense articles and defense services and is published in the Department of State's International Traffic in Arms Regulations.

Source of funding that is provided directly from the purchaser.

National Disclosure Policy (NDP-1) promulgates national policy and procedures in the form of specific disclosure criteria and limitations, definitions of terms, release arrangements, and other guidance required by U.S. departments and agencies having occasion to release classified U.S. military information to foreign governments and international organizations. In addition it establishes and provides for the management of an interagency mechanism, and includes procedures that are required for the effective implementation of that policy.

The 13-digit unique code is assigned to an item of supply that is repeatedly stocked, stored and issued throughout the federal supply system. It’s assigned at the request of the military services, certain federal or civilian agencies and foreign friendly countries.

A supply codification system developed by the U.S. and adopted by North Atlantic Treaty Organization (NATO) and non-NATO partners. The NCS standardizes item identification processes to permit item interchangeability between international partners and contributes to systems interoperability.

A disbursement transaction that has been matched to the cited detail obligation, but the total disbursement(s) exceeds the amount of that obligation.

Total amount of the cost reflected on line 21 of the DD Form 1513 or line 8 of the Letter of Offer and Acceptance.

A capability or system that is not identified as a Program of Record by the U.S. Department of Defense.

A non-severable service represents a single undertaking that cannot be feasibly subdivided. If the service produces a single or unified outcome, product, or report, the service is considered non-severable. Contracts for non-severable services that cross fiscal years must be funded entirely by the appropriations available for new obligations at the time the contract is awarded.

Undefined requirements lines with MASL “R9B 079200N0NSPRQ, Non-Specific Requirements” that can be included on Foreign Military Sales cases when requested by or coordinated with the purchaser as a holding place for funds budgeted but not yet programmed. Non-Specific Requirements lines cannot be used to requisition items or to provide services, are written with Source Code “S” (stock), and only utilize national funds. Non-Specific Requirements lines are written without a defined period of performance.

Costs funded by a Research, Development, Test, and Evaluation appropriation to develop or improve a product or technology either through contract or in-house effort. NC also includes one-time costs incurred in support of previous production of a specified model and costs incurred in support of a total projected production run. See "Nonrecurring Production Costs" and "Nonrecurring Research, Development, Test, and Evaluation Costs."

The one-time costs incurred in support of previous production of the model specified and the costs specifically incurred in support of the total projected production run. These costs include DoD expenditures for preproduction engineering; special tooling; special test equipment; production engineering; product improvement; destructive testing; and pilot model production, testing, and evaluation. These costs also include any engineering change proposals initiated before the date of calculations of the nonrecurring cost recoupment charge. Nonrecurring production costs do not include DoD expenditures for machine tools, capital equipment, or facilities for which contractor rental payments are made or waived.

Costs funded by a research, development, test, and evaluation appropriation to develop or improve the product or technology under consideration either through contract or in-house DoD effort. This includes costs for any engineering change proposal started before the date of calculation of the nonrecurring cost recoupment charges as well as projections of such costs, to the extent additional effort applicable to the sale model or technology is necessary or planned. It does not include costs funded by either procurement or operation and maintenance appropriations.

Grant funds appropriated by Congress for use in the Foreign Military Financing program under Title III of the annual Foreign Operations Appropriations Act. Formerly termed "forgiven credits/loans," these grant funds are allocated to selected countries for their use in financing Foreign Military Sales acquisitions of defense articles, defense services, and training under the authority of section 23, Arms Export Control Act. Additionally, certain countries may be authorized these grant funds to finance direct commercial sales.

For Foreign Military Sales purposes, a nonstandard article is one that the DoD does not manage, either because an applicable end item has been retired or because it was never purchased for DoD components.

For Foreign Military Sales purposes a nonstandard service is a service that the DoD does not routinely provide for itself or for purchase.

The method by which the U.S. shipping installation will provide advance notification to the designated Foreign Military Sales (FMS) country representative or freight forwarder that the materiel is ready for shipment and, where appropriate, that the shipment requires an export release.

Amount representing orders placed, contracts awarded, services received, and similar transactions during an accounting period that will require payment during the same, or a future, period. Includes payments for which obligations previously have not been recorded and adjustments for differences between obligations previously recorded and actual payments to liquidate those obligations. The amount of obligations incurred is segregated into undelivered orders and accrued expenditures - paid or unpaid. For purposes of matching a disbursement to its proper obligation, the term obligation refers to each separate obligation amount identified by a separate line of accounting.

