DLA ENERGY AEROSPACE INVENTORY REQUIREMENT TEXT.pdf

I0003 I116.05.100 RESPONSIBILITY FOR GOVERNMENT-OWNED ENERGY AEROSPACE PRODUCTS (DLA ENERGY

AUG 2022)

(a) Title to any Government-owned Energy Aerospace products in the possession of or under the custody of the Contractor by reason of this contract, which is hereinafter referred to in this provision as "Government-owned product," shall at all times remain in the Government, and Government-owned product shall be used only for the purposes set forth in this contract. The Government shall always have access to the premises wherein any Government-owned product is located.

(b) The Contractor shall protect and preserve Government-owned product in a manner consistent with sound industrial practice.

(c) Government-owned product shall not be commingled in the same tank, truck, or any other storage container with non-

Government-owned product. Actual physical segregation of Government-owned product shall be maintained in addition to separate inventory accountability for Government-owned product.

(d) The Contractor shall not be liable for loss of or damage to Government-owned product while in the possession of or under the custody of the Contractor by reason of this contract, or for expenses incidental to such loss or damage, except that the Contractor shall be liable for any such loss or damage (including expenses incidental thereto)--

(1) Which results from negligence, or bad faith, or willful misconduct of the Contractor, its employees, or agents; or

(2) Which results from a risk that is in fact covered by insurance or for which the Contractor is otherwise reimbursed, but the

Contractor in such case shall be responsible only to the extent of such insurance or reimbursement.

(e) The Contractor represents and warrants that the prices stated in the Schedule do not include the cost of insurance covering risk or loss of or damage to Government-owned product while in the possession of or under the custody of the Contractor by reason of this contract, nor any provision for a reserve to cover such risk. In the event the Contractor is reimbursed or compensated for any loss or damage to Government-owned product, it shall reimburse the Government. The Contractor shall do nothing to prejudice the Government's rights to recover against third parties for any such loss or damage and, upon the request of the Contracting Officer, shall, at the Government's expense, furnish to the Government all reasonable assistance and cooperation (including the prosecution of suit and the execution of instruments of assignment in favor of the Government) in obtaining recovery.

(f) In order to maintain accountability and control over Government-owned product and other property located at the Contractor’s facility, it is necessary to designate the Contractor’s facility as a Energy Aerospace Support Point (EASP). As a designated EASP, the Contractor will be required to submit DD Form 2924, Monthly Inventory Transactions Report (MITR). Entries on the MITR must be supported by DD Form 2913, Missile Propellants Consolidation and Reporting of Sales; DD From 1348-7 and 1348-8, DoD MILSPETS EASP Shipment and Receipt Document; DD Form 1898 Fuel Sale Slip; and DD Form 250, Material Inspection and Receiving Report, as appropriate. The MITR package will be emailed to the Energy Aerospace Resolution Specialist no later than the 10th calendar day of the following month.

(1) The applicable Customer Account Specialist issue the DD Form 1149, Requisition, and Invoice/Shipping Document, for all issues and distribution of Energy Aerospace products from inventory in storage. The DD Form 1149 will be issued at least seven days prior to loading bulk and non-bulk (cylinder or drum) shipments. The Contractor shall provide points of contact, alternate points of contact, and an emergency point of contact for scheduling shipments.

(2) Net inventory determinations of Government-owned product shall be performed on the first workday of each month.

(i) Quantity calculations shall be in accordance with the DETERMINATION OF QUANTITY provision.

(ii) DD Form 2924 shall be prepared by the Contractor at the first of each month to include the beginning inventory, receipts, sales, transfers, losses/gains, and the ending inventory of the previous month. Bulk, drum, cylinder, and/or GPTU inventories shall be reported under separate columns on the DD Form 2924 and will be reported each month in the appropriate unit of issue, NSN, and nomenclature.

(iii) The monthly inventory variance percentage shall be calculated when the MITR is prepared. To calculate the inventory variance percentage, determine the difference between the ending book and ending physical inventory for the month and divide by the sum of the beginning physical inventory and receipts, transfers in, regrade increases and determinable gains. Multiply the result by 100 to determine the percentage. A variance percentage in excess of authorized percentages shall be _10 % and will require investigation and a written explanation to accompany the associated MITR.

(g) All information reported on DD Form 2924 shall be considered proprietary data and shall not be released to any activity or organization outside DLA/DLA Energy.

