Attachment H - DLA Energy P-11.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

DLA Energy-P-11 April 7, 2020

SUBJECT: ENERGY AEROSPACE

1. PURPOSE. This document prescribes the procedures for the storage, transport, packaging, forecasting, inventory, and financial management of DLA Energy Aerospace (Energy Aerospace) products and Property, Plant & Equipment (PP&E) financed by the Defense Wide Working Capital Fund (DWWCF). A listing of Energy Aerospace product national stock numbers (NSNs) (propellants, oxidizers, cryogens, chemicals, gases, and related items) is obtained by contacting AerospaceEnergyInfo@dla.mil.

2. APPLICABILITY. This instruction is applicable to Energy Aerospace Storage Points (EASPs) and Defense Fuel Support Points (DFSPs) maintaining DWWCF owned inventory, authorized Energy Aerospace customers who receive product issued from an EASP/DFSP or procured by Energy Aerospace and authorized Energy Aerospace customers who receive product directly from the supplier as a customer direct sale.

3. DEFINITIONS. See Glossary.

4. RESPONSIBILITIES. See Enclosure 1.

5. PROCEDURES. See Enclosure 2.

6. RELEASABILITY. Cleared for public release. Available on the DLA Energy Portal at https://dla.deps.mil/dod/dla/dlaenergy/sitepages/home.aspx.

7. EFFECTIVE DATE. This guidance is effective upon signature of the approving authority.

STEPHEN R. DAVIS

Colonel, USA Chief of Staff

OPR: DLA Energy-FEM, Energy Aerospace OCR: DLA Energy-BA, Business Process Support Directorate

DLA Energy P-11 April 7, 2020

TABLE OF CONTENTS

ENCLOSURE 1: RESPOSIBILITIES ……………………………………………………………4

1. DLA ENERGY AEROSPACE ……………………………………………………………4

2. DLA ENERGY PROGRAM BUDGET DIVISION ……………………………………... 4

3. MILITARY SERVICE CONTROL POINTS/MAJOR COMMANDS/HIGHER

HEADQUARTERS OF FEDERAL CIVILIAN AGENCIES OR COMMERCIAL

COMPANIES AND HEADS OF ACADEMIC INSTITUTIONS…………………….…..4

4. ENERGY AEROSPACE CUSTOMERS………………………………………………….4

5. RESPONSIBLE OFFICER, TERMINAL MANAGER, EASP MANAGER……………..6

ENCLOSURE 2: PROCEDURES…………………………………………………………….….7

1. AUTHORIZED CUSTOMERS……………………………………………………….…..7

2. CUSTOMER FORECASTS OF ENERGY AEROSPACE REQUIREMENTS .………...8

3. APPLICATION OF FORECAST OF ENERGY AEROSPACE REQUIREMENTS…

4. FINANCIAL MANAGEMENT …………………………………………………………..9

5. CUSTOMER BILLING FOR ENERGY AEROSPACE REQUIREMENTS ...…………10

6. INDIVIDUALS RESPONSIBLE FOR THE ACCOUNTABILITY OF DWWCF

OWNED ENERGY AEROSPACE INVENTORY……………………………………...10

7. GENERAL DWWCF OWNED ENERGY AEROSPACE PRODUCT INVENTORY

ACCOUNTABILITY PROCESSES AND PROCEDURES ...………………………… 13

8. RECEIVING ENERGY AEROSPACE PRODUCTS…………………………….……..14

9. RECORDING PRODUCT RECEIPT AT AN EASP/DFSP…………………………….15

10. SHIPMENT OF PRODUCT BETWEEN EASPS/DFSPS………………………………17

11. TRANSPORTATION DISCREPANCIES IN VENDOR DELIVERIES AND

SHIPMENT RECEIPTS…………………………………………………………………18

12. AUTHORIZED SALES FROM AN EASP/DFSP………………………………….…...18

13. RETURN AND SUBSEQUENT RE-SALE OF PRODUCT TO AN EASP/DFSP….…19

14. RECORDING A RETURN OF PRODUCT TO AN EASP/DFSP……………………...19

15. INVENTORY MEASUREMENT METHODS…………………………………………20

16. EASP/DFSP PHYSICAL AND BOOK INVENTORY PROCESSES………………….21

17. VARIANCES OF DWWCF OWNED ENERGY AEROSPACE INVENTORY………22

18. EASP/DFSP REPORTING PROCEDURES ……………………………………….…24

19. REPORTING REGRADED/CONVERTED DWWCF OWNED PRODUCTS…….….25

20. ACCOUNTING FOR DWWCF OWNED OFF-SPECIFICATION OR EXCESS

PRODUCT ………………………………………………………………………….…25

21. REPROCESSING OF CUSTOMER OWNED HYPERGOLIC PRODUCTS ……….26

22. TRANSPORTATION PROCEDURES FOR SHIPMENT, RETURN OR MOVEMENT

OF EMPTY, WITH RESIDUE, PARTIAL, AND FULL CONTAINERS………….…26

23. SUSTAINMENT RESTORATION AND MODERNIZATION (SRM) AT AN

ENERGY AEROSPACE DFSP ………………………………………………………30

GLOSSARY ………………………………………………………………………….………31

REFERENCES …………………………………………………………………………………41

TABLES:

Table 1: ……………………………………………………………………………………..35 Table 2: ..……………………………………………………………………………………38

FIGURES:

Figure 1: …………………………………………………………………………………… 23 Figure 2: …………………………………………………………………………………… 27 Figure 3: …………………………………………………………………………………… 29

ENCLOSURE 1: RESPONSIBILITIES

1. DLA ENERGY AEROSPACE.

a. Hold operational authority and responsibility for the entire supply chain for Energy Aerospace products managed by DLA Energy.

b. Perform all functions related to end-to-end support of customers regardless of whether performed in-house or by DLA Energy suppliers.

c. Maintain responsibility for the management oversight of DWWCF-owned inventory of Energy Aerospace products, as well as functions related to providing total logistics support to customers for Energy Aerospace products. This includes requirements consolidation, demand management, procurement, packaging, and transportation.

d. Ensure availability of this document to all Energy Aerospace customers.

e. Formulate and disseminate policy implementation instructions and procedural guidance covering those operations not specified in detail in this document.

