1. Changes to Publications

1. Types of Appropriations
2. Status of Appropriations
3. Appropriation Symbols
4. Appropriation Categories

1. Revolving Funds
2. Trust Funds

1. Federal Supply Classification (FSC) Structure
2. Federal Supply Catalog

1. Requisitioning
2. Uniform Material Movement
3. Requisition System Document
4. Non-NSN Requisition Manual
5. Requisition and Invoice/Shipping Document
6. Letter Requests and Message Requisitions
7. Purchase

1. Within the United States
2. Overseas

1. MOF
2. Supply Status

1. Security

1. Definitions
2. Required Forms
3. SIM

1. Types of Inventory
2. Physical Inventory Schedules
3. Inventory Personnel
4. Preparing for Inventory
5. Inventory Procedures
6. Reconciliation of Count Documents and Stock Records

1. Description of Captions
2. Preparing New Cards
3. Posting

1. Bulk Custodian
2. Security
3. Accountability
4. Inventory Board
5. Survey of Controlled

References

The responsibility of accounting for assets within the Department of the Navy (DN) comes down from the Secretary of the Navy (SECNAV) to the commanding officers of field activities throughout the Navy through appropriate channels. Commanding officers must ensure proper fiscal administration by directives, principles, and policies prescribed by the Comptroller of the Navy. All orders and instructions issued by the Comptroller carry the same force and effect as if issued by SECNAV.

The Naval Supply Systems Command (NAVSUPSYSCOM) is responsible for administering supply management policies, including cataloging, standardization, procurement, inventory control, storage, issue, and disposal of naval material. You, as a medical supply person, must be familiar with the methods of procuring and accounting for naval material. You should also be familiar with the rules and regulations that govern accountability of funds under an appropriation and have a good working knowledge of the directives and manuals used in the Navy Supply System.

To function well in the Navy Supply System, you must be familiar with some of the NAVSUP publications that deal with different facets of supply. Some of these publications that are of particular interest to you are discussed below.

NAVSUP publications are referred to in four different ways. For example, the NAVSUP Operating Procedures Manual for the Military Standard Requisitioning and Issue Procedure and the Military Standard Transaction Reporting and Accounting Procedure (MILSTRIP/ MILSTRAP) may be referred to in various publications and directives as one of the following:

• NAVSUP Publication 437
• NAVSUP P-437
• NAVSUP Pub 437
• NAVSUP 437

However, when referencing this publication (or other NAVSUP publications) in correspondence, cite it as "NAVSUP P-437, par.

Storage and Materials Handling (NAVSUP P-284)-This manual establishes efficient standards at major supply installations within each military service as well as among the military services. It consolidates technical and detailed information available to the military services on materials handling operations involved in the receipt, storage, issue, and care of supplies except for preserving, packaging, and packing. NAVSUP P-284-1 expands on some of the above subjects and prescribes specific policy not affecting the other services. This manual and the supplement are designed for the three-ringed binder.

MILSTRIP/MILSTRAP Desk Guide (NAVSUP P-409)-Since NAVSUP P-437 is a comprehensive publication that fills three 2-inch binders, NAVSUP P-409 was published to serve as a handy reference for personnel responsible for originating and processing MILSTRIP/ MILSTRAP documents. This small booklet contains common definitions, coding structures, and abbreviated code definitions used on a day-to-day basis. Blank space is provided for entering commonly used routing identifier, fund, project, and locally assigned codes.

Fleet Use of MILSTRIP (NAVSUPINST 4235.3)-This publication serves the same purpose of NAVSUP P-409 for fleet personnel. In addition, it is designed to indoctrinate and train fleet personnel in the MILSTRIP system. It is larger than the desk guide and contains illustrations and explanations, making it a valuable training aid and a handy reference.

Operating Procedures Manual for MILSTRIP/MILSTRAP (NAVSUP P-437)-This publication issues policy on the MILSTRIP/ MILSTRAP system. This publication takes precedence over conflicting provisions contained in other supply system manuals or directives. It consists of 11 chapters and several appendixes and exhibits. It covers system management, requisitioning ashore, inventory control, financial matters, material movement priorities, and evaluation procedures. The publication provides forms, formats, and codes, and it serves as a comprehensive ready reference for those involved in preparing or processing MILSTRIP documents. The chapters are listed below.

NAVSUP P-437 is not distributed afloat. All afloat MILSTRIP/MILSTRAP operations are incorporated into NAVSUP P-485.

Paragraph numbering in this publication is similar to that of the NAVSUP Manual. Paragraph 06120-3a is broken down as follows:

Afloat Supply Procedures (NAVSUP P-485)-This publication establishes policies for operating and managing afloat supply departments and activities. It will help supply personnel to understand and perform their individual tasks.

Although this publication is designed primarily for nonautomated supply procedures, much of the information it contains also applies to automated systems.

The procedures contained in this publication are the minimum essential to acceptable supply management and are mandatory unless specifically stated as being optional. It encompasses the procedures outlined in the NAVSUP Manual, volumes I, II, and V, and NAVSUP P-437 as they apply to afloat situations. It is divided into six chapters as follows:

In addition to these six chapters, NAVSUP P-485 contains several appendixes that contain such information as advice codes, document identifier codes, fund codes, and units of issue.

1. Changes to Publications

   Regardless of how well you have learned to use the various supply publications, if they aren't up to date you are wasting your time. Enter changes promptly when they are received to ensure that the latest information is being used. There are different types of changes and the methods of entering them are different. Always read the accompanying instructions before making the change.

   Pen-and-Ink Changes-

   These are usually distributed as a letter or notice and require you to type or enter pen-and-ink word or sentence changes.

   Page Changes-Extensive changes are made by this method. This involves removing an old page and inserting a new one. Most of these changes will include a list of "Effective Pages" or "Sheets in Force" that should be checked against the manual after the change has been made to ensure that all the pages are there.

   Change Bulletin-This change is usually used for stocklists, catalogs, and cross-reference listings. The change bulletin will refer to the basic publication and will state whether it is cumulative or noncumulative. A cumulative change bulletin is one that contains all changes previously issued. Discard the older bulletins. Retain the noncumulative change bulletins until the basic publication is reprinted. Always read the instructions BEFORE you make the change.

An appropriation is an authorization by an Act of Congress (Appropriation Act) to incur obligations for a specified time and purpose and to make payments out of the Treasury. The Navy uses this form to receive money to pay for ships and the cost of their operation and maintenance, the cost of training and pay of the personnel who operate them, and the money to operate the Shore Establishment needed to support the fleet.

1. Types of Appropriations

   Three types of appropriations may be used in the Navy, depending upon the purpose for which they are issued. Most appropriations are for 1 fiscal year (FY) and are used to finance the normal operating costs of the Navy. Other types may be granted without a time limitation or for a specific time that exceeds 1 year.

   1. Annual Appropriations

      Annual appropriations generally cover the current operating and maintenance expenses of the Navy. They become available at the beginning of FY as stated in the Appropriation Act. From then on throughout FY, they may be either directly expended or obligated. An obligation occurs when an order is placed by an afloat unit or when material is issued to a shore activity. It also occurs when a contract is awarded, a service is received, or similar transactions are entered into during a given period requiring future payments of money in an agreed amount.

      After the end of FY, the Navy must return any unobligated balance to the Treasury, and obligated funds remain available for the payment of such obligations for an additional 2 years.

      At the end of the additional 2-year period, transfer the balance remaining in the account, representing unliquidated obligations less reimbursements to be collected, to the successor "M" account. The successor "M" account is available for disbursement of appropriated funds.

   2. Continuing Appropriations

      A continuing appropriation, or a no-year appropriation, is one that is available for incurring obligations until the funding is exhausted or until the purpose for which it was made is accomplished without a fixed-period restriction. Examples of continuing appropriations are Military Construction Navy and revolving funds such as the Navy Stock Fund (NSF).

      Continuing appropriations become available for obligation and expenditure at the beginning of FY following the passage of the Appropriation Act or may become immediately available when so specified in the Act. When the purpose of a continuing appropriation has been ac- complished, or at such time as determined administratively or by Congress, transfer an amount equal to the total of unliquidated obligations, less the total of reimbursements to be collected, to the successor "M" account. Transfer the remaining unobligated balance to the surplus of the Treasury.

   3. Multiple-Year Appropriations

      Multiple-year appropriations are generally made for purposes that require a long lead time of planning and execution, such as Procurement of Aircraft and Missiles Navy and Shipbuilding and Conversion Navy. Multiple-year appropriations become available for obligation and expenditure at the beginning of FY designated in the Appropriation Act unless otherwise stated in the Act. They are available for incurring obligations only during the FYs specified in the Act. However, they are available for paying such obligations for an additional 2 years.

      At the end of the last FY included in the appropriation, when the appropriation expires for obligation purposes, transfer the unobligated balance to the Treasury. At the end of the 2 years following the expiration of obligation availability, transfer the balance remaining in the account, representing unliquidated obligations less reimbursements to be collected, to the successor "M" account.

2. Status of Appropriations

   Three terms are used to designate the status of appropriations.

   • Current Appropriation-an appropriation that is available for incurring obligations during the current FY
   • Expired Appropriation-an appropriation that is no longer available for incurring obligations but remains available for disbursements to liquidate existing obligations
   • Lapsed Appropriation-an appropriation in which the undisbursed balance, by law, is no longer available for disbursement

   By way of explanation, let's follow an annual appropriation for FY 84 by the above terms.

   Current appropriation, 1 Oct 83-30 Sep 84, is available for obligation and disbursement. At the end of the FY (30 Sep 84), the Navy must return any unobligated balance to the Treasury. Expired appropriation, 1 Oct 84-30 Sep 86, means no new obligations may be incurred. The obligated balance is retained, and disbursements may be made to liquidate the obligations. Lapsed appropriation, 1 Oct 86, means no further disbursements may be made. Any balance of outstanding unliquidated obligations remaining is transferred to a successor account that is available indefinitely for payment of obligations still outstanding.

3. Appropriation Symbols

   The Navy uses symbols to identify charges and credits made against each appropriation. Since you use these symbols often, it is important that you understand how they are constructed. The various elements that make up the appropriation symbol are explained below.

   Navy Department	17
   FY 84	4
   Purpose of the appropriation (Operation and Maintenance Navy (O&MN))	1804
   NAVMEDCOM	1880

   The first two digits of this symbol identify the department responsible for administering the appropriation. Frequently used codes are:

   17	Department of the Navy
   19	Department of State
   21	Department of the Army
   57	Department of the Air Force
   97	Department of Defense

   The next one digit identifies the FY limitation of the appropriation. In the example, "4" designates FY 84. Continuing appropriations, which have no FY limitation, are identified by an "X." A multiple-year appropriation is indicated by the first and last FYs that it is available for obligation; for example, "4/5" indicates FYs 84 and 85.

   The purpose of the appropriation is shown by the next four digits. The numerals "1804" shown above identifies the appropriation for O&MN, which is used for operation and maintenance expenses for both afloat units and shore activities.

   The appropriation subhead, as shown by the numerals "1880," is a subdivision of an appropriation or fund. Subheads identify the budget activity (major program) and are designated by a four-digit numeric or numeric alpha number suffixed to an appropriation or fund symbol. The numerals "1880" identify the activity as NAVMEDCOM.

4. Appropriation Categories

   The Navy and Marine Corps appropriation structure is based on major programs or several broad categories that remain relatively constant and encompass most of an activity's funding. These appropriation categories include the following:

   Military Personnel Navy (MPN) and Military Personnel Marine Corps (MPMC)-These appropriations provide for the pay and allowances, clothing, and PCS orders of active duty Navy and Marine Corps personnel.

   Reserve Personnel Navy (RPN) and Reserve Personnel Marine Corps (RPMC)-These appropriations provide the same type of requirements for Reserve personnel programs as the MPN and MPMC.

   Operations and Maintenance Navy (O&MN) and Operations and Maintenance Marine Corps (O&MMC)-These are the bread-and-butter annual appropriations for most Navy and Marine Corps activities. They pay for the day-to-day expenses of the Navy and Marine Corps. For most activities, the O&M appropriation provides funds for the operating budget, which is the master financial planning and control document for the activity. The operating budget contains estimates of workload, manpower, and monies required.

