2 ADC 418 

ADC 418 

Advice Code 2W for Free Issue 

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: NAVSUP-E, 

717-605-7047

2. FUNCTIONAL AREA: 

 a. Primary/Secondary Functional Area: Primary Supply/Logistics 

 b. Primary/Secondary Functional Process: Order Fulfillment/Requisition Processing 

3. BACKGROUND: Staffing Note: Subsequent to staffing, this change was modified to 

authorize use by the Marine Corps.

 a. Intent of the request: 

 (1) To modify the definition and usage of Advice Code 2W restricting to Navy and 

Marine Corps only. Under MILSTRIP, this code was originally authorized for FMS customers 

only. However, DAAS history from 2007 to present shows no Security Assistance requisitions 

citing Advice Code 2W. Army customers appear to be using the code (plus USCG requisition in 

2007). All Components (including International Logistics Control Offices (ILCOs) and the 

Defense Security Cooperation Agency (DSCA) were asked to verify if there is a continued 

requirement for the use of Advice Code 2W for Military Assistance Program/Military Assistance 

Service Funded (MAP/ MASF). 

 (2) Intra-Navy/Marine Corps and Navy/DLA interface under BRAC IMSP: To 

authorize Navy use of existing Advice Code 2W to identify internal customer requisitions which 

are only to be satisfied through Navy-owned residual end-use assets managed under Navy ERP 

(Routing Identifier NRP). This will require expanding the definition of Advice Code 2W as 

published in DoD 4000.25-1-M, MILSTRIP. 

 b. Scenario for which the transaction is used: Navy and Marine Corps customers often 

desire to obtain material from end-use residual inventories. Because it is re-utilization of material 

already owned by the end-use organization (i.e. procured with operating funds), there is no 

billing involved when the material is redistributed to another operating unit. In Navy’s legacy 

Real-Time Reutilization Asset Management system (RRAM), all the material in the system is in 

this residual end-use category, and a traditional 5K Fill-or-Kill Advice Code requisition can and 

will only issue non-billed material. When these inventories are converted to Navy ERP, they will 

reside on the same inventory management system as Navy Working Capital Fund (NWCF) 

material, for which the customer is charged. Use of the 2W Advice Code will allow Navy ERP’s 

sourcing tool to recognize such requirements and to restrict sourcing to the end-use (i.e. free 

issue) inventories. 

 c. Procedures, transactions, data elements, processing details in use today: 5K 

Advice Code requisitions are submitted to the Routing Identifier “RAM”, which is the Navy’s 

(RRAM) system. Because this is a self-contained system, any such requisitions not filled by 

RRAM are canceled with Status Code CB. 
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4. PROPOSED CHANGE(S): 

 a. Requested change in detail: Authorize Navy and Marine Corps use of Advice Code 

2W for requisitions using Routing Identifier “NRP” (Navy ERP) to identify internal customer 

(i.e. Navy/Marine Corps activities) requisitions which are only to be satisfied through Navyowned residual end-use assets managed under Navy ERP. DoD 4000.25-1-M currently contains 

the following definition for this advice code: 

“This requisition is submitted for free issue of assets above the AFAO1

 on a fill or kill 

basis. (Applicable to MAP/MASF requisitions only.)” 

The definition will be reworded to include the highlighted text: 

“This requisition is submitted for free issue of Navy General Fund material for Navy or 

Marine Corps authorized customers on a free fill or kill basis (partial fill allowed/no 

backorders).” 

 b. Procedures: Authorized Navy customers are to use Advice Code 2W on requisitions 

for those situations where only free issue material is desired. 

 c. Alternatives: MILSTRIP Alternative identified in the PDC. Use existing 

MILSTRIP constructs to achieve the desired business process without using an advice code. 

Introducing the requirement for an advice code results in disadvantages identified below. The 

rules for requisition processing would work something like this: 

(a) The Navy customer requesting free issue/fill or kill would use Signal Code D or 

M (free issue signal codes) when submitting requisitions to NRP for free issue materiel. Navy 

ERP would process requisitions coded for free issue on a free fill or kill basis. 

