Supply Process Review Committee (PRC) Meeting 11-1 June 21-22, 2011

1. Supply Process Review Committee (PRC) Meeting 11-1 June 21-22, 2011 Proposed/Approved DLMS Changes

2. DLMS Changes for Discussion(selected PDC/ADCs) • Changes under currently under development • Revised Proposed DLMS Change 403A, Procedures for Processing Depot Returns (including Receipt and SDR) . . . . . . Slide 9 • PDC 425, Revise DoD 4000.25-1-M to Eliminate Use of DD 173-2 Joint Message Form for Message Transmission of MILSTRIP Transactions, selected Media and Status Codes Requiring DLA Transaction Services Mailing, and other Administrative Updates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Slide 14 • PDC 473, Inclusion of Contract Number in Supply Transactions associated with Government Furnished Property (GFP) . . . . . . . . . Slide 25 • Changes in currently staffing • PDC 448, Additional Contract-Related Data for 870S with BV Status . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Slide 19 • PDC 467, Exception Rules to Accommodate Communication of Ammunition Quantities in Excess of Five Digits . . . . . . . . . . . . . . Slide 23

3. DLMS Changes for Discussion cont’d • Changes awaiting comment resolution/ADC publication • PDC 221A, Revised Procedures associated with the DLMS Enhancement for Communication of Unit Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Slide 3 • Recently approved change awaiting implementation • ADC 399, Automated Data Capture for Serialized Item Shipments and Preparation of the IRRD (DD Form 1348-1A or DD Form 1348-2) Continuation Page . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Slide 6

4. DRAFT ADC 221A • Proposed Addendum to ADC 221A, Revised Procedures associated with the DLMS Enhancement for Communication of Unit Price • ADC 221 expanded the field size for the unit price and total dollar value on the Issue Release/Receipt Document (IRRD) (DD Form 1348-1A) and established a corresponding field size for the unit price in DLMS transactions • DLMS unit price established as 9 digits dollars and 2 digits cents • MILSTRIP transactions unchanged – value truncated, losing the leading dollars • DLMS-to-MILS conversion follows same pattern as MILS originated – value truncated, losing the leading dollars • Revised rules will prevent conversion process from perpetuating : • truncated values into MILS format • Pseudo prices consisting of all 9’s into DLMS format

5. DRAFT ADC 221A • Change impacts additional DLMS transactions (added transactions in red text) • 511R, Requisition • 511M, Requisition Modification • 527D, Due-in/Advance Receipt /Due Verification • 527R, Receipt, Inquiry, Response and MRA • 536L, Logistics Reassignment Management Data • 810L, Logistics Bill • 812L, Logistics Bill Adjustment Request Reply • 812R, Logistics Bill Adjustment Request • 846D, Logistics Reassignment Transfer and Decapitalization • 856S, Shipment Status • 869F, Requisition Follow-Up • 870M, Material Returns Supply Status • 870S, Supply Status • 940R, Material Returns • 945A, Material Release Advice

6. DRAFT 221A • Tricky to implement in mixed environment involving transactions, AIT, and shipping documentation • Linear Bar Code must be stretched • Phased implementation approach – Components directed to be ready beginning mid-2007: • Ensure scanners will not fail if they encounter a linear bar code or 2D symbol containing a unit price with a maximum of 9 digits for dollars (current maximum for dollars is 5 digits) and 2 digits for cents • DLMS applications must be able to handle the expanded length or Component assumes responsibility to convert the unit price in the transaction to fit available space in the applicable database

7. ADC 399 • ADC 399, Automated Data Capture for Serialized Item Shipments and Preparation of the IRRD (DD Form 1348-1A or DD Form 1348-2) Continuation Page • Establishes a mandatory continuation page for serialized item shipments • Continuation page contains machine readable bar code symbols for the encoded content information including serial numbers and UIIs • Supplements existing rules requiring inclusion of the UII in a Portable Data File 417 (PDF417) two-dimensional (2D) symbol for single item shipments with new Macro PDF417 symbol(s) including multiple UIIs • Continuation page also lists linear bar codes for serial numbers with associated human readable value

8. ADC 399 • When a Macro PDF417 symbol is used, the data common to all items of the shipment are in the first PDF417 symbol followed by data elements of stand-alone serial numbers (that have no associated UIIs) ,or followed by data elements identifying UIIs and their associated serial numbers • When space is exhausted in a symbol’s data capacity, move on to next Macro PDF417 symbol to encode additional data • There is no rule requiring when a new symbol is begun - space within a symbol’s format is the determining factor • There is no need to repeat shipment-related data in the next Macro PDF417 symbol