   Operations and Maintenance Navy Reserve (O&MNR) and Operations and Maintenance Marine Corps Reserve (O&MMCR)-These provide for the day-to-day support of the Navy and Marine Corps Reserves.

   Research, Development, Test, and Evaluation, Navy-This appropriation allows for expenses necessary for basic and applied scientific research, development, test, and evaluation, including maintenance, rehabilitation, lease, and operation of facilities and equipment. The Research, Development, Test and Evaluation, Navy appropriation is divided into six budget activities. Each budget activity is further divided into program elements for which funds have been budgeted.

Funds fill a very important need in financing the day-to-day operations of the Navy. Two types of funds, revolving and trust, are used extensively and you must understand how and why the are used. Funds are sums of money or other resources established for a specific purpose and usually without FY limitations.

1. Revolving Funds

   A revolving fund is a fund established to finance a cycle of operations to which reimbursements and collections are returned for reuse in such a manner as to maintain the principal of the fund; for example, loan funds and working capital funds such as stock funds and industrial funds. The capital amount of a fund may be in the form of cash, inventory receivables, or other assets.

   1. Navy Stock Fund

      Of the several funds, the one that you will be most concerned with is the Navy Stock Fund (NSF). It is not practical for each activity of the Navy to purchase all of its requirements directly from commercial suppliers using its operating money. It is for this reason that NSF exists, to provide the necessary capital to finance the purchase and maintenance of stocks of common supply items required for support and operation of the Navy. Basic capital for NSF is made available from Congress in much the same manner as appropriations. The total value of NSF is reviewed annually by Congress and adjusted to meet current requirements. Within the Navy, the Commander, Naval Supply Systems Command is the administrator of NSF.

   2. Navy Industrial Fund

      The Navy Industrial Fund is a revolving fund used to finance industrial commercial-type activities. In effect, the Navy Industrial Fund serves much the same purpose as the Navy Stock Fund except that it is used to finance the cost of maintaining and operating such industrial commercial-type activities as naval shipyards. Major charges to the fund are civilian labor, material purchases, travel of personnel, transportation of material, cost of purchased utilities, and equipment and property rental. The fund is reimbursed through the sales of materials and services performed for the Navy and other government agencies.

   3. Naval Working Fund

      The Naval Working Fund provides a single permanent revolving fund for financing all work not chargeable to some current naval appropriation. It is used to receive advance deposits for work of services furnished. This type of work is performed by the Navy for other government departments, foreign governments, and private parties. For example, let us assume that the U.S. Navy had sailors from an allied government embarked aboard U.S. Navy ships for training. The foreign government might deposit funds with the Navy to cover pay and allowances for their personnel. The money deposited would go into the Naval Working Fund and be assigned a deposit allotment number. Disbursing officers aboard the ships concerned would receive authorization to pay these trainees and would be furnished the deposit allotment number to charge when making payments.

   4. Navy Management Fund

      This fund is used for the economical and efficient completion of Navy operations that are financed by two or more appropriations, when the costs of such operations cannot be distributed immediately as charges to the appropriations. An example of a charge financed by the Navy Management Fund is the shipment of household goods.

2. Trust Funds

   A trust fund is a fund held in trust by the Navy for use in accordance with a special aggreement or an Act of Congress. Private parties or sources may provide money for a special trust for the Navy; for example, public contributions received for the purpose of constructing and maintaining the USS Arizona Memorial at Pearl Harbor. The Ship's Store Profits, Navy is a trust fund for providing recreation and entertainment for enlisted personnel. Resale items for sale in the ship's store are purchased by NSF and held in NSA. When they are sold, NSF is reimbursed for their cost, and the profits go into Ship's Store Profits, Navy fund.

An allotment is an authorization, expressed in specific dollar amounts, granted by a competent authority to commit, obligate, and expend funds for a particular purpose. Obligation and expenditure of the funds may not exceed the amount specified in the allotment, and the purpose for which the authorization was made must be adhered to.

The holder of an allotment may issue suballotments under appropriate circumstances. The holder of a suballotment may create commitments and obligations against appropriations within the scope of the suballotment.

An operating budget is the annual budget of an activity. Operating budgets are assigned by the Chief of Naval Operations, Fiscal Management Division, to major claimants. A major claimant is an office, command, or Headquarters, Marine Corps, designated as an administering office under O&MN. Subclaimants are offices and commands that are designated as administering offices and receive a subclaimant operating budget from a major claimant. Holders of operating budgets may grant subordinates a degree of financial responsibility by issuing operating targets (OPTARs). Medical OPTAR funds are used to fulfill four major requirements.

• Authorized Medical Allowance List (AMAL)-the minimum amount of medical material to be maintained on board a ship at any time, normally a 12-month supply. The amount of material noted in AMAL is set by NAVMEDCOM. AMAL is used as a guide in developing medical stock. Forward recommendations for changes through the chain of command.
• Type Commander's (TYCOM)-to supplement AMALs, TYCOMS may have additional requirements to maintain units in a high state of readiness and to allow units to be self-supporting in an emergency. TYCOM requirements for medical considerations relate to such items as first aid gun bags, plastic airways, litters, and battle dressing station supplies.
• Special mission usage
• Administrative-the purchase of consumables or medical OPTAR restricted items may be made from this OPTAR with the approval of the executive officer. Books and publications required for all ships, as listed in BUMEDINST 6820.4 series, may be purchased with this OPTAR.

FCS names, describes, classifies, and numbers all items carried under centralized inventory control by the federal government. Only use one identification for each supply item. FCS is also used by NATO countries.

To order supplies effectively from this system, you must first have an understanding of its terminology.

Material-all supplies, repair parts, equipment, and equipage

Equipment-any functional unit of hull, mechanical, electrical, ordnance, or electronic material operated singly or as a component of a system or subsystem. It is a nonconsumable item.

Consumable-all supplies consumed in use

Stock Unit-the smallest quantity of a supply item

Standard Stock-material under the control of an inventory manager and identified by a National Item Identification Number (NIIN)

Reserve Stock-items on hand and available for issue for a specific purpose but not for general use

Bulk Stock-material carried in stock for future use in full unbroken containers

Repair Part-a replaceable part of machinery or equipment

Controlled Equipage-equipment that is under management control due to high replacement cost, likelihood that it may be stolen, or is highly essential to accomplish the activity's mission

1. Federal Supply Classification (FSC) Structure

   The FSC System classifies all supplies used by the federal government. Each item is identified by a four-digit code. The first two digits denote the group or major division of commodities; the last two denote the class or subdivisions of commodities within a group. An example is 6505, Drugs, Biologicals, and Official Reagents.

   Group	65
   Class	05

   1. Cognizance Symbols

      These symbols are supply management codes that identify the Navy inventory manager of the specific category of material in which the item is included. The cognizance symbol for all Navy- owned bulk medical material is "9L."

   2. National Stock Numbers (NSN)

      The national stock number (NSN) for an item of supply consists of a four-digit federal supply classification (FSC-group and class) and a nine- digit national item identification number (NIIN). NIIN consists of a two-digit national codification bureau (NCB) code and seven digits that, in conjunction with the NCB code, identify each NSN item in the Federal Supply Distribution system.

      An example of NSN is:

      3110-00-123-4567

      Federal Supply Classification	3110-00-123-4567
      National Codification Bureau Code	3110-00-123-4567
      National Item Identification Number	3110-00-123-4567

   3. National Codification Bureau (NCB) Code

      An NCB code is a two-digit code that is included as the fifth and sixth digits of an NSN or NATO stock number. It identifies the country that assigned the stock number or it indicates that the stock number is used by two or more countries. The NCB codes 00 and 01 are currently assigned to the United States.

   4. National Item Identification Number (NIIN)

      The national item identification number (NIIN) is a nine-digit number that identifies each item of supply used by the Department of Defense (DOD). The NIIN indexes or relates to information that makes an item of supply for DOD different from every other item of supply. The amount and type of information would depend on the item and its intended use. Although NIIN is part of the national stock number, it is used independently to identify an item. Except for identification lists, most federal supply catalogs are arranged in NIIN order.

   5. Navy Item Control Numbers (NICN)

      NICNs identify items of material that are not included in FCS, but which are stocked in the Navy Supply System. These are 13-character numbers assigned by inventory managers for either temporary or permanent control.

   6. Local Item Control Numbers

      Technically, any item identification number assigned by an activity for its own use is an NICN. However, to distinguish between NICNs authorized in supply transaction documents and those that are not, the term local item control number is often used instead of NICN. The local item control number consists of 13 characters with the fifth and sixth digits being LL. A full explanation of the composition of NICNs, NIINs, and local item control numbers is contained in Afloat Supply Procedures, NAVSUP P-485.

2. Federal Supply Catalog

   This publication contains all standard stock items available to the agencies of the federal government. It furnishes identification and management data for single manager supply items. The sections of the catalog of greatest interest to you are those dealing with medical items listed below in figure 12-1. Each subsection deals with specific categories of material.

   The following is a subsection description of the Federal Supply Catalog, Medical material, 6500 section:

   • Introduction-provides a general overview of the contents and use of the catalog
   • Alphabetical Index-a list of item names, synonyms, colloquials, common names, and trademarks referenced to index numbers to help locate an item within the subsection
   • Glossary of Colloquial Names and Therapeutic Index (6505/6508 subsections only)-contains colloquial names, synonyms, and trade names arranged in alphabetical order and cross-referenced to appropriate National Item Names. It further classifies items by therapeutic use.
   • Identification List (IL) contains the following:
     • Preface-each subsection contains a preface that includes special instructions pertaining to that individual subsection
     • Alphabetical Index-a list of National Item Names cross-referenced to index numbers to help locate an item when NSN is not known
     • National Stock Number Index-a list of NSNs arranged in numerical sequence and referenced to index numbers to help locate an item within a subsection
   • Identification Data-the following data are arranged alphabetically by the item name under which it is identified in FCS. Some items will be illustrated for clarity.
     • Action Codes-denote additions, deletions, or revisions of published data as follows:

       N	-	new indicates items not previously included in the basic publication, change bulletin, or change notice; or a reinstatement of a previously deleted item
       C	-	change indicates a change in data since the previous publication
       D	-	deletion indicates an item is no longer available

     • Index Numbers-items are presented in alphabetical order; index numbers are assigned in ascending sequence within each pamphlet. They are used solely as a locator device and not in lieu of NSN.
     • National Stock Number Index-NIINs are listed in numerical order
     • Descriptive Data-important distinguishing characteristics are stated in this section
     • Description-appears below the item name and above the box in which the index number, NSN, and descriptive data are arranged. Operational data may appear as a footnote.
     • Notes-information regarding special storage and handling of an item are as follows:

       B	-	corrosive or poisonous material
       C	-	contains one or more component items of the nature described under "R" below; used in connection with assemblies only
       F	-	subject to damage by freezing
       G	-	requires refrigeration between
       I	-	flammable or oxidizing material
       M	-	an item containing potentially recoverable precious metals
       P	-	an item with potency period or expiration date
       Q	-	drug or other item requiring security storage and Schedule III, IV, and V
       R	-	alcohol, alcoholic beverages, precious metal, or other substances requiring vault storage and Schedule II
       W	-	item must be kept frozen for preservation

   • Navy Management Data List (NMDL)- it contains information such as price and unit of issue. Authorized substitutions are listed here. A separate NMDL is published for each IL segment of the catalog.

Procurement is the act of obtaining materials or services. material may be procured by requisition or purchase. Requisitions are most frequently used, but purchase is used for procuring nonstandard material and emergency requirements.

1. Requisitioning

   MILSTRIP is used for ordering all material except for certain classes of material listed in NAVSUP P-485 and P-437. All items ordered from the Navy Supply System, other military installations, the Defense Logistics Agency (DLA), and the Government Services Administration (GSA) will be procured using the MILSTRIP system. MILSTRIP requisitioning is based upon the use of a coded, single-line item document for each supply transaction. One of the following will be used.