2. DLA ENERGY PROGRAM BUDGET DIVISION.

a. Be responsible for the financial management functions related to the supply and sales to customers of Energy Aerospace products.

b. Provide Energy Aerospace customers with information relative to the submission of funding.

3. MILITARY SERVICE CONTROL POINTS (SCPs) AND/OR MAJOR COMMANDS, HIGHER HEADQUARTERS OF FEDERAL CIVILIAN AGENCIES, HEADQUARTERS OF

COMMERCIAL COMPANIES, AND DEPARTMENT HEADS OF ACADEMIC

INSTITUTIONS.

a. Provide Energy Aerospace with timely information as required for determination of requirements and necessary supply action for customers under their purview.

b. Monitor and control any aspects of Energy Aerospace operations that fall under their jurisdiction, control, or influence.

4. ENERGY AEROSPACE CUSTOMERS.

a. Under the authority delegated in DoDD 4140.25, DoD Management Policy for Energy Commodities and Related Services and DoD Manual 4100.39, Federal Logistics Information System (FLIS) Procedures, Volume 13, DLA Energy is the DoD Integrated Material Manager (IMM) for all Federal Stock Class (FSC) 9135 and certain 6830 and 9130 items (liquid propellants/oxidizers and compressed/liquefied gases) referred to in this document as “Energy Aerospace products.” DoD customers who require Energy Aerospace products in the performance of government contracts shall obtain those products from Energy Aerospace.

Federal Civilian customers may request support from Energy Aerospace. Commercial customers who require Energy Aerospace products and services may request support from Energy Aerospace under the authority of and according to the Commercial Space Launch Act, (51 U.S.C. § 50901, et. seq.). US export companies with a valid Department of State issued Export License can buy Energy Aerospace hydrocarbon based fuels using the 10 USC 2922e(d) Public Interest Determination. Contracting offices are responsible for incorporating appropriate contract provisions into their contracts that require or permit U.S. Government contractors to obtain Energy Aerospace products from Energy Aerospace. Forms used to facilitate Energy Aerospace processes identified in TABLE 1 entitled, “Forms used in Energy Aerospace.”

b. The criteria for selecting and designating items for inclusion in the Energy Aerospace management category are as follows:

(1) Items centrally procured and managed liquid or gaseous propellant fuels and oxidizers used in rockets, missiles, or spacecraft, as well as related items. Related items will be those chemicals and chemical products used in propellant loading/handling operations or items which are homogenous to, and at most requiring activities and grouped with such items for management, storage, and handling.

(2) Other gas and chemical items included in authorized agreements with other government agencies, irrespective of usage, and items for which DLA Energy Aerospace is the local purchase agent are included in this management category.

c. All customers requiring Energy Aerospace products shall comply with the policies and procedures contained in this document, to include utilization of the forms listed in TABLE 1.

Use and/or substitution of Military Service, agency-specific, or company-specific documents and forms instead of the ones mandated by this document is not authorized, unless otherwise noted.

In addition, use of discontinued, rescinded or superseded DLA Energy forms is not authorized.

DoD Forms may be obtained from: https://www.esd.whs.mil.Directives/forms or by contacting the Energy Aerospace Resolution Specialist.

d. In the near future Energy Aerospace will deploy automated systems for inventory control, ordering and product acceptance. Such applications may include the Enterprise Business Systems (EBS), Fuels Manager Defense (FMD), Enterprise External Business Portal (EEBP) and Wide Area Workflow (WAWF). Further guidance implementation will provide accountability and custodial responsibilities for Defense Wide Working Capital Fund (DWWCF) inventory and government furnished equipment. DLA Energy will implement these systems and will work with all customers (Direct Delivery and Into-Stock) for program installation and training. The future processing methodologies may require both EASP/DFSP input and upload to DLA Energy accounting servers via a high-speed web/internet-based application or direct input using DLA Energy provided processing applications.

e. Comply with this document, as well as other policy implementation instructions and procedural guidance, that applies to products and services managed by Energy Aerospace.

Ensure forecasts of projected requirements are as accurate as possible and submitted in a satisfactory manner following applicable issuances. Submit applicable Department of Defense Activity Address Code (DODAAC), Federal Activity Address Code (FEDAAC) or DLA commercial-DODAAC with projected requirements.

f. Shall not procure requirements submitted to Energy Aerospace and awarded under a DLA Energy contract from other than the DLA Energy supplier without written consent of the cognizant Energy Aerospace Contracting Officer. Be responsible for payment of any valid contract claims resulting from the customer’s action/inaction, or that of their employees, representatives, agents, or contractors.

5. RESPONSIBLE OFFICER (RO), TERMINAL MANAGER (TM), AND ENERGY

AEROSPACE STORAGE POINT (EASP) MANAGER.

a. The Energy Aerospace FEM Deputy Director serves as the Energy Aerospace Accountable Officer (AO) for all Energy Aerospace Capitalized products. The RO, TM and EASP Managers will ensure complete oversight for the proper handling and accountability of Defense Wide Working Capital Fund (DWWCF) owned Energy Aerospace products in support of the Energy Aerospace AO.

b. Where authority to sign documents has been delegated, ensure the individuals signing Energy Aerospace documents comply with this document and applicable law and policies concerning inherently governmental functions.