9. ADC 399

10. DRAFT PDC 403A • Revised Proposed DLMS Change 403A, Procedures for Processing Depot Returns (including Receipt and SDR) • This change revises DLMS/MILSTRAP/SDR procedures: • To support DLA Distribution Depot processing and automatic disposal of materiel categorized as Supply Condition Code (SCC) H, Unserviceable (Condemned) • To revise the dollar value associated with automatic disposal • To revise the time standard for providing disposition on materiel identified upon receipt in SCC K, Suspended (Returns). • To clarify manual procedures associated depot receipt of material where the NSN is not known, and allow an automated communication (when other than new wholesale new procurement) that requires specific data about the unidentified item to be provided as distinct data fields. • Re-worked subsequent to DLA non-concurrence on PDC 403 • PDC 403A to be re-coordinated

11. Original business rules under PDC 403 • Supply Condition Code (SCC) H, Unserviceable (Condemned), with the selected DEMIL Codes, Controlled Inventory Item Codes (CIICs), or Hazardous Type Cargo Codes will not be disposed of automatically • Dollar threshold for automatic disposal raised to $500 per item • Exceptions requested by Components identified in proposal • Automatic disposal of unidentified materiel with estimated value under $100 is terminated • If new procurement material is unidentified, the Depot will follow existing MILSTRAP procedures requiring immediate off-line coordination with the manager to establish materiel identification so that the receipt and SDR may be processed

12. Original business rules under PDC 403 • Revised time standards for materiel in SCC K, Suspended (Returns) • If actual SCC not known, materiel receipted in SCC K, and SDR sent to owner/manager. The owner/manager will have 30 days to respond to SDRs for materiel identified in SCC K or provide appropriate transaction, such as, MILSTAP DAC, Inventory Adjustment – Dual (Condition Transfer) • A new 5 day time standard is identified for the depot to reclassify materiel upon direction of the ICP. • The overall time standard for the storage activity to complete reclassification of SCC K materiel is revised to 35 days (vice 10)

13. New business rules under PDC 403A • SDR application will require mandatory information about the discrepant item when the NSN/Local Stock Number is not known • Primary materiel identification reported as “UNKNOWN” • Secondary materiel identification provided as available. • Manufacturer’s CAGE Code – if none state “none” • Part Number – if none, state “None” • Serial Number – if none, state “None” • Other bare item marking if none, state “None” • Contract Number (from prior issue) – if none, state “None” • Original Packaging – yes/no indicator

14. New business rules under PDC 403A • Issues to be resolved for unauthorized returns: • Receipt posted to accountable record – but who is the owner? • Post to a Service-specific ownership account based upon returning Service • Post to Manager or presumed manager for unidentified items • SDR Distribution • Action copy to owner (??) • Info copy to returning activity - identified by DoDAAC • WebSDR does not have capability to disseminate for Army retail/tactical activities • Storage/disposal costs • Owner/Manager may pass on associated costs to the returning activity under MILSTRIP/MILSBILLS procedures • No automated process to accomplish this • "U.S. Government activities returning materiel are cautioned that the returning activity may be held responsible for costs incurred by the receiving activity when discrepancies are reported and validated using SDR procedures. This includes returns made in violation of prescribed materiel returns procedures, returns exhibiting packaging discrepancies, and returns of reparable items unaccompanied by required technical data. Recoupment action by the ICP against the initiator may include all cost reimbursable actions performed by the receiving activity such as repackaging, marking, and disposal."

15. DRAFT PDC 425 • PDC 425, Revise DoD 4000.25-1-M to Eliminate Use of DD 173-2 Joint Message Form for Message Transmission of MILSTRIP Transactions, selected Media and Status Codes Requiring DLA Transaction Services Mailing, and other Administrative Updates • Eliminates the use of DD Forms 173/2 for message transmission of MILSTRIP transactions (Army proponent canceled the form) • Eliminates DLA Transaction Services mailing Eliminates DLA Transaction Services mailing of readable document formats (rather than transaction exchange) • Proposed for termination under PDC 62 – cost prohibitive/value questionable • Deletes associated Media (M&S) and Status Codes