   DOD Single-Line Item Requisition System Document (Manual), DD 1348, is used by nonautomated ships without keypunch facilities as a requisition, requisition followup, modification, and cancellation and tracer requests on overdue shipments sent by insured, registered, or certified mail. This form is available in two-, four-, and six-part sets. See figure 12-2.

   The two-part set is not used for requisitioning by afloat units but is used by nonautomated ships for requisition follow-up, modification, and cancellation and tracer requests. The four-part set is used for requisitioning from shore activities. The six-part set is used for requisitioning from other nonautomated ships and from automated ships when required.

   Single-Line Item Consumption/Requisition Document (Manual), NAVSUP 1250-1, is a multipurpose form used as a consumption document by submarine forces, as a MILSTRIP requisitioning document by nonautomated ships of the submarine forces, and as an invoice document.

   DOD Single-Line Item Requisition System Document (Mechanical), DD 1348m, is a standard manilla punchcard that is used for requisition, requisition followup, modification, and cancellation and tracer requests. It is also used by automated shore activities for various supply actions.

   Non-NSN Requisition (Manual), DD 1348-6, is a six-part form used for requisitioning material that cannot be identified by an NSN, a Nato stock number, or an NICN (other than a permanent "L" coded NICN).

   Requisitioning and Invoice/Shipping Document, DD 1149, is used for certain items that are excluded from MILSTRIP. These items are listed in NAVSUP P-485 and P-437. DD 1149 may be used as a requisitioning or receipt document. As a requisitioning document, use this form to procure GSA contract items, such as medical books and journals and standard nonstocked and nonstandard NAVMEDCOM-controlled items requiring local purchase action. Also, use this form for items that cannot be adequately described, transferred, expended, or receipted on DD 1348-1.

   1. NAVMEDCOM-Controlled Items

      NAVMEDCOM-controlled items are essential to preserve life, are easily pilfered, and have a high acquisition or replacement cost. Requisition standard stocked NAVMEDCOM-controlled items on DD 1348, and forward the requisitions for technical review through the chain of command to the Naval Medical material Support Command (NAVMEDMATSUPPCOM). NAVMEDMATSUPPCOM also reviews and approves standard nonstocked and nonstandard item requisitions.

   2. Professional Books and Publications

      The listing of professional books and publications that are required to be maintained at an activity are in BUMEDINST 6820.4L. GSA periodically makes open-end contracts that cover the procurement of books. All books are procured under the provisions of these contracts.

   3. Small Purchases on the Open Market

      The term small purchase refers to purchases not in excess of $10,000. This term includes only the procurement of supplies and services other than personal services that are authorized to be made from commercial suppliers by purchase orders.

2. Uniform Material Movement and Issue Priority System (UMMIPS)

   UMMIPS is a vital part of the MILSTRIP system. It was established to ensure that material issue requests are processed according to the military IMPORTANCE of the requiring activity and the URGENCY of the need.

   MILSTRIP provides forms and procedures for requisitioning material, and UMMIPS provides the method of assigning priorities for issuing and moving the material. In moving and issuing material, it is necessary to provide a common basis to identify the relative importance of completing demands for logistics systems resources. These resources include transportation, warehousing, introduction of requisitions for processing, and material assets. The means for determining the relative importance and urgency of logistic requirements is provided by UMMIPS through a series of two-digit issue priority designators.

   1. Force/Activity Designator (F/AD)

      F/AD is a Roman numeral (I-V) that identifies and categorizes a force or activity on the basis of its military importance. The assignment of F/ADs is shown in NAVSUP P-485.

   2. Urgency of Need Designator (UND)

      UND is an uppercase letter of the alphabet (A, B, or C) selected to indicate the relative urgency of a force or activity's need for a required item of material. Assignment of UNDs is the responsibility of the force or activity requiring the material. UNDs and their associated definitions are as follows:

      UND	Definition
      A	(1)	Requirement is immediate.
      	(2)	Without the material needed, the activity is unable to perform one or more of its primary missions.
      	(3)	The condition noted in definition (2) has been reported by established, not operationally ready supply/ casualty report (NORS/CASRPT) procedures.
      B	(1)	Requirement is immediate or it is known that such requirement will occur in the immediate future.
      	(2)	The activity's ability to perform one or more of its primary missions will be impaired until the material is received.
      	(3)	This comprises immediate stock replenishment requirements of customer mission-essential material at overseas forward area supply activities, including mobile logistics support force (MLSF) ships. It occurs when the on-hand quantity is below the safety level and is expected to reach a zero balance before receiving the stock due in.
      C	(1)	Requirement is routine.

   3. Priority Designator (PD)

      PD is a two-digit number (01-highest to 15-lowest) determined by using the table of priority designators shown in figure 12-3. The table is easy to use. For example, if your ship is assigned an F/AD of III and your requirement is of a routine nature, assign priority 13.

      In addition to providing standardized criteria for assigning priorities, UMMIPS provides acceptable maximum processing times for use by supply activities in furnishing material. Processing time standards and additional codes used in MILSTRIP and UMMIPS are included in NAVSUP P-485.

3. Requisition System Document (Manual), DD 1348

   Most of the information shown on DD 1348 is represented by codes. These codes apply to all levels of supply and are too extensive for all to be included in this chapter. However, some of the more common are included in the data block entry descriptions below. The codes are published in the appendixes of NAVSUP P-485.

   Prepare DD 1348 by typewriter or ballpoint pen. Do not use pencil, because pencil marks can cause errors when the requisition is processed through mark-sensing equipment at shore activities. In preparing requisitions, do not space the entries within the "tic" marks printed on the forms, but make sure the entries are made within the proper data blocks. To eliminate any possible confusion between numeric zero and an alphabetic "O," use the communication zero (0) on MILSTRIP requisitions when zeros are applicable.

   In the descriptions below, show the data block letter or number first, then the field legend, or title, as printed on the form, and finally, a description or explanation of the data shown in that block.

   Data Block A, Send To-Identification of the supply source is a mandatory entry. If the requisition will be submitted to a shore activity, enter the service designator code (SDC), unit identification code (UIC), name, and location of the activity to which the requisition will be submitted. See the sample entry in the next illustration. If the requisition will be submitted to another ship, enter the SDC, UIC, name, and hull number of the ship as shown in the next illustration.

   

   Data Block B, Requisition is From-Identification of the requisitioner is a mandatory entry. Enter the SDC, UIC, name, and hull number of the requesting ship as shown below.

   

   Data Block C- At the discretion of the supply officer, enter the name of the requested item in data block C or leave it blank.

   

   Data Blocks D, E and F, Editing Data-These blocks are left blank.

   Card Columns (CCs) 1-3, Document Identifier-The document identifier identifies the purpose of the document, such as requisition, follow-up, and cancellation. The appropriate three-position document identifier code is entered as follows:

   Requisition for overseas shipment		Requisition for domestic shipment
   AØ1	With NSN/NATO number	AØA
   AØ5	With exception data	AØE

   When a requisition contains ANY information in the REMARKS block, such as authority for the requisition, special accounting data, special delivery instructions, or additional identification information, the requisition is said to contain exception data. See the REMARKS section of the illustration below.

   

   The document identifier A05 or A0E is used as indicated here.

   

   CCs 4-6, Routing Identifier-Routing identifiers are three-character codes that identify a specific activity. They are assigned to all DOD and GSA supply support activities and other activities ashore with supply departments. The routing identifier must agree with the activity shown in data block A. This block is left blank on requisitions submitted to nonautomated ships for which no routing identifier is assigned. Many of the naval supply activities show more than one routing identifier. For example, NSC, Norfolk, VA, has the following routing identifiers:

   NNC-DCSC	Construction supplies
   NNE-DESC	Electronic supplies
   NNG-DGSC	General supplies
   NNI-DISC	Industrial supplies
   NNM-DPSC	Medical supplies
   NNO-DSA	Stocks attrited to GSA
   NNS-DPSC	Subsistence supplies
   NNT-DPSC	Clothing and textiles
   NNZ	Navy material

   On all requisitions to a supply activity, use the routing identifier for Navy material, for example, NNZ for NSC Norfolk as shown here. The others are for interservice transactions.

   

   CC 7, M&S Code-The media and status (M&S) code is a single-character code that indicates the type of status required, who is to receive the status, and how the status is to be furnished, for example, communications media. Appropriate codes may be selected to provide:

   • No status
   • Exception status
   • Exception status plus shipping status
   • 100 percent supply status
   • 100 percent supply status plus shipping status

   Ships not equipped with transceivers must not assign codes 2, 4, B, D, K, M, S, and U because these codes request status by transceiver. For example, when the requisitioner desires exception status by message, the M&S code in the data block will be 6 as illustrated.

   

   CCs 8-22, Stock Number-1-When requisitioning material with an NSN, enter the four-character FSC in CCs 8-11; enter the two-character NCB code and the remaining seven characters of NIIN in CCs 12-20. When applicable to a designated item, enter the two-character special material identification code (SMIC) in CCs 21-22. See figure 12-4.

   When requisitioning items that can be identified only by a part number or by a local item control number, use DD 1348-6 which is discussed later in this chapter.

   CCs 23-24, Unit of Issue-Enter the two- letter unit of issue abbreviation for the item being requisitioned. For example, if the unit of issue for the item requisitioned is box, enter BX in CCs 23-24 as shown here.

   

   CCs 25-29, QUANTITY-Enter the quantity of the item required. If the quantity exceeds 99,999, submit additional requisitions for the remainder of the order. When the item requisitioned is required in a minimum length, size, or other requirement that cannot be covered by an advice code, enter the specific requirement (for example, minimum length acceptable 10 ft) in the REMARKS block and identify the requisition as containing exception data by entering A05 or A0E in CCs 1-3. Also, when the total requirement of an item involves two or more urgencies of need (for example, immediate use and routine stock replenishment), prepare separate requisitions for the partial quantities of the total requirement. When the requested quantity does not require five significant digits, enter zeros in the blank spaces preceding the significant digits as shown below.

   

   Requisitions that will result in multiple receipts of material or services, such as continuing and annual requirements for gasoline, telephone service, or laundry, must indicate "C9999" in CCs 25-29.

   CCs 30-43, Document Number-The document number includes the SDC, the requisitioner's UIC, the Julian date of the requisition, and the serial number of the requisition as explained below:

   CC 30, SDC-This one-letter code identifies the service or component of the service. Navy codes are as follows:

   R	-	Fleet operating units of CINCPACFLT
   V	-	Fleet operating units of CINCLANTFLT
   N	-	All activities other than fleet operating units of CINCPACFLT/CINCLANT-FLT

   CCs 31-35, Requisitioner-This is the UIC of the ship or activity. If the number is less than five digits, it is preceded by zeros.

   CCs 36-39, Date-Enter the four digits representing the Julian date on which the requisition is actually transmitted to the supply source. The first position represents the last digit of the calendar year. The last three positions indicate the numeric consecutive day of the calendar year. For example, 4299 represents 26 Oct 84. The numeric consecutive day of the calendar year is on all government calendar pads.

   CCs 40-43, Serial-Enter a four-position serial number. The first position of the serial number may be a numeric 0 through 9 or an alphabetic A through G, or W; however, use only G or W on NORS requisitions. The remaining three positions of the serial number is numeric 001 through 999.

   Blocks of serial numbers may be assigned to various shipboard departments or to specific commodities of material. However, serial numbers in the 9700-9999 series are used only in requisitions for ship's store items, including retail clothing.

   NOTE: Since the document numbers initially assigned by requisitioners are perpetuated on all subsequent supply and financial documents, under no circumstances may you assign a duplicate serial number on the same day.

   CC 44, Demand-The demand code is a mandatory entry of a single alphabetic character and is assigned as follows:

   • R - Recurring Demand-all requisitions except those for which demand code "N" or "O" is applicable
   • N - Nonrecurring Demand-all requisitions for:
     • Initial allowances
     • Increase in range or depth based on demand or changes in allowance list or load list quantities
     • material for space or equipment alterations, for example, modernization, retrofit, ordnance alterations (ORDALTs), special projection alterations (SPALTs), and other material requests clearly identified as one-time requirements.
   • 0 - No Demand-Requisitions for substitute items that can be supplied more readily than preferred items that have been requisitioned previously and are still desired when available.

