*DLM 4000.25, Volume 2, January 22, 2024*

*Change 17*

**C17. CHAPTER 17**

**SUPPLY DISCREPANCY REPORTING[footnoteRef:2]** [2:  Chapter 17 supersedes and replaces Joint Publication DLAI 4140.55/AR 735-11-2/SECNAVINST 4355.18A/AFJMAN 23-215, Reporting of Supply Discrepancies, August 6, 2001.] 

C17.1  GENERAL

	C17.1.1.  Purpose.   

		C17.1.1.1.  This chapter establishes information requirements for reporting and processing of discrepancy reports under the supply discrepancy reporting (SDR) Program.  The SDR is a tool used to report shipping or packaging discrepancies attributable to the responsibility of the shipper, (including U.S. Government sources and contractors/manufacturers/vendors) and to provide appropriate responses and resolution, including financial action when appropriate.  The purpose of the SDR exchange is to determine the cause of such discrepancies, effect corrective action, and prevent recurrence.

		C17.1.1.2.  There are additional processing procedures that must be applied for items identified as serially managed materiel requiring owner visibility at DLA Distribution Centers.  Refer to Chapter 30 for overview.  See paragraph C17.3.8. for detailed SDR procedures.

	C17.1.2.  Component SDR Systems.  The intent of the SDR program is to support reporting of discrepancies identified during receipt processing without requiring separate action by receiving or support personnel to manually re-enter receipt information for the creation of the SDR in a separate, stand-alone SDR system.  To facilitate the preparation of complete and accurate SDRs, Components must design supply systems to report supply discrepancies as an integral and seamless part of the receiving process.

	C17.1.3.  Standard SDR Transactions.  Under DLMS, the SDR will be considered a common logistics information exchange to be integrated with transaction processing through DAAS.  The DoD approved standard for electronic transmission of SDR transactions is prescribed by the DLMS Implementation Convention (IC) using an ASC X12-compliant variable-length transaction format.  Multiple DLMS ICs are provided to support different SDR related functions.  The DLMS 842A/W, Standard SDR, will be employed for transactional exchange of initial reports and associated follow-on actions.  The DLMS 842A/R, DoD SDR Reply, will be employed for transactional exchange of the SDR reply by the action point.  The DLMS ICs for SDRs are available via the Implementation Convention/DLMS IC page of the Defense Enterprise Data Standards Office (DEDSO) Management Standards Website.

	C17.1.4.  DoD WebSDR.  The DoD WebSDR supports DLMS implementation via a DAAS-maintained application, that enables SDR transaction exchange; provides a web-based entry method to assist users who are not supported by a Component DLMS-compliant SDR application; and provides visibility of SDRs for research and trend analysis via management report/query capability.  The term “DoD WebSDR” (or “WebSDR”) refers to both the overall business process and supporting automation, including both direct web input and transaction exchange.

		C17.1.4.1.  The DoD WebSDR application automates the Standard Form (SF) 364 SDR paper form facilitating the DoD standard transactional exchange described above.  It brings the SDR into an integrated transactional environment, supporting both direct input (under Component business rules) and transaction exchange originating within Component applications.  The WebSDR system facilitates communication and interoperability between U.S. Military and Federal Agencies and the International Logistics Control Office (ILCO) on behalf of the Security Assistance customer.  It controls routing of web submissions and logistics transactions according to business rules.  It supports information exchange between the customer, the Inventory Control Point (ICP)/Integrated Material Manager (IMM), the shipper, and other interested parties.  It encompasses new report submission, correction/modification, cancellation, follow-up, requests for reconsideration, and SDR replies (including interim responses, additional information requests, and resolution responses), in addition to the capture of report and response management statistics.  

		C17.1.4.2.  	DoD WebSDR will provide an automated process for tracking SDR response information.  Data collected will enable the Department of Defense to identify trends, establish volume and dollar values of SDRs, bring management attention to problems with shipping activities as necessary, and improve the requisitioning and distribution process within logistics operations.  This provides an effective means to report, resolve, and measure discrepancies related to pipeline performance.  Ultimately, the goal is to incorporate SDR metrics into other logistics response measurements in support of perfect order fulfillment. 

		C17.1.4.3.  The DoD WebSDR process reduces manual SDR form creation and eliminates dual entry where multiple Component systems are used.  The DoD requirement is that paper submission of SDRs and non-DLMS compliant SDR applications will be phased out with migration to DLMS.  By exception, until electronic reporting under DLMS is universally available, SDRs and associated responses may be reported via hard-copy SF 364, e-mail, through customer service help lines (e.g. the DLA Customer Interaction Center, dlacontactcenter@dla.mil) 1-877-352-2255 (1- 877- DLA-CALL)), or any other manner acceptable to the submitter and recipient.  All manner of reporting must meet the criteria described in this publication.  

		C17.1.4.4.  	Access for DoD WebSDR input and management reports requires submission of a System Access Request (SAR) available from the DAAS home page.  DoD WebSDR training is available on the Defense Enterprise Data Standards Office Website.

		C17.1.4.5.  DoD Components with an established interface with DoD WebSDR will designate primary and alternate representatives for the Component SDR application to DAAS.  These representatives will be notified via e-mail when transactions fail during WebSDR processing due to failure to meet minimum format/content requirements for processing.  Components will provide name, telephone, and e-mail address to the DoD SDR System Administrator and DAAS WebSDR Program Manager.

	C17.1.5.  DLMS Process Review Committee (PRC).  The DoD Component members of the SDR PRC (U.S. and Security Assistance) are identified on the SDR PRC webpage of the DEDSO Website. The SDR PRC is responsible for the development, expansion, improvement, maintenance, and administration of supply discrepancy related procedures and SDR transaction processing under the DLMS.

	C17.1.6.  Applicability.  These SDR procedures are applicable to the DoD Components, participating Federal Agencies, and other external organization elements as defined in Volume 1, Chapter 1.  This includes shipments made from working capital funds (WCF) and non-WCF funded activities, Security Assistance shipments made under the International Logistics Program, and shipments received from commercial sources.  By agreement, contractors receiving U.S. Government furnished property (GFP) under MILSTRIP procedures will comply with U.S. Government SDR procedures provided herein.  Discrepancies related to GFP that do not meet minimum dollar value criteria in paragraph C17.3.2., may be reported for information only, as a means of notifying the shipper or ICP/IMM of the discrepant condition.

	C17.1.7.  Exclusions.  The following types of discrepancies are excluded from the provisions of this publication:

		C17.1.7.1.  Discrepancies found while materiel is in storage.  Two exceptions to this exclusion are: 1) short shipment and wrong item discrepancies discovered upon opening a sealed vendor pack may be reported by U.S. Government customers only, and 2) materiel in storage in a sealed vendor’s pack that is later discovered to have been shipped with discrepancies relating to item unique identification (IUID) (serial number or unique item identification (UII)).  These may be reported as SDRs and are not subject to submission time standards specified in this chapter.  Refer to IUID discrepancies below.  

		C17.1.7.2.  Discrepancies involving local deliveries to, or returns from, internal or satellite activities.  This exclusion is not applicable to on-site DLA Distribution Center shipments.  

		C17.1.7.3.  Discrepancies involving shipments of privately-owned vehicles.

		C17.1.7.4.  Transportation discrepancies covered by DTR 4500.9-R, Defense Transportation Regulation, Part II, Cargo Movement, Chapter 210, Transportation Discrepancy Report (TDR), except as specifically permitted under Security Assistance procedures in this chapter.

		C17.1.7.5.  Product quality deficiencies to the extent covered by Joint DLAR 4155.24 /AR 702-7/SECNAVINST 4855.5B/ AFR 74-6l, except as specifically permitted under Security Assistance procedures in this chapter.

		C17.1.7.6.  Discrepancies involving personal property shipments.

		C17.1.7.7.  Billing discrepancies, except as specifically permitted under Security Assistance procedures in this chapter.  Price verifications and/or challenges are not reportable on an SDR.

	C17.1.8.  Types of Discrepancies

		C17.1.8.1.  Supply Discrepancy.  Supply discrepancy is a general term used to describe any variation in goods received from data shown on any authorized shipping document that is not the result of a transportation discrepancy or product quality deficiency.  Supply discrepancies include both shipping and packaging discrepancies.

			C17.1.8.1.1.  Shipping (Item) Discrepancy.  A shipping discrepancy is any variation in quantity or condition of goods received from what is shown on the authorized shipping documents, to include incorrect or misdirected materiel, receipts of cancelled requirements, and/or improper or inadequate technical or supply/shipping documentation, that is not the result of a transportation error or product quality deficiency.  Discrepancies involving IUID are reportable under shipping discrepancy criteria.

			C17.1.8.1.2.  Packaging Discrepancy.  A packaging discrepancy is any unsatisfactory condition due to improper or inadequate packaging (including preservation, packing, marking, or utilization) that causes the item, shipment, or package to become vulnerable to loss, delay, damage, or unnecessary expense to the U. S. Government, such as excessive packing.  Discrepancies involving passive radio frequency identification (pRFID) are reportable under packaging discrepancy criteria.  If packaging discrepancies are applicable to hazardous materiel, a hazardous materiel discrepancy code must be used; this code may be used in conjunction with other packaging discrepancy codes to better identify the nature of the discrepancy. 

		C17.1.8.2.  Transportation Discrepancy.  A transportation discrepancy is any variation in quantity or condition of materiel received from that shown in the piece count by type of pack on the bill of lading or governing transportation document and other deficiencies in transportation when discrepant materiel is not involved.  These discrepancies involve motor, air, water, rail, and small package commercial carriers (excludes USPS shipments that are lost or damaged).  Follow TDR policy found in the Defense Transportation Regulation, Part II, Cargo Movement (DTR 4500.9-R).  TDRs are entered and distributed under the Electronic Transportation Acquisition (ETA) system at https://eta.sddc.army.mil/.

		C17.1.8.3.  Product Quality Deficiency.  A product quality deficiency is a defective or non-conforming condition that limits or prohibits the item from fulfilling its intended purpose.  These include deficiencies in design, specification, materiel, manufacturing, and workmanship.  These are reportable on an SDR only by a Security Assistance customer.  All others follow PQDR policy found in DLAR 4155.24/AR 702-7/SECNAVINST 4855.5B, AFR 74-6 Product Quality Deficiency Report Program.  Quality deficiencies reported via SDR will be investigated within the ICP/IMM under procedures associated with Product Quality Deficiency Reports.  PQDR resolution provided via SDR reply to the submitting ILCO will identify the associated PQDR record control number (RCN) as a cross-reference to the PQDR identification used by the ICP/IMM.

		C17.1.8.4.  Billing Discrepancy.  Billing discrepancies are those discrepancies related to duplicate or multiple billing per individual shipment, or a single billing with no ship line, which are reportable to the ILCO on an SDR by Security Assistance customers only.  Within U.S. Government channels, the billing discrepancy will be processed in accordance with MILSBILLS procedures in DLM 4000.25, Volume 4, Finance, Chapter 4.  This means the ILCO will convert the discrepancy to the appropriate DLMS 812R, Request for Adjustment of Non-Fuel Billing, MILSBILLS DIC FAE with appropriate Billing Advice Code, accessible from the DEDSO Website.

		C17.1.8.5.  Financial Discrepancies.  Financial discrepancies are those discrepancies related to administrative and accessorial charges.  The ILCO, ICP/IMM, or GSA will forward to Defense Finance & Accounting Service Indianapolis (DFAS-IN), Security Assistance Accounting Customer Accounting Branch for processing all financial discrepancies received directly from a Security Assistance purchaser.  Responses to these will be returned to the ILCO.  Only financial discrepancies related to Security Assistance purchases are reportable on an SDR.

		C17.1.8.6.  Military Personal Property Shipments.  This category includes both shipping and packaging discrepancies associated with the movement/storage of household goods under the DoD Personal Property Shipment and Storage Program.  Any discrepancies related to personal property shipment will be referred to Military Surface Deployment and Distribution Command (SDDC) Personal Property at: USARMY.Scott.SDDC.mbx.omb-for-pp-ops@mail.mil  or USARMY.Scott.SDDC.mbx-omb-for-pp-quality@mail.mil.

C17.2.  POLICY

	C17.2.1.  Use of SDR.  The DoD Components will use the SDR to report shipping or packaging discrepancies attributable to the responsibility of the shipper (including contractors/manufacturers or vendors) and to provide appropriate responses.  The purposes of this exchange are to determine the cause of such discrepancies, effect corrective action, and prevent recurrence.

	C17.2.2.  Operations Security (OPSEC) Applicability.  Due to an identified OPSEC requirement, SDRs have been designated as controlled unclassified information (CUI) by the DLA Headquarters, and must be identified as “For Official Use Only (FOUO).”  Handling and electronic transmission of SDRs must comply with DoD rules for this level of sensitive unclassified information, to include proper labeling and protection.  DLA has further directed encryption of all SDR e-mail transmissions.  This requirement has been levied on the DoD WebSDR and impacts all participating DoD Components.

		C17.2.2.1.  In order to receive encrypted e-mail, individual and group e-mail accounts must have their associated e-mail certificate registered at DAAS.  SDRs directed to e-mail accounts that do not have a registered certificate will be significantly abridged to display minimal information, thereby allowing the SDR to be transmitted in an unprotected environment.

		C17.2.2.2.  All action activities using e-mail SDRs must register their certificate, so that all information is available for SDR resolution.  For low volume customers relying on e-mail SDRs, especially those supported by third party direct WebSDR input, registration is encouraged, but not required.  These users will receive an abridged SDR reply that will provide disposition instructions and financial action, without the accompanying shipment detail.

		C17.2.2.3.  Unencrypted e-mails with minimal shipment information will include instructions for certificate registration and access to DoD WebSDR.  Full WebSDR data content will be available to authorized users of DoD WebSDR.  Refer to DAAS SDR processing for further details in the abridged SDR procedures and content.

		C17.2.2.4.  SDR management reports will be distributed only via e-mail if the corresponding certificate has been signed.

	C17.2.3.  Documentation Maintenance.  The SF364 (or the electronic version DLMS 842A/W) and the action activity’s response (or electronic DLMS 842A/R) will be used to support adjustments to inventory and financial accounting records and will be maintained as required.

	C17.2.4.  Receivers of discrepant materiel will use the SDR to:

		C17.2.4.1.  Report shipping discrepancies, packaging discrepancies, and discrepancies or non-receipt of United States Postal Service (USPS) shipments.

		C17.2.4.2.  Modify, cancel, or follow-up on a previously submitted report.

		C17.2.4.3.  Request reconsideration of a response.

		C17.2.4.4.  Security Assistance submitters may use SDRs to contest the decision stated in a reconsideration response.

		C17.2.4.5.  Provide information copies of the report to interested parties.

	C17.2.5.  Responsible action activities as identified in this chapter will use SDRs to:

		C17.2.5.1.  Notify the report initiator of interim status or resolution of the SDR.

		C17.2.5.2.  Request additional information on incomplete submissions.

		C17.2.5.3.  Reroute/forward the SDR to the appropriate party.

		C17.2.5.4.  Forward recommendations to the source of supply or other designated activity for determination of financial resolution or materiel disposition.

		C17.2.5.5.  Provide information copies of the response to interested parties.

	C17.2.6.  Non-Receipt of Shipments.  Non-receipts, shipped by traceable means such as Government or Commercial Bill of Lading, will not be reported using the SDR, unless the non-receipt is for other than a transportation discrepancy, or for damaged items shipped via modes other than USPS.  SDRs will not be submitted for non-receipt of shipments made by traceable USPS registered, insured, or certified mail until appropriate tracer action has been completed.  If tracer action results confirm non-receipt, then submit an SDR and include results of the tracer action.  Customers without automated access to in transit visibility information should contact the ICP/storage activity to determine which shipments are traceable.  (Not applicable to Security Assistance customers.)

	C17.2.7.  Interface with Other Materiel Management Functions.  Under DLMS, discrepancy processing may be used to trigger other standard materiel management functions.

		C17.2.7.1.  IMMs will use the SDR response to establish a due-in record for return of discrepant materiel under Chapter 12 of this volume.  ICPs/IMMs will use the prepositioned materiel receipt (PMR) to advise storage activities to which a return is directed using MILSTRAP procedures for the DLMS 527D, Due-In/Advance Receipt/Due Verification.  Refer to paragraph C11.19. of this volume, for additional guidance.

		C17.2.7.2.  DLMS capable activities returning discrepant materiel will prepare shipment status for materiel returns using the DLMS 856R, Shipment Status Materiel Returns, under paragraph C11.19.

	C17.2.8.  Discrepancy Reports Relating to Interchangeability/Substitutability (I&S) or Quantity Unit Pack (QUP) Issues.  Incorrect item SDRs will not be submitted for authorized substitution.  The DoD Components and participating Agencies (e.g., GSA), will follow the policy of automatic shipment of an item, unless the requisition contains an appropriate requisition advice code in accordance with Chapter 4, limiting the request to a specific item.  Therefore, incorrect item SDRs will not be submitted for authorized substitutions.  Similarly, quantities may be adjusted to the quantity unit pack, unless restricted by the appropriate advice code in the customer requisition.  Such adjustments resulting in quantity variance are not reportable as discrepant.

	C17.2.9.  Responsibility for Costs Incurred Due to Discrepancies in Returned Materiel.  U.S. Government activities returning materiel are cautioned that the returning activity may be held responsible for costs incurred by the receiving activity when discrepancies are reported and validated in accordance with this publication.  This includes returns made in violation of prescribed procedures, returns exhibiting packaging discrepancies, and returns of reparable items unaccompanied by required technical data.  Recoupment action by the ICP against the initiator may include all cost reimbursable actions performed by the receiving activity such as repackaging, marking, and disposal.

	C17.2.10.  Multiple Requisitions.  Multiple requisitions received under a consolidated shipment cannot be combined for discrepancy reporting purposes.  Individual SDRs must be submitted for each discrepant requisition received in the shipment.  An exception to this is authorized for consolidation and containerization points (CCP)/transshippers.  Refer to guidance for CCP/transshipper-originated SDRs below.  When both item discrepancies and packaging discrepancies are noted on the same shipment, both types of discrepancy will be included on the same report.

C17.3.  PROCEDURES

	C17.3.1.  Original Submission of SDR

		C17.3.1.1.  Discrepancy Identification.  The receiving activity, or transshipment activity noting packaging or documentation deficiencies on shipments in transit, will prepare an SDR when one or more of the conditions described under reporting criteria exist.  

			C17.3.1.1.1.  Pending improved processing techniques, it is required that DLMS SDRs identify the type of SDR using the Discrepancy Report Document Type Code (Appendix 7.28).  Within the context of SDR processing, this data element is known as the SDR Document Type Code.  This is a one position code used to describe the type of discrepant report and the type of shipment involved, (e.g., depot shipment to the customer = Type 7; direct vendor shipment to the customer = Type 6).

			C17.3.1.1.2.  Identify the discrepancy using the Shipping, Packaging, and Storage Discrepancy Code (Appendix 7.28).  Within the context of SDRs this data element is known as the SDR Discrepancy Code.  Use up to three different codes to describe the discrepancy on SDRs. (Distribution Center-originated SDRs and their equivalents prepared via WebSDR may only use two discrepancy codes).  Packaging discrepancies must be identified by four-character packaging discrepancy codes and applicable remarks.[footnoteRef:3]  If no code exists to adequately describe a shipping/item discrepancy, select Code Z1 and use a clear-text description.  The goal of the initial SDR submission is to provide as much relevant information as possible to the action activity, including mandatory clarifying remarks to supplement discrepancy codes, so that they can take timely action to correct the problem and provide a timely response and disposition to the customer. [3:  Applicable for new submissions after September 1, 2013.  Refer to ADC 1059.] 

			C17.3.1.1.3.  New original (Transaction Set Purpose Code 00) SDR must have narrative remarks (excluding new original SDRs with Action Codes 1H or 3B) citing the description of the deficiency.  If narrative remarks are blank, WebSDR will generate an e-mail to the component SDR primary/alternate, and system POCs stating, “New SDR submissions require narrative comments describing a description of the discrepancy.  Please submit a new SDR with narrative comments.”

		C17.3.1.2.  Shipment Information.  SDRs must contain a document number.  Identify the original requisition document number when known; otherwise a constructed document number is required.  DoD requisitioners reporting discrepant shipments may only use a constructed document number for selected discrepancies as discussed below.  A constructed document number identifying the receiving distribution center is required for depot receipts reported electronically, including new procurement receipts.  A constructed document number may also be prepared by a transshipper based upon the CCP or port DoDAAC.  Additional information, such as transportation numbers (TCN, bill of lading number, etc.) may be provided in accordance with the DLMS IC.  Procurement information must be provided for wholesale level procurement source receipt discrepancies (SDR Document Type 9 or P).  Procurement information will include the procurement instrument identifier (PIID) (this term is inclusive of the PIID call/order), contract line item number (CLIN), and vendor shipment number.[footnoteRef:4]  When a PIID call/order number (F or M in 9th position) is used, provide the value in the PIID field.  When reporting new procurement receipts, the distribution center will cite a “pseudo shipment number,” equivalent to that cited on the receipt, when the actual vendor shipment number is not available from shipping documentation.  The pseudo shipment number will be constructed to identify the receiving depot and a constant 01 (that is, the serial number will not be incremented; therefore, the pseudo shipment number will not be unique).  In order to systematically identify pseudo shipment numbers the third position must be numeric (vendor assigned shipments use a three digit alpha prefix to identify the vendor).  For example, pseudo shipment numbers prepared by Distribution Center San Joaquin, California (DDJC), will be reported as DD1JC01.  Action activities must have the capability to update procurement information via the SDR reply when not populated by the submitter or EDA input on procurement source receipt discrepancies involving direct vendor/contractor delivery to the customer (SDR Document Type 6). [4:  Use the legacy PIIN pending transition to the PIID.  When using the PIIN, include the four-position call/order number.  Refer to ADC 1161A.] 

		C17.3.1.3.  Requested Action

			C17.3.1.3.1.  The SDR originator must indicate what action has been taken concerning the discrepant materiel and/or the desired response from the responsible action activity.  Identify the action code using the SDR Requested Action Code (Appendix 7.28).  Within the context of SDR processing, this data element is known as the Action Code.  If no code exists to adequately describe the action taken or requested disposition, select Code 1Z and use a clear-text description.

			C17.3.1.3.2.  When an SDR is submitted using Action Code 1H, “No Action Required, Information Only,” the SDR must be processed to verify the discrepancy does not require further action.  SDRs with Action Code 3B, “Discrepancy Reported for Corrective Action and Trend Analysis.  No Reply Required.” must be reviewed to determine the appropriate corrective action to prevent recurrence.  A reply transaction from the action activity is not required, for Action Codes 1H or 3B, but when provided, it will be accepted by the customer application.  Systematically, this may be interpreted to mean that customer applications may auto-close these SDRs, but must allow them to re-open automatically to process a reply transaction if one is provided.  A non-significant reply (e.g. indicating acknowledgement of the SDR), may be dropped or posted, but will not require further attention.

		C17.3.1.4.  Shipping Documentation.  Retain shipping and associated documentation in a readily accessible format to provide a copy if requested.  Do not mail hard-copy documentation if data is otherwise accessible to the responsible action activity.  Where relevant to the discrepancy, shipping documentation may be provided electronically as an SDR attachment.  Shipping activities should retain documents and transaction history records in accordance with DoDI 5015.02, DoD Records Management Program.  