(h) All records and documents identified above are DLA/DLA Energy-accountable records and must be retained in accordance with contract clause I119.03.100.

I-0004 I119.03.100 INVENTORY CONTROL RECORDS AND SYSTEMS OF RECORD AT CONTRACTOR ENERGY AEROSPACE SUPPORT POINTS (EASPs) (ENERGY AEROSPACE AUG 2022)

(a) INTRODUCTION. The Contractor shall prepare all documentation and systemically process related transactions in accordance with the information and instructions provided herein as well as the Energy Aerospace-Volume 7, Section 7 to DODM 4140.25, DoD

Management of Bulk Petroleum Products, Natural Gas, and Coal, and DLA Energy-Aerospace interim guidance P-11. Both guidelines will be provided to the Energy Aerospace Support Point (EASP). In addition, as the Energy Aerospace Business Unit (DLA Energy-FEM) continues to implement DLA’s web-based Enterprise Business System (EBS), the Contractor shall conform its processes to that automated system as well. All documents are subject to change and the vendor is responsible for implementing the required changes within 30 days of publication or later if agreed upon by the Government. Unless the Government has specifically stated it will provide the hardware, the Contractor shall provide requisite hardware (specifications will be provided by the Government) capable of processing all applicable inventory and accounting transactions daily (weekdays excluding weekend and holidays) through DLA Energy-provided applications or software. At a minimum, EBS applications shall require the Contractor to provide and have on-site high-speed internet access with a static Internet Protocol (IP) address, electronic mail (e-mail) with individual user accounts, the current (i.e., most up to date) version of Adobe Acrobat, and Microsoft Office. DLA Energy web-based applications will use the DoD Public Key Infrastructure (PKI) compliant web browser which will be provided by the contractor. These web-based applications require user identifications and passwords in accordance with DoD Automated Data Processing (ADP) Level III systems access. The Contractor shall be responsible for (in conjunction with DLA Energy/DLA) identifying employees who will be processing inventory/accounting transactions and for obtaining requisite systems access for those employees. It should be noted that DoD ADP Level III systems access requires a National Agency Check Investigation (NACI).

Those contractors that have not had a NACI will be provided guidance and direction to the investigation, which DLA will initiate. The Contractor shall immediately notify DLA Energy when Contractor personnel with access privileges no longer work at the contract facility or no longer require access to the EBS systems or web-based systems. System access request will be provided by DLA Energy upon system implementation.

(b) AUTOMATED FUEL INVENTORY REPORTING REQUIREMENTS. This section applies only after the Fuels Manager

Defense (FMD) is fielded and transactions are automated. Prior to that implementation reporting should be accomplished using the process in the interim guidance P-11. Contractor shall prepare all documentation and systemically process each transaction affecting inventory of Government-owned products in its possession by virtue of this contract in accordance with the information and instructions provided herein and Department of Defense Manual DODM 4140.25, DLA Energy interim guidance P-11. Within one business day of each transaction/business event (next business day for transactions/events on weekends and holidays), the Contractor shall input transaction data into the automated inventory and accounting system(s) or applications designated by the Government. Initial training for inputting transactional data will be provided by the Government via on-site support or via electronic means (e.g., user manuals or on-line support/tutorials), after which the Contractor assumes all responsibility for timeliness and accuracy of transaction data input by its employees. The Contractor shall prepare and report each transaction in accordance with guidance provided during the training. The Government will advise the Contractor in writing of any changes in processing and reporting procedures. The Government reserves the right to telephone the Contractor on a daily basis (excluding weekends and holidays) to obtain information concerning processed transactions to monitor transactions using identified processing systems.

NOTE: DOCUMENTATION REQUIREMENTS. The following lists the documentation requirements for transactions: In accordance with the Aerospace Energy Chapter to DoD 4140.25-M and/or applicable interim guidance, the EASP Manager shall be assigned the responsibilities parallel to those of a Government Responsible Office for Defense Working Capital Fund (DWCF) owned Energy Aerospace products. The EASP Manager, on behalf of the Contractor, shall adhere to the requirements of DoD 4140.25-M, applicable interim guidance at all times.

NOTE: Refer to DLA Energy Aerospace interim guidance P-11 for a list of required forms.

(c) OTHER REQUIREMENTS.

