MEMORANDUM FOR SUPPLY PROCESS REVIEW COMMITTEE (PRC) MEMBERS

Transcription

1 DEFENSE LOGISTICS AGENCY HEADQUARTERS 8725 JOHN J. KINGMAN ROAD FORT BELVOIR, VIRGINIA 2206() April10, 2014 MEMORANDUM FOR SUPPLY PROCESS REVIEW COMMITTEE (PRC) MEMBERS SUBJECT: Approved Defense Logistics Management Standards (DLMS) Change (ADC) 1106, Intra-DLA Change: New Disposition Services Term Sales Code to use with DLMS 527R Receipt for Commercial Venture (CV) and Modification of DLMS 940R Materiel Release Order for Associated Delivery Order Term Sales Contract Number (Supply) The attached change to DLM , Defense Logistics Management System, is approved for implementation. The updated DLMS implementation convention will be posted to the Defense Logistics Management Standards Office Web site at within 10 days from the above date. Supply PRC representatives may direct questions to Ms. Mary Jane Johnson, (703) ; DSN , Ms. Ellen Hilert, (703) ; DSN , or Ms. Heidi Daverede, (703) , DSN , Others must contact their Component designated Supply PRC representative available at 6/dlmso/CertAccess/SvcPointsPOC/allpoc.asp. Attachment As stated cc: ODASD(SCI) Deputy Director Defense Logistics Management Standards Office

2 ATTACHMENT TO ADC 1106 Intra-DLA Change: New Disposition Services Term Sales Code to use with DLMS 527R Receipt for Commercial Venture and Modification of DLMS 940R Materiel Release Order for Associated Delivery Order Term Sales Contract Number 1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: a. Technical POC: DLA Logistics Information Services, J62EAB, b. Functional POC: DLA Disposition Services, J5, FUNCTIONAL AREA: a. Primary/Secondary Functional Area: Supply/Logistics b. Primary/Secondary Functional Process: Receiving and Issuing 3. REFERENCE: a. DRMS Instruction (DRMS-I) , Operating Instructions for Disposition Management, b. Defense Logistics Manual (DLM) , Defense Logistics Management System, Volume 2, Chapter 16, 4. APPROVED CHANGE: (Significant Changes from PDC are highlighted) a. Brief Overview of Change: (1) Addition of Disposition Services Term Sales Code to the DLMS 527R Receipt: (a) The new DLA Disposition Services Term Sales code will be used by the DLA Disposition Services Field Office personnel to indicate specific item characteristics based on receipt examination and pre-established business rules. The field office (which uses the DLA Distribution Standard System (DSS)) will use the DLMS 527R Receipt transaction to pass the Disposition Services Term Sales code to DLA Disposition Services (which uses DLA Enterprise Business System (EBS)). (b) Assignment of the Disposition Services Term Sales code to "term sale" type item will support disposition services contract sourcing decisions in EBS. After EBS determines that property is eligible for sale, EBS will source to the proper term sales contract using national stock number (NSN)/local stock number (LSN) and the new Disposition Services Term Sales code. (2) Addition of Delivery Order Term Sales (DOTS) Contract Number to the DLMS 940R Materiel Release Order (MRO): The new Disposition Services Term Sales code will not be included when Disposition Services sends the DLMS 940R MRO to the field office. Page 1 of 6