(b) If the Navy customer submits a requisition to NRP with other than signal code D 

or M, free issue (RRAM) screening would be applied for those activities authorized to receive 

free issue materiel. If materiel is available from RRAM, Supply Status BN would be provided.2

 

If free issue materiel is not available, the standard requisitioning processing for interfund billing 

would apply based upon Signal Code/transaction content. 

(c) DLA requisitioning Navy materiel for NSY under DLA BRAC agreement, would 

use standard signal code, RRAM would recognize NSY as authorized for free issue and would 

process as free issue if materiel is available, providing BN status. Otherwise NRP would fill for 

interfund billing based upon Signal Code/transaction content. 

(d) DLA requisitioning non-Navy materiel for NSY would code as free issue with 

Signal Code M. If not available as free issue, CM status would be provided. 

5. REASON FOR CHANGE: As a result of a 2005 BRAC decision, retail Supply, Storage, 

and Distribution (SS&D) functions and associated infrastructure supporting the Navy 

industrial/maintenance sites will transfer to DLA. The Navy sites consist of two Naval 

Shipyards (NSYs) and three Fleet Readiness Centers (FRCs), and two more NSYs were added 

 

1

 Approved Force Acquisition Objective 

2

 MILSTRIP BN status: “Requisition being processed as free issue. Signal and fund code fields corrected as noted. 

Adjust local fund obligation records.” 
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via the “Wynne Memo”. The intent of the directive is to significantly improve combat 

effectiveness while reducing costs by developing a world-class, cost-effective supply chain 

focused on readiness; taking every opportunity to eliminate waste, reduce touches, reduce cost, 

and improve readiness. 

The business process in place at NSYs prior to implementing BRAC changes allows shipyard 

material requirements to screen Navy End-Use material managed under Navy’s Real-time 

Reutilization Management System (RRAM). Reutilization of this material without having to 

purchase it from the wholesale Supply System saves Navy approximately $2M per year in 

operating funds. In legacy RRAM, NSYs are able to submit requisitions using Navy Advice 

Code 5K (Fill-or-Kill). And because RRAM is a stove-piped system, only “free-issue” residual 

inventories are screened for sourcing. If free-issue material is not available, the requisition is 

“killed” in RRAM, status sent back to the NSY via DAAS, and the NSY is able to pursue 

alternate sourcing options, including use of material already on-site but staged for other NSY 

planned workload. 

In May 2011, the RRAM inventories will be converted to the Navy ERP Release 1.1 Single 

Supply Solution. ERP will be unable to restrict sourcing to only the formerly RRAM “free issue” 

material via use of the 5K Advice Code – if no RRAM material is found, ERP will continue 

sourcing to Navy Working Capital Fund (NWCF) inventories managed within ERP, for which 

the NSY will be charged prior to being able to pursue alternate sourcing options. The “kill” 

function would only prevent ERP from referring the requirement to another wholesale item 

manager. 

If the NSY or other Navy customers were authorized to use the existing 2W Advice Code to 

identify a Free-Issue Only Fill-or-Kill requirement, Navy ERP could be configured to restrict 

sourcing to only those formerly RRAM inventories and prevent “selling” of NWCF material to 

the NSY. 

6. ADVANTAGES AND DISADVANTAGES: 

 a. Advantages (tangible/intangible): Retain Navy savings of ~$2M per year. 

 b. Disadvantages: 

 (1) Bypasses existing procedures to establish a new methodology for identification of a 

free issue requisition. 

 (2) Creates a situation where the requisition will be constructed with conflicting data (if 

reflecting other than Signal Code D or M while citing Advice Code 2W). 

 (3) Only one advice code may be included in a requisition. If the Advice Code 2W is 

required, other applicable advice codes will not be identified. 

