Medical and Public Health Law Site
DoD Directives

TABLE OF CONTENTS

Page
FOREWORD 2

 
TABLE OF CONTENTS 3

 
TABLES 6

 
REFERENCES 7

 
ABBREVIATIONS AND/OR ACRONYMS 10

 
CHAPTER 1 - GUIDING PRINCIPLES 16
    C1.1.  PURPOSE 16
    C1.2.  DoD SUPPLY CHAIN 16
    C1.3.  DoD SUPPLY CHAIN MATERIEL MANAGEMENT GOALS 17
    C1.4.  SUPPLY CHAIN PROCESSES 19
    C1.5.  SUPPLY CHAIN METRICS 21

 
CHAPTER 2 - PLAN 23
    C2.1.  DEMAND/SUPPLY PLANNING 23
    C2.2.  PROVISIONING 25
    C2.3.  ITEM CLASSIFICATION AND CODING FOR STOCKAGE REQUIREMENTS 30
    C2.4.  ITEM SUPPORT GOALS 32
    C2.5.  FORECASTING CUSTOMER DEMAND 34
    C2.6.  MATERIEL STOCKAGE COMPUTATIONS 37
    C2.7.  SECONDARY ITEM WAR RESERVE REQUIREMENTS 54
    C2.8.  MATERIEL RETENTION 55
    C2.9.  ITEM REDUCTION 58

 
CHAPTER 3 - SOURCE 60
    C3.1.  SOURCING AND MATERIEL ACQUISITION 60
    C3.2.  MATERIEL SUPPORT ALTERNATIVES 61
    C3.3.  ACQUISITION INTERFACES 69
    C3.4.  INTEGRATED MATERIEL MANAGEMENT 72
    C3.5.  QUALITY PROGRAMS 73
    C3.6.  DIMINISHING MANUFACTURING SOURCES AND MATERIEL SHORTAGES
              (DMSMS)		 75
    C3.7.  MANAGEMENT OF ON-ORDER ASSETS 79
    C3.8.  RECEIPT PROCESSING 81

 

TABLE OF CONTENTS,  Continued

CHAPTER 4 - MAKE/MAINTAIN 83
    C4.1.  MAKE/MAINTAIN MATERIEL 83
    C4.2.  MAINTENANCE INTERFACES 84
    C4.3.  BUYING FROM SUPPLIERS 86
    C4.4.  CLS AND DVD INTERFACES 87
    C4.5.  SETS, KITS, AND OUTFITS 89

 
CHAPTER 5 - DELIVER 90
    C5.1.  END-TO-END DISTRIBUTION 90
    C5.2.  STOCK POSITIONING 91
    C5.3.  REQUISITIONING 94
    C5.4.  MATERIEL ISSUE PROCESSING 100
    C5.5.  LATERAL REDISTRIBUTION OF ASSETS 101
    C5.6.  DISTRIBUTION OPERATIONS 104
    C5.7.  ITEM ACCOUNTABILITY/CONTROL AND STEWARDSHIP 105
    C5.8.  INTRANSIT ASSET VISIBILITY 124
    C5.9.  HAZARDOUS MATERIALS 126
    C5.10.  MATERIEL DISPOSITION 128
    C5.11.  CONTROL OF ACCESS TO DoD MATERIEL INVENTORIES REQUIRED
              BY DEFENSE CONTRACTS		 130

 
CHAPTER 6 - RETURN 133
    C6.1.  MATERIEL RETURNS 133
    C6.2.  RETURN OF DEFECTIVE MATERIEL 135
    C6.3.  RETURN OF MATERIEL FOR MAINTENANCE, REPAIR, OR OVERHAUL 136
    C6.4.  MATERIEL RETURNS PROGRAM FOR RETAIL ASSETS 138

 
CHAPTER 7 - SUPPORTING TECHNOLOGIES 140
    C7.1.  SUPPLY CHAIN MATERIEL MANAGEMENT SYSTEMS 140
    C7.2.  AUTOMATED IDENTIFI ATION TECHNOLOGY (AIT) 142
    C7.3.  SUPPLY CHAIN ANALYTICAL CAPABILITIES 143
    C7.4.  PRODUCT SUPPORT DATA 144

 

TABLE OF CONTENTS, Continued

CHAPTER 8 - LOGISTICS PROGRAMS AND SYSTEMS 147
    C8.1.  CATALOGING 147
    C8.2.  NEW CLOTHING AND TEXTILE ITEMS 150
    C8.3.  SPARE PARTS BREAKOUT PROGRAM 153
    C8.4.  PRICE CHALLENGE AND PROCE VERIFICATION PROGRAM 154
    C8.5.  DoD AVIATION CRITICAL SAFETY ITEM (CSI)/FLIGHT SAFETY CRITICAL
              AIRCRAFT PART (FSCAP) PROGRAM		 156
    C8.6.  MANAGEMENT SYSTEM OF LOGISTICS STANDARD SYSTEMS
              AND DATA		 161
    C8.7.  PACKAGING 168
    C8.8.  UNIFORM MATERIEL MOVEMENT AND ISSUE PRIORITY SYSTEM
              (UMMIPS)		 173

 
CHAPTER 9 - SPECIAL REQUIREMENTS 176
    C9.1.  STRATIFICATION 176
    C9.2.  SUPPLY SYSTEM INVENTORY REPORT (SSIR) 177
    C9.3.  AMMUNITION STRATIFICATION, REPORTING, AND CROSS
              LEVELING		 181
    C9.4.  LOGISTICS SUPPORT OF U.S. NON-DoD OR NON-GOVERNMENT,
              AGENCIES, AND INDIVIDUALS IN OVERSEAS MILITARY COMMANDS		 186
    C9.5.  EXCHANGE OR SALE OF NONEXCESS PERSONAL PROPERTY 187

 
APPENDICES
    AP1.  DEFINITIONS
              FREQUENTLY USED IN DoD ISSUANCES		 190
    AP2.  PROVISIONING DATA AND ORGANIC REQUIREMENTS PROCEDURES 213
    AP3.  RETAIL REASON FOR STOCKAGE CATEGORY CODES 217
    AP4.  ESSENTIALITY MATRIX 219
    AP5.  COST ESTIMATING 222
    AP6.  REPAIR CYCLE TIME 226
    AP7.  AGREEMENT BETWEEN THE DEPARTMENT OF DEFENSE AND THE GENERAL SERVICES ADMINISTRATION GOVERNING SUPPLY MANAGEMENT RELATIONSHIPS UNDER THE NATIONAL SUPPLY SYSTEM 230
    AP8.  TIME DEFINITE DELIVERY STANDARDS 242
    AP9.  UMMIPS RESPONSIBILITIES 249
    AP10.  CHARTER FOR THE DoD UNIQUE ITEM TRACKING COMMITTEE (UITC) 258
    AP11.  CHARTER FOR THE DoD JOINT SMALL ARMS COORDINATING GROUP (JSACG) 261
    AP12.  CHARTER FOR THE DoD JOINT PHYSICAL INVENTORY WORKING GROUP (JPIWG) 264
    AP13.  DLMS AND DLSS RESPONSIBILITIES 266
    AP14.  LEVELS OF PROTECTION 274
    AP15.  CHARTER FOR THE DEFENSE PACKAGING POLICY GROUP (DPPG) 276
    AP16.  INSTRUCTIONS FOR ELECTRONIC SSIR REPORTING 284
    AP17.  INDEX 286