16. DRAFT PDC 425 Message Format • DD Form 173/2 • To be removed: • AP1.8, MILSTRIP Message Requisition • AP1.9, MILSTRIP Message Follow-up • AP1.11, Abbreviated MILSTRIP Message Supply Status • AP1.12, Abbreviated MILSTRIP Message Shipment Status • AP1.13, MILSTRIP Part Number/Non-NSN Message Requisition • AP1.14, Formatted Teletype Message Transmission of MILSTRIP Transactions • AP1.15, Message Request for Special Materiel Obligation Validation • AP1.16, Message Reply to Special Materiel Obligation Validation Request • AP1.22, Abbreviated Message Asset Report, etc. (Materiel Returns Program) • To be replaced: • AP1.10, MILSTRIP Supply Assistance Request Content • AP1.23, Mass or Universal Cancellation Content

17. DRAFT PDC 425 M&S Codes • AP2 .4.2.6. M&S Codes – Delete codes identified in red italics: 0 No status to requisitioner or SUPADD other than mandatory shipment status to the ship-to activity designated by the signal code. One hundred percent supply status and shipment status by DMS to the activity designated by a significant entry in rp 54. 1 Reserved. 2 Exception supply status to requisitioner in rp 30-35 by DMS. 3 Exception supply status to requisitioner in rp 30-35 readable document (mailed). 4 Exception supply status to SUPADD in rp 45-50 by DMS. 5 Exception supply status to SUPADD in rp 45-50 by readable document (mailed). 6, 7 Reserved. 8 One hundred percent supply status and shipment status to activity indicated in rp 54 by DMS. Do not provide status to any other status eligible recipient under any other circumstances. (For use only by SICAs on transactions for nonconsumable items). 9 Not used.

18. PDC 425 M&S Codes cont’d A One hundred percent supply status and shipment status to requisitioner on GSA Form 10050. B One hundred percent supply status to requisitioner in rp 30-35 by DMS. C One hundred percent supply status to requisitioner in rp 30-35 by readable document (mailed). D One hundred percent supply status to SUPADD in rp 45-50 by DMS. E One hundred percent supply status to SUPADD in rp 45-50 by readable document (mailed). F One hundred percent supply status and shipment status to requisitioner and SUPADD by DMS. G One hundred percent supply status and shipment status to requisitioner and SUPADD on GSA Form 10050. H One hundred percent supply status and shipment status to SUPADD on GSA Form 10050. I Not used. J Exception supply status to requisitioner on GSA Form 10050. K Exception supply status and shipment status to requisitioner in rp 30-35 DMS. L Exception supply status and shipment status to requisitioner by readable document (mailed). M Exception supply status and shipment status to SUPADD in rp 45-50 by DMS.

19. PDC 425 M&S Codes cont’d N Exception supply status and shipment status to SUPADD by readable document (mailed). O Not used. P Exception supply status and shipment status to requisitioner and SUPADD on GSA Form 10050. Q Exception supply status and shipment status to SUPADD on GSA Form 10050. R Reserved. S One hundred percent supply status and shipment status to requisitioner in rp 30-35 by DMS. T One hundred percent supply status and shipment status to requisitioner in rp 30-35 by readable document (mailed). U One hundred percent supply status and shipment status to SUPADD in rp 45-50 by DMS. V One hundred percent supply status and shipment status to SUPADD in rp 45-50 by readable document (mailed). W, X Reserved. Y No status to requisitioner or SUPADD other than mandatory shipment status to the ship-to activity designated by the signal code. Exception supply status and shipment status by DMS to the activity designated by a significant entry in rp 54. Z Exception supply status and shipment status to requisitioner and SUPADD by DMS.

20. PDC 448 – In Staffing • PDC 448, Additional Contract-Related Data for 870S with BV Status • BV Status indicates “Item Procured and on contract for direct shipment to the consignee” • Separate MILSTRIP AB_, Direct Delivery Notice, also provided with contract number and call/order number • Limited implementation across Components to send/receive MILSTRIP AB_ • Under DLMS, dual transaction concept is perpetuated using separate 870S, Supply Status

21. Proposed Enhancements under PDC 448 • DLMS enhancements to add contract data support Component requirements and improve supply chain business processes • DoD Item Unique Identification (IUID) and Serialized Item Management (SIM) procedures requires acceptance of new procurement vendor shipments in order to populate the UII in the DoD IUID Registry • Components do not have internal visibly of which contractor shipments require destination acceptance • Knowledge of allowable overage/shortage under contract terms, may be used by the receiving activity in determining when it is appropriate to submit an SDR • Numerous other contract-related data identified as candidates for additions to the 870S

