Revised Attachment F - DLA Energy P-11 Dated 29 June 2026.pdf

DLA Energy P-11: Aerospace Energy

OPR: DLA Energy Aerospace Energy (DLA Energy-FEM)

OCRs: DLA Energy Americas (DLA Energy-I)

DLA Energy Business Process Support (DLA Energy-BA)

DLA Energy Europe & Africa (DLA Energy-JB)

DLA Energy Indo-Pacific (DLA Energy-JA)

DLA Energy Middle East (DLA Energy-JD)

DLA Finance Energy (F8-F)

Effective: This guidance is effective upon signature of the approving authority.

Releasability: RESTRICTED. This document is approved for restricted release. It is available to users with Common Access Card authorization on the DLA

Energy official repository.

Applicability: This issuance applies to Aerospace Energy Support Points (AESP) maintaining Defense Working Capital Fund (DWCF) inventory, authorized Aerospace Energy customers who receive product issued from, or procured by an AESP, and authorized Aerospace Energy customers who receive product directly from the supplier as a customer direct sale.

Reissues and Cancels: DLA Energy P-11: "Energy Aerospace," April 7, 2020

Purpose: This issuance implements policy, assigns responsibilities, and establishes procedures for the storage, transport, packaging, forecasting, inventory, and financial management of Aerospace Energy products and Property, Plant & Equipment (PP&E) financed by the DWCF.

Approved by:

BRADLEY J. COOPER

COL, USA

Chief of Staff

DLA Energy P-11

June 30, 2026

TABLE OF CONTENTS

SECTION 1: RESPONSIBILITIES

1.1. DLA Energy-QEM

1.2. DLA Finance Energy (F8-F)

1.3. Military Service Control Points (SCP) and/or Major Commands, Higher Headquarters of Federal Civilian Agencies, Headquarters of Commercial Companies, and Department

Heads of Academic Institutions

1.4 General Acquisition Responsibility

1.5. Centralized Procurement

1.6. Local Purchase Authority

1.7. Local Purchase Conditions

1.8. Aerospace Energy Customers

1.9. Responsible Officer (RO), Terminal Manager (TM), and AESP Manager

SECTION 2: PROCEDURES

2.1. Authorized Customers

2.2. Customer Forecast of Aerospace Energy Requirements

2.3. Application of Forecast for Aerospace Energy Requirements

2.4. Financial Management

2.5. Customer Billing for Aerospace Energy Requirements

2.6. Individuals Responsible for Accountability of DWCF Aerospace Energy Inventory

2.7. General DWCF Aerospace Energy Product Inventory Accountability Processes and

Procedures

2.8. Receiving Aerospace Energy Products

2.9. Recording Product Receipt at an AESP

2.10. Shipment of Product Between AESPs

2.11. Transportation Discrepancies in Vendor Deliveries and Shipment Receipts

2.12. Authorized Sales from an AESP

2.13. Return and Subsequent Resale of Product to an AESP

2.14. Recording a Return of Product to an AESP

2.15. Inventory Measurement Methods

2.16. AESP Physical and Book Inventory Processes

2.17. Variance of DWCF Aerospace Energy Inventory

2.18. AESP Reporting Procedures

2.19. Reporting of Regraded/Converted DWCF Products

2.20. Accounting for DWCF Off-Specification or Excess Product

2.21. Reprocessing of Customer-Owned Hypergolic Products

2.22. Transportation Procedures for Shipment, Return or Movement of Empty with Residual, Partial, and Full Containers

GLOSSARY

G.1. ACRONYMS

G.2. DEFINITIONS

REFERENCES

TABLES

1. Forms Used in Aerospace Energy

2. Inventory Measurement Methods by Commodity

3. Aerospace Energy Product Groups Requiring Forecasts

FIGURES

1. Computing Monthly Prorated Losses

2. Receipt of Shipment Notice

3. Report of Shipment Notice

SECTION 1: RESPONSIBILITIES

1.1. DLA ENERGY-QEM

a. Hold operational authority and responsibility for the entire supply chain for Aerospace

Energy products managed by DLA Energy.