ENCLOSURE 2: PROCEDURES

1. AUTHORIZED CUSTOMERS.

a. Energy Aerospace customers may receive product from either existing DWWCF-owned inventory stored at and distributed from an EASP/DFSP or shipped directly from the Energy Aerospace supplier as a customer direct sale.

b. Authorized customers encompass:

(1) All the Military Service Departments and Defense Agencies/Activities.

(2) Federal Civilian Agencies.

(3) Foreign Military Sales (FMS) customers.

(4) Those customers who have an existing properly executed sales contract with Energy Aerospace under a specific statutory or regulatory authority, including:

(a) U.S. Government contractors authorized according to Federal Acquisition Regulation (FAR) Part 51 (Use of Government Sources by Contractors, current version), Commercial companies purchasing Energy Aerospace products and/or services in support of a government contract must identify the contracting agency and contract number for which the product and/or service will support and Energy Aerospace must have received a request and authorization from the cognizant contracting office under the FAR Part 51.

(b) U.S. companies in the space and space-related industries as permitted under 51 U.S.C. § 50901, et. Seq. (Commercial Space launch Act). The commercial company must identify the specific space or space-related program(s) that their request for product and/or services from Energy Aerospace is supporting. Where it is not clear the company is a U.S.

company, additional documentation may be required before supplies and/or services are provided under an Energy Aerospace contract.

(c) Commercial companies supported under the authority of the 41 CFR § 102- 38.105, (Federal Management Regulation (FMR)), are required to submit additional documentation as to the specific program(s) they are supporting.

(d Commercial companies with Department of State (DoS) export license authority utilizing public interest determination (PID) procedures identified in the Defense Grant and Agreement Regulatory System (10 U.S.C &2208, current version).

2. CUSTOMER FORECASTS OF ENERGY AEROSPACE REQUIREMENTS.

a. It is essential for the proper planning of future contract actions as well as placement of orders under existing contracts that all requirements are submitted in a satisfactory manner to Energy Aerospace. Requirements fall into two broad categories: potential requirements that could possibly materialize from existing or future programs and firm requirements for known, existing programs.

b. Energy Aerospace annually contacts existing customers to request submission of their forecast for each Energy Aerospace product the customer will require. Customer forecasts will cover a minimum three years of requirements by month for all Energy Aerospace items. The forecast period will begin under the directions established in the Energy Aerospace forecast letter. SCPs and/or major commands, Federal Civilian Agency headquarters, commercial organization headquarters, and department heads of academic institutions are provided an information copy of the Energy Aerospace annual request to customers for submission of their forecasted requirements.

c. Annual forecasts for Energy Aerospace products and services are prepared and submitted on a DD Form 2053, DLA Energy Requirements Worksheet.

(1) Quantities will be in accordance with the unit of issue for the applicable product and National Stock Number (NSN) as catalogued in the DLA Logistics Information Service (DLIS).

(2) Enter the program or project name or number on Page 3/Exercise/Operation Name:

block. Identify the requirement as either known, existing program requirement, or future potential program requirement.

(3) Include any relevant information or clarification, such as a brief explanation concerning any major changes to requirements from previous years, an explanation when there are certain requirements based on anticipated contract awards, and discussion of any host nation agreements relating to imposition of taxes/duties, etc.

(4) For commercial customers, provide a concise explanation of the intended specific use of the product. Use continuation sheets for additional information, if necessary.

(5) Provide the sold-to (and bill-to if different) DODAAC, FEDAAC or DLA Commercial DODAAC.

(6) Provide the ship-to DODAAC. Fully describe the shipment information, to include the specific ship to address, Point of Contact (POC) name, telephone number, and e-mail address. If the ship to address is to a specific building, identify the installation by its full address along with the specific building number. If the individual who can provide specifics relative to the requirement is different than the individual who will receive the shipment, provide the POC name, telephone number, and email address for that individual.

(7) Provide the method of delivery required and the containerization, such as 4BW cylinder, bulk trailer, etc.

(8) Provide details regarding any additional services required, such as cylinder maintenance and repair or hot fill of tanks. Include details on storage requirements, either customer-furnished or those furnished under contract by the Energy Aerospace supplier.

(9) One consolidated form for each individual customer location is required.

d. Customers submit the DLA Form 2053 through their respective Customer Account Specialist (CAS) and copy to the Service Control Point (SCP) and/or major command, Federal Civilian Agency headquarters, commercial organization headquarters or academic institution department heads, as applicable.

(1) SCPs and/or major commands, Federal Civilian Agency headquarters, commercial organization headquarters, and department heads of academic institutions will carefully review requirements, eliminate duplications, ensure funds availability, and assure proper documentation for the forecast form (to include program description, funds cite, DODAAC, DLA Commercial DODAAC or FEDAAC, Fund Code and Signal Code).

(2) Reviewing activities will forward an electronic copy or paper copy of forecasts on a timely basis to Energy Aerospace with a letter of transmittal stating that they have reviewed and approved the customer’s forecast.

e. All customers shall notify Energy Aerospace immediately of any cancellations, reductions, increases and/or changes in requirements. Report any revisions to previously submitted forecasts by electronic transmission (facsimile or e-mail) and clearly reference the previous forecast submission in sufficient detail to permit identification of the revised forecast.

3. APPLICATION OF FORECAST OF ENERGY AEROSPACE REQUIREMENTS.

a. Energy Aerospace will review individual customer forecasts compared to the customer’s historical usage to ensure that estimated requirements are not under or over estimated. If requested, the customer will provide additional information regarding the estimated quantities shown on the DD Form 2053.

b. To achieve the economies of scale from a centralized procurement process, Energy Aerospace will consolidate customer forecasts for the same or similar Energy Aerospace products for the solicitation and award of Energy Aerospace contracts.