	C17.3.2.  Reporting Criteria

		C17.3.2.1.  U.S. Forces and participating non-Security Assistance fall under the reporting criteria based upon dollar value and/or condition as follows: 

			C17.3.2.1.1.  GSA and DLA Directed Shipments Dollar Value Criteria.  Optionally, recipients of DLA and GSA directed shipments may submit an SDR for all types of shipments regardless of dollar value.  Otherwise, report discrepant shipments when they meet the conditions and value criteria cited in the paragraphs below.

			C17.3.2.1.2.  Contractor/Manufacturer or Vendor Shipments.  Report discrepant shipments from contractors/manufactures or vendors that meet conditions cited under reporting criteria regardless of dollar value.  DLA Distribution Centers will perform kind, count, and condition (KCC) inspection during receipt to determine if any discrepancies exist in accordance with MILSTRAP (refer to C13.2.8.3. Processing Discrepant/Deficient Receipts).

		C17.3.2.2.  DoD action activities will recognize the ILCO’s determination whether SDRs fall within submission time standards and dollar limitation contained in the United States of America Department of State Letter of Offer and Acceptance controlling the case, or any other sales agreement with a Security Assistance purchaser.  Once accepted by the ILCO and forwarded to the responsible action activity, further evaluation for time standard and dollar criteria is not appropriate. 

		C17.3.2.3.  Condition of Materiel

			C17.3.2.3.1.  Condition Misrepresented.  Report when the condition of an item valued in excess of $100 per line-item is found to be other than shown on the shipping document, or, in the case of subsistence, on supporting inspection/test certificates or records.  Use the hazardous materiel discrepancy code when applicable.

				C17.3.2.3.1.1.  For serially managed items to include capital equipment and UIT programs, SDRs indicating a receipt in other than the original condition shipped will include UII and serial number (when available) for the discrepant quantity received.  When all items are discrepant, no UII and/or serial number is required for IUID materiel as this information is already known to the relevant parties.[footnoteRef:5] [5:  Refer to ADC 1198.] 

				C17.3.2.3.1.2.  Capital Equipment.  Serial number tracking does not automatically apply to capital equipment.  The materiel owner will evaluate capital equipment items and assign the appropriate UIT designator code only when the item requires serial number tracking at the DoD level.  For the remainder of this chapter, the term UIT program is inclusive of any capital equipment items assigned a valid UIT designator code.

			C17.3.2.3.2.  Hazardous Materiel.  Report discrepant receipt of hazardous materiel under the appropriate H-series discrepancy code.  Use in place of the C-series codes for condition/shelf-life discrepancies when a hazardous item is received in a condition other than shown on the supply document or on the supporting inspection/test certificate.  Report receipt of hazardous item requiring repair and lack of a safety data sheet (SDS) in Hazardous Material Information Resource System (HMIRS).  Also use to report receipt of a non-radioactive item classified as radioactive, or non-hazardous item classified as hazardous. 

			C17.3.2.3.3.  Missing Part.  Report materiel received for repair that has been cannibalized of nonexpendable parts or components (including cannibalization of nonexpendable basic issue item (BII) or nonexpendable supply system responsibility item (SSRI) without the authorization of the inventory manager when the total value of the missing item(s) is in excess of $100).  Expendable BII and SSRI are not subject to these procedures.

			C17.3.2.3.4.  Expired Shelf Life.  Report receipt of materiel for which the shelf life either has expired (Type I non-extendible item) or the inspect/test date has lapsed (Type II extendible item), regardless of dollar value.  Use the hazardous materiel discrepancy code when applicable.

				C17.3.2.3.4.1.  For Type I DoD and GSA managed items:  Materiel classified as a Type I Shelf-Life non-extendible item that has expired, or whose expiration cannot be identified upon return to storage activities from DoD customers, will be receipted and sent directly to DLA Disposition Services.  The automatic disposal process only applies to demilitarization (DEMIL) Code A materiel.  The storage activity will generate an information only SDR (Action Code 3B) to the owner.

				C17.3.2.3.4.2.  Exceptions which require an actionable SDR/SQCR

					C17.3.2.3.4.2.1.  Other than DEMIL Code A materiel 

					C17.3.2.3.4.2.2.  New procurement materiel

					C17.3.2.3.4.2.3.  Federal Supply Class 6505 – Medical Pharmaceuticals, is covered by the DoD Food and Drug Administration Shelf-Life Extension Program.  This is the only FSC where the shelf life can be extended.  Upon expiration of the materiel, manually execute a dual inventory adjustment from the existing supply condition code to Condition Code J and submit a storage quality control report (SQCR) to the materiel owner. 

					C17.3.2.3.4.2.4.  Materiel identified as product quality deficiency report (PQDR) exhibits.  This is materiel that has been receipted into Q Condition and identified with a PQDR Report Control Number (RCN).

				C17.3.2.3.4.3.  For Type II DoD-managed items:  prior to submitting an SDR, access the DoD Shelf-Life Extension System (SLES) through the DoD Shelf-Life Program Website or through the shelf life program secure site if you have a .mil address.

						C17.3.2.3.4.3.1.  Type II items requiring laboratory test:  query the DoD Quality Status Listing (QSL) to determine if the specified Type II item is listed as having passed the required laboratory testing and has been extended.  Items that are listed on the QSL as passed may be extended and remarked accordingly if the item has been stored in accordance with its storage standard.  For items not on the QSL, prior to submitting an SDR, contact the DLA call center at 1-877-DLA-CALL if the shipment originated from a DLA storage activity.

						C17.3.2.3.4.3.2.  Type II items requiring visual inspection:  query the Materiel Quality Control Storage Standards for the specified Type II item, perform visual inspection in accordance with the items storage standard, and extend and remark if the item has been stored in accordance with its storage standard.  If the item fails the visual inspection, dispose of as required by local procedures.

					C17.3.2.3.4.4.  For Type II GSA-managed shelf-life-items:  prior to submitting an SDR, contact the GSA Shelf-Life Hotline at 1-209-547-8634 to determine if the inspect/test date has been extended.

		C17.3.2.4.  Canceled Requisitions.  An SDR is required when materiel received is valued in excess of $100 per line-item for canceled requisitions.  Confirmation of the cancellation must be on file.  The submitter should request disposition instructions for unwanted materiel.  Exception:  an SDR must be submitted when controlled inventory items are received on previously canceled requisitions regardless of dollar value.

		C17.3.2.5.  Documentation.  Report when documentation is missing, incomplete, or improperly prepared regardless of dollar value.

			C17.3.2.5.1.  Receiving activities must report documentation discrepancies that impact timely receipt processing.  Typically, this includes missing, incomplete, or improperly prepared supply documents such as the Issue Release/Receipt Document (DD Form 1348-1A).  For shipments from a procurement source, documentation discrepancies apply to the Receiving Report/Material Inspection and Receiving Report (MIRR) (DD 250 or equivalent).  Shipments to DLA Disposition Services will be reported for a missing, incomplete, or improperly prepared Hazardous Waste Profile Sheet or Hazardous Waste Manifest.  Transhippers will report other types of missing or improper shipment documentation to include Special Handling Data/Certification (DD Form 1387-2), Transportation Control and Movement Document (TCMD) (DD Form 1384), and the Shipper's Declaration for Dangerous Goods.

			C17.3.2.5.2.  Sources of supply will prioritize resolution of SDRs submitted by DLA Distribution Centers citing Discrepancy Code D4.  The objective is to preclude delays in reclassifying materiel suspended due to lack of a Quality Assurance Representative (QAR) signature in Invoicing, Receipt, Acceptance, and Property Transfer (iRAPT).  When no other discrepancies have been identified, the source of supply will direct the distribution center to prepare an inventory adjustment to bring the materiel into fully serviceable condition upon posting of the QAR signature.[footnoteRef:6]  Note that QAR signature is not required for receipt processing when Certificate of Conformance (CoC) or Alternate Release Procedures (ARP) are authorized.  Use system edits to block inappropriate suspension of materiel and submission of SDRs when these procedures are applicable.[footnoteRef:7] [6:  Refer to ADC 1066.]  [7:  Refer to ADC 1202.] 

		C17.3.2.6.  Overage/Shortage, Nonreceipt, or Duplicate Discrepancies

			C17.3.2.6.1.  Overage/Shortage.  An item overage or shortage discrepancy occurs when the quantity received is greater or less than that shown on the shipping document.  This type of variance is not evident on delivery but is discovered when the article of freight, as described on the transportation document, is opened and the contents are checked.  Report DoD shipper overages or shortages valued in excess of $100 per line item, except for controlled inventory items, that are reported regardless of dollar value.  Customers may use a clear text description to indicate that erroneous or conflicting Materiel Receipt Acknowledgement information was previously submitted.

			C17.3.2.6.2.  Concealed Overage/Shortage.  U.S. Government customers must report overages or shortages discovered while opening a sealed vendor pack regardless of dollar value or shipper.  These reports must contain, if available, the PIID from the packaging, the lot number, and original document number.  A constructed document number must be provided when the original number is not known.  Use the reporting activity’s DoDAAC as the basis for constructing the document number, citing Code U in the first position of the constructed document number serial number (DLMS Utilization Code U).

			C17.3.2.6.3.  Quantity Variances.  Quantity variances on receipts from procurement authorized by the terms of the contract are not reportable as discrepant.

			C17.3.2.6.4.  Quantity Unit Pack (QUP) Variances.  Report quantity variance due to incompatibility of unit of issue (U/I) between documentation and materiel received.  Automatic adjustment for unit pack is allowable by policy, unless the requisition contains an appropriate advice code, in accordance with Chapter 4, restricting the quantity.

			C17.3.2.6.5.  Exceptions to Reporting Overage/Shortage.  For U.S. Government customers, this does not include transportation discrepancies as follows:

				C17.3.2.6.5.1.  Overages or shortages of boxes, packages, or loose articles of freight in a commercial/Government-owned/leased shipping container (commonly called SEAVAN), Military SEAVAN (MILVAN), a Military Sealift Command SEAVAN (MSCVAN or MILVAN), roll-on/roll-off (RORO) trailer, or CONEX.

				C17.3.2.6.5.2.  Overages or shortages of freight (packaged or loose), upon delivery by a carrier, found to be in excess of the quantity of articles recorded on the bill of lading or transportation document covering the shipment.

					C17.3.2.6.5.3.  Average Net Weight Lotting System.  DLA’s subsistence commodity will use the average net weight lotting system when shipping perishable specification freeze and chill items.  Actual weight received may differ from actual weight requisitioned or shown on the supply documentation.  Do not submit a discrepancy report if the number of cases/containers received agrees with the number shown on supply documentation, and actual weight received is within weight range variation.

			C17.3.2.6.6.  Total Nonreceipts

					C17.3.2.6.6.1.  Report non-receipt of items shipped via traceable means, (e.g., GBL or CBL, registered, insured, certified USPS, or small package carrier shipments), regardless of dollar value only when it has been determined that non-receipt is not the result of a transportation discrepancy.  In all cases, U.S. Government customers must have received supply/shipment status and employed materiel follow-up procedures.  It is strongly recommended that the customer check for requisition status on Web Visual Logistics Information Processing system (WebVLIPS), for proof of shipment data on DLA Distribution Standard System (DSS) Materiel Release Order (MRO) Tracker or on the Integrated Data Environment/Global Transportation Network (IGC/IDE), or use the DoD WebSDR hyperlink to WebVLIPS  to check requisition status before creating an SDR for total non-receipt.  This may preclude the need for an SDR or may enable the action activity to resolve the problem more quickly.

					C17.3.2.6.6.2.  Security Assistance customers reporting non-receipt are required to provide documentation from the freight forwarder indicating that no materiel has been received on the requisition and transportation control numbers that apply.  The ILCO will deny and return as incomplete any SDRs that do not have the documentation attached.

					C17.3.2.6.6.3.  An SDR is required when items valued in excess of $100 dollars per line-item, reported shipped by non-traceable USPS (i.e., not shipped registered, insured, certified mail) are not received or are received in a damaged condition.

			C17.3.2.6.7.  Duplicate Shipments.  Report duplicate shipments regardless of dollar value.

			C17.3.2.6.8.  SDRs for Air Force Maintenance Denials Under BRAC Supply, Storage and Distribution (SS&D) Agreement.  SDRs resulting from distribution center denial of an Air Force-directed release order for inventory previously requisitioned from DLA and receipted into Air Force ownership as the result of a “wash” (issue/receipt in-place), will be reported to the depot for initial action.  This is an automatic SDR generation triggered by a warehouse refusal citing Denial Management Code 1 (stock exhausted) or 2 (materiel not available in condition requested).  The SDR will identify the original requisition document number (under which the materiel was purchased from DLA) and the maintenance denial document number (identified by the Air Force maintenance site M-series identifier in the first six characters of the document number).  The maintenance denial document number will be carried as the customer-assigned SDR number to facilitate depot research.  The discrepancy may be reported as total non-receipt (total denial) or as a shortage (partial denial).  DLA will issue credit based upon the depot recommendation and confirmation of prior billing.  If materiel is still required, a new requisition will be generated perpetuating the applicable denial management code.  The replacement requisition will also cite the prior (original) document number for cross-reference.

		C17.3.2.7.  Misdirected Materiel.  Report when materiel, regardless of dollar value, is improperly addressed and shipped to the wrong activity.  The document number assigned to the SDR will be the document number from the shipping documentation of the misdirected shipment received.  (If the customer requisitioned materiel that was not received, it must be reported on a separate SDR for total non-receipt using the document number for the requisitioned materiel.)  Misdirected shipments received by Security Assistance customers identify the location of the discrepant materiel and the country reporting the receipt (which may differ from the intended customer).  All customers (U.S. and Security Assistance) are required to report misdirected controlled inventory, arms, arms parts, and explosives within 24 hours of discovery.  (Properly addressed materiel incorrectly shipped to the wrong activity while under U.S. Government-controlled transportation is reportable as a transportation discrepancy.)

		C17.3.2.8.  Packaging Discrepancies

			C17.3.2.8.1.  Improper Packaging.  Report any unsatisfactory condition resulting from improper packaging that causes the item, shipment, or package to be vulnerable to any loss, delay, or damage according to the specific conditions cited.  Unless otherwise indicated, the minimum dollar value reporting criteria is when the estimated/actual cost of correction exceeds $100; or the value of the item, shipment, or package is $2500 or over, regardless of the estimated or actual cost to correct the packaging discrepancy.  This may include loss or damage to the item, shipment, or package except when a report is otherwise required by DTR 4500.9-R, Defense Transportation Regulation, Part II, Cargo Movement.  Where encoded information on the SDR is not sufficient, the submitter is strongly encouraged to provide photographs and detailed descriptions of how the materiel was packaged, as well as the actual damages incurred to the materiel (when applicable).  When requesting disposition instructions, the submitter should also include the estimated or actual cost of correction of packaging on the initial SDR.  Repackaging costs may include total costs to complete packing, packaging, preservation, palletization and/or marking (materiel and labor) as appropriate for the situation.  The submitter must include the actual cost of corrective action when using the SDR to document repackaging cost on an SDR provided for reimbursement after corrective action has occurred.  Repackaging prior to receipt of disposition instructions from the action activity is only authorized by exception.  DLA Distribution Centers are pre-authorized to correct packaging discrepancies by the owning Component based upon a coordinated stock readiness agreement specifying the applicable dollar threshold.  Customer receiving activities may need to take immediate corrective action when operationally necessary (clarify reason in SDR remarks and provide supporting documentation).  If the estimate provided on the initial SDR submission differs from the actual cost, the submitter should provide a correction to their SDR submission to alert the item manager for a corrected reimbursement amount.  If there is a substantial difference between the estimated and actual repackaging cost, the item manager will review documentation to ensure the claim is valid and may request clarification for the difference.  The source of supply will provide credit to customers in accordance with MILSBILLS procedures in DLM 4000.25, Volume 4, Finance.

			C17.3.2.8.2.  Packaging Discrepancies Noted at DLA Distribution Centers.  To ensure proper visibility and traceability of preservation, packaging, packing and marking (PPP&M) costs, DLA Distribution Centers must include estimated costs for repackaging, including the discrete cost for labor and repackaging materiel.

				C17.3.2.8.2.1.  For DLA-owned materiel only, if the materiel received by the DLA Distribution Center, and the cost to correct the discrepant packaging is less than $1000, the DLA Distribution Center may perform the corrective action without authorization from the owner.  The SDR will be provided to the owner for information only using Action Code 1H or 3B.  

				C17.3.2.8.2.2.  For all other Components, if the materiel has a packaging discrepancy, no item discrepancies are noted, is a secondary item, and the cost to correct the discrepant packaging is less than $300, the DLA Distribution Center may perform the corrective action without authorization based upon prior agreement regardless of whether a PMR was provided.  The SDR will be provided to the owner for information only.

			C17.3.2.8.3.  Mission or Life Endangering.  Report packaging discrepancies, regardless of dollar value, resulting in damaged materiel that may endanger life, impair combat or deployment operations, or affect other materiel.  Report immediately to the shipping activity, contracting office, or control point by the quickest communication medium to enable the shipper to take immediate corrective action.  Submit an SDR within 24 hours of the initial report.

			C17.3.2.8.4.  Hazardous Materiel (Includes Ammunition and Explosives).  Report any packaging discrepancy, regardless of dollar value, if a potentially hazardous condition could result or if damage or an unsatisfactory condition has occurred involving any hazardous materiel.  This includes improper identification markings of items and packaging and/or unitized loads.  Use hazardous materiel discrepancy codes when applicable.

			C17.3.2.8.5.  Excessive Packaging.  Report excessive packaging by contractors that result in additional costs to the U.S. Government, regardless of dollar value.

			C17.3.2.8.6.  Improper Packing.  Report any type of inadequate or improper packing to include incorrect blocking or bracing, oversized or incorrect container, and inadequate closure, resulting in an unsatisfactory condition or damage.  Report when materiel is not packed in required reusable container regardless of dollar value.

			C17.3.2.8.7.  Delay or Additional Costs.  Report packaging discrepancies resulting in delay or additional packaging costs at aerial or water terminals or at consolidation and containerization points.  The activity responsible for operating the terminal or port of embarkation/debarkation will be responsible for the preparation and submission of an SDR on discrepancies noted on shipments moving through the activity.  These SDRs will be prepared using Discrepancy Document Type Code W.

			C17.3.2.8.8.  Improper Packaging of Customer Returned Materiel.  Distribution Centers will send an SDR to the materiel owner for packaging discrepancies related to customer returned materiel or inter-depot transferred materiel.  The materiel owner is responsible for funding packaging costs associated with preparing materiel for storage and reissue.  Packaging discrepancies occurring in materiel returns are subject to recoupment action at the discretion of the materiel owner.  If the packaging is so bad that the item must be disposed, the shipper may be required to reimburse the receiver for any packing required to effect the shipment and the cost of turn in to DLA Disposition Services.  The distribution center will always include the estimate of the costs of repackaging or disposal on the initial SDR submission, in the remarks section and complete the appropriate data element entries for electronic submission.

			C17.3.2.8.9.  Wood Packaging Materiel (WPM).  Report WPM that is not consistent with the international standards for the regulation of WPM transiting international borders and Department of Agriculture regulation governing importation of regulated WPM.  Compliant WPM must display certification marking as prescribed in reference.  Use discrepancy code P215 and provide remarks as applicable.  Also see guidance for CCP-originated SDRs below.

			C17.3.2.8.10.  Repetitive Packaging Discrepancies.  Include Discrepancy Code Z2, Repetitive Discrepancy, with the other specific packaging discrepancy code(s) to report repetitive packaging discrepancies that impose a significant burden on receiving or transshipment activities.  Total costs to correct packaging will be included in the SDR.  For FMS SDRs reporting repetitive packaging discrepancies, each individual SDR must comply with the Security Assistance dollar thresholds for SDR submission.  The SDR submission cannot be based upon the dollar value of the accumulated discrepancies.

			C17.3.2.8.11.  Improper Preservation.  Report any type of inadequate or improper preservation or physical protection resulting in an unsatisfactory condition or damage.  Report improper preservation of any materiel identified as being electrostatic/electromagnetic (ES/EM) sensitive, regardless of the dollar value.

			C17.3.2.8.12.  Improper Marking.  Prepare an SDR to report any omitted, incomplete, illegible, or misplaced markings.  Report improper identification of containers, or items that require opening the container, or result in improper storage of the materiel, regardless of cost.  Improper marking includes discrepancies related to passive radio frequency identification (pRFID) tags as follows:

				C17.3.2.8.12.1.  Report all missing, damaged, or unreadable pRFID tags when such tags are required by contract provisions, DoD policy, or specified by prior shipment notice/status reflecting pRFID content.  Report duplication of tag identification associated with a previously processed receipt.

					C17.3.2.8.12.2.  SDRs may be used to report a tag read formatted for DoD use, but which does relate to an advance shipment notification containing pRFID content when such advance shipment notification is required by contract provisions or DoD policy.

			C17.3.2.8.13.  Improper Unitization.  Report improper unitization that includes inadequate wrapping/strapping or lack of unitization, where appropriate, resulting in an unsatisfactory condition or damage.  Report multiple consignees in a single consignee consolidation container as improper unitization.

			C17.3.2.8.14.  Latent Packaging Discrepancies.  Prepare a late SDR for materiel found in storage with latent preservation and packaging discrepancies.  Confine these reports to stocks that constitute a problem resulting from a particular specification, preservation, or packaging method.  Reports relative to packaging discrepancies found in storage will be annotated "not incident to shipment.”		

		C17.3.2.9.  Receipt Notification SDRs for Quality-Related Issues Identified During Distribution Center Receipt.  Three-position Q-series discrepancy codes have been developed to accommodate materiel owners/managers with special programs requiring immediate visibility and notification of quality deficient (or potentially deficient) materiel received at the distribution center.  These codes are applicable for reporting to ICP/IMMs via the SDR process, based upon special inspection requests by the materiel manager.  These reports are contingent upon pre-existing receipt restriction requirements that identify the national stock number (NSN) and/or other screening criteria and specific actions the materiel managers expects the distribution center to perform.  Some of the specific programs that require reporting of quality-related concerns for receipts, including new procurement and customer returns, are: items identified as customer return improvement initiative (CRII) items, critical safety items (CSI), items that failed under use, and items requiring First Article Testing.  Additionally, receipt of PQDR exhibits will be reported to the owner or manager using the applicable three-position Q-series discrepancy code.  For PQDR exhibits, report the receipt and SDR to the same organization (based upon the PMR, when available).  Report suspended materiel in the appropriate supply condition code (SCC) under DLMS/MILSTRAP procedures, to include PQDR exhibit receipts in SCC Q and CSI in SCC L for procurement source receipts or SCC K for non-procurement source receipts.  For other than PQDR exhibits or first article testing, provide the SDR to the manager with a distribution copy to the owner, if different.  Disposition instructions for these SDRs will be provided by the manager

		C17.3.2.10.	  Technical Data.  Report item technical information, (e.g., name plate, operating handbook, logbook, precautionary markings, warranty data, engineering drawings and associated lists, specifications, standards process sheets, manuals, technical reports, catalog item identifications, and related information) that are missing, illegible, incomplete and/or incorrect regardless of dollar value.  When reparables are returned and the appropriate historical information/documentation, operator/maintenance logbooks, engine oil analysis, etc., as required by Government regulations, and/or technical manuals are not included, the receiving activity will submit an SDR regardless of dollar value.  Any additional costs incurred by the repairing depot/arsenal because of the missing data will be charged to the originating activity.  The submitter will ensure that the specific description of what documentation is missing is included in the remarks section.

