FMS Flashcards
MIPR
The primary document used by DoD to order goods or services form other DoD services or components. The PM of acquiring activity is responsible for DoD and AF regulation compliance. FM must review and certify funds prior to PM release of MIPR to the other agency. Sending money to different services (Army, Navy, GSA) outside the AF
When do you need a 448-2 Form?
When you have a CAT1 Reimbursable MIPR.
CAT1 is ___ and CAT2 is ____
CAT1 is Reimbursable Fee- The performing agency finances an Air Force purchase of goods and services and bills the receiving organization for reimbursement.
CAT2 is Direct Cite- An order that provides direct funding authority to the performing agency to “cite directly” the line of accounting of the requiring activity. Support agreement IS required
BPAC
1- First Digit: FMS FUND CITE - FMS Direct Cite is Fund Cite (C) - FMS Reimbursable is Fund Cite (N) - FMS Travel is Fund Cite (T) 2- Second-Fourth Digit: Indicates 3 digit case designator (EX: SPD is the case designator for one of the Israeli cases) 3- Fifth & Sixth Digits: Country Code
BAC
Mainly used with O&M funding but can be with other appropriations as well. LCMC is MAINLY BA01 and BA04. Funds can’t be moved without approval. Budget Activity: Categories that identify the purpose or type of activities used only with O&M Funds
1) Operation Forces
2) Mobilization
3) Training & Recruiting
4) Force Management
RCCC
Identifies a specific lowest level which organization. LOCAL level who is responsible for funds.
EEIC
The codes are designed for use in budget preparations and accounting systems to identify the nature of services and item acquired for immediate consumption (expense) or capitalization (investment). 5 digit alphanumeric code consisting of two parts.
The first 3 digits identify the major category and the 2 digit sub account code provides a further shred out.
- EX: 80101 (801 = Aeronautical Vehicle) and ( 01= Airframes/Contractor Furnished Equip)
PSR: Primary Summary Record
We load money at the PSR level Target loads and Accounting Addresses are tracked at the PSR level. Includes all details of an accounting classification. Budget targets are loaded at this level. RC/CC, EEIC, ESP code, etc
FSR: Fund Summary Record
Funds are controlled at discretion of OBAN Manager. Tracked to BQ, bigger pot control within PE.
Firm Fixed Price Contract
An agreement that sets the fee that will be paid for a defined scope of work regardless of the cost or effort to deliver it. Contractor agrees to a set price (including fee/profit) at the beginning of the contract and assumes all the risk to control costs. If costs are LESS than the FFP the contractor will earn MORE PROFIT or vice versa.
Fixed Price Incentive
Firm target price is negotiated consisting of a target cost and a target profit. This contains a share ratio (EX: 70/30 share ratio indicates that, for every dollar that the final contract cost exceeds the target cost, the government will absorb 70 cents of the additional cost while the contractor absorbs 30 cents up to the ceiling. Typically used in EMD, LRIP, full rate production, and O&S contracts. Essentially a cost-type contract with a price ceiling that limits the governments liability.
Cost Reimbursement Contract
A type of contract that allows for payment of all incurred costs within a predetermined ceiling that can be allocated to the contract, are allowable within cost standards, and are reasonable.
Cost Plus Incentive Fee
Target price is negotiated, consisting of a target cost (estimated cost to be incurred in performing the contract requirements) and a target fee (Fee earned by contractor if it incurs cost exactly equal to the target cost).
Used in Development & Test contracts where requirements and technology are known, but not yet integrated and tested, so contractors are incentivized to control costs.
Cost Plus Fixed Fee
Contract is a cost reimbursement contract with a defined ceiling that contains no incentives. The contractor is reimbursed for all allowable costs and is paid a set fee regardless of how well or poorly it performs. Contractor’s cost responsibility is minimized & gov’t cost responsibility is maximized.
Procuring Contracting Officer (PCO)
Handles procurement from pre solicitation to contract signing. Person I’ll mainly be working with. located in program office. Deal with most frequently. Awarding contracts to Boeing, Lockheed, etc
Admin Contracting Officer
Work for (DCMA) Defense Contract Management Agency are the eyes and ears of DoD in Contractor facilities. ACO signs off on first bill
Acquisition Strategy
Identifies an Acquisition approach is either competitive vs sole source, contract type, or cost and funding status.
FM CONTRIBUTION TO ACQUISITION STRATEGY- Provide current cost estimate, ensure compliance with appropriation law and budget regulations, compare cost estimate to budget.