4. FINANCIAL MANAGEMENT. Financial Management policy for all of DLA Energy is contained in DoDM 4140.25, DoD Management of Energy Commodities: Mobility Energy Volume 7, Section 7. Reimbursement to the DWWCF for material sold will be at the established price for the respective product at the time of shipment (shipment date) for each category of customer.

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5. CUSTOMER BILLING FOR ENERGY AEROSPACE REQUIREMENTS.

a. Energy Aerospace operates on a reimbursable basis.

b. DoD Customers are billed via inter-fund once a week in accordance with the Military Standard Billing System (MILSBILLS) procedures.

c. Federal Agencies other than DOD are billed in accordance with the Intra-Governmental Payment and Collection (IPAC) Systems. In the near future, Federal Agencies will be billed utilizing the G-invoicing system and processes.

d. Non-Federal customers are billed manually via an SF-1080 once a month.

6. INDIVIDUALS RESPONSIBLE FOR THE ACCOUNTABILITY OF DWWCF-OWNED

ENERGY AEROSPACE INVENTORY.

a. The Energy Aerospace AO is responsible for the overall accountability and management oversight of all DWWCF-owned Energy Aerospace product inventory. The Energy Aerospace AO works closely with the Resolution Specialists to assure: Monthly Inventory Transaction Reports (MITRs) submitted by the Energy Aerospace EASPs/DFSPs on a timely basis; excessive variances are satisfactorily investigated and documented; and all inventory transactions are validated and reconciled IAW DLA Energy P-11, Energy Aerospace.

b. Segregation of duties is a commonly used and widely accepted internal control and business practice that involves division or segregation of key duties and responsibilities among different people. This internal management control reduces risk of error and minimizes the potential for a single individual to affect DWWCF inventory management accuracy and integrity.

(1) The three key areas of segregation of duties are physical asset custody, transaction processing, and transaction approval. Throughout this document, the individual at the Energy Aerospace EASP/DFSP who has physical asset custody is the DWWCF Inventory Operator/Handler. The individual who records the transaction(s) at the EASP/DFSP is the DWWCF Inventory Transaction Recorder. The individual approving the transaction(s) is the DWWCF Inventory Transaction Approver and Adjustment Authority.

(2) Personnel who perform any one of these three functions identified above at an Energy Aerospace EASP/DFSP that stores and distributes DWWCF-owned Energy Aerospace products shall not be responsible to perform either of the other two functions, unless otherwise granted a waiver, as discussed below.

(3) It is the Energy Aerospace AO’s responsibility to verify/confirm that each EASP/DFSP has an assigned DWWCF-Owned Inventory Operator/Handler, a DWWCF-Owned Inventory Transaction Approver and Adjustment Authority, as well as a DWWCF-Owned Inventory Transaction Recorder.

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(4) EASPs/DFSPs who cannot comply with this segregation of duties policy due to operational constraints shall request a waiver/exception to policy, in writing, from the Energy Aerospace AO. The request shall fully explain the method of risk mitigation that the EASP/DFSP shall undertake in order to ensure proper accountability of DWWCF Energy Aerospace inventory. Provide full description of actions taken to satisfy the intent of the policy implementation or procedural guidance before submitting a request for waiver/exception. In the instance of exception requests, the EASP/DFSP will state specific reasons why corrective actions cannot be taken. Both the EASP/DFSP and the Energy Aerospace AO will retain a copy of the Memorandum on file in accordance with DLA Energy P-11.

c. The same appointment procedures that apply to ROs and TMs who manage DWWCF owned bulk petroleum products, as detailed in DLA Energy P-7, Accountability and Custodial Responsibilities for Defense Wide Working Capital Fund (DWWCF) Inventory and Government Property, current version, also apply to Energy Aerospace RO/TM/EASP Managers. For EASPs located at commercial customer facilities, a principal of the commercial company shall appoint an EASP Manager, in writing, which shall have the same responsibilities and perform the same functions as a Responsible Officer or Terminal Manager, unless otherwise noted herein. The Energy Aerospace AO shall maintain a complete list of RO/TM Manager Appointments, as well as individuals designated as EASP Managers under DLA Energy Aerospace contracts that have EASP responsibility as a contractual requirement.

d. The RO/TM/EASP/DFSP Managers serve as extensions of the Energy Aerospace AO in ensuring proper accountability and oversight of DWWCF-owned products at EASPs/DFSPs.

Collectively, the managers are the individuals who support the Energy Aerospace AO with regard to proper on-site, day-to-day accountability of DWWCF-owned Energy Aerospace products.

(1) The definitions, duties and responsibilities for an RO as well as for a TM under a DLA Energy Contractor-Owned, Contractor-Operated (COCO) production facility are as stated in DLA Energy P-7. Terminal Managers identified by terms of the contract are contractually obligated to account diligently for and safeguard Government property including DWWCF Energy stocks and Government furnished equipment/facilities at contractor operated EASPs/DFSPs. EASP Managers are responsible to comply with the approved Sales contract terms and Energy Aerospace published guidance.

(2) As it pertains to segregation of duties:

(a) The RO/TM/EASP Manager, serving as the DWWCF-Owned Inventory Transaction Approver and Adjustment Authority, shall sign documents to approve DWWCF-owned Energy Aerospace inventory quantities and/or quality adjustments; approve transaction submissions; approve end-of-month book and physical inventory reconciliation and operating gain/loss calculations; initiate operating gain/loss investigations as required by DLA Energy policy; and, periodically observe and confirm DWWCF-owned Energy Aerospace physical inventories.

(b) The Energy Aerospace DWWCF-Owned Inventory Transaction Recorder (normally an accountant) shall reconcile DWWCF-owned inventory transaction documents with transaction data entries on all inventory and sales documents; calculate manually gauged

DWWCF petroleum product inventory quantities; prepare trial reconciliation of end-of-month DWWCF book and physical inventories; and, calculate DWWCF-owned Energy Aerospace inventory operating gain/loss.