3 Instead, when DLA Disposition Services is sourcing property designated with the new Disposition Services Term Sales code, DLA Disposition Services will include the DOTS contract number associated with the Disposition Services Term Sales code in the MRO. The field office will use the DOTS contract number to build a Workload List for that week's release of property. b. Background: (1) The DLA Disposition Services is a worldwide presence within the Department of Defense, with disposal specialists in 14 foreign countries, two U.S. territories, and 39 states. DLA Disposition Services mission is the execution of disposition solutions for excess military property. The Reutilization Business Integration project replaced the Disposal Automated Information System (DAISY) by integrating DLA Disposition Services business processes within the DLA enterprise suite of applications, including EBS for material management functions and DSS for warehousing/distribution functions. (2) Term Sales denotes a term sale sealed bid offering for a solicitation based on property or scrap expected to be generated over a specific period of time, for example, one year. The selling agency forecasts what total generations will be accumulated during that whole period of time. As property is accumulated in sufficient quantities that are suitable for transportation, the sales contractor is contacted to remove that property/scrap. A pre-payment is made at the beginning of the term contract to cover generations of property removed. Statements of account are generated for property removed during a set period of time, (e.g., monthly). (3) DOTS contracts fall under the Commercial Venture (CV) business model for DLA Disposition Services. The current CV process issues a weekly delivery order of property to the sales contractor, with a two part billing process: a front end billing and a back end billing occurring 120 days later. DLA Disposition Services has experienced multiple billing problems with CV sales contracts, which impact DLA's audit readiness. There are a number of internal system changes underway to resolve these deficiencies. Linked to DLA's process changes is a new business initiative for CV contracts. The current CV process does not allow for multiple contracts or multiple buyers, whereas the new business model will support multiple contracts with different buyers. The sourcing logic for the new sales contracting process, referred to as DOTS, will initially segregate "rolling stock" in the solicitation and offer "rolling stock" as a separate contract. Rolling stock is defined as ground related, self-propelled wheeled and track mounted vehicles (such as passenger motor vehicles, trucks and dozers) and trailers (such as semi-trailers, cargo trailers and special purpose trailers). (4) The federal supply class (FSC) of the Disposal Turn-in Document s (DTID) national item identification number (NIIN) cannot be used to support the new business model because those contracts will only affect items with specific characteristics within the FSC. Therefore, DLA Disposition Services Field Office personnel will need to convey distinct characteristics (e.g., rolling stock) based on visual examination. (5) A new code is needed to designate "term sale" type items (e.g., "rolling stock") upon receipt of materiel to support DLA's new business initiative. This same code will also be used to support follow-on DOTS type contracts for other materiel groupings and commodity types Page 2 of 7

4 c. Describe Approved Change in Detail: (1) This change proposes adding a new Disposition Services Term Sales code to the DLMS 527R Receipt transaction. The DLA Disposition Services Field Office personnel will cite the code in the Receipt transaction to designate suitable items as a term sales type item upon receipt. DLA Disposition Services will publish and maintain the Disposition Services Term Sales code list in DRMS-I The code indicates the type of items associated with a specific DOTS contract. For initial implementation, Disposition Services Term Sales Code R will be used to indicate "Rolling Stock" in the Receipt sent from DSS to EBS. Disposition Services will maintain a table to cross reference the codes as new DOTS contracts are developed. The remaining code values are reserved for future DLA Disposition Services assignment. (2) Once DLA Disposition Services determines that property is eligible for sale, DLA Disposition Services will source property to the proper contract using the NSN/LSN and new Disposition Services Term Sales code. The new code will not be included when DLA Disposition Services sends a DLMS 940R MRO transaction to the DLA Disposition Services Field Office. (3) This change also proposes a modification to the DLMS 940R MRO to include the DOTS contract number when EBS sends DSS an MRO to direct release of DOTS line items. (4) DSS will use the DOTS contract number to generate the appropriate Workload List for that week's release of property. d. Revisions to DLM Defense Logistics Management System (reference 3.b.): (1) Revise DLMS 527R and DLMS 940R as shown in the enclosure. (2) Revise DLM , Defense Logistics Management System, Volume 2, Chapter 16, as follows (changes shown in bold red italics): (a) Revise paragraph C : C Materiel Release Orders in Support of Public Sales. In support of public sales, the DLMS 940R, MRO sent to DLA Disposition Services Field Offices to direct release of a sales order line item will contain an original document number (ODN), constructed using a valid DLA Disposition Services DoDAAC as the primary document number in the transaction. The DTID number or DTID number and suffix identifying the property will be carried as a secondary reference number. The sales order reference number will be passed in each transaction as secondary to the DTID number, except when the line item relates to a CV term sale, then the delivery order term sales contract number will be passed in addition to the DTID number. This will enable the field office to identify all associated MROs into a single pick order. The supplementary address will contain the valid DLA Disposition Services public sales DoDAAC, along with Signal Code K indicating ship to and bill to supplementary address. Public sales MROs will contain a DoD Transportation Mode Code of X to indicate customer pick up. Additionally, these MROs will contain the public customer s first and last name as exception data, which will be used by field office personnel responsible for supervising customer removals to verify the correct customer is removing the property. Once property is removed, the field office will send a DLMS 945A Materiel Release Confirmation transaction, containing the associated ODN and DTID number or DTID number and suffix, to DLA Disposition Services. Page 3 of 7