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

c. Maintain responsibility for the management oversight of DWCF inventory of Aerospace

Energy products, as well as functions related to providing total logistics support to customers for

Aerospace Energy products. This includes requirements consolidation, demand management, procurement, packaging, and transportation.

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

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

1.2. DLA FINANCE ENERGY (F8-F)

a. Provides Financial Management and Program support to the Aerospace Energy Program.

b. Provides Financial Management administration and support for budgetary resources, standard prices, financial billings, accounting, and liaison with DFAS.

1.3. MILITARY SERVICE CONTROL POINTS (SCPs) AND/OR MAJOR

COMMANDS, HIGHER HEADQUARTERS OF FEDERAL CIVILIAN AGENCIES,

HEADQUARTERS OF COMMERCIAL COMPANIES, AND DEPARTMENT HEADS

OF ACADEMIC INSTITUTIONS

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

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

1.4. GENERAL ACQUISITION RESPONSIBILITIES. DLA Energy provides the DoD and other Federal agencies with fuel-related services to include award and administration of bulk petroleum, ground fuels, heating fuels, bunker fuels, and aviation fuels contracts. Pursuant to paragraph 242.202(a)(i)(R) of the Federal Acquisition Regulation (FAR), a DLA Energy contracting officer is responsible for awarding and administering DLA Energy contracts.

Regulations governing petroleum contract awards and administration procedures include:

a. The FAR, which provides Federal Government procurement guidelines and procedures.

b. The Defense Federal Acquisition Regulation Supplement, which provides DoD-specific procurement guidelines and procedures.

c. The DLA charter, DoD Directive 5105.22, which provides DLA-specific procurement guidelines and procedures.

1.5. CENTRALIZED PROCUREMENT

a. Centrally procures and managed items, including liquid or gaseous propellant fuels and oxidizers for rockets, missiles and spacecraft, and other related items. Questions and concerns regarding contract award or administration should be directed to the Aerospace Energy-FEM

Contracting Officer.

b. The Contracting Officer may appoint a contracting officer representative (COR) or a contracting officer technical representative (COTR) to assist with administrative or quality matters. The appointment documents define the scope and limits of COR and COTR responsibilities.

c. Aerospace Energy centrally purchases aerospace customer direct products above an annual volume defined on a geographical or program basis. Activities are not required to use

DLA Energy contracts for requirements that fall below established annual volumes. However, Aerospace Energy will support lesser requirements if requested and support is practicable within the limits specified in this document.

d. Aerospace Purchases. DLA Energy centrally procures domestic aerospace products that exceed 6,000 gallons annually and overseas 12,000 gallons annually.

1.6. LOCAL PURCHASE AUTHORITY

a. DoD Components must contact Aerospace Energy for authorization to locally purchase aerospace products in excess of the annual limits described above.

b. Process Local Purchase Request. DoD Components shall contact the Aerospace Energy

Customer Operations Division supporting their activity regarding local purchase requests. The

Customer Operations Division will advise the requestor of the required information in order to approve the request by Aerospace Energy Supplier Operations.

1.7. LOCAL PURCHASE CONDITIONS

a. Aerospace Energy may authorize local purchases to satisfy requirements under conditions such as:

(1). One time delivery purchases, regardless of dollar amount, to locations where DLA

Energy has no contract.

(2). When DLA Energy contracts are available but ordering lead times are less than the industry standard of 7-day notice.

b. Under the provision of this paragraph DLA Energy-Aerospace Energy Customer

Operations - QEM must be informed prior to local procurement of non-propellant products.

1.8. AEROSPACE ENERGY CUSTOMERS

a. Under the authority delegated in DoD Instruction 4140.25, and DoD Manual 4100.39, Federal Logistics Information System (FLIS) Procedures, Volume 13, DLA Energy is the DoD

Integrated Material Manager for all Federal Stock Class 9135 and certain 6830 and 9130 items

(liquid propellants/oxidizers and compressed/liquefied gases) referred to in this document as

“Aerospace Energy products.” DoD customers who require Aerospace Energy products in the performance of government contracts shall obtain those products from Aerospace Energy.

