afman23-122.pdf

BY ORDER OF THE

SECRETARY OF THE AIR FORCE

AIR FORCE MANUAL 23-122

9 FEBRUARY 2016

Materiel Management

MATERIEL MANAGEMENT

PROCEDURES

COMPLIANCE WITH THIS PUBLICATION IS MANDATORY

ACCESSIBILITY: Publications and forms are available on the e-Publishing website at www.e-publishing.af.mil for downloading or ordering.

RELEASABILITY: There are no releasability restrictions on this publication.

OPR: AF/A4LR

Supersedes: AFMAN 23-101, 8 August 2013

Certified by: AF/A4L

(Maj Gen Kathryn J. Johnson)

Pages: 436

This document, in conjunction with AFH 23-123, Materiel Management Handbook, Vols 1-3, support AFI 23-101, Air Force Materiel Management guidance applies to all personnel (military, civilian, and contractors) working for the United States Air Force (USAF). It applies to AF

Reserve Command (AFRC) and Air National Guard (ANG) Units. This directive manual provides procedures in support of guidance from Department of Defense (DoD) and the AF. This guidance includes DoDM 4140.01, DoD Supply Chain Materiel Management Regulation; DoD

Directive 1225.06, Equipping the Reserve Forces; DoD 4140.26-M, DoD Integrated Materiel

Management (IMM) for Consumable Items: Operating Procedures for Item Management Coding

(IMC); DoD 4140.27-M, Shelf-Life Item Management Manual; DoDI 4140.58, National Guard and Reserve Equipment Report (NGRER); and AF Policy Directive (AFPD) 23-1, Materiel

Management Policy and Procedures. Refer recommended changes and questions about this publication to the Office of Primary Responsibility (OPR) using AF Form 847, Recommendation for Change of Publication; route AF Forms 847 from the field through the appropriate functional’ s chain of command. The authorities to waive wing/unit level requirements in this publication are identified with a Tier (“T-0, T-1, T-2, T-3”) number following the compliance statement. See AFI 33-360, Publications and Forms Management, Table 1.1 for a description of the authorities associated with the Tier numbers. Submit requests for waivers through the chain of command to the appropriate Tier waiver approval authority, or alternately, to the Publication

OPR for non-tiered compliance items. Ensure that all records created as a result of processes prescribed in this publication are maintained IAW Air Force Manual (AFMAN) 33-363, Management of Records, and disposed of IAW the Air Force Records Disposition Schedule

(RDS) in the Air Force Records Information Management System (AFRIMS). Notify AF/A4LR http://www.e-publishing.af.mil/

2 AFMAN23-122 9 FEBRUARY 2016

of guidance conflicts between this instruction and any other DoD/USAF guidance or Technical

Orders (TO). Pending case resolution, DoD directives/TOs will take precedence. IAW the

Paperwork Reduction Act and DoD policy, ensure that reports of information collections that are collected and/or are compiled and transmitted from the general public are cleared and licensed by the Office of Management and Budget prior to collection. Information that is collected from other DoD components or Federal agencies must be approved by DoD and licensed with a report control symbol. See Attachment 1 for a glossary of references and supporting information.

SUMMARY OF CHANGES

This revision includes significant changes and must be reviewed in its entirety. Changes include implementation of the Central Repair Facility (CRF) and policy responsibilities of the Air Force

Installation and Mission Support Center (AFIMSC). The changes to the Customer Support, Equipment Management, Readiness Spares Packages (RSPs), Inventory, Flight Service Center

(FSC) and warehouse operations were implemented to include addition of HAZMAT Tracking

Activity (HTA) terminology to describe key aspects of the “HAZMART” function, the requirement for HAZMART to process receipts in the Enterprise Supply-Solution (ES-S) was deleted. The overall management of the Supply Discrepancy Report SDR program was aligned under the Customer Support Liaison Element. In addition, the base level EAE is responsible to manage 99s for lateral Equipment/SPRAM Transfers. Also, A4LR, MAJCOM and Materiel

Management roles and responsibilities as well as terms were revised. Also the requirements to file Receipt (REC) and Turn-In (TIN) documents have been deleted. Finally, this instruction was tiered to comply with standards outlined in AFI 33-360, Publications and Forms Management.

Chapter 1— GUIDING PRINCIPLES 8

Section 1A— Purpose, Scope and Description of Manual 8

1.1. Purpose, Scope and Description of Manual

Section 1B— Organizational Structures 8

1.2. Organizational Structures & Responsibilities

Figure 1.1. Template for Certificate of Transfer of Account (for DODAAC "FB" Accounts). 9

Figure 1.2. Template for Certificate of Transfer of Account (for DODAAC "FB" Accounts with NWRM)

Figure 1.3. Template for Certificate of Transfer of Account (for DODAAC account types other than FB)

