Attachment_13_-_ILS_Handbook.pdf

ILS Handbook for Supply, Logistics and Property Management Evaluations During Availability Support Visits in the Military Sealift Command

IntegratedLogisticsSupport(ILS)HandbookforSupply,LogisticsandPropertyManagement

EvaluationsduringAvailabilitySupportVisitsintheMilitarySealiftCommand

Chapter 1

Chapter 2 – Civilian Mariners (CIVMAR) Availability Support Visits Supply Management Review

Chapter 3 – Contract Operator’s Availability Support Visits Property Management Evaluation

Exhibits………………………………………………………………………………….. 33

Chapter 1

I. General

This handbook has been designed to provide guidance and direction necessary for Integrated Logistics Support (ILS) and other personnel assigned to Military Sealift Command to perform a standard, statistically sound property evaluation for both Contract-Operated and CIVMAR ships during Availability Support Visits. The criteria and areas subject to evaluation were selected based on known risk and will be subject to change as time identifies changing risk levels.

The processes for property data sample selection and random observations throughout the ship sufficiently allow for elimination of bias and sound selection techniques.

Property evaluations and/or audits in past history have lacked a sense of standardization, thus each cognizant group left to their own discretion on how to perform or what to evaluate. There was too much emphasis on selecting a percentage sample of specific characteristics and calculating validity rates and not enough emphasis on other critical data and the big picture.

The intent of this handbook is to share some experience and provide for a standard and common review process across the entire fleet. It is not the intent of this document and the guidance contained herein to make experts of ILS representatives in the profession of property administration. It is however, the intent to implement a sound practice of data gathering and examination of accountability in order to formulate sensible, risk-based operations for property management. This document provides some of the basic property information and elements of accountability for government property that should be examined for any property control system, whether a contractor’s or a government’s, including basic definitions, performance standards and evaluation techniques.

This document is intended to remain flexible, so that as changes are identified that will improve the methods and techniques, these can be rapidly incorporated and delivered to the field in a timely fashion. There are three chapters and details necessary to understand criteria for review, perform adequate sampling, prepare required documentation and forward a summary of results. Although not every angle or possibility is described, the individuals applying the basic review and decision practices identified herein are expected to utilize common sense and good judgment.

II. Ethical Responsibility

Ethical responsibility is very important while performing property evaluations. It is of particular value to also note that every effort should be made by the ILS representative to avoid conflict with the ship’s crew with respect to any of the findings or concerns over conclusions that may indicate medium or high risk. We are of the belief that every ILS representative is above reproach and will maintain the highest ethical standards.

Some examples of unethical practice1 while performing a property management evaluation:

• The deliberate altering of sample data.

• The deliberate selection of sample item/numbers to "salt" the sample with known defects.

• The deliberate avoidance of areas where known defects exist.

• The deliberate use of an inappropriate analysis methodology.

• The tempering of a function's deficiencies because you may like the ship’s supply officer or contractor's property manager and don't want him or her to look bad.

• The worsening of a function's deficiencies because your boss told you to "Get them because they've gotten off easy the past few years."

III. Definitions A Property Control System (PCS) is defined as “an entity’s internal management program for protecting, preserving, accounting for, and controlling property from acquisition through disposition, including both application and compliance”.

For the purposes of this document, the written procedures produced by the contractor (or the government, as the case may be) are required to describe the details for protection, preservation, accountability and control of all government property in their possession. The contractor’s (or the government’s) compliance with those written procedures is crucial to the successful operation of the property control system.

The PCS contains major subsets or elements, known as Property System Functions. Property system functions are defined as “a major portion of a property control system. Examples include property management, acquisition, receiving, identification, records, movement, storage, physical inventories, reports, consumption, utilization, maintenance, subcontractor or alternate location control and disposition”

IV. Techniques For each control function and/or property type to be evaluated reflected in Exhibits 1 through 14, it is recommended the following techniques be used to obtain results. These techniques coincide with each area to be reviewed as either

As extracted from “Systems Analysis – A Primer” by Dr. Douglas Goetz, Professor of Contract Management DAU statistical sampling or observations obtained by walking the ship. Interviews with ship’s crew can be used when information is required in order to make a reasonable decision concerning a particular area being reviewed.

• “Interview with ship’s crew” means taking the responsibilities as identified in the written procedure and asking questions of the appropriate crew member to determine their familiarization with their specific requirements. It also means inquiring to obtain clarity and information during a particular evaluation.

• “Statistical sampling” refers to the gathering of data, determining a population and extracting a sample of documentation to determine compliance to procedure requirements and to determine if the procedures provide effective guidance for the particular criteria.

• “Walk the ship” refers to the use of observation techniques to determine other areas of storage throughout the ship and if the control system provides effective controls for other unique below deck operations, which affect government property.

It is not the intent of this document to make you an expert in property control systems, rather to provide the tools to evaluate a system of property controls and determine if those controls are working. We realize that many times, an availability period requires extensive work to keep up with all the configuration changes required. We also realize that there is the possibility that time may run out before a property evaluation can be completed. However, the property evaluation data requested in this handbook is such that in most cases, it can be gathered during the same periods as gathering required ILS data and should minimize any impact towards lack of completion.