Federal Civilian customers may request support from Aerospace Energy. Commercial customers who require Aerospace Energy products and services may request support from Aerospace

Energy under the authority of 10 U.S.C. § 2208, “Working-capital fund.” Aerospace Energy

Contracting Branches are responsible for incorporating appropriate contract provisions into their contracts that require or permit U.S. Government contractors to obtain Aerospace Energy products from Aerospace Energy. Forms used to facilitate Aerospace Energy processes identified in TABLE 1 entitled, “Forms used in Aerospace Energy.”

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

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

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

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

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

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

DoD Forms may be obtained from: https://www.esd.whs.mil/DD/.

d. Customers will adhere to this document and all other policy implementation instructions and procedural guidance that apply to products and services managed by Aerospace Energy.

Ensure forecasts of projected requirements are as accurate as possible and submitted in a satisfactory manner following applicable issuances. Submit applicable Department of Defense

Activity Address Code (DoDAAC), Federal Activity Address Code (FEDAAC) or DLA commercial-DoDAAC with projected requirements.

e. Once a requirement is awarded under a DLA Energy contract, customers must procure it exclusively from the designated DLA Energy supplier. Using an alternative supplier requires prior written consent from the cognizant Aerospace Energy Contracting Officer. Be responsible for payment of any valid contract claims resulting from the customer’s action/inaction, or that of their employees, representatives, agents, or contractors.

1.9. RESPONSIBLE OFFICER (RO), TERMINAL MANAGER (TM), AND AESP

MANAGER

a. The DLA Energy-FEMC Supervisory Inventory Manager serves as the Aerospace Energy

Accountable Officer (AO) for all Aerospace Energy Capitalized products. The RO, TM and

AESP Managers will ensure complete oversight for the proper handling and accountability of

DWCF, owned Aerospace Energy products in support of Aerospace Energy AO.

b. Where authority to sign documents has been delegated, ensure the individuals signing

Aerospace Energy documents comply with this document and applicable law and policies concerning inherently governmental functions.

SECTION 2: PROCEDURES

2.1. AUTHORIZED CUSTOMERS

a. Aerospace Energy customers may receive products from either DWCF inventory stored at and distributed from an AESP or shipped directly from the Aerospace Energy supplier as a customer direct sale.

b. Authorized customers encompass:

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

(2) Federal Civilian Agencies.

(3) Foreign Military Sales (FMS) customers.

(4) Those customers who have an existing properly executed sales agreement with

Aerospace Energy under a specific statutory or regulatory authority, including:

(a) U.S. Government contractors authorized according to Federal Acquisition

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

(b) U.S. companies in the space and space-related industries as permitted under 10

U.S.C. § 2208, and DoD Manual 4140.25, Vol. 10 are authorized to purchase Aerospace Energy products and services. The commercial company must identify the specific space or space-related program(s) that their request for product and/or services from Aerospace Energy is supporting. Where it is not clear the company is a U.S. company, additional documentation may be required before supplies and/or services are provided under an Aerospace Energy contract.

2.2. CUSTOMER FORECASTS OF AEROSPACE ENERGY REQUIREMENTS

a. It is essential for the proper planning of future contract actions as well as placement of orders under existing contracts that all requirements are submitted in a satisfactory manner to

Aerospace Energy. Requirements fall into two broad categories: potential requirements that could possibly materialize from existing or future programs and firm requirements for known, existing programs.

b. Aerospace Energy annually contacts existing customers to request submission of their forecast for each Aerospace Energy product the customer will require. Customer forecasts will cover a minimum of five years of requirements and by month for all Aerospace Energy items.

The forecast period will begin under the directions established in the Aerospace Energy forecast letter.

c. Annual forecasts for Aerospace Energy products and services are prepared and submitted on a DD Form 2916, "Forecast of Requirement for Aerospace Energy Propellants and

Pressurant," and DLA Form 2053, "DLA Energy Requirement Worksheet."

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

Service (DLIS).

(2) Enter the program or project name under Program Support block Identify the requirement as either known, existing program requirement, or future potential program requirement. Include Sales Agreement number if applicable.