DCMA Pre & Post Contract responsibilities
**Pre-Contract Award: Provide advice for effective solicitations & identify potential risks and Select most capable contractors
**Post-Contract Award: Monitors contractor’s cost, product performance, and delivery schedules are in compliance with the terms & conditions of the contracts
Letter of Request
Identify a request from an eligible FMS participant country for the purchase of US defense articles and services. Requested requirements are analyzed to determine level of risk, exportable configuration impacts, and required development and testing activities. USG responds with a P&A
USG responds with an LOA within 45-150 days from LOR receipt or 60 days from MOR. Provides Best estimate data that IS an offer to sell
P&A- Price & Availability
Prepared by the MILDEPs & DSCA in response to Foreign Partner LOR. THIS IS NOT an official offer by the USG.
Ensure manpower and other government costs (OGC) are sufficiently accounted for. Gives historical rough order of magnitude (ROM) data sufficient for planning but not for budgeting.
Case Development
Case preparation and offering must present LOA within 45-160 DSCA Standard times depending on if you are in Group A, B, C, or D anticipated offer date. NOT A TON of FM INVOLVEMNET.
Pre Case Development
Partner Nation does a majority of Pre Case Development work. They look to define what do we need, and what do we currently have? Send an LOR that articulates enough detail for the USG to provide a plausible solution.
Defined Order
First FMS LOA when country is working with DoD. The IA will use logistics & FM will analyze items, services, costs, and deliveries needed to compile the LOA data. The items to be provided are stated explicitly on the LOA and include specific quantities (articles) or periods of performance (services).
Blanket Order
An agreement between Foreign Partner & USG for a specific category of items or services (Mainly Training) with no definitive listing of items or quantities. The case specifies a dollar ceiling against which orders may be placed.
MOTIVE- Hopes of creating repeat business. Foreign purchaser normally submits its own requisitions. Preferred method is for purchasers to submit requisitions through the Security Cooperation Information Portal (SCIP)
Bilateral AMENDMENT vs Unilateral MODIFICATIONS
- Bilateral AMENDMENT require TWO signatures for Amendments that have a change in scope from what was originally on the LOA. MUST EXPLAIN THE REASON FOR CHANGE IN SCOPE.
- Unilateral MODIFIFCATION can be done to make administrative changes that don’t involve scope. USG can sign to make adjustments
Letter of Offer and Acceptance
Authorized document used to sell defense articles and services to a foreign country or international organization. Formal agreement (contract) between USG & Foreign Partner. Identifies constraints of any required exportability modifications pricing data, a schedule estimate, etc. at an ESTIMATED PRICE.
Partner nations must accept LOA by expiration date 60 days to accept- 25 days as well for US processing.
Initial Deposit
MANDATORY 50% of case paid at inception which is provided along with signed LOA. When accepted the partner nation will send signed copies of the LOA to DFAS & the IA. While also paying their initial deposit to DFAS.
AECA (Arms Export Control Act)
DSCA Law providing guidance for the conduct of FMS. AECA ensures all FMS are have one common thread with US Foreign policy, strengthen US security, and contribute to world peace.
In addition the Foreign Partner must use the purchased item for its DESIGNED PURPOSE. And can’t resell it.
Executive Order (EO) 13526
Mandates a system under which classified information can be identified, accessed, safeguarded. Executive Orders impact the contractual world.
These can be anything from emphasizing veteran-owned business participation in the Federal contracting goals to equal employment opportunities by our contractors
Foreign Assistance Act (FAA)
Promotes foreign policy, security, and general welfare of the US by assisting peoples of the world in their efforts toward economic development, and internal/external security
International Traffic in Arms Regulation (ITAR)
A regulation 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. which defines the items that have been/can be sold. Some countries, depending on their status as an ally, friendly nation, previous relationship, are allowed to have certain items, some are not
Delivery Reporting
Develop a DD645 Country Bill which is an update to Foreign Partner on the status of their expenditures. We compare BQ and DIFS data and report the difference back into CMCS for each effort.
Building Partner Capacity (BPC)
Funded with US government appropriated money and used for FMS. Provide articles and services regarding other transfer authorities for the purpose of building up partner nation security force. The USG assesses the partner nation, begins to define defense requirements, and may draft a Memorandum of Request. BPC get funding allocation document and they expire at the EOFY (9/30/22).
HOW TO KNOW YOU HAVE BPC- Country code is B2, E4, etc.
Fund Code GY (FMS Trust Fund Administrative)
Cover costs of general non case specific administration of FMS program. Costs include manpower and other requirements needed to develop, execute and close FMS cases
