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Government Furnished Materiel Requisitions GFP Working Group 2 February 2011 PowerPoint Presentation
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Government Furnished Materiel Requisitions GFP Working Group 2 February 2011. Table of Contents. Government Furnished Materiel (GFM) Requisitioning and Management Control Activity (MCA) Process MILSTRIP Business Rules Standard “Pull” Transaction Flow Diagram

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Government Furnished Materiel Requisitions GFP Working Group 2 February 2011

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Government Furnished Materiel Requisitions

GFP Working Group

2 February 2011

table of contents
Table of Contents
  • Government Furnished Materiel (GFM) Requisitioning and Management Control Activity (MCA) Process
    • MILSTRIP Business Rules
    • Standard “Pull” Transaction Flow Diagram
  • “Push” Alternative to DoD GFM MCA Process
    • MILSTRIP Business Rules
    • “Push” Transaction Flow Diagram
  • Recent DLMS Changes in Support of GFM
gfm requisitioning and mca process1
GFM Requisitioning and MCA Process
  • DoD 4140.1-R established that each DoD Component authorizing the use of DoD materiel by contractors shall establish one or more management control activities (MCAs) to maintain control over all requisitions submitted to the DoD wholesale supply system by contractors and by DoD Component activities when such DoD Component activity requisitions indicate shipment to a contractor
  • DLMS/MILSTRIP prescribe policies and procedures for requisitioning GFM by or for contractors from the DoD Supply System. These procedures establish guidelines to requisitioners and authorized contractors and S/As to obtain GFM from DoD inventories to fulfill contract requirements
gfm requisitioning and mca process2
GFM Requisitioning and MCA Process
  • GFM authorized in contracts is required to be provided to Service /Agency (S/A) designated MCA(s)
    • MCA required to have Routing Identifier Code and/or Distribution Code assigned for identification and to facilitate the ordering and validation process
  • Contractor required to have DoDAAC assigned for use in requisition process
    • Distinct contractor Service/Agency Codes used to identify contractor DoDAACs
    • Contractor S/A codes = C, E, L, Q, SD, U and Z0
    • Army and DLA assign a unique DoDAAC to a contactor for each GFM contract
    • Air Force and Navy assign a DoDAAC to a contractor that may be used for multiple GFM contracts
gfm requisitioning and mca process3
GFM Requisitioning and MCA Process
  • GFM requisitions are defined by a contractor DoDAAC being identified as the ship-to DoDAAC and the government DoDAAC being identified as the bill-to DoDAAC
  • Requisitions defined in this manner are subject to the MCA process and controls
    • Army Contractor Furnished Materiel (CFM) requisitions (Army contractor is bill-to) are also subject to MCA procedures
    • DLA has deviated from MCA concept under EBS ERP
  • Requisitions for GFM may be initiated by the responsible S/A or by the contractor as specified in the contract.
    • Requisitions are submitted to MCA RIC
    • Requisitions contain contract number and call/order number or Manufacturer’s Directive Number (MDN)
gfm requisitioning and mca process4
GFM Requisitioning and MCA Process
  • MCA validates the requisition based on the information provided by the contracting office and determines if the contactor DoDAAC specified is authorized to receive the materiel and quantity ordered under the terms of the identified contact number
  • Valid requisitions are passed by the MCA to the applicable supply source
    • MCA inserts MCA Distribution Code in requisition in order to receive status updates and may include identifying RIC
    • MCA deletes contract number data from requisition prior to sending to supply source
  • Supply Source required to validate GFM requisitions back to MCA prior fulfillment action
    • Transactional validation requests sent via DAAS to MCA identified in order
    • MCA transactional responses either approves order or indicates rejection required via a series of status codes.
    • Supply source/MCA validation process not required for collocated MCA in same distribution system
gfm requisitioning and mca process5
GFM Requisitioning and MCA Process
  • Supply Sources fulfill MCA validated orders via depot stock or direct vendor delivery processes
  • Materiel Receipt Acknowledgement (MRA) to supply source and to MCA is required for GFM
  • MCA required to keep historical records and generate reports required by DoD 4140.1-R
standard gfm transaction flow

Standard GFM Transaction Flow

MCADesignated by Contract

MCA Validates Requisition under MILSTRIP/DLMS Established Criteria:

DoD 4000.25-1-M ( Ch-11) DoD 4000.25-M (V2, Para C4.2.2)

1. GFM Requisition

a. Supply Status, if rejected

4. AX2 GFM Validation Response

2. Validated GFM Requisition

1(alternate).GFM Requisition (Not via MCA)

3. AX1 GFM Validation Request

b. Supply Status(timing varies - requisition status if approved, rejection status if not)