   In selecting demand codes, remember that inventory managers rely upon demand codes (specifically demand code "R") to determine which items they will invest procurement funds to ensure their continual availability. Requisitioners must not use the recurring demand code "R" indiscriminately. Use the demand code "N" when the requirement clearly meets any of the criteria listed for nonrecurring demands.

   Two separate requisitions (one coded "R" and one coded "N") may be necessary to satisfy a single requirement. For example, if the on-hand stock of an item is -3, the current requisitioning objective is 6, and an increased requisitioning objective of 12 is authorized as a result of increased demand history, you must code one requisition for the original deficiency of 3 as "R." Code the other requisition for the increase of 6 in the new requisitioning objective as "N."

   CCs 45-50, Supplementary Address-When using the supplementary address field as a "Ship to" or "Bill to" address, enter the appropriate service code and UIC in CCs 45-50. When material is to be shipped and billed to the requisitioner, use CCs 45-50 for local information, such as a stowage location, a work center code, and a controlled equipage custody record number. When local information is entered in CCs 46-50, make sure CC 45 always contains a "Y."

   In requisitions for not carried (NC) material other than controlled equipage and selected item management (SIM)-direct turnover (DTO) items, enter "N" in CC 46 and the requester's work center code in CCs 47-50. In requisitions for not in stock (NIS) material and SIM-DTO items, enter "S" in CC 46 to signify that a stock record is maintained and the requester's work center code in CCs 47-50.

   In requisitions for controlled equipage items, enter "E" in CC 46 and the appropriate equipage custody card number in CCs 47-50. Enter one of the following appropriate alpha codes in CC 47 to identify the requesting department:

   Air	V
   Communications	C
   Deck	D
   Engineering	E
   Embarked Staff	F
   Executive	X
   Medical/Dental	M
   Navigation	N
   Operations	O
   Reactor	R
   Supply	S
   Weapons	W

   In requisitions for equipage items other than controlled equipage, enter "E" in CC 46 and the requester's work center code in CCs 47-50.

   CC 51, Signal-This is a single alphabetic code that designates the activity to receive the material (ship to) and the activity to be charged for the issue (bill to).

   • When material is to be shipped to the requisitioner (CCs 31-35):

     A	-	Bill the requisitioner
     B	-	Bill the supplementary addressee (CCs 46-50)
     D	-	Use no billing required (free issue) for fleet units when requisitioning material identified by cognizance symbols 0I and OP (publication) or OA and 8A (nuclear ordnance items)

   • When material is to be shipped to the supplementary address (CCs 46-50):

     J	-	Bill the requisitioner
     K	-	Bill the supplementary addressee
     M	-	Use no billing required (free issue) for fleet units to indicate items with signal code "D"

     Note 1: Requisitioner may use "Y" and local code only with signal codes "A" or "D ."

     Note 2: Do not use "D" or "M" when requisitioning Appropriation Purchases Account material, since such material is charged for statistical purposes even though operating funds are not affected. If there are accounting instructions that cannot be covered by the signal and fund codes, write them in the REMARKS field (data blocks L through V). In this instance, use document identifier A05 or A0E.

     CCs 52-53, Fund Code-Enter the applicable two-character fund code (see NAVSO P-3013, app. 2) on all requisitions except for free issues that are identified by a signal code "D" or "M" entered in CC 51. Leave the fund code field blank on a free issue requisition.

     CCs 54-56, Distribution-The distribution field of a requisition is a dual-purpose field with two different uses for the Navy Supply System. The first position indicates a monitoring activity; the other two indicate the cognizance symbol.

     Monitoring Activity-When an entry is made in CC 54 of the distribution field, it will represent a specific monitoring activity (see NAVSUP P-485, app.3) that is to receive 100 percent supply and shipment status. Such status is in addition to that provided the requisitioner or supplementary addressee by the M&S code assigned in CC 7. For example, if the USS John Paul Jones (DDG-32), while deployed in the Pacific, initiates an issue group one requisition, enter "D" in CC 54 to designate Special Programs Section, NSC Oakland, as the monitoring activity that is shown below.

     

     Cognizance Symbol-The cognizance symbol entry is the two-character numeric and alpha code prefixed to NSNs as listed in NMDL, allowance list, or other source if assigned. The first character of the symbol indicates the stores account and is entered in CC 55 of the distribution field. Odd numbers specify Navy Stock Account (NSA) material, and even numbers specify either Appropriation Purchases Account (APA) material or nonstores account material. The second character of the symbol indicates the cognizant inventory manager and is entered in CC 56. For example, if the cognizance symbol is "9N," it appears in the distribution field as illustrated here.

     

     When the cognizance symbol is not known and the fund code cited does not signify a charge to an allotment under NSF, leave CCs 55-56 blank. If the fund code cited signifies a charge to an allotment under NSF, enter a cognizance symbol compatible with the fund code. For example, a USS John Paul Jones (DDG-32) requisition citing fund code "NR," for a machinery repair part that cannot be identified to NSN, does not require you to enter a cognizance symbol in the distribution field. However, a USS Puget Sound (AD-38) requisition citing fund code "CZ" for the same item would have the cognizance symbol entry "1H" in CCs 55-56. Entries would appear as shown in figure 12-5.

     CCs 57-59, Project-The project code is a mandatory three-character entry (fig. 12-6) used to identify the purpose of the requirement. These codes are recognized throughout the distribution system and assist the supplier in determining the appropriate method of handling and marking of shipments. The third position of the project code may be used to provide the sixth digit of a storage location if needed. See appendix 6 of NAVSUP P-485 for a complete listing of codes.

     CCs 60-61, Priority-This is a numeric code assigned by the requisitioner that indicates the mission of the requisitioner and the urgency of need for the material. PD is assigned according to the procedures explained earlier in this chapter.

     CCs 62-64, Required Delivery Date-The standard delivery date for the assigned PD is normally the required delivery date. Therefore, enter no required delivery date in CCs 62-64 except under conditions explained in NAVSUP P-485.

     Data Blocks G, H, I, J, and K, Status Data-Leave these blocks blank.

     CCs 65-66, Advice-The advice code is used to provide the required information to the supplier. Figure 12-7 explains how to use advice code 5A.

     All requisitions for mandatory turn-in repairables (MTRs) must contain the proper advice code (5A, 5D, 5G, 5S, or 5X) in CCs 65-66. These advice codes have special significance for MTRs and take precedence over any other advice code.

     

     Any other advice code must be entered in the REMARKS block of the requisition and a document identifier of A05 or A0E is entered in CCs 1-3.

     

     For afloat/FMF medical departments, use advice code 2-G for the ordering of all medical supplies. A second advice code may be entered in the REMARKS block of DD 1348. The 2-G code is used to obtain small quantities of AMAL items with the most distant expiration dates. If material is still received with an unacceptable remaining shelf life, submit an Item Discrepancy, SF 364, under NAVSUPINST 4440.127.

     Data Blocks L-V, Remarks-These blocks are used to convey the necessary exception data pertinent to the processing of the requisition by the supply activity. When exception data is entered in the REMARKS block, enter document identifier code A05 or A0E in CCs 1-3. Use exception data only when required because document identifier A05 or A0E prevents automatic processing of the requisition by computerized supply activities. Exception data is usually limited to the following:

     • Special funding instructions
     • An additional advice code, if required, when advice code 5A, 5D, 5G, 5S, or 5X is entered in CCs 65-66
     • Authorization for the item when requirement is imposed by higher authority, such as TYCOM and systems command
     • Essential "Mark for" address
     • "Ship to" or "Bill to" address when it cannot be designated by a coded entry in CCs 30-43 (requisitioner) or CCs 45-50 (supplementary address)
   • Distribution

     DD 1348 (4-part form) is normally used to requisition material from ashore supply activities. The 6-part form is normally used when requesting material from other ships. DD 1348 is usually prepared and distributed by nonautomated ships as shown in table 12-1.

     Table 12-1.-Distribution of DD 1348

     Original	To issuing ship or ashore supply activity
     Green Copy	To OPTAR recordkeeper for filing OPTAR document file No. 1 if requisition is for OPTAR chargeable material; otherwise, destroy after posting to the Requisition/OPTAR log
     Pink Copy	To stock records storekeeper if a procurement action tickler file is maintained; otherwise discard
     Yellow Copy (6-part form only)	To issuing ship
     White Copy (6-part form only)	To issuing ship. Returned with material. Receipt and return to issuing ship when requested; otherwise discard
     Hardback Copy	To material outstanding file (MOF)

DD 1348-6 is used to requisition material that cannot be identified by an NSN, a NATO stock number, or an NICN (other than a permanent "LL" coded NICN). The form is illustrated in figure 12-8. The upper portion includes nine data blocks for additional identification data. Table 12-2 provides CC and data block entries with explanations. Table 12-3 shows its distribution.

Table 12-2.-Data Elements of DD 1348-6

Table 12-3.-Distribution of DD 1348-6

DD 1149 is used as the procurement document for the items excluded from MILSTRIP. It is shown in figure 12-9.

The requisition number and priority are assigned in the same way as for the MILSTRIP requisition. However, when more than one item is being ordered, show only the UIC and Julian date in data block 6. A separate serial number is assigned to each item on the requisition (fig. 12-9). A requisition for bulk fuel or bulk lube oil may include only one item on each DD 1149. Figure 12-10 illustrates a requisition for petroleum products.

On DD 1149s for material other than bulk petroleum products, enter "FUND CODE" and the appropriate fund code in data block 4.

Certain material and situations may require procurement by letter or message instead of by requisition. There is little difference in the three types of procurement except in form. The request must still convey to the supplying and approving activities the accounting and descriptive data necessary to process the transaction.

1. Letter Requests

   You, as a medical supply person, must try to keep letter requests to a minimum. Use these requests when it is necessary to discuss the material requirement or when the cognizant command or bureau requires a letter format. Assign each item of material listed in a letter request a separate requisition number in the regular MILSTRIP series and format. Also, specify the authorized priority designator and appropriate fund code or accounting data.

2. Message Requisitions

   In certain situations, you will have to procure urgent material requirements by message rather than by submitting standard requisition documents. Submit message requisitions in a specified format, and make sure they convey the same data required on DD 1348, DD 1348-6, or NAVSUP 1250-1.

   Fleet units use message requisitions for priority 01-08 requisitions unless they can be transmitted more expediently by other means. Fleet units also use messages for priority 09-15 requisitions when transmission by airmail will not result in delivery of the requisitioned material by the required time. When a message requisition is prepared, submit a DD 1348, DD 1348-6, or NAVSUP 1250-1 for each item requested in the message. Since the message replaces the original form, discard the original of each DD 1348, DD 1348-6, or the original and white copy of the NAVSUP 1250-1, and distribute the remaining copies by the established procedures.

   When material is authorized to be requisitioned by message and no exception data is required, prepare message requisitions for NSN and NICN items for transmittal through the Defense Automatic Addressing System (DAAS). DAAS is a real-time random access digital computer system that uses the Automatic Digital Network (AUTODIN) switching centers of the Defense Communications System to receive and automatically retransmit MILSTRIP messages to the proper addressees. An input message to DAAS may include multiple requisitions, follow-ups, requisition modifiers, and cancellation requests, provided that each document included in the message is limited to 66 CCs of data as illustrated in figure 12-11.

   Prepare message requisitions for non-NSN and NICN items or items requiring exception data as shown in figure 12-12. Submit these requisitions in MILSTRIP format; separate data elements by slants (/); and identify data elements that are not applicable by "BLNK."

   A message requisition for non-NSN and NICN items may contain no more than seven requisitions, and they must have the same routing identifier. For detailed instructions on message requisitions, see NAVSUP P-485.

