(6) WebSDR will need to provide a distribution copy to NSDRS of all Navy SDRs
initiated in PDREP or copied to PDREP.

(7) Navy shipyard sites are to be recognized as associated with PDREP:

e PHNSY & IMF Pearl Harbor 32253 (NBN/NHA)
e PNSY Portsmouth NH N39040 (NPN)
e NNSY Norfolk N42158 (NHX/NNY)
e PSNS & IMF Puget Sound N4523A (PCL)

(8) Navy Fleet Readiness Center sites are to be recognized as associated with PDREP:

e@ FRC EAST Cherry Point N65923 (NHQ/Q6C)
e FRCSE, Jacksonville N65886 (NHR/Q6J)
© FRC SW San Diego N65888 (Q6S)

(9) N__DLA series DODAACs assigned for DLA use are listed below. All will be
associated with RIC SMS.

e FRC EAST Cherry Point NOIDLA
e FRC SOUTHEAST Jacksonville | NO2DLA
e FRC SOUTHWEST San Diego = NO3DLA
e NNSY Norfolk NO4DLA
e PSNS&IMF Puget Sound NOSDLA
e PHNSY&IMF Pearl Harbor NO6DLA
e ~PNSY Portsmouth NO7DLA

e Publications: Procedures must be documented for DoD 4000.25-M, Volume 2, DLMS.
Manual, Chapter 17, Supply Discrepancy Reporting, will be provided upon approval of requested
change.

ADC 371 Attachment Page 13


instructions into MAT/MRP II. If the action activity (other than a depot) indicates that a credit will be
provided, the DSS will create MILSTRAP inventory adjustment transactions to transfer material
ownership of discrepant materiel from Navy to DLA.

(2) Distribution Depot Discovered SDRs for Requisitioned Materiel:

(a) Discrepant DD receipts of requisitioned materiel will trigger creation of customer
SDRs to the SoS/manager or shipping activity by agreement with DLA. Initially this process will apply
to receipts to Navy JA customers, Marine Corp Maintenance Centers (MCMCs) (applicable receipt
document identifier codes include D6T, D6U, or D6V). Rather than generating depot receipt SDRs
(Type 8), the depot will prepare customer SDRs (Type 6 and 7). Customer SDRs will be directed to the
shipping depot or SoS/manager if direct vendor delivery (DVD). Staffing Note: DoD WebSDR does
not currently distribute SDRs directly to vendors for action (e.g. for local purchases). Under current
DoD procedures, SDRs for vendor shipped materiel is reported to the item manager/procuring activity
for action. Functionally to support direct vendor distribution may be pursued separately if required.

(b) Under the above scenario, the depot will ask for credit for wrong item receipts and
shortages. For overages over $100 in Service-owned materiel, the depot will contact the owner to
determine if the Service wants to retain the overage before sending the SDR. For overages in DLA
owned materiel, the depot will ask the action activity for disposition instructions. For damaged materiel
or other condition discrepancies, the depot will ask for credit and disposition instructions. The depot will
use Action Code 3B (no reply required/SDR used for trend analysis and metrics) for most other
discrepancies. The following SDR content rules apply:

1 Manager. The SDR will identify the manager (vice owner as is done on Type
8) which WebSDR will use to generate an info copy (WebSDR will apply this rule to DLA, Navy,
Marine Corps, and Air Force. If Army is the manager, the SDR will be directed to the Army, or
forwarded to the Army manager by the shipping depot.)

2 Party to Receive Copy.

a For type 6 and 7 SDRs prepared by DSS, the RIC of the materiel owner
will be identified as a party to receive a copy (if different from the action activity).

b Discrepant Shipments of DLA-owned Materiel Supporting Navy IA
Requirements. DSS will include the Navy IA to receive an information copy when there is PMR for
DLA-owned materiel received in the DSS IA worksite. DSS will identify the party to receive copy by
the Routing Identifier Code (RIC). The Navy will designate a single shipyard RIC for information
copies. Additionally, the Navy has agreed to provide a single FRC RIC per site which relates to their
discrepant storeroom for SDR information copy routing to PDREP. Staffing Note: It was originally
recommended that the scope of this requirement be restricted to SDRs that may have an impact on future
Navy order fulfillment, which would not be true for all SDRs prepared by the IA site (such as those for
packaging discrepancies or citing Action Codes 1H and 3B which are provided to the owner for
information only and trend analysis). Restricting the applicability would preclude a high volume of non-
significant SDRs being copied to the Navy since this materiel is DLA owned. DLA responded that no
rules will be established to screen out selected SDRs from the copy to Navy process. This may be re-
evaluated at a future date.