Section 1C— Satellite Operations 11

1.3. Satellite Operations

AFMAN23-122 9 FEBRUARY 2016 3

Chapter 2— PLAN 14

Section 2A— Overview 14

2.1. Overview

Section 2B— Stockage Procedure 14

2.2. Stockage Procedure

Section 2C— Financial Management 22

2.3. Financial Management

Section 2D— War Reserve Materiel (WRM) 28

2.4. War Reserve Materiel (WRM)

Section 2E— Degraded Operations 33

2.5. Degraded Operations

Section 2F— Readiness Spares Packages and Kits 36

2.6. Readiness Spares Packages and Kits

Figure 2.1. Deployment Computation Request Format

Figure 2.2. RSP Destruction and Reconstitution Assessment

Chapter 3— SOURCING OF MATERIEL 54

Section 3A— Overview 54

3.1. Overview

Section 3B— Local Purchase and Retail Sales 54

3.2. Local Purchase and Retail Sales

Figure 3.1. DD Form 1348-6, Local Purchase Entry

Section 3C— Receipt Processing 64

3.3. Receipt Processing

Chapter 4— MAKE AND MAINTAIN MATERIEL 66

Section 4A— Overview 66

4.1. Overview

4 AFMAN23-122 9 FEBRUARY 2016

Section 4B— Time Compliance Technical Order (TCTO) 66

4.2. Time Compliance Technical Order (TCTO)

Section 4C— Repair 78

4.3. Repair

Section 4D— Time Change Items 87

4.4. Time Change Items

Chapter 5— DELIVERY OF MATERIEL 89

Section 5A— Overview 89

5.1. Overview

Section 5B— Ordering and Requisitioning. 89

5.2. Ordering and Requisitioning

Table 5.1. Customer Backorder Review/Validation Products

Section 5C— Physical Asset Management 144

5.3. Physical Asset Management

Table 5.2. Minimum SDR Data

Table 5.3. NSN list for SEX 2

Table 5.4. MRA/MAQ Flags and Definitions

Section 5D— Equipment Management 210

5.4. Equipment Management

Figure 5.1. Sample Configuration Report

Figure 5.2. Certification of Loss due to Combat Operations

Table 5.5. Equipment Master CA/CRL Jacket File Checklist

Table 5.6. Equipment Folder Checklist (Field use)

Section 5E— Document Control and Detail Records 272

5.5. Document Control and Detail Records

AFMAN23-122 9 FEBRUARY 2016 5

Section 5F— Record Reversal and Correction 283

5.6. Record Reversal and Correction

Section 5G— Physical Inventory and Inventory Adjustments 287

5.7. Physical Inventory and Inventory Adjustments

Figure 5.3. QMF Generated Spreadsheet Example

Figure 5.4. Query Management Facility (QMF)

Section 5H— Special Purpose Recoverables Authorized Maintenance 324

5.8. Special Purpose Recoverables Authorized Maintenance

Section 5I— Inspection and Related Operations 331

5.9. Inspection and Related Operations

Section 5J— Management of Discrepant, Counterfeit and Suspect Counterfeit Materiel 338

5.10. Management of Discrepant, Counterfeit and Suspect Counterfeit Materiel

Section 5K— Stock Positioning. 339

5.11. Stock Positioning

Chapter 6— MATERIEL RETURNS 342

Section 6A— Overview 342

6.1. Overview

Section 6B— Returns 342

6.2. Returns

Table 6.1. General AF Form 2005 requirements

Table 6.2. Exceptions to TEX code “+” Returns

Section 6C— Disposal, Demilitarization and Precious Metals Recovery Program (PMRP) 352

6.3. Disposal, and Demilitarization

Figure 6.1. Inspector Certification

Table 6.3. Demilitarization / Disposal Requirements

6 AFMAN23-122 9 FEBRUARY 2016

Chapter 7— SUPPORTING TECHNOLOGIES 361

Section 7A— Overview 361

7.1. Overview

Section 7B— Automatic Identification Technology, MMHS, and Other Capabilities 361

7.2. Automatic Identification Technology, MMHS, and Other Capabilities

Section 7C— Supply Chain Materiel Management System 362

7.3. Supply Chain Materiel Management System

Table 7.1. Activity code J serial number assignment

Section 7D— LRS / Materiel Management Activity ADP Personnel Requirements 367

7.4. Overview

7.5. Training

Chapter 8— LOGISTICS PROGRAMS AND SYSTEMS 369

Section 8A— Overview 369

8.1. Overview

8.2. Cataloging and Records Maintenance

Chapter 9— SPECIAL REQUIREMENTS 379

Section 9A— Overview 379

9.1. Overview

Section 9B— Special Logistics Support 379

9.2. Special Logistics Support

Chapter 10— INTENSIVELY MANAGED AND TRACKED ITEMS 385

Section 10A— Overview 385

10.1. Overview

Section 10B— Management of Controlled Materiel 385

10.2. Management of Controlled Materiel

AFMAN23-122 9 FEBRUARY 2016 7

Attachment 1— GLOSSARY OF REFERENCES AND SUPPORTING INFORMATION 402

8 AFMAN23-122 9 FEBRUARY 2016

Chapter 1

GUIDING PRINCIPLES

Section 1A—Purpose, Scope and Description of Manual

1.1. Purpose, Scope and Description of Manual.

1.1.1. Purpose and Scope. The purpose of this manual is to further implement direction provided in AFPD 23-1 and AFI 23-101. This guidance provides directions for performing predominantly retail materiel management processes associated with determining stock requirements, inventorying, storing materiel, cataloging, ordering, sourcing, receiving, delivering, and return/disposal of materiel for Class IX repair parts and select Class VII major end items as identified and approved by Headquarters AF (HAF). Additionally, guidance for other classes of supply is covered in specific subject areas. These references will be specifically enumerated where applicable.

1.1.2. Supplementation and Waiver Authority. This instruction may be supplemented no lower than the Major Command (MAJCOM) level unless otherwise indicated. MAJCOMs supplementing this instruction must coordinate with AF/A4LR and will follow guidance in

AFI 33-360, Publications and Forms Management. All waiver requests to this instruction must be approved by the certifying official of this instruction.

1.1.3. Description. This manual has the same construct as AFI 23-101 and AFH 23-123, Vol 2, Pt 1. While not all sections within AFI 23-101 have associated procedures enumerated in AFMAN 23-122, those sections where procedures are detailed have the same section titles.

In a similar manner, where applicable, sections have the same titles in AFH 23-123, Vol 2, Pt

1. For example, Sec. 5D, is the same section in AFI 23-101, AFMAN 23-122, and AFH 23-

123, Vol 2, Pt 1, Ch 5.

1.1.3.1. Users are encouraged to refer to Attachment 1 for reference information as well as identification of legacy AF supply chain functions with updated terminology.

1.1.3.2. The Integrated Logistics System-Supply (ILS-S) system is the overarching term used to describe the system(s) used by base retail materiel management operations. The

ILS-S is comprised of the Standard Base Supply System (SBSS), Enterprise Solution –

Supply (ES-S), and the Air Force Supply Centralized Database (AFSCDB). In many cases the term ILS-S is used to identify system related functions/references. Where applicable, in some instances, specific identification of SBSS or ES-S is used for more detailed identification.

