01/09/0806/01/2009

PERUJuly 2009

01/09/0806/01/2009

Logistics Orientation

SAM-I

01/09/0806/01/2009

Bandaria

Execution

As Required

ImplementingAgencies

ImplementingAgencies DoD ResourcesDoD Resources

ProcurementProcurement

ServicesServices

TrainingTraining

As Required

FreightForwarder

FreightForwarder

01/09/0806/01/2009

What is Logistics?

The Science of planning and carrying out the movement and maintenance of forces (Joint Pub 1-02)

• Acquisition

• Transportation

• Supply

• Maintenance

01/09/0806/01/2009

01/09/0806/01/2009

System

Technical Assistance

Training

Publications

Spares

Support Equipment

Follow-on Support

Maintenance

SupportEquipment

Munitions

Training

TechnicalAssistance

Publications

Spares/RepairParts

Modifications

Initial Support

Total Logistics Support

01/09/0806/01/2009

How DoD Manages Commodities

Secondary Item• Repairables - things that can be reconditioned/repaired for reuse.

• Consumables - things that are normally expended or used up beyond recovery.

• An item that performs a function in and of itself which has significantimpact on mission accomplishment.

Primary (Major End Items)

01/09/0806/01/2009

Primary & Secondary Item Management

ARMY

AIR FORCE

NAVY

MARINE CORPS

OTHERDEFENSE LOGISTICS

AGENCY

Primary Items

MARINE CORPS

AIR FORCE

ARMYNAVY

Secondary Items

01/09/0806/01/2009

International Logistics Control Organization/Office (ILCO)

US Army Security Assistance Command (USASAC)-New Cumberland, PA

Air Force Security Assistance Center (AFSAC), Wright-Patterson AFB, OH

Navy Inventory Control Point (NAVICP-OF), Philadelphia, PA

01/09/0806/01/2009

Role of International Logistics Control Organizations (ILCOs)

The ILCO is the FMS customers’ entry point into the DoD logistics system, and is responsible for:

Case Development and Implementation

Logistics Oversight of all LOAs

Requisition Processing

Management Information Systems

SDR Processing

Transportation/Quality Assurance Liaison

Program Management Reviews

Coordinates Repair and Return Maintenance

01/09/0806/01/2009

Countries with Logistics Liaisonsat the ILCO

Argentina (AF) Australia (A, AF, N) Belgium (AF)

Brazil (AF) Canada (A, AF, N) Chile (AF)

Colombia (A, N) Denmark (AF) Egypt (AF, N)

France (A, N) Germany (AF) Greece (A, AF, N)

Indonesia (AF) Israel (A, AF, N) Italy (N)

Japan (AF, N) Jordan (A, AF) Korea (A, AF, N)

Kuwait (N) Mexico (AF) Netherlands (AF, N)

Norway (AF) Portugal (AF, N) Saudi Arabia (A, AF, N)

Spain (AF, N) Switzerland (N) Taiwan (A, AF, N)

Thailand (AF, N) Turkey (A, AF, N) United Kingdom (A, AF, N)

Uruguay (AF)

01/09/0806/01/2009

Defense Logistics Agency

Albany, GA Anniston, AL Barstow, CA Cherry Point, NC Corpus Christi, TX Hill, UT Jacksonville, FL Norfolk, VA Oklahoma City, OK Pearl Harbor HI; Puget Sound, WA Red River, TX Richmond, VA San Diego, CA San Joaquin, CA Susquehanna, PA Tobyhanna, PA Warner Robins, GA (Germany, Guam, Italy, Japan, Kuwait *)

HQ, DLA Customer Operations &

Readiness (J-4)

Defense DistributionCenters (DDC)

Inventory Control Points (ICP)

Service Centers

Defense Reutilization & Marketing Services (DRMS)

Defense Logistics Information Service (DLIS)

1. Defense Supply Center Columbus (DSCC)

2. Defense Supply Center Philadelphia (DSCP)

3. Defense Supply Center Richmond (DSCR)

International ProgramsOffice (J-4)

01/09/0806/01/2009

Definitization

Weapon system configuration Weapon system deployment Location and use of repair facilities Supply and transportation time from

U.S. Initial support period

01/09/0806/01/2009

InternetFEDLOG

Commercial

Products

Cataloging

Assignment of national stock numbers Accumulation of procurement data Assignment of inventory manager

