NAVY - SECNAV 4355.18A
(DLMSO) REPORTING OF SUPPLY DISCREPANCIES
|Publication Date:||21 January 1999|
1. This publication is applicable to the Headquarters, Defense Logistics Agency (HQ DLA) and all DLA field activities, Defense Security Cooperation Agency (DSCA), other DOD agencies, and the Army, Navy, Air Force, Marine Corps, Coast Guard, and General Services Administration (GSA) activities, shipping and receiving material through the military or GSA supply and distribution systems. It applies to shipments made from Working Capital Funds (WCF) (formerly Defense Business Operations Fund (DBOF)) and non-WCF funded activities, Security Assistance shipments made under the International Logistics Program, personal property shipments, and shipments received from commercial sources. This document was developed by agreement among the Military Services, DLA, Coast Guard, and GSA. This publication will be implemented by GSA in the Discrepancies or Deficiencies in GSA or DOD Shipments, Material, or Billings Guide for the above cited purposes.
2. The reporting of the following types of discrepancies is excluded from the provisions of this publication:
a. Shipping discrepancies found while material is in storage with the exception of short shipment and wrong item discrepancies discovered upon opening a sealed vendors pack (exception applicable to U.S. Government only).
b. Discrepancies involving local base or station deliveries to or return from internal or satellite activities. However, this exclusion is not applicable to on-site Defense Distribution Depot shipments.
c. Discrepancies involving shipments of privately-owned vehicles.
d. Discrepancies involving shipments on requisitions or purchase
e. Transportation discrepancies to the extent covered by DoD 4500.9-R, Defense Transportation Regulation, Part II, Cargo Movement, except as specifically permitted under Security Assistance procedures.
f. Product quality deficiencies to the extent covered by DLAD 4155.24/AR 702-7/SECNAVINST 4855.5A/AFI 21-115, Product Quality Deficiency Report Program, and DLAR 4155.28, Reporting and Processing Medical Material Complaints, except as specifically permitted under Security Assistance procedures.
g. Shipping discrepancies involving personal property shipments with the exception of packaging discrepancies.
PURPOSE. This instruction:
1. Supersedes references A1 and A2.
2. Implements DoD 4140.1-R, DoD Material Management Regulation.
3. This instruction provides procedures governing the methods and conditions under which shipping (item) discrepancies and packaging discrepancies, collectively referred to as supply discrepancies, are reported and replies furnished. For shipments to Security Assistance customers these procedures also include reporting of products quality deficiencies, including services, and billing errors. The purpose of preparing supply discrepancy reports is to determine the cause of discrepancies, effect corrective action, and prevent recurrence. Such reports provide support for adjustment of property and financial inventory accounting records; information as a basis for claims against contractors; notification to shippers; visibility of preservation, packing, marking, and unitization discrepancies; required corrective actions; disposition instructions; and information for management evaluations. Guidance specific to discrepant Security Assistance articles or services is provided in Enclosure 7 and reference A5.
4. Significant Charges
a. This guidance introduces the terminology "Supply Discrepancy Report (SDR)" to identify all forms and formats of discrepancy reports which have evolved from the Standard Form (SF) 364, Report of Discrepancy (ROD). The term/acronym SDR is required for use under the Defense Logistics Management System (DLMS) and logistics migratory and standard system development. Full Service/Agency wide adoption of the term may be phased in over a 5-year period from the date of this document. The combined name, "SDR (ROD)," may be used for clarification.
b. This guidance has been revised to:
(1) Incorporate Security Assistance (SA) guidance within this document to enable deletion of separate guidance under DLAR 4140.60/AR 12-12/SECNAVINST 4355.17A/AFJI 16-106 (previously AFR 67-7), Processing Discrepancy Reports Against Foreign Military Sales Shipments. Guidance specific to SA is provided in Enclosure 7 and reference A.5. Enclosures 1-6 are provided for all users, as appropriate.
(2) Authorize submission of SDRs (RODs) via
(3) Promote a quicker reply to the customer.
(4) Clarify and simplify distribution of discrepancy reports after a logistics reassignment has occurred (stock migration).
(5) Include in the publication DOD standard lists for discrepancy codes, initiator action codes, and disposition codes.
(6) Provide shipping document retention guidance for SA.
(7) Generally clarify and simplify the wording of the publication, update terminology and offices; and make other administrative changes, as needed.
c. For U.S. Government reporting only, this guidance has been further revised to:
(1) Eliminate the minimum dollar value reporting criteria for expired shelf-life items.
(2) Allow optional reporting of supply discrepancies below the minimum dollar value reporting criteria for DLA-directed shipments.
(3) Decentralize supply discrepancy processing for DOD Distribution Depot-originated shipments for other than Army and Marine Corps reporting activities.
(4) Clarify SDR submission timeframes to encourage quicker customer submission while authorizing additional time when needed.
(5) Address submission and response to supply discrepancies
occurring in Government-furnished
(6) Provide specific guidance designed to strengthen oversight of controlled inventory items and expedite submission and processing of related discrepancy reports.
(7) Provide cautionary statements to U.S. Government activities that are responsible for material returns shipments with packaging discrepancies, material returns unaccompanied by required technical data, and unauthorized (not IMM/ICP-directed) return discrepancies. Such returns are subject to recoupment action for costs incurred for repackaging, disposal, or other costs required to correct discrepancies.
(8) Implement changes under approved DLMS Change 4, Revised Procedures for Discrepant Packaging. 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.
(9) Implement changes under approved DLMS Change 7, Revised Threshold for Submission of Packaging Discrepancies, which raises the threshold for required reporting of packaging discrepancies from $50 to $100 dollars.