DEFENSE LOGISTICS AGENCY

 HEADQUARTERS

 8725 JOHN J. KINGMAN ROAD

 FORT BELVOIR, VIRGINIA 22060-6221

 

 September 28, 2016

MEMORANDUM FOR SUPPLY PROCESS REVIEW COMMITTEE (PRC) AND DOD 

JOINT PHYSICAL INVENTORY WORKING GROUP (JPIWG) MEMBERS

SUBJECT: Approved Defense Logistics Management Standards (DLMS) Change (ADC) 1222,

Revision of DOD Chief Financial Officer’s (CFO) Annual Statistical Sample 

Inventory Plan Requirements under Inventory Prioritization (Inventory)

The attached change to DLM 4000.25, Defense Logistics Management Standards, and

DLM 4000.25-2, Military Standard Transaction Reporting and Accountability Procedures 

(MILSTRAP), is approved for immediate implementation.

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

Rafael.Gonzalez@dla.mil; or Ms. Mary Jane Johnson, email: Mary.Jane.Johnson@dla.mil. 

Others may direct questions to their Service or Agency designated Supply PRC or JPIWG 

representative available at https://www.dlmso.dla.mil/CertAccess/SvcPointsPOC/allpoc.asp.

HEIDI M. DAVEREDE 

Director

Defense Logistics Management 

Standards Office

Attachment

As stated 

cc: 

ODASD (SCI) 
Attchment, ADC 1222

Page 1

Attachment to ADC 1222

Revision of Chief Financial Officer’s DOD (CFO) Annual Statistical 

Sample Inventory Plan Requirements under Inventory 

Prioritization

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION:

a. Office: Defense Logistics Management Standards Office (DLMSO)

b. Functional POC: Mr. Rafael Gonzalez, DLMSO, email: Rafael.Gonzalez@dla.mil,

(717) 770-6817; DSN 771-6817

2. FUNCTIONAL AREA:

a. Primary/Secondary Functional Area: Inventory

b. Primary/Secondary Functional Process: Inventory Prioritization

3. REFERENCES:

a. Defense Logistics Manual (DLM) 4000.25-2, Military Standard Transaction 

Reporting and Accountability Procedures (MILSTRAP) 

b. DLM 4000.25, Defense Logistics Management Standards, Volume 2, Supply 

Standards and Procedures

c. JPIWG 16-01 Meeting Minutes, February 25, 2016

4. APPROVED CHANGE(S):

a. Brief Overview of Change: Revise MILSTRAP (Reference 3.a.) and DLMS 

Volume 2 (Reference 3.b.) annual requirement for the DOD Chief Financial Officer (CFO)

Annual Statistical Sample Inventory Plan provision to the Joint Physical Inventory Working 

Group (JPIWG).. This change also documents the current responsibility of DLA to distribute the 

DOD CFO Annual Statistical Sample Inventory Plan.

b. Background:

(1) Current procedures for inventory prioritization require the DOD CFO Annual 

Statistical Sample Inventory Plan be provided to the JPIWG chair for posting to the JPIWG 

webpage. Although this requirement was published years ago as part of physical inventory 

control procedures, it was never implemented and no DOD CFO Annual Statistical Sample 

Inventory Plan was stored or published in the JPIWG webpage.

(2) The Defense Logistics Agency (DLA) distributes the DOD CFO Annual 

Statistical Sample Inventory Plan once a year to all Services. Therefore posting this information 
Attchment, ADC 1222

Page 2

to the DLMS website is unnecessary. During the February 25, 2016 JPIWG Meeting (Reference 

3.c.), working group members discussed and agreed posting of the DOD CFO Annual Statistical 

Sample Inventory Plan to the JPIWG webpage is not required. As a result, the JPIWG Chair 

developed this approved change to remove the reporting requirement from DLM 4000.25-2, 

MILSTRAP and DLM 4000.25, DLMS, Volume 2.

c. Approved Change in Detail:

(1) Revise current procedures under inventory prioritization to remove the 

requirement for the CFO Annual Statistical Sample Inventory Plan to be posted on the JPIWG 

webpage.

(2) Revise procedures under inventory prioritization to document DLA 

distributes the DOD CFO Annual Statistical Sample Inventory Plan once a year to each 

applicable centralized Service point of contact. This change documents DLA’s responsibility for 

the distribution of the DOD CFO Annual Statistical Sample Inventory Plan results to all 

Services. 

d. Revisions to DLM 4000.25 Manuals:

(1) Revise DLM 4000.25-2, MILSTRAP, Chapter 7 (Reference C7.2.10.1.2.), 

CFO Statistical Sample Inventory as shown in the enclosure.