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

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

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

Commercial DoDAAC, Fund Code, and Signal Code.

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

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

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

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

d. Requirements being submitted using the DD Form 2916 through their respective

Customer Account Specialist (CAS).

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

f. Demand Planning is a process that derives forecasts based on historical sales patterns, collaboration, statistical forecasting, calculation tools, and lifecycle management to get visibility of demand at all levels of detail. Demand Planning Collaboration creates an Enriched Forecast by first generating a baseline from historical sales data and then refining it with future sales projections collected monthly from customers. This process projects demand for the next 12 months. Demand Planning Collaboration period is a once-a-month process where customers are required to review and provide input on DLA Energy provided sales forecasts. This process occurs every month during the third week of the Planning Cycle. Aerospace Energy customers are included in this collaboration event. Aerospace Energy Customer Account Specialists (CAS) are invited to monthly meetings and customer information is presented for further review, updates, and questions.

(1) Customers who require hypergolic propellants or other launch related products listed in Table 3 Aerospace Energy Product Groups Requiring Forecasts are required to submit five-year forecast using DD Form 2916. CAS will assist customers in preparing and submitting DD

From 2916.

(2) Aerospace Energy Oil and Gas customers supported by the Demand Planning

Collaboration process are excluded from submitting an annual DD Form 2916.

(3) Aerospace Energy customers require Job Description Role – 2205 Demand

Collaboration to conduct monthly Demand Planning Collaboration requirements. The JD Role-

2205 allows customers to provide updated Demand Planning forecasts in Enterprise External

Business Portal (EEBP) Demand Collaboration module. Aerospace Energy CAS will assist customers in obtaining the required JD roles to perform Demand Planning Collaboration requirements.

(4) Aerospace Energy CAS will assist customers during the monthly Demand Planning

Collaboration session to ensure the Monthly Enrichment report reflects the most accurate customer sales figures for preceding months.

2.3. APPLICATION OF FORECAST FOR AEROSPACE ENERGY REQUIREMENTS

a. Aerospace Energy will review individual customer forecasts compared to the customer’s historical usage to ensure that estimated requirements are not under or overestimated. If requested, the customer will provide additional information regarding the estimated quantities shown on the DD Form 2916 and/or DLA Form 2053.

b. To achieve the economies of scale from a centralized procurement process, Aerospace

Energy will consolidate customer forecasts for the same or similar Aerospace Energy products for the solicitation and award of Aerospace Energy contracts.

2.4. FINANCIAL MANAGEMENT. Financial Management policy for all of DLA Energy is contained in DoD 7000.14-R. Reimbursement to the DWCF for material sold will be at the established price for the respective product at the time of shipment (shipment date) for each category of customer.

2.5. CUSTOMER BILLING FOR AEROSPACE ENERGY REQUIREMENTS

a. Aerospace Energy operates on a reimbursable basis.

b. DoD Customers are billed via interfund once a week IAW the Military Standard Billing

System procedures.

c. Federal Agencies other than DOD are billed IAW the Intra-Governmental Payment and

Collection Systems or utilizing the G-invoicing system and processes.

d. Aerospace Energy Sales Agreement commercial customers are billed manually via an SF-

1080 once a month. Payments must be submitted via https://www.pay.gov/public/home.

2.6. INDIVIDUALS RESPONSIBLE FOR THE ACCOUNTABILITY OF DWCF

AEROSPACE ENERGY INVENTORY

a. The Aerospace Energy AO is responsible for the overall accountability and management oversight of all DWCF Aerospace Energy product inventory. The Aerospace Energy AO works closely with the Inventory Managers (IM) and Resolution Specialists (RS) to assure: Monthly

Inventory Transaction Reports (MITRs) submitted by the Aerospace Energy AESPs on a timely basis; excessive variances are satisfactorily investigated and documented; and all inventory transactions are validated and reconciled IAW this issuance.

