DLMSO May 13, 1998

MEMORANDUM FOR: DISTRIBUTION

SUBJECT: Approved Defense Logistics Management System (DLMS)

Change 7, Revised Threshold for Submission of Packaging

Discrepancies (Supply/SDR) (Staffed as Proposed Change

18)

Approved Change 7 to Supply Discrepancy Reporting (SDR)

procedures (formerly Report of Discrepancy (ROD)) published in

DoD 4000.25-M, DLMS, Volume 2, Chapter 18, and DLAR 4140.55/AR

735-11-2/SECNAVINST 4355.18/AFR 400-54, Reporting of Item and

Packaging Discrepancies, is provided as an attachment. This

change becomes effective June 1, 1998.

When staffed, this change included a proposal to raise the

exception reporting dollar value for packaging discrepancies

occurring in high dollar value items, shipments, or packages from

$2,500 to $5,000. An intermediate dollar value of $4,000 was found

to be acceptable to the Defense Logistics Agency (DLA), Air Force,

and Marine Corps, and Navy. The Army did not concur with raising the

limit at this time. However, the Army agreed to reconsider raising

the limit when information becomes available to measure the impact of

such a change. 

Addressees may direct their questions to Ellen Hilert, DSN 235-

5271 or 703-275-5271, e-mail: ellen_hilert@hq.dla.mil. Others may

direct questions/comments to their Service/Agency designated

representative.

/s/

JAMES A. JOHNSON

Director

Defense Logistics Management

Standards Office

Attachment

DISTRIBUTION:

SDR Focal Points (Primary/Alternate)

cc:

DLMS Supply PRC

DUSD(L/MDM)

JLSC 
Approved DLMS Change 7

Revised Threshold for Submission of Packaging

Discrepancies

1. ORIGINATOR:

a. Service/Agency: DLMSO/DLA

b. Originator: Ellen Hilert, SDR System Administrator,

DLMSO, 703-767-6117, DSN 427-6117, or e-mail:

ellen_hilert@hq.dla.mil.

2. FUNCTIONAL AREA: Supply (SDR Procedures)

3. REQUESTED CHANGE:

a. Title: Revised Threshold for Submission of Packaging

Discrepancies.

b. Description of Change: This change revises SDR

procedures to revise the value threshold of packaging

discrepancies above which receivers will prepare and report such

discrepancies. This change supports the DoD Stock Readiness

(SR) Program, including Care of Supplies in Storage (COSIS). 

(Note: This change does not impact optional submission of SDRs

to the DLA and the General Services Administration (GSA)

regardless of dollar value.)

c. Procedures: Make the following change to DLAR 4140.55

(et al), page 7 identified in bold italic type.

2. Packaging Discrepancies. See enclosure 4

for listing of typical types.

a. Any unsatisfactory condition resulting

from improper packaging which causes or

renders the item, shipment, or package to be

vulnerable to any loss, delay, or damage when

the estimated or actual cost of correction

exceeds $50 $100. (EXCEPTION: When the

value of the item, shipment, or package is

$2500 or over, an SF 364 will be submitted

regardless of the estimated or actual cost to

correct the packaging discrepancy.)

4. REASON FOR CHANGE: This change is necessary for
maintaining the bottom dollar value threshold for preparing

packaging SDRs consistently in line with the varying costs of

burdened labor against the Defense Working Capital Fund (formerly

the Defense Business Operating Fund) and Direct Appropriation

Funds. The $50 bottom threshold value has been in place for over

15 years without change, and, as set up as a fixed dollar figure,

has outlived its usefulness and credibility. Few packaging

discrepancies can now be performed for a cost of less than $50

dollars, forcing receiving activities to prepare more reports.

5. ADVANTAGES/DISADVANTAGES:

a. Advantages: This change will keep procedures consistent

with the cost of doing business. According to published numbers,

$50 in FY80 equals $88.23 in FY97. Using a 1.0224% inflation

figure, the $88.23 becomes $101.73 in FY03.

b. Disadvantages: None identified.

6. IMPACT:

a. Requires modification of Service/Agency implementing

procedures.

b. Implementation:

(1) Effective June 1, 1998.

(2) The above change is formatted in accordance with

the SDR joint publication. Equivalent changes will be

incorporated in the DLMS.