Performance criteria liquidating damages

There are many key financial functions performed during the life cycle of a Foreign Military Sales (FMS) case. Case development activities are those required to prepare LOAD quality data after an LOR is complete.

Development of pricing estimates for Letter of Offer and Acceptance (LOA) documents and billing and reporting of Security Assistance (SA) costs incurred and collected are two critical financial functions. Case development activities are complete when the LOA has been signed by the purchaser.

The LOA indicates that prices for articles and/or services are estimates.

See Do D 7000.14-R, Volume 15, Chapter 7, for details on those instances when firm prices may be quoted on an LOA.

The charge is based on the proportionate share of work years needed for the FMS items.

The charge is pro-rated based on the ratio of items produced for FMS purchasers to the total items produced in the same time frame.

This chapter provides an overview of SA policies and procedures for financial management. IAs must make prudent choices when expending FMS Administrative Surcharge funds.

Nonrecurring costs (NC) are recoverable via policies and procedures included in Do D Directive 2140.02 and Do D 7000.14-R, Volume 15, Chapter 7.

Fees will be charged for such guaranties (AECA, section 24 (22 U. Pre-LOR activities include research and analysis, meetings, briefings, responses to requests for proposals and participation in international competitions, equipment demonstrations, and travel directly related to those efforts.

The USG may guarantee financing by any individual, corporation, partnership, or other judicial entity doing business in the United States (excluding USG agencies other than the Federal Financing Bank) if such financing is in connection with FMS or direct commercial sales of defense items. A complete LOR is one that contains all of the information necessary for the Implementing Agency (IA) to develop an LOA response.

USG-furnished engineering services are charged directly to an FMS case as follows.

Performance of the service is necessary for production, configuration control, or reliability of the procured item.

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