Section 1B—Organizational Structures

& Responsibilities

1.2. Organizational Structures & Responsibilities.

1.2.1. Change of Accountable Officers (AOs).

1.2.1.1. Purpose: To explain the Change of AOs process. For policy specific requirements review AFI 23-101 and for IT specific guidance use AFH 23-123.

AFMAN23-122 9 FEBRUARY 2016 9

1.2.1.2. When the AO of an accountable Department of Defense Activity Address Code

(DODAAC) is replaced by a newly designated AO the following actions will be performed:

1.2.1.2.1. Complete a 100% inventory of NWRM for FB accounts with NWRM IAW

Sec. 5G, prior to transfer of accountability. (T-1).

1.2.1.2.2. The installation/ wing commander or equivalent with approving official input will determine if conditions exist which would preclude relief from accountability or require board/survey action against the officer before the present

AO is relieved from accountability. (T-1). If applicable, refer to AFMAN 23-220, Reports of Survey for Air Force Property.

1.2.1.2.3. Process the consolidated inventory adjustment document register as the record of activity for FB account transfers. (T-1) See Consolidated Inventory

Adjustment Document Register in AFH 23-123, Vol 2, Pt 2, Ch 5. Note: Material

Management IT system queries will not be used as the official tool to perform this function.

1.2.1.2.3.1. The Materiel Management Flight will initiate a certificate of transfer for the account. (T-1). See Figure 1.1 for FB accounts and Figure 1.2 for transfers of FB account with NWRM.

1.2.1.3. For other than "FB" account transfers refer to Figure 1.3. If other guidance outlines transfer of accountability actions, it may be used in lieu of Figure 1.3 (e.g., "FK" of “FV” munitions account transfers will refer to AFI 21-201, Munitions

Management for appropriate guidance.) Note: Contractor managed accounts must have a government AO appointed. The government AO can either be the functional area chief, quality assurance evaluator, or other appointed government individual who is qualified in the appropriate AFSC. These procedures apply to the transition of these AOs as well.

Figure 1.1. Template for Certificate of Transfer of Account (for DODAAC "FB"

Accounts).

______________ 20 __

I certify that the balance shown on the records of activity/DODAAC __________, as of the above date, the last document number _____________ and last transaction number ___________ as indicated on the attached control record data print-out, is true and correct to the best of my knowledge and belief and that the property has been this date turned over to ________________ pursuant to [G-Series Order # (or equivalent designation of accountability), date].

SIGNED: (Outgoing Accountable Officer)

APPROVED: (Commander at the next level of command)

I certify that I have received this date from __________________ my predecessor, all property pertaining to the above designated activity/DODAAC for which my said predecessor was accountable, plus all proper charges against and less all authorized credits to my predecessor's activity/DODAACD, last document number __________ and last transaction number

________________ and that I have assumed this date accountability for the property pertaining to this activity/DODAAC pursuant to [G-Series Order # (or equivalent designation of

10 AFMAN23-122 9 FEBRUARY 2016

accountability), date].

SIGNED: (Incoming Accountable Officer)

APPROVED: (Operational/base wing commanders (or equivalent directors))

Figure 1.2. Template for Certificate of Transfer of Account (for DODAAC "FB" Accounts with NWRM).

______________ 20 __

I certify that the balance shown on the records of activity/DODAAC __________, as of the above date, the last document number _____________ and last transaction number ___________ as indicated on the attached control record data print-out, is true and correct to the best of my knowledge and belief, having satisfactorily accounted for ______ NWRM line items and that the property has been this date turned over to ________________ pursuant to [G-Series Order # (or equivalent designation of accountability), date].

I certify that I have received this date from __________________ my predecessor, all property pertaining to the above designated activity/DODAAC for which my said predecessor was accountable; plus all proper charges against and less all authorized credits to my predecessor's activity/DODAAC; and have satisfactorily accounted for ______ NWRM line items assigned to this DODAAC as of this date of transfer indicated by last document number __________ and last transaction number ________________ and that I have assumed this date accountability for the property pertaining to this activity/DODAAC pursuant to [G-Series Order # (or equivalent designation of accountability), date].

Figure 1.3. Template for Certificate of Transfer of Account (for DODAAC account types other than FB).

_________________ 20 __

I certify that the balance shown on the records of activity/DODAAC __________ as of the above date and the last document number (or equivalent) ______________________ dated

_________________ 20___ is true and correct to the best of my knowledge and belief and that the property has been turned over this date to ____________________________ pursuant to G-

Series Order # (or equivalent designation of accountability), date.

I certify that I have received this date from _______________________________ my predecessor, all property pertaining to the above designated activity/DODAAC for which my said predecessor was accountable, plus all proper charges against and less all authorized credits to my predecessor's activity/DODAAC to the last document number ____________

AFMAN23-122 9 FEBRUARY 2016 11

dated ___________________ 20___ and that I have assumed this date accountability for the property pertaining to this activity/ DODAAC pursuant to [G-Series Order # (or equivalent designation of accountability), date].

1.2.1.4. If the projected successor officer contests the information presented in the transfer documentation, resolution should be sought with the projected relieved officer.

If resolution is not achieved, the approving official with installation/wing commander concurrence shall determine the necessary action to achieve resolution.

1.2.1.5. One copy of the certificate of transfer will be retained by the officer being relieved of accountability and one copy will be filed with the accountable records

(disposition IAW AFI 33-364, Records Disposition—Procedures and Responsibilities).

(T-1).

Section 1C—Satellite Operations

1.3. Satellite Operations.

1.3.1. Satellite Relocation (Re-home).

1.3.1.1. Purpose: Satellite accounts are moved from one computer support base (CSB) to another for satellite support for a variety of reasons: to improve support, to accommodate additional satellite accounts at the host base, to relieve a host base of too many accounts, to arrange new support when a base closes, etc. The process has to be exact. Strict management control and cooperation from all activities involved are necessary. In this section, timeline requirements, monitoring responsibilities, and reporting requirements are covered. For policy specific requirements review AFI 23-101 and for IT specific guidance use AFH 23-123.