The sum of (1) budget authority provided for a given fiscal year, (2) balances of amounts brought forward from prior years that remain available for obligation, and (3) amounts authorized to be credited to a specific fund or account during that year, including transfers between funds or accounts.

Amounts of orders placed, contracts awarded, services received, and similar transactions during a given period requiring the future payment of money. Such amounts include adjustments for differences between obligations previously recorded and accrued expenditures of actual payments.

Special training conducted to permit International Military Students to observe U.S. military techniques and procedures.

The date which appears on the offer portion of an Letter of Offer and Acceptance and which indicates the date on which an Foreign Military Sales offer is made to a foreign buyer.

The date on an offered LOA that indicates the last date on which the purchaser may accept the offer. The OED is normally 85 days from Military Department Approval in the Defense Security Assistance Management System, except for countries that have been approved for a longer OED.

An agreement, arrangement, or understanding between a U.S. supplier of defense articles or services and a foreign country under which the supplier agrees to purchase or acquire, to promote the purchase or acquisition by other U.S. persons, of goods or services produced, manufactured, grown, or extracted, in whole or in part, in that foreign country in consideration for the purchase by the country of defense articles or services from the supplier [Sec. 39A(d)(1), Arms Export Control Act]. See also direct offset and indirect offset.

A statement of additional charges or credits to cases that have been recategorized from active to inactive status.

A training program whereby International Military Students acquire knowledge and skills through the actual performance of duties under competent supervision in accordance with an approved, planned program.

Costs associated with equipment, supplies, and services required to train, operate, and maintain forces in a recipient country, including the cost of spare parts other than concurrent spares and initial stockages, ammunition and missiles used in training or replacements for such items expended in training or operations, rebuild and overhaul costs (excluding modernization) of equipment subsequent to initial issue, training and other services that do not constitute investment costs, and administrative costs associated with overall program management and administration.

English language test that rates English language speaking ability for International Military Students (IMS). Certain courses require an OPI test be taken and a specific OPI score to be met before an IMS can attend the course.

An activity that originates a requisition or order for procurement, production, or performance of work or service by another activity.

A tour arranged for key foreign personnel that may be funded under Foreign Military Sales or International Military Education and Training to acquaint them with U.S. organizations, equipment, facilities, or methods of operation at various locations.

A payment to liquidate an obligation (other than the repayment of debt principal or other disbursements that are "means of financing" transactions). Outlays generally are equal to cash disbursements but also are recorded for cash-equivalent transactions, such as the issuance of debentures to pay insurance claims, and in a few cases are recorded on an accrual basis such as interest on public issues of the public debt. Outlays are the measure of Government spending.

All geographic areas not within the territorial boundaries of the Continental United States (CONUS). OCONUS includes Hawaii and Alaska.

A comprehensive project management tool for Overseas Humanitarian, Disaster, and Civic Aid-funded DoD security cooperation activities as well as certain other Service Operations and Maintenance funded activities (e.g. Humanitarian and Civic Assistance, the Asia Pacific Regional Initiative) that enables the development, nomination, staffing, coordinating, approval and management of projects by DoD stakeholder organizations.

An annual appropriation with a two-year period of availability that supports DoD Humanitarian Assistance activities conducted under the following legislative authorities: 10 U.S.C. 402, 10 U.S.C. 404, 10 U.S.C. 407, 10 U.S.C. 2557, and 10 U.S.C. 2561.

The resources, processes, procedures, design considerations, and methods to ensure that all system, equipment, and support items are preserved, packaged, handled, and transported properly, including: environmental considerations, equipment preservation requirements for short-and-long-term storage, and transportability. One of the principal elements of Integrated Logistics Support.

Forces or groups which are distinct from the regular armed forces of any country, but resemble them in organization, equipment, training, or mission.

An Foreign Military Sales (FMS) term of sale in which the USG issues a bill to the FMS purchaser at the time of delivery of defense articles or the rendering of defense services from DoD resources. This term may only be used pursuant to a written statutory determination by the Director, DSCA, who may find it in the national interest to authorize such payment. Based on presidential action, this term may also be modified to read "Payment 120 Days After Delivery."