1. Restrictions

   Activities afloat, either in the United States or foreign ports, may not purchase the following material without specific authority from the cognizant bureau or command:

   • material in excess of allowance except approved emergency requirements
   • Boats
   • Books for the ship's library
   • Forms, commercial printing, binding, blank bookwork
   • Technical ordnance articles
   • Printing equipment and machinery
   • Automotive equipment
   • Transportation facilities, equipment, parts, and supplies required for domestic transportation
2. Methods of Purchase

   Purchases afloat are made by one of the following methods:

   • Purchase order for purchases not in excess of $2500 (not in excess of $10,000 under emergency conditions)
   • Imprest fund for cash purchases when the amount does not exceed $150 ($300 under emergency conditions)
   • Orders under indefinite delivery-type contracts and blanket purchase agreements that have been negotiated by ashore activities

   A single requirement may NOT be divided into more than one purchase action for the purpose of avoiding the monetary limitations stated above.

   Procedures for purchases by ashore activities are provided in NAVSUP P-467.

   When a purchase is made under any of the above procedures and is chargeable to the ship's OPTAR, prepare a DD 1348 as an obligation document. Attach the hardback copy of DD 1348 to a copy of the purchase document, and place it in material outstanding file. Place the green copy of DD 1348 in the OPTAR document holding file 1 by ships that submit budget and OPTAR reports, or promptly forward it to the OPTAR holding activity by ships that do NOT submit budget and OPTAR reports. Discard the original and remaining copies.

3. Purchase Order Use and Form

   The purchase order method will be used for purchases in the open market up to the purchasing authority and as authorized by the cognizant type commander. (Purchase orders will not exceed $10,000 except as specified in par. 3085-7 of the NAVSUP P-485.) The purchase order form (Order for Supplies or Services/Request for Quotations, DD Form 1155) is shown in figure 12-13.

   The block "Purchase" (Block 16) on the DD Form 1155 will be checked in addition to the box at the top of the form entitled "Order for Supplies or Services," to signify the use of the form as a purchase order as distinguished from a delivery order. In addition, all applicable blocks and spaces will be completed with the required data subject to the special instructions set forth in this paragraph. The DD Form 1155 will be prepared as described in chapter 3 of the NAVSUP P-485.

   The date and place of delivery must be shown. If the material is to be picked up by the ship's representative, this should be stated in the order.

   The description must be clear and concise to permit the dealer to correctly identify the requirement.

   The purchase order must be signed by the supply officer in his capacity as a contracting officer of the Naval Supply Systems Command.

   DD Form 1155 is distributed as follows:

   • Send the signed original to the vendor.
   • Send one copy to material outstanding file, attached to the hardback copy of the DD Form 1348, prepared as an obligation document.
   • Original to the purchase payment file.
   • Destroy the remaining copies.
4. Imprest Fund

   The imprest fund is a small amount of money at an activity that is used for making purchases on the open market. All purchases are paid for in cash, and no one purchase may exceed $150 except in emergencies when $300 is the limit.

   The authorization to set up an imprest fund must be in writing, and the amount of the fund must conform to the command's actual needs (usually $1000). In any event, the maximum may not exceed $5000. The fund is reviewed quarterly to determine current needs by the officer who approved the fund or his or her delegated representatives. The maximum size of the imprest fund will be one third of the monthly disbursements or $500, whichever is greater, but will not exceed $1000 unless authority is specifically granted by the cognizant Naval Regional Procurement Office.

   Imprest funds MAY NOT be used for:

   • Payments of salaries and wages
   • Cashing of checks
   • Purchase of money orders
5. Blanket Purchase Agreement

   A blanket purchase agreement (BPA) is an arrangement established with a vendor to furnish designated categories of material for a specific period. BPAs may not be established by ships but may be requested from the shore supply activity. This simplified method of making small purchases on the open market establishes charge accounts with qualified supply sources to cover expected small item purchases in the same general category. Since this arrangement eliminates the need to issue individual purchase orders for small requirements, make purchases by placing orders, either orally or by informal memoranda, against BPA.

   When a BPA is desired and the conditions in NAVSUP P-485 exist, the supply officer or commanding officer of a ship without a Supply Corps officer attached must submit a letter request to the supporting shore supply activity requesting that a BPA be established. Forward a copy of this letter to TYCOM, and make sure it contains the following information:

   • Type of supplies or services required
   • Suggested sources of supply
   • Period during which the supplies or services will be required
   • Name(s) of individuals within the supply department authorized to place calls against BPA

   When the supply activity determines that the request is justifiable, the supply activity will negotiate and prepare a BPA. Send copies of BPA to the ship, the vendor, and the activity designated to make payment.

   material is obtained by the authorized person designated in BPA by placing calls to the vendor. Consult NAVSUP P-485 for additional information on call procedures, billing, screening, and the review required under the BPA procedure.

Stock Points

Figure 12-14 illustrates the operation of the Navy Supply System from the receipt of a customer's requisition to the replenishment of stock. The following is an explanation of the process:

1. USS JOHN PA UL JONES submits a requisition to NSC San Diego for a cognizance symbol 1H repair part.
2. After researching their records and determining that the item is not in stock, NSC San Diego refers the requisition to the proper inventory manager for cognizance symbol 1H material, Ship's Parts Control Center (SPCC), Mechanicsburg.
3. SPCC Mechanicsburg, after researching their master records and determining that the requested item is in stock at NSC Oakland, refers the requisition to NSC Oakland.
4. NSC Oakland, issues the material to USS JOHN PA UL JONES.
5. NSC Oakland, makes an issue transaction report to SPCC Mechanicsburg.
6. SPCC Mechanicsburg, after applying the issue reports to its master record, ascertains that NSC Oakland's stock of the item is below the required level and issues a contract to the XYZ Corporation to replenish NSC Oakland.
7. The XYZ Corporation ships the material to NSC Oakland.
8. NSC Oakland makes a receipt transaction report to SPCC Mechanicsburg.

Sources of Supply

The material required to support your ship is normally procured through the supply systems of the Navy or DOD. However, in emergencies, procurement may be by transfer from another ship or by purchase on the open market. Operation orders and instructions issued by fleet commands, type commands, and service force commands specify the sources of supply for ships.

When your ship is within the United States, submit supply requisitions directly to the nearest supply support activity or NSC.

They either furnish the material or pass the requisition to the appropriate activity for action. The supply department of a naval shipyard or other ashore activity may issue maintenance items to ships while at that activity. However, submit requisitions for major stock replenishment to the established supply support activity.

SERVMARTS are convenient sources of material that permit the use of a single money value only (MVO) requisition to procure several stock items. SERVMARTS are located at most major naval bases and are designed like modern supermarkets.

When obtaining material from a SERVMART, prepare a DD 1348 as an MVO requisition based on DTO requests or storeroom stock deficiencies. Each of the following categories of material is listed on a separate DD 1348 when SERVMART shopping lists (SSLs) are used:

• Consumable items ordered for DTO
• Consumable items ordered for stock
• Repair parts ordered for DTO
• Repair parts ordered for stock
• Equipage
• Medical/dental material

If yellow copies of NAVSUP 1250 or 1250-1 are used, only one DD 1348 is required for stock and DTO consumables and for stock and DTO repair parts. To aid you in preparing requisitions, each SERVMART prepares shopping guides that list items stocked and distributes these guides to ships and activities in the area.

Upon receipt of internal requests, prepare a DD 1348 to cover the money value, and give the original to the person authorized on the form to pick up the material. An example of an MVO requisition using DD 1348 is shown in figure 12-15.

Ships in overseas waters receive supply support through submission of requisitions to MLSF units or overseas bases as specified in operation orders and instructions issued by fleet commands. Supply support from these ships is normally received by underway replenishment. Procedures for obtaining support from fleet issue ships are set forth in CINCLANTFLT, CINCPACFLT, and COMSIXTHFLT Requisitioning Guides. Local commands and operating conditions determine whether the underway replenishment (UNREP) is to be by ship alongside, vertical replenishment (VERTREP) helicopter, or both at the same time.

When normal supply sources are not available and general stores stock is exhausted, transfer items from the ship's store or subsistence stock for the ship's use. For example, transfer cornstarch from the subsistence stock to use in cleaning the boilers or flashlights from the ship's store for general use.

Such transfers are made on DD 1149 and are charged to the ship's OPTAR. Show the complete accounting data on the transferring DD 1149 for both the charge and the credit.

Emergency requirements may be obtained from ships other than supply ships and tenders if the material is available and can be spared. Make the request on a DD 1348, or send a message and make sure it contains the same information as a requisition to a supply activity except for the routing identifier that is left blank. If the requested material is not available for issue, return the requisition to the requisitioner since ships do not hold requisitions on back order for later issue.

Requisition File Maintenance

The full cycle of requisition file maintenance begins when you prepare a new requisition, and place the hardback copy of DD 1348 (or copy of other procurement document) in MOF. When all the material ordered has been received or canceled, place the requisition document, with a copy of the receipt document attached, in the material completed file (MCF). The cycle ends when the charge has been cleared through the Fleet Accounting and Disbursing Center (FAADC) at San Diego or Norfolk and reported to your ship. The steps in between are largely dependent upon the volume of requisitions prepared and the procedures used in your office. Here we will discuss only the MOF.

The majority of procurement documents are DD 1348s. Maintain the file of DD 1348s in a card file that accommodates EAM cards. Also, keep the documents in number sequence. As you saw in the chart on distribution of DD 1348, the hardback copy is the MOF copy.

DD 1149 and other purchase documents are folded to approximately the size of EAM cards. These documents are attached to the hardback copy of DD 1348, which is prepared as an obligation document under the procedures in NAVSUP P-485.

You must keep records of supply status. The amount and kind of status you receive is determined by the M&S code assigned on the requisition. The purpose of status is to keep you informed of the action taken by supply activities to furnish the requested material.

Supply status is usually received on DD 1348, but it may also be received by message on high-priority requisitions and by speedletter.

1. Requisition Follow-up

   When you have received no positive action on a requisition, send the supply activity a document identifier follow-up in the AT_______ series of MILSTRIP. The AT_______ follow-up is converted by the supply activity into an AO_______ requisition if there is no record of the original requisition. This saves time and eliminates the need to prepare additional documents. If the follow-up is mailed on an exception data requisition, make sure the AT_______ follow-up contains all the data in the original requisition.

Special Stowage of Items

You will have many items that require special stowage. The Naval Ships' Technical Manual, chapters 670 and 9230, and the Consolidated Hazardous Item List (CHIL) outline the requirements for shipboard stowage of dangerous and semisafe materials and list the materials under each classification. The Department of the Navy Information Security Program Regulation (OPNAVINST 5510.1) prescribes the requirements for stowing and handling classified material. We will now consider the classifications of material and discuss storage requirements for special types of material.

Hazardous Material-This includes all types of compressed gases and materials that present a considerable fire hazard or are otherwise dangerous. Except as provided below, stow these materials in the paint and flammable liquid storerooms. Paint and oil constitute the bulk of material in this category. The paint and flammable liquid storerooms are normally provided with sprinkler and CO2 smothering systems that can be activated by automatic temperaturesensitive devices inside and by manual controls outside the storerooms. A flooding system operated manually outside the storerooms is an additional safety factor. These storerooms are located, when practical, below the full-load waterline, near either end of the vessel, and not adjacent to a magazine. They are equipped with watertight doors that must be locked and dogged when not in use.

Compressed Gases-Stow compressed gases on the weather deck and securely fasten them in a vertical position. Protect the cylinder valves from accumulations of ice and snow, and screen the cylinders from direct rays of the sun. NAVSUP P-485 contains general rules for handling compressed gas cylinders.

Acid-Liquid acid, unless classified as safe material, is stowed in lead-lined boxes or chests in a storeroom below the full-load waterline in which the deck and lower part of the bulkhead has a watertight lead lining.

Alcohol-Stow alcohol in a locked con tainer in the paint and flammable liquid storeroom, to which only the supply officer or other officer designated in writing by the commanding officer has the key or combination.