1.3.1.2. General Procedure: For a satellite account to be relocated, certain specific procedures are required. The transfer procedures discussed here allow for an orderly transfer, and they apply to all activities involved in relocation. These procedures must be accomplished in the order presented, and MAJCOMS must supplement with directives needed for special requirements.

1.3.1.2.1. Time Requirement. Plan to start relocation actions 90 days before the relocation schedule date, unless the major command in coordination with the AFMC elects to complete the procedure in a shorter period.

1.3.1.2.2. The LRS CC/AO, AFMC and Accounting & Finance officers at both the gaining and losing bases will appoint representatives to monitor the transfer process.

(T-2).

1.3.1.2.3. Transfer. After down-loading procedures are completed, AFMC and LRS

CC/AO have the responsibility of transferring all output to the gaining CSB responsible for uploading the records.

1.3.1.2.4. Points of Contact. Good communication is the key to a successful rehome.

Primary and alternate points of contact at both the gaining and the losing bases and

12 AFMAN23-122 9 FEBRUARY 2016

AFMC must be identified. Each individual selected as a point of contact must have a good working knowledge of the rehome process. Recommend that the points of contact be selected from Functional Systems Management Section (LGLOS) or equivalent.

1.3.1.2.5. Reporting Requirements. Notify the Standard Systems Group control room, HQ AFMC, DSN 596-5771, prior to the rehome download and when the rehome has been completed. The gaining CSB or AFMC reports the beginning of upload and notifies AFMC when upload is completed. Any problems with hardware, procedures, or software will be reported by means of normal procedures. When difficulties are encountered in efforts to resume normal operations, satellite parent command, CSB gaining command, and AFMC

1.3.2. Satellite Relocation (Re-home) Sequence for Pre-Relocation Actions.

1.3.2.1. Purpose: To provide a recommended schedule for planning satellite relocation

(re-home) beginning 90 days before the completion date. For policy specific requirements review AFI 23-101 and for IT specific guidance use Satellite Rehome Sequence for Pre-

Relocation System Processing in AFH 23-123, Vol 2, Pt 1, Ch 1.

1.3.2.2. The following actions will be performed:

1.3.2.2.1. 90 Days before Relocation.

1.3.2.2.1.1. LGLOS personnel at the losing CSB will contact the gaining CSB

LGLOS; the A&F officers of both CSBs and the satellite relocation monitor and establish a relocation plan. (T-2)

1.3.2.2.2. 30 Days before Relocation.

1.3.2.2.2.1. The losing CSB will identify unique account attributes such as P item records, organization and shop codes and system designator information.

1.3.2.2.3. 20 Days before Relocation.

1.3.2.2.3.1. The gaining command will request an address change from AFMC or the losing CSB to the gaining CSB.

1.3.2.2.4. 15 Days before Relocation.

1.3.2.2.4.1. The losing CSB will establish a cutoff date in conjunction with the planned removal of communication lines.

1.3.2.2.5. 10 Days before Relocation.

1.3.2.2.5.1. The losing CSB will send a list of standard reporting designators

(SRDs) used by the satellite to AFMC. AFMC will load all the SRDs that are applicable.

1.3.2.2.5.2. The satellite will develop a letter of agreement with the gaining CSB.

1.3.2.2.6. 2 Days before Relocation.

1.3.2.2.6.1. The losing CSB will provide the gaining CSB Interchangeable

Substitute Groups (ISG) clean up information.

1.3.2.2.7. 1 Day before Relocation.

AFMAN23-122 9 FEBRUARY 2016 13

1.3.2.2.7.1. Ensure all satellite processing has stopped.

1.3.2.2.8. Day of Relocation.

1.3.2.2.8.1. Execute necessary ILS-S transition programs.

1.3.3. Establishing a Satellite Account.

1.3.3.1. Purpose: This section describes the procedures used to establish (also known as conversion) a satellite account. For policy specific requirements review AFI 23-101 and for IT specific guidance use AFH 23-123.

1.3.3.2. Pre-conversion/Conversion Requirements.

1.3.3.2.1. Formal Agreements. When a satellite account is established, a formal agreement about responsibilities may be considered between the account and the host base. This agreement may be in the form of a support agreement written according to the regulations contained in AFPD 25-2, Support Agreements, a contract, or a formal

MOA.

1.3.3.2.2. Time Requirements. Pre-conversion actions are normally time phased from a period of 120 days prior to conversion. However, the 120-day lead time may be compressed or expanded as mission dictates. All functions scheduled to establish a satellite account use the basic procedures contained in this section.

1.3.3.2.3. Reporting Requirements: The new host CSB or AFMC will notify when the upload begins and when the upload is complete. Normal procedures are used to report to the major command and AFMC any problems with hardware, software, or procedures.

1.3.3.2.4. GSD SMAG Operating Program. The gaining major command is responsible for notifying HQ AFMC/FMRS of an anticipated move or conversion, the date of the move or conversion will take place, and any pertinent information on the major command involved.

1.3.3.2.5. Notification of Conversion. The gaining major command is responsible for notifying certain agencies when a host or satellite account is established. The gaining major command will:

1.3.3.2.5.1. Submit a letter/message to the AFMC Allowance Manager advising them of the pending conversion and requesting any known address changes. Note:

Notify AFMC Allowance Standard Activity only if the account is type E.

1.3.3.2.5.2. Send a message to DLA Transaction Services(DLATS), Wright-

Patterson AFB, Ohio, advising them of any SRAN changes and the type of accounts affected (for example, FB, FG, FP, etc.).

1.3.3.3. Satellite Account Pre-Conversion/Conversion.

1.3.3.3.1. Refer to Satellite Rehome Sequence for Pre-Relocation System Processing in AFH 23-123, Vol 2, Pt 1, Ch 1 for the programs/processes needed to support Pre-

Conversion and Conversion.

14 AFMAN23-122 9 FEBRUARY 2016

Chapter 2

PLAN

Section 2A—Overview

2.1. Overview. This chapter outlines steps for the materiel management processes associated with demand and supply planning for base retail operations. These activities include Stockage

Policy procedures; Financial Management; WRM; Degraded Operations; and Readiness Spares

Packages and Kits; Contingency/ Wartime Planning.