TABLES

Table Title Page
AP8.T1. UMMIPS Time Standards for Transportation Priority 1 245
AP8.T2. UMMIPS Time Standards for Transportation Priority 2 247
AP8.T3. UMMIPS Time Standards for Transportation Priority 3 248
AP16.T1. SSIR Spreadsheet Header Data 284
AP16.T2. SSIR Spreadsheet Line Item Data 285

REFERENCES

(a) DoD Directive 4140.1, "Materiel Management Policy," January 4, 1993

(b) Sections 2451 through 2458, 2572, and 2576 of title 10, United States Code

(c) DoD 4100.38-M, "Department of Defense Provisioning and Other Preprocurement Screening Manual," November 1983

(d) MIL-PRF-49506, "Performance Specification Logistics Management Information," November 11, 1996, located at website:  http://131.82.253.19/docimages/0001/67/51/49506.PD5

(e) MIL-HDBK-502, "Department of Defense Handbook Acquisition Logistics," May 30, 1997

(f) DoD 4140.27-M, "Shelf-Life Item Management Manual," September 26, 1997

(g) DoD 4000.25-2-M, "Military Standard Transaction Reporting and Accounting Procedures (MILSTRAP)," September 19, 2001

(h) DoD 7000.14-R, "Department of Defense Financial Management Regulations (FMRs)," dates vary

(i) DoD Directive 3110.6, "War Reserve Materiel Policy," November 9, 2000

(j) DoD 4120.24-M, "DoD Standardization Program (DSP) Policies and Procedures," March 2000

(k) DoD 4140.32-M, "Defense Inactive Item Program," August 1992

(l) Defense FAR Supplement, Part 208, "Required Sources of Supplies and Services," current edition

(m) DoD Directive 5000.1, "The Defense Acquisition System," October 23, 2000

(n) DoD 4140.26-M, "Defense Integrated Materiel Management Manual for Consumable Items," May 1997

(o) Federal Acquisition Regulation, Part 46, "Quality Assurance," current edition

(p) Defense FAR Supplement, Part 246, "Quality Assurance, current edition

(q) DoD 4500.9-R "Defense Transportation Regulation," Part II, "Cargo Movement," April 1996

(r) DoD 4000.25-1-M, "Military Standard Requisitioning and Issue Procedures (MILSTRIP)," November 2000

(s) Sections 287 and 2318 of title 22, United States Code

(t) DoD 4000.25-6-M, "Department of Defense Activity Address Directory (DoDAAD), Part I," "Activity Address Code Sequence," April 1996

(u) DoD 4000.25-6-M, "Department of Defense Activity Address Directory (DoDAAD), Part II," "Zip Code Sequence," April 1996

(v) DoD 4000.25-6-M, "Department of Defense Activity Address Directory (DoDAAD), Part III," "Civil Agency Addresses," April 1996

(w) DoD 4000.25-8-M, "Military Assistance Program Address Directory (MAPAD) System," July, 1995

(x) DoD 4000.25-M, "Defense Logistics Management System (DLMS), February 1996

(y) DoD 4000.25-7-M, "Military Standard Billing System (MILSBILLS)," January 1985

(z) DoD Directive 5010.38, "Management Control (MC) Program," August 26, 1996

(aa) DoD 5100.76-M, "Physical Security of Sensitive Conventional Arms, Ammunition, and Explosives," August 12, 2000

(ab) NTISSI No. 4001, "Controlled Cryptographic Items," March 14, 1985

(ac) Federal Acquisition Regulation, Part 45, "Government Property," current edition

(ad) FED-STD-793A, "Federal Standard Depot Storage Standards," October 15, 1998

(ae) DoD 5200.8-R, "Physical Security Program," May 13, 1991

(af) DoD Directive 5210.63, "Security of Nuclear Reactors and Special Nuclear Materials," April 6, 1990

(ag) DoD 4160.21-M, "Defense Reutilization and Marketing Manual," August 18, 1997

(ah) DoD 6055.9-STD, "DoD Ammunition and Explosives Safety Standards," July 1, 1999

(ai) FED-STD-313 D, "Material Safety Data, Transportation Data and Disposal Data for Hazardous Materials Furnished to Government Activities," April 3, 1996

(aj) Title 22, Code of Federal Regulations, Part 121, "The United States Munitions List," current edition

(ak) Title 15, Code of Federal Regulations, Part 774, "Commerce Control List," current edition

(al) DoD 4160.21-M-1, "Defense Demilitarization Manual," October 1991

(am) Sections 481(c), 484(j)(2), and 512(a) of title 40, United States Code

(an) Section 3710(i) of title 15, United States Code

(ao) DoD Instruction 5535.8, "DoD Technology Transfer (T2) Program," May 14, 1999

(ap) ISO/IEC 15434, "Information Technology -- Transfer Syntax for High Capacity ADC Media," October 1, 1999

(aq) ISO/IEC 15418, "Information Technology -- EAN/UCC Application Identifiers and Fact Data Identifiers and Maintenance," December 1, 1999

(ar) ANSI NCITS-256:2001, "Radio Frequency Identification (RFID) Technology," February 26, 2001

(as) IEEE 801-11 series, "Wireless Local Area Networks," dates vary by individual standard

(at) DoD 4100.39-M, "Federal Logistics Information System (FLIS) Procedures Manual," dates vary

(au) NATO Standardization Agreement (STANAG) 3150, "Codification of Equipment - Uniform System of Supply Classification," July 1989

(av) NATO Standardization Agreement (STANAG) 3151, "Codification of Equipment - Uniform System of Item Identification," July 1989

(aw) Allied Codification Publication, NATO Manual on Codification, July 1989

(ax) DoD 4000.25-7-M-S-1, "Fund Code Supplement to MILSBILLS," February 1994

(ay) DoD Directive 8190.1, "DoD Logistics Use of Electronic Data Interchange (EDI) Standards," May 5, 2000

(az) DoD 4000.25-1-S1, "MILSTRIP Routing Identifier and Distribution Codes," June 1996
 

(ba) DoD 4000.25-5-M, "Military Standard Contract Administration Procedures (MILSCAP)," March 1993

(bb) DoD 4000.25-7-M-S-1, "Fund Code Supplement to MILSBILLS," February 25, 1994

(bc) DoD 4000.25-10-M, "Defense Automatic Addressing System," April 1985

(bd) DoD Directive 8320.1, "DoD Data Administration," September 26, 1991

(be) Federal Acquisition Regulation, Part 12, "Acquisition of Commercial Items," current edition