Shelf-Life Material-This material is subject to deterioration. These items are assigned a "SHELF-LIFE CODE" listed in the NMDL and in the List of Items Requiring Special Handling (LIRSH). The code denotes the shelf-life span of material from the date of manufacture to the date of disposal or date of testing according to the inventory manager's instructions to extend the shelf-life. Type I codes (alpha) apply to items for which shelf- life cannot be extended. Type II codes (numeric) apply to items for which shelf-life can be extended.

Other Repair Parts-You must try to stow all repair parts in their original containers. With today's improving techniques and the material used in packaging, you can store repair parts for a considerable time without damage from dust, shock, or humidity.

Storerooms

When you are in charge of a storeroom, you are also responsible for maintaining the space. Before you secure each night, sweep the storeroom and remove all trash. Clean bins, shelves, ventilation ducts, and fans periodically.

The condition of your space is also your responsibility. Rust is an ever-present enemy and requires constant vigilance to keep it under control. Rust spots should be chipped, wire brushed or sanded, primed, and spot painted. Tighten loose bolts promptly to prevent possible damage to the storeroom or its contents. Examine pipes, valves, electrical systems, watertight fittings, and firefighting equipment daily, and report any defect to the supply officer.

Before getting underway into open seas, thoroughly inspect and secure storerooms to prevent stores from shifting due to the ship's motion. Lash bulk stores to bulkheads, stanchions, or battens, and secure the fronts of open bins and shelves to prevent stores from falling out on deck.

Unless approval is obtained from the commanding officer, do not stow personal gear in storerooms designated for supplies.

The following general security rules apply to medical supply spaces:

• Keep all material in store under lock and key except when the bulk of such material makes such stowage impractical.
• Keep medical supply spaces locked when not attended by authorized personnel.
• The person in charge of the space is responsible for its security.
• Obtain permission for entry of persons ordinarily not authorized to have access to medical supply spaces from the medical or the designated representative.
• Do not secure a medical supply space so that damage control equipment cannot be brought into the area in an emergency.
• Make sure the ship's custodian does not take the keys to medical supply space padlocks.
• Use a key log to identify the holders of keys removed from the key locker.
• Do not record combinations to combination locks except as prescribed in NAVSUP P-485.
• All key padlocks must be 1 1/2 inch, pin tumbler type, with dead bolts, either brass or bronze. Make sure the locks are keyed individually and are furnished with two master keys for each group and two grand master keys for each set.
• All keyless padlocks will be the three combination manipulation resistance type, NSN 5340-00-285-6523.
• Change the combinations on keyless padlocks at least every 6 months.

Inventory Management

Shipboard material inventories are divided into three segments for management purposes: operating space items (OSI), repair parts, and consumables.

OSIs are those items in the custody and under management of department heads.

Repair parts are in the custody of the supply officer when supply department stowage space permits and is always under his or her management.

Consumables are in the custody of the supply officer when supply department stowage space permits. Stocked consumables are managed by the supply officer whether such items are stored in supply department spaces or in other departmental spaces. Nonstocked consumables are in the custody and under management of other department heads.

Throughout this section, various terms are used in referring to inventory control. Some of these terms are discussed here to help you understand them completely and apply them correctly. NAVSUP P-485 provides definitions for all the terms used in inventory control.

Inventory-The quantity of stocks on hand for which stock records are maintained, or the function whereby the material on hand is physically inspected and counted and stock records reconciled accordingly.

Safety Level-The quantity of material, in addition to the operating level, required to be on hand to permit continuous operations if normal replenishment is interrupted or if there are unpredictable fluctuations in issue demand (normally for 3 months).

Operating Level-The quantity of material (exclusive of safety level) required to sustain operations during the interval between successive requisitions (normally for 3 months). It is usually the difference in the quantity between the requisitioning objective (high limit) and the reorder point (low limit).

Stockage Objective-The maximum quantity of material to be maintained on hand to sustain current operations normally for 6 months. It includes the sum of stocks represented by the operating level and the safety level.

Order and Shipping Time-The time elapsing between submitting a requisition and receiving the material requisitioned (equivalent to procurement lead time).

Average Endurance Level-The quantity of material normally required to be on hand to sustain operations for a stated period without augmentation; it is the median between the safety level and stockage objective.

High Limit (Requisitioning Objective)-The maximum quantity of material to be maintained on hand and on order to sustain current operations normally for 9 months; it includes the sum of stocks represented by the operating level, the safety level, and the order and shipping time.

Low Limit (Reorder Point-This stock position signals the need to start replenishment action; it includes the sum of stocks represented by the safety level and the order and shipping time.

Not Carried (NC) Items-Items not stocked in storerooms or for which stock records are not maintained.

Not in Stock (NIS)-Items carried in stock but not on board when demand occurs.

Demand-The request for an NC item that will be procured, or an issue of a stock item.

Frequency of Demand-The number of requests for an item within a given time frame, regardless of the quantity requested or issued.

Stock Fund Operations-The decision to stock an item at a supply center is made by a computer whose logic runs "We will start to stock a new item only when it has been asked for three times in 6 months. We will only continue to replenish an item if it is being asked for three or more times in 6 months." If the edical supply person decides to order a 6 month supply of material at once instead of ordering each time an item is NIS, the supply center computer may interpret the data as meaning no demand. The center may stop carrying the item even though the ship has a regular need for the item. As a result, it will take longer to receive material the next time it is ordered because none is available at the local supply center. It is better to get a realistic low limit and reorder smaller quantities frequently.

Selected Item Management (SIM)-An inventory control principle that, in nonautomated ships, focuses management attention on the few items that are used most frequently.

Supply Overhaul Assistance Program (SOAP)-An overhaul procedure divided into several phases, designed to weed out obsolete and unused items.

• Medical supply personnel prepare new inventory cards, which comprise updated AMAL and ship's formulary that are sent to the shipyard SOAP team.
• The ship offloads all storeroom items to warehouse space and starts rehabilitation of storerooms.
• The ship's medical SOAP team, composed of HMs with SK assistance, identifies and inventories all items. Record the inventory on inventory cards. Note the items to be added to the ship's formulary; mark and set aside those items to be disregarded and surveyed.
• As AMAL and formulary changes are made during the overhaul, make corrections and new cards to keep the ship's AMAL up to date.
• Review the ship's current file of medical stock cards, and record all usages (issues) on the appropriate inventory cards.
• Process the inventory cards, and use their data to prepare new stock record cards, locator cards, invoices covering excess medical material to be turned in to the supply system, requisitions for deficiencies, and a frequency and demand listing. The frequency and demand listing gives usage information based on entries you made on the inventory cards. It lists the stock numbers and shows the number of times and quantity issued during the past 24 months. This listing is most useful in setting your high and low limits.
• The shipyard SOAP personnel will assist you in processing the turn-in of excess material and in requisitioning deficient material as directed by your TYCOM.
• Rehabilitation of shipboard storerooms includes the remarking of shelves and bins. Stow medical supplies in storerooms.

Intermeidate Maintenance Activity (IMA) Technical Stores-Supply department stocks of repettively demanded repair parts and equipment related consumables (on board tenders and repair ships) that are stored in other departmental spaces for ready availability in accomplishing IMA functions. To qualify for inclusion in IMA technical stores, an item must be used by only one shop (or one group of contiguous shops) and meet the frequency of demand criteria specified by your TYCOM. The quantity of each item in the custody of another department, plus the on-hand quantity of any backup stock in supply department storerooms, must not exceed the ship's prescribed stockage objective. IMA technical stores will not include MTR, critical, or preexpended bin (PEB) items, nor will they include bulkhead-mounted spares or bulky consumables that are otherwise authorized to be stored in other departmental spaces.

Critical Item-This is an item that is essential to the operational readiness of the ship or aircraft and is in short supply in system stocks (or is expected to be in short supply for an extended period). Lists of critical items, with appropriate material control or inventory reporting instructions, are distributed periodically by inventory managers to specifically designated ashore and afloat activities. The term critical items may also be used afloat to refer to high usage, bulky consumables, such as rags and toilet paper, which must be replenished often because of shipboard space constraints.

Automated Ships-These ships are equipped with an electronic digital computer (EDC) system, such as the Univac 1500, for processing supply and accounting documents and records.

Nonautomated Ships-These ships have no EDC equipment. Ships having only keypunch facilities are considered nonautomated.

The following is a list of forms required for inventory management of general stores on nonautomated ships. NAVSUP P-485 gives detailed instructions on preparing the forms; however, a few of them are discussed in this chapter.

Any item that has had a frequency of demand of two or more demands within the past 6 months or has a predictable demand frequency of two or more demands based on deployed or seasonal usage is designated an SIM item. Any item that does not meet the demand frequency for SIM items is designated as non-SIM. Any consumable item that meets the frequency of demand criteria for an SIM item but is not stocked by the supply department (usually because of space limitation) is designated as an SIM-DTO item. Inventory management of repair parts and consumables designated as SIM items requires:

• Close and continuing attention
• Quarterly stock status review
• Semiannual inventory
• Verification or update of pertinent management data in stock records upon each receipt of a new NMDL
• Stock replenishment based on demand, with the use of high and low limits
• Collective storage in centrally located storerooms except for items that, because of their physical characteristics, cannot be properly stored in such locations
• Separate file of stock records

  Inventory management of non-SIM repair parts and consumables requires:

• Close attention only upon receipt and issue of material
• Inventory of the remaining balance of an item after each issue
• Reference to NMDL for verification of pertinent management data only when an item is requisitioned
• Stock replenishment on a one-for-one basis except when otherwise prescribed by TYCOM or when excess stock is on hand
• Stock records filed separate from SIM stock records

Physical Inventory

Physical inventory is a prerequisite to efficient inventory control. The primary objective of a physical inventory is to ensure that the inventory balances as reflected in stock or custody records agree with the actual physical quantities on hand.

Several different types of inventories are conducted, depending upon the type of material involved and type of information needed.

1. Bulkhead-to-Bulkhead Inventory

   A bulkhead-to-bulkhead inventory is a physical count of all stock material within the ship or within a specific storeroom. This inventory of the ship's entire stock of repair parts usually is taken during a SOAP. A bulkhead-to-bulkhead inventory of a specific storeroom is taken when a random sampling inventory of that storeroom fails to meet the inventory accuracy rate of 90 percent when directed by TYCOM as a result of a supply management inspection (SMI). It is also taken when directed by the commanding officer or when circumstances clearly indicate that it is essential to effective inventory control.

2. Specific Commodity Inventory

   The specific commodity inventory is a physical count of all items under the same cognizance symbol, FSC, or that support the same operational function, such as boat spares, electron tubes, boiler tubes, or fire brick. This inventory is taken under the same conditions as a bulkhead-to-bulkhead inventory; however, prior knowledge of specific stock numbers and item location is required to conduct a specific commodity inventory.

3. Special Material Inventory

   A special material inventory requires the physical count of all items that, because of their physical characteristics, costs, mission essentiality, and criticality, are specifically designated for separate identification and inventory control. Special material inventories include, but are not limited to, stocked items designated as classified or hazardous. Special material inventories also include controlled equipage and presentation silver. Physical inventory of such material is required on a scheduled basis as prescribed in NAVSUP P-485.

   Classified Items-Inventory classified items annually and upon each change of custodial responsibility.

   Hazardous Items-Hazardous items are toxic, corrosive, oxidizing, flammable, radioactive, or other materials that pose a potential hazard to life or property. Inventory hazardous items identified in stock records by hazard item codes H, F, M, or R annually. It is also mandatory to inspect each unit of each item for its condition, correct identification, and proper labeling.

   Security Items-You must inventory security-type medical supplies, such as narcotics, precious metals, alcohol, and alcoholic beverages (code R in the notes column of the Federal Supply Catalog C-65-IL sections). This also comprises inventorying those items identified in stock records by locally assigned management codes or appropriate notations monthly and upon each change of custodial responsibility. Other controlled medical items, such as barbiturates, antibiotics, and other drugs or substances coded "C," are inventoried monthly.

   Other Material-Other stock items that may be specifically designated by the inventory manager, fleet commander, TYCOM, or the commanding officer for special inventory control are inventoried according to the frequency criteria established by the directing authority.

