1. DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE Materiel Receipt Acknowledgement (MRA) and the Exclusion for The Exchange Supply PRC Meeting 15-2 June 24, 2015 Mary Jane Johnson Defense Logistics Management Standards Office.www.dla.mil/j-6/dlmso/

2. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 2 BLUF: Should the MRA exclusion for the Exchange (formerly Army and Air Force Exchange Service (AAFES)) be removed? MRA Policy: DODM 4140.01, Vol 5, DoD Supply Chain Materiel Management Procedures: Delivery of Materiel, Feb 10, 2014, Enclosure 3: – Paragraph 8.a(3) requires DOD Components to “Process materiel receipt acknowledgement (MRA) transactions to acknowledge receipt or nonreceipt of shipments of DoD wholesale stocks and DLA Disposition Services stocks and, in part, to shipments of GSA wholesale stocks in accordance with References (q) and (r).” – Paragraph 8.b.(5) requires receiving activities will “Provide MRA for receipt of all shipments of materiel, whether requisitioned (pulled) or pushed to them, from any supply source, e.g., issues from stock; direct or prime vendor deliveries; or issues from DLA Disposition Services according to References (p) and (q).” Exchange Exclusion: MILSTRAP Chapter 6, and DLMS, Volume 2, Chapter 10, currently have an exclusion from the MRA process for shipments to the Exchange (DoDAACs HX1_, HX2_, HX3_, and HX4_) MRA EXCLUSION FOR THE EXCHANGE

3. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 3 Background: When reviewing the history of the Exchange exclusion, DLMSO found the following comment to the 1988 Proposed MILS Change Letter (PMCL) for Approved MILS Change Letter (AMCL) 11/15 for Revised MRA: – 1988 Exchange comment to proposed revised MRA procedures – “ The Headquarters, Army, and Air Force Exchange Service (AAFES, DoDAAC HXYAA, Supplemental Address) holds responsibility for 470 individual requisitioners with DoDAACs HX1XXX, HX2XXX, HX3XXX, and HX4XXX. AAFES is a separate non- appropriated fund instrumentality of the U.S. Government. As such, AAFES has its own accounting system, within which it accounts for appropriated funds furnished by the Army and Air Force. The terms governing the logistical support furnished AAFES by DPSC ( now DLA Troop Support) are contained in the Inter-Service Support Agreement No. SB0100-84153-002 between DPSC and AAFES.” – “Because of the unique circumstances described above, request AAFES be granted an exception to the proposed expanded MRA requirements as stated in PMCL.” – 1988 Disposition: " Concur. Will include exception for AAFES Requisitions." HISTORY OF THE MRA EXCHANGE EXCLUSION

4. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 4 Is the exclusion still valid? After reviewing the 1988 basis for the Exchange exclusion, DLMSO concluded the exclusion should be reexamined – The type of funding used by the Exchange does not seem to justify an exclusion from MRA – The Exchange should not be treated as a non-DoD government agency. Further, MRA has emerged as a tool to support audit readiness, and is receiving focused attention from OSD, DLA, and the Services. In addition, there are new in-transit rules: Under the February 2014 DODM 4140.01, Volume 5, In-transit Accountability policy: – “The owning DoD Component directing materiel into an in-transit status will retain accountability within their logistics records for that materiel (to include resolution of shipping and other discrepancies) until the consignee or receiving activity formally acknowledges receipt.” – “The selling DoD Component will retain an accountable record of in-transit materiel until the consignee or receiving activity formally acknowledges receipt.” MRA EXCLUSION FOR THE EXCHANGE

5. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 5 DLMSO provided the MRA Exchange exclusion historical background to DASD SCI for their consideration to revisit the exclusion – DLMSO recommended that the Exchange exclusion be considered for removal – If not removing the Exchange exclusion, DLMSO recommended that the Navy and Marine Corps exchanges should also be excluded from MRA process for consistency April 16, 2015, DASD SCI (Ms. Jan Mulligan) asked “What is the DLA Troop Support and DLA Comptroller position on this?” April 16, 2015, DLMSO forwarded DASD SCI question to DLA J3 to obtain the DLA Troop Support and DLA Comptroller position. Current Status: Awaiting DLA Feedback. STATUS OF MRA EXCHANGE EXCLUSION

6. Deliver the right solution on time, every time WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE 6 MRA Policy: DODM 4140.01, Volume 5, DoD Supply Chain Materiel Management Procedures: Delivery of Materiel – http://www.dtic.mil/whs/directives/corres/pdf/414001m/414001m_vol05.pdf http://www.dtic.mil/whs/directives/corres/pdf/414001m/414001m_vol05.pdf MRA procedures: – DLM 4000.25, Defense Logistics Management Standards (DLMS), Volume 2, Supply Standards and Procedures, Chapter 10 – DLM 4000.25-2, Military Standard Transaction Reporting and Accountability Procedures (MILSTRAP), Chapter 6 – www.dla.mil/j-6/dlmso/elibrary/manuals/dlm/dlm_pubs.asp www.dla.mil/j-6/dlmso/elibrary/manuals/dlm/dlm_pubs.asp MRA Policy and Procedures URLs