01/09/0806/01/2009

NSN Configuration

FederalSupply Classification

Code

Class NationalCodification

BureauCode

National Item Identification Number(NIIN)

Random NumberSequentially Assigned

By DLIS

29 2029 20 00 004-6788 00 004-6788

Group

Engine Electrical USA

01/09/0806/01/2009

Logistics Communications

International Mail 10-30 Days

Phone/FAX/E-Mail Suitable for small quantities

Internet Security Cooperation Information Portal (SCIP) Navy e-Business Suite AFSAC On-Line

ILCS (International Logistics Communications System) Subscription available through FMS case 220 Transactions per minute Data exchange via customer-owned software, or via DoD

systems: DAASC Automated Message Exchange System (DAMES) Supply Tracking And Reparable Return (STARR)/PC

01/09/0806/01/2009

Logistics Communications

ILCOsILCOs

ILCSILCS

DDefenseefense

AAutomaticutomatic

AAddressingddressing

SSystemystem

CCenterenter

MISILMISIL (Navy) (Navy) SAMISSAMIS (AF) (AF) CISIL CISIL (Army)(Army)

01/09/0806/01/2009

Blanket Orders & CLSSA cases

Defined

Order cases

ArmyArmyItem Item

ManagerManager

ArmyArmyItem Item

ManagerManager

NavyItem

Manager

NavyItem

Manager

Air ForceAir ForceItem Item

ManagerManager

Air ForceAir ForceItem Item

ManagerManager

DLA DLA Supply Supply CentersCenters

DLA DLA Supply Supply CentersCenters

ILCOsILCOs

FMSCustomer

FMSCustomer

ICPILCO

ICPILCO

MILSTRIP Requisition

01/09/0806/01/2009

MILSTRIP to LOA Relationship

01/09/0806/01/2009

DD

FO

RM

134

8m

30 31 32 33 34 45 46 47 48 49 501 80

COUNTRY

MARK FOR CASE

FREIGHTFORWARDER

OFFERRELEASE

CUSTOMERSERVICE

DELIVERYTERMS

SPONSORINGMILDEP

2 3 4 7978RE

QU

ISIT

ION

SY

ST

EM

DO

CU

ME

NT

5 29287 8 35 51 77

DOCUMENT NUMBER SUPP ADD

SV REQUISITIONER DATE SERIAL SV OR FF CASE

SUF

30 31 32 33 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 5034

30 31 32 33 34 45 46 47 48 49 5035

TYPEASSISTANCE

44

DEMAND

44

01/09/0806/01/2009

ICPICP

PurchaserPurchaser DAASCDAASC

ILCOILCO

ContractorContractor

DepotDepot

Requisition Process

01/09/0806/01/2009

Follow-On Support Methods

InternalThird countryU.S. commercialFMS case

01/09/0806/01/2009

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

01/09/0806/01/2009

CLSSA Principles

Customer purchases equity Support equal to U.S. unit with same

FAD Approved common systems Ammunition, end items, commercial

equipment excluded Prerequisite in country stock

01/09/0806/01/2009

System Support Buyout(SAMM C6.4.7.)

FMS purchaser should have at least 2 years to place final order for secondary/support items for systems being phased out of DoD.

01/09/0806/01/2009

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 ground systems and communications nonstandard spares

01/09/0806/01/2009

Materiel Return Concepts

Repair & Return Defined Order or Blanket case Same item returned Actual repair cost Offered by all Services

Repair & Replace (AF), Direct Exchange (A), Reparable Item Replacement Option (N) CLSSA or Blanket case Like item returned Average repair cost Not offered by USMC

01/09/0806/01/2009

EDA vs DRMS

Excess Defense Articles Military service retains ownership Items may be SME and MDE Items should be in operating condition No transportation or supporting

equipment/services included FMS customer can get upgrades/repairs on

FMS case prior to delivery at additional cost

01/09/0806/01/2009

EDA vs DRMS

Defense Reutilization and Marketing Service Military services transfer ownership to DRMS Items may be in any condition No transportation or supporting

equipment/services included No upgrades or repairs available from DRMS,

but may be available via FMS case with MILDEP.