ADC 371 Attachment Page 4


Revision

(9) DLMS Stock Screening transactions:
DS 842C/I Stock Screening Request and 842C/R Stock Screening Reply Revision
Location Revision Reason for Change
1. | DLMS Add PDC 366A to DLMS Introductory page to both SDR __| Identifies DLMS Changes
Introductory | Report and SDR Reply: included in the DLMS
Notes Supplement
- ADC 371, Marine Corps SDR Distribution Rules and Navy
and Marine Corps SDR and SQCR Procedures and Data
Content under BRAC
2. | IBNRO1/0200 Remove ZZ qualifier and associated DLMS note: Staffing Note: This corrects
ADC 381 which inadvertently
ZEMutually Defined identified the Unit of Use
DLMS-Note:_i Use to-identify-the Unit of Use Indicator Wh Indicator in BNROI — see
ineluded-the-quantity-and- eof y i Lith
Aile-tranceetlon-ave-applieabletothe-unitofuse. BERG aeISW
2, Authorized DEMS -enthaneementinder- DEA industrialactivity
supportag tRefi 1DC381,
3. | 1/BNR02/0200 | Revise DLMS note: Industrial Activity Support.
Reference Identification
DLMS Note:
1, Enter "U" to identify the Unit of Use Indicator. When included,
the quantity and unit of measure values associated with this
transaction are applicable to the unit of use. This applies when the
materiel identification is by Local Stock Number assigned for unit of
use. This is an Authorized DLMS enhancement under DLA
industrial activity support agreement. Refer to ADC 371.
2. When not used for Unit of Use Indicator, must enter Z to satisfy
ANSI syntax.
4, | 2/REFO1/0700 Remove Qualifier CO: COAR determined to be
unnecessary in this transaction.
€O-Customer Order Number
Record {COAR) applicableto-the-Fob-Order- Number:
2-Auth LDEMS-enh tunder DLA -industrialactivity
e-tH t--Refarto-ADC38 Lf Hieable).
ipporeng: Ref f PP i
(10) DLMS Stock Screening transactions:
Item Location DS 842C/I Stock Screening Request Reason
l# and 842C/R Stock Screening Reply

ADC 371 Attachment Page 9



(7) DLMS SDR transaction.
DS 842A/W Data Content
Location Revision Reason for Change
DLMS Add PDC 366A to DLMS Introductory page to both SDR Report Identifies DLMS Changes
Introductory and SDR Reply: included in the DLMS
Notes Supplement

- ADC 371, Marine Corps SDR Distribution Rules and Navy and
Marine Corps SDR and Storage Quality Control Report (SQCR)
Procedures and Data Content under BRAC

1BNRO1/0200

Remove qualifier ZZ and associated DLMS note:

Staffing Note: This corrects
ADC 381 which

ZL-Mutually Defined ; inadvertently identified the
DLMS-Note:—/_U: ide if: the-Unitet-UsetIndieat Wb ineluded- . + .
Seen einen, ‘Lge seteanioll . “" | Unit of Use Indicator in
okies tia . BNRO1I — see BNRO2 below.
9 t_RefartoADC38i

1/BNR02/0200 | Revise DLMS note: Industrial Activity Support.
Reference Identification
DLMS Note:
1, Enter "U" to identify the Unit of Use Indicator. When
included, the quantity and unit of measure values associated with
this transaction are applicable to the unit of use. This applies
when the materiel identification is by Local Stock Number
assigned for unit of use. This is an Authorized DLMS
enhancement under DLA industrial activity support agreement.
Refer to ADC 371.
2. When not used for Unit of Use Indicator, must enter Z to satisfy
ANSI syntax.

2/REF01/0700 | Add data elements and DLMS notes: Industrial Activity Support.
9R Job Order Number Staffing Note: Customer
DLMS Note: 1. Use to identify Job Order (JO) Number. Order Acceptance Record
2, Authorized DLMS enhancement for industrial activity support. | (COAR) determined to be
Refer to ADC 371. unnecessary in this

transaction.