(bf) Section 403 of title 44, United States Code

(bg) DoD Instruction 6055.1, "DoD Safety and Occupational Health (SOH) Program," August 19, 1998i60551p

(bh) Title 49, Code of Federal Regulations, Part 173, "General Requirements for Shipments and Packaging," current edition

(bi) DoD Directive 4715.1, "Environmental Security," February 24, 1996

(bj) DoD Instruction 4715.6, "Environmental Compliance," April 24, 1996

(bk) Sections 1901 through 1915 of title 33, United States Code

(bl) DoD Instruction 4140.61, "Customer Wait Time and Time Definite Delivery," December 14, 2000

(bm) DoD 4140.1-M, "Secondary Item Stratification Manual," June 9, 1995

(bn) DoD 5160.65-M, "Single Manager for Conventional Ammunition (Implementing Joint Conventional Ammunition Policies and Procedures)," April 1989

(bo) DoD Instruction 3000.4, "Capabilities-Based Munitions Requirements (CBMR) Process," August 10, 2001

(bp) Title 46, Code of Federal Regulations, Chapter 101 (Federal Property Management Regulations), current edition

(bq) Joint Pub 1-02, "Department of Defense Dictionary of Military and Associated Terms," March 23, 1994

(br) DoD Directive 5160.65, "Single Manager for Conventional Ammunition (SMCA)," March 8, 1995

(bs) DoD Directive 4400.1, "Defense Production Act Programs," October 12, 2001

(bt) CJCS Instruction 5113.01B, "Charter of the Counterterrorist Joint Task Force," May 31, 2000

(bu) DoD 5025.1-M, "DoD Directive System Procedures," March 5, 2003

AL1. ABBREVIATIONS AND/OR ACRONYMS
AL1.1.1.    AAO Approved Acquisition Objective
AL1.1.2.    AD Airworthiness Directive
AL1.1.3.    ADUSD(SCI) Assistant Deputy Under Secretary of Defense
(Supply Chain Integration)
AL1.1.4.    AFMC Air Force Materiel Command
AL1.1.5.    AIT Automated Item Identification
AL1.1.6.    ALT Administrative Lead Time
AL1.1.7.    AMC-R Army Materiel Command Regulation
AL1.1.8.    AMXED Office of the Executive Director for
Conventional Ammunition
AL1.1.9.    ANSI American National Standards Institute
AL1.1.10.  AR Army Regulation
AL1.1.11.  AWC Awaiting Carcasses
AL1.1.12.  AWM Awaiting Maintenance
AL1.1.13.  AWP Awaiting Parts
AL1.1.14.  BOM Bill of Materials
AL1.1.15.  CAGE Contractor and Government Entity
AL1.1.16.  CCI Contractor Cryptographic Item
AL1.1.17.  CCP Container Consolidation Point
AL1.1.18.  CD-ROM Compact Disk - Read Only Memory
AL1.1.19.  CJCS Chairman of the Joint Chiefs of Staff
AL1.1.20.  CLS Commercial Logistics Support
AL1.1.21.  CLSSA Cooperative Logistics Supply
Support Arrangements
AL1.1.22.  COSIS Care of Supplies in Storage
AL1.1.23.  COE Common Operating Environment
AL1.1.24.  COTS Commercial-Off-The-Shelf
AL1.1.25.  CRMS Contingency Retention Munitions
Stock
AL1.1.26.  CRS Contingency Retention Stock
AL1.1.27.  CSIS Central Secondary Item
Stratification
AL1.1.28.  CWT Customer Wait Time
AL1.1.29.  DAAS Defense Automatic Addressing
System
AL1.1.30.  DAASC Defense Automatic Addressing Center
AL1.1.31.  DCMA Defense Contract Management
Agency

AL1.1.32.  DFARS Defense Federal Acquisition
Regulation Supplement
AL1.1.33.  DIIP Defense Inactive Item Program
AL1.1.34.  DLA Defense Logistics Agency
AL1.1.35.  DLAI DLA Instruction
AL1.1.36.  DLAR DLA Regulation
AL1.1.37.  DLMS Defense Logistics Management
System
AL1.1.38.  DLMSO Defense Logistics Management
Standards Office
AL1.1.39.  DLIS Defense Logistics Information
Service
AL1.1.40.  DLSS Defense Logistics Standard System
AL1.1.41.  GCA Government Contracting Activity
AL1.1.42.  DMSMS Diminishing Manufacturing Sources
and Material Shortages
AL1.1.43.  DoDAAC Department of Defense Activity
Address Code
AL1.1.44.  DoDAAD Department of Defense Activity
Address Directory (Parts I through
III, references (a) through (c))
AL1.1.45.  DoDSASP DoD Small Arms Serialization
Program
AL1.1.46.  DPPG Defense Packaging Policy
Group
AL1.1.47.  DRMO Defense Reutilization and
Marketing Group
AL1.1.48.  DRMS Defense Reutilization and
Marketing Service
AL1.1.49.  DSCA Defense Security Cooperation
Agency
AL1.1.50.  DUSD(L&MR) Deputy Under Secretary of Defense
for Logistics and Materiel Readiness
AL1.1.51.  DVD Direct Vendor Delivery
AL1.1.52.  DX Priority Rating Symbol (Highest
National Defense Urgency)
AL1.1.53.  EDFP Engineering Data for Provisioning
AL1.1.54.  EDI Electronic Data Interchange
AL1.1.55.  EMALL Electronic Mall
AL1.1.56.  EOQ Economic Order Quantity

AL1.1.57.  ERMS Economic Retention Munitions Stock
AL1.1.58.  ERP Enterprise Resource Planning
AL1.1.59.  ERS Economic Retention Stock
AL1.1.60.  ESA Engineering Support Activity
AL1.1.61.  F/AD Force or Activity Designator
AL1.1.62.  FAA Federal Aviation Administration
AL1.1.63.  FAR Federal Acquisition Regulations
AL1.1.64.  FDAd Functional Data Administrator
AL1.1.65.  FED-STD Federal Standard
AL1.1.66.  FLIS Federal Logistics Information System
AL1.1.67.  FMS Foreign Military Sales
AL1.1.68.  FSC Federal Supply Classification
AL1.1.69.  FSCAP Flight Safety Critical Aircraft Part
AL1.1.70.  FSCG Federal Supply Classification Group
AL1.1.71.  GCSS Global Combat Support System
AL1.1.72.  GIDEP Government-Industry Data Exchange
System
AL1.1.73.  GFE Government-Furnished Equipment
AL1.1.74.  GFM Government-Furnished Materiel
AL1.1.75.  GSA Government Services Administration
AL1.1.76.  HMIRS Hazardous Materials Information
Resource System
AL1.1.77.  ICP Inventory Control Point
AL1.1.78.  ICS Interim Contractor Support
AL1.1.79.  IDIQ Indefinite Delivery and Indefinite
Quantity
AL1.1.80.  IEC International Electrotechnical Commission
AL1.1.81.  IEEE Institute of Electrical and Electronics
Engineers, Inc.
AL1.1.82.  IKE Integrated Knowledge Environment
AL1.1.83.  IMC Item Management Code
AL1.1.84.  IMM Integrated Materiel Manager
AL1.1.85.  ISO International Organization for
Standardization
AL1.1.86.  IT Information Technology
AL1.1.87.  I&S Interchangeable and Substitutable
AL1.1.88.  JPIWG Joint Physical Inventory Working Group
AL1.1.89.  JSACG Joint Small Arms Coordinating Group
AL1.1.90.  LANs Local Area Networks
AL1.1.91.  LMARS Logistics Metric Analysis
Reporting System
AL1.1.92.  LOT Life-Of-Type