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

(1) The three key areas of segregation of duties are physical asset custody, transaction processing, and transaction approval. Throughout this document, the individual at the Aerospace

Energy AESP who has physical asset custody is the DWCF Inventory Operator/Handler. The individual who records the transaction(s) at the AESP is the DWCF Inventory Transaction

Recorder. The individual approving the transaction(s) is the DWCF Inventory Transaction

Approver and Adjustment Authority.

(2) Personnel who perform any one of these three functions identified above at an

Aerospace Energy AESP that stores and distributes DWCF Aerospace Energy products shall not be responsible to perform either of the other two functions, unless otherwise granted a waiver, as discussed below.

(3) It is the Aerospace Energy AO’s responsibility to verify/confirm that each AESP has an assigned DWCF Inventory Operator/Handler, a DWCF Inventory Transaction Approver and

Adjustment Authority, as well as a DWCF Inventory Transaction Recorder.

(4) AESPs who cannot comply with this segregation of duties policy due to operational constraints shall request a waiver/exception to policy, in writing, from the Aerospace Energy

AO. The request shall fully explain the method of risk mitigation that the AESP shall undertake in order to ensure proper accountability for DWCF Aerospace Energy inventory. Provide full description of actions taken to satisfy the intent of the policy implementation or procedural guidance before submitting a request for waiver/exception. In the instance of exception requests, the AESP will state specific reasons why corrective actions cannot be taken. Both the AESP and the Aerospace Energy AO will retain a copy of the Memorandum on file IAW this issuance.

a. The same appointment procedures that apply to ROs and TMs who manage DWCF bulk petroleum products IAW DLA Energy P-7, also apply to Aerospace Energy RO/TM/AESP

Managers. For AESPs located at commercial customer facilities, a principal of the commercial company will appoint an AESP Manager, in writing, which shall have the same responsibilities and perform the same functions as a RO or TM unless otherwise noted herein. The Aerospace

Energy AO shall maintain a complete list of RO/TM appointments, as well as individuals designated as AESP Managers under DLA Aerospace Energy contracts that have AESP responsibility as a contractual requirement. Conduct annual review of AESP appointment letters to ensure compliance.

b. The RO/TM/AESP Managers serve as extensions of the Aerospace Energy AO in ensuring proper accountability and oversight of DWCF products at AESPs. Collectively, the managers are the individuals who support the Aerospace Energy AO with regard to proper on-site, day-to-day accountability of DWCF Aerospace Energy products.

(1) The definitions, duties and responsibilities for an RO as well as for a TM under a

DLA Energy Contractor-Owned, Contractor-Operated (COCO) production facility are as stated in DLA Energy P-7. TMs identified by the terms of the contract are contractually obligated to account diligently for and safeguard Government property including DWCF Energy stocks and

Government furnished equipment/facilities at contractor operated AESPs. AESP Managers are responsible for complying with the approved Sales contract terms and Aerospace Energy published guidance.

(2) As it pertains to segregation of duties:

(a) The RO/TM/AESP Manager, serving as the DWCF Inventory Transaction

Approver and Adjustment Authority, shall sign documents to approve DWCF Aerospace Energy inventory quantities and/or quality adjustments; approve transaction submissions; approve end-of-month book and physical inventory reconciliation and operating gain/loss calculations; initiate operating gain/loss investigations as required by DLA Energy policy; and, periodically observe and confirm DWCF Aerospace Energy physical inventories.

(b) The Aerospace Energy DWCF Inventory Transaction Recorder (normally an accountant) shall reconcile DWCF inventory transaction documents with transaction data entries on all inventory and sales documents; calculate manually gauged DWCF petroleum product inventory quantities; prepare trial reconciliation of end-of-month DWCF book and physical inventories; and calculate DWCF Aerospace Energy inventory operating gain/loss.

(c) The Aerospace Energy DWCF Inventory Operator/Handler shall provide overall operational handling of DWCF Aerospace Energy product inventories; receive, store, transfer, and issue DWCF Aerospace Energy product inventory; and ensure procedural compliance to achieve accurate DWCF Aerospace Energy product inventory quantity determinations.