		C17.3.2.11.  Incorrect Item

			C17.3.2.11.1.  Report incorrect or misidentified materiel or unacceptable substitutes regardless of dollar value.  However, unless the requisition contains an appropriate advice code in accordance with Chapter 4, limiting the request to a specific item, automatic shipment of an interchangeable or substitute item is allowed by policy.  See Interchangeability & Substitutability (I&S) guidance.  Report wrong item receipts of controlled inventory, arms, arms parts, and explosives within 24 hours.

			C17.3.2.11.2.  Incorrect item discrepancies discovered while opening a sealed vendor pack will be reported regardless of dollar value or shipper.  These reports must contain the PIID from the packaging and, if available, the lot number and the original document number.  A constructed document number will be provided when the original number is not known.  Use the reporting activity’s DoDAAC as the basis for constructing the document number, citing Code U in the first position of the constructed document number serial number (DLMS Utilization Code U).  Include identity of the incorrect item received in the discrepancy report.

			C17.3.2.11.3.  Where two separately managed items are involved in a wrong item SDR, (e.g., a DLA-managed item was ordered and a Military Service-managed item was received due to shipper error), the SDR initiator will forward the report to the shipping depot or manager of the item ordered, in accordance with Component rules.  It is the responsibility of the SDR action activity (receiver of the SDR) to ensure full and appropriate resolution by coordinating with the other involved ICP/IMM or transferring the SDR (manually), so that the initiator receives all applicable and appropriate response information from the responsible party.  This may be interpreted to mean two separate SDR replies, or a single coordinated response identifying financial resolution from the Component that sourced the order, and materiel disposition instructions provided by the owner of the materiel shipped.

			C17.3.2.11.4.  Report part number discrepancies when the part number marking appears to be inconsistent with the specified NSN.  This includes when the part number received is not associated with the applicable NSN or when the part number cannot be matched to Federal Logistics Information System (FLIS) catalog data/FEDLOG.  The SDR must include the part number and manufacturer’s Commercial and Government Entity (CAGE) Code for the item received.  Part discrepancies will be submitted directly to the item manager.  

			C17.3.2.11.5.  DoD WebSDR requires identification of the incorrect item received using discrete data elements (refer to the DLMS IC 842A/W).  If multiple incorrect items are received under the same document number, use the appropriate discrepancy code for mixed stock and identify the first (highest quantity or controlled item) and use the remarks text to explain the mixed content shipment. 

		C17.3.2.12.  Repetitive or Other Discrepancies.  U.S. receiving activities will report repetitive discrepancies, regardless of dollar value.  For FMS SDRs reporting repetitive discrepancies, each individual SDR must comply with the Security Assistance dollar thresholds for SDR submission.  The SDR submission cannot be based upon the dollar value of the accumulated discrepancies.  Additionally, receiving activities may report any other discrepant condition of an item not specifically identified in this chapter at the time of receipt, unless listed specifically under exclusions.

	C17.3.3.  SDRs Resulting from Redistribution Orders (RDOs).  The following procedures are applicable to DLA Distribution Centers.  ***DLA Distribution Centers will submit a type R SDR for discrepant materiel when they receive an RDO from a DLA Distribution Center shipment.  Other RDOs with discrepancies not shipped from a DLA Distribution Center will be submitted as type 8 SDRs***.  Only the current action activity can update the owner, manager, or source of supply field.  Submitters must cancel and resubmit their SDR if they need to update this field.  When a storage activity receives a shipment based upon a redistribution order and the materiel is short, over, wrong, quality deficient, or otherwise discrepant the receiving activity will:

***C17.3.3.1.  RDO Shortage/Overage/Wrong Item.  Prepare the SDR to report shortage/overage/wrong item and use Action Code 3B.  The shipping activity will receive the action copy for research and possible inventory adjustment.  The shipping activity receiving the SDR will treat it as a priority and conduct inventories as appropriate.  If the inventory/research confirms a shortage/overage/wrong item, the shipping activity will respond with Reply Code 144 annotating inventories were conducted and confirm shipment error; accountable record corrected; no materiel will be shipped.  If the inventory/research does not confirm a shortage/overage/wrong item, the shipping activity will respond with A Reply Code 701 (SDR Rejected) citing inventory conducted and no shortage/overage/wrong item was discovered; no materiel will be shipped.  Report wrong item receipts of controlled inventory, arms, arms parts, and explosives within 24 hours.***

		C17.3.3.2. Packaging, Prepare the SDR to report the discrepancy using Action Code 3B. ***Packaging and marking discrepancies for RDOs will be corrected by the receiving activity upon receipt of materiel at no cost to the materiel owner regardless of cost to remediate.  Discrepancies should have been remediated at previous storage activity.  The storage activity receiving the materiel must submit a SDR to the shipping activity, utilizing the proper packaging discrepancy code(s).***

***C17.3.3.2.1.  Missing Technical Data.  Prepare the SDR to report the discrepancy using Action Code 3B.  The shipping activity will receive a copy for research; the SoS will receive an information copy.  The shipping activity receiving the SDR will treat it as a priority.  If technical data is available, the shipping activity will respond with Reply Code 135 (Technical data is being forwarded), if technical data is not available respond with Reply Code 144.***

***C.17.3.3.2.2.  Misdirected RDO to the shipping activity.  RDO SDRs addressed to the wrong shipping activity will be forwarded to the correct shipping activity for resolution via the forwarding Reply Code 504.  The newly identified shipping activity in receipt of the RDO SDR will be responsible to respond to the SDR as appropriate.***

	C17.3.4.  Materiel Returns

		C17.3.4.1.  Discrepancy Greater Than $100.  Continental United States (CONUS) and Outside Continental United States (OCONUS) activities receiving materiel returns (excess or redistributed materiel, or reparable materiel, including returns from FMS customers) will submit an SDR for discrepancies specified above regardless of condition when the dollar value is equal to or greater than $100 per line-item.  Discrepancies pertaining to controlled inventory items will be reported by SDR regardless of dollar value or condition.

		C17.3.4.2.  Unauthorized Returns (no PMR/incomplete or missing documentation/no identified owner).[footnoteRef:8]  Refer to paragraph C17.3.6. Distribution Center Receipt with no Due In/Prepositioned Materiel Receipt.  Discrepancy reports for distribution center receipts of unauthorized materiel returns with insufficient information to determine the appropriate owner will be routed under MILSTRAP for receipt reporting: [8:  Refer to ADC 110/1102A.] 

			C17.3.4.2.1.  Depot Level Reparable Items.  Report discrepant receipt SDR to the owner.  Commercial maintenance activities will return reparables on a controlling contract number and may include a significant secondary document number.  Storage activities will report discrepant receipts on Document Type 9 or P, as applicable, and identify the Return (Repaired/Overhauled/Other Commercial Return) Code R to distinguish commercial returns from repair, non-destructive test/evaluation, assembly, disassembly, reclamation, and conversion/modification from new procurement receipts.  For commercial returns, the SDR must include contract information comparable to new procurement:  PIID (or PIID call/order) with contract line/subline item number and contractor-assigned shipment number when available.  DoD WebSDR will populate the shipper’s CAGE and the Contract Administration Office (CAO) DoDAAC when available from EDA. [footnoteRef:9] [9:  Refer to ADC 1268.] 

			C17.3.4.2.2.  Consumable Items. Report discrepant receipt SDR to the applicable item manager except:

				C17.3.4.2.2.1.  Navy-returned consumable items must be reported to the Navy using RIC NRP regardless of the item manager. An SDR will be provided to the Navy owner for information only.

				C17.3.4.2.2.2.  Marine Corps-returned consumable items must be reported to RIC MPB regardless of the item manager. An SDR will be provided to the Marine Corps owner for information only.

				C17.3.4.2.2.3.  Air Force-returned consumable items must be reported to RIC FHZ regardless of the item manager.  An SDR will be provided to the Air Force owner for information only.

		C17.3.4.3.  Exception for Returns Between U.S. Activities.  When the materiel return shipments are classified as unserviceable and uneconomically reparable upon receipt, the receiving activity will report to the shipping activity.  The report will include materiel return document number, quantity, and an explanation of condition classification.

		C17.3.4.4.  Reimbursable Costs for Discrepant/Unauthorized Returns. Under MILSBILLS and MILSTRIP procedures DoD activities returning materiel in violation of prescribed procedures may be held accountable for recoupment of all reimbursable costs including disposal.  Recoupment action may be initiated by the DLA Distribution or, upon subsequent identification of the applicable manager, by the manager. 

		C17.3.4.5.  Supplemental Information for Suspended Returns.  SDRs applicable to returned materiel in a suspended condition will include supplemental information as follows:  contract reference (required entry; indicate “NONE” if no contract reference is available), and original packaging indicator (required yes/no entry).

	C17.3.5.  Discrepancies Resulting from Lateral Redistribution Orders (LROs) on Total Asset Visibility (TAV) Shipments.  Coordination with the Military Service shipping activity is recommended prior to ICP resolution of the SDR.  

		C17.3.5.1.  All SDRs submitted for DLA directed LROs where the item is managed by DLA, owned by Army’s Non-Army Managed Items (NAMI) Group, Supply Directorate (Routing Identifier Code (RIC) AJ2), and shipped from an Army CONUS site, must be sent to NAMI for investigation, with an information copy to DLA (RIC SMS).  This is normally accomplished via exception routing rules within DoD WebSDR.  SDRs meeting these criteria will be assigned Document Type V.  Any SDRs received directly by DLA will be forwarded to NAMI (RIC AJ2) via SDR forwarding reply citing Reply Code 504.  NAMI will research the discrepancy and forward recommended disposition to DLA for final action.  The NAMI action activity will provide recommended disposition to DLA within 25 calendar days using an SDR forwarding reply citing Reply Code 307.  After 25 calendar days have elapsed and NAMI recommended resolution has not been received, DLA will follow-up for recommended disposition.

		C17.3.5.2.  Upon receipt of recommended disposition, DLA will review and provide final decision to the customer, along with an information copy to NAMI.  DLA will be responsible for ***seeking a bill adjustment from*** the TAV shipping activity, ***returning payment*** to the requisitioner, and deleting activities from the TAV process due to poor performance, in coordination with NAMI.

		C17.3.5.3.  If Army shipped the wrong item or an overage, NAMI will be responsible to provide the customer with disposition instructions and/or directions for returning the item back to Army.  If the item is to be retained by the customer, NAMI will be responsible for financial actions as appropriate.  DLA will not reimburse the shipper for wrong item or over shipments of Army issues relative to TAV.

	C17.3.6.  Distribution Center Receipt with no Due In/Prepositioned Materiel Receipt (PMR).  DLA Distribution Centers will report receipt of unscheduled materiel from new procurement and non-procurement sources to the owner regardless of condition of materiel, as a discrepancy.  When a PMR is not available, the receiving activity will report the receipt using documentation, packaging, and other information, as available.  DLA Distribution Centers will prepare an SDR to report the missing/unmatched of a PMR to the owner as the only discrepancy or in combination with other identified discrepancies.  The distribution center will identify the SDR as informational or otherwise indicate requested action.  If the distribution center erroneously reported the receipt to the wrong owner due to missing/unmatched PMR, the wrong owner will use the SDR reply process to reject the SDR (using Reply Codes 901).  If the wrong owner is unable to reject the receipt transaction systemically, the wrong owner will also request that the distribution center reverse the receipt (using Reply Codes 612).  If known, the wrong owner should identify the correct owner in the receipt rejection or SDR reply to facilitate reprocessing of the receipt. These procedures do not authorize rejection/reversal of receipts reported to the owner designated by PMR or the pre-designated Service owner for unauthorized return of consumable items.[footnoteRef:10]   [10:  Refer to ADC 1273.] 

		C17.3.6.1.  New procurement materiel with other applicable discrepancies, (e.g., missing receiving report/DD Form 250, improper packaging), will be placed in Supply Condition Code (SCC) L pending resolution.

		C17.3.6.2.  If other than new procurement, the SDR should show receipt in SCC K when the actual condition cannot be determined.  Materiel returned with other identified discrepancies, (e.g., without associated technical data), will also be reported as indicated under the appropriate discrepancy category.  Returns of excess materiel that are not ICP/IMM directed are subject to recoupment of costs associated with disposal or repackaging costs incurred by the distribution Center.  If the receiving activity identifies no other discrepancies requiring disposition instructions and is able to process the receipt to the owner the SDR will cite Action Code 3B for corrective action and trend analysis.  The distribution center will direct the action copy of the SDR to the owner or manager and a distribution copy to the returning activity (based on the DoDAAC in the document number or shipping documentation.)

		C17.3.6.3.  Unscheduled receipts of materiel subject to MILSTRAP automatic disposal is reported via SDR for trend analysis and corrective action (Action Code 3B) with a distribution copy to the returning activity.  SDRs associated with DLA obsolete materiel (materiel managed under obsolete RICs beginning with S9) must cite Discrepancy Code Z1 (see remarks), Z3 (no PMR), and any other relevant discrepancy code.  SDR remarks will state, “Unauthorized return; materiel processed under DLA automatic disposal procedures for obsolete materiel.  No further action required.”

	C17.3.7.  DLA Disposition Services Discrepancies

		C17.3.7.1.  Dollar Value Greater Than $100.  Receiving activities will submit an SDR for discrepancies specified above in shipments to and from DLA Disposition Services Field Offices when the dollar value is greater than $100 per line item.

		C17.3.7.2.  Exception.  Activities will submit a discrepancy for overages and shortages in shipments of controlled inventory items regardless of dollar value.

		C17.3.7.3.  DLA Disposition Services and DLA Disposition Field Office SDR Procedures.  During the receiving process, if the DLA Disposition Services Field Office identifies a supply discrepancy, an outgoing SDR will be generated consistent with Chapter 16.  

	C17.3.8.  Discrepancies in Item Unique Identification (IUID) Data.[footnoteRef:11] [11:  Refer to ADC 1030.] 

		C17.3.8.1.  Serial numbers are mandatory for all serially managed items to include capital equipment and UIT Programs.  Report supply-related discrepancies involving IUID under DoD IUID Supply policy.  Pending full transition to DoD IUID Supply policy using the UII, SDRs identifying discrepancies in unique identification will be prepared citing both UII and/or corresponding serial number, when both are available.  Until UII is implemented as the primary identifier under full IUID implementation across the Department of Defense, the human readable serial number is mandatory in the SDR for discrepancy scenarios identified in this chapter, as is the UII when available.  The intent is to capture both serial number and UII, however not all items are marked and the UII cannot be considered a mandatory element at this time.  That is the context in which the term “serial number/UII” is used in this chapter.[footnoteRef:12]  Applicability under DoD IUID Supply Policy is identified by NSNs with IUID Indicator Yes (Y).  For missing or mismatched unique item identification of items that are DoD serially-managed/tracked, use the applicable U-series discrepancy code (see Table C17.T1.).  Report missing or mismatched materiel identification unrelated to IUID (e.g. missing or mismatched part number or NSN) using the applicable packaging (labeling/marking), documentation, technical data, or wrong item discrepancy code(s).  Report quality-related deficiencies involving IUID, (e.g., improperly constructed unique item identifier within the 2D data matrix), using Product Quality Deficiency Report (PQDR) procedures under DLA Regulation 4155.24, et al. [12:  Refer to ADC 1244.] 

		C17.3.8.2.  In order to facilitate reporting of discrepancies, particularly those involving discrepancies where inclusion of the serial number/UII is required/desirable, the SDR submission process should be integrated with the receiving process, allowing receipt data to be captured once and reused.  IUID discrepancies may be related to the packaging label, including automated information technology (AIT) readable content; the item marking, including AIT readable marks; supply documentation; the due-in record; and/or a mismatch between the item and any of these.  When reporting an IUID missing or mismatch (including shortage, overage, and incorrect item) the serial number/UII may be specifically identified as applicable to items received or not received using the IUID Received/Not Received Indicator.  If the SDR does not include the indicator, the UII and/or serial number will be interpreted as applicable to the materiel received.  Pending integrated capability to support IUID reporting in SDRs, attachment files may be uploaded/transmitted to DoD WebSDR to identify UIIs and/or serial numbers UIIs.[footnoteRef:13] [13:  Discrete data entries (rather than attachment files) for serial number/UII identification are required under ADC 1244 beginning December 2018. ] 

		C17.3.8.3.  Discrepancies involving missing or mismatched unique identification identified during receipt of new procurement materiel (including direct vendor delivery (DVD)) must be reported prior to acceptance.  Receipt new procurement materiel requiring IUID or serial number tracking in a suspended condition pending resolution.  

		C17.3.8.4.  Report missing serial number/UII in DLMS shipment status transactions (Discrepancy Code U04) for shipments of serially managed items under an established UIT program.

		C17.3.8.5.  The materiel owner is responsible for IUID Registry updates associated with discrepancies for mismatched IUID information.

		C17.3.8.6.  To comply with Financial Improvement and Audit Readiness (FIAR) requirements regarding accountability and management of materiel, serially managed items under an active UIT Program requires serialization data and owner visibility.  Thus, serially managed items under an active UIT program received without a serial number will not only require an SDR but will stop the equipment in the supply chain until a serial number is identified and the materiel is marked.  If the storage activity cannot determine the serial number using the associated shipment notice and marks/labels on the item or packaging, the storage activity will report the receipt in a suspended condition) and submit the SDR to the owner citing the Discrepancy Code U13 and other applicable discrepancy code(s) with clarifying remarks.  The materiel owner is responsible for determining the appropriate serial number(s), ensuring no duplicates and provide disposition for marking the item.  Chapter 30 provides instructions on how to identify and resolve serial number duplication scenarios.  If DLA Distribution Center finds duplicates or other discrepancies with the serial numbers provided by the Owner, the DLA Distribution Center will return the SDR response for reconsideration and resolution.

				C17.3.8.6.1.  For inter Component shipments and returns to a storage activity, the shipping documentation may be available for validating serialization data; however, it does not substitute or supersede the requirement for the shipping activity to provide the shipment status transaction in advance.  A UIT serially managed item received without a corresponding shipment status will result in the generation of an SDR with Discrepancy Code U15 and the materiel will be suspended.  Compliance with this requirement will ensure the receiving activity can establish a due-in in advance and confirm the serialization data at time of receipt.  

					C17.3.8.6.2.  The receiving activity will prepare a due-in using the information available from the shipment status and/or the PMR transactions.  The document number is the data element that connects the Shipment Status transaction and the incoming shipment.  When the serialization data does not match or is missing, a systemic trigger is necessary to alert the user performing the receipt that a SDR is required.  The receiving activity will then follow the SDR process and suspend the materiel using Discrepancy Code U15.  When the discrepancy is solely due to missing a shipment status/materiel returns, the shipping activity will respond with SDR Disposition Reply Code 105 or 130 as appropriate.

			C17.3.8.7.  Discrepancies involving missing/illegible serial number markings must be reported at time of receipt via SDR.  A data plate is required for all serially managed items destined to remain in the supply chain.  Temporary tags are authorized for items intended for disposal or maintenance.  The materiel owner is responsible for permanently embedding data plates when required due to the type of item (e.g., small arms/light weapons).  

				C17.3.8.7.1.  When a UIT program item is received at a DLA Distribution Center and does not have serial number marking, the following process applies.  The DLA Distribution Center receiver will submit an actionable SDR to the owning activity, citing Discrepancy Code U13 and other applicable discrepancy code(s) with clarifying remarks.

						C17.3.8.7.1.1.  The owning activity (action activity who received the SDR) will respond to the SDR with the appropriate serial number(s)/UII using one of the two following SDR reply codes:

						C17.3.8.7.1.2.  SDR Reply Code 611 (Reidentify unique identification (UII/serial number) and return to stock).  This option is available for items that do not require a permanent marking embedded into the item or will be subsequently sent to maintenance.  If going into maintenance, DLA Distribution will need to temporarily tag the items.  If the material owner (action activity) determines they need to send someone to a DLA storage activity to physically mark the material; the material owner (action activity) will need to coordinate with the appropriate DLA Distribution Head Quarter (HQ) point of contact (POC) to facilitate the site visit. 

 				C17.3.8.7.1.3.  DLA Distribution will keep the SDR in an open status, until the items are physically marked.  The material owner (action activity) will NOT respond to the SDR using Reply Code 611 until after they have conducted the site visit and physically marked the material.  

				C17.3.8.7.1.4.  Once the items have been physically marked by the material owner (action activity) and the owner (action activity) replies with Reply Code 611, DLA Distribution would follow normal procedures to close the SDR and generate the completion notification.  

 				C17.3.8.7.1.5.  SDR Reply Code 602 (Item(s) unsuitable; destroy.)  This option will require DLA Distribution to temporarily tag the items prior to shipping to DLA Disposition Services.  Upon receipt of the SDR response, the DLA Distribution Center stock readiness team will process the response by assigning the serial numbers using temporary tags (serial number only). 

				C17.3.8.7.1.6.  If the DLA Distribution Center stock readiness team finds discrepancies with the serial numbers provided by the material owner such as duplicates, the DLA Distribution Center will return the SDR response to the materiel owner for reconsideration and resolution.  

						C17.3.8.7.1.6.1.  Reserved 

						C17.3.8.7.1.6.2.  Reserved 

		C17.3.8.8.  SDRs prepared for a mismatch with no discrepancy in quantity or stock number received will include the serial number/UII identifying the mismatch.  That is, identify the serial number/UII for item(s) received that do not correspond to the shipment status, as well as the serial number/UII for the expected item(s) NOT received.  Cite the IUID discrepancy code.

		C17.3.8.9.  SDRs prepared for a shortage of items identified by IUID Indicator Y will include the serial number/UII for the item(s) NOT received based upon comparison with the shipment status (when available) or shipping documentation.  Cite the applicable discrepancy code for the shortage and the IUID discrepancy code.

		C17.3.8.**10**.  SDRs prepared for an overage of items identified by IUID Indicator Y will include the serial number/UII for the extra item(s) received based upon comparison with the shipment status (when available) or shipping documentation.  Serial number is mandatory for capital equipment candidates and UIT program items.  Cite the applicable discrepancy code for the overage and the IUID discrepancy code.

		C17.3.8.11.  SDRs prepared for receipt of an incorrect item where the item received is identified by an NSN with a IUID Indicator Y will include the serial number/UII  for the wrong item.  Cite the applicable discrepancy code for the incorrect item receipt and the IUID discrepancy code

		C17.3.8.12.  SDRs prepared for receipt of a condition discrepancy (i.e., the materiel condition is misrepresented or otherwise deviates from the original condition on the shipping document or the prepositioned materiel receipt) where the item received is a serially managed item will include the serial number/UII for the discrepant item.  Cite the applicable discrepancy code for the condition discrepancy and the IUID discrepancy code.

		C17.3.8.13.  SDRs reporting non-compliant serial number will be reported using Discrepancy Code U14 (Serial number convention invalid).  This code is distinguished from other similar U-series discrepancy codes in that this code specifically informs the owner that a serially managed item was received with an invalid serial number convention – the serial number maximum field length may not exceed 30 characters and may only include alpha numeric  (A-Z, 0-9), dashes and forward slashes.  Spaces are not allowed.  The receiving activity must annotate the non-compliant serial number in the SDR comments field since the DLMS 842A/W SDR transaction will not allow for an invalid serial number convention to be transmitted in the transaction.

