What happens to leftover money on a Foreign Military Sales case?

Once the conditions for SSC are reached, lines and/or cases shall be coded by the IA with this status and the actual date of SSC within 5 business days in Socium and the appropriate security cooperation information management systems. This coding shall not be delayed under any circumstance. The management of blanket order case/line items is generally conducted based on their value. Therefore, the application of SSC status on blanket order cases and/or lines may be accomplished based on the amount of unused value, when appropriate, rather than the absence of open orders, in addition to the purchaser’s concurrence that no further activity will occur. The reconciliation condition of data (other than that which is preventing item delivery or actual completion of services), the allocation of resources (funding and/or manpower), or the distribution/transfer of workload has no application in determining when supply/services completion occurs. To the extent possible, the SSC status of lines and sub-lines should be coded in the Defense Security Assistance Management System (DSAMS) as either completed (CMPLTD) or shipped (SHPD).

If the international partner indicates the intent to execute the residual value of the FMS case, the IA will include it on the “To Be Kept Open” list upon written notification from the LOA signatory organization until requirements are identified to use the residual case value. At that time, the IA will remove the SSC status on the FMS case and remove it from the “To Be Kept Open” list. Until the case is removed from the “To Be Kept Open” list, the IA should follow-up every 60 days with the international partner and provide DSCA the current status through the quarterly case closure reporting process. If disposition of the residual case value has not occurred after 180 days, the case should be removed from the “To Be Kept Open” list and moved to interim or final closure as applicable; the residual value is then returned to the purchaser’s holding account as part of the closure transaction. This policy is intended to allow the residual value to be used and is not a blanket endorsement for the addition of funds to the case that will extend the execution phase, which could prolong the reconciliation and closure of the case beyond set standards.