01/09/0806/01/2009

FMS Materiel Movement

PURCHASERFREIGHT

FORWARDER

DEPOT

CONTRACTOR

US military or commercial carrier

Customer military or commercial carrier

01/09/0806/01/2009

2

5

9

8

5

7

Military

Origin

Commercial ILCO

ICP

POE

POD

4Freight Forwarder

Staging

FMS Delivery Term Codes

01/09/0806/01/2009

Delivery Term Codes

2 Delivery to destination in CONUS (contractor or staging location)

3 Delivery alongside vessel/aircraft at port of exit (no longer used)

4 Delivery at origin

5 Delivery to CONUS commercial port of exit or freight forwarder

6 Delivery to overseas port of discharge (no longer used)

7 Delivery to final destination in recipient country

8 Delivery to vessel (on board) – DoD port of exit

9 Delivery to port of discharge (landed)

01/09/0806/01/2009

C US/DoD is responsible for transportation from a CONUS POE to a CONUS destination and return to a CONUS POE, plus port handling

E Customer has total responsibility

F US/DoD has total responsibility

G Same as F, except overseas inland transportation

H Customer is responsible for all transportation from overseas point of origin to CONUS activity. US DoD is responsible for return transportation from CONUS activity to CONUS POE. Customer is responsible for transportation from CONUS POE to point of origin.

J Customer is responsible for all transportation from overseas point of origin to CONUS activity. US DoD is responsible for return transportation from CONUS activity to overseas destination.

Delivery Term Codes (Continued)

01/09/0806/01/2009

Transportation Pricing

Percentage based on item value and distance (SAMM C9.T2 and DoD 7000.14-R, vol. 15, C.0722)

Transportation cost lookup table, SAMM, Appendix 2, for selected major systems

Actual expenses

01/09/0806/01/2009

The U.S. Government Will:(SAMM C7.T3)

Validate export value on DSP-94 (SAMM C7.T8) Pack, crate, and HAZMAT certify material for

overseas shipment. Initiate shipments to freight forwarders or arrange

DTS transportation (SAMM C7.7 and C7.12) Maintain proof of shipment (SAMM C6.2.1) Assist purchaser processing of claims (SAMM

7.6.6.2 and 7.19) Provide technical assistance and guidance to

country representative/ freight forwarders through military departments liaison activities

01/09/0806/01/2009

The Purchasing Country Must:(SAMM C7.T3)

Select a Freight Forwarder Obtain export documents (can be delegated to

Freight Forwarder) Respond to Notices of Availability Obtain insurance Assure current addresses in MAPAD Assure prompt payment of transportation

charges Provide Freight Forwarder with copy of LOA

01/09/0806/01/2009

Freight Forwarder Responsibilities(SAMM C7.T3)

Onward transportation arrangements: Warehousing, storage, materiel handling

equipment Receipt, handling, processing of materiel Obtain export documents (LOA, copy of DSP-

94 certified by IA) Customs clearance via Automated Export

System (AES)

File claims against the carrier, if necessary

01/09/0806/01/2009

Categories of Discrepancy Reports

Supply discrepancies Product quality deficiencies Transportation discrepancies Financial discrepancies

01/09/0806/01/2009

Supply Discrepancy Report(DLAI 4140.55)

The SF364, Supply Discrepancy Report (SDR), is a catch-all document, filed by the FMS customer, to report virtually any problem associated with packing, shipping, billing, quality, quantity, product expiration and incorrect item receipt.

01/09/0806/01/2009

Claim must be submitted

within one year of title

transfer!

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)”

SAMM C.6.4.11.1

Criteria: Time

01/09/0806/01/2009

Criteria: Value

Claim must have a value of at least $200,

including transportation

and PC&H!

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)

SAMM C.6.4.11.2

Read DSCA Policy 03-15

01/09/0806/01/2009

Expectation Management – Points to Remember

DoD is funded by Congress only for ITS OWN requirements (acquisition, O&M, etc.)

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

01/09/0806/01/2009

How Can Customers Help Themselves with FMS?

Provide complete and well-considered LORs Judicious use of sole source and nonstandard

requirements Proactive coordination with freight forwarder or

know limitations of the DTS system. Not everything can be delivered by air; not everything can be delivered where you want it or when you want it

Read the delivery terms and notes of the LOA Understand that the success of the FMS process

is dependent upon the DoD logistics infrastructure

01/09/0806/01/2009

Logistics Orientation

SAM-I