1. DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Change in Timing to Follow-up for Delinquent Materiel Receipt Acknowledgement (MRA), and for MRA Submission, Based on Time Definite Delivery Standards (Draft PDC 1114) Supply Process Review Committee Meeting 15-2 June 24, 2015 Heidi Daverede Defense Logistics Management Standards Office www.dla.mil/j-6/dlmso

2. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 2 DLA Request –Allow an automated Follow-Up for Delinquent Materiel Receipt Acknowledgment (MRA) transactions at a number of days beyond shipment more aligned with the Time Definite Delivery (TDD) standards DODM 4140.01, Volume 8 DODI 4160.61 DOD Time Standards for Order Process and Delivery –Provide for MRA submission timeframes associated to TDD. Rationale: –MRA serves as evidential matter supporting Audit Readiness –MRA supports DLA DVD payments on contracts and associated customer billing –MRAs provide proof to auditors that the DLA ICP appropriately paid vendors and billed customers for DVD contract shipments –DODM 4140.01, Volume 5, item accountability and control policy for materiel in- transit, states: “The owning DoD Component directing materiel into an in-transit status will retain accountability within their logistics records for that materiel (to include resolution of shipping and other discrepancies) until the consignee or receiving activity formally acknowledges receipt.” Background

3. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 3 Reporting Activity Initial MRA submission –Provide to the ICP within 5 calendar days of receipt of materiel –Byproduct of receipt process ICP Follow-Up (No MRA Received) –CONUS – Send after 45 days from the date of shipment »Follow-up for Delinquent MRA transaction (DLMS 527R with 1/BR02/020 Transaction Type Code TG/legacy Document Identifier Code (DIC) DRF) »DLA typically accrues interest penalties for nonpayment from vendors after 30 days of the vendor shipping materiel direct to a customer –OCONUS – Send … Current metrics per DLA –Receiving less than 70 percent of MRAs for DVD materiel within 30 days –Receiving less than 70 percent of Class II, IV, & IX MRAs up to five months after shipment References –DLM 4000.25, DLMS, Volume 2, Chapter 10 –DLM 4000.25-2, MILSTRAP, Chapter 6 Existing MRA Requirements

4. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 4 TDD Transportation Categories: –TC 1 –Priority Designator (PD) 01 through PD 03 regardless of RDD –TC 2 – PD 04 through 15 in conjunction with RDDs 444, 555, 777, 999, N__, E__, Julian date 8 days or less (CONUS), or Julian date within 21 days (OCONUS) –TC 3 – PD 04 through 15 with RDDs that are blank, Julian date greater than 8 days (CONUS), or Julian date greater than 21 days (OCONUS). (In general practice, other transactions that not meeting the TC1 or TC2 will go under TC3 (e.g. when the first position of the RDD is S or X in rp 62). MILSTRIP transaction edits blank out the RDD field where the specific RDD conditions identified in Table C4.T4 of Reference 3.d is not met. ) Transportation Categories

5. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE TDD Transportation Categories Transportation CategoryBusiness Rules TC1Priority Designator (PD) 01 through PD 03 RDD - any TC2PD 04 through 15 RDD - 444, 555, 777, 999, N__, E__, Julian date 8 days or less (CONUS), or Julian date within 21 days (OCONUS) TC3PD 04 through 15 RDD - Blank, Julian date greater than 8 days (CONUS), or Julian date greater than 21 days (OCONUS). Notes: 1.In general practice, transactions not meeting the TC1 or TC2 will go under TC3 (e.g. when the first position of the RDD is S or X in rp 62). 2.MILSTRIP C4.T4 transaction edits blank out the RDD field where the specific RDD conditions are not met.

6. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 6 Based on the ship-to location Negotiated by CoCOM –AFRICOM –CENTCOM –NORTHCOM (OCONUS) –EUCOM –PACOM –SOUTHCOM –NORTHCOM (CONUS) May be further divided into different regional standards within a COCOM TDD Standards

7. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 7 Reviewed TDD Standard for each COCOM/Region OCONUS –Added the Transportation (D) and Theatre (E) Segments –Arrayed values by transportation category within COCOM/Region –NORTHCOM (includes non-CONUS activities) –For Navy afloat vessels, the TDD was increased by an afloat additive AFRICOM – 49 CENTCOM – 16 EUCOM – 19 PACOM – 31 –Computed the average, high and low for all of OCONUS by TC –Used high value to assess impact by COCOM and TC CONUS –Identified the Transportation (D) segment –For the theatre (E) segment, used the DODM 4140.01 default of 5 days for receipt take-up vice TDD, since policy authorizes 5 days –Added the Transportation (D) and Theatre (E) Segments –Arrayed values by transportation category Deriving MRA Follow-Up Timeframes Based on TDD

8. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 8

9. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 9 MRA Follow-Up Timeframe Based on TDD

10. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 10 CONUS (NORTHCOM) TC1 – 7, TC2 – 9, TC3 – 12 Narrow time difference for the three transportation categories Allow three days for processing a non-receipt MRA Proposal MRA Reporting timeframe – 12 days Follow-up for Delinquent MRA timeframe – 15 days OCONUS (including Navy Afloat) To simplify approach, chose time standard for all of OCONUS, rather than by individual COCOM Narrow time differences for TC1 and TC2 Allow four days for processing a non-receipt MRA TC1 – 15, TC2 – 29, TC3 – 76 Proposal MRA Reporting timeframe – TC1/TC2 = 29 days; TC3 = 76 days Follow-up for Delinquent MRA timeframe – TC1/TC2 = 33 days; TC3 = 80 days MRA Follow-Up Timeframe Based on TDD

11. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 11 Discrepancy Code H Materiel still in transit Use in MRA Reply to Follow-Up Use when research indicates that materiel is still in transit Reporting activity may send up to six MRA follow-up transactions based on proposed timeframes Navy Afloat ADC 474 procedures still apply for use of Discrepancy Code G (Nonreceipt due to extended transit time). Materiel is being held at a Navy Local Logistics Support Center or Materiel Processing Center. Use Discrepancy Code H if research indicates materiel is still in transit and has not arrived at either the unit or the MPC. New MRA Discrepancy Code