7. ADDITIONAL COMMENTS TO CONSIDER: Using Navy Requisitioner data, 

NAVSUP and DLA Transaction Services (formerly DAASC) conducted a test on the DAAS 

testing platform to determine if there were any 2W Advice Code edits/validations which would 

require modification if this change were approved. The test indicated no such edit or validation 

was in place and no modification would be required for Navy to use the 2W Advice Code. 
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8. JUSTIFICATION FOR PROPOSED METHODOLOGY: Navy Response to 

MILSTRIP Alternative: PDC 3853 is specific to IMSP requirements driven by BRAC SS&D, 

however Navy Fleet customers were requesting the same "Free Issue Fill-or-Kill" capability as 

well. Those Fleet customers are not covered by the IMSP design and have the following 

characteristics which led the Navy to an Advice Code approach:

a. For most material requirements, RRAM free issue material is screened as a matter of 

course and the customer has no idea if they will receive material for free or be charged for it 

when the requirement is initiated. Therefore they obligate funds automatically at time of 

requisition creation, universally. Their IT systems integrate financial and logistic functionality, 

and don't offer an option to NOT obligate funds and assign Signal Code D or M (No billing 

required), however they do offer the option of assigning Advice Codes. For those relatively rare 

occasions when they ONLY want the material if it is available for free, they follow this same 

approach but modify the requisition to go directly to the RRAM RIC ("RAM") with Advice 

Code 5K. As the PDC describes, this approach will no longer be available under Navy ERP - the 

RIC-To recipient and Advice Codes can be adjusted by customers, but Signal Codes cannot. 

b. Since the inception of RRAM in 1995, the BN Status Code has been used to indicate 

material was being issued for free. RRAM does NOT adjust the Signal Code to D or M, but 

perpetuates whatever was on the incoming MILSTRIP A0_. It is at THIS point (i.e. not at 

requisition creation) that the requisitioner’s system receives indication not to expect billing and 

funds are de-obligated - driven by the BN, not by a Signal Code change. 

c. There are 7 different AISs used by the Fleet, in various phases of being sunset or 

newly implemented. One of the reasons there are so many different systems is because upgrades 

requiring hardware changes are multi-year funded, and the opportunity to get a ship in-port, and 

in an industrial availability to accomplish those upgrades can take a long time. In short, they 

can't all be funded to get the new systems in a short time span, and they can't all fit in the 

shipyard (if required) to get the upgrades at the same time. Those older systems being sunset are 

usually blacked out for IT changes, and those being newly implemented have a huge list of 

required changes and bug fixes extending out several years. To change Signal Code behavior in 

Navy's multiple afloat systems for this requirement would be impossible for some systems and 

be a long time coming for others. These systems all behave the same today with regard to the BN 

status code and subsequent funds de-obligation. 

d. Expanding on the point above, those 7 AISs are individual standalone instances, 

installed across over 300 ships and activities. IT changes must be individually installed at each 

site, often requiring tiger team visits. This means even approved, funded, coded, and tested 

changes cannot be implemented for all sites in a timely fashion. However, use of the 2W Advice 

Code for this requirement is a simple table change that can be accomplished locally at each site 

via simple transmittal, whereas any change to modify Signal Code behavior for this requirement 

would be part of some larger upgrade, which in some cases only come with hardware upgrades 

during a ship's industrial availability. 

e. The Navy ERP order fulfillment edits & validation logic already keys on advice code 

5K for making Fill-or-Kill sourcing decisions. So, basically, for the Free Issue Fill-or-Kill 

 

3

 PDC 385, Procedures and Assignment of Navy DODAACs to DLA for Use on DLA Requisitions to Military 

Service/GSA Sources of Supply (SoSs) in Support of Navy Industrial Activities (IAs) under BRAC SS&D/IMSP, 

dated April 15, 2010, includes processing rules for RRAM. 
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requirement the Navy can essentially "clone" the 5K logic and modify it to only source from a 

known universe of Free Issue sites in ERP by keying on another unique Advice Code. The 2W 

already exists and meets the definition of Free Issue Fill-or-Kill without reference to Signal 

Codes and only needs a documentation change. In contrast, the SAP Global Available To 

Promise (GATP) module used by Navy ERP keys on Signal Code only for Billing purposes 

under the current design. Modifying it to be a key for Sourcing logic as well as Billing logic 

would be a much more extensive, costly, and time-consuming change than going the Advice 

Code route. This Advice Code logic would work in ERP regardless of which Signal Code the 

customer uses, so IMSP would still work as designed. 