		C17.3.8.14.  Table C17.T1 provides a decision matrix for the principal scenarios when an SDR is required based on missing or mismatched IUID data during receipt processing.

Table C17.T1. SDR Decision Matrix: Discrepant IUID Data

(For SDRs, serially managed capital equipment and UIT items follow the same guidance)

		C17.3.8.15.  Table C17.T2 identifies selected discrepancy scenarios for UIT program items that DoD WebSDR will edit for missing serial number on the SDR submission.  Rejection criteria is for specific discrepancy codes as shown and is applicable regardless of originator or action activity.  This does not preclude the inclusion of serial numbers for other discrepancies involving UIT program items.[footnoteRef:15] [15:  Refer to ADC 1244] 

C17.3.9.  Transshipper Prepared SDRs.  CCPs will prepare an SDR to report packaging discrepancies as described below.

		C17.3.9.1.  Supply Discrepancies Requiring Transshipper Reporting.  SDRs will be prepared for supply discrepancies related to hazardous shipments and non-compliant wood packaging material (WPM).  Refer to the D5-series[footnoteRef:16] for common transportation documentation discrepancies.  Refer to P2-series and P3-series for packaging (including WPM) and labeling (including Military Shipping Label (MSL)) discrepancies.  Select the most specific discrepancy code available and use SDR remarks to further clarify the nature of the problem.  [16:  Refer to ADC 317A.  Note:  Discrepancy Code H6, Shipper’s Declaration for Dangerous Goods is re-assigned to the D series code list in DLMS Volume 2, Appendix 7.28.] 

		C17.3.9.2.  CCP SDRs for Non-Compliant WPM.  CCPs will notify ICPs that their OCONUS WPM shipment is not in compliance with DoD 4140.65-M, “Compliance For Defense Packaging: Phytosanitary Requirements for Wood Packaging Material (WPM),” and ISPM 15 requirements.  The expiration of the DoD Pest Free mark and the requirement to use the International Plant Protection Convention  (IPPC) stamp to indicate WPM compliance brings the requirement to remediate all noncompliant WPM destined for OCONUS.  WPM shipments can be remediated by repackaging or by use of a heat chamber.  SDRs will be prepared for noncompliant shipments received by the CCPs.  Noncompliant shipments will not be held for disposition.  Shipments on noncompliant pallets will immediately be re-palletized onto compliant wood pallets.  Boxes, crates, etc. will be sent to a remediation area through use of DSS packing, packaging, preservation & marking (PPP&M) process, and placed in a Hold Status W until remediation is completed.  SDRs will be generated for both pallet replacements and box/crate rebuilds.  The SDR will normally cite SDR Action Code 3B, Discrepancy Reported for Corrective Action and Trend Analysis.  No reply is required.  This type of SDR does not require a response from the source of supply or other designated activity; but is provided so that the source of supply may take appropriate action with the Component shipper or vendor and track trends and associated repackaging costs.  The SDR will be auto-closed in the DSS, based on the P215 discrepancy code (indicating noncompliant WPM), and will not be reopened.  The point of contact (POC) may be contacted if SDR was sent to the wrong supply source.  Labor and material to remediate will be charged to a CCP Cost Code.  If a frustrated shipment requires an expedited SDR reply to the CCP, use of Action Code 3A, Transshipper (Aerial/Water port or CCP) Requests Expedited Response; Shipment Frustrated, is authorized.

		C17.3.9.3.  Aerial or Water Port Prepared SDRs.  The port (identified by DoDAAC) will prepare an SDR to report packaging or documentation discrepancies as described above.  If the corrective action can be taken immediately, (e.g., as a result of off-line communication with the shipping activity,) and the port  is not awaiting the action activity response, the SDR will cite Action Code 3B, Discrepancy Reported for Corrective Action and Trend Analysis.  No reply is required.  If the shipment is frustrated awaiting action activity response, the SDR will cite Action Code 3A, Transshipper (Aerial/Water port or CCP) Requests Expedited Response; Shipment Frustrated.  The submitter will use the remarks block to clarify desired actions and shipment information where specific data fields in the SDR are not sufficient.

		C17.3.9.4.  Expected Data Content for Transshipper SDRs.  These SDRs will be identified by Discrepancy Document Type Code W and will include the number and type of discrepant pieces.  The transportation control number (TCN) will be the primary reference number for operational processes.  If the shipment is received at the CCP without a TCN, one will be assigned in accordance with the DTR.  SDRs prepared at the shipment level may include multiple items, or there may not be due-in or documentation available.  Because a document number is mandatory within DoD WebSDR, the CCP or other transshipment activity may need to generate a document number based upon the submitter’s DoDAAC if multiple documents are included or the original document number is unavailable.  Action activities will not reject Transshipper SDRs for unmatched document numbers without researching by TCN and other identifying shipment information.  Multiple document numbers, when available, will be recorded in the SDR remarks.  Materiel identification may be identified as “UNKNOWN” or “MIXED” (multi-pack or other consolidation of different items).  When this occurs, quantity and U/I will be left blank.  Identification of hazardous materiel shipments is mandatory using the hazardous materiel indictor (Yes/No).  When possible, the shipper will be perpetuated from the due-in notification (e.g. DLMS (US TRANSCOM-maintained) 856A) or shipping documentation.  The owner/manager (source of supply) will be identified as the ICP/IMM that directed the shipment when applicable.

	C17.3.10.  SDR Distribution.  This section addresses those organizations that must be identified on the SDR as initial action recipient or as receiver of information copies.  Such determination is based upon the type or origin of the shipment involved, the DoD Component that directed shipment, and the type of discrepancy.  Applicable action activities include ICP, ILCOs, DLA CCPs, and DLA Distribution Centers.  For items requiring special handling and/or reporting, such as controlled inventory items, the responsible action activity must ensure additional distribution of the report as required.  The submitter will provide a copy of the Serious Incident Report, or other Component-required report, regarding controlled inventory items believed to be stolen, lost, or unaccounted for.  Do not mail hard copy documents when access to an electronic SDR application and associated supply information is available.  Where electronic attachment capability is not available, users should supplement their original SDR submission via WebSDR correction process attachment functionality to upload information not readily available to the action activity and photographic/pictorial evidence of the discrepancy.  

		C17.3.10.1.  Security Assistance Shipments.  All Security Assistance SDRs will be sent directly to the applicable ILCO for initial screening and processing.  SDRs may be submitted to the ILCO via SF 364, Report of Discrepancy, or authorized electronic/automated formats.  The ILCO will forward the SDR electronically to the appropriate action activity.  Security Assistance SDRs bypassing the ILCO will not be accepted by DoD and participating Agency action activities.

		C17.3.10.2.  SDR Distribution for Shipment (Item) Discrepancies

			C17.3.10.2.1.  DoD Originated Shipments.  Customers will normally direct SDRs to the DoD shipping activity with exceptions and specific business rules as follows.

				C17.3.10.2.1.1.  Army Directed Shipments  

						C17.3.10.2.1.1.1. Army Managed Items (AMI) and Non-Army Managed Items (NAMI) Shipments.  Direct initial action to the source of supply.  The only valid Army action activity/source of supply RICs are AKZ, A12, A35, AJ2, AP5, B14, B16, B17, B46, B64, and B69.  Additionally, SDRs may be addressed to the Army Program Managers for total package fielding (TPF) using RICs AER, AEL, AFK, AEV, AF8, AEU, AEW, AFL, AF9, AFC, and BAM.  WebSDR will pass SDRs addressed to these activities transactionally to the Army’s Logistics Modernization Program (LMP).  WebSDR will provide an information copy to DLA Distribution Centers when the shipping activity is identified.[footnoteRef:17]  These information copies will be used for metrics and correction of inventory records where applicable; DLA Distribution Centers are not authorized to respond to the submitter via SDR reply.  Army users are advised not to submit SDRs to single stock fund (SSF) site RICs or to Army shipping depot RICs via DoD WebSDR.  There are currently no WebSDR interfaces to support SSF sites or Army shipping depots.  The Army action activity can be determined from the shipping documentation (e.g., the RIC in record position 67-69 of the DD 1348-1A), or as part of a  NIIN/NSN or Part Number search in WebFLIS.  Note that the FLIS source of supply will not apply if the requisition was filled by AJ2, Non-Army Manager Item (NAMI) source of supply. Services ammunition users may send SDRs to B14 for ammunition commodity discrepancies or directly to those Army ammunition storage depots listed below. [17:  Refer to ADC 1102, implementation delayed.] 

						C17.3.10.2.1.1.2.  Army Ammunition Storage Activity Shipments.  WebSDR will pass SDRs addressed to the following Army ammunition storage activities transactionally to Army LMP:  Anniston Munitions Center (BAD), Pine Bluff Arsenal (BA9), Hawthorne Army Depot (BD2), Letterkenny Munitions Center (BKD), Crane Army Depot (BB2), McAlester Army Depot (BC2), Tooele Army Depot (BTD), and Blue Grass Army Depot (B47).  The Army will ensure visibility of these SDRs to Army ammunition storage depots that manage Army, Service common, and Service unique ammunition stock.

						C17.3.10.2.1.1.3.  Global Combat Supply System-Army (GCSS-Army) Inter-Service Lateral Redistribution of Retail Assets By Inter-Service Agreement.  The Army requires that these SDRs be processed by the AMI or NAMI ICP regardless of the FLIS-designated manager or the Army Supply Support Activity (SSA) providing lateral support.  Any SDRs directed to the SSA will be transmitted to the default Army e-mail account pending a system interface with DoD WebSDR or alternative guidance.  The Army will ensure that these SDRs will be forwarded to the appropriate Army action activity and coordinated with the LMP for financial resolution when applicable.

				C17.3.10.2.1.2.  Total nonreceipt SDRs 

						C17.3.10.2.1.2.1.  Total Nonreceipt of  Security Assistance Shipments from DLA Distribution Centers.  ILCOs will forward SDRs directly to the DoD shipping depot regardless of implementing Component.  Where the shipping depot is unknown, forward to the ICP/IMM. 

						C17.3.10.2.1.2.2.  Total Nonreceipt of Materiel Shipped via DLA CCP.[footnoteRef:18] [18:  Refer to ADC 1241.] 

							C17.3.10.2.1.2.2.1.  Customers should direct SDRs to the CCP for research.  Include proof of delivery (POD) to the CCP when available.  If the SDR bypasses the CCP, the source of supply will forward the SDR to the CCP for research using Reply Code 504 including POD if not provided on the initial submission.

							C17.3.10.2.1.2.2.2.  The CCP will reply to the customer with status of the shipment if no further action is needed.  WebSDR will provide a copy of the SDR to the source of supply.  If the CCP cannot provide status or if POD is not available, the CCP will annotate the SDR reply to the submitter with this information and forward to the source of supply for further research using the appropriate 300-series forwarding reply code.  

							C17.3.10.2.1.2.2.3.  After CCP response, the source of supply will review CCP findings and conduct additional research as needed (e.g. using Integrated Development Environment/Global Transportation Network Convergence (IGC) or contacting the vendor, if necessary).  As a result, the source of supply may return the SDR to the CCP for further research including the POD (if not previously attached).  Alternatively, the source of supply may provide credit based upon customer-reported nonreceipt and other findings.  By exception to standard procedures, GSA policy does not authorize credit when proof of delivery to the CCP is available.

				C17.3.10.2.1.3.  Defense Logistics Agency (DLA) Directed Shipments.  Initial action to the DoD shipping activity.  When the customer creates a Document Type 7 and incorrectly sends it to the ICP, it requires the ICP to respond using forwarding Reply Code 504, redirecting the SDR to the shipping distribution center.  When the shipment originated from a DLA Distribution Center and the customer incorrectly creates a Document Type 6 SDR, and directs the SDR to the ICP for action, the ICP will reject SDR using Reply Code 939.  WebSDR will provide an information copy to the ICP when identified on the SDR and when the SDR response is provided by the shipping activity.  The ICP will provide additional response to the submitter with final resolution and providing financial action when applicable.  For contact information for DLA action activities refer to the DLA Customer Handbook.  For assistance contact the Customer Support - Virtual Contact Center at 1-877-352-2255 (1-877-DLA-CALL) or DSN 661-7766 or e-mail: dlacontactcenter@dla.mil; or the DLA Distribution Customer Support Team at DDC.ISDR@dla.mil.

				C17.3.10.2.1.4.  GSA Directed Shipments

						C17.3.10.2.1.4.1.  GSA shipped from a GSA Supply Distribution Facility.  Initial action to GSA (GSA National Customer Service Center).

						C17.3.10.2.1.4.2.  GSA shipped from a DLA Distribution Center. Initial action to the shipping activity.  DoD WebSDR will provide a copy to GSA.

 						C17.3.10.2.1.4.3.  Purchases made by DoD Activities from Federal Supply Schedules or GSA Open-End Contracts.  The customer may coordinate off-line with the supplier for resolution.  Identify GSA to receive the SDR under the following conditions:

· repetitive discrepancies,

· cases of dispute that cannot be resolved between the ordering office and the supplier, or

· product quality deficient materiel in Security Assistance shipments where GSA has provided inspection at source.

				C17.3.10.2.1.5.  All Other DoD Component or Participating Agency Directed Shipments.  Initial action to the DoD shipping activity.  Where the shipping activity is not known, forward to the ICP/IMM.  WebSDR will provide an information copy to the ICP, when identified, and/or the SDR response is provided by the shipping activity.

			C17.3.10.2.2.  DoD Central Procurement and Direct Vendor Delivery.  For materiel procured centrally by a DoD Component ICP, distribution will be as follows irrespective of the point of inspection and acceptance.

				C17.3.10.2.2.1.  Initial action to the procuring ICP for internal distribution to the contracting officer or designated personnel. 

				C17.3.10.2.2.2.  Copy to office administering the contract/purchase order, if different from the purchasing office, except as otherwise prescribed for purchases made from federal supply schedules or GSA open-end contracts below.  If not identified on the SDR, the initial action activity may forward as appropriate.  When the Defense Contract Management Agency (DCMA) is identified as the Contract Administration Office (CAO), DoD WebSDR will provide an information copy of the initial submission and subsequent SDR transactions to DCMA.[footnoteRef:19] [19:  Refer to ADC 1052.] 

		C17.3.10.3.  Materiel Returns

			C17.3.10.3.1.  Use PMR or shipping documentation to identify the owner, otherwise, initial action to manager’s ICP.

			C17.3.10.3.2.  Copy to shipping activity.

		C17.3.10.4.  	Shipments to DLA Disposition Services

			C17.3.10.4.1.  Initial action to the turn-in activity, as identified on the defense turn-in document (DTID) (DD 1348-1A, Block 2).  The SDR will be sent directly to the generator’s e-mail address when available as the result of an electronic turn-in (DLA Disposition Services ETID).  If ETID e-mail address is not available, WebSDR distribution will be to the turn-in activity SDR monitor or Component-sponsored SDR application. 

			C17.3.10.4.2.  If distribution via ETID e-mail address, a WebSDR generated copy will also be provided to the turn-in activity SDR monitor or Component-sponsored SDR application.

			C17.3.10.4.3.  Partial Weapon Turn-in.[footnoteRef:20]  When SA/LW materiel is received, DLA Disposition Services DEMIL Center, Anniston, Alabama must identify the SA/LW by a valid NSN or DoD SA/LW Registry assigned management control number (MCN), in addition to a separate serial number for each individual weapon. [20:  Refer to ADC 1175.] 

				C17.3.10.4.3.1.  Shipments of a partial weapon identified under the whole weapon NSN but lacking the required list of missing parts or a signed statement certifying that the weapons have missing parts are discrepant using Discrepancy Code D301.  DLA Disposition Services will send an SDR to the turn-in activity and attempt to contact the turn-in activity off-line.  DLA Disposition Services will hold rejected serialized weapons/weapon parts in a segregated location pending resolution of the SDR.  If the DLA Disposition Services does not receive a reply to the SDR with the updated documentation or is otherwise unable to resolve the discrepancy within 25 days, DLA Disposition Services will return the partial weapons to the turn-in activity.  If DLA Disposition Services cannot locate the turn-in activity, DLA Disposition Services will contact DoD Registry for resolution/disposition instructions or referral to the owning Service.

				C17.3.10.4.3.2.  If the SDR is resolved via off-line communication, the DLA Disposition Services will update the SDR via the correction process to change the action code to indicate an informational SDR (Action Code 3B), and document the resolution in the SDR remarks.  This will allow all parties involved to recognize that no further action is needed on the SDR.  The SDR will close automatically within the Distribution Standard System after these updates are processed.  

				C17.3.10.4.3.3.  A turned in weapon subcomponent, such as the upper receiver, butt stock assembly, barrel assembly, etc., without its matching serialized receiver will NOT be accepted under its end item NSN under any circumstances.  When identifying the serialized receiver on a weapon, the term “serialized receiver” refers to the receiver that displays or holds the serial number of a particular weapon.  DLA Disposition Services will receipt the subcomponent under the applicable materiel identification for the subcomponent(s) and submit an SDR to the turn-in activity for corrective action (Action Code 3B) indicating both an item identification error and an IUID mismatch.  The SDR will alert the turn-in activity to correct serialized item tracking registries as needed.  It is the responsibility of the turn-in activity to correct the SA/LW Registry and IUID Registry as applicable.  DLA Disposition Services will mutilate and/or destroy non-serialized weapon parts consistent with the demilitarization code requirements, local policies, laws, and regulations.  The SDR will close automatically within the Distribution Standard System with no further action.

		C17.3.10.5.  Shipments from DLA Disposition Services.  Initial action to the Disposition Services Field Office.  If not known, SDRs may be directed to DLA Disposition Services (RIC S9D).  SDR users will no longer submit DLA Disposition Services Recycling Control Point SDRs (RIC S9W).

		C17.3.10.6.  	Local Purchase.  Follow DoD Component guidance.  A copy will be furnished the Government inspector when inspection is at origin.  DoD WebSDR does not support SDRs applicable to local purchase discrepancies.

		C17.3.10.7.  Industrial Plant Equipment Shipments.  DLA, will review all SDRs from the initiator, make further distribution as necessary, request appropriate action from the consignor, and provide the initiator with replies from the consignor and other closeout action.

		C17.3.10.8.  SDR Distribution for Packaging Discrepancies

			C17.3.10.8.1.  Contractor/Vendor Shipments 

				C17.3.10.8.1.1.  Initial action to the ICP.

				C17.3.10.8.1.2.  Copy to Contract Administration Office (CAO).   For direct vendor delivery discrepancies, the ICP must ensure the contract information is included in the SDR reply if not provided by the submitter.  Based upon entry of the PIID or PIID call/order for procurement source shipments, DoD WebSDR will retrieve the CAO DoDAAC from the EDA System contract files and update the SDR accordingly.[footnoteRef:21]  When the contract is administered by the Service or Agency issuing the contract, the ICP is responsible for insuring the CAO has access to the SDR information.  When DCMA is identified as the CAO, DoD WebSDR will provide an information copy of the initial submission and subsequent SDR transactions to DCMA. [footnoteRef:22] [21:  Refer to ADC 1268.]  [22:  Refer to ADC 1052.] 

				C17.3.10.8.1.3.  Copy to Administrative Contracting Office (ACO).  The initial action activity will furnish a copy of the SDR to the ACO (or otherwise provide visibility), if a different organizational entity is involved.

				C17.3.10.8.1.4.  Copy to Procuring Contracting Office (PCO).  The initial action activity will furnish a copy of the SDR to the PCO (or otherwise provide visibility), if a different organizational entity is involved.

				C17.3.10.8.1.5.  Copy to Component Packaging Monitor.  SDRs for Air Force ICP-directed shipments will be provided to the designated Air Force ICP packaging monitor by DoD WebSDR under Component-unique routing rules. 

			C17.3.10.8.2.  DoD Originated Shipments

				C17.3.10.8.2.1.  Initial action as indicated above for DoD originated shipments.

				C17.3.10.8.2.2.  Information copy to be provided systemically by DoD WebSDR per Component guidance.  SDRs for Air Force ICP directed shipments will be provided to the designated Air Force ICP packaging monitor.		

		C17.3.10.10.   The Exchange (formerly Army and Air Force Exchange Service (AAFES)).  SDRs may be routed to the Exchange via DoD WebSDR to the source of supply RIC.

	C17.3.11.  Follow-Up on Original SDR

		C17.3.11.1.  Table C17.T3 identifies the SDR Follow-up Time Standards.  The time standards are displayed in calendar days unless specified.

		C17.3.11.2.  Submitter Responsibility (including Security Assistance customers).  When the action activity does not respond to an SDR within the prescribed time standards specified in this chapter, the submitting activity must provide an SDR follow-up.  Follow-ups must be directed to the last identified action activity when the original SDR was forwarded by the original recipient.  Cite the SDR report number of the original report.  For transactional exchange, include the WebSDR-assigned control number when known.  Follow-up transactions should include all data that was in the previous SDR submission.  POC information for the follow-up and the follow-up date are required.  A narrative entry is required to provide clarification for the follow-up.  The submitter or DoD WebSDR must forward the follow-up to the current action activity when SDR history indicates a or updated action activity has been identified (such as based upon prior Reply Code 504 or a 300-series reply code).

			C17.3.11.2.1.  SDR submitters may follow-up on Document Type Code 7 SDRs sent to storage activities after 31 days from the submission date have elapsed from the time of the submission date regardless of any interim responses provided by the storage activity.  This will not ensure full resolution of the SDR, but will help identify a communication problem before the entire SDR response period has elapsed (i.e. depot and source of supply processing time).

			C17.3.11.2.2.  SDR submitters may follow-up on all other Document Type Code SDRs (Except Type W, Action Code 3A, and Disposition Service SDRs) on day 56 from the original submission date when no response has been provided.  

			C17.3.11.2.3.  If the action activity provides an interim response, the submitter can still generate the initial follow up on day 56 and a maximum of two additional follow-ups every 31 days thereafter. 

 			C17.3.11.2.4.  After three follow-ups, DoD WebSDR will block transmission of a fourth follow-up and request that the submitter contact the action activity directly.

			C17.3.11.2.5.  In response to interim Reply Code 520 indicating suspected Counterfeit Materiel/Unauthorized Product Substitution (CM/UPS) materiel may be suspended for an extended period, the storage activity will limit systemic follow-up requests to once every 12 months.  There will be no limit on the follow-ups allowed.

			C17.3.11.2.6.  In response to interim Reply Code 521 indicating suspected product quality deficient materiel may be suspended for an extended period of time, the storage activity will not follow-up for response until 120 days have elapsed, and then subsequent follow-ups should be sent every 60 days.  No more than three response/follow-up transactions per SDR will be allowed.

			C17.3.11.2.7.  By exception, DLA Disposition Services will not generate SDR follow-ups for turn-in of partial weapons lacking the required list of missing parts or a signed statement certifying that the weapons have missing parts.  Turn-in activities are required to respond to the SDR within 25 days.  After the 25 days, DLA Disposition Services will attempt to contact the turn-in activity off-line to achieve resolution.  The lack of a positive resolution in a timely matter will cause the return of the shipment to the turn-in activity.  DLA Disposition Services will contact the Army Logistics Data Analysis Center (LDAC) for resolution/disposition instructions or referral to the owning Service as necessary in order to identify the turn-in activity or alternate recipient.  Subsequently,****LDAC****may contact others to include item managers as deemed necessary to provide resolution.  Upon resolution of the SDR or when the SDR resulted in the return of the shipment, DLA Disposition Services will update the Action Code from 3C, to 3B and update the remarks appropriately to ensure the SDR is closed out.

