Preparing the Offer · 2 of 4
Support terms and pen and ink changes in an offer
In short
- Concurrent spares cover at least a one-year supply.
- A non-specific requirements line is limited to ten percent of the offer.
- Unauthorized pen and ink changes turn a signed offer into a counteroffer.
1. What an offer must say about support
The Security Assistance Management Manual sets what a Letter of Offer and Acceptance (LOA) for equipment must state about configuration, spare parts, repair support and condition (SAMM C5.6.5.4.10). It also covers offers for nonstandard items and the non-specific requirements line. How an offer is prepared more generally is covered in preparing an offer.
2. Configuration and definitization
An offer shows the configuration of the equipment sold, and gives detailed specifications only where needed (SAMM C5.6.5.4.10). Variations from the standard American configuration are noted, with the risks they may carry. The notes highlight any purchase of a configuration the United States did not recommend.
Any requirement for logistics conferences or other program management actions to definitize the program goes in the offer, with a schedule (SAMM C5.6.5.4.10.1). Conferences held before implementation may be funded from the implementing agency’s administrative budget, and reimbursed from the case once it is implemented. The manual separates these from the security assistance survey teams covered by section 26 of the Arms Export Control Act.
3. Spares and repair parts
The implementing agency (IA) makes sure the offer includes at least a one-year supply of concurrent spare parts, at American peacetime usage rates (SAMM C5.6.5.4.10.2). The package is shown by category and total value on a blanket order line, not item by item. For major defense equipment, the purchaser is told how long American repair parts support is expected to last (SAMM C5.6.5.4.10.3).
Other support details are stated too. An approved sole source request is recorded in the notes (SAMM C5.6.5.4.10.4). Any American intent to develop logistics or maintenance support plans is specified (SAMM C5.6.5.4.10.5). The basis for logistics support costs is stated, including the period covered by the initial spares, operational deployment, the level of maintenance the purchaser will perform and the number of maintenance sites (SAMM C5.6.5.4.10.6). Critical long lead-time items that must be bought before the program is fully defined are identified (SAMM C5.6.5.4.10.7).
4. Condition, and inspecting before acceptance
Known limitations in the condition of items are shown with condition codes or unique notes (SAMM C5.6.5.4.10.8). The offer states that the cost of any rehabilitation is not included in an as-is price. Purchasers are encouraged to carry out a joint visual inspection of the materiel before accepting it, if possible before the offer arrives. That inspection cannot happen before the Defense Security Cooperation Agency (DSCA) approves the transfer, unless DSCA grants an exception.
5. Nonstandard support and non-program items
An offer may provide nonstandard support (SAMM C5.6.5.4.15). That includes hardware or services for commercial end items, support of obsolete end items, including those that have gone through a system support buyout, and support of selected equipment of foreign origin. Requests involving sensitive technology, or with a significant effect on American programs, are coordinated with DSCA.
Each case line in development must be marked in the Defense Security Assistance Management System as a program of record or a non-program of record (SAMM C5.6.5.4.15.1). The rule applies to sales and capacity building cases, and to existing offers when they are next amended or modified. The data tracks industry and purchaser demand for non-program items. Non-program lines are typed in three groups: modified or former programs of record, military-unique capabilities, and commercial products as defined in FAR 2.101 that are not classified (SAMM C5.6.5.4.15.2). Any response that includes a non-program solution must carry the disclaimer note from Appendix 6 (SAMM C5.6.5.4.15.3).
6. The non-specific requirements line
A sales case may include a non-specific requirements line, as a holding place for funds budgeted but not yet assigned to specific requirements, when the purchaser requests or agrees (SAMM C5.6.5.4.16). It cannot be used to requisition items or provide services, and it is added by amendment. Capacity building cases may not include one, because they must define requirements precisely enough for congressional approval. Foreign Military Financing may not fund one.
The line is written with no defined period of performance, and the administrative surcharge applies to its value (SAMM C5.6.5.4.16.1). Its value is limited to ten percent or less of the offer. Its collections normally come at the end of the payment schedule, leaving time to define requirements on separate lines. No obligation authority is granted and no orders may be placed against it (SAMM C5.6.5.4.16.2). When the purchaser identifies requirements, the money moves to specific lines, normally by amendment. Exceeding ten percent, or adding lines by modification for urgent needs, requires an exception to policy approved by DSCA (SAMM C5.6.5.4.16.3).
7. Changing an offer after it goes out
Sometimes an offer needs changing after it has been countersigned and sent, with both the purchaser and the IA agreeing. The manual calls these pen and ink changes and wants them kept to a minimum (SAMM C5.6.12). The purchaser must be authorized to make them by email or memorandum, copied to the Defense Finance and Accounting Service. Every change must also be made in the Defense Security Assistance Management System, and an updated copy given to the purchaser.
Minor changes, such as small arithmetic corrections that do not raise the total case value, address corrections or small wording changes in notes, can be approved by the IA (SAMM C5.6.12.2). Changes in scope, terms of sale or total cost generally need a new or restated document. Pen and ink changes for scope need exceptional circumstances and DSCA’s prior concurrence, and changes to the initial deposit or payment schedule need DSCA approval (SAMM C5.6.12.3). The offer expiration date may be extended without restatement if the request comes within 6 months after it expires, the offer has not been canceled and the IA confirms the data are still valid (SAMM C5.6.12.1). An offer returned signed with unauthorized pen and ink changes is treated as a counteroffer (SAMM C5.6.12.4).
Key terms
| Concurrent spare parts | The initial spares offered with equipment, at least a one-year supply at peacetime rates. |
|---|---|
| Definitization | Defining a program fully, often through logistics conferences scheduled in the offer. |
| Joint visual inspection | An inspection of materiel by the purchaser before it accepts an as-is offer. |
| Non-program of record | A line for items outside any American program of record, typed in three groups. |
| Non-specific requirements line | A holding line for budgeted funds, limited to ten percent of the offer. |
Every statement above links to the document behind it. The full source list for this piece is on the sources page.
This page describes public United States government programs for general information. It is not legal, regulatory or procurement advice, and it does not address the facts of any particular case.
How Sentfore supports this
Support terms on paper have to be met by support in practice. Sentfore works at the delivery end of defense programs in difficult environments, providing secure movement, protective security, facilities and life support. Requirements can be sent through the contact page.