Attachment,

Page 1

 August 19, 2013

MEMORANDUM FOR RECORD

SUBJECT: Joint Supply Discrepancy Report (SDR)/Stock Readiness Committee Meeting: 

Defense Logistics Agency (DLA)-Managed, Service-Owned Suspended Stock, SDR/ 

Storage Quality Control Report (SQCR) Process Meeting, July 31, 2013

Purpose: DLA J33 and the DLA Logistics Management Standards Office jointly hosted the subject 

meeting at DLA Headquarters in Ft. Belvoir, Virginia. This was a focused topic meeting specific to 

new procedures being proposed for handling suspended stock managed by DLA and owned by the 

Services. A list of attendees and briefing materials are available on the SDR Committee PRC 

Webpage: www.dla.mil/j-6/dlmso/Programs/Committees/Supply/supplySDR.asp.

Brief Summary of Discussion: Ms. Vickie Edgar, Ms. Jackie Salus, and Ms. Ellen Hilert presented 

the background and step-by-step process for the proposed procedures. This issue was originally 

brought up at the Stock Readiness meeting in November 2012. Subsequently, DLA personnel 

conducted a series of internal meetings to develop the proposal for presentation to the Services. 

a. Draft PDC 1084, New Procedures for DLA- Managed Service-Owned Suspended 

Stock Stored in DLA Distribution Locations. This proposed change allows credit to be issued 

under the SDR program for Service-owned/DLA-managed suspended stock stored at a DLA 

Distribution location when a stock screening request (SSR) results in identification of suspected 

non-compliant materiel. This change leverages existing procedures for processing of the SSR, 

SQCR, and SDR to accomplish the necessary steps with minimal system impact. The intent is for 

the original SSR number, and PQDR number when applicable, to be perpetuated throughout the 

process to provide traceability. By restricting the necessary system changes, it is hoped that this 

change could be implemented in the near term.

(1) Process Background. When DLA submits an SSR to DLA Distribution

locations, all stock under DLA Distribution visibility is screened regardless of ownership. A

manager may request the stock screening action during evaluation of a product quality deficiency 

report or other suspected contractor non-compliance. When stock is screened, if there are multiple 

owners, stock under DLA ownership will be suspended first. Any remaining stock will be divided 

equally among the remaining owners. The SSR is systemically directed to all locations that employ 

the DLA Distribution Standard System (DSS), including industrial activities/partner sites, 

simultaneously. When an SSR results in identification of suspected non-compliant materiel, stock is 

suspended and an SQCR, DD 1225, is sent to the owner(s) for disposition. Non-DLA owners may

not know why their materiel is suspended and may not provide disposition instructions. As a result,

the materiel remains in a suspended condition indefinitely. Furthermore, when this type of materiel 

is non-compliant, non-DLA owners do not have recourse for action against the contractor since the 

materiel was bought under a DLA contract. DLA is the contracting authority and has the 

responsibility to negotiate returns/credit with the contractor.
Attachment,

Page 2

(2) Proposed Process 

(a) When DLA Distribution locations receive an SSR from the DLA Supply 

Chain and the result is downgrading stock to an unserviceable Supply Condition Code J, L, or Q, 

the DLA Distribution location will submit an SQCR to the Service owners with instructions for an 

SDR to be submitted to DLA. The Service owner SDR submission will request credit and provide

the following information: 

1. The original document number or a constructed document number 

(when the original document number is not known). When using a constructed document number, 

the applicable fund code must also be provided and the DoDAAC to receive credit if different from 

the document number.

2. New Discrepancy Code Q23, Suspended stock screen item (quality 

deficiency or contractual non-compliance).

3. The SSR number referenced on the SQCR.

(b) If the investigation associated with the SSR is still pending, the DLA 

Supply Chain will submit an interim reply to the SDR. [Creation of an interim reply is not current 

functionality for DLA Enterprise Business System (EBS) and may require a delayed implementation 

if DLA WebSDR direct input is not used as an interim measure. Components would need to be 

aware that this could result in SDRs remaining in an open status for very long periods of time with 

no indication that they have been received and that investigation is underway.] If the materiel is 

determined to be conforming, no credit will be provided, and the owner will be told via SDR reply to 

return the materiel to stock in serviceable condition. If materiel is determined to be non-conforming, 

credit will be provided, and the owner will be told via SDR reply to return the materiel to DLA using 

a ship-to-self materiel release order (MRO) directed to the DLA Distribution location. DLA will 

provide a prepositioned materiel receipt to the DLA Distribution location to ensure proper 

processing of the resulting receipt. The ship-to-self MRO will transfer ownership without physical 

movement of the materiel. The SDR reply will also tell the materiel owner to close out the open 

SQCR by direct response to the submitting activity. When the non-conforming materiel is returned 

to DLA, the DLA Distribution location will create a new SQCR to DLA as the new owner and 

reference the original SSR number. DLA will then provide appropriate disposition instructions to 

close the “follow-on” SQCR. An updated process flow is shown at the enclosure.

(3) Action Items: 

(a) Ms. Hilert requested an estimated volume of materiel effected by this 

issue as a justification for the PDC. DLA Distribution has been asked to determine the 

volume/dollar-value of DLA-managed/Service-owned materiel in suspended stock due to an SSR.

(b) The Services were asked to confirm that there is a requirement to identify 

a separate DoDAAC to receive credit when using a constructed document number (would two 

different DoDAACs ever be involved for this process). 

(c) It was reiterated during the discussion that this process is only for DLAmanaged/Service-owned stock located in activities supported by DSS. There is a parallel process for 

Enclosure,

Page 1