(3) Where the AESP is a government installation and managed by a contractor under a

Base Operation Services and Support or similar-type contract, the installation’s Military Service or Federal Civilian Agency Contract Administrative Office (CAO) is responsible for ensuring compliance under the contract with the instructions contained in this Enclosure. Where the

AESP is a DLA Energy COCO facility, the Aerospace Energy contract will contain terms and conditions that the AESP TM shall adhere to, in addition to those contained in this Enclosure as well as any future policy established in this manual.

(4) Aerospace Energy also supports commercial customers involved in space and space-related industries and therefore, may have an AESP at the commercial customer location. In such instances, the AESP Manager is the individual at the commercial customer location performing RO/TM duties and responsibilities. AESP Agreements are needed between

Aerospace Energy and any commercial customer location that has a site that stores and distributes Aerospace Energy DWCF product. The Agreement will incorporate this manual by reference and require the AESP Manager adhere to its policies and procedures. On a case-by-case basis, the AESP Agreement may be needed as part of the Aerospace Energy sales contract with the commercial customer.

(a) In addition to this manual, other specific responsibilities of the AESP Manager are listed in the AESP Agreement between Aerospace Energy and the commercial customer.

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

(c) In addition, the CAO is responsible for ensuring that its contractor exercises proper management and oversight of DWCF inventory stored at and sold from AESP located at the commercial customer facility.

(5) Whenever there is a change in RO/TM/AESP Manager at an AESP, accomplish the transfer of accountability for DWCF Aerospace Energy products from the outgoing RO/TM

Manager to the incoming RO/TM/AESP Manager as follows:

(a) Both the outgoing and incoming RO/TM/AESP Manager will verify the physical inventory taken on the effective date of the change and sign DD Form 2917's, "Physical

Inventory (Fuels/Missile Propellants)," and DD Form 2925's, "Missile Fuels/Propellants

Inventory Summary Sheet." Upon completion of the transfer of account, provide copies of the

DD Form 2913, "Missile Propellants Consolidation and Reporting of Sales," and the DD Form

2925 to the Aerospace Energy AO.

(b) The outgoing RO/TM/AESP Manager will prepare a DD Form 2924, "Monthly

Inventory Transaction Report," to cover all transactions since the last day of the previous month.

The outgoing and incoming RO/TM/AESP Manager will jointly verify the existing inventory records, complete the necessary documentation encompassing all transactions, and forward all documents to Aerospace Energy.

e. When the management and operation of the AESP is contracted out, the appropriate individual at the DoD or Federal Civilian installation shall appoint a Property Administrator

(PA) must be appointed to oversee DWCF Aerospace Energy products in the following manner:

(1).At Government Installations: For AESP operations on a DoD or Federal installation, the PA shall be appointed by the appropriate individual at that installation.

(2). At Commercial Sites: For AESP operations at a commercial customer's site, the PA shall be appointed by the DoD or Federal agency that awarded the governing contract.

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

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

Energy-owned PP&E.

2.7. GENERAL DWCF AEROSPACE ENERGY PRODUCT INVENTORY

ACCOUNTABILITY PROCESSES AND PROCEDURES

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

b. To aid in the proper management and oversight of DWCF inventory, Aerospace Energy has established detailed record-keeping and reporting of losses or gains are traced to the specific cause, such as Aerospace Energy contractor delivery, handling, static, etc. DLA

Energy has developed forms which, when properly completed, will assist Government-owned/leased Government-Operated (GOGO), Government-owned/leased Contractor-Operated

(GOCO) and/or COCO AESP personnel and Aerospace Energy to analyze gain/loss trends and determine whether they are excessive and consequently warrant further investigation of item records, physical inventories, equipment and/or procedures. DoD Forms may be obtained from:

https://www.esd.whs.mil/DD/.

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

(1) The DD Form 2915, "Propellant Servicing Unit Record," provides a daily record of operations for each product and documents the number of sales and credits handled by each

AESP. This record will permit compilation of data relative to the efficiency and effectiveness of each unit and provide early detection of abnormal losses for immediate corrective action.