AL1.1.93.  LSIS Local Secondary Item Statification
AL1.1.94.  MAPAC Military Assistance Program
Address Code
AL1.1.95.  MAPAD Military Assistance Program
Address Directory
AL1.1.96.  MCA Materiel Control Activity
AL1.1.97.  MCO Marine Corps Order
AL1.1.98.  MIA Missing In Action
AL1.1.99.  MIL-HDBK Military Handbook
AL1.1.100.  MIL-PRF Military Performance Specification
AL1.1.101.  MIL-STD Military Standard
AL1.1.102.  MILSPEC Military Specification
AL1.1.103.  MILSBILLS Military Standard Billing System
AL1.1.104.  MILSCAP Military Standard Contract
Administration Procedures
AL1.1.105.  MILSTAMP Military Standard Transportation
And Movement Procedures
AL1.1.106.  MILSTRAP Military Standard Transaction
Reporting and Accounting Procedures
AL1.1.107.  MILSTRIP Military Standard Requisitioning
and Issue Procedures
AL1.1.108.  MME Military Mission Essentiality
AL1.1.109.  MRO Materiel Release Order
AL1.1.110.  MRP Maintenance Requirements Planning
AL1.1.111.  MSDS Materiel Safety Data Sheet
AL1.1.112.  NASA National Aeronautics and Space
Administration
AL1.1.113.  NATO North Atlantic Treaty Organization
AL1.1.114.  NCITS National Committee for Information
Technology Standards
AL1.1.115.  NDI Nondevelopmental Item
AL1.1.116.  NIIN National Item Identification Number
AL1.1.117.  NIMACS Nuclear Inventory Management and
Cataloging System
AL1.1.118.  NIMSR Nonconsumable Item Materiel
Support Requests
AL1.1.119.  NMC Not Mission Capable
AL1.1.120.  NOCO Nuclear Ordnance Cataloging Office
AL1.1.121.  NSN National Stock Number

AL1.1.122.  NTISSI National Telecommunications and
Information Systems Security Instruction
AL1.1.123.  NUIT National-level Unique Item Tracking
AL1.1.124.  OL Operating Level
AL1.1.125.  OMC Optical Memory Card
AL1.1.126.  O&M Operations and Maintenance
AL1.1.127.  OSD Office of the Secretary of Defense
AL1.1.128.  OST Order and Shipping Time
AL1.1.129.  OSTL Order and Shipping Time Level
AL1.1.130.  PBL Performance-Based Logistics
AL1.1.131.  PICP Physical Inventory Control Program
AL1.1.132.  PTL Production Lead Time
AL1.1.133.  PMRP Precious Metals Recovery
Program
AL1.1.134.  POD Port OF Debarkation
AL1.1.135.  POE Port OF Embarkation
AL1.1.136.  POM Program Objective Memorandum
AL1.1.137.  POW Prisoner Of War
AL1.1.138.  PR/DS Potential Reutilization and/or
Disposal Stock
AL1.1.139.  PRC Process Review Committee
AL1.1.140.  PSA Principal Staff Assistant
AL1.1.141.  PSI Product Support Integrator
AL1.1.142.  PTD Provisioning Technical Documentation
AL1.1.143.  RBS Readiness-Based Sparing
AL1.1.144.  RCL Repair Cycle Level
AL1.1.145.  RDD Required Delivery Date
AL1.1.146.  RDT&E Research, Development, Test, and Engineering
AL1.1.147.  RFID Radio Frequency Identification
AL1.1.148.  RRMS Requirement-Related Munitions Stock
AL1.1.149.  RSC Reason for Stock Category
AL1.1.150.  SDR Supply Discrepancy Report
AL1.1.151.  SICA Secondary Inventory Control Activity
AL1.1.152.  SL Safety Level
AL1.1.153.  SLES Shelf-Life Extension System
AL1.1.154.  SMCA Single Manager for Conventional
Ammunition
AL1.1.155.  SMPT School of Military Packaging
Technology

AL1.1.156.  SMR Source, Maintenance, and Recoverability
AL1.1.157.  SPR Special Program Requirement
AL1.1.158.  SSIR Supply System Inventory Report
AL1.1.159.  SSR Supply Support Request
AL1.1.160.  TAV Total Asset Visibility
AL1.1.161.  TCN Transportation Control Number
AL1.1.162.  TM Technical Manual
AL1.1.163.  TMR Total Munitions Requirements
AL1.1.164.  TRC Technical Review Committee
AL1.1.165.  U.S.C. United States Code
AL1.1.166.  UII Unique Item Identifier
AL1.1.167.  UIT Unique Item Tracking
AL1.1.168.  UITC Unique Item Tracking Committee
AL1.1.169.  UMMIPS Uniform Materiel Movement and
Issue Priority System
AL1.1.170.  UND Urgency of Need Designator
AL1.1.171.  USCG United States Coast Guard
AL1.1.172.  USSOCOM United States Special Operations
Command
AL1.1.173.  USTRANSCOM United States Transportation
Command

C1. CHAPTER 1

GUIDING PRINCIPLES

C1.1. PURPOSE

C1.1.1. This Regulation implements DoD Directive 4140.1 (reference (a)) and establishes requirements and procedures for DoD materiel managers and others who need to work within or with the DoD supply system.

C1.1.2. This Regulation provides materiel management guidance for:

C1.1.2.1. Developing materiel requirements based on customer expectations while minimizing the DoD investment in inventories;

C1.1.2.2. Selecting support providers on the basis of best value;

C1.1.2.3. Determining how best to position and deliver materiel to satisfy highly variable readiness and combat sustainment needs in a variety of unique and demanding environments; and

C1.1.2.4. Executing other supply chain functions and programs, some of which are unique to the Department.

C1.1.3. To provide for effective and efficient end-to-end materiel support, the Regulation:

C1.1.3.1. Establishes the customer as the foundation driving all materiel management decision-making;

C1.1.3.2. Promulgates best business practices in the area of materiel management; and

C1.1.3.3. Institutes procedures that meet all materiel management statutory requirements.

