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How is a lease of U.S. defense articles documented?

Updated 3 October 2026Checked against the SAMM: 26 September 2026

The writes the lease in the Defense Management System, in the format the manual sets, signs it and sends it to for countersignature. Each lease carries a unique designator, and the case that supports it, for transport, refurbishment and any loss or damage, references that designator. The office in the lessee's country receives a copy and helps monitor the equipment, and the updates the status of each active lease every quarter.

THE LEASE PROCESS · SAMM TABLE LoDA.T1 fmsedge.com Letter of Request to the Implementing Agency from the partner, with a copy to DSCA · T1 step 1 The IA, with DSCA, weighs the request is a lease viable? are the items needed for public use? · T1 step 2 The IA prepares the lease package the determinations, and why a lease and not a sale · T1 step 3 DSCA coordinates it with OUSD(P) and State after the IA's own review and submission · T1 steps 4 to 6 Lease of one year or longer? AECA §62 · LoDA.5.1 yes Congress notified 30 calendar days ahead DSCA prepares the notification · LoDA.5.1 · T1 step 7 AECA §62 certification goes at least 15 calendar days before for NATO, its members, Australia, Japan, the Republic of Korea, Israel and New Zealand, and 30 calendar days before for others · LoDA.5.2 DSCA countersigns the lease after coordination and any notice period · T1 step 8 No offer before the notifications are complete only then does the IA sign the lease and send it to the partner for signature · T1 steps 2 and 9 where a notification is needed, an unsigned draft may go to the partner once it is delivered · T1 step 7 Congress may block it by joint resolution in the notice period, for a lease valued at $14 million or more of Major Defense Equipment, or $50 million or more of other defense articles · LoDA.5.1 If a naval vessel over 3000 tons or under 20 years old: specific statutory authorization 10 U.S.C. 8677 · LoDA.2.6.1 The lease runs one to 60 months plus the time needed for major refurbishment · LoDA.2.2 the partner's travel, shipping and replacement costs go on the FMS support case · LoDA.1.1 no under one year: no notification Under one year, the IA sends DSCA the lease determination and forwarding memorandum for countersignature, and DSCA coordinates it before signing (T1 steps 5, 6 and 8). In an emergency the President may waive the notification, with a detailed justification in the certification (AECA §62(b) · LoDA.5.2.1 · LoDA.5.3). FMS Edge a step · the rule the offer waits on · only in some cases fmsedge.com · Current as of 30 September 2026 · SAMM Appendix 8, Lease of Defense Articles

A lease of U.S. defense articles starts with the partner's Letter of Request to the Implementing Agency, which decides with DSCA whether a lease fits, prepares the lease package and sends it to DSCA for coordination. A lease of one year or longer is notified to Congress 30 calendar days in advance, a naval vessel above the size or below the age the statute sets needs its own authorization, and no offer is made before the notifications are complete. A lease runs from one month to 60 months, plus the time needed for major refurbishment.

How a lease of U.S. defense articles is approved · Current as of 30 September 2026 · SAMM Appendix 8, Lease of Defense Articles · Download PNG

How is a lease of U.S. defense articles documented?

Leases are prepared using the Defense Management System (). Additional provisions may be added with the concurrence of . The lease will be signed by the appropriate and provided to for countersignature.

A separate case will be used for packing, crating, handling, and transportation (PCH&T), and the sale of associated articles and services, including any refurbishment of the (s) required prior to, during, or after the lease period. The case will also be used to recover applicable costs if the article is lost, damaged, or destroyed during the lease period.

Using , the assigns a unique designator to each lease. The lease designator is composed of the Customer Code, the code, and a three-position code assigned by the . The lease designator is included on each lease page, including schedules, appendices, and accompanying documents. cases associated with leases must reference the lease designator.

The or where no is assigned in the international partner’s country should receive a copy of each lease entered into with the respective international partner’s country where they serve. The should assist DoW components in monitoring the use of -owned equipment in the international partner’s country.

The overall responsibility for all aspects of lease administration, including monitoring equipment while leased, belongs to the DoW component having logistics responsibility for the leased equipment. are required to update the status of each active lease on a quarterly basis. This update is made in the .

References

Drawn exclusively from publicly available authorities.

SAMM

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