(1) STORAGE TANK OUT OF SERVICE. Prior to removing a storage tank or any other storage container from service, the Contractor shall immediately notify the Energy Aerospace Accountable Officer (AO) by telephone, with follow-up confirmation in writing, providing the date and time the tank is scheduled to be removed from service. In addition, the Contractor shall provide the Energy Aerospace AO with a written estimate of unrecoverable product. The estimate will be reviewed and approved by the AO prior to taking any tank or storage container that stores DLA-owned products out of service.

(2) UNRECOVERABLE PRODUCT. Prior to the end of the contract period, the Contractor shall provide the AO a written estimate of unrecoverable product remaining in any storage container. The estimate will be reviewed and approved by the AO prior to the expiration of the contract period.

(3) STATEMENT OF AUTHORIZED SIGNATURES. The Contractor shall furnish the AO a statement containing the names and handwritten signatures of persons authorized by the Contractor to receive and accept Government-owned product or property. In addition, the Contractor is required to provide the DLA Energy Aerospace AO with written notification when previously authorized persons depart (leave, quit, transfer, etc.,) and new personnel are appointed to these positions.

(4) CHANGE IN EASP OPERATOR. Transfer of residual inventory from expired contracts will be made regardless of whether there is a change in contractors. The transfer of EASP product will be accomplished as follows:

(i) The outgoing Contractor, the new Contractor, and a designated Government representative will jointly inventory all on-hand inventories for each product and document these inventories on DD Forms 2917 and 2924. Each DD Form 2917 will be signed by the incoming and outgoing EASP Managers and Accountable Officials.

(ii) Upon completion of the inventory transfer, a summary DD Form 1348-8, reflecting both outgoing and incoming Contractor signatures verifying accuracy of the inventory summary, supported by the applicable DD Forms 2917 and 2924, will be completed for each product.

(iii) The following certification will be typed in the Memo block of each DD Form 1348-8, EASP Inventory Accounting Document and End of Month Report, and signed by the appropriate individuals:

"The inventory recorded on this DD Form 1348-8 has been transferred from contract

(old number) to contract (new number) on (date) .

Signature (Outgoing Contractor) / (New Contractor)

Typed/Printed Name and Titles (Outgoing Contractor) / (New Contractor)

(iv) The Contractor shall provide this information to the AO by telephone and by emailing one copy of each DD Form 2917, 2924, and 1348-8.

(v) The AO will email copies of the inventory documents covering the transfer month to the outgoing Contractor. The outgoing Contractor shall apply appropriate certification to the inventory documents and retain one copy, provide one copy to the new Contractor, and return the third copy to the AO.

(5) RETENTION OF ACCOUNTABLE RECORDS AND DOCUMENTS. To satisfy auditability requirements, EASPs shall retain a minimum of three years (current fiscal year plus two additional years) of Inventory Documentation/Data on location.

Source documents and data requiring retention beyond the three-year point shall be retired to a records retention center. EASPs shall contact the Resolution Specialist or AO via e-mail for disposition instructions at the provided emails. All records are DLA Energy-accountable records and must be retained as follows:

RECORDS RETENTION PERIOD

Appointment letters, e.g., RO/TM/PA appointments, etc. Three years

Receipts from a DLA Energy Procurement Contract File by date of acceptance, by calendar year, maintain 6 years 3 months after cutoff, or IAW contract requirements if it exceeds NARA and/or Audit Readiness requirements.

Sales/Issues and Returns (with credit) 10 years (2 years maintained in active local file and 1 year in an inactive locally stored file), or IAW contract requirements if it exceeds NARA and/or Audit

Report(s) of Survey (ROS) and all supporting Six years, three months after documentation completion of ROS

Returns without credit 10 years (2 years maintained in active local file and 1 year in an inactive locally stored file), or IAW contract requirements if it exceeds NARA and/or Audit

Shipments between DFSPs 10 years or IAW contract requirements if it exceeds

NARA and/or Audit Readiness requirements

Physical inventory data/documentation 3 years (2 years maintained in local file and 1 year in an inactive file), or IAW contract requirements if it exceeds NARA and/or Audit Readiness requirements

All inventory adjustment documentation 3 years (2 years maintained in local file and 1 year in

Product condition or identity changes, lab analysis 3 years (2 years maintained in local file and 1 year in

Contract modifications or change orders Retained locally, three years after expiration of the contract

If a criminal or accountability investigation is initiated due to loss, damage or theft of fuel, the records shall be retained until that investigation and any subsequent criminal or civil prosecution are completed.

(c) OTHER REQUIREMENTS.