86 Operation Number
DLMS Note: J. Use to identify the Key Operation (KO) Number
associated with the JO.
2. Authorized DLMS enhancement for industrial activity support.
Refer to ADC 371.

2/REF01/700 Revise DLMS note as follows: Clarification.

F8 Original Reference Number

DLMS note:

1. Use to identify the SDR Customer Reference Number when
provided separately. Component SDR applications maintain this
number and perpetuate to outgoing transactions.

Additionally, provides
capability for the Navy IA
which will receive a copy of
the SDR to know that a
discrepancy has occurred in

ADC 371 Attachment Page 6



3 Discrepancy Codes. DLMS formats allow up to three discrepancy codes in
customer SDRs and up to two discrepancy codes in SQCRs. DSS will be enhanced to accommodate at
least two discrepancy codes per transaction.

4 SDR Submitter DoDAAC. The SDR submitter will be identified as the depot
DoDAAC (allowing replies to be returned to the depot ADRS application).

5 SDR Customer DoDAAC, The customer/requisitioning DoDAAC will be
identified separately in the SDR transaction (2/N101/2800 Qualifier LW) for Navy or Marine Corps
owned materiel.

(3) Distribution Copies. WebSDR will ensure that SDR transactions are forwarded to all
applicable distribution parties. All follow-on transactions and SDR replies will be also be copied to
applicable distribution copy recipients by DoD WebSDR. Note: Copies of the initial report are
identified by the beginning segment code as an Information Copy (Code 22). Distribution copies of
follow-on transactions/replies will reflect the beginning segment code for the type of transaction as
applicable.

(4) DoD WebSDR Generation of NSDRS Information Copies. In order to assure visibility of
all SDRs for Navy activities, a new DoD WebSDR routing rule will be established to provide an
information copy to NSDRS for all Navy SDRs where the action copy is directed to PDREP (all NSY
and FRC sites listed below plus any activity identify by DoDAAC/RIC with Navy/Service Agency Code
other than the DLA N__DLA series).

(5) Navy Document Number Suffix, JO/IKO.

(a) SDRs prepared by DSS ADRS for DLA-owned materiel purchased to support a
Navy industrial activity (IA) requirement, the SDR transaction will perpetuate the additional Navy
document number from the PMRD when available. This document number will be the Navy requisition
alert document number provided for stock positioning/procurement action to ensure that materiel will be
available for immediate issue when subsequently requisitioned by the Navy Shipyard (NSY). If materiel
is requisitioned by DLA from another source of supply (using the N_ DLA DoDAAC document
number), this may be a funded or unfunded document number. The Navy document number will be
passed to DSS in the DLMS 527D identified by Qualifier PWC.

(b) SDRs prepared by ADRS will perpetuate the JO/KO from the PMRD when these
fields are available regardless of materiel owner.

(c) The JO/KO may be entered manually on SDRs prepared subsequent to receipt upon
discovery by the artisan.

(d) DoD WebSDR will include the JO on the internal SDR metrics table allowing for
query by JO, and will display of the JO/KO on management reports for transaction detail.

(6) New Discrepancy Code for use in SDRs and SQCRs (DLMS Qualifier, HA Discrepancy
Code):

ZS, Discrepancy under DLA industrial activity support agreement recorded and corrective
action taken,

ADC 371 Attachment Page 5


DS 842A/R Data Content

Location Revision Reason for Change

an Authorized DLMS enhancement under DLA industrial activity
support agreement. Refer to ADC 371.
2. When not used for Unit of Use Indicator, must enter Z to satisfy ANSI
syntax.

9. | 2/REFO1/0700 | Add data elements and DLMS notes: Industrial Activity Support.
9R Job Order Number Staffing Note: COAR
DLMS Note: 1. Use to identify Job Order (JO) Number. determined to be
2, Authorized DLMS enhancement for industrial activity support. | unnecessary in this
Refer to ADC 371. transaction.
86 Operation Number
DLMS Note: J. Use to identify the Key Operation (KO) Number
associated with the JO.
2. Authorized DLMS enhancement for industrial activity support.
Refer to ADC 371.

10.| 2/REFO1/700 | Revise DLMS note as follows: Clarification.