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

(3) These activities include product receipts, sales from inventory; product returns to inventory, shipments, transfers between AESPs, and inventory adjustments involving DWCF

Aerospace Energy products.

d. Aerospace Energy IM shall communicate with AESP, to schedule DWCF Aerospace

Energy product deliveries into an AESP.

2.8. RECEIVING AEROSPACE ENERGY PRODUCTS

a. Aerospace Energy suppliers will enter receipt documents and invoices into Wide Area

Workflow (WAWF) and shall attach a DD Form 250/250-C, "Material Inspection and Receiving

Report," Meter Tickets, Commercial Bill of Lading (BOL) and/or commercial equivalent approved by the Aerospace Energy Contracting Officer to designate receipt of all Aerospace

Energy products by receiving activities. When multiple deliveries under a single contract and delivery order, contractors may consolidate all inspection and acceptance of the same item, same day and specification delivered to an AESP/ or end-use customer on one DD Form 250/250-C and/or commercial equivalent.

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

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

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

(CO).

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

(1) The DWCF Inventory Transaction Recorder shall use the DLA Energy supplier’s DD

Form 250 and/or commercial equivalent Bill of Lading (BOL) or meter tickets to record receipts on the DD Form 2914, “Record of Receipts of Missile Propellants,” and DD Form 2925 for products received at AESPs.

(2) The RO/TM/AESP Manager or authorized representative shall utilize the DLA

Energy’s supplier’s DD Form 250/250-C and/or commercial equivalent documents to reflect acceptance of the product under Defense Acquisition Regulation, Appendix F-301. The

RO/TM/AESP Manager should include the date of receipt, printed name of the personnel verifying receipt of the product as well as the duty phone number. In addition, the document should reflect the printed name of the vendor delivery personnel with office phone and any necessary remarks.

(3) The RO/TM/AESP Manager or authorized representative shall report any deviations from the delivery schedule/delivery orders by phone and follow-up with an email directly to the applicable Aerospace Energy IM assigned to AESP as well as the Aerospace Energy supplier so that the supplier can issue a corrected Receiving document in WAWF and attach a correct DD

Form 250/250-C and/or commercial equivalent documents. If warranted, the Aerospace Energy

Supply Planner will refer to the deviation pertaining to Aerospace Energy supplier deliveries to the applicable Aerospace Energy Contracting Officer for resolution.

(4) The RO/TM/AESP Manager or authorized representative shall provide supporting documentation within 24-48 hours for all receipts and shipment transfers out/into DLA storage.

Email documents to the DLA Aerospace Energy Inventory Management Branch Team at

FEMCInventoryManagement@dla.mil. A copy of the applicable documents below shall continue to accompany the MITR package. MITR requirements have not changed.

(a) Shipment transfers: provide DD Form 1348-7, Shipment and Receipt Document.

(b) New procurement receipts: provide a bill of lading from the vendor, a meter ticket, or DD Form 250.

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

e. Commingling constitutes the storing of products of different ownership in the same container, storing containers holding products of different ownership in the same general storage area and/or storing non-DWCF product with DWCF product. Under no circumstances will non-

DWCF products be commingled with DWCF Aerospace Energy products. Containers of different ownership segregated by adequate spacing or in delineated areas are not considered commingled.

2.9. RECORDING PRODUCT RECEIPT AT AN AESP

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

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

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

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

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

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

c. The DWCF Transaction Recorder shall annotate the totals per the DD Form 2914 on the applicable DD Form 2925. It is critical that corrected receiving documents are used to support the AESP’s Monthly Inventory Transactions Report (MITR). A copy of the applicable DD Form

250/250-C and/or commercial equivalent document shall accompany the MITR in support of the receipt of product at the AESP. If a corrected DD Form 250/250-C and/or commercial equivalent submitted to the RO/TM/AESP Manager after the submission of the MITR, the

RO/TM/AESP Manager shall contact the applicable or Supply Planner for direction. Once resolved, the RO/TM/AESP Manager will provide Aerospace Energy-FEM with corrected copies of the MITR package in order to process the corrections.

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

(a) Verify the quantities shipped as shown on supporting WAWF documents such as

DD Form 250/250-C, Bill of Lading (BOL), meter tickets and/or commercial equivalent to ensure they are correctly entered on the DD Forms 2914 and 2925.