Chapter 2 – Civilian Mariners (CIVMAR) Availability Support Visits Supply Management Review

This chapter is divided into two parts. Part I, identified below, provides the minimum shipboard supply standards of performance, while Part II is the performance review requirements to be performed by ILS representatives for CIVMAR ships during availabilities.

A. Supply Shipboard Performance Standards The following standards are the minimum expected for every CIVMAR ship.

1. Supply Department Ship Support Readiness

• Endurance

90 days consumables/PMS materials

• Stock Availability

100% on hand and on order for AT1

• Inventory Validity

90%

100% DLR

• Repair Parts Effectiveness

65% Gross

85% Net

• Food Service

45 days chill

90 days freeze and dry

30 days supply of paper products

90 days supply of consumables/cleaning gear/sanitation supplies

• Exloc

100% range and depth of health and comfort items

2. Ship Support Standards

• Requirement Processing

CASREP and ANORS requirements will be processed immediately. Local department reps will determine if overtime will be used in processing CASREP/ANORS requirements.

Incoming requirements must be reviewed and acted on in a timely manner. Priority repair parts required for corrective or scheduled maintenance must be issued the same business day. Local department reps will determine if overtime will be used in processing CASREP/ANORS requirements.

Supply Department will use the material identifier provided to determine if material is onboard. Supply Department will contact requiring department to clarify identity of material.

• DTO Off Ship Requisitions

Once identifier is provided and no material is onboard, Supply Department will create and transmit off ship requisitions as soon as practical. DTO repair parts will be placed on order within two business days. Local department reps will determine if overtime will be used in processing CASREP/ANORS requirements.

• Stock Replenishment

All AT code 1 items will be replenished one for one. Exceptions must be documented on a COSAL Feedback Report. All stock replenish requirements will be transmitted to a local FISC for RRAM assets screening. Stock replenishment requisitions must be created and transmitted within 10 business days.

• NIS/NC Repair Parts

All NIS/NC repair parts requirements will be reviewed to determine if allowances or Ship CLIP updates are required. Review and applicable Fleet Feedback must be completed prior to or in conjunction with the next monthly SEAS Report.

• Material Deliveries

Supply Department will take delivery of material for the ship.

Supply Department will perform receipt inspection and arrange to load material onboard.

DTO material may be turned over at a location suitable to requiring department.

When no departmental representatives are available, Supply Department will perform receipt inspection, arrange to load material onboard and retain custody until material can be turned over.

• Outstanding Requisition Files

CASREP and ANORS requisitions/shipments will be monitored daily. Local department reps will determine if overtime will be used in monitoring CASREP/ANORS requirements

All off ship requisitions will be monitored. All requisitions must have valid supply status. Priority requisitions for repair parts will be monitored closely and follow-ups transmitted monthly.

Updates to requisitions due to supply status will be posted within 10 business days.

100% MOV of outstanding requisitions will be performed once each quarter and two weeks prior to crew rotation/turnover.

Purchase Card

Supply Department will maintain purchase card records required by MSC and USN instructions. Reports will be transmitted ashore monthly.

• SEAS Report

SEAS report will be reviewed and acted upon monthly. Resulting allowance changes, requisitions and Feedback must be completed as soon as practical.

DLR

All DLR turn ins must be completed as soon as practical.

Ship’s departments must move carcass to the main deck or location suitable for packaging and off ship transfer. Supply Department must prepare all DLR paperwork;

package and ship turn ins. DLR carcass challenges will be processed within 5 business days of receipt onboard.

• Shipments

Supply Department must process all shipments of material or cargo.

Processing includes proper packaging, shipping paperwork and coordination with shipper. Supply Department must monitor shipments until delivered to ultimate destination.

• Personal Effects

Supply Department must process all personal effects.

Processing includes proper inventory, packaging, shipping paperwork and coordination with shipper.

Supply Department must monitor shipments until delivered to ultimate destination.

• HAZMAT

Inventory of all HAZMAT will be maintained IAW MSC Instructions. HAZMAT will be minimized. HAZMAT will be offloaded as soon as practical.

• Ammunition

With exception of cargo ammo on AE and AOEs, Supply Department will administer all ammunition requisitions and create applicable ammo transaction reports.

• Storerooms

Supply Department is responsible for the security and maintenance of storerooms.

Supply Department must protect material in storerooms and use applicable packaging, dunnage to secure the item for storage at sea.

Supply Department must manage all special material in storage, and ensure required inspections/maintenance is accomplished on storeroom assets.

• Inventory

Random Spot inventories of 400 line items and locations will be completed each month

DLRs will be inventoried annually and prior to all major deployments.

• Controlled Equipage/Sensitive

Supply Department will maintain custody records and coordinate inventories for all items designated by the PM or master.

• Expenditures

Supply Department will generate all paperwork required and maintain ships expenditure records.

