DEFENSE LOGISTICS AGENCY

 HEADQUARTERS

 8725 JOHN J. KINGMAN ROAD

 FORT BELVOIR, VIRGINIA 22060-6221

September 28, 2017

MEMORANDUM FOR DOD SUPPLY PROCESS REVIEW COMMITTEE (PRC) AND 

JOINT PHYSICAL INVENTORY WORKING GROUP (JPIWG) MEMBERS

SUBJECT: Approved Defense Logistics Management Standards (DLMS) Change (ADC) 1247,

Add Flexibility to the General Supply Accuracy Goals Requirements under 

Inventory Prioritization (JPIWG)

We are forwarding the attached approved change to DLM 4000.25, Defense Logistics 

Management Standards, and DLM 4000.25-2, Military Standard Transaction Reporting and 

Accountability Procedures (MILSTRAP) for immediate implementation. It is the responsibility 

of the Component Supply PRC representative to ensure full compliance of the approved change

within your Component. 

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

Others may direct questions to their respective Service or Agency designated JPIWG representative 

available at http://www.dla.mil/HQ/InformationOperations/DLMS/committees/.

HEIDI M. DAVEREDE

Program Manager

Enterprise Business Standards Office 

Attachment

As stated 

cc: 

ODASD (SCI)
Attachment, ADC 1247

Page 1

Attachment ADC 1247

Add Flexibility to the General Supply Accuracy Goals

Requirements under Inventory Prioritization

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION:

a. Technical POC: Mr. Benjamin Wagner, Navy, N3/4 Materiel Control Team, email: 

benjamin.wagner1@navy.mil

b. Functional POC: Mr. Rafael Gonzalez, DLMS Program Office; (717) 770-6817; 

DSN 771-6817; email: rafael.gonzalez@dla.mil

2. FUNCTIONAL AREA:

a. Primary/Secondary Functional Area: Inventory

b. Primary/Secondary Functional Process: General Supply Accuracy Goals

3. REFERENCES:

a. PDC 1247, Add Flexibility to the General Supply Accuracy Goals Requirements 

under Inventory Prioritization, March 3, 2017.

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

Inventory Control.

c. DLM 4000.25-2, Military Standard Transaction Reporting and Accountability 

Procedures (MILSTRAP), Chapter 7 Physical Inventory Control.

d. Office of the Under Secretary Defense (OUSD), Memorandum dated October 29, 

1997, Establishment of an Inventory Accuracy Standard.

e. Joint Physical Inventory Working Group (JPIWG) Meeting Minutes February 5, 1998.

f. JPIWG 16-02 Meeting Minutes, June 29, 2016

4. REQUESTED CHANGE(S):

a. Brief Overview of Change: Revise DLM 4000.25, DLMS, Volume 2 (Reference 

3.b.) and MILSTRAP (Reference 3.c.) to allow the General Supplies Record Accuracy Goals 

stratification categories B and C to be optional.

b. Background:

(1) The Office of the Under the Secretary of Defense issued a Memorandum 

dated October 29, 1997 (Reference 3.d.) directing the JPIWG to develop a standard for 

measuring inventory record accuracy using random statistical sampling. In response to that 
Attachment, ADC 1247

Page 2

memorandum, the JPIWG developed the General Supplies Record Accuracy Goals in February 

1998. The JPIWG members initially developed six categories for the General Supply Record 

Accuracy Goals to include Classified/Sensitive and Pilferable (Reference 3.e.). JPIWG members 

subsequently refined the goals to comprise only four categories, eliminating separate categories 

for controlled items. 

(2) In 1998, the Navy asked for an exemption from incorporating the Inventory 

Records Accuracy Goal Category D (national stock number (NSN) activity greater than 50). 

(Reference 3.e.) Navy indicated that their OCONUS depots, which have NSN activity greater 

than 50, would have transitioned to DLA before implementing these goals in Navy systems. 

While the value of inventory that falls in categories B and C for each Service is very low, 

Services expend significant numbers of labor hours to gather the necessary information for the 

General Supplies Record Accuracy Goals report. During the June 29, 2016 JPIWG Meeting

(Reference 3.f.), working group members discussed whether stratifying inventory into categories 

B and C was still required. Some members of the working group expressed concern that

eliminating these categories would provide less granularity on inventory metrics. The working 

group reached consensus to keep categories B and C, but make them optional rather than 

required. In response, the Navy drafted a Proposed DLMS Change (PDC) to make categories B 

and C optional in DLMS and MILSTRAP procedures.

c. Requested Change in Detail: Revise DLM 4000.25 series, Physical Inventory 

Control requirements for the General Supplies Record Accuracy Goals to make categories B and 

C optional. This will provide the Services with the reporting flexibility they need, but still 

provide Agencies more granular inventory metrics as necessary

d. Revisions to DLM 4000.25 Manuals:

(1) Revise DLM 4000.25, Volume 2, Supply Standards and Procedures, Chapter

6, Physical Inventory Control as follows:

[Preceding text not shown]

C6.2.12.5. General Supplies Record Accuracy Goals.

