1. Logistics Orientation
4/25/2018
Logistics Orientation
9/2/2015
Lesson #5011
5 January 2017 20

2. Security Assistance Logistics Policy and Procedures
Security Assistance Management Manual (SAMM) DoD M, C6 & C7.
Defense Transportation Regulation, Vol. II, Cargo Movement (DoD R), app. E. Security Cooperation, FMS and Pseudo FMS Shipments
Defense Logistics Management Standards (DoD M), Vol II, C17, Reporting of Supply Discrepancies.

3. Case Execution Freight Forwarder Implementing Agency (IA) Bandaria
Procurement
Implementing
Agency
(IA)
DoD Resources
Services
Training
Bandaria
as required
as required
Freight
Forwarder

4. Total Logistics Support
Initial Support
Follow-on Support
Spares/
Repair
Parts
Technical
Assistance
System
Technical Assistance
Publications
Training
Training
Publications
Support
Equipment
Munitions
Spares
Support Equipment
Maintenance
Modifications
Green Book pp through 10-20

5. Letter of Request (LOR Checklist)
General Info / Special Considerations
Purchaser
Related purchases / MOU or MOA
Commercial negotiations
Transparency / special reports
Interoperability
Acceptance time frame
International solicitation
Major Item Considerations
Quantity
Item identification / description
Intended end use
Model / configuration
Desired delivery date
Acquisition Considerations
Pre-negotiations
Sole source
Offsets
Financial Considerations
Funding source / availability
Payment Schedule/Initial Deposit
Financial Waivers
DOD or U.S. contractor
Training program concept
Services Considerations
Description / type of service
Period of performance / location
DOD or U.S. contractor
Case/program reviews
Training Considerations
Type / level of training
Number / skill level of students
Proposed location and dates
Training program concept
Support Considerations
Operations Concept
Maintenance Concept
Supply Concept
Initial Spares
Support Equipment
Facilities / Site Survey
Publications
Warranties
Follow-on Support
Delivery Considerations
Freight forwarder
Pilot pickup
DTS Port of Debarkation (POD)
Air or surface movement
Total
Package
Approach
Full-Spectrum
Capability
Green Book 5-4

6. Weapon system configuration Weapon system deployment
Definitization
Weapon system configuration
Weapon system deployment
Location and use of repair facilities
Supply and transportation time from U.S.
Initial support period
Green Book pp through 10-19

7. Primary & Secondary Item Management
Primary Items
Secondary Items
This chart illustrates how major end items (Primary Items) are managed differently than repairable or consumable items (Secondary Items). Primary items are managed exclusively by the military services. The pie chart on the left illustrates the approximate total volume of major materiel that each MILDEP manages. Percentages aren’t shown because we don’t have hard numbers, and they change as each MILDEP’s materiel requirements are adjusted.
The pie chart on the right illustrates that DLA manages about 93 percent of all secondary and consumable items in the DoD. The remaining 7 percent is managed by Army, Navy, Air Force, Marine Corps and GSA. The point is that the amount of secondary items managed by the services is extremely small. Yet these small quantities of secondary items may be critical to the performance of the primary items. These unique service-managed items are the basis of Cooperative Logistics Supply Support Arrangements (CLSSA).
Green Book pp and 10-8

8. DoD Acquisition Relationships
System/ Program
Offices
System/ Program
Managers
Inventory
Control
Points
Item
Managers

9. Program Management Functions
The Program Manager is responsible for the weapon system acquisition and day-to-day coordination of all aspects of the program, including
Development of management strategy
Long range planning, programming, and budgeting data
Coordinating the acquisition plan
Monitoring program performance
Effective contractor oversight
Green Book pp. 9-3 through 9-4

10. Item Management Functions
The Item Manager (IM) is responsible for inventory levels and keeping materiel on the shelf for issue
The IM coordinates with contractor operated and government operated repair depots for their primary and secondary equipment
In DLA, these duties are divided between supply planners or demand planners
Green Book page 10-2

