Tools
LOA cost estimator
Adds the standard charges to a set of lines: , the Administrative Surcharge, and the transportation charge set by each line's .
Estimate only — the governs.
LOA lines
Estimate
| Charge | Amount (US$) | Rate and source |
|---|---|---|
| Articles and services | $0.00 | Entered by line |
| CAS — quality assurance and inspection | $0.00 | 0.45 percent · SAMM C9.T4 |
| CAS — contract administration management | $0.00 | 0.45 percent · SAMM C9.T4 |
| CAS — contract audit | $0.00 | 0.10 percent · SAMM C9.T4 |
| CAS — OCONUS | $0.00 | not applied · SAMM C9.T4 |
| FMS Administrative Surcharge | $0.00 | 3.2 percent · SAMM C9.T4 |
| Transportation | $0.00 | By line and DTC · SAMM C9.T4, SAMM C9.T4A |
| Estimated total | $0.00 |
Not included: nonrecurring cost recoupment, packing, crating and handling, and the other accessorial charges a case may carry below the line. SAMM C9.3.6, SAMM C9.T4
How the estimate is built
is part of the value of a procurement line. The estimator adds it to each line marked for before the other charges are computed. SAMM C9.T4
The Administrative Surcharge is a percentage of each applicable line's value, charged below the line. Program Management Lines, Small Case Management Lines and grant lines are not charged it. SAMM C9.T4
Transportation is charged on article lines only, at the percentage for the fund the article ships from. A blanket order line carries the full percentage on its value; a defined order line carries it on the first $10,000 of unit cost and 25 percent of it on the portion above. SAMM C9.T4, SAMM C9.T4A
Where a Transportation Bill Code is used it overrides the , and estimated or actual transportation pricing may be used when known. SAMM C9.T4
Title 10-funded Building Partner Capacity cases are not assessed the administrative, or transportation surcharges (effective 14 Aug 2020). SAMM C9.T4
Rates in use: Administrative Surcharge 3.2 percent for lines implemented on or after June 1, 2018; for implemented on or after February 1, 2020. SAMM C9.T4
Delivery Term Code percentages
| DTC | Delivery term | From DWCF stock | Other than DWCF |
|---|---|---|---|
| 2a | a) Inland origin to inland destination within the continental United States (CONUS)/Canada (except Newfoundland and Labrador) | 0.00% | 2.75% |
| 2b | b) Inland origin to inland destination within a foreign country other than Canada | 0.00% | 2.75% |
| 4 | Recipient country is responsible for the cost of CONUS transportation and subsequent arrangement for onward movement or when transportation is provided as a case line such as high flight or special assignment airlift mission (SAAM) | 0.00% | 0.00% |
| 5 | DoD movement for Foreign Military Sales (FMS) customer in CONUS/Canada (except Newfoundland and Labrador) | 0.00% | 2.75% |
| 7a | DoD movement from point of origin to, and including, inland carrier delivery to the specified inland location (includes overseas movement of parcel shipments via the Military Postal Service through Army or Air Force Post Office (APO)/Fleet Post Office (FPO) channels): a) To Europe, Hawaii, Latin America (Central America and Caribbean Basin), and Mediterranean ports | 10.25% | 13.00% |
| 7b | DoD movement from point of origin to, and including, inland carrier delivery to the specified inland location (includes overseas movement of parcel shipments via the Military Postal Service through Army or Air Force Post Office (APO)/Fleet Post Office (FPO) channels): b) To Newfoundland, Labrador, Thule, Iceland, South America (East and West Coasts), Far East, African ports (other than Mediterranean), and Near East | 12.00% | 14.75% |
| 8 | DoD movement from point of origin to, and including, unloading, handling, and storage aboard vessel at port of exit | 2.50% | 5.25% |
| 9a | DoD movement from point of origin to, and including, vessel discharge at the point of discharge: a) To Europe, Hawaii, Latin America (Central America and Caribbean Basin), and Mediterranean port | 7.25% | 10.00% |
| 9b | DoD movement from point of origin to, and including, vessel discharge at the point of discharge: b) To Newfoundland, Labrador, Thule, Iceland, South America (East and West Coasts), Far East, African ports (other than Mediterranean), and Near East | 9.00% | 11.75% |
Sources
- SAMM C9.T4 — Table of Charges
- SAMM C9.T4A — Table of Delivery Term Codes and Percentage
- SAMM C9.3.6 — Direct and/or Indirect Charges.
Foreign Military Sales (FMS)
A process, authorized by the Arms Export Control Act, through which eligible foreign governments and international organizations may purchase defense articles, services, and training from the United States Government.
SAMM Glossary, as of 12 September 2026
Glossary entry →Open the manual’s entry → (opens in new tab)
Letter of Offer and Acceptance (LOA)
The legal instrument used by the USG to transfer itemized defense articles, defense services, and design and construction services to foreign partners.
When used under the authorities provided in the Arms Export Control Act for Foreign Military Sales, the LOA is a binding agreement signed by the USG and the foreign partner to transfer such articles and services.
When used under Building Partnership Capacity (BPC) authorities, the BPC LOA is not signed by the Benefitting Partner.
SAMM Glossary, as of 12 September 2026
Glossary entry →Open the manual’s entry → (opens in new tab)
Contract Administration Services (CAS)
All those actions accomplished in or near a contractor's plant for the benefit of the U.S. government which are necessary to the performance of a contract or in support of the buying offices, system/project managers, and other organizations, including quality assurance, engineering support, production surveillance, pre-award surveys, mobilization planning, contract administration, property administration, industrial security, and safety.
SAMM Glossary, as of 12 September 2026
Glossary entry →Open the manual’s entry → (opens in new tab)
FMS — Foreign Military Sale
SAMM Acronyms, as of 12 September 2026
Delivery Term Code (DTC)
A single character code that represents how far the USG is responsible for arranging transportation of defense articles going to an international customer.
SAMM Glossary, as of 12 September 2026
Glossary entry →Open the manual’s entry → (opens in new tab)
Excess Defense Articles (EDA)
Defense articles owned by the USG which are neither procured in anticipation of military assistance or sales requirements, nor procured pursuant to a military assistance or sales order. EDA are items (except construction equipment) that are in excess of the Approved Force Acquisition Objective and Approved Force Retention Stock of all DoD components at the time such articles are dropped from inventory by the supplying agency for delivery to countries or international organizations.
SAMM Glossary, as of 12 September 2026
Glossary entry →Open the manual’s entry → (opens in new tab)
LOA — Letter of Offer and Acceptance
SAMM Acronyms, as of 12 September 2026