DLMSO September 23, 1997

MEMORANDUM FOR: DISTRIBUTION

SUBJECT: Approved Defense Logistics Management System (DLMS) Change

4, Revised Procedures for Discrepant Packaging

(Supply/SDR)(Staffed as Proposed Change 16)

Approved Change 4 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, as modified under Approved DLMS Change

2, is provided as an attachment. This change supports DoD Stock

Readiness Program Guidance and becomes effective upon formal

publication.

Addressees may direct their questions to Ellen Hilert,

DSN 427-6117 or 703-767-6117, 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 MMA
1

Approved DLMS Change 4

Revised SDR Procedures for Discrepant Packaging

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 SDR Procedures for Discrepant Packaging.

b. Description of Change: This change revises SDR

procedures to support the DoD Care of Supplies in Storage (COSIS)

Program within the DoD Stock Readiness Program. Changes include

annotating the SDR to differentiate major item discrepancies from

secondary item discrepancies, to provide breakouts of repackaging

costs to clearly show both labor and materials costs, and to

modify distribution of SDRs for vendor shipments.

c. Procedures: Make the following changes identified in

bold italic type. Paragraph numbering and wording differ

slightly from the Approved DLMS Change 2, March 11, 1997. To

facilitate understanding the entire paragraph effected by the

revision is reproduced below.

Encl 2, Instructions for Preparation of Standard Form (SF) 364,

Page 4:

AItem 12 Remarks

General conditions. Use for any supplemental information when the combination

of discrepancy codes and action codes needs clarification; when discrepancies

need explanation; and when a breakdown of cost to report, in terms of labor

man-hours and materials, is required. Specific data such as appearance,

lot/batch number, manufacture/packaging date, inspector number and inspection

date, probable cause of improper packaging, and suggested corrective action

should be entered here. Provide

photos where it would assist in determining the cause/validity of 

the discrepancy/deficiency.

Packaging Discrepancies Noted at Defense Distribution Depots (DD).

 To ensure proper billing, indicate if the materiel is a major
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item, i.e., ships, aircrafts, missiles, ammunition, vehicles, etc.

 or secondary item, i.e., any item that supports a major item such

as reparables, consumables, assembles, etc. Annotate projected or

actual costs for labor and repackaging materials. If actual,

indicate the date corrective action was completed.

Information contact. Include name and communication numbers, e.g., DSN and

commercial telephone numbers, facsimile number, and e-mail address of the

person to be contacted for additional information if different from that

entered in item 14a. 

For Defense Distribution Depots that mail hard copies. Indicate the type of

receipt involved, e.g., a receipt from procurement, a customer return, or a

receipt for the retail supply account, etc.

Discrepancies in sealed vendor packs. Enter, if available, the 

 contract number and lot number from the item package and the

words "concealed discrepancy found upon opening sealed vendor

pack" or cite the appropriate discrepancy code from Enclosure

4.

Special conditions. For shortages or nonreceipt of GSA items

shipped via U.S. Postal Service--cite whether all packages shown

as shipped in item 5 of GSA or DD Form 1348-1A were received. For

medical material requiring refrigeration or frozen storage--cite

the information requested on the special instruction sheet which

is included with shipments of such material. For classified

material--cite whether indications of container tampering were or

were not evident; indicate whether a security deviation inquiry

may be necessary at the origin.

For Security Assistance SDRs. Cite the specific violation of

specification, regulation, packaging instruction or contract.@

Encl 3, Page 7 (reverse side of form):

AItem 23 Remarks. 

General conditions. Enter any clarification or information

necessary for a complete reply. Enter corrective action taken to

preclude future packaging discrepancies and/or record the SDR

(ROD) disposition/status code as listed in Enclosure 6. This

code and applicable narrative may be used rather than marking

equivalent boxes for items 19, 20, and 21.

Packaging Discrepancies Noted at Defense Distribution Depots (DD).

 The ICP will annotate the SDR to indicate that DD repackaging is

approved or not approved. If the ICP authorizes corrective

action, the SDR will also reflect the appropriate funding/

authorization document, e.g. job order number, Military

Interdepartmental Purchase Request (MIPR) number, or SF 1080,

Voucher for Transfer Between Appropriations and/or Funds, to which

the DD may charge the corrective action costs. After completing

corrective action, the DD will annotate the actual cost of the

work performed, note the date completed, and forward a copy to the

ICP for close-out.@

Encl 3, SDR (ROD) Distribution, Page 5:

AE. SDR DISTRIBUTION FOR PACKAGING DISCREPANCIES
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1. Contractor/Vendor Shipments

 (1) Initial action to (delete: packaging control point having

procurement responsibility) Administrative Contracting Office (ACO). When

released by the ACO, any required repackaging at Defense Distribution Depots

must be directed and reimbursed by the ICP.

 (2) Copy to applicable Contract Administration Office (CAO) (block

10 of DD Form 250, Material Inspection and Receiving Report). When GSA is CAO

send to GSA National Customer Service Center (NCSC).

 (3) Copy to applicable ICP/IMM. When GSA is IMM send to GSA NCSC

marked: IM Copy.

2. Personal Property Shipments. For packaging discrepancies in personal

property shipments, send original to Military Traffic Management Command and a

copy to the shipping installation transportation officer.

Military Traffic Management Command

ATTN: MTOP-T-CC

5611 Columbia Pike

Falls Church, VA 22041-5050

3. DoD-Directed Shipments. Follow additional Service/Agency specific

guidance in subsequent paragraphs.@

4. REASON FOR CHANGE: This change is necessary for proper

accounting against the Defense Working Capital Fund (formerly the

Defense Business Operating Fund) and Direct Appropriation Funds,

as well as to break out the reasons for the estimated charges to

correct discrepant packaging. Work performed on major items is

funded using direct appropriations while secondary items are

funded under the Defense Working Capital Fund. To properly

evaluate the validity of depot cost estimates, the Inventory

Control Points need the depots to breakout the estimated costs

for packaging materials and direct labor hours needed to correct

packaging discrepancies.

5. ADVANTAGES/DISADVANTAGES:

a. Advantages: This change will speed the time required to

process SDRs by clearly including information that the ICPs need

to properly evaluate the validity of proposed costs to correct

packaging discrepancies.

b. Disadvantages: None identified.

6. IMPACT:

 a. Requires modification of Service/Agency implementing

procedures.

b. Implementation:

(1) Implementation is effective upon formal publication.
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(2) The above changes are formatted in accordance with

the SDR joint publication. Equivalent changes will be

incorporated in the DLMS.