Attachment_J.5_NSWCPCD_INST_4440_OPERATING_MATERIALS_AND_SUPPLIES_POLICY.pdf

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

PANAMA CITY DIVISION

110 VERNON AVENUE

PANAMA C ITY, FL 32407-7001

IN REPLY REFER TO

NSWCPCDINST 4440

3 Feb 17

NSWC PCD INSTRUCTION 4440

From : Commanding Officer , Naval Surface Warfare Center , Panama City Division

Subj : OPERATING MATERIALS AND SUPPLIES POLICY

Ref : (a)

(b)

(c)

(d)

(e)

(f)

NAVSEA ltr 4440 Ser 04 - 273/319 of 6 Sep 12 NAVSEA ltr 4440 Ser TD/168 of 20 Dec 12 SECNAVINST 4440 . 33A , Operating Materials and Supplies

- Accountability and Management of 3 Dec 14 NAVSEA ltr 4440 Ser 01 - 042/150 of 31 May 16 Local Memorandum of Agreement between NSLC and NSWC PCD for Warehouse Management signed 25 Feb 16 SECNAV Manual 5210 . 1 , Department of the Navy Records Management Program of May 12

1 . Purpose . To clarify and emphasize Command policy for acquisition , receipt , issue , transfer , management , and consumption of Operating Materials and Supplies (OM&S) .

2 . Promulgation . This is a new instruction and should be Read in its entirety .

3 . Background a . Reference (a) provides Commanders intent and interim guidance for the management of OM&S at Naval Sea Systems Command (NAVSEA) activities . Reference (b) provides interim guidance for procuring and managing OM&S in Navy Enterprise Resource Planning (N - ERP) . Reference (c) establishes the overarching and management policy for OM&S and provides requirements for OM&S within the Department of the Navy (DON) . Reference (d) provides guidance on the identification of all NAVSEA owned or held OM&S transition into a DON approved Accountable Property System of Record (APSR) . Reference (e) provides clarity to roles and responsibility regarding material receipt , warehousing , inventory , issuance , and disposal at Naval Surface Warfare Center , Panama City Division (NSWC PCD) .

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b. Accountability and contro l requirements in support of OM&S are promulgated under this NSWC PCD instruction . This instruction promulgates Command requirements , processes , and responsibilities for acquisition , receipt , inventory , warehousing , and disposal of OM&S at NSWC PCD .

4 . Scope and Applicability . Regular and reserve military members and civilian personnel employed by , hired on a contractual basis by , or serving in an advisory/consultant capacity to the NSWC PCD , shall comply with this instruction .

5 . Discussion a . Sponsor- Owned Material (SOM) , material held at NSWC PCD in support of a program or program office , material harvested from decommissioned ships or other locations , and material procured in support of a program or the program off ice are now deemed as OM&S . I n accordance with references (a) , (b) , (c) , and

(d) , all OM&S purchased by NAVSEA , owned by NAVSEA or located at a NAVSEA activity (including owned by other Navy commands , other Services , or Combatant Commanders) will be loaded and managed in t h e APSR , N- ERP unless the activity is spec i f i cally authorized a waiver in writing by NAVSEA OOB to maintain OM&S in an alternate system .

b . NAVSEA has converted legacy SOM/OM&S inventory and warehouse systems at the Warfare Center (WFCs) into N- ERP on a phased schedu le . Further conversion schedules including additional NAVSEA field activities and contractor sites wi l l be fort h coming . NAVSEA has made a significant investment in the OM&S conversion in order to achieve financial and material reporting compliance and to produce auditable financial records .

It is NAVSEA ' s intent to ensu re OM&S financial and material records are maintained to support auditability .

c . New material procured at NSWC PCD will be done via N- ERP and will comply with OM&S business rules and requirements .

Harvested material will be inducted into N- ERP in accordance with OM&S business rules and requirements .

d . All material procured in support of a project or program at NSWC PCD will be procu red via N- ERP . Material will be procured using a Unique Material Master (UMM) that documents the technical specifications of the material under procurement .

NSWCPCDINST 4 44 0

Existing UMMs are to be extended to the NSWC PCD plant where applicable . A National Stock Number (NSN) can be used in lieu of a UMM as long as the NSN technical specifications meet the technical specifications of the material being procured .

e . In instances where material is authorized to be procured outside of ERP or sent directly from a Sponsor to NSWC PCD , the material will be received into ERP for accountability and auditability . Any such examples shall be coordinated with the Department OM&S Lead , Code 1072 , prior to procurement initiation .