		C17.3.11.3.  Action Activity Procedures.[footnoteRef:23]  Action activities must respond to submitter follow-ups in a timely manner as shown in Table C17.T3.  Action activities are encouraged to be responsive to submitter follow-ups in a positive way whenever possible.  Rejection should be reserved for unduly late follow-ups where the elapsed time impedes proper research.  Follow-ups on open SDRs submitted prior to completion of the authorized response time or after a significant delay may be rejected using the assigned reject reply code.  The preferable response to follow-ups submitted after the SDR has been closed is retransmission of the original response.  [23:  Refer to ADC 1066.] 

			C17.3.11.3.1.  Upon receipt of the follow-up, the action activity will ensure that a response with disposition or interim status is provided within 30 calendar days.

			C17.3.11.3.2.  Action activities may reject premature follow-ups using SDR Reply Code 933.

			C17.3.11.3.3.  The applicable ILCO is responsible for rejecting FMS SDR follow-ups considered outside acceptable time standards.

	C17.3.12.  Responsible Action Activity Response to an SDR

		C17.3.12.1.  Procedures

			C17.3.12.1.1.  Processing.  Responsible action activities will process all discrepancy reports under the policies and procedures set forth in this publication and the DoD Component implementing regulations.  Responsible action activities include all activities required to take action on a reported discrepancy.  Action activities will consider the associated MRA during validation of SDRs.  Conflicting information will be investigated as appropriate.

			C17.3.12.1.2.  Replies.  Action activities will reply to SDRs***/SQCRs*** by submission of a DLMS 842A/R to WebSDR or via direct WebSDR input.  SDR replies will indicate the appropriate disposition, (e.g., acknowledgement of the report, disposition of the materiel, validation of the report with authorization of financial adjustment, and/or instructions for repackaging, repair or other types of corrective action).  ***SDR replies made by the action**activity**may require multiple dispositions under certain circumstances***

***C17.3.12.1.2.1. Action activities may provide multiple dispositions when appropriate and provide disposition instructions for each reply code in the remarks field citing the reply code with the associated disposition.  The responder will have to reference the reply code and specify the quantity to the corresponding disposition instructions in the remarks field in long text.***

***C17.3.12.1.2.2. In cases where the assets have Serial Numbers (S/N) or Unique Item Identification (UII) requirements, and the action activity wants to disposition by S/N or UII, they will provide in the long text the exact disposition instructions to the corresponding S/N or UII they desire in addition to the systemic disposition.***

***C17.3.12.1.2.3. When the disposition instructions exceed the capacity of the remarks field (800-character limit in WebSDR and 700 in Distribution Standard System (DSS)), the action activity will annotate in the remarks field that an email was submitted to******ddcbsmqn@dla.mil******with additional information, due to character limits. This action allows for systemic disposition and provides evidential matter for an audit trail for the disposition that was sent offline.  This email only applies to DLA Distribution Created SDR/SQCRs type 5, 8, 9, and R.***

***C17.3.12.1.2.4. When the SDR or SQCR disposition instructions require that the discrepant item(s) be shipped, the action activity must transmit the Material Release Order/Disposal Release Order (MRO/DRO) requesting movement or shipment of materiel.***

***C17.3.12.1.2.5.***SDR replies must contain the appropriate discrepancy code consistent with all information provided by the customer.  The action activity may need to update the discrepancy codes used by the customer to assign the appropriate discrepancy code for the scenario described in the SDR remarks.  The action activity will identify the disposition/status using the appropriate Reply Code (Appendix 7.28)***with detailed instructions in the remarks field.*** Action activities may include the applicable Cause Code (CN/CP/CS) in the SDR to provide better visibility of the underlying reason for the SDR; cause codes are required for SDR (Document Type Code 6/9/P/W) associated with contractor/vendor noncompliance.  Upon subsequent determination that contractor/vendor noncompliance is not applicable, (e.g., in response to a contractor challenge), the item manager must provide a new SDR reply containing Reply Code 151 (prior response is superseded) and no cause code (or a replacement cause code not associated with the contractor noncompliance).[footnoteRef:24]  Action activities will ensure that inappropriate reply codes are blocked from use when responding to transshipper SDRs (Document Type Code W).[footnoteRef:25]   [24:  Refer to ADC 1181A.]  [25:  Refer to Approved DLMS Change 317B, Action Activity Replies to Transshipper-Prepared SDRs] 

				C17.3.12.1.2.6.  New Procurement SDRs.  The action activity must complete shipment information applicable to DVD, new procurement, etc., where incomplete or inaccurate on the original report.  This includes identification of the vendor (by CAGE), PIID, and identifying shipment numbers.  When procurement information is populated by EDA interface, it will not be overridden by subsequent entries.  The submitting activity must ensure that DVD shipments are identified by Document Type Code 6.  When the customer incorrectly routes a Document Type 6 (DVD) SDR to a DLA Distribution Center, they will reject it using Reply Code 901 Transaction rejected:  Discrepancy report submitted to wrong activity.  Resubmit to the correct action activity (identified in remarks when known).

				C17.3.12.1.2.7.  Interim Replies.  Interim replies may be used to inform the submitter that an SDR has been forwarded to another organization for investigation or resolution.  ***Interim replies may also be used to request additional information required to determine final disposition.***Responsible activities must provide an interim reply where a final reply cannot be provided within the established time standards as specified in this chapter.  Failure to meet the established time standards must be caused by reasons outside the control of the ICP/IMM.  Such interim replies will identify any other action activities involved and, when feasible, indicate when additional status will be provided.  Identify the interim disposition/status using the appropriate reply code.  Interim reply codes in the 300 or 500 series are typically used to designate an interim reply involving forwarding to another organization (Appendix 7.28).  The storage activity will provide an interim reply when recommending credit be provided by the source of supply based upon a validated discrepancy.  For this purpose, the storage activity will cite Reply Code 525 and forward the SDR using the applicable 300-series applicable to the source of supply for processing.  When the storage activity forwards an SDR to the source of supply for action using a 300-series interim reply code, the SDR transaction must be formatted to identify the source of supply RIC as the action activity. WebSDR will provide notification of forwarding action to the SDR initiator.  This “forwarding” process and associated format will allow the reply transaction, including the initial responder’s reply remarks, to be transmitted to the new action activity.  WebSDR will recognize the new action activity for reports and Web responder role access.  If no coding exists to specifically identify the reasons for the delay, select Reply Code 137 and provide a clear-text explanation.

						C17.3.12.1.2.7.1.  Storage Activity/Initial Action Activity Forwarding to the Owner/Manager.  When the SDR is directed to the shipping activity (e.g., DLA Distribution Center) or other authorized initial action activity (e.g., the NAMI program office for SDRs subsequent to inter-Component lateral redistribution) for initial investigation, the specific discrepancy or Component-directed procedures may require that the SDR be forwarded to the owner/manager for final resolution.  These SDRs are forwarded using the applicable 300-series forwarding reply code.  

						C17.3.12.1.2.7.1.1.  The SDR reply transmitted by the initial action activity using a 300-series reply code is interpreted as an interim reply and may include the results of investigation and the recommended financial resolution and disposition.  It is responsibility of the owner/manager to which the SDR was forwarded to provide the final response.  The final response may differ from that provided on the interim response.

						C17.3.12.1.2.7.1.2.  A unique formatting rule is required for 300-series forwarding replies requiring the owner/manager to which the SDR is being forwarded to be identified as the RIC-To (rather than the DoDAAC of the SDR submitter normally used as the “transaction-to” activity in the SDR reply).  The RIC-To must match the owner/manager data field unless a specific exception to this rule is authorized.  WebSDR will forward the SDR to the designated owner/manager for action and a copy will be provided to the SDR submitter.  WebSDR will populate the owner/manager RIC as the Transfer-To RIC in the copy of the SDR reply sent to the submitter to specifically identify the activity to which action has been transferred.  When used by a storage activity, the submitter’s SDR application must be updated to reflect the new action activity while retaining the SDR in an open status.

						C17.3.12.1.2.7.2.  For suspected CM/UPS, the ICP/IMM may use interim Reply Code 520 (SDR materiel undergoing test/evaluation) to indicate that materiel may be suspended for an extended period of time.  Upon receiving the Reply Code 520, the storage activity will limit systemic follow-up requests to once every 12 months.  There will be no limit on the follow-ups allowed.  Once the investigation is complete, final disposition will be provided by the ICP/IMM to the storage activity.

						C17.3.12.1.2.7.3.  DLA Distribution will interpret Reply Codes 107/108 as final disposition when received on an SDR response.  All other activities will interpret Reply Codes 107/108 as interim response.  

						C17.3.12.1.2.7.4.  For suspended materiel resulting in processing of a PQDR, the ICP may use interim Reply Code 521 (SDR resolution pending PQDR review) to indicate that materiel may be suspended for an extended period of time.  Upon receiving the Reply Code 521, the storage activity will not follow-up for response until 120 days have elapsed, and then subsequent follow-ups should be sent every 60 days.  No more than three response/follow-up transactions per SDR will be allowed.  A fourth transmission of Reply Code 521 or associated follow-up will result in systemic rejection and will require manual attention.

					C17.3.12.1.2.8.  Status Updates.[footnoteRef:26]  Status updates (Transaction Set Purpose Set Code SU) are a unique form of reply prepared by the activity that submitted the SDR in response to the action activity.  This type of transaction goes directly to the identified recipient without being copied to other parties, except to specifically identified copy recipients identified in the transaction.  It is used by the storage activity to provide a status update to the ICP/IMM, often in response to an interim reply requesting clarification of the discrepancy.  Using the status update format the SDR may engage in a two-way communication with the action activity.  The status update may not be used to modify originally reported SDR data elements.  The status update may also be used to send research findings/ recommendations to the ICP/IMM (Army directed shipments only). [26:  Refer to ADC 1044A Clarification of Business Rules associated with SDR Replies for Status Update and Completion Notification. ] 

						C17.3.12.1.2.8.1.  For interim replies requesting additional clarification (Reply Code 104), the submitting activity is encouraged to respond immediately, but no later than 31 day from issuance of the request.  In a transactional response to the request for additional information, the submitting activity must provide a status update (Transaction Set Purpose Set Code SU) using Reply Code 321 to notify the action activity that the requested information is being provided or the submitter may provide clarification via off-line communication.  No more than three request/response transactions per SDR will be allowed.  A fourth transmission of Reply Code 104 or 321 will result in systemic rejection and will require manual attention.  

						C17.3.12.1.2.8.2.  When the ICP/IMM has directed reclassification of materiel by Reply Code 608 the storage activity will perform the requested action and provide status update with Reply Code 320 (Reclassification of materiel complete).  Reply Code 608 may not be used in conjunction with other reply codes.  When using Reply Code 608, the action activity must provide final disposition separately by a subsequent SDR reply after the reclassification action is reported as complete.  No more than three request/response per SDR will be allowed.  A fourth transmission of Reply Code 608 or 320 will result in systemic rejection and will require manual attention.  (Note that action activities may use Reply Code 609 to request reclassification of materiel in combination with other disposition instructions identified via additional reply code(s) and remarks.)

				C17.3.12.1.2.9.  Replacement or corrected replies.[footnoteRef:27]  The action activity may identify a replacement or corrected reply using Disposition Status Code 151 to indicate that the previous reply is superseded.  This code may be used when a closed or completed SDR (meaning a response was already provided by the action activity) is reopened or reconsidered as a result of a formal submitter request for reconsideration; as a result of new findings during action activity review/investigation; or as a result of a mistake requiring a corrected reply.   [27:  Refer to ADC 222.] 

					C17.3.12.1.2.10.  Denials.  SDRs not meeting the reporting criteria or time standards specified in this chapter or not including sufficient justification, may be considered for information only, or denied, as appropriate.  DoD ICP/IMM action activities are encouraged to accept late submissions lacking justification for trend analysis/corrective action; with associated financial credit provided at the discretion of the action activity.  The responsible activity will use the SDR response and cite the appropriate disposition/status (reply) code.  

				C17.3.12.1.2.11.  Completion Notification.[footnoteRef:28]  The submitting system will use a completion notification, identified by Transaction Set Purpose Code CN or Completion Notification in the SDR reply, will be used by the submitter to communicate with the action activity that final action has been taken on an SDR requiring a materiel disposition action.  The SDR system receiving the Completion Notification may close the SDR as well or keep it open for additional actions.  Submission of a Completion Notification is required for all SDRs prepared by the submitter, with the exception of those clearly identified as being provided for information only and requiring no action activity reply (SDR Action Codes 1H or 3B only).  Action Code 1H or 3B SDRs will automatically be placed into a closed status in WebSDR metrics.  The completion notice may not be used to modify originally reported SDR data elements.  The following sub-paragraphs provide more detailed information regarding Completion Notification processing. [28:  Refer to ADC 1044A Clarification of Business Rules associated with SDR Replies for Status Update and Completion Notification.] 

						C17.3.12.1.2.11.1.  When a Completion Notification processes against an SDR, the SDR cannot be reopened.  The Completion Notification puts the SDR into a closed status, and signifies the submitter has taken disposition action provided by the action activity.  For SDR Document Type Code 6/9/P/W, WebSDR will process a Reply (Transaction Set Purpose Code 11) only when the action activity determines the cause code needs to be updated after the vendor challenge process has been completed.  WebSDR will also allow a reply to process for all SDRs with Action Code 1H or 3B regardless of reply code.  This will allow a Cause Code, acknowledgment (103) or any other reply indicating pertinent information to process on the SDR.  All SDRs with the Completion Notification or Action Code 1H or 3B will remain in a closed status regardless of if a reply processes.  However, if the submitter generates a cancellation, the cancellation will process and place the SDR into a cancelled status. 

						C17.3.12.1.2.11.2.  Completion Notifications can only be generated by the submitting system.  WebSDR will reject with Reply Code 950 any attempt to generate a Completion Notification for an SDR that did not originate in the submitting system.

						C17.3.12.1.2.11.3.  The submitter will use a Completion Notification to inform the action activity that all action is complete using Reply Code 410.

						C17.3.12.1.2.11.4.  Under selected scenarios, the submitter will provide a completion notice without a response from the owner/manager when the SDR is automatically closed immediately after transmission.  SDR Action Codes 1B (Materiel being retained) and 1G (Reshipment not required; item to be re-requisitioned) apply.  A completion notice will be provided using Reply Code 410.

						C17.3.12.1.2.11.5.  The submitting system will prepare a completion notification using Reply Code 411 to notify the action activity that the SDR has been closed due to zero balance on record.  This will not result in an investigation as it is generally the result of processing a release order during the interim period after the SDR was prepared and prior to execution of the disposition instructions.  The action activity may close the SDR due to the materiel no longer being available.  If SDR is a Document Type 9, then the action activity must take further action to locate new procurement materiel.

						C17.3.12.1.2.11.6.  The storage activity will use a completion notification to inform the action activity that materiel disposition could not be completed due to zero balance at storage location using Reply Code 412 and clarifying remarks.  The ICP may close the SDR due to the materiel no longer being available.  If the SDR is a Document Type 9, the ICP must take further action to locate the new procurement materiel.

				C17.3.12.1.2.12.  Exceptions to the Completion Notification (CN) Requirement.  SDRs with Action Codes 1H and 3B do not require the Completion Notification and will be placed in a closed status.  When a reply is submitted, it will be posted to the record, but remain in the closed status without being systemically rejected by WebSDR.

			C17.3.12.1.3.  DoD ICP/IMM, Shipping Depot, or GSA Actions.  The ICP/IMM or shipping depot will:

				C17.3.12.1.3.1.  Review all SDRs received for processing and determine proper course of action based on available supply records and the results of investigation.  This includes SDRs which the customer has reported as requiring no action (Action Code 1H or 3B).

				C17.3.12.1.3.2.  Provide the SDR response to include disposition instructions as needed to the customer or the ILCO for Security Assistance SDRs.  The responsible activity will provide point of contact information for each SDR response.

				C17.3.12.1.3.3.  Based upon validated SDRs, the storage activity may reverse the original issue or adjust inventory balances, as applicable.  Prior coordination with the ICP/IMM is required for use of issue reversals as a means of correcting records and providing credit to the billed party.  The ICP/IMM is responsible for providing a PMR to the distribution center when the SDR reply (prepared by the source of supply or distribution center) directs return of discrepant materiel.  Based upon validated SDRs, the ICP/IMM may request that DFAS or integrated financial process authorize adjustment/credit in accordance with MILSBILLS procedures in DLM 4000.25, Volume 4, Military Standard Billing System – Finance.  Failure to comply with instructions to return discrepant materiel will result in billing for materiel received.

					C17.3.12.1.3.3.1.  The storage activity may recommend credit, debit for materiel retained, forwarding of materiel received, or materiel be retained at no charge via a reply forwarded to the source of supply (must include applicable 300-series reply code).  The storage activity response will be based upon research to include review of inventory records and physical inventory, as appropriate.  WebSDR will provide an information copy of the storage activity reply to the SDR submitter. 

					C17.3.12.1.3.3.2.  Upon receipt of a storage activity recommendation, the source of supply will conduct further research (supply and financial records) and provide a final reply to the SDR submitter indicating credit/debit is authorized or denied, as appropriate.

				C17.3.12.1.3.4.  Fulfill customer requests for expedited or replacement shipment (e.g., due to shortage, non-receipt, wrong item, or comparable discrepancy) when feasible and assets are available.[footnoteRef:29]   [29:  Refer to ADC 1091, SDRs Requesting Expedited or Replacement Shipment.] 

					C17.3.12.1.3.4.1.  Source of supply procedures must ensure replacement shipments do not incur double billing.  Therefore, credit will be provided for the original shipment when applicable.  Security Assistance customers will not be explicitly excluded from receiving a replacement shipment.  The source of supply will reprocess the customers’ requirements using the original document number suffixed to ensure separate billing and unique TCN assignment.  Source of supply processing must trigger relevant supply and shipment status.  Expedited Transportation Handling Signal 777 in response to a non-Security Assistance customer request for expedited shipment may be assigned when the original special requirements code (legacy required delivery date (RDD) field is blank or all numeric (other than 444, 555, or 777) or the RDD from the original requisition is less than 8 days from the current date.  Inclusion of the Expedited Transportation Signal 777 will normally cause the shipment to move by premium (air) transportation.  Shipments identifying Expedited Transportation Signal 777 are subject to air clearance processing whereby the air clearance authority may consult with the requisitioner to determine if the additional expense associated with air transportation is justified and potentially direct shipment movement by a surface mode. 

					C17.3.12.1.3.4.2.  If reshipment cannot be accomplished, respond with Reply Code 126 (Stock not available or will not be reshipped in response to SDR) and up to two additional reply codes, as applicable.  Customers will be required to re-requisition materiel that is still required.

				C17.3.12.1.3.5.  Provide signed evidence of shipment to the ILCO for Security Assistance SDR for non-receipt of materiel.  If this documentation cannot be provided, appropriate credit is required.

				C17.3.12.1.3.6.  Provide documentation to the ILCO that is matched to the quantity shipped for Security Assistance SDRs for concealed shortages.  Examples of such documentation are those containing size, total weight, and cube accepted by the carrier.  Credit is denied if the documentation, in conjunction with the unit weight, supports shipment of the total quantity billed.  Otherwise, appropriate credit for the differences is required.

			C17.3.12.1.4.  Disposition of Materiel.  Use the SDR response as an action reply for those discrepant conditions requiring disposition instructions to the reporting activity, (e.g., overages, damages (USPS), deficient materiel (Security Assistance), or erroneous or misdirected materiel).

					C17.3.12.1.4.1.  Customer Returns.  In many cases, logistics business rules require that the return shipment use the same document number as the related order/sale.  While this reuse may be appropriate for some materiel held at the customer’s location, it is not feasible for all situations.  When the materiel is already located in a DLA Distribution Center and no physical shipment is required to return the materiel to the original owner/manager, the current owner must not reuse (or suffix) the original document number for the Prepositioned Materiel Receipt (PMR) and Materiel Release Order (MRO) directing the return.  The responsible action activity must assign an alternative document number when materiel is located in a DLA Distribution Center and the current owner must use a ship-in-place materiel release order to direct the return.  Additionally, submitters must use the reconsideration request to ask for an alternative document number due to system constraints prohibiting reuse of the original shipment document number.**When using a new document number for the directed return of discrepant/deficient materiel, the owner/manager and the returning activity must retain an audit trail linking the old and new document number/suffix (both document numbers will be included in the PMR, Materiel Returns Shipment Status, and Receipt transactions).  The SDR reply will include the date by which the customer is requested to return the materiel to the designated location.  The ICP will require expedited return where appropriate, such as FMS classified/sensitive item returns, and overage returns for back-ordered materiel not available within another customer’s required delivery date.  Identify the return-to location by DoDAAC or CAGE (use for contractors when no DoDAAC is assigned).  Clear text addresses may be included in addition to the DoDAAC and must be included in the SDR Reply remarks text for returns directed to the contractor identified by a CAGE only.[footnoteRef:30]   The source of supply will provide reimbursement for packing, crating, handling, and transportation for directed returns under MILSBILLS procedures in DLM 4000.25, Volume 4, Finance, procedures. Use of the Defense Transportation System (DTS) for the return movement is encouraged except where use of a designated commercial carrier is more cost effective/efficient or transportation cost will be borne by another party (e.g., a vendor for return of nonconforming materiel).  As an alternative to providing transportation reimbursement, the responsible action activity may provide the transportation account code (TAC) chargeable for the transportation services or direct use of a commercial carrier by providing the paying activity’s carriers account number or a pre-paid return shipping label.  In those cases where an exhibit of the discrepant materiel is directed for return, the activity requesting this action will pay for exhibit shipment costs.  Action activities will either furnish DD Form 1348-1A for materiel to be returned or provide comparable information to accomplish the return.  A copy of the SDR and the shipment document will be included with returned materiel and annotated as an “SDR RETURN.”  When discrepant materiel is directed for return to a contractor, a hard-copy SDR including disposition instructions will be included with the shipment.  No statement adversely affecting the Government's claim will be shown on any documentation returned to the contractor.  For non-Security Assistance customers, materiel not returned as directed within 90 calendar days (if CONUS) or 120 days (if OCONUS) of the SDR reply will be billed. [30:  Include return-to location, suspense date, return document number/suffix, and (when applicable) carrier tracking number in the SDR Reply remarks text pending full implementation of discrete transaction data fields.  Refer to ADC 1249.  ] 

				C17.3.12.1.4.2.  DLA Distribution Center Returns and Transfers to DLA Disposition Services.  SDR disposition instructions to DLA disposition centers may direct disposal or shipment of discrepant/deficient materiel to another location (e.g., return to a vendor) using the appropriate SDR reply code.  This type of SDR disposition must be provided concurrent to transmission of the DLMS 940R Materiel Release Order***, which includes the option to add the corresponding distribution center number (DCN),*** in accordance with MILSTRIP procedures in DLM ***4000.25***Volume 2 for clear audit history for inventory reporting.  The DLMS MRO supports discrete identification of the carrier and the carrier account number to allow systemic recognition of this information and ensure the appropriate party is charged for the transportation of the nonconforming materiel.[footnoteRef:31] [31:  Refer to ADC 1164] 

				C17.3.12.1.4.3.  Corrective Action for Packaging Discrepancies.  Responsible activities will immediately investigate reported discrepancies and take action to prevent their recurrence.  An indication of what corrective action will normally be included in the SDR reply.  An information copy will be sent to the appropriate Component packaging monitor.  For shipments of ammunition, explosives, or other hazardous materiel, the DoD or GSA responsible activities must provide reports of corrective action in all cases.  Wherever possible, use the reply code and SDR remarks to show the corrective action.  A corrective action statement may be recorded on a separate document if additional space is required.  Statements of corrective action will also be sent when requested by the SDR initiator or upon special request of the Component packaging monitor.  For contractor originated shipments, investigating activities will send an information copy of the results of their investigation to the responsible procurement activity or commodity command.  Reports of corrective action must not be delayed pending final determination of the contracting officer when reimbursement is warranted.  Report final actions when completed.  When a Contract Administration Office (CAO) investigating activity finds corrective or preventive action is outside the scope of contract administration and requires action by the procuring activity, the SDR and investigation report will be forwarded to the procuring activity for action, with information copies to the appropriate Component packaging monitor and the initiator.