Section 2B—Stockage Procedure

2.2. Stockage Procedure.

2.2.1. Readiness Based Leveling.

2.2.1.1. Purpose: Describe the procedures and transactions used to implement and maintain centrally computed Readiness Based Levels. For policy specific requirements refer to AFI 23-101 and for IT specific guidance refer to AFH 23-123.

2.2.1.2. General Readiness Based Level (RBL) procedures. A Readiness Based Level is a centrally computed quantity pushed from the Air Force RBL (D035E) system. When

RBL levels are established in the ILS-S, the RBL quantity becomes the peacetime portion of the total base requirement and the base stock level.

2.2.1.3. RBL levels are identified in the ILS-S with Type Level Flag F and “A007PL” in the first six positions of the document number. See Guide To Assigning The Type Level

Flag (TLF) in AFH 23-123, Vol 2, Pt 1, Ch 2 for a list of type level flags. The RBL process was designed to allocate the AFMC-computed worldwide peacetime requirements among AF bases and depots in a way that minimizes worldwide expected backorders.

2.2.1.4. Contractor Inventory Control Points (C-ICP) are responsible for total item management including the requirements computation and setting and updating base stock levels. Wholesale Contractor ICPs may use RBL, their own unique leveling system, or a combination of both in managing item stock levels.

2.2.1.5. Computing RBLs considers item usage (demand data), pipeline times, adjusted stock levels and worldwide requirements data. Bases send item usage data to the RBL

(D035E) or Contractor Inventory Control Point (C-ICP) central leveling system via electronic transactions (e.g., XCB). AFMC/C-ICPs can request updated base usage data via electronic requests (XCE) when base daily demand/percent base repair reports are over 90 days old. The RBL process uses base specific data to determine the optimum allocation of the worldwide requirement. The following actions will be performed:

2.2.1.5.1. RBL is processed quarterly at AFMC for both the base and the depot. The computation is performed during the third week of the first month of each quarter.

Generally, the system will allocate a stock level to all worldwide users. However, there is no guarantee that each user will receive a positive level, because even though a base may have sufficient demands to establish a demand level in the ILS-S, the

AFMAN23-122 9 FEBRUARY 2016 15

AFMC-computed worldwide peacetime requirement may not be sufficient to allocate a positive level to every base. Therefore, the system could allocate a stock level of zero to a base. An exception applies to selected Communications-Electronics (C-E), space, and missile (non-airborne) items that are managed under the Low Density

Level (LDL) process. For LDLs, AFMC LDL manager consolidates MAJCOM-approved levels, creates a flat file and sends it to AFMC to be loaded into the RBL system each quarter. LDLs are not computed like other RBL levels, however they are subjected to the RBL capping rules in AFH 23-123V2P1, Chapter 2 Section 2B before being honored via RBL push levels.

2.2.1.5.1.1. AFMC will review and approve any exclusion to these LDL RBL rules. A MAJCOM may request exclusions to the LDL RBL rules by submitting a list of the applicable NSNs, SRD and/or SRANs which they want to exclude, with supporting justification, to AFMC. (T-1). AFMC will review the request for exclusion and approve or disapprove the request. (T-1). If disapproval, AFMC will coordinate with the requesting HAF and MAJCOM. (T-1). If they approve the request, the excluded items will be passed to AFSC/LGP so the exclusions can be included in the next RBL quarterly push. If the exclusion is approved between the normal quarterly push, but requires immediate processing to meet mission needs, an out-of-cycle re-computation of levels can be accomplished for the affected NSNs, SRD and/or SRANs.

2.2.1.5.2. The RBL system contains special rules for honoring Contingency High

Priority Mission Support Kit (CHPMSK) requirements. When approved by

AFMC/A4, CHPMSK levels are loaded at contingency (deployment) locations and supported by the source of supply. For tactical JCS coded units, AFMC/A4 may authorize CHPMSKs for those units supported by IRSP offset levels. CHPMSKs support long term (over 90 days) contingency needs. To accommodate the CHPMSK requirements, RBL subtracts the CHPMSK authorized quantity from the worldwide peacetime requirements before any RBL allocations are made. Therefore, the additional CHPMSK quantity that will be requisitioned by the contingency location will be offset by reductions in RBL allocations to all worldwide users of the

CHPMSK items. Note: AFMC/A4 will maintain/publish a listing of units authorized

CHPMSK. This listing will be updated at least annually in preparation for the annual

CHPMSK review.

2.2.1.5.3. AFMC and C-ICPs communicate centrally computed RBLs sent via centrally computed level transactions. See Readiness Based Level (RBL) Procedures and Transactions in AFH 23-123, Vol 2, Pt 1, Ch 2 for specific details and input format for centrally computed level transactions. The RBL will always be sent to bases on the AFMC master NSN for items in an interchangeable and substitute group

(I&SG) or on a bachelor NSN for items that are not in an I&SG.

2.2.2. Customer Oriented Leveling Technique (COLT).

2.2.2.1. Purpose: Describe the procedures used to implement and maintain COLT. For policy specific requirements refer to AFI 23-101 and for IT specific guidance refer to

COLT Procedures in AFH 23-123, Vol 2, Pt 1, Ch 2.

16 AFMAN23-122 9 FEBRUARY 2016

2.2.2.2. General Customer Oriented Leveling Technique (COLT) centrally computes levels for Budget Code 9 items that have an established demand pattern at a base. The following paragraphs describe the methodology for setting and implementing COLT stock levels.

2.2.2.3. The COLT process was designed to set base stock levels on DLA-managed items in a way that minimizes base-wide unit customer wait time (CWT) per dollar spent.

CWT considers both the number of items issued immediately and backordered (as does issue effectiveness) as well as the duration of the backorders to provide a complete measure of the efficiency and effectiveness of the levels. COLT is generally designed to produce base stock levels that are cost-neutral with respect to the ILS-S demand leveling process. The COLT process described in COLT Procedures in AFH 23-123, Vol 2, Pt 1, Ch 2 was initially developed and tested in 2003, and approved for Air Force wide implementation in 2005.

