ADC 369, Attachment 

Page 1 

ADC 369 

MOV Request Distribution Exception Rule for DoD SoSs 

and Alternative Procedures for MOV under Navy BRAC SS&D/IMSP 

1. ORIGINATOR: Defense Logistics Agency (DLA), J-3311, DSN 221-2691

2. FUNCTIONAL AREA: Primary: Supply/ Logistics

3. REFERENCES: 

a. Functional Requirements for DLA’s implementation of Base Realignment and Closure 

(BRAC) Retail Supply, Storage And Distribution (SS&D)/Inventory Management and Stock 

Positioning (IMSP) Spiral 2. 

b. AT&L Memorandum transmitted April 21, 2010, subject: Proposed Changes in 

support of Navy BRAC Inventory Management and Stock Positioning (IMSP) Spiral II. This 

memorandum documents ADUSD(L&RM)SCI direction provided to DLA and Navy authorizing 

immediate implementation of this DLMS change. 

 c. DOD 4000.25-M, DLMS, Volume 2, Supply Standards and Procedures, available at: 

http://www.dla.mil/j-6/dlmso/elibrary/Manuals/DLMS/default.asp

4. REQUESTED CHANGE: Yellow highlighting identifies revisions subsequent to staffing. 

a. Description of Change: This change establishes alternative procedures for 

Materiel Obligation Validation (MOV) requirements to support Fleet Readiness Centers (FRC) 

and Navy Shipyards (NSY) under a DLA industrial activity (IA) support agreement. The change 

also establishes a new DoD Source of Supply (SoS) requirement applicable to the determination 

of the MOV recipient under MILSTRIP. Comment resolution/concurrence is provided at 

Enclosure 2.

b. Background: As a result of the 2005 BRAC decision, Retail Supply, Storage and 

Distribution (SS&D) functions and associated infrastructure supporting Service industrial 

maintenance sites will transfer to DLA. In addition to the SS&D workload transfer, the Navy 

personnel performing the MOV functions also transferred to DLA and will perform these 

functions. These individuals will have access to the maintenance planning systems [NSY 

Material Access Technology (MAT) application and the FRC Material Resource Planning 

(MRP) II application] and DLA systems [Enterprise Business System (EBS) and Distribution 

Standard System (DSS)] and will use these systems to validate outstanding requisitions. DLA 

will not send MOV transactions to the Navy IA. Navy IAs will not have capability to receive 

MOV transactions sent by other Sources of Supply (SoSs). The alternative MOV process will 

be used to accomplish the DoD requirement for MOV. 

c. Policy: On February 16, 2010, the Assistant Deputy Under Secretary of Defense, 

Logistics and Materiel Readiness, Supply Chain Integration, ADUSD(L&MR)SCI, authorized 

DLA and Navy to proceed with development of alternative MOV procedures. 
ADC 369, Attachment 

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ADUSD(L&MR)SCI specifically stated that the alternative procedures must be documented and 

include repeatable regular review in the spirit of the Congressional Inventory Management plan 

to reduce the risk of excess on-order assets. 

d. Detailed Procedures Applicable to Navy IMSP Support: Refer to the alternative 

MOV transaction flow diagram at Enclosure 1. 

(1) General: MAT and MRPII will not develop systemic capability to perform 

MILSTRIP MOV functions as a result of the 2005 BRAC decision. Currently these functions 

are done by Navy, U2 system and DLA has accepted responsibility for this function under IMSP. 

There are three NSY/FRC requisitioning scenarios to which alternative MOV procedures apply: 

 Scenario 1: Unfilled orders associated with requisitions submitted to 

DLA for DLA-managed/procured materiel. 

 Scenario 2: Unfilled orders associated with DLA-funded requisitions 

submitted on behalf of the NSY/FRC to another SoS. 

 Scenario 3: Unfilled orders associated with Navy-funded requisitions 

submitted directly to a SoS other than DLA (applicable to Depot Level Repairables (DLR), Navy 

program-managed material and nuclear consumable support materiel. 