				C17.3.12.1.4.4.  Packaging Discrepancies Noted at a Distribution Center. The ICP will annotate the SDR to indicate that distribution center repackaging is approved or not approved.  If the ICP authorizes corrective action, the SDR will also show the appropriate funding/ authorization document, (e.g., job order number, Military Interdepartmental Purchase Request (MIPR) number, or SF 1080), to which the distribution center may charge the corrective action costs.  After completing corrective action, the distribution center will annotate the actual cost of the work performed, note the date completed, and forward a copy to the ICP for close-out.

					C17.3.12.1.4.5.  Corrective Action for Non-Compliant WPM.  Action activities in receipt of SDRs reporting WPM non-compliance under generic packaging discrepancy codes must reassign the discrepancy code to P215 on their responses.  This supports mandatory tracking and trend analysis using automated SDR applications.  In the event the shipment becomes frustrated, the action activity will provide instructions for corrective action in order to bring the shipment into conformance or otherwise direct remedial action.  Corrective actions and options will be based upon the circumstances of the quarantined/frustrated shipment, value and priority of the shipment, access to the shipment by DoD personnel, and location of the consignee.  Alternatives include: 

						C17.3.12.1.4.5.1.  Inspection, certification, and marking of compliant WPM,

						C17.3.12.1.4.5.2.  Replacement of the WPM,

						C17.3.12.1.4.5.3.  Consignee pick-up of the materiel only, or

						C17.3.12.1.4.5.4.  Return to origin or designated location.

						C17.3.12.1.4.5.5.  Repacking and disposal costs associated with non-compliant WPM receipts that will be the responsibility of the owner of the stock directing shipment (i.e., last identified shipper or item manager).  Photographic evidence may be requested to substantiate a claim for the recoupment of funds expended in bringing the shipment into compliance.  Where applicable, the reporting activity may submit an SF 1080, “Voucher for Transfers between Appropriations and/or Funds.”

	C17.3.13.  Time Standards

		C17.3.13.1.  Submitting SDRs and SDR Responses.  This section provides time standards for submission of SDRs and SDR responses.   When referring to number of days in this chapter, days are expressed in calendar days, not business days.

			C17.3.13.1.1.  Time Standards for SDR Submission by Non-Security Assistance Customers.  An SDR will be submitted by receiving activities and/or transshipment activities as soon as possible, but not later than the time standards listed below.  SDRs not meeting the reporting criteria or timeframes specified in this chapter that do not present sufficient justification will be processed for information only.  Routine time standards, special rules, and exceptions are:

					C17.3.13.1.1.1.  CONUS Destinations:  60 calendar days from date of shipment.

					C17.3.13.1.1.2.  Overseas Destinations:  120 calendar days from the date of shipment

					C17.3.13.1.1.3.  Discrepant Controlled Inventory Items, Arms, Arms Parts, Ammunition, and Explosives.  Report discrepancies within 24 hours of discovery for shortage, overage, wrong item, misdirected shipments.  This includes stock number materiel with a catalogued controlled inventory item code (CIIC) indicating the item is identified as classified or sensitive.  In addition, pilferable codes associated with arms and ammunition are also included (codes N and P) in this category.  

					C17.3.13.1.1.4.  Exceptions:

					C17.3.13.1.1.4.1.  Time limits do not apply to short shipment and wrong item discrepancies discovered upon opening a sealed vendor pack.  

					C17.3.13.1.1.4.2.  Time limits do not apply to those IUID discrepancies that must be reported to ensure the IUID registry and/or owner records are properly maintained.  

					C17.3.13.1.1.4.3.  Time limits for reporting discrepancies relating to contractor warranties are prescribed in individual warranty clauses and/or contracts.  Those time limits override other time limits specified in this chapter.  

					C17.3.13.1.1.5.  Late Submission.  When circumstances prevent compliance with the above time standards, (e.g., response to a tracer action reveals a supposed transportation discrepancy to be a shipping/packaging discrepancy), the reasons for delay will be provided in a brief clear-text explanation.  If appropriate, the responsible activities will honor the discrepancy report.  Reporting activities are required to send SDRs to report a shipping or packaging discrepancy even after the above submission time standard has elapsed.  If lacking justification, action activities will process for use in reporting metrics and corrective action, if appropriate.  The source of supply will not be responsible for financial resolution on late submission SDRs unless shipment history is available and the circumstances warrant such action

		C17.3.13.2.  Time Standards for SDR Response.  Responsible action activities will reply to all SDRs received within the following time standards.  Interim responses will be provided when extenuating circumstances necessitate additional processing time as authorized in this chapter.  Refer to Table C17.T3.  When referring to number of days in this chapter, days are expressed in calendar days, not business days.  

			C17.3.13.2.1.  All UIT Program items, or items classified SECRET or above, nuclear weapon related materiel (NWRM) and communication systems.  The action activity must provide an interim response or acknowledgment within 24 hours indicating that the SDR is being giving appropriate attention and will be followed by a comprehensive response within 25 calendar days (inclusive of sequential processing by multiple action activities when necessary).

			C17.3.13.2.2.  Discrepant controlled inventory items other than those classified SECRET, or above or NWRM, arms, arms parts, and explosive and inert ammunition (shortage/overage/wrong item/mismatched IUID/misdirected):  Total response time, to include sequential processing by multiple action activities when necessary, will not exceed 25 calendar days.  

			C17.3.13.2.3.  Wrong item receipts identified as controlled/sensitive or above and NWRM and unidentified items will be returned to the designated location within 30 calendar days of the SDR reply.  Sources of supply will monitor for the return and follow-up with the SDR submitter if materiel is not returned.

			C17.3.13.2.4.  Expedited processing is required for transshipper prepared SDRs requiring positive action from the action activity (e.g., preparation of SDS or verification of label/marking information.  Where forward movement of the shipment is delayed pending a response as indicated by Action Code 3A, the response time will not exceed 5 calendar days.

			C17.3.13.2.5.  Action activities receiving SDRs inappropriately will make every effort to forward to the correct action activity within 5 calendar days.  

		C17.3.13.3.  Transfers of IMM Responsibilities

			C17.3.13.3.1.  Logistics Reassignment

				C17.3.13.3.1.1. Under the logistics reassignment procedures, IMM responsibility for an item may have been transferred to another DoD Component after the date of shipment.  In these instances, a single discrepancy reported on a requisition line-item may require action and/or reply from two different DoD Components (e.g., shipper's ICP/IMM and gaining item manager (GIM)).  For example, on receipt of an incorrect item, one DoD Component could be responsible for the investigation (shipping activity) and the initiation of a billing adjustment (shipper's ICP/IMM) for the item billed (but not received), and the GIM would be responsible for providing disposition instructions for the erroneous materiel.  

				C17.3.13.3.1.2.  SDRs applicable to storage activity procurement source receipts after logistics reassignment where the LIM issued the contract will be reported to the LIM based upon the PMR.  The LIM is responsible for negotiation with the contractor for resolution of the discrepancy.  If no PMR was provided, the SDR may be reported to the item manager (the GIM).  If the GIM had no due-in for this materiel, the SDR will be rejected with Reply Code 901 (submitted to wrong source of supply) and remarks text directing resubmission to the LIM, or forwarded (via Reply Code 504) to the LIM for action.

			C17.3.13.3.2.  Response Coordination.  It is not the responsibility of the SDR initiator to forward copies of the SDR to all parties involved.  Instead, it is the responsibility of the LIM to coordinate with the GIM for an appropriate response/disposition to the submitter.  

	C17.3.14.  Reconsiderations (Transaction Set Purpose Code 15 for Non-Security Assistance Related Discrepancies.  When the SDR originator does not concur with a reply/disposition received in response to an SDR, they will forward the SDR indicating a Reconsiderations (Transaction Set Purpose Code 15) decision.  Requests for reconsideration pertaining to storage activity shipments will be forwarded to the shipping depot (exception is the Army, see C17.3.10.2.1.1); all others will be forwarded to the source of supply.  Requests for reconsideration must be submitted within 45 calendar days from date of action activity response.  Cite the SDR report number of the original report.  For transactional exchange, SDR applications will include the WebSDR-assigned control number when known.  Requests for reconsideration transactions require all data that was in the previous SDR submission.  

		C17.3.14.1.  In addition, a narrative entry is required to provide justification for reconsideration.  POC information for the new submission and submission date is required.  An SDR must be in a closed status before a request for reconsideration can be submitted (this means the action activity reply to the SDR must be recorded within the applicable Component application).  

		C17.3.14.2.  The action activity has 45 calendar days to respond to the request for reconsideration.  The designated recipient of the request for reconsideration will review all data relating to the problem and provide a response to the reporting activity with information to all concerned parties within 45 calendar days.  When the shipping depot is unable to respond to the reconsidered SDR, the depot will forward the SDR to the source of supply for resolution.  The resulting decision will be final.

	C17.3.15.  Correction and Modification/Update of Original Report

		C17.3.15.1.  Corrections to an original SDR are limited to the narrative comments, to include the ILCO comments section, repackaging corrective action cost updates, discrepant quantity, attachment uploaded as evidential matter, and action code for Disposition Service Type D with any subcategory.  A brief narrative of the correction must be included in the remarks field.  Reject unauthorized changes using Reply Code 951.  All other significant data fields will be corrected by submitting a new SDR with the correct information and cancelling the original SDR.

		C17.3.15.2.  A Correction (CO) must be generated by the distribution center upon receiving Reply Code 608 to reclassify materiel.  The correction may be sent before or after the distribution center transmits a Status Update (SU) with Reply Code 320 (Reclassification of materiel complete (Use only with Status Update.)) to reflect the updated supply condition code of the materiel on the SDR.  

	C17.3.16.  Cancellation of an Original Report.  When an SDR originator discovers a previously reported SDR is not valid or appropriate for any reason and should be withdrawn, a new SDR cancellation must be prepared to cancel the original.  Forward to all parties that received the original submission.  Cite the original report number.  SDR applications will include the WebSDR-assigned control number when known.  Point of Contact (POC) information applicable to the cancelled SDR is required.  A brief narrative description of the reason for cancellation must be included.  WebSDR programming will automatically reject any subsequent transactions submitted when an SDR record is in a cancelled status using Reply Code 907.  The only exception to this rule is when an SDR reply citing Reply Code 101, 118, or 143, is processed after the cancellation to debit or credit the customer or to indicate that a record has been previously cancelled.

	C17.3.17.  Follow-up on Credit Adjustments on SDRs.  When an action activity has indicated that a credit adjustment has been authorized, reimbursement is normally provided to the fund code/line of accounting and bill-to address cited on the original requisition.  When concerned about an apparent non-receipt of credit and 60 calendar days has elapsed, the SDR submitter should consult the bill-to finance office for verification.  When non-receipt of credit is confirmed, the financial office will submit a request for billing adjustment as prescribed by MILSBILLS procedures in DLM 4000.25, Volume 4, Finance.

	C17.3.18.  Defense Automatic Addressing System (DAAS) SDR Processing

		C17.3.18.1.  Under DLMS, SDRs are integrated with standard logistics transaction processing through DAAS.  DLMS transaction formats are available in ASC X12 EDI or EDI-based XML.  Guidance for transaction content is provided in DLMS ICs available on the DLMS IC page.  DoD WebSDR will perform the following actions:

			C17.3.18.1.1.  Pass/route SDR transactions.  The following special rules apply:

				C17.3.18.1.1.1.  Generate and route an SDR reply citing Reply Code 103, Discrepancy Report Receipt Acknowledgement each new SDR submission to the submitting system based upon agreement with the submitting Service/Agency.  The timing of the acknowledgement reply is dependent upon the original SDR and any associated attachments posting to the WebSDR database.  When the transaction identifies that attachments are being provided and the attachments are not received/accepted, the record will post in WebSDR without the attachments in approximately 16 hours (64 processing cycles) after receipt and the acknowledgement will be transmitted.  When this happens, the submitting system point of contact will also receive an error message e-mail from WebSDR that attachments never linked up.  A correction may be used to attempt posting of the corrections. The WebSDR transaction receipt acknowledgement will be used by the submitting system to append the WebSDR-assigned control number to the internal system record for the specified SDR so that subsequent updates transmitted to WebSDR will be linked to the correct original SDR.  The submitting system must recognize the limited purpose of these SDR replies provided by WebSDR to prevent inadvertent update of the SDR action activity to RIC SGA (DAAS).[footnoteRef:33] [33:  Refer to ADC 1026.] 

				C17.3.18.1.1.2.  Generate and route an information copy of each SDR reporting packaging discrepancies associated with Air Force-directed shipments to the Air Force packaging monitoring office.

				C17.3.18.1.1.3.  Route the action copy of SDRs reporting distribution center receipt of PQDR exhibits (Discrepancy Code Q11) to the materiel owner by agreement with DLA.  For Air Force owners, this process will use an electronic (e-mail-based) interface with the Air Force processing system for product quality deficiencies.

				C17.3.18.1.1.4.  Provide special e-mail routing of the action or distribution copy of transshipper prepared SDRs upon Component request.

				C17.3.18.1.1.5.  Return unroutable transshipper prepared SDRs to the submitter for continued processing off-line.[footnoteRef:34] [34:  Refer to ADC 317, Revised Business Rules for Transshipper-Prepared Supply Discrepancy Reports.  Implementation delayed.] 

				C17.3.18.1.1.6.  DoD WebSDR will route submitter transactions for follow-up to the current action activity when SDR history indicates a new or updated action activity has been identified (such as based upon prior Reply Code 504, or a 300-series reply code).  WebSDR will disseminate other transaction types based upon the identified action activity (current action activity after Reply Code 504 forwarding) and SDR distribution rules.

			C17.3.18.1.2.  Edit SDR transactions in accordance with business rules specified below.  Additionally, DoD WebSDR will edit SDRs to improve data consistency and the appropriateness of data content as follows:

				C17.3.18.1.2.1.  The owner/manager may not be identified by a routing identifier associated with a Distribution Center or a CCP.

				C17.3.18.1.2.2.  The shipping activity may not be identified by the RIC associated with an inventory control point or item manager.  Additionally, WebSDR users may not identify RIC SD9 (DLA Vendor Shipment Module) as the shipper.

				C17.3.18.1.2.3.  Inappropriate entries will be overlaid with the correct value, if available, from DAAS history.[footnoteRef:35] [35:  Refer to ADC 425, Revised SDR Codes and Procedures, including Incorrect Part Number Discrepancy Codes and DoD WebSDR Data Edits and Forwarding Enhancement.  ] 

				C17.3.18.1.2.4.  SDRs directed to obsolete DLA supply center RICs will be redirected to DLA Enterprise Business System.

				C17.3.18.1.2.5.  SDRs that contain a PIID will be edited to ensure that the shipper is populated correctly.  DoD WebSDR will match the PIID against the Electronic Document Access (EDA) System contract files to identify the vendor/contractor CAGE code and the applicable CAO DoDAAC.  If a match is found, these values from the EDA contract information will update in the SDR record.  If the submitting system for the original 00 SDR populates any data in the Cage/CAO or PIID or Call Order number, WebSDR will not overwrite these values when different from the original submitting entry.  WebSDR will retrieve the base contract number from an EDA response to a PIID call/order number search.  WebSDR will retain the base contract number for use in management reports and user queries[footnoteRef:36] [36:  Refer to ADC 1168.] 

				C17.3.18.1.2.6.  If discrete values for the SLOA data elements in the transaction (new SDRs, correction, follow-up, and request for reconsideration) do not match data elements from the SFIS Fund Code to Fund Account Conversion Table for the Fund Code in the transaction, reject with the DLMS 842A/R SDR Reply citing Reply Code 943.

				C17.3.18.1.2.7.  If the SDRs contain a constructed document number, check if fund code is invalid/missing.  If fund code is invalid/missing, reject with the DLMS 842A/R SDR Reply citing Reply Code 943.[footnoteRef:37] [37:  Refer to ADC 1043E.] 

				C17.3.18.1.2.8.  Edit new submission SDRs (transactions and direct input) to ensure the requirement for mandatory inclusion of serial number for UIT program items is met.  Reject SDRs identifying a discrepant condition, shortage, overage, or IUID data mismatch with no identified serial number using Reply Code 946.  Refer to Table C17.T2 for applicable discrepancy codes.

				C17.3.18.1.2.9.  Edit new submission SDRs (transactions and direct input) to enforce the serial number convention that the serial number maximum field length may not exceed 30 characters and may only include alpha numeric (A-Z, 0-9), dashes and forward slashes.  Spaces are not allowed.  Reject SDRs with serial numbers not meeting this convention using new Reply Code 947 (Transaction Rejected.  Invalid serial number length or convention.

				C17.3.18.1.2.10.  WebSDR will reject with Reply Code 952 any subsequent transaction submitted after a Completion Notification has been processed except when the action activity must update the vendor non-compliance cause code once the DOD vendor challenge process is completed for SDR Document Type Codes 6/9/P/W SDRs.  

				C17.3.18.1.2.11.  WebSDR will reject with Reply Code 950 any attempt to generate a Completion Notification for an SDR that did not originate in the submitting system.

				C17.3.18.1.2.12.  WebSDR will reject with Reply Code 951 any transaction attempting to change the Action Code on an SDR.  The only exception to this is DLA Disposition Services Document Type Code D SDRs using a correction to change the action code to process the closure of the SDR.  

				C17.3.18.1.2.13.  WebSDR will reject with reply code 927 any Completion Notification with a reply code other than 410, 411 or 412.  The narrative rejection comments will state “Reply Code 410, 411 or 412 are the only authorized reply codes used with Completion Notification transactions.”

				C17.3.18.1.2.14.  WebSDR will place SDRs with Action Codes 1H or 3B into a closed status.  The ICP may respond with any reply code (for example, a 103, 144 or any other reply) and WebSDR will process any replies without rejecting them and the record will remain in the closed status.

***C17.3.18.1.2.15.******WebSDR will reject incorrectly addressed (RIC TO) or formatted SDRs with Reply Code 944 (Transaction rejected. Forwarding transaction not properly formatted) with remarks/narrative comments stating: The 300 series reply code used does not match with the correct corresponding RIC TO.  Please resubmit your reply (11) with the correct values.***

***C17.3.18.1.2.16.  WebSDR will reject SDRs using 300-Series Reply Codes in conjunction with Reply Code 504 with Reply Code 944. WebSDR will insert remarks/narrative comments stating:  A 300-Series Reply Code and 504 Reply Code cannot be used in conjunction, please resubmit your reply (11) properly formatted.***

***C17.3.18.1.2.17.  WebSDR will suppress informational copies of Completion Notices (CN) to the activity identified in the Owner/Manager/Source of Supply (OMS) field on the original (00) SDR for all SDR Document Type Codes.***

***C17.3.18.1.2.18.  WebSDR will reject with Reply Code 928 any transaction with invalid or missing SCC on an SDR.  SDR must be populated with values equal to: A, B, C, D, E, F, G, H, J, K, L, M, N, P, Q, R, S, T, U, V, W, or X.  WebSDR will insert remarks/narrative comments stating the following: “Original SDR doesn’t contain a valid Supply Condition Code, resubmit your SDR, do not submit a cancellation of this SDR as it will be rejected as well.”***

***C17.3.18.1.2.19.  WebSDR will reject with Reply Code 910 any transaction attempting to change the original document number on a SDR after the original submission.  WebSDR will insert remarks/narrative comments stating the following: “Your Transaction has a different Document Number than the one provided on the original 00 SDR submission.  Document numbers must match.  Please resubmit your transaction with the correct document number.”***

******			C17.3.18.1.3.  Convert SDRs for e-mail distribution where SDR transactions are not feasible due to lack of an established SDR application interface.  

				C17.3.18.1.3.1.  Upon determination that an e-mail (vice transaction) is to be prepared for a specific SDR communication, DAAS will check to determine if the appropriate e-mail certificate has been registered.  If registered, the SDR e-mail transmission will be encrypted as FOUO.  The e-mail SDR will contain all associated SDR content as well as clear text addresses and code explanations to facilitate interpretation.  If not registered, an abridged content SDR report, confirmation, distribution copy, or reply, as appropriate, will be prepared.  The e-mail sent to the user will also provide information on how to access WebSDR and instructions on registering the e-mail certificate.

					C17.3.18.1.3.1.1.  Abridged SDR.  The abridged unencrypted version of the SDR e-mail will include the following data content.  Coded information will not include the corresponding clear-text explanation.  The submitter and action activities will not be identified by clear-text addresses.

· DoD Web SDR Report Control Number

· Additional System SDR Control Number

· Customer-Assigned Control Number

· Document Number/Suffix

· PIID

· Transportation Control Number

· Date of Preparation

· Document Type Code

· DLA Disposition Services  SDR Type Code

· Discrepancy Code(s)

· Action Code

· Submitter (Activity From)

· SDR Point of Contact

· Name

· Commercial Phone or DSN

· E-mail

· Attachment/Off-line Flag

					C17.3.18.1.3.1.2.  Abridged SDR Reply.  The abridged unencrypted version of the SDR Reply e-mail will include the following data content.  Coded information will not include the corresponding clear-text explanation with the exception of the Reply Disposition Code which must include text for understanding.  The submitter and action activities will not be identified by clear-text addresses.

· DoD WebSDR Report Control Number

· Additional System SDR Control Number(s)

· Original Reference Number  

· Document Number/Suffix

· PIID

· Transportation Control Number

· Reply Date

· Document Type Code

· DLA Disposition Services  SDR Type Code

· Reply Code(s)

· Action Activity (Activity From)Submitter (Activity To)

· Comments/Remarks

· Reply POC

· Name

· Commercial Phone or DSN

· E-Mail

· Attachment/Off-line Flag

					C17.3.18.1.3.1.3.  Organizations that are not supported by an SDR application for transactional reference will provide to DAAS an e-mail address to be linked with their DoDAAC/RIC for e-mail distribution.

					C17.3.18.1.3.1.4.  Each DoD Component will designate to the DoD SDR System Administrator a specific e-mail account or point of contact to receive unroutable SDRs for manual attention.  This is required to ensure operational support where no SDR application or e-mail address has been identified for an SDR recipient, or an attempted e-mail distribution has failed due to an invalid address.

				C17.3.18.1.3.2.  Army RICs which start with C and currently do not have an e-mail on file will be addressed to the Army SDR Process Review Committee members for action.  Per agreement with DLA Disposition Services, all SDRs which originate from a Disposition Services Field Office and the document number starts with:  C, H, I, J, K, O, V, X, Y will be routed via e-mail to this group inbox:  dladshqbcsdr@dla.mil.  

