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To the extent authorized by the Type of Assistance TA and Source of Supply SOS codes assigned to the LOA line item, requirements that cannot be satisfied at reorder level may be filled by one of the following methods the following may not be inclusive of all appropriate support options.
The Item Manager may place the requirement on backorder. Once the procurement lead-time elapses, the backorder is eligible for release.
The Item Manager may initiate an immediate procurement action. If an item is supported by direct vendor delivery, prime vendor, or contractor custody inventory, the requisition may be processed without delay, as long as the contract allows Security Assistance orders and U.
The DoD Components use this equity investment capitalization to procure additional stocks of secondary items, in preparation for purchaser stock withdrawals. When there is an excess quantity of an item in DoD stock, demand records are reviewed before excess materiel is transferred or declared surplus.
If CLSSA requirements caused the excess condition, IA notifies the purchasers of their liability and asks for disposition instructions. When a purchaser builds an initial FMSO I, then terminates the CLSSA before substantial orders are placed, and no other purchaser exists, liability may apply for assets on hand and due-in.
The purchaser is responsible for all disposal costs. By accessing the Tailored Vendor Logistics' electronic catalog, the FMS purchaser can identify the item, price and supply lead-time with the added flexibility of being able to define special requirements and delivery needs, before submitting the requisition.
In addition to providing support for standard items, this program also supports requirements for non-standard items. Diversions and Withdrawals of Materiel. National security considerations and foreign policy objectives may require deviation from this DoD policy in order to expedite equipment delivery to a purchaser.
Items may be diverted from production or from U. Forces to meet high priority FMS requirements. While the language of AECA, section 21 i pertains only to shipments from stocks, impacts can occur when the Department of Defense diverts materiel from production. The diversion or withdrawal must not significantly lower the operational readiness of U.
Forces as determined by the DoD Component. Any diversion or withdrawal that would impact U. If the proposed diversion or withdrawal includes tanks, a determination that the proposed sale will not increase the shortage of tanks in the U.
National Guard or Reserve during the current 5-year defense plan is included in the Congressional notification and Congress is advised of the plan to replace the tanks. Report to Congress - Diversions.
The AECA requires a report by the President to Congress when a sale could have significant adverse effect on the combat readiness of the U. The Secretary of Defense determines whether the DoD provides items on an expedited basis and whether the impact of doing so is significant within the meaning of AECA, section 21 i.
When the Secretary of Defense advises the President of the requirement for a report to Congress, the Secretary provides the analysis relevant to the justification and certification called for in AECA, section 21 i 1 E.
No Presidential report is required if the decision is not to make a sale. AECA, section 21 i also applies when the significant adverse effect becomes apparent after a sales contract is concluded.
However, no Presidential report is required with respect to supply action under a sales contract where the supply action is altered in order to avoid a significant adverse effect on U.
For weapons systems soon to be obsolete to U. The purchaser should have a minimum of 2 years to place a final order for secondary items to support the system for its remaining useful life. After this time period, the following are authorized: Items with no demand for 4 years, including the system support buyout period, may be processed for disposal.
Items with demand during the 4-year period may be retained and managed in support of Security Assistance SA requirements.The period of authorized status as a nonimmigrant described in section (a)(15)(O) of this title shall be for such period as the Attorney General may specify in order to provide for the event (or events) for which the nonimmigrant is admitted.
GE Supplier Policies: For more details on a specific GE Policy, select the desired link below. Chapter 6, Foreign Military Sales Case Implementation and Execution discusses how accepted Letters of Offer and Acceptance (LOA) are implemented, executed, or cancelled.
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