• Budget

Ship Budget requirement will be developed, reviewed and distributed in August and March Departmental Budget reports will be printed and distributed weekly

Phased Replacement Plan will be developed annually in conjunction with the budget.

OPTAR Budget augment requests will be developed as required.

• Fleet Feedback

Ship Clip must be monitored to identify new Feedback.

Feedback will be reviewed and exported within 10 business days.

Exported Feedback must have status within 45 days. If no status is received, ship must follow up with PM shore support representatives.

• Configuration Management

Supply Department will remain aware of the maintenance activity executed by ship force and external activities. Configuration or other support updates will be created and transmitted ashore within 30 business days.

When notified by a ships technical crewmember, Supply Department will research configuration or logistics support issues in Ship CLIP, and when required, create/transmit feedback within 60 days of notification.

• Defective Material, Quality Deficient Material and Price Challenges

Supply Department must create RODS and QDRs for all material deficiencies with extended value in excess of $1,000.

QDRs must be created for all MEC 1 repair parts regardless of dollar value.

Price challenges will be generated when extended over/under value of item exceeds $1,000.

ROD/QDR/Price Challenge must be created and transmitted within one month.

• Missing Lost or Stolen Material Reports (MLSRs)

Supply Department must create MLSR for all stock material with extended value in excess of $1,000.

MLSRs must be created for all Security Items regardless of dollar value.

MLSR must be created and transmitted within one month.

Supply Department will assist other departments in completing MLSRs

Supply Department will maintain ship MLSR files.

• Surveys

Surveys must be created and transmitted within one month.

Supply Department will assist other departments in completing Surveys.

Supply Department will maintain ship Survey files.

B. Performance Review Requirements

Each ship will be reviewed following the criteria and guidance in the following paragraphs. The ILS representative will extract a variety of samples and examine many different characteristics in order to determine whether the minimum supply and property standards of performance have been met. Forms to be used and reporting formats are described in Exhibits 1 through 14.

I. Entrance Briefing:

Before beginning the evaluation, the ILS representative shall engage the appropriate and available members of the ship’s crew (Master, Chief Engineer and Storekeeper) and negotiate a date and time to briefly discuss what property criteria will be reviewed.

II. SHIPCLIP Maintenance Before any physical counts are conducted or data analyzed, the ILS representative will extract the SHIPCLIP update information and determine whether all updates applicable to the ship have been posted. List the 3 most recent updates posted to SHIPCLIP in the final report shown in exhibit 14.

III. Repair Part Inventory (except DLR) AND Stock Checks – Records to Floor 100% on hand and on order for AT1 – Follow the process steps below:

The ILS representative will perform a thorough analysis of repair part inventory validity, as follows:

1. Select and run SM5 for a 10% Random Sample of items and the Equipage, Repair Part or Consumable (ERC) Code = R.

2. When prompted for "Single" or "Multiple" location format option, enter "M" for multiple and print the worksheet(s). The total number of line items to be counted will be displayed/printed on the last worksheet.

3. From that listing, randomly select a total of 68 line items. Select every fourth line item (select first, select fourth, etc.) to obtain a representative sample of all possible storerooms. The 68 items will be the total number subject to verification in the storerooms. However, the first 34 samples will be examined and completed to determine whether the second sample of 34 will be subject to completion. For each line item, verify on-hand count, location, part number, manufacturer, stock number, serial number, appropriate shelf life data and condition of the item.

Where an item has an official allowance in SHIPCLIP and the physical count quantity is less than the allowance, verify that the item has been reordered within 10 business days. If items are rusted, pitted, corroded or otherwise questionable for use, this shall be documented as a finding.

4. Once the listed items have been inventoried, verify all information from the worksheets used in the storerooms with the accountable record in SM. Print a copy of each 1114 Stock Record Card and the Storeroom Printout worksheet from SHIPCLIP for backup evidence after the physical counts are completed. Be sure to check each allowance quantity in SM with the official allowance in SHIPCLIP.

Differences shall be documented on the worksheets. Be sure to mark these sheets and cross-reference them to the appropriate random sample originally selected from the 10% sample list.

5. Match all data extracted from the actual line item counts in the storerooms to the appropriate 1114. Perform a line-by-line comparison to verify (a) counts between the SRC and the storeroom, (b) all line item data as identified in step 3 above, and

(c) allowances between SHIPCLIP and SM for the samples examined are the same.

If 3 or more sample items have 3 errors each, such as allowances, counts, condition problems, etc. the second sample of 34 shall be completed.

Documents all results using the format of Exhibit 1, Repair Parts Analysis Records to Floor

IV. Repair Part Inventory – Floor to Records The ILS representative will go the storerooms and randomly select a total of 68 bin locations, without knowledge of the records, and which adequately represents all repair part storerooms. However, the first 34 samples will be examined and completed to determine whether the second sample of 34 will be subject to completion. For each line item selected at random, verify on-hand count, location, part number, manufacturer, stock number, serial number, appropriate shelf life data and condition of the item. (NOTE: When checking the storeroom data against the record, verify that where an item has an allowance and the physical count quantity is less than the allowance, the item has been reordered within 10 business days. If items are found in the bins rusted, pitted, corroded or otherwise questionable for use, this shall be documented as a finding.

