DSCA 24-40 | Defense Security Cooperation Agency (2024)

Incorporated

Policy changes from this SAMM E-Change memo have been incorporated into the SAMM.

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Attachment: Security Assistance Management Manual E-Change 692
Draft SAMM Update on PDA Delivery

1. Revise Table C11.T5. Drawdown Process, per the following:

   Note: Only the portion of Table C11.T5. under modification is included. To see the entire Table C11.T5. as it currently reads, see: https://samm.dsca.mil/chapter/chapter-11#C11.T5.

   Step

   Actions

   10

   The MILDEPs submit delivery data on drawdowns into DSCA's 1000 System once constructive delivery occurs and title is transferred to the partner representative (See Section C11.2.8. Delivery). Required tracking data includes: Item/Service, Quantity, Unit Cost (drawdown value), Equipment (Total Quantity Cost), Services/Repair, Training (if applicable), Spare Parts, Design/Construction Services, Support Equipment, PC&H, Transport, and Total Item/Service Cost (sum of all other categories for each items). Salaries for civilian services should be separately identified. Refer to Chapter 8 to verify that certification of partner nations' storage facilities and submission of serial numbers for EEUM-designated articles is required.

2. Update Section C11.2.4.2. to read as:

   C11.2.4.2. Services. DoD personnel may provide services in support of a drawdown. DoD contractors may also be used to provide drawdown services if the MILDEP obligated O&M funds for the contractor's services prior to the PD approval. After a PD is approved, a MILDEP may not incur a new obligation under existing or a new contract to support the drawdown. The nature of the services provided by either DoD personnel or DoD contractors must fall within the scope of the PD. Services are considered delivered at time of performance and upon completion.

3. Insert the following into Chapter 11 and renumber existing sections as needed.

   C11.2.8. Delivery of Materiel. Articles provided to a partner via Presidential Drawdown Authority (PDA) are considered delivered when constructive delivery occurs and title transfers to the partner, either during, or prior to, physical delivery of the article. Constructive delivery occurs when title transfers prior to physical delivery of the article. Determining when it is most advantageous for a Military Department (MILDEP) to execute title transfer with the supported partner will depend upon the circ*mstances. Deferring title transfer until items are physically delivered to the supported partner may make it easier for the U.S. government to obtain third-party country tax exemptions and permissions to transit PDA materiel through third-party partners. A MILDEP may also prefer to defer title transfer until physical delivery to preserve the United State's decision space during a crisis. In other circ*mstances, a MILDEP may prefer to seek title transfer prior to physical delivery, such as the earliest possible point in the transportation process, (e.g., when the article departs the origin location for a consolidation point or Port of Embarkation (POE)). A MILDEP may prefer to seek title transfer prior to the commencement of transportation support, if title transfer enables the supported partner to use any funds outside PDA to complete modifications, exportability work, or refurbishment efforts of a defense article drawn down under PDA. The chain of custody must be maintained throughout the entire transportation process.

   C11.2.8.1. Title Transfer. A MILDEP cannot transfer title to the supported partner by unilaterally updating MILDEP inventory records. Title transfer occurs when the supported partner representative completes paperwork accepting ownership of the transferred materiel. The DD Form 1348-1A, Issue Release/Receipt Document, will be used to document title transfer. In instances where the MILDEP is unable to provide the title transfer paperwork directly to a partner representative a CCMD representative (e.g. SCO or joint command) may facilitate receipt, staging, and onward movement of materiel designated for PDA transfer. The CCMD representative is responsible for completing the title transfer paper with a partner representative and must provide this documentation, to include transit equipment final transfer (change of custody), to the MILDEP CONUS Accountable Property Officer (APO) / Property Book Officer (PBO) through email or other electronic means for the APO / PBO to decrease the accountable record.

   C11.2.8.2. Delivery Reporting. The MILDEPs are responsible for retaining the title transfer documentation and updating the DSCA 1000 system after title transfer. The MILDEPs must only report materiel as delivered in the DSCA 1000 system after title transfer and the supporting delivery documentation is available. The MILDEPs also maintain responsibility to verify movement is tracked through DoD internal systems, physical delivery to the partner is complete, and retain documentation of physical delivery.

   C11.2.8.2.1. A CCMD will determine if any additional paperwork beyond the DD Form 1348-1A is required within the AOR to document physical delivery. To facilitate and support a MILDEP's documentation and records management responsibilities, CCMDs will provide the MILDEP with copies of any received documentation to confirm physical delivery.

   C11.2.8.3. Delivery of Classified Items. As with unclassified defense articles, delivery of item in a classified PD annex occurs when title transfers. Title transfer for classified items should be documented by DD Forms 1348-1A. Documentation of the title transfer shall be maintained by the MILDEPs and CCMDs at the appropriate level of classification. MILDEPs shall also report deliveries of classified items in the DSCA 1000 System, ensuring the record description refers to the classified annex for additional details and identifying information. For information on accountability-related activities taking place after title transfer and physical delivery of articles, see Chapter 8 - End Use Monitoring.

4. Add to SAMM Glossary a definition of Constructive Delivery for PDA:

   Term	Definition	Link
   Constructive Delivery (Presidential Drawdown Authority):	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.	N/A