2.2.2.4. The Air Force COLT team obtains base-level data from the Air Force centralized database for input to the COLT model. The COLT model develops stock levels one base at a time; finding the optimum levels. A review of the output is performed by the AF

COLT team. Time is provided in the process for AFMC, MAJCOMs, or bases to optionally review the output to ensure level accuracy. AFMC, MAJCOM/base may decide to exclude some items from receiving levels based on local conditions (e.g., improper coding of HAZMAT items). The final COLT levels are then sent to the ILS-S using XCA transactions. They are implemented in the ILS-S via RBL transactions described in RBL Procedures and Transactions, AFH 23-123, Vol 2, Pt 1, Ch 2. No special level request documentation approval/submission is required for COLT items.

2.2.2.5. COLT levels are computed once a quarter for each base. To spread the workload, COLT computes levels for one-third of the bases each month of the quarter.

2.2.2.5.1. Quarterly-computed COLT levels are only pushed to bases when the new level differs from the existing base stock level by more than the square root of the existing level. Note: Increases in levels for items with Mission Impact Code (MIC) 1 will always be pushed regardless of the difference from previous levels. This is the same as the ILS-S rule and is designed to reduce level volatility. See COLT

Procedures in AFH 23-123, Vol 2, Pt 1, Ch 2 for additional explanation.

2.2.2.6. There are a number of constraints (level caps) in COLT to control the depth of leveling. Like the ILS-S computed demand levels, the economic order quantity (EOQ) is capped at one year's demand quantity as is the COLT reorder point (ROP). These caps are designed to prevent over stocking.

2.2.2.6.1. COLT stops leveling when the Expected Backorders (EBOs) are less than

0.0027; preventing leveling where there are minimal gains. COLT supports the use of the Shelf Life Code (SLC); capping levels at half the shelf life quantity.

2.2.2.6.2. Stockage Priority Code (SPC) 5 items are capped at the existing on hand balance. This allows COLT to maintain a level on these items (and prevent backorders), while keeping the system from buying more stock until there are subsequent demands. If there are subsequent demands, the SPC code will be upgraded, allowing the resumption of full COLT leveling. The final cap calls for the

AFMAN23-122 9 FEBRUARY 2016 17

total COLT level to be capped at $4K (if the ILS-S demand level = 0) or $5K more than the ILS-S demand level (if the demand level > 0). COLT will sometimes provide significantly more depth of levels than the current ILS-S demand level.

2.2.2.6.3. COLT has several rules that restrict the levels. There is an initial leveling rule in COLT to prevent initially stocking an item when the chance of a future demand is small. COLT logic limits stock levels for Individual Equipment (IEU) items (Federal Stock Group 84 and Federal Stock Class 4240) and HAZMAT items

(IEX 9). To accommodate MAJCOM policies, COLT only provides levels on these items if ILS-S demand level > 0. COLT will not stock any item with a Max Level of

0 or an SPC of E. In addition, there are exclusion/zero lists maintained by the AF

COLT team, modified by the MAJCOMs/ AFMC, which excludes items in identified federal stock classes at identified bases from receiving positive levels.

2.2.2.6.4. The ILS-S programmatically assigns mission impact code (MIC) 1 to items that have previously caused a MICAP at that base. Therefore, all COLT candidate items will receive a positive level on MIC 1 items, except for those MIC items with an SPC 5 and no on-hand serviceable balance.

2.2.2.6.5. COLT has other rules to modify levels. COLT uses the Mission Change details and Base Closure Flags to modify demand and leveling for changing missions.

COLT has a bench stock/RSP rule where it considers other inventory on a base as partially available to help avoid backorders. Finally, COLT has special logic to determine levels for the AMC Forward Supply Locations.

2.2.2.7. Refer to COLT Procedures in AFH 23-123, Vol 2, Pt 1, Ch 2 for further details associated with COLT transaction processing.

2.2.3. Proactive Demand Levels (PDL).

2.2.3.1. Purpose: Describes the procedures used to generate and communicate PDL to base level. For policy specific requirements review AFI 23-101 and for IT specific guidance use AFH 23-123.

2.2.3.2. PDL is used to compute levels for items that have no demand history or extremely low historical demands. The goal of PDL is to reduce the number of MICAPs for Material Management IT systems non-stocked items.

2.2.3.3. PDL Procedures in AFH 23-123, Vol 2, Pt 1, Ch 2 describes the methodology for setting and implementing PDL.

2.2.4. Mission Change Data.

2.2.4.1. Purpose: To explain the Mission Change Data (MCD) procedures process. For policy specific requirements refer to AFI 23-101 and for IT specific guidance refer to

AFH 23-123, Vol 2, Pt 1, Ch 2.

2.2.4.2. The mission-change process is designed to alter base stock levels for items applicable to a weapon system that is already assigned at the base that will be affected by a known “mission change.”

2.2.4.3. A mission change is the addition or loss of a number of weapon system end items at a base or the base may be tasked to fly the same number of sorties, but increase

18 AFMAN23-122 9 FEBRUARY 2016

or decrease the average sortie duration. The ILS-S can use the base historical SRD-based consumption data for the applicable weapon system and information about the mission change to adjust base demand, thereby adjusting the stock levels for the weapon system applicable items. Consider an example in which the mission change process should be used. Suppose a base has 24 F-16C aircraft assigned and is going to receive an additional

12 aircraft in 6 months. The actions contained in Mission Change and New Activation

Spares Support List Procedures, AFH 23-123, Vol 2, Pt 1, Ch 2 will be taken by the base to establish sufficient materiel management support for the increased number of aircraft.

2.2.4.4. Reference Mission Change and New Activation Spares Support List Procedures, AFH 23-123, Vol 2, Pt 1, Ch 2 for further details associated with MCD transaction processing.