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

(2) After all documents above are verified as correct on the DD Form 2914, the

RO/TM/AESP Manager will:

(a) Enter the Quantity Received column on each WAWF documents such as DD

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

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

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

Energy.

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

(e) When the Aerospace Energy supplier provides corrected copies of any of the documents above because of an error in the designated quantity delivered, the DWCF

Transaction Recorder (as applicable) shall:

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

Transaction Approver.

2. Enter the difference in the DD Form 2914 under the column headed Quantity

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

Quantity Received.

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

2.10. SHIPMENTS OF PRODUCT BETWEEN AESPs

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

b. When product shipped from one AESP to another AESP, it is handled as a transfer out from the losing AESP and a transfer into the gaining AESP.

c. The Aerospace Energy IM shall coordinate and approve transfer of DWCF Aerospace

Energy products between AESPs before the shipment of any product.

d. Utilize the DD Form 1348-7, Shipment and Receipt Document, to document shipments between AESPs.

e. In case of bulk product shipped between AESPs, the Transaction Recorder at the AESP who is shipping the product will prepare the DD Form 1348-7, Shipment and Receipt Document, for signature by the RO/TM/AESP Manager. The two copies of DD Form 1348-7, Shipment and

Receipt Document, will accompany the shipment with appropriate bills of lading, as applicable.

Return the acceptance/signed DD Form 1348-7, Shipment and Receipt Document, to the shipping AESP. Email documents to the DLA Aerospace Energy Inventory Management

Branch Team at FEMCInventoryManagement@dla.mil within 24-48 hours of movement.

f. Record the shipments of products between the AESP’s on the DD Form 2925.

2.11. TRANSPORTATION DISCREPANCIES IN VENDOR DELIVERIES AND

SHIPMENT RECEIPTS

a. Transportation discrepancies in Aerospace Energy supplier deliveries sent through the

Defense Transportation System (DTS) and shipments within the Continental United States shipped by Aerospace Energy designated commercial carriers are processed according to

Defense Transportation Regulation (DTR) DoD 4500.9-R Part II, Cargo Movement.

b. The RO/TM/AESP Manager or authorized representative of the Customer Direct Sale shall report shipping and/or packaging discrepancies to include quantity discrepancies, to the

Aerospace Energy AO on the Standard Form (SF) 364, Report of Discrepancy.

(1) Prepare and distribute the SF 364 according to Defense Logistics Management

System Manual 4000.25, Volume 2, “Supply Standards and Procedures.”

(2) A copy of the completed SF 364 shall be emailed within 24 hours or the next duty day to the Aerospace Energy AO, Attn: DLA Aerospace Energy, 1525 Wurtsmith Street, Bldg.

5730 JBSA-Lackland AFB, TX 78236-5244. Contact DLA Aerospace Energy at

FEMCInventoryManagement@dla.mil / and provide a copy to RS or AO. If the AESP is on a military installation, the major command should be advised of the discrepancy.

2.12. AUTHORIZED SALES FROM AN AESP

a. To ensure proper accountability of DWCF Aerospace Energy products, all sales from an

AESP storing DWCF Aerospace Energy products are only made to customers otherwise authorized to receive product.

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

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

Energy Aerospace Energy Inventory Management Branch Team at

FEMCInventoryManagement@dla.mil within 24-48 hours of transaction.

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

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

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

2.13. RETURN AND SUBSEQUENT RESALE OF PRODUCT TO AN AESP

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

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

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

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

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

2.14. RECORDING A RETURN OF PRODUCT TO AN AESP

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

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

c. Take the following actions for return of on-specification, excess product as those defined in the return and subsequent resale of product to an AESP.

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

2913.

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

d. For returned product where credit is not provided to the customer the DWCF Transaction

Recorder will record the quantity returned as a determinable gain on the DD Form 2924, and DD

Form 2925.

2.15. INVENTORY MEASUREMENT METHODS

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

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

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

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

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

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

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

(6) For products with unit of issue of CY (cylinder) or…