| There will likely be several
situations where changes need to be made to the basic LOA or FMS case
during the “life” of the program. Changes may be initiated by the
USG or by you. These changes will take the form of Amendments or
Modifications. The type of document to be used will be determined by
the USG.
Amendments: Any revision to an LOA that requires
your acceptance must be done using an Amendment. Amendments might
include changes in the scope of a FMS case, such as the type or number
of items to be provided. Before they can be implemented, Amendments
must be accepted by the USG and by you, the Purchaser, in the same
manner as the original LOA. Some Amendments may require initial
deposits---just like basic cases; these funds must be received before
the Amendment will be implemented.
Pen and Ink Changes: These types of
changes may be done on Amendments using the same rules that
apply to LOAs.
Modifications: Any revision that does
not require your acceptance may be done using a Modification.
Modifications include changes that do not constitute a change in scope
and are used for U.S. unilateral changes. Examples of changes that
might appear on a Modification include: increases or decreases in
estimated costs; delays in delivery; changes in the payment schedule;
and changes to correct administrative errors.
The U.S. is committed to apply its best efforts
to provide you with a Modification when one of the following
conditions exist:
- Estimated total costs increase by ten percent
or less,
- The payment schedule changes, or
- Significant delivery delays are projected.
Your signature on a Modification is not
required, but may be recorded to acknowledge your receipt.
Except for DSCA-issued changes to an LOA’s
financing terms, pen and ink changes to Modifications are not
authorized. Changes initiated after a Modification has been
implemented must be accomplished using another Modification or
Amendment, as appropriate.
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