2.2.5. Adjusted Stock Level Requests.

2.2.5.1. Purpose: To explain the general procedures for requesting and processing

Adjusted Stock Level (ASL) Requests. For policy specific requirements review AFI 23-

101 and for IT specific guidance use refer to AFH 23-123.

2.2.5.2. General. Activities may submit requests for ASLs to AFMC using a digitally signed email. Where multiple individual items with same justification require ASLs, request may be submitted in a single correspondence. All required data must be included on the request, message or email. Repetitious data need only be provided once. All approved ASL’s will be validated through the appropriate approval authority biennially.

2.2.5.2.1. Categories.

2.2.5.2.1.1. Nuclear Weapons-Related Materiel (NWRM) adjusted levels are directed, loaded/changed/deleted by the NWRM Transaction Control Cell

(NTCC), located at Scott AFB. All actions including required validations are performed by the NTCC.

2.2.5.2.1.2. Low Density Levels (LDL) levels. All actions, to include loads/changes/deletes/validations, will be coordinated with affected MAJCOM and the AFMC LDL Manager. (T-1).

2.2.5.2.1.3. In-Place Readiness Spares (IRSP) offset levels.

Loads/changes/deletes will be processed by the owning command by initiating processing of the L02 program. All offset level validations will be performed by

AFMC.

2.2.5.2.1.4. Local/Jxx Routing Identifier levels. All actions, to include loads/changes/deletes/validations, are performed by the LRS Customer Support.

2.2.5.2.1.5. Contractor Inventory Control Point (C-ICP) levels. All actions, to include loads/changes/deletes (as pushed by the C-ICP via DAAS) and validations, are performed by AFMC.

2.2.5.2.1.6. Forward Supply Location (FSL) levels. All actions, to include loads/changes/deletes/validations, are performed by AFMC.

2.2.5.2.1.7. All other levels. All actions, to include

loads/changes/deletes/validations are performed by AFMC.

AFMAN23-122 9 FEBRUARY 2016 19

2.2.5.3. Requesting ASL’s. Provide detailed justification for all initial requests for negotiated levels to AFMC. Clearly justify the reason for the request and the expected period of need. The quantity requested should be the minimum essential quantity required to support the requirement.

2.2.5.3.1. All ASL request will contain information IAW AF Form 1996 to include:

2.2.5.3.1.1. Level Justification Code.

2.2.5.3.1.2. For Low Density Levels (LDL), the following additional data is required:

2.2.5.3.1.3. Lead Command of the supported Weapons System.

2.2.5.3.1.4. Type of LDL level being requested:

2.2.5.3.1.4.1. Single Point Failure (SPF) Items. Single point failure items are items whose failure will render a system inoperative and/or unable to perform its designated mission. SPF items are pre-positioned to meet specific mission requirements such as system restoration time of 48 hours or less and warrants pre-positioning of a spare or storage at a designated centralized storage location.

2.2.5.3.1.4.2. Operational Readiness Part (ORP) Items. Operational readiness part (ORP) items do not fit the general definition of an SPF item. However, range and depth of available weapon system inventory usually warrants pre-positioning of the spare or storage at a supply point or centralized storage location. These conditions require pre-positioning of ORP items. Examples of

ORP, a units’ unique (remote) location, a small worldwide available inventory, or units with multiple system locations. ORP items are required to maintain maximum redundant capabilities or a one-of-a-kind system capability.

2.2.5.3.1.4.3. Joint Transfer Agreement (JTA) Items. Joint transfer agreement

(JTA) items are inter-Service C-E related and have been authorized for pre-positioning by the Joint Chiefs of Staff (JCS). These assets are required to be maintained on a supply point for the life of the system.

2.2.5.3.1.4.4. Non-Prepositioned (NPP). This encompasses the remaining

LDL levels that do not mandate pre-positioning.

2.2.5.3.2. Send ASL requests to the appropriate AFMC for an analysis/review. For

Non-Weapon System related requests, AFMC will perform analysis/review. AFMC will assess the need for the level and best placement throughout the enterprise to support the identified need. If other than AFMC initiated, ASL requests that are not justified will be disapproved and/or returned without action to the initiator, with reason for disapproval. Disapproved requests will be returned through the same channels that submitted the request.

2.2.5.3.2.1. The analysis/review responsibility includes the identification of plausible alternatives to the establishment of the ASLs. For example, recommend disapproval of the ASL request if the item can be obtained from a depot, purchased, or manufactured locally in time to satisfy operational requirements.

20 AFMAN23-122 9 FEBRUARY 2016

2.2.5.4. Types of Approved Levels. ASLs will be categorized as Directed, Permanent or

Temporary based on the reason and results of the analysis/review. See AFH 23-123, Vol

2, Pt 1, Ch 2 for further guidance.

2.2.5.4.1. Load approved ASLs with the appropriate Reason Why Code (RWC) outlined in AFH 23-123, Vol 2, Pt 1, Ch 2. If there is not a specific RWC for the situation, load the ASL with RWC “Y” and file all correspondence related to the approval of the level for future reference.

2.2.5.4.2. Permanent Levels.

2.2.5.4.2.1. When analysis/review determines the need for an ASL based on an indefinite period or critical mission requirement and the demands pattern will not warrant an RBL/COLT level, a permanent level will be approved using

Sustainment Flag P.

2.2.5.4.2.2. Permanent Levels can be loaded as a Minimum, Maximum, or Fixed type level, as Type level flag C, D, and E.

2.2.5.4.2.3. Permanent Levels will be reviewed upon changes in mission or activation/deactivation of major weapons systems.

2.2.5.4.2.3.1. If review shows the level is no longer required or a lesser quantity is justified, AFMC will process an Adjusted Stock Level Delete input to delete the level or Adjusted Stock Level Change input to adjust the authorized quantity.

2.2.5.4.2.3.2. Use the Special Level Review Listing or comparable ILS-S

Query to manage and or delete any Permanent Levels that need deletion.

2.2.5.4.3. Temporary Levels.

2.2.5.4.3.1. When a change in mission or new mission requirements justify the need for an ASL and the purpose for the level indicates that future demand will result in a self-sustaining level, AFMC will establish the level as a temporary level using Sustainment Flag T.