11. International Logistics Control Organization/Office (ILCO)
US Army Security Assistance Command (USASAC)-New Cumberland, PA
Air Force Security Assistance & Cooperation Directorate (AFSAC), Wright-Patterson AFB, OH
NAVSUP Weapon Systems Support- International Programs (WSS-N52), Philadelphia, PA
Green Book pp through 10-7

12. Role of MILDEP Inventory Control Points (ICPs)
Establish prices and determine availability
Inventory management
Procure material
Identify authorized users and consumption levels
Perform or arrange depot-level maintenance
Green Book pp through 10-5

13. Blanket Order & CLSSA cases
MILSTRIP Requisition
FMS
Customer
Implementing Agency
Blanket Order & CLSSA cases
Defined Order cases
ILCOs
Army
Item Manager
Navy
Item Manager
Air Force
Item Manager
DLA
Supply Centers
Green Book pp.10-9 through 10-10

14. Supply Priorities
4/25/2018
International customers assign a supply priority to each requisition based upon their urgency of need and the force activity designator (FAD) assigned to their country by the JCS
FAD is assigned based on political/military relationship between USG and international partner
The supply priority enables the customer to compete equally with US forces for the same supply items
Deep dive.

15. FOLLOW-ON SUPPORT PROGRAMS

16. Follow-On Support Cases
Defined Order
Blanket Order
Cooperative Logistics Supply Support Arrangement (CLSSA)
Foreign Military Sales Order (FMSO) I
Foreign Military Sales Order (FMSO) II
Green Book pp through 10-23

17. Cooperative Logistics Supply Support Arrangement (CLSSA) Principles
4/25/2018
Customer purchases equity in DoD supply system
Used to support active, standard systems also used by DoD
Excludes ammunition, end items, bulk fuel, commercial equipment
Resupplies an in-country supply distribution system
Support equal to U.S. units with same supply priority
Green Book pages through 10-23

18. Allocation of Resources
Defined Order &
Blanket Order
Requisitions
(All Requisitions)
CLSSA Requisitions
Priority 9-15
Priority 2-8
Reorder
Point
BACK ORDER
Safety
Level

19. Materiel Return Concepts
Repair & Return
Defined Order or Blanket Order case
Same item returned
Actual repair cost
Offered by all Services
Repair & Replace (AF), Reparable Item Replacement Option (N)
CLSSA or Blanket Order case
Like item returned
Average repair cost
Not offered by Army or USMC
SAMM C6.4.8, Green Book pp through 10-28

20. NON-STANDARD SUPPORT

21. Non-Standard System 34

22. Reasons for Non-Standard Support
Older system: System is obsolete
Item no longer in production
Industry is not structured to support aging equipment; order quantities do not support production line
Business model supports development of new systems and high volume
Item not actively managed by DoD
May have at one time been managed by DoD, but system is no longer in use by U.S. forces
Unique system development: Country has only model developed; specifically developed for that country
Green Book pp through 10-26

23. Nonstandard Item Support
Nonstandard Items - Contractor Supported
PROS (Parts & Repair Ordering System): used by Air Force, Navy, and Army; provides nonstandard spares and maintenance support
Nonstandard Items - Service Supported
SNAP (Simplified Nonstandard Acquisition Process): used by Army; provides nonstandard support for primarily land systems and communications equipment and UH-1 helicopters
SAMM C6.4.4, Green book page 10-26

24. Worldwide Warehouse Redistribution Services (WWRS)
Tri-Service program designed to
Reduce FMS customers’ excess inventories of secondary and support items (Non-SME)
Provide access to materiel at reduced cost
Reduce lead time through redistribution of assets instead of new procurement
Enable sellers to purchase needed FMS assets with the proceeds

