Current Content
(c)(i) Separately identify known FMS requirements and the FMS customer in solicitations.
(ii) For economies of scale and efficiency, combine U.S. and FMS requirements under the same contract whenever possible. It is not in the taxpayer’s interest to concurrently use mixed contract types for the same or similar items.
(iii) Clearly identify contracts for known FMS requirements by the case identifier code in section B of the Schedule.
(iv) Ensure that the FMS LOA terms and conditions are incorporated into the signed contract.
(v) Ensure that the shipping terms for any contract for FMS materiel are stated as free on board (f.o.b.) origin.
(vi) For Pseudo LOAs, ensure that the period of performance in the contract is consistent with the period of availability of appropriated funds, as provided by the financial resource manager.
(vii) Consistent with the Defense Transportation Regulations (DTR) 4500.9-R-Part II, Cargo Movement, http://www.transcom.mil/dtr/part-ii/, Appendix E, contracting officers shall ensure that contracts involving the acquisition and delivery of FMS materiel comply with the policies, procedures, packaging, labeling, and documentation requirements specified by the DTR.
(viii) The Government representative responsible for acceptance shall ensure that the contractor prepares material inspection and receiving reports in compliance with—
(A) Appendix F, F-301(b)(15)(iv)(K) for a Wide Area WorkFlow (WAWF) Receiving Report; or
(B) F-401(b)(16)(iv)(L) for a paper DD Form 250, Material Inspection and Receiving Report, if an exception to the use of WAWF at 232.7003 applies.
(ix) Prior to contract award, contracting officers shall ensure that—
(A) If a contracting officer’s representative is assigned, detailed point of contact information (email, phone number with international dialing protocols, and physical and mailing address) shall be clearly visible;
(B) Unique country requirements are specified in the contract (i.e., additional documentation requirements for use in country customs clearance (Levy Exemption waiver));
(C) Commodity-unique requirements are specified in the contract (i.e., responsibility for obtaining/paying for/affixing active Radio Frequency Identification tags and Transportation Control Number construction/usage); and
(D) The FMS Transportation Accounting Code is stated in the contract.
Change History
| Detected | Type | Summary |
|---|---|---|
| detected 2026-04-17 | PGI_MODIFIED | PGI 225.7301 updated: 9 lines added, 5 lines removed |
View diff--- previous +++ current @@ -1,5 +1,9 @@ -(a) The U.S. Government sells defense articles and services to foreign governments or international organizations through FMS agreements. The agreement is documented in a Letter of Offer and Acceptance (LOA) (see the Defense Security Cooperation Agency (DSCA) Security Assistance Management Manual (DSCA 5105.38-M)). -(b) Conduct FMS acquisitions under the same acquisition and contract management procedures used for other defense acquisitions. -(c) Follow the additional procedures at PGI 225.7301 -(c) for preparation of solicitations and contracts that include FMS requirements. -(d) See 229.170 for policy on contracts financed under U.S. assistance programs that involve payment of foreign country value added taxes or customs duties.+(c)(i) Separately identify known FMS requirements and the FMS customer in solicitations. +(ii) For economies of scale and efficiency, combine U.S. and FMS requirements under the same contract whenever possible. It is not in the taxpayer's interest to concurrently use mixed contract types for the same or similar items. +(iii) Clearly identify contracts for known FMS requirements by the case identifier code in section B of the Schedule. +(iv) Ensure that the FMS LOA terms and conditions are incorporated into the signed contract. +(v) Ensure that the shipping terms for any contract for FMS materiel are stated as free on board (f.o.b.) origin. +(vi) For Pseudo LOAs, ensure that the period of performance in the contract is consistent with the period of availability of appropriated funds, as provided by the financial resource manager. +(vii) Consistent with the Defense Transportation Regulations (DTR) 4500.9-R-Part II, Cargo Movement, http://www.transcom.mil/dtr/part-ii/, Appendix E, contracting officers shall ensure that contracts involving the acquisition and delivery of FMS materiel comply with the policies, procedures, packaging, labeling, and documentation requirements specified by the DTR. +(viii) The Government representative responsible for acceptance shall ensure that the contractor prepares material inspection and receiving reports in compliance with-- (A) Appendix F, F-301(b)(15)(iv)(K) for a Wide Area WorkFlow (WAWF) Receiving Report; or (B) F-401(b)(16)(iv)(L) for a paper DD Form 250, Material Inspection and Receiving Report, if an exception to the use of WAWF at 232.7003 applies. +(ix) Prior to contract award, contracting officers shall ensure that-- (A) If a contracting officer's representative is assigned, detailed point of contact information (email, phone number with international dialing protocols, and physical and mailing address) shall be clearly visible; (B) Unique country requirements are specified in the contract (i.e., additional documentation requirements for use in country customs clearance (Levy Exemption waiver)); (C) Commodity-unique requirements are specified in the contract (i.e., responsibility for obtaining/paying for/affixing active Radio Frequency Identification tags and Transportation Control Number construction/usage); and (D) The FMS Transportation Accounting Code is stated in the contract. |
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