List of dollar amounts and when they are due from the foreign customer. The payment schedule is included in the Letter of Offer and Acceptance (LOA) presented to the customer. After acceptance of the LOA, the payment schedule generally serves as the basis for billing to the customer. Changes in the estimated costs of an Foreign Military Sales case may require changes in the accompanying payment schedule.

An activity which is responsible for performing work or service, including the production of material and/or the procurement of goods and services from other contractors and activities.

The period of time established by Congress in which budget authority is available to incur new obligations.

Information that can be used to distinguish or trace an individual's identity, either alone or when combined with other information that is linked or linkable to a specific individual.

The actual possession of a Foreign Military Sales shipment by the partner at its final destination, regardless of shipping method.

A list of available Excess Property (EP) offered by DSCA for the Security Cooperation Organization to pick from in support of an EP project donation.

A cyclic process containing four distinct, but interrelated phases: planning, programming, budgeting, and execution. In addition to establishing the framework and process for decision making on future programs, the process permits prior decisions to be examined and analyzed from the viewpoint of the current environment (threat, political, economic, technological, and resources) and for the time period being addressed. The ultimate objective of PPBE is to provide operational commanders the best mix of forces, equipment, and support attainable within fiscal constraints.

A military or commercial air or ocean port at which materiel is offloaded. Also referred to as the Port of Discharge.

A military or commercial air or ocean port at which a carrier begins the journey to deliver materiel to the consignee. This is also referred to as the Port of Exit.

An engineer technical survey of future construction requirements development prior to submittal of construction projects to facilitate a Combatant Command's management and execution of the overall Humanitarian Assistance program by producing detailed scopes of work and independent government estimates. Pre-construction scoping visits identify critical issues and confirm an engineering solution is viable, but they may not include engineering efforts needed to compete a potential contracting requirement.

The submission of documents by DSCA to the Issuing or Confirming Bank for payment as Beneficiary under the terms of the Letter of Credit [and Confirmation if applicable].

The document sent to Congress by the President in January or February of each year, as required by law (31 U.S.C. 1105), requesting new budget authority for federal programs and estimating federal revenues and outlays for the upcoming fiscal year and 4 subsequent outyears. Although the title of the document is Budget of the USG, it represents proposals for congressional consideration.

A procedure that requires a proposed payment be identified/matched to its applicable proper supporting obligation that has been recorded in the official accounting system and that the line(s) of accounting cited on the payment match the data recorded in the accounting system.

Implementing Agencies’ (IAs) (Military Department organizations and Defense Agencies) response to requests from a foreign government or international organization (partner) for preliminary pricing and availability for international competitions and requests from authorized USG requesting authorities for building partner capacity. Furnishing of this data does not constitute a commitment for the USG to offer for sale the articles and services for which the data is provided.

A code that identifies a Program Element, followed by its title or descriptive name. For example, "01010F" for Extra Curricular Costs, "72710F" for Research, Innovation, and Manufacturing Fee, and "58090F" for Air Force Reserve.

Primary categories that identify types and sources of support. Examples of primary categories are organic training, spares from procurement, organic repair, etc. Primary categories are used to apply Indirect Pricing Components to an item for developing prices. For example, stock fund items from inventory will have administrative charges applied, but transportation, packing, crating, and handling would not be added because they are included in the base price.

A transaction reported to the Treasury Department's Bureau of Fiscal Services, but upon receipt at the official accounting station cannot be successfully matched to the original obligation or accounts receivable amount for liquidation purposes. Problem Disbursements include unmatched disbursements (UMDs), negative unliquidated obligations (NULOs), and in-transit disbursements made by disbursing officers. For purposes of this guide, Problem Disbursements are classified into two categories - UMDs (to include in-transits) and NULOs.

Act of buying goods and services for the government.

The interval in months between the initiation of procurement action and receipt into the supply system of the production model (excluding prototypes) purchased as the result of such actions; procurement lead time is composed of two elements, production lead time, and administrative lead time.

The individual authorized to enter into contracts for supplies and services on behalf of the government by detailed bids or negotiations and who is responsible for overall procurement under such contracts.

The time interval between the placement of a contract and receipt into the supply system of materiel purchased.

Career training designed to provide or enhance leadership and the recipient force's capabilities to conduct military planning, programming, management, budgeting, and force development to the level of sophistication appropriate to that force.

The legal authorization under which a Building Partner Capacity program is implemented.