(c) The Energy Aerospace DWWCF-Owned Inventory Operator/Handler shall provide overall operational handling of DWWCF-owned Energy Aerospace product inventories;

receive, store, transfer, and issue DWWCF-owned Energy Aerospace product inventory; and, ensure procedural compliance to achieve accurate DWWCF-owned Energy Aerospace product inventory quantity determinations.

(3) Where the DFSP is a Government installation and managed by a contractor under a Base Operation Services and Support (BOSS) or similar-type contract, the installation’s Military Service or Federal Civilian Agency Contract Administrative Office (CAO) is responsible for ensuring compliance under the contract with the instructions contained in this Enclosure. Where the EASP/DFSP is a DLA Energy COCO facility, the Energy Aerospace contract will contain terms and conditions that the EASP/DFSP TM shall adhere to, in addition to those contained in this Enclosure as well as any future policy established in this manual.

(4) Energy Aerospace also supports commercial customers involved in space and space-related industries and therefore, may have an EASP at the commercial customer location. In such instances, the EASP Manager is the individual at the commercial customer location performing RO/TM duties and responsibilities. EASP Agreements are needed between Energy Aerospace and any commercial customer location that has a site that stores and distributes Energy Aerospace DWWCF-owned product. The Agreement will incorporate this manual by reference and require the EASP Manager adhere to its policies and procedures. On a case-by-case basis, the EASP Agreement may be needed as part of the Energy Aerospace sales contract with the commercial customer.

(a) Besides this manual, other specific responsibilities of the EASP Manager are delineated in the EASP Agreement between Energy Aerospace and the commercial customer.

(b) If the commercial customer’s requirement for DWWCF-owned Energy Aerospace products is under the terms and conditions of an existing Government contract with the Military Services or a Federal Civilian Agency, the contract holder shall incorporate this manual by reference into its Government contract.

(c) In addition, the Contract Administrative Office (CAO) is responsible for ensuring that its contractor exercises proper management and oversight of DWWCF-owned inventory stored at and sold from EASP/DFSPs located at the commercial customer facility.

(5) Whenever there is a change in RO/TM/EASP Manager at an EASP/DFSP, accomplish the transfer of accountability for DWWCF-owned Energy Aerospace products from the outgoing RO/TM/DFSP Manager to the incoming RO/TM/EASP Manager as follows:

(a) Both the outgoing and incoming RO/TM/EASP Manager will verify the physical inventory taken on the effective date of the change and sign the DD Forms 2917, Physical

Inventory (Fuels/Missile Propellants, and DD Forms 2925, Missile Fuels/Propellants Inventory Summary Sheet). Upon completion of the transfer of account, provide copies of the DD Form 2917 and the DD Form 2925 to the Energy Aerospace AO.

(b) The outgoing RO/TM/EASP Manager will prepare a DD Form 2924, Monthly Inventory Transaction Report (Missile Propellants) (MITR), to cover all transactions since the last day of the previous month. The outgoing and incoming RO/TM/EASP Manager will jointly verify the existing inventory records, complete the necessary documentation encompassing all transactions, and forward all documents to Energy Aerospace.

e. When the management and operation of the EASP/DFSP is contracted out, the appropriate individual at the DoD or Federal Civilian installation shall appoint a Property Administrator (PA) for DWWCF-owned Energy Aerospace products. The DoD or Federal Civilian Agency who let the Government contract that encompasses DWWCF-owned Energy Aerospace products at a commercial customer EASP shall appoint a PA in accordance with applicable agency regulations.

f. The accountability of Energy Aerospace PP&E is under DLAI 4202, Accountability and management of DLA Equipment and other Accountable Property, and as such, additional guidance in this document is not needed.

g. PAs for Energy Aerospace-owned PP&E are appointed by the appropriate individual at the DoD or Federal Civilian installation if the management and operation of the DFSP/EASP is contracted out. Although there is no PA requirement at commercial customer locations that utilize Energy Aerospace-owned PP&E, either the EASP agreement or sales agreement with the customer shall outline the customer’s duties and responsibilities with regard to Energy Aerospace-owned PP&E.

7. GENERAL DWWCF-OWNED ENERGY AEROSPACE PRODUCT INVENTORY

ACCOUNTABILITY PROCESSES AND PROCEDURES.

a. The procedures and records controlling all inventory transactions and inventory accountability, as established in this policy guidance are designed to ensure sound supply chain management procedures throughout the Energy Aerospace Program. An inventory transaction is any event that affects or changes the DWWCF inventory account ledger. Inventory transactions include receipts, sales, credits, shipments, transfers, determinable gains/losses, physical inventory adjustments, and end-of-month (EOM) operating gain/loss adjustments.

b. To aid in the proper management and oversight of DWWCF-owned inventory, Energy Aerospace has established detailed record-keeping and reporting so losses or gains are traced to the specific cause, such as Energy Aerospace contractor delivery, handling, static, etc. DLA Energy has developed forms which, when properly completed, will assist Government-owned/leased Government Operated (GOGO), Government-owned/leased Contractor Operated (GOCO) and/or Contractor Owned Contractor Operated (COCO) EASP/DFSP personnel and Energy Aerospace to analyze gain/loss trends and determine whether they are excessive and consequently warrant further investigation of item records, physical inventories, equipment and/or procedures. Forms and directives can be found at: https://www.defense.gov/Resources.

c. In support of the Energy Aerospace AO, the RO/TM/EASP Manager shall establish a monthly document control folder for each month’s activities as they occur, which shall contain written documentation and copies of applicable forms, which together, encompasses any and all activities pertaining to DWWCF-owned inventory during that day/month.