F8 Original Reference Number

DLMS note:

1, Use to identify the SDR Customer Reference Number when
provided separately. Component SDR applications maintain
this number and perpetuate to outgoing transactions.

2. May be used when a manually assigned reference number
is to be retained as a cross-reference to a system assigned
number.

3. Used for FMS SDRs to ensure visibility of the ILCO
assigned control number within Component SDR
applications.

4. Use to identify the Air Force maintenance document
number/suffix associated with an SDR resulting from depot
denial under DLA/AF BRAC-Supply; Storage-andDistribution
€SS&D) industrial activity support agreement. The number is
constructed with the M-series maintenance site identifier in the
first six positions of the document number. Refer to ADC 334.
5. Use to identify the Navy maintenance document
number/suffix associated with an SDR resulting from DLA
stock positioning/procurement action/requisitioning from
another Component source of supply. The Navy document
number/suffix (normally applicable to the requisition alert)
will be perpetuated from the Prepositioned Materiel Receipt
Document (PMRD) provided by DLA under DLA/Navy
industrial activity support agreement. Refer to ADC 371.

6. For F8: WebSDR maximum field length = 18.

Additionally, provides
capability for the Navy IA
which will receive a copy
of the SDR to know that a
discrepancy has occurred
in a shipment supporting a
Navy requirement.

ADC 371 Attachment Page 8



DEFENSE LOGISTICS AGENCY
HEADQUARTERS.
8725 JOHN J. KINGMAN ROAD
FORT BELVOIR, VIRGINIA 22060-6221

IN REPLY
REFER TO

DLMSO August 3, 2010

MEMORANDUM FOR SUPPLY PROCESS REVIEW COMMITTEE MEMBERS

SUBJECT: Approved Defense Logistics Management System (DLMS) Change (ADC) 371, Marine
Corps Supply Discrepancy Report (SDR) Distribution Rules and Navy and Marine Corps
SDR and Storage Quality Control Report (SQCR) Procedures and Data Content under
BRAC (Supply/SDR/SQCR) (Staffed as PDC 387A)

The attached change to DOD 4000.25-M, DLMS, is approved for implementation. Marine
Corps-wide DoD WebSDR routing rules must be available for implementation September 2010.
Marine Corps BRAC changes must be available October 2010. Navy BRAC changes must be
available December 2010. The updated DLMS Supplement will be posted to the Defense Logistics
Management Standards Office (DLMSO) Web site http://www.dla.mil/j-
6/dimso/elibrary/TransFormats/formats.asp within 10 days from the above date for implementation
planning. This change is required in support of Base Realignment and Closure (BRAC) Supply,
Storage and Distribution (SS&D) Inventory Management and Stock Positioning (IMSP).

Addressees may direct questions to the DLMSO point of contact Ms. Ellen Hilert, email:
Ellen.Hilert@dla.mil. Others must contact their Component designated Supply Process Review
Committee representative.

DONALD C. PI
Director
Defense Logistics Management
Standards Office
Attachment
ce:

SDR Committees (U.S.)
ADUSD(L&MR)SCI


DS 842S/Q Storage Quality Control Report (SQCR) and 842S/R SQCR Reply Revision

Location Revision Reason for Change
1BNRO1/0200 Remove ZZ qualifier and associated DLMS note: Staffing Note: This corrects
ADC 381 which inadvertently
ZE Mutually Defined identified the Unit of Use
included the quantivandunitofmensireralueassocaed th Indicator in BNRO1.
i s
this-t plicable-to-th itofuse
2-Authorized- DEMS-enhaneement-under DLA-industrial activity
support-agreementRefer-to ADC 381.
1/BNR02/0200 | Revise DLMS note: Industrial Activity Support.
Reference Identification
DLMS Note:
1. Enter "U" to identify the Unit of Use Indicator. When included,
the quantity and unit of measure values associated with this
transaction are applicable to the unit of use. This applies when the
materiel identification is by Local Stock Number assigned for unit of
use. This is an Authorized DLMS enhancement under DLA
industrial activity support agreement. Refer to ADC 371.
2. When not used for Unit of Use Indicator, must enter Z to satisfy
ANSI syntax.
2/REF01/0700 | Remove Qualifier CO: COAR determined to be
unnecessary in this transaction.
€O-Customer-Order Number
Aeeeptanee-Reeord-{COAR)-applieable-to-the-Job-Order
Number,
2-Auth ized-DEMS- vf ft Jer-DLA-industrial
applicable).
2/LQ01/1050 HA Discrepancy Code Increases available discrepancy
DLMS Note: codes in the SQCR so that new

~ Use up to two
repetitions of discrepancy code. Refer to ADC 371.

code Z5 may be used in addition
to the applicable discrepancy
code.