C1.2. DoD SUPPLY CHAIN

C1.2.1. To supply materiel and logistics services to DoD units throughout the world, the DoD Components maintain a supply chain consisting of weapon system support contractors, retail supply activities, distribution depots, transportation networks including contracted carriers, Military Service and Defense Logistics Agency (DLA) integrated materiel managers (IMMs), weapon system program offices, commercial distributors and suppliers including manufacturers, commercial and organic maintenance facilities, and other logistics activities (e.g., engineering support activities (ESAs), testing facilities, cataloging services, reutilization and marketing offices).

C1.2.2. This Regulation presents DoD logistics personnel with a process-based view of materiel management policy within a supply chain framework.  This structure underscores the fundamental changes and collaborative initiatives that are occurring to meet warfighter sustainment needs and the operational requirements of the National Military Strategy.

C1.2.3. Those needs and requirements required that the DoD Components provide supplies and services that support:

C1.2.3.1. Rapid power projection;

C1.2.3.2. Improved readiness through performance-based logistics; and

C1.2.3.3. World-class standards for customer responsiveness.  The guidance in this Regulation encourages the DoD Components to:

C1.2.3.3.1. Transform their support of weapons systems through total life-cycle management, increased partnering, and adoption of modern information technologies.

C1.2.3.3.2. Establish end-to-end processes that are focused on maximizing customer service or warfighter support.

C1.2.3.3.3. Implement contemporary business systems and practices that enable the integration of people, information, and processes.

C1.3. DoD SUPPLY CHAIN MATERIEL MANAGEMENT GOALS

C1.3.1. Policy from Directive.  According to DoD Directive 4140.1 (reference (a)), all DoD Components shall:

C1.3.1.1. Structure their materiel management to provide responsive, consistent, and reliable support to the war fighter during peacetime and war.  That support should be dictated by performance agreements with customers to the furthest extent.  For weapon system materiel, those agreements should be negotiated with weapon system users or their representatives as part of a performance-based logistics (PBL) strategy.  For other materiel, the agreements should be negotiated between support providers and customer representatives.  This structuring of support should be done within the context of total life-cycle systems management.

C1.3.1.2. Size their secondary item inventories to minimize the DoD investment while providing the inventory needed to support peacetime and war requirements.

C1.3.1.3. Consider all costs associated with materiel management, including acquisition, transportation, storage, maintenance, and disposal in making best value logistics materiel and service provider decisions central to total life-cycle systems management.

C1.3.1.4. Implement materiel management functions with commercial off-the-shelf (COTS) systems or DoD standard data systems.  This goal encompasses the implementation of continuous supply chain management capabilities, within an integrated knowledge environment.

C1.3.1.5. Maintain materiel control and visibility of the secondary inventory down to and including retail inventories.  This involves incorporating commercial and Government best business practices to continuously improve DoD supply chain processes and instill user confidence in the materiel management system.

C1.3.2. Procedures.  To satisfy the above policies, the DoD Components shall:

C1.3.2.1. Use performance-based logistics (PBL) strategies and performance agreements between war fighters and program managers and between support providers (organic and/or commercial) and customer representatives to structure supply chain processes and systems to provide required support in a flexible and timely manner during crises and joint operations.

C1.3.2.2. Focus processes on satisfying operational customer requirements at the point of need.

C1.3.2.3. Link customers directly to the source of support through the collaborative planning process.

C1.3.2.4. Balance the use of all available logistics resources to accomplish timely and quality delivery of customer-determined materiel and service requirements at the lowest cost.

C1.3.2.5. Measure total supply chain performance based on timely and cost-effective delivery of materiel and logistics services to operational customers.

C1.3.2.6. Make maximum, effective use of competitive, global commercial and organic supply chain capabilities.

C1.3.2.7. Accomplish common requirements cooperatively whenever practical.

C1.3.2.8. Implement consistent structure, content, and presentation of logistics information, particularly when supporting common interfaces among the Military Services, Defense Agencies, and international partners.

C1.3.2.9. As early as possible in the acquisition cycle of a new program, work with the acquisition program manager and product support integrator to address logistics requirements and related supply chain costs (i.e., materiel, storage, transportation, etc.) within the context of total life-cycle systems management.

C1.3.2.10. Include all logistics requirements in planning and program baselines and develop them initially without any internally or externally imposed financial constraints.

C1.3.2.11. Implement and use the concept of information stewardship (e.g., shared data).

C1.3.2.12. Provide for visibility of the quantity, condition, and location of in-storage, in-process, and intransit assets throughout the DoD supply chain and visibility of orders placed on organic and commercial sources of supply.

C1.3.2.13. Provide effective, up-to-date, training and supporting technology to logistics organizations and personnel.

C1.4. SUPPLY CHAIN PROCESSES

C1.4.1. Requirements

C1.4.1.1. The DoD Components shall use the supply chain operational reference processes of Plan, Source, Maintain/Make, Deliver, and Return as a framework for developing, improving, and conducting materiel management activities to satisfy customer support requirements developed collaboratively with the support providers.

C1.4.1.2. The DoD Components shall:

C1.4.1.2.1. Under the Plan process, conduct demand and supply planning that optimizes supply chain resources to meet established support strategies and employs, to the furthest extent, collaboration between support providers and their customers.

C1.4.1.2.2. Under the Source process, perform materiel sourcing and acquisition and manage their sourcing infrastructure applying total life-cycle support management where applicable.

C1.4.1.2.3. Under the Maintain/Make process, seek to optimize the relationships between materiel managers and commercial sources of supply and between materiel managers and activities performing production, manufacturing, repair, modification, overhaul, and testing functions at organic or private sector facilities or through public and private partnerships at those facilities.

C1.4.1.2.4. Under the Deliver process, manage orders, distribution depots and other storage locations, transportation networks, and other delivery infrastructure.

C1.4.1.2.5. Under the Return process, administer customer returns of defective materiel, excess materiel, and materiel requiring maintenance, repair, or overhaul.

C1.4.2. Procedures

C1.4.2.1. Specific requirements and procedures on the Plan process are in Chapter 2 of this Regulation.

C1.4.2.2. Specific requirements and procedures on the Source process are in Chapter 3 of this Regulation.

C1.4.2.3. Specific requirements and procedures on the Maintain/Make process are in Chapter 4 of this Regulation.

C1.4.2.4. Specific requirements and procedures on the Deliver process are in Chapter 5 of this Regulation.

C1.4.2.5. Specific requirements and procedures on the Return process are in Chapter 6 of this Regulation.

C1.4.2.6. Definitions relevant to supply chain materiel management are in Appendix 1.

C1.4.2.7. The DoD Components shall adopt and/or adapt best commercial business practices when such practices will contribute to increased supply chain performance and/or reduced total life-cycle systems cost.  Processes and technologies, such as enterprise resource planning (ERP), automated identification technology (AIT), automated planning system, material requirements planning (MRP), and balanced score card, represent business practices that are either referenced in or have potential application to the supply chain procedures presented in this Regulation.

C1.5. SUPPLY CHAIN METRICS

C1.5.1. Requirements.  To ensure efficient and effective supply chain management, the DoD Components shall use metrics to evaluate the performance and cost of their supply chain operations.

