1. 01/09/0806/01/2009 PERU July 2009

2. 01/09/0806/01/2009 Logistics Orientation SAM-I

3. 01/09/0806/01/2009 Bandaria Execution As Required Implementing Agencies Implementing Agencies DoD Resources Procurement Services Training As Required Freight Forwarder Freight Forwarder

4. 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

5. 01/09/0806/01/2009

6. 01/09/0806/01/2009 System Technical Assistance Training Publications Spares Support Equipment Follow-on Support Maintenance Support Equipment Munitions Training Technical Assistance Publications Spares/ Repair Parts Modifications Initial Support Total Logistics Support

7. 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 significant impact on mission accomplishment. Primary (Major End Items)

8. 01/09/0806/01/2009 Primary & Secondary Item Management Primary Items Secondary Items

9. 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

10. 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

11. 01/09/0806/01/2009 Countries with Logistics Liaisons at 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)

12. 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 Distribution Centers (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 Programs Office (J-4)

13. 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

14. 01/09/0806/01/2009 Internet FEDLOG Commercial Products Cataloging  Assignment of national stock numbers  Accumulation of procurement data  Assignment of inventory manager

15. 01/09/0806/01/2009 NSN Configuration Federal Supply Classification Code ClassNational Codification Bureau Code National Item Identification Number (NIIN) Random Number Sequentially Assigned By DLIS 29 20 00 004-6788 00 004-6788 Group Engine Electrical USA

16. 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

17. 01/09/0806/01/2009 Logistics Communications ILCOs ILCS D efense A utomatic A ddressing S ystem C enter MISIL (Navy) SAMIS (AF) CISIL (Army)

18. 01/09/0806/01/2009 Blanket Orders & CLSSA cases Defined Order cases Army Item Manager Army Navy Item Manager Navy Item Manager Air Force Item Manager Air Force Item Manager DLA Supply Centers DLA ILCOs FMS Customer FMS Customer ICP ILCO ICP ILCO MILSTRIP Requisition

19. 01/09/0806/01/2009 MILSTRIP to LOA Relationship

20. 01/09/0806/01/2009 DD FORM 1348m 30313233 34 45 46 4748 4950 180 COUNTRY MARK FOR CASE FREIGHT FORWARDER OFFER RELEASE CUSTOMER SERVICE DELIVERY TERMS SPONSORING MILDEP 2 347978 REQUISITION SYSTEM DOCUMENT 52928783551 77 DOCUMENT NUMBERSUPP ADD SV REQUISITIONER DATESERIALSVORFFCASE S U F 303132 33 3536 3738 394041 42 43 44 4546 47 48495034 3031323334 454647 48495035 TYPE ASSISTANCE 44 DEMAND 44

21. 01/09/0806/01/2009 ICP Purchaser DAASC ILCO Contractor Depot Requisition Process

22. 01/09/0806/01/2009 Follow-On Support Methods  Internal  Third country  U.S. commercial  FMS case

23. 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

24. 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

25. 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.

26. 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

27. 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

28. 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

29. 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.

30. 01/09/0806/01/2009 FMS Materiel Movement PURCHASER FREIGHT FORWARDER DEPOT CONTRACTOR US military or commercial carrier Customer military or commercial carrier

31. 01/09/0806/01/2009 2 5 9 8 5 7 Military Origin Commercial ILCO ICP POE POD 4 Freight Forwarder Staging FMS Delivery Term Codes

32. 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)

33. 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)

34. 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

35. 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

36. 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

37. 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

38. 01/09/0806/01/2009 Categories of Discrepancy Reports  Supply discrepancies  Product quality deficiencies  Transportation discrepancies  Financial discrepancies

39. 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.

40. 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

41. 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

42. 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

43. 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

44. 01/09/0806/01/2009 Logistics Orientation SAM-I