Once the entire sample base of 34 items count and other data have been documented, go to SM, extract and print the appropriate 1114 stock record cards from SM and the storeroom printout inventory from SHIPCLIP. Perform a line by line comparison to verify (a) counts between the SRC and the storeroom are correct, (b) all line item data are correct and accurate as identified above, and (c) allowances between SHIPCLIP and SM for the samples examined are the same.

Be sure to check each allowance quantity in SM with the official allowance in SHIPCLIP. Differences shall be documented on the worksheets. If 3 or more sample items have 3 errors each, such as allowances, counts, conditions problems, etc. the second sample of 34 shall be completed.

Documents all results using the format of Exhibit 2, Repair Parts Analysis Floor to Records

The inventory validity percentage is determined/calculated by dividing the total number of inventory count and data discrepancies shown on exhibits 1 and 2 by the total number of items inventoried.

V. DLR Inventory Validity

1. Select and run SM5 for a DLR (7 Cog) inventory list

2. When prompted for "Single" or "Multiple" location format option, enter "M" for multiple and print the worksheet(s). The total number of line items to be counted will be displayed/printed on the last worksheet.

3. From that listing, randomly select a minimum of 18 items. The 18 items will be the total number subject to verification in the storerooms. For each line item, verify on-hand count, location, part number, manufacturer, stock number, serial number, appropriate shelf life data and condition of the item. . If items are rusted, pitted, corroded or otherwise questionable for use, this shall be documented as a finding. Where a DLR item has no allowance and the physical count quantity is more than the allowance, verify that a feedback or allowance change request has been submitted to request an allowance.

worksheets used in the storerooms with the accountable record in SM. Print a copy of each 1114 Stock Record Card and the Storeroom Printout worksheet from SHIPCLIP for backup evidence. Be sure to mark these sheets and cross-reference them to the appropriate random sample originally selected from the 10% sample list.

5. Match all data extracted from the actual line item counts in the storerooms Perform a line by line comparison to verify (a) counts between the SRC and the storeroom, (b) all line item data as identified in step 3 above, and (c) allowances between SHIPCLIP and SM for the samples examined are the same.

The inventory percentage is determined/calculated by dividing the total number of inventory count and data discrepancies shown on exhibits 3 by the total number of items inventoried. DLR’s are required to have 100% accountability.

Document all results using the format of Exhibit 3, DLR Inventory Analysis

VI. Storeroom Conditions and Storage Practices During the inventory process specified above, the ILS representative will observe and document the conditions of the repair part storerooms and storage practices.

In addition, ILS representatives will review at least six other storage areas (i.e.;

machine shop, gold lockers, electrical shop, radio room, etc) and document the results of those random reviews. Refer to Exhibit 4 for documenting the results of these reviews.

VII. Random Inventories Random spot repair part inventory results maintained by ship’s crew for locations and counts conducted monthly will be verified by the ILS representative through extracting a reasonable and responsible group of samples (minimum of 18), making actual counts and validating this information against inventory postings in SM5. Make sure to review the inventory posting information in OMSTOCK.DBF. As part of this process, the ILS representative will also request a copy of the last DLR physical inventory counts and perform sample verifications as well. Document all differences between ship’s counts and record postings.

Refer to Exhibit 5 for documenting the results of these reviews.

VIII. Repair Parts Effectiveness Effectiveness shows how often the supply department has the repair parts requested or required by technicians available for issue on the day the requirement is submitted. A high percentage indicates that parts are available most of the time and that technicians are able to schedule and perform maintenance without delays due to non-availability of parts onboard. A high percentage also reflects a more accurate equipment configuration with spares allowances that match the required planned maintenance and predicted parts failures. A higher percentage also reflects that the ship's storeroom and inventory management procedures are adequate. A low percentage can be an indicator of several problems that may impact the ship's ability to operate independently and to support itself. When a low percentage is experienced, the possible problem areas should be reviewed to ensure that more serious support problems do not exist.

Net Effectiveness - The percentage of demands (1250's) for allowed storeroom items, which were satisfied from shipboard stock at the time items were requested.

Net Effectiveness is one indicator of timely stock replenishment and management of outstanding storeroom stock requisitions. Net Effectiveness for repair parts should be at least 85%.

Gross Effectiveness - The percentage of total demands (1250's) for repair parts, which were satisfied from shipboard stock at the time items were requested. Total demands include requests for not carried repair parts. Not carried repair parts may be an indicator of a deficiency on the Allowance Parts List (APL) for the end item.

If a repair part required for planned or corrective maintenance is not listed on the APL, a feedback report should be submitted to add the item to the APL. Gross Effectiveness should not be lower than 65%.