C1.5.1.1. Metrics should provide quantifiable, measurable outputs or outcomes that address all classes of supply and describe all supply chain processes or functions from acquisition through final disposition of end items and materiel.  The DoD Components should adopt metrics that:

C1.5.1.1.1. Support program performance agreements and the policy requirements in paragraph C1.1.2., above.

C1.5.1.1.2. Monitor the efficient use of DoD resources.

C1.5.1.1.3. Provide a means to assess costs versus benefits of supply chain operations.

C1.5.1.1.4. Support establishing comparison benchmarks.

C1.5.1.2. The DoD Components shall develop and maintain metrics that address these levels of supply chain operations:

C1.5.1.2.1. Enterprise level.  Enterprise metrics are cross-functional measures that describe the overall effectiveness of the supply chain.

C1.5.1.2.2. Functional level.  Functional metrics support at least one enterprise metric and measure a major function's internal performance.

C1.5.1.2.3. Program or process level.  Program or process metrics support functional metrics and are diagnostic and internal in nature.  For weapon systems with established performance agreements, program managers and the Military Services, with system users, can review sustainment strategies by utilizing program level performance metrics to compare actual performance against expected performance.

C1.5.1.3. The DoD Components should balance their metrics across customer service, cost and readiness, and sustainability performance objectives.  This approach allows the DoD Components to meet both their strategic needs and the needs of customers, and to address performance and process improvement initiatives.

C1.5.2. Procedures

C1.5.2.1. The DoD Components should develop data collection capabilities that support supply chain metrics.

C1.5.2.2. Whenever possible, the DoD Components should develop and use a flexible, real-time, on-line capability to interrogate metrics by supply source, customer, weapon system, or other supply chain support characteristics.  This capability should enable the DoD Components to:

C1.5.2.2.1. Monitor daily operations and trends in weapon system readiness support.

C1.5.2.2.2. Assess and evaluate the results of completed logistics improvements involving materiel reliability, maintainability, and/or supportability.

C1.5.2.2.3. Assess and evaluate the progress on on-going logistics improvement initiatives, such as system modernization.

C2. CHAPTER 2

PLAN

C2.1. DEMAND AND SUPPLY PLANNING

C2.1.1. Requirements

C2.1.1.1. The DoD Components shall plan for and resource all elements of the supply chain to meet customer demand by developing and establishing support strategies that effectively and efficiently provide supply chain resources to meet supply chain requirements for future time periods.  Materiel managers should collaborate with their customers or their representatives and maintenance and distribution/transportation managers to determine optimal support strategies that meet documented performance requirements.  For commercially supported items of supply, those requirements should be documented in PBL contracts with commercial suppliers.  For organically supported items of supply, those requirements should be in performance-based agreements between organic suppliers and their customers.  Required actions for organic suppliers include:

C2.1.1.1.1. Identifying, prioritizing, and aggregating customer demand.  Identification includes item classification and coding for requirements and requires collaboration with customers on their future needs.  Prioritization entails setting parameters/goals for computing inventory levels so that those levels meet documented performance requirements.  Aggregation involves accumulating and forecasting customer demand for products or services at the appropriate category, organizational level, and time interval.

C2.1.1.1.2. Balancing inventory with customer demand.  For items stocked by the DoD Components, balancing encompasses the actions needed for provisioning new materiel, for determining peacetime and wartime replenishment stockage levels, and for retaining material assets.

C2.1.1.1.3. Managing a planning infrastructure.  Beside demand and supply planning, the other supply chain processes of source, make/maintain, deliver, and return (discussed in Chapters 2 through 6, below) all require planning.  The DoD Components should provide for and manage an integrated planning infrastructure.

C2.1.1.1.4. Establishing and communicating supply chain plans.  Supply chain planning involves establishing and communicating support strategies over an appropriate time-defined (long-term, annual, monthly, weekly) planning horizon or interval to ensure effective and efficient use of all available supply-chain resources to meet supply-chain requirements.

C2.1.1.2. In performing demand and supply planning, the DoD Components should consider performance attributes of consistency, responsiveness, flexibility, cost, and asset allocation.

C2.1.1.2.1. To provide for reliable support, supply chains should pursue goals that deal with time-definite delivery and quality of order fulfillment.

C2.1.1.2.2. To ensure responsiveness, supply chains should have support goals that are affordable and meet customers' expectations.  For weapon system items, those support goals should be readiness-based.

C2.1.1.2.3. Supply chains should be designed to have flexibility equal to the volatility of customer demand and the fluctuations of supplier cycle times.

C2.1.2. Procedures

C2.1.2.1. Requirements and procedures for specific areas of demand and supply planning are provided in the remainder of this Chapter.  Requirements and procedures relevant to developing and establishing support strategies are in sections C2.4., "Item Support Goals," and C3.2., "Materiel Support Alternatives."

C2.1.2.2. To optimize their demand and supply planning, the DoD Components should strive towards totally integrated supply chains.

C2.1.2.3. To maximize supply chain productivity, supply chain members should have timely access to all applicable planning information including operating programs, customer requirements, supply chain resources, and total asset information.

C2.1.2.3.1. The IMM shall have visibility of retail supply activity assets and requirements to better utilize those assets to satisfy requirements across the supply chain.

C2.1.2.3.1.1. Retail-level activities shall make available to the IMM the asset and requirements information needed to make decisions on procurement, repair, and lateral redistribution.  (See section C5.5., "Lateral Redistribution of Assets," below.)

C2.1.2.3.1.2. A multi-echelon requirements computation process may use knowledge of wholesale and retail assets to compute requirements levels.  To support such a process, visibility of retail asset quantities (excluding assets in the hands of the ultimate user) should be made available to the requirements computation system of the managing DoD Component.

C2.1.2.3.2. The IMM shall have visibility of assets transferred to the Defense Reutilization and Marketing Service (DRMS) and shall recall serviceable centrally managed items for reutilization instead of initiating a new procurement or depot repair action.

C2.1.2.3.3. The Military Service headquarters, the major commands, and the weapon system managers shall have sufficient visibility of retail-level assets and requirements within their respective Military Services to assess the capability to support operational and contingency plans and to support weapon system readiness.

C2.1.2.4. The DoD Components should ensure that all supply chain functions and organizations understand their impact on supply and demand balancing.

C2.1.2.5. Requirements and procedures for accessing information used in demand and supply planning are in Chapter 7, "Supporting Technologies."

C2.2. PROVISIONING

C2.2.1. Requirements

C2.2.1.1. Provisioning involves the planning and acquisition of initial spares to support a new major system.

C2.2.1.1.1. Provisioning planning shall begin with program initiation and continue through the system acquisition process.  As part of that planning:

C2.2.1.1.1.1. Materiel managers shall work with program managers to ensure that item technical and logistics data relevant to end item supply support are documented and accessible to DoD and commercial materiel managers responsible for provisioning and follow-on support.  The objective of provisioning data management is timely access to all data required to identify and acquire initial support items.

