OFFICE OF THE ASSISTANT SECRETARY OF DEFENSE

3500 DEFENSE PENTAGON

WASHINGTON, DC 20301-3500

 

 

 SUSTAINMENT

MEMORANDUM FOR SUPPLY PROCESS REVIEW COMMITTEE

SUBJECT: Approved Defense Logistics Management Standards Change 1262A, Revision of 

Location Survey Requirements under Records Reconciliation Program for 

Controlled Items (Supply) 

The Defense Logistics Management Standards change, as outlined in the attachment, is 

approved for implementation.

Addressees may direct questions to Rafael Gonzalez, email: rafael.gonzalez@dla.mil. 

Others must contact their designated PRC representative available at 

https://www.dla.mil/Defense-Data-Standards/Committees/Contacts/. 

 

 Leigh E. Method, SES 

 Deputy Assistant Secretary of Defense 

 for Logistics 

Attachment:

As stated

cc: 

OUSD(C)

DLA J6DS
Attachment, ADC 1262A

Page 1

Approved Defense Logistics Management Standards Change 1262A

Revision of Location Survey Requirements under Records Reconciliation 

Program for Controlled Items 

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: 

a. Technical POC: Defense Logistics Agency (DLA), DLA HQ, J-345 Office, Troy 

Brown, (717) 770-3120 or DSN (771); email: Troy.Brown@dla.mil. 

b. Functional POC: Defense Enterprise Data Standards Office (DEDSO), Rafael 

Gonzalez, email: Rafael.Gonzalez@dla.mil. 

2. REASON FOR CHANGE: 

a. Bottom Line Up-Front: This change amends Approved Defense Logistics 

Management Standards (DLMS) Change (ADC) 1262, Revision of Location Survey 

Requirements under Records Reconciliation Program (Reference 10.a) and removes the 

exemption for controlled items from the annual requirements for storage activities to perform 

location surveys in combination with other physical inventories as stated in Chapter 6 of the 

Defense Logistics Manual (DLM) 4000.25, Volume 2, Supply Standards and Procedures 

(Reference 10.b). 

b. Background: 

(1) Under ADC 1262, storage activities may use qualifying inventory activities to 

meet the physical inventory and location survey requirements under DLM 4000.25. However, 

controlled items were excluded due to the type of commodity.

(2) After coordination of ADC 1262, Department of Defense (DoD) Instruction 

4140.73, Asset Physical Accountability Policy (Reference 10.c) introduced several changes to 

the physical inventory program. Among those changes, the policy requires DoD storage 

activities to perform a full inventory count and location survey on an annual basis. This policy 

requires additional resources for storage activities not contemplated when developing ADC 

1262. Consequently, DLA submitted a request to remove the exception for controlled items in

Reference 10.b. Removing this exception will allow storage activities to better manage and 

prioritize resources to meet the policy requirements under Reference 10.c.

3. CHANGE IN DETAIL: 

a. Technical Details: This change removes the exemption for controlled items from the 

annual requirements for storage activities stated under Reference 10.b. As a result, storage 

activities will now be able to conduct physical inventory counts and location surveys 

simultaneously on all items, regardless of commodity. 

b. Revised Transaction Flow: This change has no impact on the flow of transactions.
Attachment, ADC 1262A

Page 2 

4. IMPLEMENTATION TARGET: There are no known system changes expected. 

Consequently, this change will be implemented upon approval. 

5. TECHNICAL IMPACT: 

a. Additions or Changes to Data Elements: No impact. 

b. Automated Information Systems (AIS): No system impact reported. 

c. Defense Automatic Addressing System (DAAS): No impact. 

6. PUBLICATION/POLICY IMPACT: 

a. Defense Logistics Manual (DLM) 4000.25: This change revises DLM 4000.25, 

Volume 2, Chapter 6, Physical Inventory Control, as specified in the enclosure.

b. Non-DLM 4000.25 Publications: No publication changes reported. 

7. ASSUMPTIONS: None.

8. FINANCIAL IMPROVEMENT AND AUDIT REMEDIATION (FIAR), MATERIAL 

WEAKNESS, AND AUDIT-RELATED INFORMATION: 

a. Notice of Findings and Recommendations (NFR): Not applicable.

b. Corrective Action Plan (CAP) References: Not applicable.

9. Other FIAR, Material Weakness, and Audit-Related Information: No audit related 

information reported. END-TO-END TESTING REQUIREMENTS: Not applicable.

10. REFERENCES: 

a. ADC 1262, Revision of Location Survey Requirements under Records Reconciliation 

Program, January 22, 2022 

b. DLM 4000.25, DLMS, Volume 2, Supply Standards and Procedures, Chapter 6, 

Physical Inventory Control, April 9, 2022 

c. DoDI 4140.73, Asset Physical Accountability Policy, June 4, 2021

11. PROPOSED DLMS CHANGE (PDC) 1262A RESPONSE/COMMENT 

RESOLUTION: 

Component Response/Comment Disposition

1. DLA Concur. N/A

2. Navy Concur. N/A
Attachment, ADC 1262A

Page 3

3. Air Force Concur. N/A 

4. US Army Concur. N/A

5. USMC No response received. N/A

6. DAAS Concur. N/A

7. USTRANSCOM No impact. N/A

8. GSA No response received. N/A
Enclosure, ADC 1262A

Page 1 

Enclosure

Revisions to Defense Logistics Manual (DLM) 4000.25, Volume 2, Supply Standards and 

Procedures, Chapter 6, Physical Inventory Control 

Deletions are shown by double strikethrough text. 

C6.8.1. Location Survey

[Intervening text not shown] 

 C6.8.1.3. Storage locations that have undergone a qualifying physical 

inventory action within the previous 12 months, with the exception of controlled item(s),

may be considered to have satisfied the annual location survey requirements stated in 

paragraph C6.8.1.2. A qualifying inventory action is one where the storage activity 

performs a successful physical verification of the item(s) between the physical asset(s) 

and the recorded location data. The storage activity has the option to perform a second 

location survey as necessary, but it is not required for the purpose of the annual location 

survey. These procedures do not overwrite current guidance and procedures for any 

discrepancies found at the location.