(2) Scenario 1: DLA Unfilled Requisitions: DLA will not generate MOV 

transactions to the Navy IA for backorders in EBS. As an alternative to sending MOV 

transactions, the DLA forward personnel will monitor, research, and validate the Navy IA 

unfilled orders utilizing weekly DLA EBS Unfilled Orders Reports, Navy and DLA systems, and 

through direct interaction with FRC and NSY personnel as required. The EBS Unfilled Orders 

Report is updated on a weekly basis. The DLA forward personnel will monitor aged unfilled 

orders and coordinate on 30 day increments (e.g., 30 days, 60 days, 90 days) with Navy 

FRC/NSY engineers to validate the requisition requirements. Cancellation of unfilled orders will 

be initiated in MAT or MRPII by either the Navy engineer or by DLA forward personnel. This 

manual review and coordination will ensure that invalid requisition requirements will be 

identified and cancelled in a timely manner. Customer requisitions cancelled via this alternate 

MOV review will generate BQ supply status, “Cancelled. Results from cancellation request 

from requisitioner, consignee, manager, or other authorized activity ....” DLA will not generate 

MOV transactions for the following IAs: 

 FRC EAST Cherry Point N65923/S7N008 

 FRC SE, Jacksonville N65886/S7N009 

 FRC SW San Diego N65888/S7N010 

 PHNSY & IMF Pearl Harbor N32253 

 PNSY Portsmouth NH N39040 

 NNSY Norfolk N42158 

 PSNS & IMF Puget Sound N4523A 

(3) Scenario 2: Other SoS Unfilled DLA-Funded Requisitions: 
ADC 369, Attachment 

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(a) When DLA receives requisition alerts/funded requisitions from FRCs/NSYs 

for non-DLA managed NSNs, DLA will in-turn submit DLA-funded outbound requisitions to the 

SoS to obtain the required materials.1, 2 Therefore, DLA will now receive MOV transactions 

(DLMS 517M/AN_) from other SoSs. Scenario 2 applies to requisitioner DoDAACs: 

 N01DLA = FRC EAST Cherry Point 

 N02DLA = FRC SOUTHEAST Jacksonville 

 N03DLA = FRC SOUTHWEST San Diego 

 N04DLA = NNSY Norfolk 

 N05DLA = PSNS&IMF Puget Sound 

 N06DLA = PHNSY&IMF Pearl Harbor 

 N07DLA = PNSY Portsmouth NH 

(b) Transactions: When the MOV transaction is received by EBS, it will be 

matched to the associated sales order and EBS will respond appropriately with an outbound 

MOV transaction (DLMS 517M/AP_) per business rules: 

(1) The quantity field of the AP_ response will indicate the quantity still 

open on the requisition. If the EBS sales order record reflects no open unfilled quantity the 

quantity field will be zero on the outbound AP_. 

(2) Inbound AN_ transactions with a quantified amount matching the 

associated sales order record amount. If the quantity matches, then EBS will systematically 

create the AP_ response with the appropriate quantity. 

(3) Inbound AN_ transactions with a quantity greater than or less than the 

quantity specified on the associated orders. EBS will suspend the AN_ transaction for manual 

review, once reviewed the AN_ will be reprocessed with the correct quantity and generate an 

AP_ response. 

(4) Associated requisition record cannot be found for an inbound AN_ 

transaction. EBS will suspend the AN_ transaction for manual review, once reviewed the AN_ 

will be reprocessed with the correct quantity and generate an AP_ response. 

(5) Inbound AN_ transactions that do not have a matching suffix with the 

associated order in EBS, will not trigger an AP_ transaction to send back the appropriate 

response immediately. EBS will suspend the AN_ transaction for manual review, once reviewed 

the AN_ will be reprocessed with the correct quantity and generate an AP_ response. 

(6) If DLA receives Supply Status (870S/AE_ ) with Supply Status Code 

BS indicating a requisition was cancelled due the requisitioning activity’s failure to respond to an 

 

1

 Refer to PDC 366A, DLMS Revisions Supporting the Requisition Alert Transaction and Materiel Identification 

associated with DLA Support to Navy NSYs and FRCs under BRAC SS&D/IMSP: The requisition alert transaction 

allows Navy IA sites to notify DLA of their requirements in advance of the funded requisition, thereby allowing 

DLA to procure and position materiel appropriately to support prompt order fulfillment. 