Not Carried Rate - The percentage of total demands for repair parts that are not carried in stock. The not carried rate serves as a measurement of the effectiveness and validity of the COSAL to support installed equipment. A high not carried rate may indicate a mismatch between the actual corrective maintenance requirements and the MSC Lead Allowance Parts Lists (MLAPLs) which are encoded to reflect the MSC maintenance philosophy for all equipment(s). High rates of not carried items may also be an indication of configuration errors or omissions. Planned Maintenance (PM) material requirements may not be properly identified or included as ship's storeroom repair parts allowances. The Not Carried repair parts rate should not exceed 30%.

Effectiveness can be reviewed by using SEAS reports generated ashore for individual ships. ILS representatives should review and analyze the effectiveness (SEAS) reports and, if necessary, provide assistance to the shipboard supply personnel in correcting or improving the effectiveness. Refer to Exhibit 6 for documenting the results of these Supply Effectiveness reviews.

IX. Test Equipment, Sensitive and DC Locker Property (formerly Controlled Equipage and other convertible assets)

NOTE: The controlled equipage program formerly mandated by NAVSUP- P485 has been completely redefined, renamed to sensitive property and now contains only the following items:

Rifle 7.62 M14 W/E

Binoculars

Shotgun 12 GA

M9 9MM Pistol

Radio - Hand-Held (except survival radios)

Ammunition

AN/PVS-7C Night Vision Device

Spotlight, handheld maxi-beam

Obtain a listing of test equipment, a full inventory of all DC lockers and sensitive property records. Extract a minimum of 34 combined samples from the three lists and verify NIIN, part number, serial number, nomenclature, quantity on hand, last inventory date, last inventory quantity, item location, who has custody, and the posting and approval of adjustments (i.e., DD 200 REPORT OF SURVEY, DD1149, etc) for each sample selected. Verify each sample data against the master accountability record (i.e.; NAVSUP 306, DC locker master inventory, engineering test equipment list, etc) and make sure all information is correct.

NOTE: Weapons do not require physical verification as long as two shipboard representatives sign and certify the accuracy of the weapons verification reports to NAWC Crane. This does mean that the annual weapons report to NAWC Crane will require review and verification.

NOTE: When reviewing Test Equipment items, the purpose is to determine what is actually onboard, whether the ship is implementing adequate controls for the item reviewed, whether the item is active or obsolete as determined by the latest APL/AEL test equipment requirements and if obsolete, whether a configuration change request and an appropriate funded requisition has been submitted to obtain the correct replacement.

Refer to Exhibit 7 for documenting the results of these Test Equipment, Sensitive and DC Locker property reviews. Any item that cannot be located and the records have not been posted with an approved adjustment will be documented as a finding. If 3 or more sample items (non sensitive items only) have 3 errors each, such as counts, part numbers, serial numbers, conditions problems, etc. a second sample of 34 shall be completed.

X. Non-Repair Part Closed Receipt Files Perform a thorough review of the closed receipt files for non-repair part receipts.

Verify that orders were properly placed including any DD 200 REPORT OF SURVEY references and that quantities were allocable to the need. Refer to Exhibit 8 for documenting the results of these receipt file property reviews.

XI. Outstanding Requisition File Review the outstanding requisition file and validate all items over 60 days. Verify for each sample that the ship has reconfirmed that need of the item, the ordering priority and continuously validated the delivery status. Refer to Exhibit 9 for documenting the results of these Outstanding Requisition reviews.

XII. Ammunition Inventory Accuracy and Reporting Get with the ship’s Master or Supply Department Representative and obtain the listing of all ammunition assigned to the ship for force protection purposes. Select at least two groups or lot numbers as the sample base and perform a joint inventory with the ship representative. Document counts, condition, last inventory reports to Crane and verify all ATR submissions as shown in Exhibit 10. If the inventory count result does not match with the official accountable records and last reported inventory quantity, a complete recount of the defective lot will be conducted.

XIII. Expenditures/Beyond Economical Repair/Scrap Reviews

Obtain the most recent expenditure listings and locate all items, which have been removed from service due to being scrap, or uneconomical to repair. Select a representative sample and review each sample to verify that proper documentation is available to support transfers, disposals, beyond economical repair decisions, surveys and cancellations. Make sure that proper approvals have been obtained for each support document generated. Verify that all samples reflecting disposal or transfer have actually been removed from the ship and the receipt record for transfer or disposal of the item supports the closing of the transaction. Document the results of this review using Exhibit 12.

XIV. Configuration Accuracy, Equipment Sight Validations Walk the ship and take a sample of all major installed systems (MCC 3 and 4 Equipment). Any sample that duplicates equipment validations that are part of the ILS availability process should be bypassed. The sample size selected should be representative of all systems on board. Document findings of actual equipment validations with that of the latest configuration information in SHIPCLIP in the final report of exhibit 13.

XV. Hazardous Materials Verify that an onboard inventory of all hazardous materials is being maintained in accordance with COMSC Instruction 4110.1B.

