1. Supply Discrepancy Reports (SDRs) “SDR Process Overview”
AFSAC SDR Office
AFLCMC/WFALB
September 2018
For Official Use Only
This briefing/presentation/document is for Information Only. No USG commitment to sell, loan, lease, co-develop or co-produce defense articles or provide defense articles is implied or intended.

2. Overview What is a Supply Discrepancy Report (SDR)?
International Partner Responsibilities
SDR Office Responsibilities
SDR Directives
Submission Guidelines
Supporting Documentation
Air Force SDR-A (Automation)
How Does SDR Process Work
AFSAC Online
SDR Submission Wizard
SDR Customer Query
SDR Monthly Report
SDR Metrics
How SDR Office Can Help You
SDR Office Points of Contact
Summary

3. What is an SDR? An SDR is process for customer to:
Report shipping/packaging discrepancies
Receive a fair and equitable response/resolution
Discrepancies include:
Condition/Quality
Overage/Shortage
Non-receipt
Incorrect/Wrong Item Received
Improper Documentation/Billing
Misdirected Shipment
Missing Components
Improper Packaging
Wrong Item
Ordered
Received
Condition
Packaging
For Official Use Only

4. International Partner Responsibilities
Inspect shipment immediately upon receipt
Save shipping documents (e.g. DD Form 1348, Receiving Report, Packing Slips)
Check for damages/verify quantity
Run bench checks/test to identify failures
Take pictures to document discrepancies
Input SDR for discrepant items promptly
Quality … Failed Receipt Inspection Test
Received Item
Normal Item
Only Security Assistance customers can submit SDR claims!
For Official Use Only

5. SDR Office Responsibilities (Unclassified)
The USAF International Logistics Control Office (ILCO) = AFLCMC/WFALB Section (SDR Office)
SDR Office’s Responsibilities are:
Process/validate incoming SDRs (Automated and hardcopy)
Monitor SDR progress & generate follow-ups
To Source of Supply (like ASC, DLA, AFGLSC (ALC), WWRS, PROS, etc)
To Country
Validate & process Source of Supply SDR replies to customers
Provide Source of Supply’s disposition instructions and establish ‘material return suspense dates’
Track SDR exhibit returns from customer notification to receipt at final destination
Monitor SDR decisions to ensure required financial adjustments process
Process transportation reimbursement on approved SDRs
Goal: Obtain fair and equitable SDR resolutions!

6. Letter of Offer and Acceptance
SDR Directives
Letter of Offer and Acceptance (LOA), Standard Terms and Conditions, Section 5.4
DoD M, Security Assistance Management Manual (SAMM), Ch
DLM , Volume 2, Chapter 17, Supply Discrepancy Reporting
Detail SDR processing guideline
SDR submission/reply codes defined Vol 2, Appendix 7.28
AFMAN , International
Affairs and Security Assistance
Management, Ch 6.4.5
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)

7. SDR Directives (continued)
In accordance with the LOA Standard Terms and Conditions, all FMS customers should be directed to submit an SDR whenever they receive discrepant materiel that meets the dollar and time frame threshold*. Customers should be directed to submit a Product Quality Deficiency Report (PQDR) only when the discrepancy falls outside the SDR criteria and is a Safety of Flight issue. * See slide notes for more information.
DoD will not accept claims related to items of $200 or less for overages, shortages, damages, non-shipment, or non-performance. Any claim, including a claim for shortage (but excluding a claim for non-shipment/non-receipt of an entire lot), received after 1 year from passage of title to the article or from scheduled performance of the service will be disallowed by the USG unless the USG determines that unusual and compelling circumstances involving latent defects justify consideration of the claim. Claims, received after 1 year from the date of passage of title or initial billing, whichever is later, for non-shipment/non-receipt of an entire lot will be disallowed by the USG

8. SDR Submission Guidelines
Only Security Assistance customers can submit SDRs
Separate SDR for every discrepant shipment/suffix
For best results…Input into SDR-A Submission Wizard
Other submission options:
Load into SCIP or STARR/PC  Creates skeleton record but SDR invalid until customer s copy of SF364 plus supporting documents to ILCO
Send signed SF364 plus supporting documents to ILCO for manual entry
Value must be >= $200
If value <$200, but if transportation and PC&H charges increase value to >=$200, SDR can be submitted
If <$200, country may submit “Info Copy” SDR
Informs action activity of issue(s) w/shipment or item
No financial restitution
Exception: SDRs for ‘Wrong Item’ and ‘Misdirected Shipments’ will be honored at any $ value
Who can submit SDRs?
Only SA customers via SDR-A, SCIP, STARR/PC—Submission Wizard available to FMS customers only
All other SDR tools accessible to USG and SA users