5. Alternatives: Do not document discrepancies identified by the IA that are resolved by the depot.

6. REASON FOR CHANGE: DLA has assumed IA support under BRAC and has extended this to
include discrepancy reporting. The above SDR-related changes make this process more efficient for
both the customer and DLA.

7, ADVANTAGES AND DISADVANTAGES:

a. Advantages:

(1) Eliminates the need for two SDRS when the depot receives requisitioned materiel, verifying
kind, count, and condition and identifying supply discrepancies. Not only is the single SDR more
efficient, but it speeds up response time by going directly to requisitioner’s SoS.

ADC 371 Attachment Page 11



Item Location DS 842C/I Stock Screening Request Reason
# and 842C/R Stock Screening Reply
Revision
1. DLMS Add ADC 381 to DLMS Introductory page to both Stock Screening Identifies DLMS Changes
Introductory Request and Stock Screening Reply: included in the DLMS
Notes Supplement
- ADC 381, Procedures and Additional Data Content supporting
Requisitions, Requisition Alerts, and Unit of Use Requirements
under Navy BRAC SS&D/AIMSP.
2. IBNRO1/0200 Remove ZZ qualifier and associated DLMS note: Staffing Note: This corrects
ADC 381 which
ZE Mutually Defined inadvertently identified the
DLMS-Note:_} Use-te-identify- the Unit of Use Indicator Wh " 5 ‘
‘ded the aay 7 cal tad atth ahi Unit of Use Indicator in
ivancactionare: — BNROI — see BNRO2 below.
2. ized DLMS -DLAG es —
_| supportagreementReferto ADC 38+
3. 1/BNRO02/0200 | Revise DLMS note: Industrial Activity Support.
| Reference Identification
| DLMS Note:
| 1, Enter "U" to identify the Unit of Use Indicator. When included,
| the quantity and unit of measure values associated with this
transaction are applicable to the unit of use. This applies when the
| materiel identification is by Local Stock Number assigned for unit
| of use. This is an Authorized DLMS enhancement under DLA
| industrial activity support agreement. Refer to ADC 371.
2. When not used for Unit of Use Indicator, must enter Z to satisfy
| ANSI syntax.
4. 2/REFO1/0700 Remove qualifier CO and associated DLMS note: Staffing Note: COAR

€O-Customer-Order Number

determined to be
unnecessary in this
transaction.

(11) DLMS SQCR transactions:

DS 842S/Q Storage Quality Control Report (SQCR) and 842S/R SQCR Reply Revision

- ADC 371, Marine Corps SDR Distribution Rules and Navy
and Marine Corps SDR and SQCR Procedures and Data
Content under BRAC

Location Revision Reason for Change
1, | DLMS Add ADC 371 to DLMS Introductory page to both SDR Report | Identifies DLMS Changes
Introductory and SDR Reply: included in the DLMS
Notes Supplement

ADC 371 Attachment Page 10



DS 842A/W Data Content

Location

Revision

Reason for Change

2, May be used when a manually assigned reference number is to
be retained as a cross-reference to a system assigned number,
3. Used for FMS SDRs to ensure visibility of the ILCO assigned
control number within Component SDR applications.
4, Use to identify the Air Force maintenance document
number/suffix associated with an SDR resulting from depot denial
under DLA/AF BRAG-Supply;Storage-andDistribution-(SS&D)
industrial activity support agreement. The number is constructed
with the M-series maintenance site identifier in the first six positions
of the document number. Refer to ADC 334.
5. Use to identify the Navy maintenance document number/suffix
associated with an SDR resulting from DLA stock
positioning/procurement action/requisitioning from another
Component source of supply. The Navy document number/suffix
(normally applicable to the requisition alert) will be perpetuated
from the Prepositioned Materiel Receipt Document (PMRD)
provided by DLA under DLA/Navy industrial activity support
agreement. Refer to ADC 371.