(1) The DD Form 2915, Propellant Servicing Unit Record provides a daily record of operations for each product and documents the number of sales and credits handled by each EASP/DFSP. This record will permit compilation of data relative to the efficiency and effectiveness of each unit and provide early detection of abnormal losses for immediate corrective action.

(2) On a daily basis, the RO/TM/EASP Manager will ensure all required forms are completed using data obtained from the source documents.

(3) These activities include product receipts, sales from inventory; product returns to inventory, shipments, transfers between EASPs/DFSPs, and inventory adjustments involving DWWCF-owned Energy Aerospace products.

d. Energy Aerospace Customer Account Specialists (CAS) shall ensure use of the DD Form 1149, Requisition and Invoice/Shipping Document to schedule DWWCF-owned Energy Aerospace product deliveries into a EASP/DFSP. Deliveries of non DWWCF-owned product into an EASP/DFSP are scheduled using the DD Form 2908, Propellants Delivery/Services Task Schedule (PDST).

8. RECEIVING ENERGY AEROSPACE PRODUCTS.

a. Energy Aerospace suppliers will enter receipt documents and invoices into WAWF and shall attach a DD Form 250/250-C, Material Inspection and Receiving Report, Meter Tickets, Commercial Bill of Lading (BOL) and/or commercial equivalent approved by the Energy Aerospace Contracting Officer to designate receipt of all Energy Aerospace products by receiving activities. When multiple deliveries under a single contract and delivery order, contractors may consolidate all inspection and acceptance of the same item, same day and specification delivered to an EASP/DFSP or end-use customer on one DD Form 250/250-C and/or commercial equivalent.

b. The DLA Energy Quality Assurance Representative (QAR) shall perform inspection and acceptance at Energy Aerospace contractor production facilities and fill plants for all F.O.B.

Origin contracts. The RO/TM/EASP Manager, or authorized representative shall serve as the individual authorized to accept product and/or services upon receipt for deliveries against F.O.B.

Destination contracts. After successful deliveries, Certificate of Conformance (COC) procedures are requested through the Energy Aerospace Quality Manager and/or the Contracting Officer

(CO).

c. The RO/TM/EASP Manager or authorized representative of the Customer Direct Sale shall perform an inspection of all products received to ensure that identity, conditions, and status as reflected on the applicable receiving document are correct.

(1) The DWWCF Inventory Transaction Recorder shall use the DLA Energy supplier’s DD Form 250 and/or commercial equivalent Bill of Lading (BOL) or meter tickets to record receipts on the DD Form 2914, Record of Receipts of Missile Propellants and DD Form 2925 for products received at EASPs/DFSPs.

(2) The RO/TM/EASP Manager or authorized representative shall utilize the DLA Energy’s supplier’s DD Form 250/250-C and/or commercial equivalent documents to reflect acceptance of the product under Defense Acquisition Regulation, Appendix F-301. The RO/TM/EASP Manager should include the date of receipt, printed name of the personnel verifying receipt of the product as well as the duty phone number. In addition, the document should reflect the printed name of the vendor delivery personnel with office phone and any necessary remarks.

(3) The RO/TM/EASP Manager or authorized representative shall report any deviations from the delivery schedule/delivery orders by phone and follow-up with an email directly to the applicable Energy Aerospace Supply Planner/Customer Account Specialist as well as the Energy Aerospace supplier so that the supplier can issue a corrected Receiving document in WAWF and attach a correct DD Form 250/250-C and/or commercial equivalent documents. If warranted, the Energy Aerospace Supply Planner will refer the deviation pertaining to Energy Aerospace supplier deliveries to the applicable Energy Aerospace Contracting Officer for resolution.

d. The RO/TM/EASP Manager shall oversee the segregation and storage by stock number at the EASP/DFSP of all DWWCF-owned Energy Aerospace products and/or government-owned/leased containers containing DWWCF-owned Energy Aerospace product.

e. Commingling constitutes the storing of products of different ownership in the same container, storing containers holding products of different ownership in the same general storage area and/or storing non-DWWCF-owned product with DWWCF-owned product. Under no circumstances will non-DWWCF-owned products be commingled with DWWCF Energy Aerospace product. Containers of different ownership segregated by adequate spacing or in delineated areas are not considered commingled.

9. RECORDING PRODUCT RECEIPT AT AN EASP/DFSP.

a. The DWWCF Transaction Recorder shall prepare a DD Form 2914 for each product received at the EASP/DFSP during a 24-hour period, that is, from 0800 hours one day to 0800 hours the next day.

b. The DWWCF Transaction Recorder will support the DD Form 2914 with the following documents:

(1) The signed DD Form 250/250-C, Material Inspection and Receiving Report or commercial equivalent document for each receipt.

(2) When applicable, the commercial Bill of Lading (BOL) for each receipt.

(3) When applicable, the carrier’s delivery ticket or other documentation.

(4) The RO/TM/EASP Manager shall ensure that the above transportation documents are provided to the base/installation/facility transportation office, if applicable.

c. The DWWCF Transaction Recorder shall annotate the totals per the DD Form 2914 on the applicable DD Form 2925. It is critical that corrected receiving documents are used to support the EASP’s/DFSP’s Monthly Inventory Transactions Report (MITR). A copy of the applicable DD Form 250/250-C and/or commercial equivalent document shall accompany the MITR in support of the receipt of product at the EASP/DFSP. If a corrected DD250/250-C and/or commercial equivalent submitted to the RO/TM/EASP Manager after the submission of the MITR, the RO/TM/EASP Manager shall contact the applicable Customer Account Specialist or Supply Planner for direction. Once resolved, the RO/TM/EASP Manager will provide Energy Aerospace-FEM with corrected copies of the MITR package in order to process the corrections.