2

 Refer to PDC 385, Procedures for use of Navy DODAACs assigned to DLA for use on DLA Requisitions to 

Military Service/GSA Sources of Supply in Support of Navy Industrial Customers under BRAC SS&D/IMSP. 
ADC 369, Attachment 

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MOV request, DLA personnel will determine the cause of the non-response to avoid future 

occurrences. Additionally, DLA personnel will take action on the BS status using the following 

business rules: 

1. If a supply status transaction is received and matches, or does not 

match a DLA-funded requisition to other services, the status will be suspended and an exception 

report is generated for manual review. After manual review by the DLA forward personnel, an 

MOV Requisition Re-instatement Request (517M/APR) may be generated requesting reinstatement of the cancelled requisition. Manual review must be accomplished within a 60 day 

timeframe in order to request re-instatement. 

2. If it is determined by the NSY/FRC contacts that this transaction 

represents a valid requirement and there is no match to a sales order in EBS, DLA forward 

personnel will manually create the appropriate DLA-funded requisition to the other SoS. 

3. If it is determined that the DLA requisition does not need to be 

reinstated, action will be taken to release the flagged AE_ transaction if a requisition exists. If 

no record is found the status may be archived in EBS. No APR transaction will be created. 

Any open records associated with the requisition must be closed within DLA and the Navy. 

(c) MOV Report: The alternate MOV process for validation of FRC/NSY 

requisitions submitted by DLA to another SoS will be accomplished through the use of an MOV 

Report. The report will list the AN_ transactions received from the non-DLA source of supply 

and the corresponding AP_ transactions showing the response EBS sent back to the source of 

supply, and any open requisition alert document number or funded requisition document number 

for the same material on the AN_. The DLA forward person will manually review this report to 

determine if any action needs to be done to cancel any quantity associated with open back orders. 

This process is a similar to the method of validation used at the FRCs/NSYs today. 

(4) Scenario 3: Other SoS Unfilled Navy-funded Requisitions (DLR, Navy

Program Managed Material and Nuclear Consumable Support Materiel): 

(a) Alternative MOV procedures for Navy-funded requisitions apply only to 

the BRAC Navy Industrial Sites. DLA will be responsible for processing MOV transactions and 

following up with other Sources of Supply on behalf of the Navy. In order to do so, DLA must 

receive an image/copy of the requisition, subsequent supply status and materiel receipt 

acknowledgement transactions.3 These transactions will be used to create a “read only sales 

order record” in EBS. Actual validation of the Other Service Navy Funded requisitions remains 

a Navy FRC and NSY responsibility and will be facilitated by this process. 

(b) DAAS will re-route all MOV transactions (DLMS 517M, MILSTRIP 

AN_ ) to EBS that are applicable to FRC/NSY requisitions. The re-routing of MOV transactions 

will be based on type of transaction (517M, AN_ ) and the requisitioning DoDAAC equal to 

NSY and FRC sites: 

 

3

 Refer to PDC 404, Transaction Copies Required for DLA Support of Navy BRAC SS&D/IMSP Depot Level 

Reparables (DLRs), Navy Program-Managed Materiel, and Nuclear Consumable Support Materiel 
ADC 369, Attachment 

Page 5 

 FRC EAST Cherry Point N65923 

 FRC SE, Jacksonville N65886 

 FRC SW San Diego N65888 

 PHNSY & IMF Pearl Harbor N32253 

 PNSY Portsmouth NH N39040 

 NNSY Norfolk N42158 

 PSNS & IMF Puget Sound N4523A 

(c) Transactions: When the MOV transaction is received by EBS, it will be 

matched to the associated “read only sales order” (based upon the image/copy of Navy-funded 

requisition and subsequent transactions) and EBS will respond appropriately on behalf of the 

NSY/FRC with an outbound MOV transaction (DLMS 517M/AP_) per business rules: 

(1) Inbound AN_ transactions with a quantified amount matching the 

associated sales order’s amount. If the quantity matches, then EBS will systematically create the 

AP_ response with the appropriate quantity. 

(2) Inbound AN_ transactions with a quantity greater than or less than the 

quantity specified on the associated orders. EBS will suspend the AN_ transaction for manual 

review, once reviewed the AN_ will be reprocessed with the correct quantity and generate an 

AP_ response. 

(3) Associated requisition cannot be found for an inbound AN_ 

Transaction. EBS will suspend the AN_ transaction for manual review, once reviewed the AN_ 

will be reprocessed with the correct quantity and generate an AP_ response.