5 (b) Revise paragraph C based on DLA comment to PDC 1106 (see paragraph 12 of this ADC): C Customer Requisition Cancellation without Submission of a DLMS 869C, Customer Cancellation Request (Transaction Type Code AC) or the Subsequent DLMS 940R, Materiel Release Order Cancellation Request (Transaction Type Code ND). DLA Disposition Services allows cancellation of submitted requisitions based upon the customer declining the ordered materiel available for pick up at the DLA Disposition Services Field Office. In these instances, the DLA Disposition Services Field Office will notify DLA Disposition Services of the cancellation by providing the DLMS 945A, Materiel Release Order Cancellation Confirmation (Transaction Type Code NR), that will contain DLMS Cancellation Reason Code YD (DLA Disposition Services Customer No-Show), YE (DLA Disposition Services Sales Customer Refused Penalty May Apply), YF (DLA Disposition Services Sales Customer Refused No Penalty), YG (DLA Disposition Services Sales Reutilization/Transfer/Donation (RTD) Customer Declined with Prior Notice), YH (DLA Disposition Services RTD Customer Refused Without Prior Notice), or YI (DLA Disposition Services Commercial Venture (CV) Rejected by CV Customer) Government Liquidators (GL)), as appropriate. Subsequently, DLA Disposition Services will communicate requisition status to their RTD Web in order to make the cancellation visible to the customer. (c) Revise paragraph C : C DLMS 527R Required Data Elements. The DLMS 527R Receipt transaction includes the following data elements as applicable to support the disposition category code assignment process and to subsequently track other disposal processes: Bill to DoDAAC, DEMIL code, demilitarization integrity code, demilitarization performed code, disposition services accumulation number, disposition category code, disposition services container ID, disposition services complete container count, disposition services current container count, disposition services term sales code, disposition services indicator (e.g., Abandoned Property (AP) Indicator, Certificate Availability (CA) Indicator, Controlled Property Branch Verified as Not controlled (CPBV), DEMIL Instructions (DI) Indicator, HM Indicator, HW Indicator, or HWPS Indicator, Receipt-In-Place (RIP) Indicator, SA/LW Indicator, Wash Post (WP) Indicator), disposition services reimbursement code, disposition services UCN, DTID number or DTID number and suffix, DTID materiel description, hazardous materiel indicator code, Industrial Plant Equipment (IPE) report number, MSDS Number, model number (used only in conjunction with IPE Report Number), Sales Contract Number, Sales Contract Line Item Number, Service LSN, year of manufacturer (used only in conjunction with IPE Report Number). (d) Revise paragraph C : C Delivery Order Term Sales. The field office will identify property designated for resale under CV delivery order term sales contracts by including the disposition services term sales code in the receipt transaction. The disposition services term sales code is based on specific item characteristics. An example is rolling stock (wheeled items). The delivery order term sales code is a code set maintained by DLA Disposition Services. An internal DLA Disposition Services table is used to associate the delivery order term sales code with the applicable CV contract for sourcing materiel for release to the purchaser. e. Approved Transaction Flow: This process uses standard transaction flow. The DLMS 527R receipt transaction will flow from the DLA Disposition Services Field Office to DLA Disposition Services (i.e., from DSS to EBS). The 940R materiel release transaction will flow from DLA Disposition Services to the DLA Disposition Services Field Office. Page 4 of 7