6 . Responsibilities a . Departments shall :

(1) Ensure adherence to this instruction and its governing directives .

(2) Appoint a departmental OM&S lead .

(3) Ensure OM&S is procured and received in accordance with OM&S business rules and requirements.

(4) Ensure material is warehoused/stored in accordance with OM&S business rules and requirements .

(5) Ensure OM&S is issued and consumed in accordance with OM&S business rules and requirements .

(6) Ensure proper disposal of excess OM&S in accordance with OM&S business rules and requirements .

(7) Ensure Department staff and project personnel are trained in OM&S procurement , mqnagement , and disposal .

b . Projects shall :

(1) Request new UMMs for OM&S items that currently do not have an assigned UMM or NSN .

(2) Provide manufacturer ' s part number , Contractor and Government Entity (CAGE) code , unit of issue , price , and item nomenclature to Code 1071 (material master group) for the creation of UMMs .

NSWCPCDINST 4440

(3) Ensure Warehouse Movement Forms are accurately completed and submitted to NSLC for appropriate action .

(4) Ensure all OM&S shipped , transferred , or received at NSWC PCD is done at Central Receiving by Naval Sea Logistics Center (NSLC) personnel and correctly adopted into Navy ERP .

(5) Work with Technical Screening , Code 1071 , to ensure all NSWC PCD OM&S existing on hand inventory levels are checked prior to requesting additional procurement .

(6) Work with Technical Screening , Code 1071 , to ensure all material procurements are properly screened per source of supply laws and OM&S business rules .

(7) Ensure all OM&S issued to Pre - Expended Bins (PEBs) , Work in Progress (WIP) , or Staging areas are managed according to business rules and requirements .

(8) Coordinate with Technical Screening , Code 1071 , and Departmental OM&S Lead , Code 1072 to ensure procured material outside of ERP is properly screened for procurement .

(9) Coordinate with Departmental OM&S Lead , Code 1072 and Naval Sea Logistics Center (NSLC) Receiving to ensure material sent directly from a Sponsor to NSWC PCD is properly adopted into ERP for accountability and auditability .

c . OM&S Lead (Code 107) shall :

(1) Draft local policy and guidance for OM&S .

(2) Promulgate NAVSEA and NSWC PCD OM&S policy .

(3) Report metrics on OM&S procurement and management at NSWC PCD .

(4) Answer data calls regarding NSWC PCD OM&S procurement and management .

(5) Coordinate and ensure training is provided to NSWC PCD personnel engaged in the acquisition , management , and disposal of OM&S .

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(6) Coordinate services provided by NSLC at NSWC PCD .

(7) Evaluate and optimize Purchase Requisition Creation , Material Management , Inventory Management and Warehouse Management N- ERP role mapping levels within NSWC PCD .

(8) Serve as the command point of contact for OM&S .

d . Code 1071 shall :

(1) Create , manage , and submit requests for the assignment of new UMMs .

(2) Extend UMMs to applicable NSWC PCD plants and Storage Locations .

(3) Verify and validate UMMs and NSNs .

(4) Perform Technical Screening of all procurements submitted by NSWC PCD in accordance with NSWC PCD policies , and NAVSEA OM&S business rul es and requirements .

(5) Verify unit of issue and unit of measure for material procurements .

(6) Enter all Purchase Requisitions into ERP .

(7) Correct all Unmatched Disbursements in ERP .

e . Code 1072 shall :

(1) Provi de assistance to technical projects on the adoption of legacy materials .

(2) Assist projects with disposal of surplus and unwan ted OM&S .

(3) Provide projects assistance with establishment of PEBs , WIP , and staging areas .

(4) Conduct random surveys of NSWC PCD work areas to determine adherence to OM&S b usiness rules and requirements .

(5) Monitor requisitions for backorder status .

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(6) Provide feedback to the Defense Logistics Agency regarding Material Obligation Validation report .

(7) Provide projects with assistance updating and canceling material orders .

(8) Perform research and analysis on current stock levels and provide recommendations to projects .

(9) Brief Department Leadership on Department OM&S status .

f . Naval Sea Logistics Command shall :

(1) Coordinate with NSWC PCD , Code 107 to perform all services for NSWC PCD as defined in reference (e) .

7 . Action . Custodians of OM&S shall comply with this instruction and its references .

8 . Records Management . Records created as a result of this instruction , regardless of media and format , will be managed per reference (f) .

P . E . DAWSON

Distribution :

Electronic only , via NSWC PCD Directives iNAVSEA Website