25. WWRS Access
Green Book page 10-32

26. Worldwide Warehouse Redistribution Services (WWRS)
Virtual warehouse on the Internet
Open to all FMS customers
Seller establishes price
8.5% fee based on extended value or $200, whichever is greater
Fee is capped at $40,000
Requisition against blanket order case
Original source of materiel must be through FMS

27. Excess Defense Articles (EDA)
All EDA must be approved by DoS
Regardless of source of material or source of funding
EDA transfers valued at $7M or more, or containing SME of any value, must be notified to Congress
Notification based on original acquisition value
Must identify estimated cost of transportation
Waived transportation costs for grant EDA must be absorbed by the transferring agency
SAMM C11.3, Green Book pp through 10-30

28. Service-Owned EDA Green Book page 10-28 through 10-30
Primarily major items
Military service retains ownership
Items may be SME and MDE
Items should be in operating condition
General rule: “As is - Where is”
No transportation or supporting equipment/services included
FMS customer can get upgrades/repairs on FMS case prior to delivery at additional cost
Green Book page through 10-30

29. DLA-Managed EDA
DLA Disposition Services - primarily support items, vehicles, non-SME
Military services transfer ownership to DLA
Items may be in any condition
“As is - Where is”
No transportation or supporting equipment/services included
No upgrades or repairs available
Green Book pp through 10-30

30. Transportation of FMS Materiel
4/25/2018
Transportation of FMS Materiel 20

31. Definitions(1)
Shipper: The DoD depot (MILDEP, Defense Logistics Agency (DLA), Defense Contract Management Agency (DCMA), or commercial contractor or suppliers under DoD contract
Carrier: The trucking company, rail company or barge that moves the material from the shipper to the port, to the freight forwarder, or to the final destination under DTS or freight forwarder contract
Freight Forwarder: The commercial import/export company hired by the FMS customer to arrange transportation of material to, from or within the US
Green Book pp and 11-2

32. Definitions(2)
Port of Embarkation (POE): The air or sea port from which material is shipped overseas, and where US Customs is cleared. Also referred to as the port of exit
Port of Debarkation (POD): The air or sea port at which FMS material is offloaded for pickup by the customer (DTC 9) or scheduled for onward movement (DTC 7). Also referred to as the port of discharge. This location may be in a third country
Consignee: The person or organization designated to receive the material at the final destination
Note that these definitions are from a perspective of outbound shipments originating in the US. If this were returning material, the customer’s country would be the POE and the US port would be the POD.
Green Book pp and 11-2

33. FMS Materiel Movement (Outbound)
4/25/2018
DEPOT (Military Shipper)
FREIGHT
FORWARDER
PURCHASER
CONTRACTOR (Commercial Shipper)
DTS military or
commercial carrier
Customer military or
commercial carrier

34. FMS Delivery Term Codes (DTCs) (Outbound initial shipments)
POE
Commercial
ILCO 5
Military 8
ICP 4 5
Origin
Freight Forwarder 2
Staging
POD 9
Documented on applicable LOA Line item’s Block #7
In FMS, title normally transfers at the point of origin per LOA T&C 5.1 7
Green Book pp through 11-25

35. Defense Transportation System (DTS)
DTS is any transportation that is contracted for or controlled by DoD
All DTS LOA case transportation is paid by the FMS customer or the USG (e.g. FMF or BPC) via
Separate transportation line item(s) on the LOA
Included in LOA Line Item Unit and Total Price
SAMM C7.6, Green Book pp through and 11-4

36. Defense Transportation System (DTS)
United States Transportation Command (USTRANSCOM) oversees DTS.
Military Sealift Command (MSC) controls Navy ships and commercial and private ships under DoD contract
Air Mobility Command (AMC) coordinates with military air bases, commercial airports, Air Force aircraft and commercial aircraft under DoD contract (e.g. SAAM and Channel Flights)
Surface Deployment and Distribution Command (SDDC) controls sea ports, ground transportation, including rail, and coordinates with military and commercial shippers
Green Book pp through and 11-4