6. For F8: WebSDR maximum field length = 18.

a shipment supporting a
Navy requirement.

(8) DLMS SDR Reply transaction:
DS 842A/R Data Content
Location Revision Reason for Change
DLMS Add_ADC 371 to DLMS Introductory page to both SDR Report and _| Identifies DLMS Changes
Introductory SDR Reply: included in the DLMS
Notes Supplement
- ADC 371, Marine Corps SDR Distribution Rules and Navy and
Marine Corps SDR and Storage Quality Control Report (SQCR)
Procedures and Data Content under BRAC
1BNRO1/0200 Remove qualifier ZZ and associated DLMS note: Staffing Note: This corrects
ADC 381 which
ZEMutually Defined inadvertently identified the
Unit of Use Indicator in
BNRO1 — see BNRO2 below.
2 Authorized DLMS-enh _ dex DLA-ind: Leet ippor
1/BNR02/0200 | Revise DLMS note: Industrial Activity Support.

Reference Identification

DLMS Note:

1. Enter "U" to identify the Unit of Use Indicator. When included,
the quantity and unit of measure values associated with this transaction
are applicable to the unit of use. This applies when the materiel
identification is by Local Stock Number assigned for unit of use. This is

ADC 371 Attachment Page 7



DLA worksite personnel will verify the discrepancy under current procedures and check the warehouse
for issuable replacement stock. During this process the personnel may also identify additional
discrepant materials.

(b) _ If the additional/replacement stock is available within the worksite (or partner site)
in appropriate condition, the discrepancy will be resolved immediately by replacing the discrepant item.
It the only available materiel protected for another requirement, specific permission to issue a
replacement will be required. An SDR will be prepared by the IA Worksite to identify the parties
involved and the discrepancy. Because the discrepancy is resolved and no further action is needed, the
SDR will cite SDR Action Code 3B, Discrepancy reported for corrective action and trend analysis. No
reply required. This SDR will include new Discrepancy Code Z5, indicating that the SDR has been
resolved by the DD.

(c) Ifa replacement has been provided to the customer for a damaged item, the damaged item
will now be in DLA ownership and moved to non-issuable condition. The DD 1A worksite personnel will check their
local stock locations. If any additional discrepant material is found, it will be moved to non-issuable condition. A
Storage and Quality Control Report (SQCR) (DD Form 1225), identified as Document Type 5, will be prepared for
all discrepant materiel found in storage (including the materiel returned by the IA customer). A Document Type 5
indicates a discrepancy identified while materiel is in depot storage. In addition to the discrepancy code identifying the
problem, in order to provide visibility and potential for future performance measurement, this SQCR will also include
new Discrepancy Code Z5, indicating that the customer’s discrepancy has been resolved by the DD (although the
SQCR is open). SQCRs (Type 5) currently allow only one discrepancy code, unlike SDRs (Type 8) which allows two
discrepancy codes for reporting of discrepant depot receipts. The DLMS 8428 will be updated to allow the second
discrepancy code. [Note: In this scenario, current policy requires submission of both a SDR and a SQCR.
ADUSD(L&MR)SCI has authorized the use of the SQCR for documentation of the discrepant issue and exchange
where additional discrepant materiel is found in storage.] Staffing Note: DSS balance-by-location must be
carefully controlled at the local level to ensure that swap of discrepant items for good/correct materiel

does not distort inventory records.

(d) _ Ifthe DD has no material to resolve the discrepancy, any discrepant material will
remain in Navy ownership. The DD worksite will stow the discrepant material in a Navy Customer
Courtesy Storage Account. The DD IA worksite personnel will submit an SDR (identified as Document
Type 6 or7) via DSS (ADRS) to DoD WebSDR. A Type 6 SDR indicates a customer complaint for a
material shipped direct vendor delivery; a Type 7 SDR indicates a customer complaint for a material
shipped from a DLA depot. The SDR will identify the action activity as the shipping depot (for Type 7)
or the DLA ICP (for Type 6). WebSDR forwards the SDR to the designated action activity and
generates an information copy to DLA, based upon inclusion of the manager in the applicable SDR data
field. Ifthe SDR indicates an additional distribution copy is required by the Navy or Marine Corps, the
applicable DoDAAC or RIC will be included in the SDR (as a “party to receive copy” using N101
qualifier “PK” with N106 “TO”). If the DoDAAC/RIC is associated in WebSDR with the Navy
PDREP, the SDR transaction will be forwarded to PDREP.