   Shelf-Life Items-Deteriorative shelf- life items, other than those included in the items just discussed, do not require a periodic inventory. Screen these items often to ensure their timely use or transfer before the shelf-life expiration dates.

4. Spot Inventory

   A spot inventory is an unscheduled physical inventory that is taken to verify the existence or nonexistence of a specific stock item. It is usually taken when the verified stock record for a requested item shows an on-hand balance, and the issue request indicates that the item is NIS. A spot inventory is also taken to determine the on-hand quantity of a particular item when it is requested by the commanding officer, a fleet commander, TYCOM, a cognizant inventory manager, or other competent authority. For example, the commanding officer may request the physical inventory of any item that he or she considers highly essential to prospective operations. Also, a fleet commander or TYCOM may need to have total asset visibility of a particular critical item or an inventory, disposition, and report of certain items that, after distribution within the supply system, are found to be defective.

5. Velocity Inventory

   A velocity inventory is based on the premise that inaccuracies of stock record balances for any given items increase proportionately with issue frequency; therefore, concentrate most of the physical inventory effort on frequently demanded items. A velocity inventory requires a periodic physical count of all stock items that experience frequent demands (fast movers) and a physical count of items that experience infrequent or no demands (slow movers). Periodic inventories of SIM items and postissue inventories of non-SIM items are examples of velocity inventories.

   SIM Material-Inventory SIM material in nonautomated ships semiannually, and complete the inventory within 2 weeks after commencement.

   Non-SIM Material-Except for items designated as special material, or unless warranted under conditions previously discussed, do not take a complete inventory of non-SIM material. However, to provide sufficient stock record card accuracy for effective inventory control, inventory the balance of each item after each issue.

6. Random Sampling Inventory

   The random sampling inventory is considered part of the annual scheduled inventory program. It is used only by authorized ships such as automated special accounting class 207 ships and automated aircraft carriers (except for aeronautical material). This inventory is a measure of the stock record accuracy for material based on the physical count of a specified number of randomly selected items within the segment. NAVSUP P-485 explains how to conduct a random sampling inventory.

The supply officer provides advisory assistance for inventories of material in the custody of departments other than the supply department. The person in charge of the storeroom is usually responsible for inventorying material in it.

Before the inventory is taken, collect all updated receipt and expenditure documents concerning the material and post them on stock record cards. The person in charge of the storeroom should inspect the spaces and rearrange the stock to ensure that:

• Loose articles are repackaged in standard bulk lots where possible.
• All stock is labeled or otherwise clearly identified.
• Cartons and other containers are stowed with labels and other identifying information facing out where possible.
• Containers with broken seals are checked to ensure that a full count of material is present and the container is prominently marked to show the actual count and the date of the count.

At least 1 week before the inventory, the supply officer usually requests the executive officer to include an official notice in the Plan of the Day, indicating that a particular storeroom or certain stock will be inventoried. This notice lists the dates and restrictions that must be observed during the inventory period.

Since inventories are conducted to ensure that stock on hand or in the pipeline agrees with information on the stock records, you can see the importance of a complete and accurate inventory. To reduce errors, you must:

• Work quietly and without haste.
• Write legibly.
• Count correctly.
• Use the correct unit of issue in counting.

1. Count Documents

   Documents authorized for conducting inventory counts of stock material include NAVSUP 1075 (whether or not maintained as locator records), EAM cards, and machine or manually prepared listings. Stock Records Cards Afloat, NAVSUP 1114, even when maintained in storerooms, are not to be used as inventory count documents. Inventory count documents usually contain the following information for each item:

   • Complete stock number or part number
   • Brief item description (optional)
   • Unit of issue
   • Location of items (except for bulkhead- to-bulkhead inventory of a specific storeroom or other storage area)
2. Count Procedures

   A complete and correct item count is basic to conducting a physical inventory. Inventory personnel must determine the total quantity of each item as accurately as possible during the initial count. Use inventory aids such as tape measures, scales, equivalency tables, and other measuring devices when available. You may open sealed containers when necessary for item identification or quantity verification. Do not break the seals on preservation packaged items without approval of the supply officer. Reseal all opened containers after the contents have been identified and counted. Each container must be dated and initialed by the person who verified its contents.

   Whether personnel equipped with appropriate count documents and aids are to inventory all or just certain items in a specific area, they must proceed systematically from location to location in predetermined sequence. Inventory personnel must ensure that:

   • Each fragile or potentially hazardous item is conspicuously marked with a warning label.
   • Each item is legibly identified by an appropriate stock number or part number.
   • Each unit of an item is inspected for its condition, and any quantity apparently unfit for issue or in need of represervation is recorded as such.
   • Each item is carefully counted, weighed, or measured, and the quantity inventoried is legibly recorded in the count document. (If the same item is stored in multiple locations, record the quantity in each.)
   • Quantities and units of issue recorded in count documents are compatible (e.g., if 100 bearings are counted, record 50 not 100 if the unit of issue is PR).
   • A tag, label, or card, annotated with the inventory quantity and date, is attached to each reel or container from which an item is issued in a unit of measure, such as foot, pound, and gallon, so future issues of such items can be tabulated to reflect the remaining quantity of each reel or in each container.
   • Actual location of each item is either checked or entered in the count document.
   • Consolidated storage of items with multiple locations is achieved when possible.
   • If directed by the supply officer, lockers, cabinets, or drawers used for storage of infrequently demanded items are sealed after a complete inventory of their contents has been verified.

   Inventory personnel must be aware of all receipts and expenditures of items included in the segment being inventoried. They must also ensure that documents applicable to such receipts and expenditures are conspicuously stamped or annotated "BEFORE INVENTORY" or "AFTER INVENTORY," as appropriate.

3. Review of Count Documents

   Promptly upon completing the physical inventory, and before matching inventoried quantities with applicable stock record balances, personnel must review inventory count documents to ensure that:

   • All items scheduled for inventory either have been counted or have been verified as nonexistent.
   • Quantities counted are legibly recorded and compatible with related units of issue.
   • All prerecorded locations applicable to the inventory segment have been checked and, for each location, a quantity or 0 is entered. (Inventory personnel must not delete locations prerecorded in count documents even though such locations may be incorrect.)
   • Added items are adequately identified and legibly recorded.
   • Applicable remarks are legibly entered and explicitly stated.
   • Items are documented in NIIN sequence.
   • Count documents are dated and initialed.

Upon completing the physical count and reviewing the count documents, the next step in the inventory process is to compare the count documents with the stock records. This is done to determine if differences exist between the physical count and the amount recorded on stock records.

Upon receipt of inventory count documents from inventory personnel, the medical supply person must ensure that:

• Items are documented in proper sequence.
• Multiple cards or entries applicable to the same item are grouped and totaled by NIIN.
• All manual entries are legible.
• All annotated remarks are clearly understood.
• Any obvious omissions or inconsistencies are reconciled immediately by the responsible inventory personnel.

When the count documents are correct and complete, compare them, item by item, with the applicable stock records to determine whether differences exist. If no differences exist, post the matched count cards or matched items in the inventory listing to the applicable stock records. Enter the Julian date of the inventory and the notation "INV" in the REQUISITIONS OUTSTANDING column of NAVSUP 1114, and enter the inventory quantity (which should be the same as the existing stock record) in the ON-HAND CC. See figure 12-16. If differences exist in on-hand quantities, locations, or other stock record data, reconcile such differences by the procedures outlined in NAVSUP P-485.

Stock Record Cards

Without stock records, it would be impossible to maintain adequate stocks of material necessary for the operation of the medical department of a ship. Procurement of stock must be based on the information contained in the stock record cards. Inventory control comprises procurement, stocking, issuing, and accounting for material.

The Stock Record Cards Afloat, NAVSUP 1114m (Manual), are the primary records of inventory control. Maintain a stock record card for each stocked repair part or consumable and for each SIM-DTO item.

NAVSUP 11 14m, which is shown in figure 12-17, is an IBM type of stock record card in which significant management data elements can be keypunched to provide the capabilities of nonautomatic data processing equipment.

NAVSUP 1114 (Manual), which is illustrated in figure 12-18, is identical to the NAVSUP 1114m in design. NAVSUP 1114 (Manual) is a continuous-feed stock record form that eases the typing of the top and bottom lines of new stock record cards that must be prepared when the keypunched and interpreted NAVSUP 11 14m cards are filled. This form is also useful when new items are added to shipboard stock between supply overhauls. Retain all stock records until they are replaced upon completion of the next supply overhaul.

The preprinted captions appearing on the top line and at the bottom of NAVSUP 1114m are identical and most are familiar and self-explanatory. Additional information on some of the top and second line data elements may help you understand the captions and the source and use of the data shown.

M/C-The material control code is a single alphabetic character assigned by the inventory manager to segregate items into more manageable groupings (fast, medium, or slow movers) or to relate to field activities special reporting and control requirements. This is a first line entry and is mandatory for repairable items.

APL/AEL NO-Allowance Parts List/ Allowance Equipage List number for repair parts and equipment-related consumables. If the Integrated Stock List (ISL) indicates that multiple APL or AEL numbers are applicable to the same item, enter the letter "M" instead of an APL/AEL No. Enter "GEN USE" or "GUCL" for nonequipment-related consumables.

Location-Each location in which the item is stored. For non-SIM items, each location as well as the quantity in each location is required; however, avoid multiple locations of non-SIM items when possible. Leave it blank for SIM-DTO items.

HL, LL, SL-High limit, low limit, and safety level quantities are computed according to NAVSUP P-485. This block is used for SIM items only. Enter "SIM DTO" for SIM-DTO items. Leave it blank for non-SIM-DTO items.

A/L QTY-Allowance list quantity. Leave it blank for nonallowance and SIM-DTO items.

AT-Allowance-type code. Transfer the SOAP-assigned AT code forward to the succeeding record when a SOAP-prepared stock record is filled. When the ship prepares a stock record for a new stock item added between SOAPs, enter the appropriate AT code from the following list:

E/R/C-See below.

BEG. MO. DEM.-The beginning date of the demand period (usually the SOAP completion date that is pretyped on SOAP-prepared stock records. The original card received upon completion of the supply overhaul shows the date (month and year of the current supply overhaul) of the current demand period. When the original card is filled and a new card is prepared, bring this date forward with the demand quantity and frequency of demand recorded on the original card. When a card is prepared for a new item between SOAPs, the demand date is the date of the initial requisition.

DQBF-Demand quantity brought forward. This total is brought forward from a filled stock record onto a new stock record.

DFBF-Demand frequency brought forward. This total is brought forward from a filled stock record onto a new stock record.

URG-A checkmark or X if the item is listed in the Consolidated Afloat Requisitioning Guide Overseas (CARGO), indicating that the item is available in the deployed area from ships of the underway replenishment group.

MRT-A checkmark or X if the item is listed in the SERVMART shopping list of the local supply support activity.

EOI-A checkmark or X if the item is designated as an economic order item.

CI-A checkmark or X if the item is designated as a critical item.

MEC-Military essentiality code, as indicated in the COSAL SNSL for repair parts and equipment-related consumables.

HIC-Hazardous item code (H, F, M, or R) if the item is listed in the Consolidated Hazardous Item List (CHIL) or any other special material content (SMC) code that may be used for the item in the COSAL SNSL or Special Category Item List (SCIL).

SCC-Security classification code, if applicable.

SLC-Shelf-life code, if applicable.

PEB-A checkmark or X if item is designated as a PEB item.

Requisitions Outstanding-The Julian date, serial number, and quantity applicable to each procurement document. Use the lowest part of the column, when applicable, for entry of NSN of a superseded, superseding, or substitute item.

When the original card is filled, prepare a new card, duplicating the stock item information except for usage data. Enter the beginning date on the new card. Bring forward the demand qantity and frequency of demand totals from the old card onto the new card. also, transfer any requisitions still outstanding. Retain the old card until the next supply overhaul arrives, and file it according to local practice.

Post stock record cards daily as you receive the receipt and issue documents. When you are posting the cards, place SIM items before non-SIM items.