37. FMS Materiel Movement Responsibilities
Normally three parties involved:
United States Government (USG)
Purchasing country
Freight Forwarder designated by purchaser
Each has specific responsibilities
Green Book page 11-13

38. The U.S. Government
Initiates shipments to Freight Forwarders or arranges DTS transportation
Validates export value on DSP-94
Packs, crates, and HAZMAT certifies material for overseas shipment
Maintains proof of shipment
Provides technical assistance and guidance to country representatives/Freight Forwarders through military department liaison activities
Develops a transportation plan for shipments of classified or sensitive material
Ship-to Address – typically a US destination though which material will transit (such as FF, staging location, or consolidation point)
Shipping Activity must ensure info on shipping label/documentation includes price/value of shipment, transportation priority, description of item, FMS case identifier, MILSTRIP DOC NR, and SUPP Address – FF can’t obtain customs clearance or identify final destination without it
Only the value of material, TDPs, and maintenance services above the line are identified as exportable value (excludes services, surcharges)
Shipping Activity sends out NOAs
IA’s ILCO certifies value of export and lodges DSP-94 with primary CONUS POE
Shipper’s export declaration is filed electronically at US port using Automated Export System (AES) – DLA is shipper for depot stock; DCMA does this for procurement items moving entirely thru DTS; FF does this for shipments made via the FF; IA does it for documents and digital media
Green Book pp through 11-18

39. The Purchasing Country
Obtains import/export documents (can be delegated to Freight Forwarder)
Must respond to Notices of Availability
Should obtain insurance
Ensures addresses are current in the Military Assistance Program Address Directory (MAPAD)
Ensures prompt payment of transportation charges
Provides Freight Forwarder with copy of LOA
See DISCS publication Foreign Purchaser Guide to Freight Forwarder Selection for information on freight forwarder selection options at
SAMM C7, Green Book pp through 11-19

40. The Freight Forwarder (1)
Must be registered with Department of State to handle ITAR-controlled material
Makes onward transportation arrangements:
Obtains import/export documents
Clears Customs in US; can arrange for customs clearance in purchaser’s country
Arranges for pilot pickups at DoD terminals (surface and air)
Must be capable of receiving, storing, consolidating, moving, documenting and reporting shipments
Green Book pp through 11-20

41. The Freight Forwarder (2)
Initiates claims against the carrier, if necessary
Must be cleared by Defense Security Services to handle classified materiel
Green Book pp through 11-20

42. FMS Transportation Policy
Notice of Availability (NOA) required for:
Classified shipments (either by DD or by other formal written notification)
Government-to-government basis
Sensitive, hazardous, dangerous cargo shipments on DTC 4, 5, or 8
Oversized shipments to Freight Forwarder (10,000 lbs or greater)
NOAs apply when using DTC 4, 5, 8, B, C, E, or H
and to all classified items regardless of DTC
SAMM C7.11, DTR Part II, Green Book page 11-12

43. Transportation Plans
4/25/2018
Requirements: For classified materiel and shipments of sensitive Arms, Ammunition & Explosives (AA&E).
Preparation: The DoD FMS case implementing agency is responsible, in coordination with the recipient foreign government.
Approval: The approval of the Transportation Plan is the responsibility of the responsible DoD security officials supporting the case manager (per the SAMM), and the recipient foreign government.
Transportation plans are required for ALL classified shipments and ALL sensitive AA&E shipments, regardless of how far DTS is involved, if at all.
For FMS sales, it is the FMS implementing agency’s security officials and the weapons system program managers who are responsible.
The basic requirements for a completed and approved TP prior to the projected delivery date, as well as responsibilities, should be placed in the LOA – and in the contract, when a contractor is to be involved.
The transfer is a two-party transaction; therefore, the TP must be prepared in coordination with the purchasing government.
Even if delivery is to take place in the United States, the implementing agency still must ensure that secure arrangements have been made for shipment to the final destination the consignment contains U.S. classified material which is also used by U.S. forces and other allies, and thus U.S. authorities have a responsibility to ensure that the material is properly secured during transfer.
The FMS implementing agency has the authority to delay a shipment if the TP has not been properly prepared prior to scheduled delivery.