(1) Prior to submission to Energy Aerospace, the RO/TM/EASP Manager shall:

(a) Verify the quantities shipped as shown on supporting WAWF documents such as DD Form 250/250-C, Bill of Lading (BOL), meter tickets and/or commercial equivalent to ensure they are correctly entered on the DD Forms 2914 and 2925.

(b) Provide a written explanation as to the possible reasons for any quantity discrepancies between the quantities received at the EASP/DFSP versus what the WAWF documents such as DD Form 250/250-C, Material Inspection and Receiving Report, Bill of Lading (BOL), meter tickets and/or commercial equivalent document shows.

(2) After all documents above are verified as correct on the DD Form 2914, the RO/TM/EASP Manager will:

(a) Enter the Quantity Received column on each WAWF documents such as DD Form 250/250-C, Bill of Lading (BOL), meter tickets and/or commercial equivalent the quantity shown in the Quantity Shipped column for “freight or free” on board (FOB) origin shipments, and the quantity actually received for FOB destination shipments.

(b) Retain a copy of each receipt document for processing to Energy Aerospace with the DD Form 2924.

(c) Upon receipt, the RO/TM/EASP Manager will verify the DD Form 250/250-C, Bill of Lading (BOL), meter tickets and/or commercial equivalent against the entries previously made on DD Form 2914. If the quantity shipped on the documents above and the quantity received with the shipment do not agree with the quantity reported on the receipt forms, the RO/TM/EASP Manager will immediately notify Energy Aerospace.

(d) When the documents above consolidates more than one receipt at the EASP/DFSP, the supplier will list the consolidated receipts and the RO/TM/EASP Manager must verify the entries on DD Form 2914 both individually and in total. The RO/TM/EASP Manager will attach one copy to the DD Form 2914 with the original documents received and retain the remaining copy to document the quantity received.

(e) When the Energy Aerospace supplier provides corrected copies of any of the documents above because of an error in the designated quantity delivered, the DWWCF Transaction Recorder (as applicable) shall:

1. Ensure all copies of the documents are marked “Corrected Copy” and supported by an explanation verified (evidenced by signature) by the assigned DWWCF Transaction Approver.

2. Enter the difference in the DD Form 2914 under the column headed Quantity Declared Shipped for the day on which the RO/TM/EASP Manager received the corrected documents. If the difference is a decrease, circle the quantity on the DD Form 2914 so the quantity is subtracted when the totals are calculated. No entry is made in the column headed Quantity Received.

3. Attach the corrected documents to the DD Form 2914 for which the corrections were made.

10. SHIPMENTS OF PRODUCT BETWEEN EASPs/DFSPs.

a. Energy Aerospace defines a shipment of product between EASPs/DFSPs as the transfer of product from one EASP/DFSP to another resulting in the transfer of accountability for the shipped product from one RO/TM/EASP Manager to another RO/TM/EASP Manager.

b. When product shipped from one EASP/DFSP to another EASP/DFSP, it is handled as a transfer out from the losing EASP/DFSP and a transfer in to the gaining EASP/DFSP.

c. The Energy Aerospace Customer Account Specialist shall coordinate and approve transfer of DWWCF-owned Energy Aerospace products between EASPs/DFSPs before the shipment of any product.

d. Utilize the DD Form 1348-7, DOD MILSPETS DFSP SHIPMENT AND RECEIPT DOCUMENT, to document shipments between EASPs/DFSPs.

e. In case of bulk product shipped between EASPs/DFSPs, the Transaction Recorder at the EASP/DFSP who is shipping the product will prepare the DD Form 1348-7 for signature by the RO/TM/EASP Manager. The two copies of DD Form 1348-7 will accompany the shipment with appropriate bills of lading, as applicable. Return the acceptance/signed DD Form 1348-7 to the shipping EASP/DFSP.

11. TRANSPORTATION DISCREPANCIES IN VENDOR DELIVERIES AND SHIPMENT

RECEIPTS.

a. Transportation discrepancies in Energy Aerospace supplier deliveries sent through the Defense Transportation System (DTS) and shipments within the Continental United States shipped by Energy Aerospace designated commercial carriers are processed according to Defense Transportation Regulation (DTR) DoD 4500.9-R Part II, Cargo Movement.

b. The RO/TM/EASP Manager or authorized representative of the Customer Direct Sale shall report shipping and/or packaging discrepancies to include quantity discrepancies, to the Energy Aerospace AO on the Standard Form (SF) 364, Report of Discrepancy (ROD).

(1) Prepare and distribute the SF 364 according to DLA 4140.55, Reporting of Supply Discrepancies.

(2) A copy of the completed SF 364 shall be mailed, faxed, or emailed within 24 hours or the next duty day to the Energy Aerospace AO, Attn: DLA Energy Aerospace, Bldg. 1621, 1014 Billy Mitchell Blvd, San Antonio TX 78226-1859. Contact DLA Energy Aerospace at

(210) 925-4842 for email address/fax number of the current AO. If the EASP/DFSP is on a military installation, the major command should be advised of the discrepancy.

12. AUTHORIZED SALES FROM AN EASP/DFSP.

a. To ensure proper accountability of DWWCF-owned Energy Aerospace products, all sales from an EASP/DFSP storing DWWCF-owned Energy Aerospace products are only made to customers otherwise authorized to receive product.

b. A sale is an issue that is identified to a specific end-use customer.

c. All sales are recorded on a DD Form 1898, Energy Sales Slip, electronic or hard copy, using the identaplates and imprinter provided by DLA Energy.

(1) All DD Forms 1898/1149 issued during the month must be separated by individual customers and consolidated for the month on the DD Form 2913, Missile Propellants Consolidation and Reporting of Sales, and DD Form 2924.

