(a) With release of SAP R2.2.2.b, all line items in new outline agreements/contracts that support FMS customers should be awarded as F.O.B. Origin. This ensures that cargo is recognized as U.S. Government property when shipped, in accordance with Security Assistance Management Manual (SAMM) guidance in DOD 5105.38-M paragraph C.7.5.1. With appropriate consideration obtained, existing contracts that contain F.O.B. Destination terms for FMS shipments may be modified to F.O.B. Origin as needed to facilitate a FMS shipment.
(b) The ability to include FMS requirements in contracts may still be limited by preservation and packing requirements. Marking must comply with MIL-STD-129 and the Security Assistance Management Manual for FMS requirements. In addition, FMS shipments should be by traceable means.
(c) In order to reduce misdirected shipments of FMS materiel, do not place shipping addresses on FMS contracts. Orders and contracts assigned to DCMA for administration shall include a notice to require the contractor to refer to DCMA and the Enterprise Transportation Officer Defense Distribution Center (ETO DDC) for the applicable Government shipping document/instructions. DCMA uses the Shipping Information Request (SIR) web based application available through http://www.DCMA.mil; rather than the prior DD Form 1659, Application for U.S. Government Shipping Documentation/Instructions. The (ETO DDC) is contacted via [email protected] or 1-800-456-5507.
(d) Additional contract provisions may be appropriate to satisfy unique requirements for requisitions that contain a "Z" or "Y" in card column 46. These offer and release codes require notification to the designated Country Representative or Freight Forwarder prior to release of shipment of hazardous, oversized, or overweight items. However, do not list the freight forwarder or embassy addresses in the contract.
(e) Under the terms of the Letters of Offer and Acceptance (LOA) negotiated with foreign governments, title transfers to the foreign government at the contractor’s loading dock.
(f) Inspection and Acceptance procedures for FMS.
Since all FMS orders will be now be shipped F.O.B. Origin, acceptance and inspection shall also be performed at Origin. Requiring a Certificate of Conformance from the supplier is in the government’s best interest for FMS orders. See also 46.601-91 and the prescribed clause, 52.246-9020 Distribution of Material Inspection and Receiving Report, which requires the contractor to include a hard copy of the DD250/WAWF-RA Receiving Report in the exterior and interior shipping documentation for each package being shipped. Alert suppliers of this condition, as FMS orders without the hard copies are frequently delayed or detained.
(i) For suppliers who qualify for DCMA’s Alternate Release Procedures (ARP), acceptance will be accomplished by the electronic signature of the DCMA Quality Assurance Representative on the electronic DD250 form found in Wide Area Work Flow.
(ii) For suppliers who do not qualify for ARP, DCMA will perform inspection/acceptance manually, if needed.
(iii) Certificates of Conformance shall be required of suppliers for each FMS line item being shipped.
(g) Solicitation provisions and contract clauses.
For non-energy FMS orders and contracts, use DLAD clause 52.225-9002, FMS Shipping Instructions (Nov 2009) in solicitations/contracts with FMS line items.