2 DoD Components must send 

record accuracy goal information to ODASD (SCI) within 30 calendar days after the end of 

each fiscal year. For the purposes of this report, Categories B and C in Table C6.T1. are 

optional. The collection of data may occur throughout the year. See Table C6.T1.

Table C7.T1. General Supplies Record Accuracy Goals

Stratification Sub-Populations and Associated Goals and Tolerance Levels

CATEGORY SUB-POPULATION GOAL

(PERCENT)

TOLERANCE

(PERCENT)

A UNIT PRICE > $1,000 99 0
Attachment, ADC 1247

Page 3

Table C7.T1. General Supplies Record Accuracy Goals

Stratification Sub-Populations and Associated Goals and Tolerance Levels

CATEGORY SUB-POPULATION GOAL

(PERCENT)

TOLERANCE

(PERCENT)

B* UNITS OF ISSUE THAT MAY BE 

NONDEFINITIVE OR DIFFICULT TO 

MEASURE

OR

(ON-HAND BAL > 50 AND EXTENDED 

VALUE < $50,000)

OR

NSN ACTIVITY (# transactions affecting balance 

in one year) > 50

95 10

C* DATE OF LAST INVENTORY > 24 MONTHS 

AND 

ON-HAND BALANCE < 50

95 5

D ALL OTHER MATERIEL NOT MEETING 

ABOVE CRITERIA

95 0

*Categories B and C are optional. 

95 percent Confidence Level

+4 percent Bound applicable to each category

______

2

Within 30 calendar days after the end of the 4th quarter each fiscal year, the DoD Components must send 

record accuracy goal information to ADUSD (L&MR/SCI). Data may be obtained throughout the year.

(2) Revise DLM 4000.25-2, MILSTRAP Chapter 7, Physical Inventory Control

as follows:

[Preceding text not shown]

C7.2.12.5. General Supplies Record Accuracy Goals.

2

 DoD Components must send 

record accuracy goal information to ODASD (SCI) within 30 calendar days after the end of 

each fiscal year. For the purposes of this report, Categories B and C in Table C7.T1. are 

optional. The collection of data may occur throughout the year. See Table C7.T1.

Table C7.T1. General Supplies Record Accuracy Goals

Stratification Sub-Populations and Associated Goals and Tolerance Levels

CATEGORY SUB-POPULATION GOAL

(PERCENT)

TOLERANCE

(PERCENT)

A UNIT PRICE > $1,000 99 0

B* UNITS OF ISSUE THAT MAY BE 

NONDEFINITIVE OR DIFFICULT TO 

MEASURE

OR

(ON-HAND BAL > 50 AND EXTENDED 

VALUE < $50,000)

OR

95 10
Attachment, ADC 1247

Page 4

Table C7.T1. General Supplies Record Accuracy Goals

Stratification Sub-Populations and Associated Goals and Tolerance Levels

CATEGORY SUB-POPULATION GOAL

(PERCENT)

TOLERANCE

(PERCENT)

NSN ACTIVITY (# transactions affecting balance 

in one year) > 50

C* DATE OF LAST INVENTORY > 24 MONTHS 

AND 

ON-HAND BALANCE < 50

95 5

D ALL OTHER MATERIEL NOT MEETING 

ABOVE CRITERIA

95 0

*Categories B and C are optional. 

95 percent Confidence Level

+4 percent Bound applicable to each category

______

2

Within 30 calendar days after the end of the 4th quarter each fiscal year, the DoD Components must send 

record accuracy goal information to ADUSD (L&MR/SCI). Data may be obtained throughout the year.

5. REASON FOR CHANGE: During the JPIWG meeting on June 29, 2016, members 

determined that separate reporting of categories B and C are no longer required and instead 

optional.

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: Removes burden from Services to report categories that are no longer 

applicable to military services but also allows other Components to continue capturing a more 

granular inventory metrics as deemed necessary.

b. Disadvantages: There are no known disadvantages

7. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: Immediately upon the 

release of the Approved DLMS Change (ADC).

8. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: The Navy requires 33,600 labor hours per year 

to gather the appropriate information for the General supply Accuracy Goals Categories B and C, 

to include NAVSEA and NAVAIR. 33,600 hours x $22.00 basic pay = $739,200 yearly cost 

avoidance. This estimate does not include additional savings from other military services.

9. IMPACT:

a. New/Change DLMS Data Elements: There are no changes or new DLMS data 

elements required.

b. Automated Information Systems (AIS): There is no impact to any DOD 

Component systems
Attachment, ADC 1247

Page 5

c. Defense Automatic Addressing System (DAAS): There are no changes to current 

transaction flows and mappings through DAAS.

d. Non-DLM 4000.25 Series Publications: DOD Components should update internal 

guidance to comply with procedures defined in this DLMS change.

10. PROPOSED DLMS CHANGE (PDC) 1217 STAFFING RESPONSE/COMMENT 

RESOLUTION:

Originator Response/Comment Disposition

1. US Army (AMC 

G3/4 Secondary 

Items 

Requirements 

Branch)

Concur without comment. Noted.

2. Navy/NAVSUP Concur without comment. Noted.

3. Air Force Concur without comment. Noted.

4. Marine Corps Concur without comment. Noted.

5. DLA Concur without comment. Noted.

6. USTRANSCOM None

7. DAAS None