6 f. Alternatives: No acceptable alternatives available at this time. 5. REASON FOR CHANGE: DLA Disposition Services current CV contract model does not allow for multiple contracts or multiple buyers. A new DLA business initiative requires property to be separately identified when property meets pre-established item characteristics and offered separately under DOTS solicitations. EBS is built for one buyer and one pricing method for all property. It does not accommodate offering different commodities under separate contracts based on pricing methodology or based on a percent of gross revenue. Therefore, the Disposition Services Term Sales code is essential for DOTS implementation. 6. ADVANTAGES AND DISADVANTAGES: a. Advantages: DLA Disposition Services will be able to manage multiple contracts, multiple buyers and different pricing methodologies based on a percent of gross revenue. b. Disadvantages: Updating transactions will require DSS and EBS coding changes to generate and accommodate the new Disposition Services Term Sales code, and mapping changes at DLA Transaction Services will also be needed. 7. ADDITIONAL COMMENTS TO CONSIDER: The Director, DLA, has accelerated DLA's Inventory Existence and Completeness assertion date by four months, from September 30, 2014 to June 1, This change supports DLA's audit readiness. 8. ADDITIONAL FUNCTINAL REQUIREMENTS: None. 9. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: Target implementation date is March 2014 to meet contract award date. 10. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH IMPLEMENTATION OF THIS CHANGE: DLA reports that approximately $65M in annual billing discrepancies will be avoided. 11. IMPACT: a. New DLMS Data Elements: The following new DLMS data elements are established: (1) Disposition Services Term Sales Code. DLA Disposition Services Field Offices designate items for resale under a Commercial Venture DOTS contracts based on the item s characteristics. For example, DLA Disposition Services will assign Disposition Services Term Sales Code R for rolling stock (wheeled items). DLA Disposition Services will maintain a table to cross reference the codes to the DOTS contract number. DLA will publish and maintain the code list in DRMS-I , Operating Instructions for Disposition Management. At this time a local code DTS-Disposition Services Term Sales Code is established for Data Element ID 1270 for use in 527R, version DLMSO will submit a data maintenance action to the Accredited Standards Committee (ASC) X12 for establishment of ASC X12 Data Element ID 1270 qualifier DTS Disposition Services Term Sales Code in a future version. The ASC X12 data maintenance action must cite the authoritative publication source for the code list; as such, it will cite DRMS-I Disposition services term sales code is a single alphanumeric character code value. STAFFING NOTE for DLA: DLA to advise in response to PDC whether the min/max for this code is one. DLA advised this is a one position code. Page 5 of 7

7 (2) Delivery Order Term Sales Contract Number. This is the contract number applicable to a specific type of DLA Disposition Services Commercial Venture contract used for resale of materiel. Under a delivery order term sales contract the type of materiel sold is restricted by the item characteristics. For example, a DOTS contract may be restricted to rolling stock (wheeled items). Delivery order term sales contract numbers are the standard DFARS contract number construct. b. Change to DLMS Data Elements: Administrative update to the explanation for Accredited Standards Committee (ASC) X12 Data Element 1270 Z, Cancellation Reason Code, for code value YI (change identified by double strike through and bold red italics): Cancellation Reason Code YI - DLA Disposition Services Commercial Venture (CV) Rejected by CV Customer) Government Liquidators (GL)) Rational for change: Supports DLA comment to establish a more generic code value: Government Liquidators (GL) is currently the company/customer awarded the contract, and should they be awarded the contract again the wording is correct. If they are not the successful bidder on the future Commercial Venture (CV) contract, then the words Government Liquidators (GL) is inappropriate. c. Automated Information Systems (AIS): (1) DLA. DSS and EBS will require coding changes to properly recognize, map, process, and accommodate the changes identified in this proposed change. (2) Other DOD Components. No impact. Only impacts DLA. d. DLA Transaction Services: DLA Transaction Services will require mapping updates for the 527R use of Disposition Services Term Sales code and 940R use of DOTS contract number. e. Non-DLM series Publications. DLA Disposition Services publications: (1) DLA Disposition Services standard operating procedure and business process analyst training manual. (2) DRMS-I , Operating Instructions for Disposition Management requires update by the appropriate DLA office to include publication and maintenance of the code set for the new Disposition Services Term Sales code. This is necessary to establish the ASC X12 qualifier for the code set. DRMS-I is not under the purview of DLMSO; the requirement to update the DLA Disposition Services publication is noted as a courtesy. (3) As a reminder, DLMSO notes that previous ADCs have documented other new code sets established and maintained by DLA Disposition Services that require publication in DRMS-I These code sets include, but are not limited to, Disposition Category Change Reject Reason Code and Disposition Services Reimbursement Code. Page 6 of 7