XVI. Final Report and Backup Documentation

Prepare the final report as shown in exhibit 13 and submit within the 10-day period as specified. Complete the worksheets from the attached exhibits using the automated (computer) method and send results via email.

1. Worksheet Completion

• The worksheets of exhibits 8, 9, 10 and 11 may be consolidated as long as the basic characteristics of the sample worksheets are examined and documented. However, it is recommended that if consolidation does take place, that exhibits 8 and 9 be combined and 10 and 11 be combined. Be sure to indicate clearly on the worksheets that consolidation has occurred.

• For all samples, you must print and submit all backup documents and worksheets as part of the final report. Any sample rated questionable or unsatisfactory, you must provide a copy of the source document(s) or other specific reference that disclosed the unsatisfactory condition. Source documents include purchase orders, requisitions, receipts, inventory records, disposal documents, etc. For each worksheet completed, any three sample records having 3 or more sample errors each, such as wrong location, incorrect count, condition, serial number, etc., will require the completion of a second sample of 34 (or other sample size if so specified). If the second sample finds the same amount of samples (3) or more with errors, both samples will be rejected and the final report prepared clearly indicating corrective action is required of the CIVMAR component.

• NOTE: Where a sample reflects a difference in count between actual and record amounts, has changes in stock or part number, locations, asset condition, or other adjustments without reflecting those changes on the records; these shall be documented as a sample error for the purposes of ILS property support only.

• For any worksheet evaluation area that could not be completed, write NOT PERFORMED, DATE and REASON (i.e.; lack of time) in large letters across the particular worksheet and submit as part of your back-up documents.

2. Rating System

• For each control function or type of property reviewed and worksheet completed with sample data, a rating of Red, (High Risk) Yellow (Medium Risk) or Green (Low Risk) shall be assigned based on the following scale.

RED –

High Risk

YELLOW –

Medium Risk

GREEN –

Low Risk

For each control function or type of property evaluated and worksheet completed, and two or more sample groups (i.e.; 34+34) are selected, 4 or more samples containing at least 3 sample errors each that are similar in nature is considered high risk.

For each control function or type of property evaluated and worksheet completed, and two or more sample groups (i.e.; 34+34) are selected, 3 or less samples containing at least 3 sample errors each that are similar in nature is considered medium risk.

For each control function or type of property evaluated and worksheet completed, and one sample group (i.e.; 34) is selected, 2 or fewer samples containing not more than 2 sample errors each that are not similar in nature.

XVII. Exit Conference Upon completion of the review, the ILS representative shall schedule and conduct an exit conference with the ship’s crew to discuss the overall results of the property evaluation. In addition, this conference should address any function or functional segment in which the adequacy of controls, procedures, or the application thereof was found to be questionable or unsatisfactory. The ILS representative will advise the Master that any required corrective actions will be in the final report and received from the PM1 Logistics Manager.

XVIII. Posting of Results to CMLS Within forty-five days after MSC property administration receipt and forwarding of the final report, the results will be posted to CMLS in an area specifically reserved for that ship and limited to viewing by specific sources.

Chapter 3 – Contract Operator’s Availability Support Visits Property Management

Evaluation

This chapter outlines the minimum performance evaluations to be conducted on all Contract Operated ships. You are being requested to perform a variety samples and examine many different characteristics in order to determine whether the minimum supply and property standards of performance have been met. Forms to be used and reporting formats are described in Exhibits 1 through 14.

I. Entrance Briefing:

Before beginning the evaluation, the ILS representative shall engage the appropriate and available members of the ship’s crew (Master, Chief Engineer and Storekeeper) and negotiate a date and time to briefly discuss what property criteria will be reviewed.

II. SHIPCLIP Maintenance Before any physical counts are conducted or data analyzed, the ILS representative will extract the SHIPCLIP update information and determine whether all updates applicable to the ship have been posted. List the 3 most recent updates posted to SHIPCLIP in the final report shown in exhibit 13.

III. Repair Part Inventory (except DLR) AND Stock Checks – Records to Floor 100% on hand and on order for AT1 – Follow the process steps below:

1. Select and an inventory audit in shipclip for a 10% Random Sample of items and the Equipage, Repair Part or Consumable (ERC) Code = R.

2. When prompted for "Single" or "Multiple" location format option, select multiple. The total number of line items to be counted will be displayed/printed on the last worksheet.

3. From that listing, randomly select a total of 68 line items. Select every fourth line item (select first, select fourth, etc.) to obtain a representative sample of all possible storerooms. The 68 items will be the total number subject to verification in the storerooms. However, the first 34 samples will be examined and completed to determine whether the second sample of 34 will be subject to completion. For each line item, verify on-hand count, location, part number, manufacturer, stock number, serial number, appropriate shelf life data and condition of the item.

Where an item has an official allowance in SHIPCLIP and the physical count quantity is less than the allowance, verify that the item has been reordered within 10 business days. If items are rusted, pitted, corroded or otherwise questionable for use, this shall be documented as a finding.

worksheets used in the storerooms with the accountable record in ShipCLIP.