(4) Inbound AN_ transactions that do not have a matching suffix with the 

associated order in EBS, will not trigger an AP_ transaction to send back the appropriate 

response immediately. EBS will suspend the AN_ transaction for manual review, once reviewed 

the AN_ will be reprocessed with the correct quantity and generate an AP_ response. 

(5) If DLA receives Supply Status (870S/AE_ ) with Supply Status Code 

BS indicating a Navy-funded requisition submitted directly to the other Component SoS was 

cancelled due the requisitioning activity’s failure to respond to an MOV request, DLA personnel 

will determine the cause of the non-response to avoid future occurrences. Additionally, DLA 

personnel will take action on the BS status using the following business rules: 

1. If a status transaction with Supply Status Code BS, is received 

and matches, or does not match a “read only sales order” in EBS, the status will be suspended 

and an exception report is generated for manual review. Manual review must be accomplished 

within a 60 day timeframe to request re-instatement. After manual review by the DLA forward 

personnel, an APR transaction may be generated requesting re-instatement. 

2. If it is determined by the NSY/FRC contacts that this is a valid 

requirement and there is no match to a sales order in EBS, DLA forward personnel manually 

create an ‘Other Service Navy Funded’ read-only sales order in EBS. All required information to 

include JO/KO for NSY requisitions must be populated in the created sales order. 
ADC 369, Attachment 

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3. If it is determined that the DLR requisition does not need to be 

reinstated, action will be taken to release the flagged AE_ transaction if a requisition exists. If 

no record is found the status may be archived in EBS. No APR transaction will be created. 

Any open records associated with the requisition must be closed within DLA and the Navy. 

(d) MOV Report: The alternate MOV process for validation of FRC/NSY 

for DLR, program managed and nuclear consumable support material requisitions will be 

accomplished through the use of an MOV Report (as in scenario 2). The report will list the AN_ 

transactions received from the non-DLA source of supply and the corresponding AP_ 

transactions showing the response EBS sent back to the source of supply, and any open funded 

requisition document number for the same material on the AN_. The DLA forward person will 

manually review this report to determine if any action needs to be done to cancel any quantity 

associated with open back orders. This process is a similar to the method of validation used at 

the FRCs/NSYs today 

e. Detailed Procedures Applicable to Source of Supply Determination of the 

Recipient of Validation Requests: 

 a. MILSTRIP currently requires MOV requests to be distributed to the activity 

designated by the Media and Status (M&S) Code in the requisition unless a deviation is covered 

by listed exceptions. Under this change, an additional exception is established for requisitions 

containing Distribution Code 54 requiring these MOV requests to be directed to DLA regardless 

of the M&S. 

b. Revise DoD 4000.25-1-M, MILSTRIP Chapter 7, Validation of Materiel 

Obligation, and the corresponding DLMS procedures as shown in Enclosure 2. 

c. Deferred implementation is authorized. DoD Components are encouraged to 

adopt this exception rule under modernization. 

f. Alternatives: None 

5. REASON FOR CHANGE: In accordance with BRAC law, DLA will assume 

responsibility for the retail functions for the FRC/NSY IA. By agreement with the Navy, DLA 

will support all MOV processing involving FRC/NSY IA requirements. 

6. ADVANTAGES AND DISADVANTAGES: 

a. Advantages: Fulfils Navy requirements. 

b. Disadvantages: Complex procedures involving multiple scenarios and additional 

support personnel. 

7. IMPACT: 

a. DAASC: Above procedures require DAAS programming to divert MOV 

 

4

 Refer to ADC 368, Procedures and Assignment of Navy DODAACs to DLA for Use on DLA Requisitions to 

Military Service/GSA Sources of Supply (SoSs) in Support of Navy IAs under BRAC SS&D/IMSP (Staffed as PDC 

385) for establishment of DLA Distribution Code 5. 
ADC 369, Attachment 

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transactions directed to the NSY/FRC IA sites and forward them to DLA. The DAAS re-routing 

requirement has been coordinated with DAASC. 

b. DoD Components: This change includes a new exception rule for distribution of 

MOV requests by the source of supply. This requirement should be adopted when feasible; 

deferred implementation is authorized. DAAS procedures include a work-around pending 

implementation. It is recognized that full implementation of the new distribution rule is a long 

term goal. 

c. Publications: The DLMS manual procedures are to be published separately. The 

overarching supply chain material management regulations may be updated to recognize the use 

of alternative procedures. 