8 12. PDC 1106 Comment: DLA Marine Corps USTRANSCOM Response to PDC 1106 Concur with comment: In DLM , Volume 2, Chapter 16, paragraph C on page C16-9: the third line from the bottom, it states: (CV) Rejected by Government Liquidators (GL). The words Government Liquidators (GL) should be changed to the Commercial Venture Customer. GL is currently the company/customer awarded the contract, and should they be awarded the contract again the wording is correct. If they are not the successful bidder on the future Commercial Venture (CV) contract, then the words Government Liquidators (GL) is inappropriate. Concur without comment Concur without comment Disposition Concur. Change made to use generic term Commercial Venture Customer in referenced paragraph. This change requires an administrative revision to DLMS Cancellation Reason Code YI. YI - DLA Disposition Services Commercial Venture (CV) Rejected by CV Customer) Government Liquidators (GL)) Enclosure Page 7 of 7

9 ENCLOSURE TO ADC 1106 A. DLMS 527R Receipt Change Table. # Location DLMS 527R Receipt Revision 1 DLMS Add ADC 1106 to DLMS Introductory note 5: Intro - ADC 1106, Intra-DLA Change: New Disposition Services Term Sales Code to Notes use with DLMS 527R Receipt for Commercial Venture (CV) and Modification of DLMS 940R Materiel Release Order for associated Delivery Order Term Sales Contract Number (Supply) 2 2/LQ01/130 Revise DLMS Note 2 for existing code DMP: DMP Demilitarization Performed Code 1. Authorized DLMS enhancement for use by DLA Disposition Services in receipt and historical receipt transactions. Demilitarization Performed Code is published in DRMS-I Refer to ADC At this time a local code DMP is established for use in 527R, version A data maintenance action has been submitted for establishment of DMP- Demilitarization Performed Code in a future version. 3 2/LQ01/130 Add new local code DTS with DLMS note: DTS Disposition Services Term Sales Code 1. DLA Disposition Services Field Office uses to identify property designated for delivery order term sales contracts. Authorized DLMS enhancement for use by DLA Disposition Services in receipt and historical receipt transactions. Disposition Services Term Sales Code is published in DRMS-I Refer to ADC At this time a local code DTS is established for use in 527R, version A data maintenance action has been submitted for establishment of DTS - Disposition Services Term Sales Code in a future version. 4 2/LQ01/130 Revise DLMS Note 2 for existing code DCT: DCT Disposition Category Code 1. The disposition category at time of receipt will be either: Reutilization (RU), Sales (SL), or Disposal (DS). Code DS, RU, or SL will be conveyed in LQ02, where LQ01 conveys DCT. Authorized DLMS enhancement for use by DLA Disposition Services in receipt and historical receipt transactions. Refer to ADC At this time a local code DCT is established for use in 527R, version A data maintenance action has been submitted for establishment of DCT - Disposition Category Code in a future version. Qualifier DCT is a migration code approved for use in X12 version The approved code/name is DCT- Disposition Category Code. Reason Identifies changes included in IC. Administrative correction to the DRMS-I number. Documents new requirement. Administrative update. Documents ASC X12 approval of a previously local code. Enclosure, ADC 1106 Page 1 of 4

10 # Location DLMS 527R Receipt Revision 5 2/LQ01/130 Revise DLMS Note 2 for existing code DMI: DMI Demilitarization Integrity Code 1. Authorized DLMS enhancement for use by DLA Disposition Services in receipt and historical receipt transactions. Refer to ADC 442. Reason Administrative update. Documents ASC X12 approval of a previously local code. 2. At this time a local code DMI is established for use in 527R, version A data maintenance action has been submitted for establishment of DMI - Demilitarization Integrity Code in a future version. Qualifier DMI is a migration code approved for use in X12 version The approved code/name is DMI- Demilitarization Integrity Code. 6 2/LQ01/130 Revise DLMS Note 3 for existing code DSI: DSI Disposition Services Indicator 1. Authorized DLMS enhancement for use by DLA Disposition Services in receipt and historical receipt transactions. Repeat the LQ segment as needed to identify all applicable indicators. Refer to ADC 442 and ADC The following Disposition Services Indicators are authorized for use in the receipt transaction on an intra-dla basis: AP, CA, CPBV, DI, HM, HW, HWPS, RIP, SALW, and WP. These indicators will be conveyed in LQ02, where LQ01 conveys DSI. Explanations for these indicators are as follows: AP = Abandoned Property CA = Certificate Available; CPBV = Controlled Property Branch Verified as Not Controlled DI = DEMIL Instructions Available; HM = Hazardous Materiel; HW = Hazardous Waste; HWPS = Hazardous Waste Profile Sheet Available; RIP = Receipt-In-Place; SALW = Small Arms/Light Weapons WP = Wash Post 3. At this time a local code DSI is established for use in 527R, version A data maintenance action has been submitted for establishment of DSI-Disposition Services Indicator in a future version. Qualifier DSI is a migration code approved for use in X12 version The approved code/name is DSI- Disposition Services Indicator. Enclosure, ADC 1106 Page 2 of 4