9. SDR Submission Guidelines (continued)
Original SDRs
Must be submitted within one year after shipment date
Exceptions
Billing errors or total non-receipt – NLT one year after shipment or receipt of initial FMS Billing Statement, whichever is later
Latent defect items – no time limit—must show proof of design/manufacture defect impacting operability of item
Contractor shipment  Submit ASAP
Warranties take precedence over one-year submission timeline
For PROS, shortened warranties are approved by country with price quote (see SAMIS narratives)
Some warranties expire if SDR materiel not received at vendor within one year
Original SDRs (cont)
Must be submitted within one year after shipment date
Exceptions
Billing errors or total non-receipt - no later than one year after shipment or receipt of initial Foreign Military Sales Billing Statement (DD Form 645A), whichever is later
Latent defect items – no time limit
For contractor shipments (e.g. PROS SDRs)
Warranties take precedence over SDR submission timeline
Shortened warranties are approved by country during price quote approval (see SAMIS narratives)
Some warranties expire if SDR materiel not received at vendor within one year

10. SDR Submission Guidelines
(continued)
Resubmitted SDRs
Customer may resubmit if disagree w/original SDR decision
Within 45 days of original SDR denial date if no materiel return
Within 90 days of original SDR denial date if materiel return
Must include additional justification (supporting docs)
Timeline based on SDR reply/denial date on:
Notification of SDR completion
SDR-A customer query reply tab
Back of SF364 (Report of Discrepancy), block 24C
Contested SDRs
Customer may contest if disagree w/resubmit SDR decision
Within 45/90 days of resubmission SDR denial date
Additional justification required
Contested SDR decisions are final
Resubmitted SDRs
If customer not satisfied with original SDR decision, may resubmit; claim must be received:
Within 45 days of original SDR denial date if no materiel return
Within 90 days of original SDR denial date if materiel return
Must include justification (supporting documents)
Timeline based on SDR reply date on:
Notification of SDR completion
Customer query reply tab
Back of SF364, block 24C
Contested SDRs
If customer not satisfied with resubmitted SDR decision, may contest the SDR using above criteria

11. Supporting Documentation
ALL SDRs (except non-receipt/billing) must have:
Shipping documents that came with asset (e.g. DD Form 1348, Packing Slip, Receiving Report)
Photos to support claim
Detail description of problem/defect
All available test/failure results
NON-receipt SDRs freight forwarder statement
Billing SDRs  billing statement
Resubmission/Contested SDRs must include:
Rationale for challenging USG denial
Additional justification/clarification to support claim
ALL SDRs (except non-receipt, billing) must have:
Justification – e.g. shipping documents, pictures
NON-receipt SDRs - freight forwarder statement
Billing SDRs - billing statement
Packaging SDRs
Carrier’s bill of lading noting damage
Shelf Life SDRs
Details such as shelf life code, date cured, date packed, date manufactured, serial #, warrant
Lot/batch number, serial number, manufacture name, warranty expiration date (if available)

12. How Does SDR Process Work?
AFSAC Online
CUSTOMER
Identifies discrepancy
Gathers shipping documents, test results, photos
Submits SDR claim in AFSAC Online ‘SDR Submission Wizard’ or signed SF364 to SDR office
SUPPLIER
Reviews claim
Provides decision
SDR OFFICE
Validates claim
Passes to supplier for resolution
SDR OFFICE
Validates supplier response
Notifies customer of action required and/or closure decision
Provides disposition instructions
Monitors SDR until materiel returned/financial adjustments processed
CUSTOMER
Receives SDR decision via
Complies with closure notice
If non-concurs—resubmits within 45 days.
For Official Use Only