44. Transportation - BPC (“Pseudo LOA”) Material Movement Rules and Procedures

45. Differences Between FMS LOAs and BPC (“Pseudo”) LOAs
Foreign government accepts LOA
Yes No
Funding
Obligations can be placed as long as money is on the case
Obligations must be placed by the end of the fiscal year appropriated, or FY+1*
LOA terms & conditions apply
No. (Sections 2.2 – 2.4 are covered by a FAA 505 agreement.)
Title transfer
At origin; at initial shipment
At destination upon physical acceptance by customer from SCO
Transportation
Customer arranged or DTS
DTS only
Assumption of liability (risk) until title transfer
FMS Customer
USG
Country/program Identifier
Alpha-Alpha
Alpha-Numeric
LOA nickname
Weapon system or program
Public Law authority
References
SAMM C.5 – C.7 & policy letters
SAMM C.15 & policy letters
Foreign government accepts materiel in writing
Yes, per COCOM policy

46. BPC LOA Materiel Movement
4/25/2018
SCO/Embassy POD
DEPOT
DoD Consolidation Point or DTS Port
Benefitting Country
CONTRACTOR
DTS military or commercial
Green Book p

47. Discrepancy Reports 62

48. Supply Discrepancy Report (SDR)
SF364, Supply Discrepancy Report (SDR)
Catch-all document
Filed by the FMS customer
Used to report virtually any problem (e.g. packing, shipping, billing, quality, quantity, product expiration, incorrect item receipt, incomplete services)
DoD M, Vol. 2, C.17

49. Claim must be submitted within one year of title transfer!
FMS Criteria: Time
4/25/2018
Letter of Offer
and Acceptance
“Any claim (except for
non-shipment/ non-receipt of
entire lot) received after 1 year
from passage of title to article or
scheduled performance of service
are disallowed unless the USG
determines that circumstances
involving latent defects justify
consideration. (LOA para 5.4)”
Claim must be submitted within one year of title transfer!
SAMM C 65

50. FMS Criteria: Value Letter of Offer and Acceptance
4/25/2018
Letter of Offer
and Acceptance
“DoD will not accept claims related
to items of $200 or less for
overages, shortages, damages, non-
shipment, or non-performance.”
(LOA para 5.4)
Claim must have a value of at least $200, including transportation and PC&H!
DSCA Policy details reimbursement computation based on material source and delivery method
SAMM C 65

51. FMS Criteria: Time
Mandatory LOA note when shipment consolidation is involved:
“Supplemental to LOA Standard Terms and Conditions paragraph 5.4., if the U.S. Government determines that delivery was delayed more than 90 days following passage of title due to shipment consolidation, the date of the shipment from the consolidation location may be used as the start point in determining the one-year period for claim eligibility only.”
SAMM C.5.F4

52. General Discrepancy Rules
Whenever possible, customers should inspect equipment for accuracy and functionality before placing it in storage
Claims must be for at least $200 including PCH&T, submitted within one year of initial shipment, to the ILCO.
Approved SDRs usually result in a cost reimbursement, not a replacement item
Misdirected or unordered shipments of classified or sensitive end items or components must be reported to the ILCO within 24 hours of discovery regardless of value
Appeals must be filed within 45 days of SDR denial

53. Points to Remember
4/25/2018
The probability is high that any end item or major component requested on an LOR is not yet built.
DoD acquisition priorities focus on US forces first, especially in wartime.
Any nonstandard configuration complicates acquisition and delays delivery.
DoD has limited transportation capabilities and not everything can be delivered when the customer wants it.

54. Logistics Orientation
4/25/2018
Logistics Orientation
9/2/2015
Lesson #5011
5 January 2017 20