			C17.3.18.1.4.  Maintain historical records of SDRs and associated transactions.

			C17.3.18.1.5.  Provide access to SDR information via Web Visual Logistics Information Processing System (WEBVLIPS). 

			C17.3.18.1.6.  Provide ad-hoc queries and management reports.

				C17.3.18.1.6.1.  WebSDR provides visibility of all transactions associated with the WebSDR-assigned control number via query by producing a composite view of the SDR.  The composite view provides a “snapshot” of the SDR history by displaying header information followed by an abbreviated view of each individual associated transaction in date sequence (with most recent at the top).  The composite view includes both valid and rejected transactions.  Users are able to drill down to a detail view of any of the individual transaction records by selecting the applicable link.

				C17.3.18.1.6.2.  Management reports are restricted by SAR roles and responsibilities.  After initial approval, users must contact the DAAS WebSDR help desk for assistance to obtain the appropriate settings for required visibility.

				C17.3.18.1.6.3.  Authorized users have the ability to tailor management reports to meet desired criteria by using the WebSDR management report selection screen.  This functionally supports hundreds of variations in selection criteria, but employs a standard display format for all search results.  The initial summary view provides a breakdown display by discrepancy code count and dollar value arrayed by action activity, submitter, or owner/manager as selected by the user.  Users are able to drill down to a listing of SDRs applicable to any of the highlighted totals contained within the summary report.  By selecting the grand total in the lower right corner of the report, the management report will be converted to a listing of all the relevant SDRs displaying most of the content data.  The WebSDR control number is hyperlinked to the composite view described in the above paragraph.

				C17.3.18.1.6.4.  Management reports may be viewed on-line or WebSDR will provide an encrypted e-mail to the user’s SAR e-mail address containing the requested report in EXCEL format.  Note that the on-line display may not include all the selected SDRs due to size restrictions for display; however, the EXCEL report provided via e-mail will contain all applicable records.

			C17.3.18.1.7.  Maintain the DoD WebSDR as a value-added service to support submission, reply, and other functions related to SDR processing.

			C17.3.18.1.8.  Convert CCP-generated SDRs for e-mail distribution pending owner/manager ability to process electronically.

		C17.3.18.2.  WebSDR will edit SDR transactions prior to passing/routing to ensure minimal standards of acceptability.[footnoteRef:38]  Reject to the generating activity SDR and follow-on transactions that do not meet the following conditions: [38:  Refer to ADC 452, Implementation of DOD WebSDR Automated SDR Rejection Capability.] 

			C17.3.18.2.1.  WebSDR (DAAS) will edit SDR transactions for core data elements required for the SDR transaction to be processed.  If the core data elements are missing or contain invalid entries, WebSDR will perform a DAAS Reject for the SDR transaction and send an e-mail to the component SDR primary/alternate, and system POCs for the scenarios identified below.  

			C17.3.18.2.2.  DAAS will reject SDRs when document number/suffix document number length is not equal to 14 and alphanumeric (no special characters) only.  WebSDR will generate an e-mail to the component SDR primary/alternate, and system POCs stating, “The length of the document number you provided is not equal to 14 characters, or contains a non-alphanumeric character.  Please submit a new SDR with a valid document number meeting the correct criteria.”

			C17.3.18.2.3.  DAAS will reject SDRs when document suffix length is not equal to 0 or 1, alphanumeric only (no special characters).  The following characters are not allowed:  I, N, O, P, R, S, Z, 1, and 0.  WebSDR will generate an e-mail to the Component SDR primary/alternate, and system POCs stating, “The document number suffix code you provided has a length not equal to 0 or 1, contains a non-alphanumeric or one of the following disallowed characters: I, N, O, P, R, S, Z, 1 or 0.  Please submit a new SDR with a valid document number suffix.”

			C17.3.18.2.4.  DAAS will reject SDRs, when document type code is not valid in the set specified for use within WebSDR – 6, 7, 8, 9, A, D, N, P, R, V, and W.  WebSDR will generate an e-mail to the component SDR primary/alternate, and system POCs stating, “The document type code you provided is not equal to 6, 7, 8, 9, A, D, N, P, R, V, and W.  Please submit a new SDR with a valid document type code.”

			C17.3.18.2.5.  WebSDR will reject new original SDRs (00) addressed with action to RIC which starts with:  0, 1, 2, 3, 4, 5, 6, 7, 8, 9, H, I, J, K, O, X, Y.  Exceptions are maintained by DAAS WebSDR.

			C17.3.18.2.6.  DAAS WebSDR will reject newly submitted SDRs when there is no e-mail address associated with the intended recipient/SDR action activity routing information.  Additionally, DAAS WebSDR will reject new SDR submissions when the only e-mail address is the DoD SDR Administrator e-mail address for systemic routing.  WebSDR will reject both of the specified scenarios with Reply Code 941.

			C17.3.18.2.7.  DAAS will reject SDRs, when WebSDR control number contains non-numeric characters, or has an incorrect value format (YYYYJJJSSSS).  Year component cannot be before 2005 and not after the current year.  The Julian day component cannot be larger than the total number of days in that given year.  WebSDR will generate an e-mail to the component SDR primary/alternate, and system POCs stating, “The WebSDR control number contains non-numeric characters, or has an incorrect value format (YYYYJJJSSSS).  Please submit a new SDR with the WebSDR control number in the proper format.” 

			C17.3.18.2.8.  DAAS will reject SDRs, when new original (Transaction Purpose Code Set 00) SDRs do not have narrative comments with a description of the deficiency in the remarks field.  This edit will not apply to new original (00) SDRs submitted using Action Codes 1H (No action required; information only) or Action Code 3B (Discrepancy reported for corrective action and trend analysis; no reply required).  WebSDR will generate an e-mail to the component SDR primary/alternate, and system POCs stating, “New SDR submissions require narrative comments describing the discrepancy.  Please submit a new SDR with narrative comments.”

			C17.3.18.2.9.  DAAS will reject any new original (Transaction Purpose Set Code 00) SDR submitted with a WebSDR control number pre-populated by the submitting system. WebSDR will generate an e-mail to the component SDR primary/alternate, and system POCs stating, “Your new original (Transaction Purpose Set Code 00) SDR was created with the WebSDR control number pre-populated.  Please resubmit a new SDR without the WebSDR control number pre-populated.”

			C17.3.18.2.10.  DAAS will reject any SDR addressed to a RIC, DoDAAC, or MAPAC not found in the DoDAAD.  WebSDR will generate an e-mail to the component SDR primary/alternate, and system POCs stating, “Your SDR was routed to a RIC, DoDAAC, or MAPAC not found in the DoDAAD.  Please submit a new SDR identifying a valid RIC, DoDAAC, or MAPAC as the action activity.” 

				C17.3.18.2.10.1.  SDR transactions must contain valid values as appropriate to the transaction purpose:  discrepancy code, action code, and reply code.  Reject with Disposition/Status Code (Reply) Code 915, 916, or 927.  When populated, the materiel location on Security Assistance SDRs must contain a valid code (Reply Code 919).

				C17.3.18.2.10.2.  SDR must include materiel identification.  Materiel identification may consist of the NSN, manufacturer’s part number and manufacturer’s CAGE, or as authorized under DLMS for unique business processes (e.g., “mixed” or “unknown” for transshipper SDRs and local catalog identification number).[footnoteRef:39]  Where wrong item discrepancies are reported, materiel identification of the wrong item must be included.  Wrong item received may be identified as previously indicated or by description alone (citing “UNKNOWN” as the wrong item part number).  Reject with Disposition/Status (Reply) Code 931. [39:  Refer to ADCs 282, CCP-Originated SDRs including Noncompliant WPM Procedures and Shipment Hold Code; 317, Revised Business Rules for Transshipper-Prepared SDRs; and 322, Addition of Local Catalog ID qualifier to Support Requirements for Theater Enterprise-Wide Logistics System (TEWLS) Requisitions.  Local Catalog ID implementation delayed.] 

				C17.3.18.2.10.3.  SDRs reporting materiel received is not in the correct condition must include valid condition codes to identify the received conditions. Only valid condition codes will be permitted.  The condition code must be appropriate for the discrepant materiel and associated action activity or source of supply (i.e., Supply Condition Code N, V, and T may not be directed to the DLA ICP).  Reject with Disposition/Status (Reply) Code 928. 

				C17.3.18.2.10.4.  SDRs coded to indicate narrative is required must provide applicable narrative.  Reject with Disposition/Status (Reply) Code 924. 

				C17.3.18.2.10.5.  SDRs must include minimal point-of-contact information to include name and phone/e-mail.  Reject with Disposition/Status (Reply) Code 920 or 921.

				C17.3.18.2.10.6.  Only valid DoDAACs and RICs will be permitted.  Reject with Disposition/Status (Reply) Code 929.  Organizations identified must be authorized for the purpose identified by the transaction.  

					C17.3.18.2.10.6.1.  SDRs may not be directed to RIC SGA (DAAS) or SD9 (DLA Vendor Shipment Module) or identify RIC SGA RIC SD9 as the shipper.  (The only exception is for RIC SGA on SDR replies citing Reply Code 936 (Request DoD WebSDR provide an information copy of the original report).  When an SDR is submitted to VSM RIC SD9, WebSDR will reject the record back to the submitter using Reply Code 901 Transaction rejected:  Discrepancy report submitted to wrong activity.  WebSDR will provide these comments in the narrative remarks:  SD9 is DLA’s Vendor Shipment Module RIC and does not accept SDRs.  Submit a new SDR to the correct action activity.  Do not submit a correction (CO) to update the RIC, as this will be rejected.

					C17.3.18.2.10.6.2.  WebSDR will reject storage activity-submitted SDRs (Document Types Codes 8, 9, R, A, N, and P) attempting to change the value of the owner or manager after original submission using Reply Code 929.

				C17.3.18.2.10.7.  Quantity fields will only allow entry of numeric values.  Reject with Disposition/Status (Reply) Code 917 or 918.

					C17.3.18.2.10.7.1.  SDR replies coded to indicate that a ship-to/mail-to address or additional information is associated with the reply, must include the specified additional address or information as transaction data fields and must include narrative remarks to reflect the address (due to limited implementation of the separate address fields).  Reject with Discrepancy Status/Disposition Code (Reply) 924. 

					C17.3.18.2.10.7.2.  SDR follow-ups must comply with follow-up submission timeframes.  Follow-ups submitted without allowing sufficient action activity response time will be rejected (see section  C17.3.13.  Reject with Discrepancy Status/Disposition Code 933 (implementation pending).

					C17.3.18.2.10.7.3.  SDR follow-ups and contested SDR/reconsideration requests will not be submitted against cancelled SDRs.  Reject with Discrepancy Status/Disposition Code 907.

					C17.3.18.2.10.7.4.  SDR corrections and  follow-ups will not be submitted when no valid corresponding SDR record is on file or when the original SDR was rejected.  Reject with Discrepancy Status/Disposition Code 907.

					C17.3.18.2.10.7.5.  Reply with Discrepancy Status/Disposition Code 504 forwarding action may not be used to forward SDRs where incomplete information is available to construct the new forwarded SDR, or the SDR is otherwise not suitable for automated forwarding action.  Reject with Discrepancy Disposition/Status (Reply) Code 935.

					C17.3.18.2.10.7.6.  WebSDR direct online application input and SDR transactions will be rejected for any SDR Document Type Code other than 7 or R, or any SDR using Reply Code 504 with any other reply code.  Reject with Discrepancy Disposition/Status (Reply) Code 946.

					C17.3.18.2.10.7.7.  SDR document numbers and associated suffix codes must conform to MILSTRIP standards.  A temporary exception is allowed for Air Force  maintenance document numbers used between the Air Force item manager and the supporting depot.  The full document number edit does not apply to transshipper SDRs (Document Type W) due to the potential for reporting against the shipment unit rather than a specific document number.  For these SDRs, the document number must be filled and must be 14 positions.  It may contain a 14 position purchase request number, the first 14 positions of the transportation control number, or a constructed document number based upon the DoDAAC of the port submitting the SDR.  Reject with Discrepancy Status/Disposition Code 910.

					C17.3.18.2.10.7.8.  SDRs must contain valid transaction set purpose codes and document type codes as shown in the applicable DLMS IC.  Reject with Discrepancy Disposition/Status (Reply) Code 938 and 939, respectively.  Submitting system personnel will be notified of invalid transaction set purpose codes.

					C17.3.18.2.10.7.9.  SDRs associated with new procurement (Document Type 9 or P) must contain the applicable PIID and contractor-assigned shipment number.  Reject with Discrepancy Disposition/Status (Reply) Code 940.  New SDR submissions containing a thirteen position number with the F or M designation in the 9th position in the call/order number data field will be rejected using Reply Code 940 and clarifying remarks stating that the thirteen-position PIID Call/Order Number must be provided in the PIID (contract number) data field.

					C17.3.18.2.10.7.10.  Inter-Component SDR replies citing 200-series reply codes may be used only for Security Assistance SDRs.  Reject with Discrepancy Disposition/Status (Reply) Code 941.

					C17.3.18.2.10.7.11.  The number of submitter follow-up transactions may not exceed the allowable maximum based upon the action activity response or lack of response, as applicable.[footnoteRef:40] [40:  Refer to ADC 1044 Enhanced Interim SDR Reply Capability, Status Update, and Completion Notification. ] 

						C17.3.18.2.10.7.11.1.  If the action activity has not provided a functionally significant reply after three follow-ups (this excludes acknowledgement of receipt and forwarding via Reply Code 504), DoD WebSDR will reject the fourth follow-up using Reply Code 701 with remarks text directing the submitter to contact the action activity directly.

					C17.3.18.2.10.7.11.2.  WebSDR will reject a fourth follow-up subsequent to interim Reply Code 521 using Reply Code 701 with remarks text directing the submitter to contact the action activity directly.

					C17.3.18.2.10.7.12.  The number of interim responses and submitter status update combinations may not exceed the allowable maximum based upon the action activity response or lack of response, as applicable.

					C17.3.18.2.10.7.12.1.  WebSDR will reject a fourth Reply Code 104 or 321 per SDR using Reply Code 701 with remarks text directing the submitter to contact the action activity directly.

						C17.3.18.2.10.7.12.2.  WebSDR will reject a fourth Reply Code 608 or 320 per SDR using Reply Code 701 with remarks text directing the submitter to contact the action activity directly.

					C17.3.18.2.10.7.13.  Duplicate SDRs defined as a new submission matching an existing SDR on WebSDR control number.  Prior to WebSDR control number assignment, duplicate SDRs are defined as a new submission matching an existing valid SDR on all of the following:  WebSDR status is not cancelled, document number/suffix, discrepancy code, (minimum of one matching value), SDR document type code, and transportation control number (if provided).  Pending future system upgrade by DLA Distribution, the Distribution Standard System (DSS) Automated Discrepancy Reporting System (ADRS), and the depot control number (DCN) in conjunction with the submitting system RIC/DoDAAC also distinguishes unique SDRs to preclude rejection as a duplicate. [footnoteRef:41]  Reject with Discrepancy Disposition/Status (Reply) Code 719.   [41:  Refer to ADC 1250. ] 

					C17.3.18.2.10.7.14.  WebSDR will reject attempted return of SDRs to the storage activity/initial action activity using Reply Code 526/527 when the identified Transfer-To party is not identified or consistent with SDR history (must be same action activity that received and processed the original SDR response) using Reply Code 945.[footnoteRef:42] [42:  Refer to ADC 1217.] 

			C17.3.18.2.11.  WebSDR will edit SDR submissions via DoD WebSDR at the point of entry to improve the accuracy of the data content.  All of the above criteria apply.  In addition, web-specific functionality includes:

				C17.3.18.2.11.1.  The SDR submission process will be facilitated by the auto-population of data content based upon the shipment and cataloging data available to DAAS.  

				C17.3.18.2.11.2.  Address information will be retrieved based upon DoDAAC and RICs.  User generated updates to initiator’s address are permitted and will be passed to the receiving system for information, but will not impact SDR processing.

				C17.3.18.2.11.3.  SDR replies coded to indicate that an address or additional information is associated with the reply must include the specified additional address or information. 

				C17.3.18.2.11.4.  New SDR submissions via direct web input will be edited to block identification of a DCMA activity as the initial action activity.[footnoteRef:43]  [43:  Refer to ADC 1005.] 

			C17.3.18.2.12.  DAAS will provide the support to SDR transaction exchange to facilitate DLMS processes.

				C17.3.18.2.12.1.  WebSDR will facilitate appropriate distribution when the action party receiving the initial distribution employs the Distribution/Status (Reply) Code 504 indicating the SDR must be forwarded to a new action activity.  WebSDR direct online application and SDR transactions will be edited to restrict the use of Reply Code 504 for use only for SDR Document Type Code 7 or R, and SDRs using another reply code in conjunction with Reply Code 504 will be rejected with Reply Code 949 - Transaction rejected. Reply Code 504 can only be used for SDR Document Type Code 7 or R, and cannot be used with any other reply code.  Action Activities receiving SDRs (other than Type 7 or R) identified to the wrong action activity will use Reply Code 612 to reject the SDR back to the submitter ILO using Reply Code 504 to redirect it to another action activity.  WebSDR will prepare the forwarded SDR in an original SDR format (Transaction Set Purpose Code 00) retaining all the information provided in the initial transmission plus the unique data fields applicable to the forwarding action per the DLMS 842A/W.  The submitter will receive the reply transaction as notification of interim status.  If an information copy of the initial SDR was provided to the source of supply based upon Component rules, WebSDR will prepare an information copy of the forwarded transaction using the correction format (Transaction Set Purpose Code CO).  When the source of supply identified in the SDR correction is the same activity identified to receive the source of supply copy of the SDR reply (Transaction Set Purpose Code 11), this reply transaction will be suppressed as redundant to the correction.  WebSDR will update the SDR database to reflect the current action activity after this type of forwarding action and ensure that subsequent transactions are properly transmitted to the new action activity (rather than the original action activity).[footnoteRef:44] [44:  Refer to ADC 1066/1066A.  Delayed implementation authorized for rerouting of follow-on transactions.] 

				C17.3.18.2.12.2.  WebSDR will not create an information copy SDR for Document Type Code 7, R and N SDRs regardless if the owner/ manager/source of supply field is populated by the submitter on the original SDR.  WebSDR will generate the information copy SDR when the shipping activity determines the appropriate source of supply and forwards the SDR using the appropriate 300 series forwarding reply code to the source of supply that directed the shipment.  This will eliminate unnecessary information copy SDRs being generated to activities that should not receive the SDR.  This will allow the source of supply (identified by the shipping activity on their reply) to receive an information copy of the original SDR as most SDR systems require this prior to processing the reply.

					C17.3.18.2.12.3.  WebSDR will facilitate appropriate distribution when the action party receiving the initial distribution employs distribution status codes in the 300 series indicating that the SDR must be sent to the source of supply for disposition.  The SDR reply will be sent to the designated source of supply by the responding activity and WebSDR will prepare a reply to the SDR initiator for notification of interim status.  WebSDR will update the SDR database to reflect the current action activity after this type of forwarding action and ensure that subsequent transactions are properly transmitted to the new action activity (rather than the original action activity).

					C17.3.18.2.12.4.  WebSDR will respond to DAAS-directed rejected reply transactions indicating no matching original report or information copy of the SDR is found in the automated application (Reply Code 926), by providing an information copy of the original report to the activity which rejected the reply.  Unmatched requests for an information copy will be returned by DAAS as rejected (Reply Code 926) to the sending organization.  DAAS will create and forward an information copy of the DLA source of supply for all customer SDRs based upon the storage site reply where an information copy was not previously provided.

					C17.3.18.2.12.5.  WebSDR will provide information copies of SDRs in accordance with Component business rules and as designated by the initiator.

						C17.3.18.2.12.5.1.  All parties receiving an information copy of the original SDR as designated by the initiator or by a Component business rule will receive a copy of all changes, cancellation, and replies associated with the SDR.

						C17.3.18.2.12.5.2  WebSDR will provide an information copy to DCMA of all SDRs identifying DCMA as the CAO.[footnoteRef:45] [45:  Ibid.] 

						C17.3.18.2.12.5.3.  WebSDR will provide an information copy to NAMI (RIC AJ2) when SDRs are directed to the other Service/Agency source of supply and the requisition cited NAMI funding (Signal = C Fund Code = Z9, and Supplementary Address=W9046W)

				C17.3.18.2.12.6.  WebSDR will accept and forward supporting documentation associated with SDRs using DLMS attachment exchange procedures.

					C17.3.18.2.12.6.1.  SDR attachments may be uploaded directly to the DoD WebSDR or exchanged electronically in association with the SDR transaction.

					C17.3.18.2.12.6.2.  SDR attachments must be referenced/uploaded under a SDR Attachment File Name constructed in accordance with DLMS rules.  Up to five attachments may be associated with a new SDR report and subsequent change, reply, request for reconsideration.  

				C17.3.18.2.13.  DoD WebSDR will restrict the use of inappropriate discrepancy status/disposition reply codes in responses to transshipper prepared SDRs.

				C17.3.18.2.14.  The DLMS SDR transaction supports various data fields that may include special characters (e.g. SDR remarks text).  WebSDR will reject/fail to process transactions containing special characters that are unacceptable/ reserved for use as XML parsers.  Table C17.T5 defines allowable and unacceptable special characters.  Any characters not specifically identified in these lists should not be used.[footnoteRef:46] [46:  See ADC 1127, Enclosure 1] 

Table C17.T5.  Special Characters

				C17.3.18.2.15.  DAAS will prepare and transmit the WebSDR Contractor Noncompliance Data Extract as an automated interface in support of contractor evaluation by Supplier Performance Risk System (SPRS).[footnoteRef:48]  SDR records will be selected based upon inclusion of an SDR cause code indicating contractor/vendor noncompliance (Cause Codes CN, CP, or CS) in the final reply by the item manager for SDR Document Type Codes (6/9/P/W including Historical (49) SDRs).  WebSDR will monitor SDR updates for changes to the cause code and transmit the SDR Data Extract to SPRS if a previously assigned contractor noncompliance Cause Code has been removed or new noncompliance cause code has been added or updated.  Applicable data content for transmission is identified in Appendix 8.56.  Transmission will occur on a daily basis containing only those SDRs validated since the previous transmission.[footnoteRef:49] [48:  Refer to ADC 1181B]  [49:  Refer to ADC 1181A.] 

					C17.3.18.2.15.1.  SDR file attachment size is up to 15 megabyte (MB) when external SDR systems transmit attachments inbound to DAAS WebSDR.  The total capacity will be 75 MB with a limit of five attachments per transaction.

					C17.3.18.2.15.2.  WebSDR file size for attachments is a maximum 5 MB per attachment uploaded from the WebSDR application due to server limitations.  The total capacity will be 25 MB with a limit of five attachments per transaction.

					C17.3.18.2.15.3.  Attachment file names must follow a specific naming convention to allow space for WebSDR or the submitting system to append a date/time stamp and other information to ensure uniqueness and to associate the attachment with the appropriate transaction.  The user-assigned portion of the file name may be up to ten characters and should include key words to facilitate user recognition.  When submitted to WebSDR, the submitting system must ensure that the file name contains no special characters other than the underscore ( _ ).  The period may only be used once prior to the file extension.  WebSDR supports the following file types:  BMP, DOC, DOCX, GIF, JPEG, JPG, PDF, TXT, XLS, and XLSX.

