OFFICE OF THE ASSISTANT SECRETARY OF DEFENSE

3500 DEFENSE PENTAGON

WASHINGTON, DC 20301-3500

SUSTAINMENT

MEMORANDUM FOR DOD SUPPLY PROCESS REVIEW COMMITTEE

SUBJECT: Approved Defense Logistics Management Standards Change 1392, ShelfLife Type I Non-Extendible Materiel at Receipt

The attached change to Defense Logistics Managment Standards, as outlined in the 

attachment, is approved for implementation. 

Addressees may direct questions to Mr. Benjamin Breen, e-mail: Benjamin.Breen@dla.mil.

Others must direct questions to their Service or Agency designated Process Review Committee 

representative available at https://www.dla.mil/HQ/InformationOperations/DLMS/allpoc/. 

Leigh E. Method, SES 

Deputy Assistant Secretary of Defense 

 for Logistics 

Attachment:

As stated 

cc: 

ODASD(Logistics)

DoD SDR PRC
Attachment, ADC 1392

Page 1

ADC 1392

Shelf-Life Type I Non-Extendible Materiel at Receipt 

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: 

Technical POC: Mr. Steven Nace, DLA J344 Technical and Quality Programs, e-mail: 

steven.nace@dla.mil

2. REFERENCE: 

a. DoDM 4140.27, Volume 2, DoD Shelf-Life Management Program: Materiel Quality 

Control Storage Standards, November 7, 2019

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

Procedures, Chapter 13, Materiel Receipt and Chapter 17 Supply Discrepancy Reporting

3. APPROVED CHANGE(S): Substantial changes after formal coordination with the DoD 

Components are shown in green highlight.

a. Brief Overview of Change: This change updates the automatic disposal procedures

for expired materiel classified as a Type I Shelf-Life non-extendible, or whose expiration cannot 

be identified upon return from DoD customers to distribution centers. The intent of this change 

is to authorize storage activities to initiate the disposal of qualifying materiel regardless of 

owner, value, or supply condition code. This change does not revise current practices for 

handling and disposal of controlled items.

b. Background:

(1) DoDM 4140.27 (Reference 2.a.) states that except for some kits and specially 

designated medical pharmaceutical items, Type I shelf-life items have an assigned finite shelflife and are not authorized for extension. Type I, non-extendible shelf-life items will downgrade 

from Supply Condition Code (SCC) A to B to C to H in accordance with DLM 4000.25, Volume 

2, (Reference 2.b.). A disposal action against Type I expired materiel could take significant time 

resulting in unnecessary storage cost. In March 2020, the DLA Enterprise Suspended Stock 

Integrated Product Team (IPT) determined that current practices for Type I materiel were not 

practical or cost efficient for the DoD. 

(2) In October 2020, DLA submitted a change to introduce the automatic

disposal of all Type I expired materiel regardless of the owner, SCC, or unit price. This 

approach at the time was in direct conflict with DoDM 4140.27 (Reference 2. a.) primarily due 

to concerns with auto disposing controlled items. In February 2021, DLA and 

ODASD(Logistics) agreed to limit the scope of the change to Demilitarization (DEMIL) Code A.

The current language in this change does NOT exclude any items based on the controlled 

inventory item code (CIIC) as the determination to proceed with the disposal action will be done 

by the person processing the receipt as opposed to the system. Once the disposal decision is 

made, current practices and procedures for the handling and the disposal of controlled items will 

take place.
Attachment, ADC 1392

Page 2

(3) DoD defines DEMIL Code A as items subject to the Export Administration 

Regulations (EAR) in parts 773-74 of Title 15, Code of Federal Regulations (Commerce Control

List Items or EAR99) and determined by the DoD to present a low risk when released out of 

DoD control. No DEMIL, mutilation or end use certificate is required. But these items may 

require an export license from Department of Commerce. 

c. Approved Change in Detail: This change updates the automatic disposal procedures

for expired materiel classified as a Type I Shelf-Life non-extendible, or whose expiration cannot 

be identified upon return from DoD customers to distribution centers. The intent of this change 

is to authorize storage activities to initiate the disposal of qualifying materiel regardless of 

owner, value, or supply condition code. Automatic disposal procedures only apply to DEMIL 

Code A materiel. The term automatic disposal refers to the actions taken by the storage activity 

to identify and initiate the disposal of qualifying materiel. Once the disposal decision is made, 

current practices and procedures for the handling and the disposal of controlled items will take 

place. Unless by exception, all expired materiel that meets these conditions will go directly to 

disposal regardless of ownership, condition code, or unit price. The storage activity will submit

an informational only SDR during the receipt process.

