[The following is a reprint of AMSAC-OL-MP (12-8a) memorandum, dated 5 September 1997, subject as above.]
1. Reference USASAC Notice la-61 (AR 12-8), 7 Dec 1993, subject as above.
2. Per above reference a three percent administrative charge is to be applied to a nonstandard items/services on Letters of Offer and Acceptance (LOAs) that contain a program management line. Nonstandard materiel on LOAs which do not contain a program management line will be assessed a 5 percent administrative charge.
3. Further clarification is provided below:
a. There may be instances when a program management line is included on an LOA to provide support for multiple LOAs directly related to a single purchase. If a program management line supports an entire program, all nonstandard items on any LOA within the program will be charged a three percent administrative charge. When a program management line covers more than one LOA, each LOA should make reference to the associated case(s) in a note. This will ensure that everyone working the case understands why the three percent administrative charge was applied to any nonstandard items on these cases. See new standard notes in paragraph 4 below.
b. Any new lines added for nonstandard items will be assessed a three percent administrative charge as long as the program management line is still active. After the program management line has expired, any lines added for nonstandard items will be …