Print a copy of each inventory record and the Storeroom Printout worksheet from SHIPCLIP for backup evidence after the physical counts are completed. Be sure to mark these sheets and cross-reference them to the appropriate random sample originally selected from the 10% sample list.

5. Match all data extracted from the actual line item counts in the storerooms to the appropriate inventory record. Perform a line-by-line comparison to verify (a) counts between the inventory record and the storeroom, and (b) all line item data as identified in step 3 above.

If 3 or more sample items have 3 errors each, such as allowances, counts, condition problems, etc. the second sample of 34 shall be completed.

Documents all results using the format of Exhibit 1, Repair Parts Analysis Records to Floor

IV. Repair Part Inventory – Floor to Records The ILS representative will go the storerooms and randomly select a total of 68 bin locations, without knowledge of the records, and which adequately represents all repair part storerooms. However, the first 34 samples will be examined and completed to determine whether the second sample of 34 will be subject to completion. For each line item selected at random, verify on-hand count, location, part number, manufacturer, stock number, serial number, appropriate shelf life data and condition of the item. (NOTE: When checking the storeroom data against the record, verify that where an item has an allowance and the physical count quantity is less than the allowance, the item has been reordered within 10 business days. If items are found in the bins rusted, pitted, corroded or otherwise questionable for use, this shall be documented as a finding.

Once the entire sample base of 34 items count and other data have been documented, go to ShipCLIP, print the inventory record and the storeroom printout inventory from SHIPCLIP. Perform a line by line comparison to verify

(a) counts between the inventory record and the storeroom are correct, and (b) all line item data are correct and accurate as identified above. If 3 or more sample items have 3 errors each, such as allowances, counts, conditions problems, etc. the second sample of 34 shall be completed.

Documents all results using the format of Exhibit 2, Repair Parts Analysis Floor to Records

The inventory validity percentage is determined/calculated by dividing the total number of inventory count and data discrepancies shown on exhibits 1 and 2 by the total number of items inventoried.

V. DLR Inventory Validity

1. Select and run an inventory audit for DLRs (7 Cog) inventory list.

2. When prompted for "Single" or "Multiple" location format option, select multiple. The total number of line items to be counted will be displayed/printed on the last worksheet.

3. From that listing, randomly select a minimum of 18 items. The 18 items will be the total number subject to verification in the storerooms. For each line item, verify on-hand count, location, part number, manufacturer, stock number, serial number, appropriate shelf life data and condition of the item. . If items are rusted, pitted, corroded or otherwise questionable for use, this shall be documented as a finding. Where a DLR item has no allowance and the physical count quantity is more than the allowance, verify that a feedback or allowance change request has been submitted to request an allowance.

worksheets used in the storerooms with the ShipCLIP inventory record. Print a copy of each inventory record and the Storeroom Printout worksheet from SHIPCLIP for backup evidence. Be sure to mark these sheets and cross-reference them to the appropriate random sample originally selected from the 10% sample list.

5. Match all data extracted from the actual line item counts in the storerooms.

The inventory percentage is determined/calculated by dividing the total number of inventory count and data discrepancies shown on exhibits 3 by the total number of items inventoried. DLR’s are required to have 100% accountability.

Document all results using the format of Exhibit 3, DLR Inventory Analysis

VI. Storeroom Conditions and Storage Practices During the inventory process specified above, the ILS representative will observe and document the conditions of the repair part storerooms and storage practices.

In addition, ILS representatives will review at least six other storage areas (i.e.;

machine shop, gold lockers, electrical shop, radio room, etc) and document the results of those random reviews. Refer to Exhibit 4 for documenting the results of these reviews.

VII. Random Inventories Random spot repair part inventory results maintained by ship’s crew for locations and counts conducted monthly will be verified by the ILS representative through extracting a reasonable and responsible group of samples (minimum of 18), making actual counts and validating this information against inventory postings in ShipCLIP. Make sure to review the inventory posting information in ShipCLIP.

As part of this process, the ILS representative will also request a copy of the last DLR physical inventory counts and perform sample verifications as well.

Document all differences between ship’s counts and record postings. Refer to Exhibit 5 for documenting the results of these reviews.

VIII. Repair Parts Effectiveness Effectiveness shows how often the supply department has the repair parts requested or required by technicians available for issue on the day the requirement is submitted. A high percentage indicates that parts are available most of the time and that technicians are able to schedule and perform maintenance without delays due to non-availability of parts onboard. A high percentage also reflects a more accurate equipment configuration with spares allowances that match the required planned maintenance and predicted parts failures. A higher percentage also reflects that the ship's storeroom and inventory management procedures are adequate. A low percentage can be an indicator of several problems that may impact the ship's ability to operate independently and to support itself. When a low percentage is experienced, the possible problem areas should be reviewed to ensure that more serious support problems do not exist.

Net Effectiveness - The percentage of demands (1250's) for allowed storeroom items, which were satisfied from shipboard stock at the time items were requested.