(1) Disposal at time of receipt (automatic disposal) applies to expired materiel 

Type I or whose expiration cannot be identified except for:

(a) other than DEMIL Code A materiel,

(b) new procurement materiel,

(c) FSC 6505 – Medical Pharmaceuticals, is covered by the DoD Food 

and Drug Administration Shelf-Life Extension Program, and

(d) materiel identified as product quality deficiency report (PQDR)

exhibits. This is materiel receipted into Supply Condition Code Q and associated to a PQDR 

report control number. 

d. Revisions to Defense Logistics Manuals: Update DLM 4000.25 Volume 2, Chapter 

13 and Chapter 17 as shown in the enclosure.

e. Approved Transaction Flow: Follows the same process for materiel found to be not 

serviceable at time of receipt. 

f. Alternatives: None noted.

4. REASON FOR CHANGE: Automatic disposal of qualifying materiel reduces the need for 

additional research when the shelf-life of the item cannot be extended and the item cannot be 

used by the Components. 
Attachment, ADC 1392

Page 3

5. ADVANTAGES AND DISADVANTAGES:

a. Advantages: Reduces the amount of suspended stock as well as storage cost for the 

Services. 

b. Disadvantages: None identified.

6. ESTIMATED TIMELINE/IMPLEMENTATION TARGET: The procedures in this 

change will take place upon approval.

7. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: This change eliminates the need for further 

research on qualifying expired materiel that will ultimately end up at disposal. Upon 

implementation, the change expects to show a reduction in suspended stock and consequently 

storage footprint that could eventually translate into storage cost savings. However, the intent of 

this change is not to achieve cost savings/avoidance. 

8. IMPACT: 

a. New/Changes Data Elements: None.

b. Automated Information Systems (AIS): This change impacts the Distribution 

Standard System and the DLA Warehousing Management system. 

c. Defense Automatic Addressing System (DAAS): None.

d. Non-DLM Publications: Components will need to update any applicable standard 

operating procedures to reflect this change. 

9. PROPOSED STANDARDS CHANGE (PDC) 1392 RESPONSE/COMMENT 

RESOLUTION:

Component Response/Comment Disposition

1. ODASD(Logistics) Concur with comment.

Comments: ODASD(Logistics) has reviewed the 

subject Proposed Standards Change (PDC) and 

concurs with comments. Please refer to the attached 

copy of the PDC with our comments included. If there 

are any additional questions or concerns, please 

contact Nate Wurst at 571-372-8590, 

nathan.j.wurst.ctr@mail.mil.

Consistency in terminology for term “automatic 

disposal.”

As noted.

DLA Response: Revised for 

clarification.

2. U.S. Army Concur without comments. As noted.

DLA Response: Army, 

ODASD(Log), and DLA met 
Attachment, ADC 1392

Page 4

Additional Comment: There are CL VIII materiel and 

supplies that have DEMIL Code of "A" with a CIIC = 

"Q" Example: NSN: 6505-01-505-3476 / SNOMEN: 

DIAZEPAM INJECTION component within UAL: 

258C. CIIC “Q” is a Controlled Substance that 

requires secure storage and handling. Depending on 

the definition of "the automatic disposal process", the 

CIIC status may need to be include as part of the "the 

automatic disposal process"

to discuss whether CIIC other 

than U should be added as an 

exception. DLA confirmed 

disposal procedures, and the 

treatment of controlled items, 

will not change because of the 

PDC. The intent of this 

change is to authorize the 

storage activity to begin the 

disposal actions for type I 

materiel and not to modify 

existing practices for the 

handling and disposal of 

controlled items. Based on 

this, there should not be a 

need to expand the list of 

exceptions.

3. U.S. Navy Concur as written. None.

4. U.S. Force Concurs with comments. As noted.

DLA Response: Updated 

paragraph to clarify that 

automatic disposal will not be 

based on CIIC as the disposal 

decision is done by receiving 

operator at time of receipt. 

Also further explained the 

term automatic disposal. 

5. U.S. Marine Corps Concur as written. None.

6. DLA Concur with comments.

1. Include exception of material that would have a 

Future date change to Shelf Life which would render 

the material Shelf Life not expired.

2. Why not also extend this to Type II materials 

which have reached the end of their extensions?

3.After "DoDM 4140.27..." Delete "(Reference 3. 

a.)" and replace with "(Reference 2. a.)"

As noted.

DLA Response:

1. Noted. No change is 

needed. This change already 

applies to Type I whose shelf 

life cannot be extended.