C2.2.1.1.1.2. According to 10 U.S.C. 2451 (reference (b)), new items shall be cataloged (see section C8.1., below) and maximum emphasis shall be placed on reducing the variety of parts and associated documentation required by weapon systems and/or end items through provisioning screening.

C2.2.1.1.2. When the DoD Components are selected as the preferred source of supply for a new major system, they shall integrate provisioning requirements and activities with the system acquisition process through PBL agreements with program managers.  (The provisioning requirements and procedures that follow address initial provisioning or support for an end item during its initial period of service.  The requirements and procedures for follow-on provisioning or support for an already-in-service end item during a specific period of service, for example, a ship being deployed to sea, are in section C2.6., below.)

C2.2.1.1.3. Items not associated with the acquisition of a new major system may be provisioned.  Examples include newly introduced items and items associated with the modification of a system or the introduction of a new subsystem or component.  In such cases, materiel managers, together with user representatives, shall set support goals according to section C2.4., below, and evaluate various supply support strategies (e.g., organic and contractor; etc.) according to section C3.2., below.  (Special requirements and procedures for introducing new clothing and textile items are in section C8.2., below.)

C2.2.1.2. Where feasible, Readiness-Based Sparing (RBS) - an inventory requirements determination methodology that produces an inventory investment solution that meets end item performance requirements at minimum cost - shall be used to determine organic weapon system support provisioning requirements.  When it is not feasible to use RBS models and processes, demand-based requirements determination methodologies may be used.  Appendix 2 lists limitations on using demand-based methodologies for provisioning.

C2.2.1.3. During provisioning, demand and supply planning shall consider end item population build-ups.  Procurements of support items for DoD stockage:

C2.2.1.3.1. Shall be phased based on weapon system and/or end item program development and delivery schedules.

C2.2.1.3.2. Should not be made until a lead time before the fielding of an organically supported weapon system or end item.

C2.2.1.4. To measure the effectiveness of provisioning performance, tools, and process improvement initiatives, provisioning performance measures (quality standards) shall be established.

C2.2.2. Procedures

C2.2.2.1. Provisioning Data Management.  According to the requirements in subparagraph C2.2.1.1.1.1., above, and the item identification and management data procedures in DoD 4100.38, "Department of Defense Provisioning and Other Procurement Screening Manual" (reference (c)), the following apply:

C2.2.2.1.1. Materiel managers shall provide program managers with applicable provisioning data requirements, to include in end item acquisition solicitation documents.  (Appendix 2 provides additional procedures that deal with item data requirements.)

C2.2.2.1.1.1. Provisioning data requirements are defined as Provisioning Technical Documentation (PTD) and Engineering Data for Provisioning (EDFP) according to MIL-PRF-49506, "Logistics Management Information" (reference (d)) and MIL-HDBK-502, "Acquisition Logistics" (reference (e)).

C2.2.2.1.1.2. Materiel managers shall verify that the PTD and EDFP are sufficient to support reprocuring required support items, if necessary.  Data deficiencies should be identified and corrected before the expiration of end item contractual obligations.

C2.2.2.1.2. During provisioning, materiel managers shall ensure that provisioned support items are coded and reviewed for shelf-life considerations, according to the DoD Shelf-Life Item Management Program (see paragraph C5.7.5., below), the procedures of DoD 4140.27-M (reference (f)), and the codes identified in DoD 4100.38-M (reference (c)).  Emphasis should be on identifying and using non-hazardous items and longer shelf-life items, where possible.

C2.2.2.1.3. During provisioning, materiel managers shall ensure the cognizant ESA performs a criticality determination for each new item.  Aviation items found to have critical safety characteristics and/or processes shall be coded as such per section C8.5., below.

C2.2.2.2. Provisioning Screening

C2.2.2.2.1. Manufacturer's part numbers and other reference number data shall be screened during the provisioning process, according to DoD 4100.38-M (reference (c)) to prevent unnecessary or duplicate items from entering the supply system.

C2.2.2.2.2. When provisioning screening reveals that a support item or an acceptable substitute item is already an established item (that is, already assigned a National Stock Number (NSN)), the requirement for the item shall be filled from existing stocks or through normal replenishment procurement.  This additional requirement must be coordinated with the IMM.

C2.2.2.2.3. The DoD Components shall facilitate electronic access to Federal Catalog System files by contractors who are under current weapon system development or production contracts.

C2.2.2.2.4. The DoD Components may use the Defense Logistics Information Service (DLIS) to provide additional screening support and to support the entry of new state-of-the-art technology into the supply system by developing new cataloging nomenclature and descriptive methods.

C2.2.2.3. Transition Support

C2.2.2.3.1. In the event that a transition from initial contractor support to organic supply support is required, it should be planned as follows:

C2.2.2.3.1.1. The transition schedule should be based on design stability and supply support concept compatibility with maintenance concepts and other logistics support elements.

C2.2.2.3.1.2. Contractor to organic supply support transition and schedules should be consistent with the system/equipment logistics support plan.  Phased support approaches are encouraged, allowing for the cost-effective transition to organic supply support.

C2.2.2.3.2. In the event that a contractor is selected to provide supply support for a weapon system, including supply support for established items, the transition of some or all of the support for those items shall consider existing organic assets.

C2.2.2.4. Provisioning Requirements Determination

C2.2.2.4.1. For cost-effective weapon system support and to satisfy readiness-based performance agreements, the DoD Components, when selected as the preferred source of support, should use a RBS requirements determination process to compute provisioning requirements for spare and repair parts.

C2.2.2.4.1.1. RBS processes require establishing an optimum range and quantity of spare and repair parts at all stockage and user locations to meet approved, quantifiable weapon system readiness, operational availability, or fully mission capable rates.

C2.2.2.4.1.2. Provisioning RBS requirements determination models shall be similar to the RBS requirements determination models used for replenishment so that supply planning is consistent throughout the life cycle of the weapon system.

C2.2.2.4.1.3. Procedural control over RBS models and processes shall be retained at the DoD Component logistics headquarters.

C2.2.2.4.2. Appendix 2 addresses using a demand-based process when a RBS process does not apply or is not feasible.

C2.2.2.5. Procuring Provisioned Support Items

C2.2.2.5.1. When selected as the preferred source of supply, procuring DoD Components should have the capability to create interactive support management plans that enable incremental scheduling and implementation of support, based on configuration indenture and delivery of weapon systems and equipment.

C2.2.2.5.1.1. Provisioning retail procurement levels should be developed based on end item density factors and site activation schedules.

C2.2.2.5.1.2. Provisioning wholesale procurement levels should be developed based on a time-weighted average month's program, which is the average number of end items supported each month.

C2.2.2.5.2. The procuring DoD Component may authorize contractors, in advance of formal procurement, to release limited quantities of long lead time support items (those items, which due to their complexity of design, complicated manufacturing processes, or limited production, require early ordering to ensure timely delivery).