(2) Record total consumption by individual customers on the DD Form 2913 and submit with the DD Form 2924.

d. Sometimes, nitrogen, hydrogen and helium are received in the liquid form and the liquid is converted by various means into the gaseous state for end use. Where the end project, program, or contract can be identified at the time of issue of the liquid, the quantity of product issued for conversion to gaseous state will be made as a sale under the liquid stock number.

13. RETURN AND SUBSEQUENT RE-SALE OF PRODUCT TO AN EASP/DFSP.

a. Customers must contact Energy Aerospace, in advance, in order to obtain approval for the return of excess product to an EASP/DFSP. Prior to the request, the customer must provide copies of laboratory analysis of the excess product to Energy Aerospace (and parent MAJCOM, as applicable) Energy Aerospace will arrange for transportation for all Energy Aerospace owned/leased containers as well as customer-owned containers used in returning excess product to the EASP/DFSP. The cost of transporting the excess/returned product may be the responsibility of the activity initiating the return.

b. Energy Aerospace may accept return of customer owned product and provide credit to the customer under the following circumstances:

(1) If after the sale of product to a previously submitted forecast it is determined that the product is no longer required, the product is determined to be on-specification, and it can be reprocessed under an existing Energy Aerospace contract.

(2) The cost of reprocessing is deducted from the credit allowed if product returned requires reprocessing to bring the product to within specification. The customer will be responsible for any additional expenses incurred, i.e., laboratory services, overhead costs. If the product is not needed by Energy Aerospace or if reprocessing costs or steps would be too costly, Energy Aerospace may recommend that the customer seek other disposition options rather than returning it to Energy Aerospace.

c. Returned products that do not meet the criteria for credit as mentioned above, may be accepted with no credit to the customer.

14. RECORDING A RETURN OF PRODUCT TO AN EASP/DFSP.

a. A record of return of product to the EASP/DFSP is reported on a DD Form 1898 in order to document the credit for the product returned.

b. In recording returns for credit, the DWWCF Transaction Recorder shall identify the product returned, unit of issue, customer, original date of sale, and the quantity returned to inventory on the DD Form 1898, and the DD Form 2913.

c. Take the following actions for return of on-specification, excess product as those defined in the return and subsequent re-sale of product to an EASP/DFSP.

(1) The issuing EASP/DFSP shall process a credit transaction for the quantity returned, not to exceed amount as taken from the original DD Form 2913. The DWWCF Transaction Recorder shall document the credit transaction using DD Form 1898 and submit the credit on the DD Form 2913.

(2) For the authorized return of product to an EASP/DFSP, the DD Form 2913 will reflect the original date of the sale in the remarks column and the Energy Aerospace AO approval.

d. For returned product where credit is not provided to the customer the DWWCF Transaction Recorder will record the quantity returned as a determinable gain on the DD Form 2924 and DD Form 2925.

15. INVENTORY MEASUREMENT METHODS.

a. Methods utilized to conduct a physical measurement of inventory is dependent on the type of commodity stored, the unit of issue (UI) and the storage container can be found in Table 2 of this document. Methods include:

(1) For compressed gases in tube banks: Pressure/Temperature/Volume data and empirical formulas taking into consideration the compressibility factor of the gas and expansion of the container at high pressures.

(2) For volume of hydrocarbon liquids in bulk tanks: Automatic Tank Gauge (ATG) readings may be used only when the ATG is fully operational and ATG systems have been calibrated or calculation based on precise level measurements using a serviceable tape and bob, strapping tables, and API temperature conversion charts.

(3) For products in cylinders or drums with UI of mass or volume units: Sum of the certified net weights in each container as determined at time of filling (for mass units), or sum of nominal volume in each container recorded at time of filling (for volume units).

(4) For products other than hydrocarbon liquids in bulk tanks with level gauges:

Calculations based on precise level measurements, strapping tables and temperature compensation factors (if available) for volume units; calculation based on precise level measurements, strapping tables and product density at measurement temperature for mass units.

(5) For products in bulk tanks with load cells or in conveyances that can be transported to certified weight scales: product weight = gross weight – tare weight; for mass units convert product weight to unit of issue utilizing appropriate conversion factor; for volume units, utilize calculations based on product density and product weight.

(6) For products with unit of issue of CY (cylinder) or DR (drum): Physical count of containers.

(7) For product in pipelines: Accurate mathematical computation is furnished by the certified Base Civil Engineer, if applicable.

b. The type of measurement method to use for each product managed by Energy Aerospace is in Table 2 of this document.

c. The requirement for a physical measurement/inventories of the Bulk hypergolic group of products is not required when quantity determination gauges are not installed on the bulk container (level gauges or load cells). In this case the Book inventory shall be recorded as the

Physical inventory measurement on forms and documents. For end of month reporting (MITR) the book inventory is recorded and no other measurement is required due to extremely hazardous conditions and unnecessary risk of life and property. For Hypergols purchased and sold in sealed cylinders, the risk of product degradation is extremely low and should not be subject to periodic weighting.

16. EASP/DFSP PHYSICAL AND BOOK INVENTORY PROCESSES.

a. The RO/TM/EASP Manager shall conduct a weekly physical inventory of product in all active Energy Aerospace bulk storage tanks, rail cars, trailers, drums, cylinders, dewars, tube trailers and etc. An active component is an item where a transaction (such as issue, receipt, credit, or transfer) has occurred within the past 24 hours. The physical inventory is the actual total on-hand quantity of each grade of product stored at the EASP/DFSP. Inactive Energy Aerospace product storage equipment is inventoried monthly, or when a transaction occurs, whichever occurs first. An inactive component is one where a transaction has not occurred within the past 24 hours.

(1) The physical inventory is reported on the DD Form 2917 and DD Form 2925 or locally created forms/spreadsheets that contains or exceeds the required information as of…