2. At the end of Type II SL 

(after all extensions) the item 

is basically handled the same 

way.

3. Resolved. After "DoDM 

4140.27..." Delete 

"(Reference 3. a.)" and replace 

with "(Reference 2. a.)"

7. DAAS Concur as written. None.

8. USTRANSCOM Abstains. As noted.
Enclosure, ADC 1392

Page 1

Enclosure

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

Make the following changes to Volume 2. Additions are shown in red bold italics, and deletions 

are shown with double strikethrough text.

A. Chapter 13 Materiel Receipt

Preceding text not shown

C13.2.5. Materiel Receipt Inspection Procedures. When shipments of materiel 

received from procurement instrument sources require inspection and/or acceptance at 

destination, receiving storage activities must do the inspection and/or acceptance and 

the in check operations as concurrent actions. Receiving activities will:

C13.2.5.1. Inspect shelf-life materiel for appropriate condition and type of 

shelf-life code in accordance with applicable DoD Component procedures based on 

DoDM 4140.27, “DoD Shelf-Life Management Program”, Volumes 1 and 2.

C13.2.5.1.1. Mark materiel, as appropriate, for shelf-life code and 

supply condition code (SCC) upon receipt. 

C13.2.5.1.2. Package markings must be in accordance with MIL-STD129. 

C13.2.5.2. Based on inspection, prepare a Materiel Receipt Transaction 

indicating the date inspected and the actual condition(s), by quantity, of the materiel 

received. Wholesale owners will make this date available to the office responsible for 

contractor payment for use in determining if an interest penalty applies.

C13.2.5.3. Shelf-life items in the category, Type I Non-Extendible items. 

C13.2.5.3.1. Expired materiel identified as Type I, or whose 

expiration cannot be identified at time of receipt will result in automatic disposal, 

regardless of ownership, condition code, or unit price. The automatic disposal 

process only applies to Demilitarization (DEMIL) Code A materiel. The term 

automatic disposal refers to actions taken by the storage activity to identify and 

initiate disposal of qualifying materiel. Once the materiel is re-classified to 

Supply Condition Code H, existing procedures for the handling and the disposal 

of controlled items will take place. 

C13.2.5.3.2. Exceptions to the Automatic Disposal Process:

C13.2.5.3.1.1. Other than DEMIL Code A materiel 

C13.2.5.3.1.2. New procurement materiel
Enclosure, ADC 1392

Page 2

C13.2.5.3.1.3. 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. 

C13.2.5.3.1.4. 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). 

Intervening text not shown

C13.2.9.3.10. Reporting Discrepant Receipts - Other than Procurement 

Instrument Source. Receiving activities will follow these procedures to report receipt of 

discrepant shipments from non-procurement instrument source. With the exception of 

the receipt of wrong items, use a single Receipt Transaction to report the receipt 

showing both non-discrepant and discrepant quantities in their appropriate SCC. The 

following discrepancy categories are not mutually exclusive; multiple discrepancy 

conditions may exist for a single receipt:

C13.2.9.3.10.1. Condition of Materiel

C13.2.9.3.10.1.1. No PMR File Exists. When athe PMR is 

not available, the receiving activity will report the receipt using documentation, 

packaging, and other information, as available and submit the information only SDR 

to the materiel owner. DLA Distribution Centers will prepare an SDR to report the lack 

of a PMR to the manager (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. Materiel will be sent to the DLA Disposition 

Services activity wWhen inspection of inter-DoD Component receipts reveal materiel 

to be SCC H, and valued at less than $500 per item and no PMR file exists 

automatically ship discrepant materiel valued at less than $500 per item direct to the 

DLA Disposition Services activity except as specified in these procedures or take other 

automatic disposal action based on criteria issued by the DoD Components. This 

includes expired shelf-life materiel identified as Type I, or whose expiration cannot 

be identified at time of receipt Type I shelf-life material which has passed the 

expiration date regardless of ownership, supply condition code, or dollar value, 

except as listed in C13.2.5.3.2. When taking automatic disposal action, cite SCC H 

and Management Code M or T in the Receipt Transaction, in addition to the discrepant 

receipt management code, for the discrepant quantity. To establish an audit trail when 

materiel is condemned upon receipt and shipped directly to DLA Disposition Services, 

cite the disposal turn-in document number in the Receipt Transaction in addition to the 

original document number.
Enclosure, ADC 1392

Page 3

B. Chapter 17 Supply Discrepancy Reporting

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.submit an SDR.

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).