(e) The SDR reply will be provided by either the shipping activity (initial reply)
and/or the ICP. WebSDR will forward the SDR reply to the submitting activity (DSS ADRS) and a
distribution copy to all activities originally identified for distribution copies. The DD IA worksite
personnel will carry out the disposition. DLA IA worksite personnel will manually enter disposition

the SDR for both part-numbered and unit of use materiel. When used for unit of use, the unit of use indicator and the
associated NSN will also be included.

ADC 371 Attachment Page 3


Readiness Center (FRC), or MCMC, will be directed/copied to the PDREP SDR application. SDRs
prepared for discrepant IA worksite receipt of DLA-owned materiel purchased for the Navy will also be
copied to PDREP. PDREP will be designated as the responsible SDR application for FRCs (already so
designated for NSYs). PDREP will also be designated as the responsible SDR application for the
Marine Corps.

(4) Inclusion of the Additional Data Content: Customer Reference Number, Customer
Order Acceptance Record (COAR), Job Order (JO) Number, Key Operation (KO) Number. SDR
report transactions will perpetuate the Navy protection document number from the DLA-provided
Prepositioned Materiel Receipt Document (PMRD) where applicable. The COAR, JO, and KO will also
be populated systemically or manually where applicable for Navy or Marine Corps.

(5) Navy-Owned Materiel SDRs Routed to PDREP will also be Copied to Navy Supply
Discrepancy Reporting System (NSDRS). Naval Supply Systems Command requests information
copies directed to NSDRS for all Navy-owned materiel SDRs routed or copied to PDREP.

(6) DoD WebSDR Enhanced Distribution Copy Procedures. DoD WebSDR business rules
will be upgraded to ensure that all parties designated to receive a copy of an SDR also receive a copy of
all subsequent transactions processed against that SDR.

(7) Correction of mapping for Unit of Use Indicator: ADC 381 inadvertently showed the
unit of use indicator mapped to the 842 BNRO1 which was already in use for the transaction set purpose
code. This ADC correctly shows the unit of use indicator mapped to the BNRO2.

(8) Background: Asa result of the 2005 BRAC decision, retail supply, storage and distribution
functions and associated infrastructure supporting the Navy industrial/maintenance sites will transfer to
DLA. The Navy sites consist of NSYs and FRCs. 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. By agreement with DLA, the process by which the Navy will identify a supply
discrepancy and request credit, if applicable, after DLA assumes SS&D functions at the Navy/IAs is
being revised so that DLA IA worksite personnel will assume this responsibility. These SDRs will be
submitted as DLMS EDI 842A/W transactions via the Distribution Standard System (DSS) Automated
Discrepancy Reporting System (ADRS). System changes will be needed to insure that the SDR are
directed to the appropriate SoS and copied to the appropriate systems depending on the scenario
involved for purchase and shipment of the materiel. Under the Navy BRAC concept of operations, DLA
will provide both DLA and non-DLA managed materiel to the Navy IA: SDRs will also be prepared for
other SoSs for Depot Level Repairables (DLR), Navy program-managed material and nuclear
consumable support materiel.

b. Detailed Procedures:
(1) IA Customer Discovered Discrepancies:

(a) When the IA customer discovers a supply discrepancy applicable to the DD issued
material (National Stock Number (NSN), Navy Local Stock Number (LSN), or unit of use LSN),!' the

' Refer to PDC 366A, Procedures and Additional Data Content supporting Requisitions, Requisition Alerts, and Unit of Use
Requirements under Navy BRAC SS&D/IMSP, May 6, 2010, for LSN related requirements. The LSN will be included on

ADC 371 Attachment Page 2


Attachment to ADC 371
Marine Corps SDR Distribution Rules and
Navy and Marine Corps SDR and SQCR Procedures and Data Content under BRAC

1, ORIGINATOR: Defense Logistics Agency, DLA J-331, 703-325-0552 (DSN 427)
2. FUNCTIONAL AREA: Primary: Supply/SDR
3, REFERENCES:

a. Functional Requirements for DLA’s implementation of Base Realignment and Closure (BRAC)
Retail Supply, Storage And Distribution (SS&D)/Inventory Management and Stock Positioning (IMSP)
Spiral 2.

b. DLMSO memorandum dated April 19, 2010, subject: Proposed Defense Logistics Management
System (DLMS) Change (PDC) 387, Supply Discrepancy Report (SDR) Procedures, including
additional Navy Document Number under Navy BRAC SS&D/IMSP.