d. DLMS Data: There are no new data requirements associated with this change. 

e. Required Implementation Date: Navy BRAC requirements are to be 

implemented December 2010. Procedures related to SoS distribution of MOV requests based 

upon Distribution Code 5 may be deferred based upon most feasible timeline. 
ADC 369, Enclosure 1 

Page 1 

Enclosure 1, Alternative MOV Transaction Flow Diagram 

1. Service passes 517M (AN_) transaction to EBS via DAASC requesting validation on open 

DLA-funded backorders. -> 1a 

1a. DAASC passes 517M (AN_) transaction to EBS. -> 1b 

1b. EBS processes and creates 517M (AP_). -> 1c 

1c. EBS passes 517M (AP_) MOV response to DAASC. -> 1d 

1d. DAASC passes 517M (AP_) transaction to Service ICP. -> 1e 

1e. Service ICP processes the 517M (AP_). -> End 

Same process repeated for open Navy-funded DLR, navy program-managed material and nuclear 

consumable support materiel unfilled orders, except 517M (AN_) transactions are diverted at 

DAASC to EBS. 
ADC 369, Enclosure 2 

Page 1 

Enclosure 2, MILSTRIP Revision 

Revise text as follows: 

C7.1.5. DETERMINATION OF RECIPIENT OF VALIDATION REQUESTS 

 C7.1.5.1. MOV requests will be transmitted to the activities determined under 

the following rules. 

 C7.1.5.1.1. The activity designated by the M&S unless covered by the 

exceptions listed below. 

 C7.1.5.1.2. When the M&S is 0, transmit to the activity designated by an 

alphabetic character or numeric 6, 7, or 8 in rp 54. 

 C7.1.5.1.3. When distribution code (rp 54) contains a numeric other than 5,

6, 7, or 8, or is blank, and M&S is 0, transmit requests to the requisitioner (rp 30-35). 

 C7.1.5.1.4. When Distribution Code 5 is identified, transmit requests to 

the DLA (DoDAAC SL4701) regardless of M&S.1

 C7.1.5.1.5. When the M&S is F, G, P, or Z, transmit requests to the 

requisitioner (rp 30-35). 

 

1 Refer to ADC 369. Deferred implementation authorized.
ADC 369, Enclosure 3 

Page 1 

Enclosure 3, DLMS Change Concurrence/Comment Resolution 

 Submitter Response Response 

1. DLA Concur 

2. Navy Concur 

3. Air Force Concur 

4. Marine Corps Concur 

5. DSCA Navy FMS is exempt from MOV processing. Navy wants 

to make sure that subject PDC is not affecting their 

exemption. 

No impact on FMS 

requisitions/MOV. 

6. DPAP No impact on Item Unique Identification (IUID) or 

Government Furnished Property initiatives. 

7. ADUSD(L&MR)SCI See Reference 3B. 

8. DLA J-62, Chief, 

Spiral II Integration 

Office (CSIO) 

 

9. DLMSO The Navy has agreed to use the new Distribution Code 5 

for the Navy DLRs, Navy Program-Managed Materiel, 

and Nuclear Consumable Support Materiel requisitions, 

thereby eliminating the need for DAAS COG-based copy 

DAAS rules. However, the new distribution code cannot 

support the MOV business rules under BRAC at this time. 

The distribution code will always get status, but will only 

get MOV if the M&S code is '0'. Since the Navy wants the 

status on these they will not be using M&S code '0' and 

therefore they will get the MOV unless we have an 

additional edit at DAAS for the MOV transactions to be 

routed to EBS. 

On requisition DLA sends to other Services for forward 

sites, the M&S code '0' and distribution code '5' work 

since the Navy does not get status directly on their 

requisition alert. 

The idea of the Navy using distribution code '5' on DLR 

orders so DLA gets status also works; then we only 

needing a special DAAS rule for MOV. 

 New procedures included for 

deferred implementation so as not 

to negatively impact other DoD 

Components. 
ADC 369, Enclosure 3 

Page 2 

Longer term we should add distribution code '5' to the 

MOV recipient logic in Chapter 7 as one of the exceptions 

to using the M&S code to determine the recipient. The 

rule would be when distribution code ''5', provide MOV to 

the distribution code regardless of the M&S code.