Supply Source

Notes: All Transactions Via DAASGFM Requisition – A0_, A3_, A4_, (unmatched AM_ or AT_) or DLMS 511R (unmatched 511M, 869F)AX1 – ICP GFM Validation Request or DLMS 517GAX2 – MCA GFM Validation Response or DLMS 517G

push alternative to mca process
“Push” Alternative to MCA Process
  • MILSTRIP authorized alternative process is used by a supply source to ‘push” GFM to the contractor
  • Internal ERP functionality is employed to control delivery of GFM
    • Raw materials/component parts needed to assemble/ manufacture/repair the end item or final product are identified under terms of the contract
    • The number or amount of GFM component material needed to accommodate the total number of end items to be manufactured/assembled/repaired is calculated by the supply source
    • The supply source furnishes the component materiel based upon a schedule or usage
    • This eliminates the need for separate GFM requisitions for the component material and subsequent MILSTRIP MCA validation
dla gfm process alternative to mca
DLA GFM Process-Alternative to MCA
  • The supply source is responsible for monitoring consumption of raw materiel /component parts against the receipt of end items manufactured/assembled/repaired under the terms of the contract
    • There is no MILS/DLMS requisition in this process
    • A MILS/DLMS compliant Materiel Release Order (MRO) is generated for each component NSN to move the materiel to the contractor
    • The MRO identifies the supply source DoDAAC in the document number and the contractor DoDAAC as the ship-to
    • If the contractor has no DoDAAC, materiel may be shipped under clear text ship-to addressing rules
    • There is no identifying contract number in the MRO
push alternative to mca process1
“Push” Alternative to MCA Process
  • This alternative “push” process assumes all GFM requirements will be for items managed by supply source issuing the GFM contract
  • All raw materiel/component parts are issued from stock
push alternative transaction flow

“Push” Alternative Transaction Flow

Supply Source

Supply Source pushes raw materiel /component parts per contract; monitors schedule and delivery of end items


(or Government Representative)

1. Materiel Release Order

4. Materiel Receipt Acknowledgement

2. Materiel Release Confirmation

5. Receipt (end item)

3. Shipment Status

5. Delivered assembled/manufactured/repaired end item

Distribution Depot

Notes: All Transactions via DAASMateriel Release Order – A5_ or DLMS 940R Materiel Release Confirmation – AR_ or DLMS 945AShipment Status – AS_ or DLMS 856S Materiel Receipt Acknowledgment – DRA/DRB or DLMS 527RReceipt – D4_ or DLMS 527R

adc 389 non requisitioned gfm
ADC 389 Non-Requisitioned GFM
  • ADC 389, Inventory Control Point/ Integrated Item Manager (ICP/IMM)-Directed Shipments of Non-Requisitioned GFM, dated August 03, 2010
    • Documents an alternative process for providing GFM to contractors without initializing the requirement via a requisition
    • Materiel is “pushed” from the supply system rather than the “pulled” per original MILSTRIP procedures
    • Internal control are required to track and schedule GFM shipments, and measure usage against receipt of the end item(s) under the terms of the contract
    • Only applicable to issues from stock
    • Only applicable for issue of materiel managed by the Service/Agency authorizing the GFM by contract
adc 390 mra and receipt
ADC 390, MRA and Receipt
  • ADC 390, Revise DS 527R Materiel Receipt Acknowledgement and Receipt Functions to Require the DoD Contract Number for Transactions Associated with GFM and CFM, dated January 28, 2011
    • Requires inclusion of contract number (and call/order number, when applicable) on DLMS 527R transaction associated with GFM and CFM
    • Applicable to the MRA (comparable to MILSTRAP Document Identifier (DI) DRA) and to the accountable receipt (comparable to MILSTRAP DI D6_), when appropriate for intra-Service use (e.g., Navy CAV)
    • Applicable to both pushed and pulled GFM
    • Contracting Officers must assure the new requirement is implemented in contracts for contractor’s that receive GFM/CFM, or for MCA preparing MRA on behalf of contractors
    • No implementation schedule available at this time
proposed change future development
Proposed Change – Future Development
  • ODASD(SCI) and DPAP requested additional DLMS changes to enhance visibility of GFM within logistics transactions
    • Require MCA to perpetuate the contract number and call/order, where applicable, to the requisition forwarded to the supply source (DLMS 511R) and to the GFM Validation (DLMS 517G (AX2)
    • Require the supply source to perpetuate GFM contract and call/order to the Materiel Release Order (MRO) (DLMS 940R) forwarded to the shipping activity
    • Require the shipping activity or supply source, as applicable, to perpetuate the GFM contract number and call/order to shipment status (DLMS 856S)