2.2.5.4.3.2. Using Sustainment Flag T, process an Adjusted Stock Level Load or

Adjusted Stock Level Approval Date Update input with a determined expiration date. The approval date will be computed by subtracting 730 days from the expiration date. This date will be entered on the Adjusted Stock Level Load or

Adjusted Stock Level Approval Date Update transaction.

2.2.5.4.3.3. Temporary Levels can be loaded as a Minimum, Maximum, or Fixed type level, as Type Level Flag A, B, D or E. In most cases, Temporary Levels should be loaded as Minimum to allow the ASL to be deleted or become Memo once the normal demand computation meets or exceeds the ASL.

2.2.5.4.3.4. Use the Special Level Review Listing or comparable ILS-S Query to manage and or delete any Temporary Levels.

2.2.5.4.4. Directed Levels

2.2.5.4.4.1. Adjusted Stock Levels directed from higher levels are termed

AFMAN23-122 9 FEBRUARY 2016 21

directed because the quantity, application, justification, and approval have already been determined.

2.2.5.4.4.2. Directed Levels can be loaded with Sustainment Flag P or T as determined by the directing activity.

2.2.5.4.4.3. All directed ASLs are established in the ILS-S as either a minimum memo ASL, maximum, or fixed firm ASL upon receipt. Any Type Level Flag can be used per the directing activity of the level request. See Adjusted Stock

Level Load, Change, Delete Transaction (1F3) in AFH 23-123, Vol 2, Pt 1, Ch 2 for more information and processing directed levels loads, changes and deletes.

2.2.5.4.4.4. Directed Levels are reviewed upon changes in mission or activation/deactivation of major weapons systems.

2.2.5.4.4.5. If review shows the level is no longer required or a lesser quantity is justified, AFMC will coordinate with directing activity on deletion/change of the

ASL.

2.2.5.5. The following actions will be performed when ASLs are disapproved:

2.2.5.5.1. AFMC personnel will prepare an Adjusted Stock Level Delete input as prescribed in Adjusted Stock Level (ASL) Delete Input Format (1F3D), AFH 23-123, Vol 2, Pt 1, Ch 2 to delete the ASL detail record.

2.2.5.6. ASL requests for AFMC-managed non-airborne Communications-Electronic (C-

E), Space, Weather, Radar, and Missile Systems are submitted electronically

(439SCOS.GWM.LDL@us.af.mil) by the requestor to the MAJCOM/Lead MAJCOM.

MAJCOM/Lead MAJCOM will forward to appropriate SCOS. SCOS will obtain Lead

Command/AFSSA approval.

2.2.5.7. ASL Load to Interchangeable and Substitute Group (I&SG). AFMC personnel may load Minimum, Maximum, or Fixed ASL detail records to any item within an ISG.

Moreover, AFMC personnel may load multiple detail records to the same item or group when: (1) the ASL is required to support different end items; (2) support is required by different shops within the same organization; or (3) support is required by different base organizations.

2.2.5.8. Guidelines for approving ASL requests are as follows:

2.2.5.8.1. AFMC loads a memo detail level and retains a suspense copy pending approval/disapproval. After final approval has been coordinated, process the ASL load, change, update, or delete transaction. AFMC enters the approval date based on the desired expiration date on the Adjusted Stock Level Load or Adjusted Stock

Level Approval Date Update transaction. This action loads the approval date and establishes the ASL detail record as confirmed (FIRM). The suspense copy can be destroyed.

2.2.5.8.2. For AFMC-managed requests, an Adjusted Stock Level Approval Date

Update must not be processed until an approval is received. If this input is processed before materiel manager approval, is obtained the materiel manager will return an

ASL reject transaction with a reject code "R." If this occurs, AFMC will process an

Adjusted Level Validation input with an asterisk in position 73 that blanks the mailto:439SCOS.GWM.LDL@us.af.mil

22 AFMAN23-122 9 FEBRUARY 2016

approval date and changes the ASL detail from firm to memo. See Adjusted Stock

Level Load, Change, Delete Transaction (1F3) in AFH 23-123, Vol 2, Pt 1, Ch 2.

2.2.5.8.3. If an ASL Reject Notification is received from the materiel manager and there is an approved authorization on file, contact the appropriate materiel manager. Refer to AFH 23-123, Vol 2, Pt 1, Stockage Procedure for ASL Reject

Notification (XE5) transaction processing.

2.2.5.8.4. New ASL requests will be reviewed for supportability for NSNs coded as

Obsolete (AAC V or Y), AF Inactive, or NSNs assigned NPPC 2, 3, 5 or 9. If an ASL is required for this type of item, then the requestor must submit an AF Form 86 or coordinate with the IMS/ES at the owning AFMC Air Logistics Complexes to re-catalog the NSN. The new level may be approved after the AF Form 86 action is completed and the NSN is stock listed and procurable. ASLs are authorized for obsolete items with an active repair contract. These items are coded obsolete with no plans for future procurement; however they have an active repair contract to support the weapon systems. Note: Previously existing ASLs are authorized if an AF Form 86 action has been submitted. However, when exception codes are loaded to prevent future usage, the special levels will be deleted.

2.2.5.8.5. ASLs are not authorized for stock numbers with ERRC "ND" and "NF”.

Exceptions are TLF D Maximum Level Zero and Non-AFMC managed ERRC

“NF1”.

2.2.6. Exception Management

2.2.6.1. Exception Codes

2.2.6.1.1. Exception codes are assigned to item records when exception processing is necessary for the management of excesses, requisitions, shipments and issues.

Personnel at AFMC will manage the exception code program. The LRS/Materiel

Management Activity is responsible for all locally assigned exception codes. See

AFH 23-123, Vol 2, Pt 1, Ch 2 [EEX/SEX] and Ch 5 [IEX/REX] for exception code processing instructions.

2.2.6.2. Exception Phrases

2.2.6.2.1. Exception phrases are assigned to the ILS-S when exception processing is necessary…