11 B. DLMS 940R MRO Change Table. # Location DLMS 940R MRO Revision 1 DLMS Add ADC 1106 to DLMS Introductory note 5: Intro - ADC 1106, Intra-DLA Change: New Disposition Services Term Sales Code to Notes use with DLMS 527R Receipt for Commercial Venture (CV) and Modification of DLMS 940R Materiel Release Order for associated Delivery Order Term Sales Contract Number (Supply) 2 2/N901/0400 Add new code KAS with KAS Associated Contract Identifier Use to identify the Delivery Order Term Sales Contract Number. This is used by DLA Disposition Services to identify the associated Commercial Venture Sales Contract. Refer to ADC This is an authorized DLMS enhancement for use by DLA Disposition Services. 3 2/LQ01/1300 Revise DLMS Note 2 for existing code DMI: DMI Demilitarization Integrity Code 1. Use to identify the DEMIL Integrity Code. 2. At this time a local code DMI is established for use in 940R, version A data maintenance action has been submitted for establishment of DMI - Demilitarization Integrity Code in a future version. Qualifier DMI is a migration code approved for use in X12 version The approved code/name is DMI- Demilitarization Integrity Code. 4 2/LQ01/1300 Revise DLMS Note 2 for existing code DSC: DSC Disposition Services Customer Type 1. Use to identify the DLA Distribution Services Customer Type. The customer type is used by the DLA Distribution Services Field Office to prioritize workload. Cite the applicable code: R= Reutilization T=Transfer D= Donation S=Sales Reason Identifies changes included in IC. Documents new requirement. Administrative update. Documents ASC X12 approval of a previously local code. Administrative update. Documents ASC X12 approval of a previously local code. 2. At this time a local code DSC is established for use in 940R, version A data maintenance action has been submitted for establishment of DSC - Disposition Services Customer Type in a future version. Qualifier DSC is a migration code approved for use in X12 version The approved code/name is DSC- Disposition Services Customer Type. 3. Authorized for intra-dla use between DLA Disposition Services and DLA Disposition Field Offices. DLMS enhancement; Refer to ADC 434. Enclosure, ADC 1106 Page 3 of 4

12 # Location DLMS 940R MRO Revision 5 2/LQ01/1300 Revise DLMS Note 3 for existing code DSI: DSI Disposition Services Indicator 1. Use to provide relevant information applicable to the DLA Disposition Services business process supported by this transaction on an intra-dla basis. Use multiple repetitions of the LQ Segment to include all applicable codes. Authorized DLMS enhancement for use by DLA Disposition Services. Refer to ADC 434. Reason Administrative update. Documents ASC X12 approval of a previously local code. 2. The following Disposition Services Indicator values are available for use in the materiel release transaction: CIF Container Issued in Full. Use to indicate that all DTID Numbers applicable to the specified container is issued on the same release order. CM Cancellation Mandatory. Use to indicate to the DLA Disposition Field Office that the cancellation of the materiel release is mandatory. CO Cancellation Optional. Use to indicate to the DLA Disposition Field Office that the cancellation of the materiel release is optional. CS DEMIL Condition of Sale Indicator. 3. At this time a local code DSI is established for use in 940R, version A data maintenance action has been submitted for establishment of DSI-Disposition Services Indicator in a future version. Qualifier DSI is a migration code approved for use in X12 version The approved code/name is DSI- Disposition Services Indicator. Enclosure, ADC 1106 Page 4 of 4