DEFENSE SECURITY COOPERATION AGENCY |
7/17/2009 | |
MEMORANDUM FOR : SEE DISTRIBUTION SUBJECT : Dependable Undertaking Policy (DSCA 09-07), [SAMM E-Change 127) REFERENCE :
Sections 22 and 29 of the Arms Export Control Act (22 U.S.C. ��2762 and 2769) authorize the United States Government (USG) to enter into contracts for the procurement of defense articles and services for sale to any foreign country or international organization based on that country's or organization's ability to pay the full amount of the contract and to make funds available in advance to meet contract payments, known as Dependable Undertaking. This includes any costs that may result from contract cancellation. Chapter 4 of the SAMM, Table C4.T2., currently indicates if this specific term of sale is authorized for use on a purchaser's Foreign Military Sales (FMS) case. The purpose of this memorandum is to provide updated guidance on the Dependable Undertaking term of sale ensuring that an appropriate review of a country's or an international organization's financial capabilities takes place before use of this term of sale is considered. Effective the date of this memorandum, Chapter 4 of the SAMM is modified to delete the column titled "Term of Sale - Dependable Undertaking Authorized" from Table C4.T2. DSCA will provide separate guidance to Implementing Agencies on a tri-annual basis to indicate each country's or international organization's current eligibility for use of the Dependable Undertaking term of sale. Prior to release of the tri-annual list to the Implementing Agencies, DSCA will notify the Department of State of any changes being contemplated to a country's or international organization's eligibility. The tri-annual list, which will be marked as For Official Use Only, is the definitive listing of all purchasers eligible for a Dependable Undertaking term of sale. DSCA will determine eligibility for the Dependable Undertaking term of sale based on a country's Interagency Country Risk Assessment System (ICRAS) rating. Countries with an ICRAS rating of "C" or higher, a positive indication of the country's creditworthiness, will be considered eligible for the Dependable Undertaking term of sale unless other factors override that determination. While a country or international organization may be eligible for a Dependable Undertaking term of sale in general, circumstances may warrant that specific cases be written with other terms of sale, such as "Cash with Acceptance." Implementing Agencies or other U.S. Government stakeholders are encouraged to communicate to DSCA any facts that could affect a country's or an international organization's Dependable Undertaking eligibility, some of which may surface during Letter of Request evaluation as described in SAMM C5.1.4.2.2. Implementing Agencies may use the process outlined in the Dependable Undertaking Guidelines, which will be provided separately, to seek approval to offer specific cases with the Dependable Undertaking term of sale to countries or international organizations not otherwise eligible. DSCA will notify the Department of State prior to publishing changes to the Dependable Undertaking list or authorizing a Dependable Undertaking for any country not otherwise eligible under the standard criteria. These changes are detailed in the attached SAMM guidance and are effective the date of signature on this memorandum. As per the new SAMM policy, additional detailed guidance relating to the authorization and exceptions will be provided under separate cover. The points of contact for this policy are Ms. Candace Sampere, DSCA/DBO/FPIO, (703) 601-3750, e-mail: Candace.Sampere@dsca.mil, and Ms. Pam Berg, DSCA/DBO/CFM, (703) 601-3735, e-mail: Pam.Berg@dsca.mil. Jeffrey A. Wieringa ATTACHMENT : DISTRIBUTION :
DEPUTY ASSISTANT SECRETARY OF THE ARMY CC :
STATE/PM-RSAT |
Attachement 1 : SAMM Updates
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DEFENSE SECURITY COOPERATION AGENCY |
7/17/2009 | |
MEMORANDUM FOR : SEE DISTRIBUTION SUBJECT : Supplemental Guidance to the Dependable Undertaking Policy REFERENCE :
Referenced memorandum updated the policy regarding the use of the Dependable Undertaking term of sale on Foreign Military Sales (FMS) cases. The memorandum advised that additional guidance will be provided to assist Implementing Agencies in determining whether the Dependable Undertaking term of sale is authorized for use on individual FMS cases. This memorandum provides that supplemental guidance. The Dependable Undertaking status listing is no longer published as a separate column in the SAMM Table C4.T2. Instead, a list will be provided tri-annually (usually January/February, May/June, and August/September) to the Implementing Agencies via a separate For Official Use Only (FOUO) memorandum. Prior to publishing the list, DSCA will notify the Department of State of any changes being contemplated to a country's eligibility. Attachment 1 contains the current list. Attachment 2 provides an explanation of the ICRAS rating and guidelines to be used in conjunction with the Dependable Undertaking policy in the SAMM Chapter 9, Section C9.8.3. The DSCA Dependable Undertaking Assessment Rating Tool is provided as Attachment 3. As a reminder, per the SAMM guidance, countries with an ICRAS rating of "C" or higher are presumed to be eligible for Dependable Undertaking unless other factors override that eligibility. FMS cases may be written using Dependable Undertaking by relying on the latest DSCA tri-annual eligibility list. If the Implementing Agency or other U.S. Government stakeholders become aware of any factors or considerations that could negatively impact a country's or an international organization's eligibility for Dependable Undertaking, they should communicate that information to DSCA as soon as possible with a recommendation as to whether the eligibility determination should be reviewed. When a country or an international organization is not listed as eligible on the DSCA listing, DSCA will only approve a Dependable Undertaking on a case-specific basis if (1) the Implementing Agency, recommends in writing that an exception should be made, (2) the country or international organization is assessed to be credit worthy using the DSCA Dependable Undertaking Assessment Rating Tool, and (3) the DSCA Director approves the specific case for Dependable Undertaking. The points of contact for this policy are Ms. Candace Sampere, DSCA/DBO/FPIO, (703) 601-3750, e-mail: Candace.Sampere@dsca.mil, and Ms. Pam Berg, DSCA/DBO/CFM, (703) 601-3735, e-mail: Pam.Berg@dsca.mil. Jeffrey A. Wieringa ATTACHMENT :
DISTRIBUTION :
DEPUTY ASSISTANT SECRETARY OF THE ARMY
STATE/PM-RSAT |
Attachment 1 : Dependable Undertaking List THE DEPENDABLE UNDERTAKING ELIGIBILITY LIST IS MARKED FOR OFFICIAL USE ONLY AND CONTAINS SENSITIVE BUT UNCLASSIFIED INFORMATION. DUE TO THE SENSITIVE NATURE OF THE INFORMATION CONTAINED ON THE LIST, IT IS NOT BEING PUBLISHED ELECTRONICALLY. THE LIST WILL BE SENT VIA 1ST CLASS MAIL IN ACCORDANCE WITH DOD REGULATIONS 5400.7R AND 5200.1-R ALONG WITH THE SIGNED POLICY MEMO AND SUPPLEMENTAL GUIDANCE. FOR FURTHER INFORMATION PLEASE CONTACT: CANDACE SAMPERE/DSCA/FPIO/703-601-3750 |
Attachment 2 : Dependable Undertaking Guidelines
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Attachment 3 : DSCA Dependable Undertaking Assessment Tool
FOR OFFICIAL USE ONLY
Dependable Undertaking - Assessment Template
Country:� __________________
Other significant information not listed above should be provided in support of the request along with the source of the data. |