(2) Revise DLM 4000.25, DLMS Volume 2, Chapter 6 (Reference C6.2.10.1.2.), 

CFO Statistical Sample Inventory as shown in the enclosure.

5. REASON FOR CHANGE: During the JPIWG meeting on February 25, 2016, members

determined posting of the DOD CFO Annual Statistical Sample Inventory Plan to the JPIWG 

webpage is no longer required. 

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: Documents the existing process in the DLMS and legacy MILSTRAP

manuals. 

b. Disadvantages: There are no known disadvantages. 

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

of the approved DLMS change (ADC). 

8. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: None. This change documents current practice. 
Attchment, ADC 1222

Page 3

9. IMPACT:

a. DLMS Data Elements: There are no new DLMS data elements and no changes to 

existing DLMS data elements.

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

c. Transaction Services: There are no changes to current transaction flows and 

mappings through Defense Automatic Addressing System (DAAS).

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

guidance to comply with procedures delineated in this DLMS change.
Enclosure, ADC 1222

Page 1

ENCLOSURE to ADC 1222

A. Revise DLM 4000.25-2, MILSTRAP, Chapter 7 as shown (changes are identified by 

bold, red italics or double strikethrough)

[Preceding text not shown]

C7.2.10.1.2.2. Annual DoD CFO Annual Statistical Sample Inventory Plan 

Guidelines.

C7.2.10.1.2.2.1. The items in storage will be stratified into dollar value 

categories to minimize the number of items requiring inventory while yielding results with the 

confidence level and precision required below. The dollar value stratifications used for sample 

will be included in the CFO Inventory Value Sample Plan for that year. 

C7.2.10.1.2.2.2. Every item stored, regardless of owner/manager, within 

the extended dollar value strata identified in the Annual DoD CFO Annual Statistical Sample 

Inventory Plan for that year will have an equal probability of being selected in the sample and 

inventoried. 

C7.2.10.1.2.2.3. The sample results will have a 95 percent confidence 

level and a level of precision within + (plus) or – (minus) 2.5 percent.

C7.2.10.1.2.2.4. DoD CFO Annual Statistical Sample Inventory Plan. 

Each year’s DOD CFO Annual Statistical Sample Plan will be provided to the Joint Physical 

Inventory Working Group (JPIWG) Chair for posting to the JPIWG Web Page at: 

http://www.dlmso.dla.mil/Programs/Committees/JPIWG/JPIWG.asp. DLA will distribute the 

results of the DoD CFO Annual Statistical Sample Inventory Plan to each applicable 

centralized Service point of contact. 
Enclosure, ADC 1222

Page 2

B. Revise DLM 4000.25, DLMS, Volume 2, Chapter 6 as shown (changes are identified by 

bold, red italics or double strikethrough)

[Preceding text not shown]

C6.2.10.1.2.2. Annual DoD CFO Annual Statistical Sample Inventory 

Plan Guidelines.

C6.2.10.1.2.2.1. The items in storage will be stratified into dollar 

value categories to minimize the number of items requiring inventory while yielding results with 

the confidence level and precision required below. The dollar value stratifications used for 

sample will be included in the CFO Inventory Value Sample Plan for that year. 

C6.2.10.1.2.2.2. Every item stored, regardless of owner/manager, 

within the extended dollar value strata identified in the Annual DoD CFO Annual Statistical

Sample Inventory Plan for that year will have an equal probability of being selected in the 

sample and inventoried. 

C6.2.10.1.2.2.3. The sample results will have a 95 percent 

confidence level and a level of precision within + (plus) or – (minus) 2.5 percent.

C6.2.10.1.2.2.4. DoD CFO Statistical Sample Inventory Plan. Each 

year’s DOD CFO Annual Statistical Sample Plan will be provided to the Joint Physical Inventory 

Working Group (JPIWG) Chair for posting to the JPIWG Web Page at: 

http://www.dlmso.dla.mil/Programs/Committees/JPIWG/JPIWG.asp. DLA will distribute the 

results of the DoD CFO Annual Statistical Sample Inventory Plan to each applicable 

centralized Service point of contact.