4. REQUESTED CHANGE: _ Significant changes are highlighted in yellow.

a. Description of Change: This change documents multiple changes applicable to preparation
of SDRs. It revises the original PDC 387 requirement for a secondary document number on Navy
industrial activity (IA) SDRs using a different business process and requiring pre-population of the value
when applicable. Although the requisition alert business process is only applicable to the Navy, the
required Distribution Standard System capability to generate customer SDRs will also be applicable to
the Marine Corps Maintenance Centers (MCMC) under a DLA industrial activity (IA) support
agreement. Following is an overview of the changes addressed in this PDC:

(1) Distribution Depot (DD) Generation of Customer SDRs. The DD will be able to
generate customer SDRs (Document Type 6 for direct vendor delivery (DVD) or Type 7 for depot
shipments) on behalf of the customer for requisitioned materiel receipted by the depot. This will
eliminate a two step process currently in use whereby the DD reports a depot receiving discrepancy
(Document Type 8) to the materiel owner, who must then report a customer SDR to the Source of
Supply (SoS) if financial action or disposition instructions are needed.

(2) Immediate Exchange of Discrepant Materiel. DLA will authorize the DD to accept the
return of wrong or damaged materiel with immediate exchange or correction of shortages in materiel
issued to industrial activities. The DLA IA Worksite personnel will document the discrepancy on an
SDR or Storage Quality Control Report under procedures described below. This process is only
applicable to materiel available in the IA Worksite. Materiel exchange may be allowed for all types of
materiel, including mission support materiel (MSM) and Direct Materiel Inventory (DMI); however, if
protected for another requirement, an exchange will not be made without Navy/Marine Corps
authorization.

(3) SDRs Copies to Navy Product Deficiency Reporting & Evaluation Program (PDREP).
SDRs prepared by DSS on behalf of Navy IAs will designate the Navy Shipyard (NSY) or Fleet

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(2) Allows for immediate resolution of discrepancies without disruption of ongoing maintenance
action. Since the maintenance activity no longer stores extra supplies, it is important to reduce the wait
for required materiel whenever possible.

(3) The use of a single SDR (in lieu of both depot SDR to owner followed by customer SDR to
manager) reduces the overall number of SDRs in the system which should reduce backlog and speed up
response time in general

(4) The new discrepancy code allows for documentation and measurement of performance and
tracking without significant impact since these SDRs do not require action activity response.

(5) Allows for a single document when a SQCR is prepared (in lieu of both an SDR and a
SQCR), reducing workload while retaining visibility.

b. Disadvantages: Requires more complex logic required for DSS SDR processing within ADRS.
8. IMPACT:
a. Implementation Schedule:

(1) Navy: The BRAC implementation for the Navy is scheduled for December 2010.
DoD WebSDR query by JO is not required for initial implementation.

(2) Marine Corps: Implementation date of routing to PDREP is planned for September.
The BRAC implementation for the Marine Corps is scheduled for October 2010.

b. Policy Impact: The concept documented in this ADC to use the SQCR in place of the
SDR has been approved by ADUSD(L&MR)SCI._ Additional procedures to execute this concept are
recommended,

c. | DLMS Data Content: There are no new DLMS data elements associated with this
change. A new code value is added to the Discrepancy Code. The JO and KO are made available for
the SDR.

d. DAASC:
(1) DAAS/WebSDR will need to recognize outgoing customer SDRs from ADRS.

(2) DAAS/WebSDR will need to ensure that follow-on transactions perpetuate
distribution copy requirements.

(3) The WebSDR metric table may need adjustment to allow query by additional data
elements.

(4) Discrepancies identified against shipments using DLA N-series DoODAACs must be
routed to DLA by ADRS. Impact on report selection and display for these DoDAACSs is being
evaluated.

(5) WebSDR will ensure that information copies are provided to the manager for type 6
and 7 SDRS when the manager is identified as DLA, Navy, Marine Corps, Air Force.

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