9. NOTE ANY REGULATIONS OR GUIDANCE: 

 a. DoD 4000.25-1-M. 

b. May require update to documentation for the Navy/DLA BRAC interface.4

 Under the 

originally proposed/approved procedures, the Signal Code is the determining factor for fill or kill 

free issue material within Navy ERP. 

10. ADDITIONAL FUNCTIONAL REQUIREMENTS: 

a. Supply Status BN. Under this proposal Advice Code 2W will be used with a signal 

code other than D or M. However, when returning Supply Status BN under MILSTRIP, the 

source of supply satisfying the requisition for free issue shall update the signal code/fund code 

appropriately. The MILSTRIP definition of BN status specifically requires updating the 

customer provided signal code and fund code entries: “Requisition being processed as free issue. 

Signal and fund code fields corrected as noted. Adjust local fund obligation records.” 

b. Partial Fill. The Navy provided the following information regarding partial issues for 

free issue fill-or-kill: RRAM does this today by issuing BN status with an "A" Suffix Code for 

the filled portion, and BQ status with a "B" suffix for the unfilled portion. Navy ERP behaves the 

same, but uses the CB Status Code for the unfilled portion. 

11. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: May 2011 

12. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: Approximately $2M per year. 

13. IMPACT: 

 a. New DLMS Data Elements: None

 b. Changes to DLMS Data Elements: Advice Code definition updated. 

c. Policy: Requires variation from existing MILSTRIP/DLMS procedures. 

 

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 ADC 368, Procedures and Assignment of Navy DODAACs to DLA for Use on DLA Requisitions to Military 

Service/GSA Sources of Supply (SoSs) in Support of Navy Industrial Activities (IAs) under BRAC SS&D/IMSP 

(Staffed as PDC 385) 
Enclosure, Comment Resolution 

 Submitter Comment Response. 

1. Army Army concurs with PDC 428 DLMS Advice Code 2W 

for Navy Free Issue. 

CASCOM, Enterprise Systems Directorate (ESD) 

reviewed PDC 428 with the following comment: 

1. We have no issue with the Navy’s use of 2W for free 

issue. However, we recommend this PDC not authorize 

Advice Code 2W for Army use as suggested in PDC 

428, paragraph 3, Staffing Note 2: “Army to provide 

business rules for use so above definition can be 

expanded to cover Army requirements.” 

2. Our supply and financial systems do not recognize 

2W advice code. 

3. CASCOM recognizes the need to accommodate issue 

of material without charge to a command's budget. 

According to CASCOM our supply and financial 

systems do not recognize 2W advice code. 

Review of USASAC's CISIL database revealed that the 

use of advise code 2W was nonexistent . We (Army) do 

not instruct anyone to use requisition Advise Code 2W 

to designate a free issue requisition. The user inputs 

Signal Code 'M' with Fund Code 'GE' to designate a free 

issue requisition. For the old Grant Aid free issue 

requisitions, the signal code was 'D' and the fund code 

was 'GD'. 

Noted. 

2.

Navy 

The Navy has no additional comments for this PDC that 

we submitted and we look forward to this being sent out 

soon as an approved DLMS change. 

Noted. 

3. Air Force The Air Force concurs with PDC 428 w/o comments. Noted. 

4. Marine Corps Subsequent to our submission of a CONCUR to PDC 

428 (Navy use of Advice Code 2W), we (HQMC) 

contacted OPNAV through our office of Naval Logistics 

Integration to determine if this PDC applied to Marine 

Corps units who wished to requisition residual inventory 

from Navy units. 

OPNAV confirmed revised 

wording to reflect that USMC 

units are authorized RRAM 

customers: 

“This requisition is submitted for 
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free issue of Navy General Fund 

material for Navy or Marine 

Corps authorized customers on a 

free fill or kill basis (partial fill 

allowed/no backorders)." 

5. DLA DLA concurs Noted. 

6. DSCA Concurs Noted.