PAM 12-1 governs the initiation, administration, implementation, and execution of Army security assistance and Foreign Military Sales cases.
View PAM 12-1 on armypubs.army.mil
PAM 12-1 contains processes for pre-letter activities, requests, letters of offer and acceptance, technology security, logistics, training, and financial management. It establishes requirements for case preparation, transportation, congressional notification, security reviews, acquisition, payment schedules, and program execution.
An overall 8 percent limit (as a percentage of total FMS administrative surcharge funds allocated to the IA in the same fiscal year) to IA FMS administrative surcharge funds may be expended on Pre-LOR activities. (paragraph 2-1)
The goal of the Pre-LOR process is to assist the international customer in making an informed decision regarding the possible submission of an LOR and to assist the customer in developing an actionable LOR. (paragraph 12-1)
Any proposed denial to a customer request, except those deemed incomplete and irresolvable within the allocated 45 days, will be coordinated with DASA (DE&C). The coordination will include complete justification, along with the relevant background information. (paragraph 2)
A transportation plan is required for all shipments of classified material, regardless of the point at which a customer country takes possession of the materiel. (paragraph 5-2)
Unless the initial deposit constitutes the total value of the LOA, each LOA financed under dependable undertaking, cash prior to delivery, FMS credit, Military Assistance Program (MAP), or any combination thereof will include a payment schedule. (paragraph 7-7)