13. AF SDR Automation (SDR-A) https://afsac.wpafb.af.mil
Web-based tools hosted on AFSAC Online
SDR Submission Wizard
Customer Query (SF 364 and DD form A)
Monthly Report
SDR Metrics
Tutorials and Customer Handbook (no password required)
Customer receives notifications/follow-ups
SDR receipt acknowledgements
SDR decisions
Requests for additional information (F-ups at 15, 30, & 45 days)
Requests for materiel return (F-ups at 60, 120, & 180 days)
Notification of SDR Closure (SDR approval/denial decision)
For best results, use Internet Explorer browser
For access/display issues,
Click on Feedback form in AFSAC Online or
Automated 8 major SDR processes
Submit SDRs*
Validate/process SDR submissions/replies
Manual review/actions - exception management
Electronic Data Interface (EDI) Communications with DAASC
Online Reply Processing
Customer Notifications via *
On-line Queries/Reports*
Automated Follow-Up Processing*
General Maintenance Tools for ILCO
Implemented 30 November 2005

14. AFSAC Online https://afsac.wpafb.af.mil
Select SDR

15. AFSAC Online SDR Tools

16. SDR Submission Wizard Features
Wizard based screens
Online help screens
Online validation/edits
Select requisition/shipment/ delivery lines to pre-fill data
Select up to three discrepancy/ action codes
Upload attachments
Real-time on-line processing
1st Screen
Confirmation that SDR has been submitted.
Click “View SDR” to view and/or print SF364
Final Screen
NOTE: After your report is submitted, it can be modified using the Corrected Tab.

17. Customer Query Features
Enter any combination of these parameters
Country/Case/Line/SDR #
Doc #/NSN
Multiple review categories
Open Submission
Replies/Not Complete
Replies/Complete
Click on the “Search” button to see matching SDRs

18. Customer Query Features (continued)
Summary includes:
Document Number/Suffix
Current SDR Status
SDR Value
Discrepancy Codes
SF364 and DD Fm A
Printer friendly option
Detail tabs in query results
Remarks
Attachment
SDR Replies
Requisition/shipping/billing history
SDR Dates
Hover help on key elements
Online help button

19. Monthly Report Features
Available 1st day of every month
All open and completed SDR status for queried month
Materiel return due-in dates on open report
Billing adjustments column on completed section of report
Completed SDRs show with ‘*’ on 1st month drop off after 3 months
Printer friendly option/Excel download feature

20. AFSAC Online SDR Metrics
To Access Metrics…
Click On Apps Link Or
Click View Details

21. AFSAC Online SDR Metrics
Select to choose 1 of 13 SDR Metrics
Multiple query options
Drill-down by country, timeframe, supplier, SOS
Query all SDRs or drill-down by Original/Resubmit/Contested
Click to build PowerPoint chart
Chart backup data available in excel spreadsheet

22. AFSAC Online SDR Metrics

23. AFSAC Online SDR Metrics--continued

24. AFSAC Online SDR Metrics--continued

25. AFSAC Online SDR Metrics SDR Activity Summary

26. How SDR Office Can Help You?
Provide SDR policy guidance and processing expertise
Collaborate with partners to achieve fair and equitable SDR resolutions
FMS Customers
USAF Country Teams
DoD Supplier/Vendors
Train partners on SDR processes and automated tools
Support/attend country reviews

27. SDR Office Points of Contact
Country Leads
Dana Rodgers
(937)
Deborah Johnson
(937)
Ron Byrd
(937)
Over-Aged
Tammie Smart
(937)
Contested SDRs
Tammy Jaques
(937)
Financial Closure
Tim Hecht
(937)
SDR Tools & Tech Support
Anita Smith
(937)
Customer Service
For Official Use Only

28. Summary SDRs submissions FMS customers should:
Failure to submit SDR properly & timely may prevent compensation and/or void contractor warranty timelines
Always …
Inspect items upon receipt
Provide photos and detailed supporting documentation
Submit as soon as possible after receipt
SDR decisions binding only if issued via official SDR-A reply
FMS customers should:
Use online tools to submit and manage SDR program
Monitor notifications to ensure timely response
Input correction into submission wizard to provide additional info
Return materiel as directed—provide proof of return to IL
Review closure notification s for SDR decisions
Utilize detail tutorials available on AFSAC Online
(No user id/password required)
Click on ‘Tutorials’ in Application Links on left side of page

29. To Our Partner Nations … Since 1978!
SDR Process Overview
Summary
questions about SDR Processing to:
Air Force Security and Cooperation Directorate (AFSAC) Delivering Airpower Capability
To Our Partner Nations … Since 1978!
Priorities:
Take care of people
Deliver capability
Meet commitments
Maintain strong partnerships
Improve