Net Effectiveness is one indicator of timely stock replenishment and management of outstanding storeroom stock requisitions. Net Effectiveness for repair parts should be at least 85%.

Gross Effectiveness - The percentage of total demands (1250's) for repair parts, which were satisfied from shipboard stock at the time items were requested. Total demands include requests for not carried repair parts. Not carried repair parts may be an indicator of a deficiency on the Allowance Parts List (APL) for the end item.

If a repair part required for planned or corrective maintenance is not listed on the APL, a feedback report should be submitted to add the item to the APL. Gross Effectiveness should not be lower than 65%.

Not Carried Rate - The percentage of total demands for repair parts that are not carried in stock. The not carried rate serves as a measurement of the effectiveness and validity of the COSAL to support installed equipment. A high not carried rate may indicate a mismatch between the actual corrective maintenance requirements and the MSC Lead Allowance Parts Lists (MLAPLs) which are encoded to reflect the MSC maintenance philosophy for all equipment(s). High rates of not carried items may also be an indication of configuration errors or omissions. Planned Maintenance (PM) material requirements may not be properly identified or included as ship's storeroom repair parts allowances. The Not Carried repair parts rate should not exceed 30%.

ILS representatives should review and analyze the SEAS reports and, if necessary, provide assistance to the shipboard supply personnel in correcting or improving the effectiveness. Refer to Exhibit 6 for documenting the results of these Supply Effectiveness reviews.

IX. Test Equipment, Sensitive and DC Locker Property (formerly Controlled Equipage and other convertible assets)

NOTE: The controlled equipage program formerly mandated by NAVSUP- P485 has been completely redefined, renamed to sensitive property and now contains only the following items:

Rifle 7.62 M14 W/E

Binoculars

Shotgun 12 GA

M9 9MM Pistol

Radio - Hand-Held (except survival radios)

Ammunition

AN/PVS-7C Night Vision Device

Spotlight, handheld maxi-beam

Obtain a listing of test equipment, a full inventory of all DC lockers and sensitive property records. Extract a minimum of 34 samples from the three lists and verify NIIN, part number, serial number, nomenclature, quantity on hand, last inventory date, last inventory quantity, item location, who has custody, and the posting and approval of adjustments (i.e., DD 200 REPORT OF SURVEY, DD1149, etc). for each sample selected. Refer to Exhibit 7 for documenting the results of these Test Equipment and Sensitive property reviews. Any item that cannot be located and the records have not been posted with an approved adjustment will be documented as a finding. . If 3 or more sample items have 3 errors each, such as counts, part numbers, serial numbers, conditions problems, etc. a second sample of 34 shall be completed.

X. Non-Repair Part Closed Receipt Files Perform a thorough review of the closed receipt files for non-repair part receipts.

Verify that orders were properly placed including any DD 200 REPORT OF SURVEY references and that quantities were allocable to the need. Refer to Exhibit 8 for documenting the results of these receipt file property reviews.

XI. Outstanding Requisition File Review the outstanding requisition file and validate all items over 60 days. Verify for each sample that the ship has reconfirmed that need of the item, the ordering priority and continuously validated the delivery status. Refer to Exhibit 9 for documenting the results of these Outstanding Requisition reviews.

XII. Ammunition Inventory Accuracy and Reporting Get with the ship’s Master and obtain the listing of all ammunition assigned to the ship.

Select at least two groups or lot numbers as the sample base and perform a complete inventory in the presence of the Master. Document counts, condition, last inventory reports to Crane and verify all ATR submissions as shown in Exhibit 10. If the inventory count result does not match with the official accountable records and last reported inventory quantity, a complete recount of the defective lot will be conducted.

XIII. Expenditures/Beyond Economical Repair/Scrap Reviews

Obtain the most recent expenditure listings and locate all items, which have been removed from service due to being scrap, or uneconomical to repair. For all items where determinations were made concerning economics of repair, obtain a copy of the correspondence, which was sent to the contracting officer confirming this decision and making any recommendations as to repair or disposition of the item.

For each sample selected, validate this information by ensuring the item is still on-hand awaiting decision from the contracting officer and that all information about the item and reported to the contracting officer is valid. Document the results of this review using Exhibit 12.

XIV. Equipment Sighting Validations Walk the ship and take a sample of all major installed systems. Any sample that duplicates any equipment validations as part of the ILS availability process should be bypassed. The sample size selected should be representative of all systems on board.

Document findings of actual equipment validations with that of the latest configuration information in SHIPCLIP in the final report of exhibit 14.

XV. Hazardous Materials Verify the contractor operator is maintaining inventories of all hazardous materials in accordance with the applicable provisions of the Code of Federal Regulations (CFR).

XVI. Final Report and Backup Documentation Prepare the final report as shown in exhibit 14 and submit within the 10-day period as specified. Complete the worksheets from the attached exhibits using the automated (computer) method and send results via email.

1. Worksheet Completion

• The worksheets of exhibits 8, 9, 10, and 11 may be consolidated as long as the basic characteristics of the sample worksheets are examined and documented.