Materiel Control Chapter 2

Materiel Control (MC) Procedures

• Moving Average Cost (MAC): Used for historical cost calculations in accordance with DoD 7000.14-R, aligning with financial management regulations. Historical cost includes all relevant purchase and production expenses.

Consumable Specifications

• Purpose: Define and categorize inventory items, set default values, link orders to inventory, enable proper inventory processing.

• Creation: Planners/craftsmen gather information (item characteristics, vendor details, cost comparisons) to create new specifications. Manufacturer's name and part numbers are essential for pricing.

• Loading: Materiel control (MC) receives draft specifications from shops, quality checks them, creates inventory items, and notifies shops for ordering via purchase requests (PRs).

• Naming Conventions: Ensure standardized item naming (Item, Type, Materiel, Size, e.g., Bolt, Lag, Zinc, 5/16” x 3”) for analysis and standardization.

• Duplication Check: CoMC checks for duplicate or alternative items before finalizing new specifications.

• Detailed Information: MC ensures specifications involve crucial details (item characteristics, vendor information, cost comparisons, manufacturer's name, part number) for accurate ordering. Referenced from MC BPL SharePoint.

• Draft Status: New specifications are loaded in draft format, accessible only to the base initiating the load. They aren't part of the enterprise specification database.

Inventory Item Locations

• Primary & Storage Locations: Each inventory item needs a Primary Location (e.g., warehouse) and a Storage location (e.g., bin). Locations can include main store, WT holding, forward store, etc.

• Storage Requirements: Locations are required for each inventory item. Items need protective storage in covered areas or with adequate covers (plastics, tarps, shelters) depending on storage location.

• Security Standards: Compliant storage standards with DoD 4140.1-R, and additional guidelines provided by DoD 4000.25-2-M, AFJMAN 23-210, and DAFI 23-101 unless superseded by DAFI 23-101.

Inventory Item Creation

• Prerequisites: Consumable specification, Primary Location, and Storage Area are crucial for creating Inventory Items. Inventory items are usually created by MC.

• Coverage: Items are recorded for specific uses (Wires, Wireless Goods, or U-FIX-IT Support).

Excess Materiel Disposal

• Policies: Governed by DoDM 4160.21, Volume 2, and DoDM 4160.28, Volume 1, aligning with federal property regulations. Items for disposal but with possible reuse are transferred to DLADS.

• Local Transfers: LRS/Materiel Management Activity can locally direct transfers to DLADS under specific conditions, like unserviceability or no longer required item.

• Scrap Segregation: Necessary for optimal disposal to maximize return from sales. Disposal organizations have requirements to separate and handle appropriately, DEMIL when needed.

• Usable Materiel: Serviceable or unserviceable items with potential use or resale value are retained for return to use or DLADS transfer.

Cycle Counting

• Frequency: Required at least annually for every inventory item (store, WT, forward stores, etc.). Items are counted at least once every 365 days.

• Accuracy: Aims to match physical inventory with NexGen records, enabling accurate financial and operational decision-making.

• Methods: Cycle counting (daily, weekly, or monthly) ensures accuracy, minimizing inventory discrepancies that may come from financial and operational decision-making.

Inventory Results & Adjustments

• Warehouse Validation: Ensuring every item has a valid and empty storage location at least annually. The "Date of Last Inventory" (DOLI) is updated.

• Donated Items (In/Out): Reflects any discrepancy between physical and NexGen records. "Donated in" transactions occur when more items are found than are recorded; "Donated out" when less are discovered. Reasons for adjustments need to be documented to show accountability.

• Inventory Adjustments: MC ensures the physical and NexGen records match, resolving any discrepancies.

Property Loss, Damage, or Theft

• Policy: Guided by DoDI 5000.64, which outlines procedures for accountability of government property. Includes managing property with costs under $5,000, pilferable property, hazardous materials and scrap.

• Investigations: Mandatory investigations for equipment losses of $5,000 or more in value. Investigations should be considered for high frequency of thefts or losses that could suggest a pattern of wrongdoing.

• Documentation: Necessary documentation for all property loss or theft instances to support accountability.

Materiel Maintained in Shops

• Forward Stores: Shops can operate authorized forward stores if space, personnel, and proper management are in place. Annual inventory is needed. Costs must be charged to work tasks (WTs/WGs) when items for forward stores are used.

• Shop Management: A shop chief and CEO commander/deputy must sign a memo detailing the store's purpose, items, and their management responsibility.

Precious Metals Recovery Program (PMRP)

• Compliance: Conducted under DoDM 4160.21 Volume 2 and TO 00-25-113.

• Accountability: All DAF activities are required to protect precious metals, precious metals scrap, and high-content materials. Accountability files must be kept for silver recovery equipment, materials, and the type of materials.