C2.2.2.5.3. Incremental release of procurement orders for provisioned support items should be executed so that the obligation of funds is made on the basis of the procurement lead time required to ensure that the support items arrive for the scheduled initial outfitting support dates.  When it is found to be uneconomical to release orders incrementally, this method may be waived by the procuring DoD Component.

C2.2.2.5.4. DoD materiel managers, with program managers and product support integrators selected by program managers, shall arrange for acquiring initial spares, as well as replenishing spares, as early in the production process as possible.

C2.2.2.6. Provisioning Performance Measures

C2.2.2.6.1. When selected as the preferred source of supply, the DoD Components shall develop and maintain provisioning performance measures.

C2.2.2.6.2. Measurement criteria should include the following customer-oriented and efficiency-oriented measurement goals:

C2.2.2.6.2.1. Assessment of provisioning contribution to achievement of readiness or other PBL objectives laid out in program performance agreements.

C2.2.2.6.2.2. Accuracy of provisioning buys.

C2.2.2.6.2.3. Ability to meet provisioning milestones.

C2.2.2.6.2.4. Accuracy of provisioning documentation.

C2.2.2.6.2.5. Inventory efficiency, as measured by minimized inactive inventories.

C2.3. ITEM CLASSIFICATION AND CODING FOR STOCKAGE REQUIREMENTS

C2.3.1. Requirements

C2.3.1.1. The DoD Components shall review their initial classification of items as "consumable," "field-level reparable," or "depot-level reparable" and their Source, Maintenance, and Recoverability (SMR) code assignments to ensure that the classification of an item continues to provide the most economical support throughout the life of the item.

C2.3.1.2. The purpose of Military Mission Essentiality (MME) coding is to provide for a complete linkage between secondary items with NSNs and the higher assemblies and weapon systems that they are part of.  Accordingly:

C2.3.1.2.1. In generating weapon system application files, the Military Services should ensure that the essentiality of component items are coded and those codes are made accessible to materiel managers.

C2.3.1.2.2. The DoD Components shall allocate management resources and vary the intensity of management for each item based on MME coding.

C2.3.1.3. An item new to the DoD supply system shall be coded initially at wholesale and retail levels of supply as stocked (either with readiness-based, demand-based, limited-demand, or non-demand-based requirements) or non-stocked.  That initial coding may change over time if a different support alternative is selected for an item due to economics or readiness considerations.  (See section C2.6., below.)

C2.3.2. Procedures

C2.3.2.1. The DoD Components shall assign the uniform SMR codes prescribed by AR 700-82/OPNAVINST 4410.2A/MCO 4400.120.1   The Secretary of the Army shall be responsible for coordinating, publishing, and maintaining joint guidance.

C2.3.2.1.1. For end items used by multiple Military Services, coding decisions shall be coordinated among the users to promote maximum inter-Service maintenance and supply support.

C2.3.2.1.2. The review of SMR code assignments should occur for reparable items when their repair costs are greater than 65 percent of their replacement prices and for consumable items when they have a high annual demand value and experience significant field repair.

________________
1 Joint issuance AR 700-82/OPNAVINST 4410.2A/MCO 4400.12, "Joint Regulation Governing the Use and Application of Uniform Source Maintenance and Recoverability Codes," 28 February 2003, can be found at website http://www.army.mil/usapa/epubs/pdf/r700_82.pdf.

C2.3.2.2. The Military Services should ensure that MME codes are assigned and maintained according to Appendix 4.  They may tailor their MME coding to meet their operational needs as long as such coding is not inconsistent with Appendix 4.  For inter-DoD Component data exchange of item essentiality data, the item essentiality coding in Appendix 4 shall be used.

C2.3.2.3. The using DoD Component shall include the current MME code on supply support requests to the other DoD Components.

C2.3.2.4. If weapon system application files, which are described in section C7.4., below, indicate that a secondary item has multiple applications, it normally shall be assigned the highest applicable essentiality code.  A secondary item may have a different essentiality code for each of its end item applications.

C2.3.2.5. The DoD Components shall review and validate the assignment of essentiality codes periodically to ensure that they reflect the current status of the items.

C2.3.2.6. The using DoD Component shall provide application data to DoD IMMs in a timely fashion or update codes previously provided when criterion change or when items or weapon systems become obsolete.  Rejected transactions transmitting application data shall be researched, corrected, and resubmitted on a timely basis.

C2.3.2.7. The DoD Components shall annually reconcile the Service weapon system application file and the DLA Weapon System Support Program database.

C2.3.2.8. To identify how items are being managed at retail supply activities, the DoD Components shall use the reasons for stockage categories delineated in Appendix 3.

C2.4. ITEM SUPPORT GOALS

C2.4.1. Requirements

C2.4.1.1. Item support goals shall be established for all DoD secondary items to ensure that the supply system optimally uses available resources to meet weapon system and equipment performance objectives and personnel readiness objectives at the least cost.  Establishing these goals is required regardless of the source or method of support, e.g., organic, inter-governmental, private contractor, or partnership.

C2.4.1.2. Item support goals should be based on the performance agreements negotiated with customers or, where no agreement exists, on the enterprise metrics that the DoD Components have adopted for supply support.

C2.4.1.3. The objective in establishing item support goals is to provide logistics managers with quantitative targets that they may use to improve supply planning, asset allocation, and the contribution of limited inventories and limited procurement, repair, and distribution resources to better weapon system and personnel readiness capabilities.

C2.4.1.3.1. Item support goals shall be used to assess the performance of the DoD supply chain and as a basis for evaluating the effectiveness and benefits of process improvements.

C2.4.1.3.2. The DoD Components shall implement support goal calculation rules that ensure consistency of measurement and oversight across the Department of Defense.

C2.4.1.3.3. Each DoD Component is responsible for setting target support goals that reflect both peacetime and wartime needs.  In setting support goals, the process should be synchronized with and linked to the programming and budgeting process to ensure consistency with management decisions as to priorities and the resources committed against those priorities.

C2.4.1.3.4. To permit cost tradeoffs, the DoD Components should quantify support goals that apply to item populations (i.e., organizational, commodity, equipment, or weapon system populations).  The DoD Components may have individual item goals when they are required to meet specific customer requirements or when they are generated by a process that considers cost tradeoffs in meeting a population readiness or other established support goal.

C2.4.1.3.5. Timely receipt of items ordered by customers of the supply system typifies responsive, consistent, and reliable support and contributes to the overall confidence of customers in the DoD supply system.  All organizations in the supply chain should recognize and emphasize the importance of time in establishing item support goals for their respective logistics functions.

C2.4.2. Procedures

C2.4.2.1. In setting support goals that encompass the total responsiveness of the supply system, the DoD Components shall consider both the performance they can expect from their inventories and the time to deliver materiel in response to a customer order.

C2.4.2.2. For secondary items managed by DoD materiel management activities (e.g., wholesale inventory control points (ICPs) and retail supply activities), those acti