22. Proposed Enhancements under PDC 448 • Transaction Set Purpose Code added to the 870S to call out standard BV supply status with integrated contract data (both DI Codes, as well) • Triggers DAAS conversion to DI Codes AE_ and AB_ for legacy users • PDC includes a table of contract-related data to obtain implementation of original placeholders • DLMS enhancement used as basis of PDC • Components are asked to review and specifically comment data-element-by-data-element

23. Contract-related data for implementation under PDC 448 • Acceptance Point Designator: Origin, Destination (Destination-Other?) • Quantity Variation – Overage/Shortage: Identified by percent • Excess Quantity Clause Amount: Identified by dollars • Fast Pay Indicator: Provided if applicable • Inspection Point Designator: Origin, Destination • Cash Discount Stipulation Code: Provided if applicable • Certificate of Conformance Indicator: Yes/no indicator (Certificate of Compliance?) • Certificate of Quality Conformance Indicator: Yes/no indicator • Contract Administration Office: Identified by DoDAAC • Vendor: Identified by CAGE • Part Number Purchased: Provided when NSN is primary value • Manufacturer of Part Number Purchased: • Purchase Unit of Measure: Provided when different from unit of issue

24. PDC 467 – In Staffing • PDC 467, Exception Rules to Accommodate Communication of Ammunition Quantities in Excess of Five Digits • DLA Transaction Services will split “large” quantities for ammunition communicated via DLMS Transaction into two legacy 80-record position transactions using same document number/suffix on each • Legacy formats restrict quantity field to 5 positions • For ammunition items only (FSG 13), an “M” in the last position of the quantity expresses in thousands any quantity exceeding 99,999. Example: 1,950,000 would be expressed as 1950M (e.g. 1950 in rp 25-28 and an “M” in rp 29) • DLMS supports expanded length for quantity, but translation is required to support the communication of quantities between DLMS and legacy systems • Legacy requisitions comply with business rules, but when the supply source processes the requisition, the result may be large quantity that is not evenly divisible by thousands • Army modernization (LMP) did not pre-plan for interfaces based upon the legacy quantity restriction and would require major re-engineering if required to introduce restrictions at this time • “Large” quantities cannot be properly converted and fail in the recipient’s system

25. Conversion rules under PDC 467 • Conversion processing will split the “large” quantity between two legacy transactions with same document number/suffix: • Quantity that can be expressed in thousands using the M multiplier • Residual quantity • New conversion rules restricted by sender/receiver for most transactions, but supply and shipment status only restricted based upon the sender • Concerns • Processing of status quantities as additive when received on like document number/suffix (rather than interpreting as updated status or duplicate status) is not currently authorized under MILSTRIP, but has been adopted by the identified systems for ammunition • Unclear if other unidentified applications could also be involved • Requires careful review of sender/receiver restrictions

26. New PDC 473 (not staffed) • PDC 473, Inclusion of Contract Number in Supply Transactions associated with Government Furnished Property (GFP) • OSD SCI and DPAP have established a requirement for the inclusion of the GFP contract number in shipment status and materiel receipt acknowledgment (MRA) associated with GFP • ADC 390, Revise DLMS 527R MRA and Receipt Functions to Require the DoD Contract Number for Transactions Associated with Government Furnished Materiel (GFM), and for MRA Associated with Contractor Furnished Materiel (CFM) • Requires inclusion of contract number and call/order number, if applicable, in DLMS MRA from contractors receiving GFM/CFM • MRA is required whether the GFM was pushed or pulled (requisitioned). • Separate PDC to be provided for inclusion of the contract number in the DLMS 856S, Shipment Status

27. New PDC 473 Requirements • Pre-requisites • The original requisition for GFM includes the contraction number when provided for Management Control Activity (MCA) validation • DLMS 511R must retain the contract number when the requisition is passed by MCA to SoS • The SoS must perpetuate the contract number from the requisition when initiating a Materiel Release Order (MRO) for stock shipment • When using push processing without a prior requisition, the ICP must insert the contract number in the MRO • Procedures • The shipping activity must perpetuate the contract number to the shipment status • When using direct vendor shipments to satisfy GFP requirements, the ICP-prepared shipment status must include the GFP contract number