C17.4.  MANAGEMENT EVALUATION

	C17.4.1  Purpose.  The SDR program is designed to promote evaluation, correction, and improvement of logistics operations.  To accomplish this objective, discrepancies as specified in this publication must be reported and investigated in accordance with established policies and procedures.  DoD Components must institute SDR quality programs that will include periodic reviews to assess the accuracy and quality of work processes applicable to supply discrepancy processing.  In addition, DoD Components must require, as a minimum, semi-annual summary reporting to an appropriate headquarters for review and analysis.  The DoD Components unable to support the full scope of the required data collection under legacy systems must incorporate this reporting requirement under business system modernization efforts.  The DoD WebSDR management reports and canned queries may be used to supplement internally prepared reports.  To facilitate management evaluation and corrective action, WebSDR will prepare and disseminate focused content reports to DoD Component representatives for specific areas requiring additional attention.  Focused content reports include several reports highlighting discrepancies identified by transshippers and a report listing DLA Distribution Centers SDRs indicating lack of a PMR.  DoD Components and USTRANSCOM must  monitor SDR program performance applicable to transshipper SDRs.  DCMA must monitor reported discrepancies applicable to procurement source shipments. Data collected must be sufficient to enable monitoring activities to:

		C17.4.1.1.  Identify trends.

		C17.4.1.2.  Establish volume and dollar values of SDRs.

		C17.4.1.3.  Bring management attention to problems with shipping activities as necessary.

		C17.4.1.4.  Prevent recurrence of discrepancies.

		C17.4.1.5.  Measure quality and responsiveness of action activities.

		C17.4.1.6.  Assess vendor performance to ensure compliance with contract requirements, identify and correct recurring issues, and incorporate SDR metrics during consideration of future contract awards.

		C17.4.1.7.  Promote timely QAR performance to prevent delays in processing of procurement source receipts.  

	C17.4.2.  IMM/ICP Summary Reporting.  As a minimum, the IMM/ICP and shipping activities must have visibility of detail/summary reports that show:

		C17.4.2.1.  The number of SDRs received during a particular timeframe by shipping activity, dollar value, and discrepancy type.  Reports will measure compliance with SDR submission timeframes.

		C17.4.2.2.  The number of SDR responses processed during a particular timeframe by action activity, dollar value, and discrepancy type.  Reports will show a breakdown of SDR actions taken to include dollar value of credit authorized and reshipped materiel.  Reports will measure compliance with SDR processing timeframes and show age of ongoing investigations.

	C17.4.3.  Receiving Activity Reporting.  As a minimum, the U.S. Government receiving activity and the ILCO must have visibility of detail/summary reports that show:

		C17.4.3.1.  The number of SDRs prepared during a particular timeframe by shipping activity, dollar value, and discrepancy type.  Reports will measure compliance with SDR submission, processing, and follow up timeframes.  

		C17.4.3.2.  Responses received from the responsible action activity, and dollar values recovered, either in the form of reshipped materiel or credit received.

C17.5.  SECURITY ASSISTANCE DISCREPANCY REPORTS

	C17.5.1.  General.  This section provides specific procedural guidance relevant to the processing of Security Assistance SDRs.  Based upon United States of America Letter of Offer and Acceptance (LOA) agreements, Security Assistance customers will use SDRs to report all supply, billing/financial, and product quality deficiencies/discrepancies associated with Security Assistance shipments.  Supply discrepancies are identified under paragraph C17.3.2., Reporting Criteria, except as specifically excluded for Security Assistance and as supplemented below.  In addition to the routine data content, Security Assistance SDRs will include the location of the discrepant materiel (in-country depot, freight forwarder, U.S. Government facility, or contractor facility) and the country that received the discrepant materiel.  Security Assistance discrepancy reports below dollar limitations contained in the United States of America Department of State LOA controlling the case, or any other sales agreement with a Security Assistance purchaser, will not be accepted by the ILCO for subsequent processing by the DoD Components or participating Agencies unless a valid justification for the submission is also provided.  

		C17.5.1.1.  All Security Assistance SDRs will be submitted directly to the applicable ILCO for initial screening and processing in accordance with this manual and DoD 5105.38-M, SDRs may be forwarded via SF 364, Report of Discrepancy, or authorized electronic/automated formats.  Incorrect item SDRs must provide supporting documentation to include photographs of the wrong item received.  

		C17.5.1.2.  Acceptable SDRs will be forwarded for further processing to DoD ICP/IMM, shipping depot, GSA, or other organization as applicable.  ILCOs will submit SDRs using a DLMS-compliant SDR application or, pending full implementation, via direct DoD WebSDR input.  Total non-receipt SDRs will normally be forwarded directly to the shipping depot.  All responses to discrepancy reports will be returned to the ILCO.  

		C17.5.1.3.  Responding action activities will provide the SDR reply for Security Assistance SDRs using a DLMS-compliant SDR application via DoD WebSDR or, pending full implementation, via direct DoD WebSDR input or authorized electronic/automated equivalent format.  SDR replies must include, at a minimum, the applicable document number, the Security Assistance report number (item 2 of the SF 364), point of contact information, and pertinent information from the data blocks on the reverse side of the SF 364 or the expanded SDR data element code lists (Appendix 7.28).

		C17.5.1.4.  The DoD shipping activity will retain paper copies of the Security Assistance shipping documentation (signed carrier's receipt and shipping document) at the shipping site for a period of 2 years following the shipping date.  After this point, the DoD shipping activity will retain a copy of the Security Assistance shipping documentation in accordance with its NARA-approved Component record schedule as required by DoDI 5015.02, DoD Records Management Program.  Billing documentation will be retained by the Military Departments and DoD agencies as specified in MILSBILLS procedures and DoD 7000.14-R, Vol. 15, Department of Defense Financial Management Regulation (Security Assistance Policy and Procedures).  

	C17.5.2.  Time Standards

		C17.5.2.1.  Time Standards for SDR Submission by Security Assistance Customers.  Discrepancy report preparation and submission time by the Security Assistance purchaser is limited to the time standards cited in the United States of America Department of State LOA, and amendments thereto, as explained in DoD 5105.38-M.

		C17.5.2.2.  Security Assistance customers receiving misdirected shipments or shipments containing incorrect items that are identified as classified/sensitive materiel, and/or arms, arms parts, or explosives, must report within 24 hours of discovery regardless of dollar value for disposition.  Where estimated dollar values are unknown or fall below the minimum criteria, report using Action Code 1A,  Disposition instructions for discrepant materiel requested; financial action not applicable.

		C17.5.2.3.  ILCOs are permitted 15 calendar days from the time of discrepancy report receipt for processing prior to forwarding to the appropriate action activity.  Upon return of the SDR response from the action activity, ILCOs are permitted 15 calendar days for processing and forwarding to the Security Assistance customer.

	C17.5.3.  Directed Returns

		C17.5.3.1.  Whenever materiel is directed for return to U.S. custody, the purchasing country will be instructed to reship the materiel using the same document number under which the materiel was originally shipped.  The country will be advised that they must return the materiel to U.S. Government custody within 180 calendar days from date of approval/instructions.  However, the time standard allowed for the return of wrong item controlled/sensitive materiel or unidentified materiel is 30 calendar days from date of the ILCO reply.  The ILCO will monitor directed returns and follow-ups with customers where controlled/sensitive materiel has not been returned.  In those  instances when materiel is to be returned to the United States at U.S. Government expense, every effort will be made to utilize the DTS for the return movement.  Action activities will provide the Service/Agency transportation account code (TAC) chargeable to return the discrepant materiel to the appropriate U.S. Government activity or other designated location.  In lieu of the TAC, the action activity may provide commercial package carrier account information.  In addition, the source of supply will provide reimbursement for packing, crating, handling for directed returns under MILSBILLS procedures in DLM 4000.25, Volume 4, Finance.  The source of supply will also provide reimbursement for in-country transportation of the original shipment to the Security Assistance customer (when a directed return applies) under procedures prescribed by DoD 5105.38-M, as amended.  When appropriate, the action activity may direct the submitter to return an exhibit of the discrepant materiel.  The activity requesting this action will pay for exhibit shipment costs.  The exhibit will be returned to U.S. Government custody within 90 calendar days from the date of instructions.  Action activities or the ILCO will furnish DD Form 1348-1A for materiel to be returned.  A copy of the SDR and DD Form 1348-1A should be included with returned materiel and annotated as an “SDR RETURN.”  Upon evidence of materiel being returned, a credit adjustment will be processed for the return of the discrepant materiel if previously authorized.  This evidence releases the Security Assistance customer of liability for the materiel.  

		C17.5.3.2.  Discrepant Security Assistance materiel not being returned to the stocks of the Department of Defense or GSA, or retained, or sent to disposal by the foreign government at the direction of the ILCO, will be turned in to the nearest U.S. accountable military activity (regardless of the DoD Component responsible for the materiel).  This is in accordance with the governing regulation serving as the authority for the turn-in.  The local U.S. military activity will pick up the materiel up in stock as a gain to inventory and determine if materiel is required or is in excess to requirements.  If materiel is required, it will be retained.  If excess to requirements of the local military activity, the materiel must be reported under Chapter 12.

	C17.5.4.  Incorrect Items.  Incorrect item SDRs are not permitted for authorized substitution, unless the substitute item does not meet fit, form, or function standards.  DoD Components and GSA follow the policy of automatic shipment of an interchangeable item unless the requisition contains an appropriate advice code, in accordance with MILSTRIP, limiting the request to a specific item.  Similarly, quantities may be adjusted to the unit pack quantity, when appropriate, unless restricted by the appropriate advice code in the customer requisition.  Such adjustments resulting in quantity variance are not reportable as discrepant.

	C17.5.5.  Non-receipt.  When an SDR is initiated for non-receipt, the Security Assistance customer is required to provide documentation from the freight forwarder indicating that no materiel has been received on the requisition and transportation control numbers that apply.  The ILCO will deny any non-receipt SDRs received that do not have this documentation attached.  The ILCO will return these SDRs to the customer as incomplete.

	C17.5.6.  Frustrated Shipments Located at the Freight Forwarder.[footnoteRef:50]  The Security Assistance customer will report packaging and documentation discrepancies causing materiel to be frustrated at the freight forwarder location.  Shipments frustrated at the freight forwarder's location due to packaging or documentation discrepancies attributed to the shipper may be submitted regardless of dollar value.  Validated SDRs may direct return, disposal, repackaging with reimbursement of actual repackaging costs, or other action, as deemed appropriate by the item manager.  Note that repackaging by the freight forwarder or a third party contracted by the freight forwarder is an optional approach to resolve the packaging discrepancy.  The customer may request alternative action by the item manager if the SDR reply does not provide an acceptable solution for the customer.  An estimated cost for repackaging may be requested prior to authorizing repackaging except for shipments below the FMS dollar threshold as the cost of obtaining an estimate may exceed the value of the shipment.  In addition to the customer’s requested action, the ILCO and owner/manager will consider the estimated cost for corrective action prior to determining the most appropriate approach for resolution.  When the estimated cost exceeds the value of the shipment, the burden for corrective action must fall on the owner/manager and must not be delegated to the FMS customer/freight forwarder.  This will eliminate the potential for credit reimbursement for repackaging to exceed the value of the original purchase of the materiel. When applicable, transactional exchange to support reimbursement for repackaging costs will follow normal procedures with additional steps as follows: [50:  Refer to ADC 1203.] 

			C17.5.6.1.  Submitter creation of the SDR requesting disposition instructions.  Use Action Code 2A and include estimated repackaging cost when available.  If the materiel requires immediate repackaging (e.g., due to leakage) or if materiel cannot be returned to shipper in current condition without incurring repackaging costs, include this information in the SDR remarks and provide supporting evidence.  The submitter must not employ a third party to provide a repackaging estimate if the shipment is valued below $200.

			C17.5.6.2.  Shipping activity transmission of an interim reply, when applicable, to validate the discrepancy and recommend credit using Reply Code 525.  The shipping activity will forward the SDR to the item manager.  This SDR reply will include the applicable 300-series forwarding reply code and a copy will be provided to the submitter.

			C17.5.6.3.  Item manager transmission of a final reply indicating planned resolution.  The item manager may provide an interim reply either requesting a repackaging estimate if not already provided or authorizing repackaging by the freight forwarded (inclusive of a third party engaged by the freight forwarder to perform repacking and certification), when this action is acceptable to the customer.  Authorization for repacking by the freight forwarder with subsequent reimbursement by the Government is only authorized once the owner/manager and the ILCO have determined this to be the most appropriate and cost effective resolution and reimbursement will not exceed the value of the purchase.  This interim reply will include SDR Reply Code 131 and reply codes indicating additional information is required (Reply Code 104) and that no credit will be provided without evidence of actual repackaging cost (Reply Code 129).  

			C17.5.6.4.  Submitter creation of an SDR correction to the owner manager upon completion of the repackaging including the actual repackaging cost and supporting documentation (e.g. invoice for repackaging).  Other data content may be perpetuated from the original submission.

			C17.5.6.5.  Item manager review of documentation to validate repackaging costs and transmission of final reply authorizing credit using Reply Code 109.  If there is a substantial difference between the estimated and actual repackaging cost, the item manager will consider further review to validate the claim and may request clarification for the difference.  The item manager will provide credit in accordance with MILSBILLS procedures in DLM 4000.25, Volume 4, Finance.

	C17.5.7.  Cancellation of an Original Report.  When an SDR originator discovers a previously reported SDR is not valid or appropriate for any reason and should be withdrawn, an SDR cancellation must be prepared to cancel the original.  The ILCO via the DoD WebSDR will forward to all parties that received the original submission.  Cite the original report number and the WebSDR-assigned control number when known.  Do not duplicate detail information from the original report except as indicated in the DLMS IC.  Provide POC information.  A brief narrative description of the reason for cancellation should be included.

	C17.5.8.  Contested Decisions and Requests for Reconsideration.  These procedures allow the report originator to voice disagreement with disposition decisions.  The Security Assistance purchaser has recourse through the ILCO to the ICP/IMM or GSA and, if still not satisfied, to the ILCO's Service focal point. 

		C17.5.8.1.  Requests for Reconsideration

			C17.5.8.1.1.  The Security Assistance purchaser may ask the U.S. Government to reconsider the disposition for a reported supply discrepancy.  Purchasers must send a Request for Reconsideration (Transaction Set Purpose Code 15) to the ILCO within 45 calendar days from the date of the ILCO final reply to the submitter concerning disposition, except when materiel/exhibit return to the customer is required subsequent to US Government-directed evaluation/testing/repair.  This exception is applicable only when the materiel/exhibit must be re-inspected by the customer to confirm that the reported discrepancy/deficiency has been resolved and, therefore, additional transportation time is necessary for the return shipment.  Under this scenario only, the SA purchaser is authorized up to 90 days from the date of the final ILCO reply to submit the Request for Reconsideration to the ILCO.  The ILCO will be responsible for monitoring that requests for reconsideration are submitted within the allowable time standards.  

			C17.5.8.1.2.  The request for reconsideration will use the nonconformance number associated with the original report.  When the submitter asks for reconsideration, the ILCO will add a Suffix Code R to the SDR number.  The ILCO will convert the request for reconsideration to electronic transmission and forward to the appropriate DoD ICP/IMM or GSA action activity for reconsideration within 20 calendar days of receiving the request for reconsideration from the submitter.  If relevant information is not accessible by the responsible activity, the ILCO may forward supporting documentation.  The designated recipient of the request for reconsideration will review all data relating to the problem and provide a response to the reporting activity with information to all concerned parties within 45 calendar days (90 days for security assistance shipments where materiel was returned to country when previous SDR resubmission was closed)[footnoteRef:51].  When the shipping depot is unable to respond to the contested SDR, the depot will forward the SDR to the source of supply for resolution. [51:  ADC 430, Timeframe Change for Security Assistance SDR Requests for Reconsideration] 

		C17.5.8.2.  Second Request for Reconsideration (Contested Transaction Set Purpose Code 50.  Security Assistance submitters may further contest the ICP/IMM or GSA decision given after the request for reconsideration.  To do so, the submitter must send a written request to the ILCO within 45 calendar days from the date of the ILCO reply to the request for reconsideration.  The submitter must indicate why the ICP/IMM or GSA decision is not satisfactory.  Cite the nonconformance number on the original SDR.  The ILCO will add a Suffix Code C to the report number, which will be used in all references to the SDR.  The ILCO will convert the request to electronic transmission and forward the SDR, with an appropriate advice code, within 20 calendar days to the appropriate focal point who will review all the information and send the ILCO the final decision within 50 calendar days from the date of receipt of the ILCO information.  A contested reconsideration may only be submitted transactionally to DoD WebSDR and will be forwarded to the original action activity(ies).  Additional distribution may be accomplished manually.  If relevant information is not accessible by the focal point, the ILCO may forward supporting documentation.  The ILCO will ensure all interested parties receive the SDR resolution.

	C17.5.9.  Follow-up on Credit Adjustments on SDRs

		C17.5.9.1.  When an action activity has indicated that a credit adjustment has been authorized, reimbursement is normally provided to the fund code/line of accounting and bill-to address cited on the original requisition.  When concerned about an apparent non-receipt of credit, the ILCO should consult with the appropriate finance office for verification.  Allow a minimum of 60 calendar days from the date of the SDR response before initiating a follow-up action.  To facilitate research of supply and financial records, it is suggested that follow-up action for non-receipt of credit associated with the return of discrepant materiel occur within a reasonable period (e.g., not longer than 45 calendar days after the ILCO provides the action activity the initial notice with evidence of discrepant materiel return). 

		C17.5.9.2.  When non-receipt of credit is confirmed, the ILCO will submit a request for billing adjustment as prescribed by MILSBILLS procedures under DLM 4000.25, Volume 4, Finance, using DLMS 812R (DIC FAE) and Billing Advice Code 26.  Do not send a hardcopy of the SDR or reply, as this may create duplicate work for the finance centers and may cause improper processing of your request.

	C17.5.10.  Product Quality.  Product quality deficiencies relative to Security Assistance shipments are reportable via SDR.  If product quality is for latent defect, the Security Assistance customer must provide evidence that a receipt inspection was done and the defect could not be detected at that time and that the defect is present for reasons other than deterioration or damage incurred during storage or handling.  Quality deficiencies include deficiencies in design, specifications materiel, manufacture, and/or workmanship.  The submitter must identify by discrepancy code any quality deficiencies (including latent defects) that result in a safety hazard.  Include the following information in the SDR, as applicable:  manufacturer's name; contract/purchase order number; date of manufacture, pack, or expiration; lot/batch number; location of materiel; point of contact information (if other than the preparing official); along with a detailed description of the complaint if needed to supplement encoded information.  Include the following information in all product quality SDR packages, as applicable: photographs, test data, and related documentation.  When submitting a latent defect discrepancy code on the SDR, the report must include substantiating documentation to validate the latent defect such as the applicable test report used to identify the latent defect.  Latent defects must be submitted to the ILCO with substantiating documentation.  Following is a list of potentially applicable forms of substantiating documentation:

		C17.5.10.1.  Receipt tests conducted and test reports (including test equipment model, serial number and software version), or documentation of receipt tests not conducted, and justification for tests not conducted.

		C17.5.10.2.  Subsequent tests conducted and results including test equipment model, serial number, and software version along with test readings.

		C17.5.10.3.  Justification that initial receipt inspection and testing could not have detected the deficiency.

		C17.5.10.4.  Documentation of storage and handling of the item since receipt including type of storage.

	C17.5.11.  Billing Discrepancy.  Billing discrepancies reported to the ILCO on a SDR will be converted to the appropriate transaction format per MILSBILLS procedures under DLM 4000.25, Volume 4, Finance, for the DLMS 812R (DIC FAE).

	C17.5.12.  Financial Discrepancy.  Financial discrepancies reported to the ILCO on a SDR will be forwarded to DFAS-DE/I for processing.

	C17.5.13.  Management Evaluation.  As a minimum, the ILCO must have visibility of detail/summary reports that show:

		C17.5.13.1.  The number of SDRs received during a particular time standard by customer with breakdown by shipping activity showing dollar value and discrepancy type.  Reports will measure customer compliance with SDR submission time standards and ILCO compliance with SDR processing time standards.

		C17.5.13.2.  A breakdown of SDR action activity response showing actions taken to include dollar value of credit authorized and reshipped materiel.  

	C17.5.14.  Responsibilities

		C17.5.14.1.  The ILCO will:

			C17.5.14.1.1.  Complete initial SDR screening in accordance with this manual and DoD 5105.38-M.

			C17.5.14.1.2.  Review all SDRs received for processing and determine proper course of action based on available case history data.  Reject discrepancy reports that fail to meet Security Assistance time and dollar standards (with exception of those that require disposition instructions for wrong item received or misdirected shipments) or do not contain required data, unless such data is readily available, at the ILCO.  Forward SDRs to the appropriate ICP/IMM, shipping depot, or GSA action activity.

			C17.5.14.1.3.  Forward the SDR and supporting documentation to the implementing agency’s Headquarters element for review and approval, prior to submission to DSCA, if recommending FMS administrative surcharge funds exceeding $50,000 be used to resolve an SDR.  This is a manual process outside WebSDR transaction exchange.

			C17.5.14.1.4.  Reject duplicate SDRs, except those that are resubmitted to request reconsideration of previous decision.

			C17.5.14.1.5.  Review all requests for reconsideration that contest a reconsideration decision (second request for reconsideration).  Reject those requests that lack sufficient justification or were not received within the established time standards.

			C17.5.14.1.6.  Process to the Security Assistance customer initial acknowledgement of receipt of SDR replies and/or denials.

			C17.5.14.1.7.  Report the disposition of SDRs applicable to materiel and services to the DFAS-DE/I as required in the DoD 7000.14-R, Volume 15.

			C17.5.14.1.8.  Review SDR replies from action activities for completeness and reject those that do not specify necessary information, (e.g. disposition instructions for discrepant materiel).  Under DLMS transactional exchange, the ILCO reject transaction may be directed to the action activity to identify necessary corrections.  A maximum of five ILCO rejections per SDR control number is allowed.  However, after three ILCO reject transactions, it may be more appropriate for the ILCO to contact the action activity off-line to clarify the issues involved. 

			C17.5.14.1.9.  Maintain records of all Security Assistance-related discrepancy reports to completion.

		C17.5.14.2.  The DoD ICP/IMM, shipping depot, or GSA will:

			C17.5.14.2.1.  Review all SDRs received for processing and determine proper course of action based on available supply records and the results of investigation.

			C17.5.14.2.2.  Furnish properly completed SDRs to the ILCO for further processing to the Security Assistance customer.  The action activity will cite the appropriate reply code (Appendix 7.28).  

			C17.5.14.2.3.  Based upon the validated SDR, request that DFAS authorize adjustment/credit in accordance with MILSBILLS procedures under DLM 4000.25, Volume 4, Finance.

			C17.5.14.2.4.  Provide signed evidence of shipment to the ILCO when non-receipt of materiel is involved.  If this documentation cannot be provided, appropriate credit is required.

			C17.5.14.2.5.  Provide documentation that is matched to the quantity shipped for concealed shortages.  Examples of such documentation are those that contain size, total weight, and cube accepted by the carrier.  Credit is denied if the documentation, in conjunction with the unit weight, supports shipment of the total quantity billed.  Otherwise, appropriate credit for the difference is required.  

C17-63	CHAPTER 17