Compare the following data elements on receipt documents with those on the stock record cards:

• Cognizance symbols
• NSN
• Unit of issue
• Unit price
• Storage location
• Quantity received with quantity requisitioned

Stock Record Entries-Data in Agreement-If the data elements on the receipt documents and the stock record cards are in agreement, enter the Julian date of the receipt and the serial number of the related requisition in the REQUISITIONS OUTSTANDING column. Enter the receipt quantity in the RECEIPTS column and increase the balance in the ON HAND column by the quantity received. Then draw a single line through applicable requisition data in the REQUISITIONS OUTSTANDING column. See figure 12-19.

If an outstanding requisition for NIS-DTO material is indicated in the REQUISITIONS OUTSTANDING column, remove the original and green copy of NAVSUP 1250 from the NIS/ NC file or MOF, and forward it to the storeroom for immediate issue. Line through the notation "NIS" that applies to the outstanding requisition for NIS-DTO material, and post the issue, when completed, to the stock record in the normal manner as shown in figure 12-20. When the material originally ordered for DTO is received, send the material to the storeroom, and post the receipt document to the stock record as a receipt of stock material.

Stock Record Entries-Data Difference-Reconcile any differences determined from a comparison of receipt documents and stock record data as explained in the following paragraphs.

• Cognizance Symbol-When the cognizance symbol in the receipt document differs from that in the stock record, change the cognizance symbol in the stock record to agree with that in the receipt document by drawing a single line through the old cognizance symbol and entering the new cognizance symbol directly above as shown here. When you receive material on DD 1348-1, enter the cognizance symbol in data block R.

  

  

• New or Superseding NSN-When an item is received under a new or superseding NSN as reflected in the receipt document, prepare a new stock record that shows the same management data (e.g., allowance and HL/LL/SL) as the superseded stock record card. Reference the superseded NSN in the lowest block of the REQUISITIONS OUTSTANDING column as shown in figure 12-21. Then close out the stock record for the superseded item by lining through the allowance quantity and the HL/LL/SL quantitites of SIM items. Line through the requisition data in the REQUISITIONS OUTSTANDING column, and reference the superseding NSN and authority in the lowest block of the colum as shown in figure 12-22.

  Do not carry the on-hand balance in the stock record for the superseded NSN forward to the new stock record for the superseding NSN. Now you will not have to remark material already in stock when an item is received under a new or superseding NSN. However, review the computation of demand and frequency of demand of both stock records simultaneously to determine replenishment quantities. When a replenishment is required, requisition the new or superseding NSN.

• Substitute Item-When a substitute item is received, prepare a new stock record card. Record the cognizance symbol, NSN, description, unit of issue, unit price, storage location, and a notation "ITEM IS SUBSTITUTE FOR NSN _______ " as shown in figure 12-23. Do not show an allowed quantity. Notate "SUBSTITUTE ITEM IS NSN________" in the lowest block of the REQUISITIONS OUTSTANDING column on the stock record for the primary item.

  To determine replenishment quantities, review the computation of demand and frequency of demand of both stock records simultaneously.

• Unit of Issue-When the unit of issue in the receipt document is different from that in the stock record, change the unit of issue in the stock record accordingly. In addition, you may be required to adjust the allowance quantity, HL/LL/SL quantities (if a SIM item), and the on-hand balance in the stock record. If adjustment of the on-hand balance is required, enter the Julian date of the adjustment, the notation "U/I CHANGE," and the adjusted on-hand quantity before posting the receipt as illustrated in figure 12-24.
• Unit Price-When the unit price in the receipt document differs, draw a single line through the old unit price, and enter the new unit price directly above (fig 12-24).
• Quantity-When the total quantity requisitioned is not received and a suffix code is indicated in column 44 of the receipt document, post the quantity received to the stock record. Line out the requisitioned quantity in the REQUISITIONS OUTSTANDING column, and enter the quantity remaining outstanding next to the deleted quantity as illustrated in figure 12-25. However, if there is no suffix code indicated in column 44 of the receipt document, consider the requisition as being complete. If the unfurnished balance is still required, prepare a NAVSUP 1250 or 1250-1 to begin a new requisition.

  A receipt overage exists if the receipt quantity is more than that requisitioned or invoiced. When a receipt overage exceeds $25 per line item, or if it involves controlled material (regardless of price), report the excess quantity as a receipt discrepancy on SF 364, Report of Item Discrepancy (ROID), under NAVSUP P-485. Only post the requisitioned quantity to the stock record as a receipt. The excess quantity, with a copy of the ROID attached, is set aside pending disposition instructions from the action addressee of the ROID. When a receipt overage does not exceed $25 or involve controlled material, store and post the total quantity received to the stock record. However, if retention of the excess quantity is not desired, you have to return it to the issuing activity or transfer it to an ashore supply activity under the procedures in NAVSUP P-485. In this case, only post the retained quantity to the stock record.

  

  A receipt shortage exists if the receipt quantity is less than that invoiced. When a receipt shortage exceeds $25 per line item, or if it involves controlled material (regardless of price), post the actual receipt quantity to the stock record. Report the deficient quantity as a receipt discrepancy. Keep a copy of ROID and the applicable receipt document in MOF until you receive replacement material or a credit invoice. If the reply to ROID is negative, prepare a NAVSUP 1250 or 1250-1 to report the receipt shortage as consumption under the Afloat Consumption, Cost, and Effectiveness Surveillance System (ACCESS) as shown in figure 12-26. When a receipt shortage does not exceed $25, or if the involved controlled material cannot be readily reconciled with the issuing activity, post the actual quantity received to the stock record. Then prepare NAVSUP 1250 or 1250-1 as previously discussed and illustrated.

• Storage Location-When the receipted copy from the storeroom indicates the material was stored in a different location from that indicated in the stock record, line through the location shown in the record as indicated here.

  

  Enter the new location immediately in block 10. When the receipted copy indicates that an item is stored in multiple locations, enter them in the stock record as shown in figure 12-27.

  After receipts have been posted to the stock records, forward the receipt documents to the OPTAR records custodian who enters the material receipt date in the Requisition/OPTAR Log as directed in the Financial Management of Resources, NAVSO P-3013. Pass the receipt document to the requisitioner for attachment to the hardback copy of the related requisition from MOF. Place both the receipt document and the hardback copy of the requisition in the MCF.

Posting of SIM-DTO Material- When SIM-DTO material is received and turned over to custodial departments, post the receipt documents and related issue request simultaneously to the stock records maintained for SIM-DTO material. See the next illustration. The using and custodial departments initiate replenishment requisitions.

• Processing Completed DTO Material Receipt and Issue Documents-After the issue date and signature of the recipient of DTO material have been entered in a receipt document, the following actions are required:
  • Remove the related issue request and requisition documents from the NIS/NC file or MOF. In the original and green copy of the NAVSUP 1250 or the green copy of the NAVSUP 1250-1, enter the material issue date in data block 7. If required, change the quantity in data block 25 to that actually received.
  • Determine whether a stock record is maintained for the item, post the receipt, and issue simultaneously.
  • Put the original of the NAVSUP 1250 in the consumption file, and place the green copy of the NAVSUP 1250 or 1250-1 in the Maintenance Data Collection System (MDCS)/ ACCESS file.
  • Post the material issue date indicated in the receipt document to the Requisition/OPTAR log as directed by NAVSUP P-3013.
  • Attach the hardback copy of the related requisition from the MOF to the receipt document.
  • If the item received is controlled equipage, post the receipt to the Controlled Equipage Custody Record, NAVSUP 306. If the item is "Signature Required," obtain the department head's signature for the increased on-hand balance.
  • File the receipt document and the hardback copy of the related requisition in MCF.

Controlled Substances

The custodial responsibility of narcotics, alcoholic beverages, and dangerous drugs is vested in the commanding officer. An officer of the Medical Department, or in such an officer's absence, an officer designated by the commanding officer, will keep all unissued controlled substances in a separate locked compartment. Controlled substances include tranquilizers, alcoholic beverages, alcohol, hypnotics, excitants, and narcotics that require special custodial care. Medicinals are designated controlled substances by the symbol "Q" or "R" in the notes column of the Federal Supply Catalog or by the force medical officer. Bulk Custodian

The commanding officer will appoint an officer of the Medical Department or another officer that he or she designates in writing as the bulk custodian. This officer will be responsible for, and maintain custody of, all bulk controlled substances.

Access to controlled substances is limited to the bulk custodian and the senior Medical Department representative (SMDR). Only individuals whose official duties require access to such spaces will be provided the safe combinations.

The bulk custodian and the SMDR are responsible for the receipt and custody of controlled substances. Each unit must maintain a detailed record of the receipt, transfer, survey, dispensing, and expenditure of controlled substances by entering information in a loose-leaf binder. The sick call treatment log and health and dental records are examined against this record by the Controlled Substances Inventory Board. Facsimile signatures or initials on controlled substances records are prohibited. The SMDR is the custodian of the working stock and holds the combination to the working stock safe. Report losses to the nearest Drug Enforcement Agency (DEA) regional office as specified in MANMED, chapter 21, article 21-25. Dispose of deteriorated items as described in MANMED, chapter 21, article 21-26. Enter appropriate entries for losses or disposals in the Bulk Custodian's Log, or Working Stock Log (NAVMED 6710/5).

Monthly or more frequently, if necessary, the Controlled Substances Inventory Board will take an inventory of controlled substances. The commanding officer will appoint the members of the board in writing. The board will consist of three members, at least two of whom will be comissioned officers. After the board conducts the monthly inventory, it will submit a report to the commanding officer. The officer having custodial responsibility cannot be a member of the board. On small ships and installations, the SMDR may be a board member.

Destroy controlled substances in the presence of at least one member of the survey board. Remove the amount destroyed from the stock records and the controlled substances log. Destroy items in a manner that ensures total destruction and prevents subsequent use. Destruction must be done in a manner that meets federal, state, and local air and water pollution control standards.

Property Surveys

A survey is the procedure required when Navy property and Defense Logistics Agency material in Navy custody is lost, damaged, or destroyed except in incoming shipments. Its purpose is to determine responsibility for lost, damaged or destroyed property and to fix the actual loss to the government. To make a true determination, the facts surrounding the loss or damage must be thoroughly surveyed in a timely manner. The following forms will be used in connection with survey procedures.

• GPLD (Government Property Lost or Damaged) Survey Certificate, DD 2090. This will be used if no personal responsibility is evident. This form will normally be prepared by the person who conducted causative research.
• Report of Survey, DD 200. This will be used if personal responsibility is evident, if the reviewing authority does not approve the DD Form 2090, or if the commanding officer or higher authority so directs. This form will be initiated by the accountable responsible person.

There is no longer an "Informal Survey or a Formal Survey." When circumstances warrant, such as when there is an indication of criminal action or gross negligence, the commanding officer or designee will appoint a Survey Officer or a Survey Board. Individuals who are accountable or responsible will not be appointed as surveying officers. A survey board may consist of two or more persons. Commissioned or warrant officers are normally appointed to survey boards. It is recognized that, because of the nature of activities or types of personnel by which manned, there may not be enough officers available to appoint to the board. If such conditions exist, qualified enlisted personnel in grades E-8 or E-9 or qualified civilian personnel GS-11 or above may be appointed to the board. In no event will the commanding officer or designee delegate authority to review surveys to the following individuals:

• The person on whose records the material being surveyed is carried.
• The person charged with custody of the material being surveyed.
• The surveying officer or members of the survey board.

For more detailed information about surveys, consult the following references: NAVSUP Manual, volumes II and IV; NAVSUP P-485, Afloat Supply Procedures; NAVSUP P-486, Food Service Management; and NAVSUP P-487, Ship's Store Afloat.

Plant Property

Plant property includes all real property either owned or accounted for by the Navy. It also includes personal property of a capital nature located in activities composing the Naval Shore Establishment or in plants of private contractors.

• Real Property-any interest in land or anything permanently attached to it, including structures, fixtures, and improvements
• Personal Property-a right or interest in anything movable or separate from real property

Plant property is divided into four classes for the purpose of management, financial and technical control, and related expenditures.

The accountability and reporting of plant property applies to all active, inactive, and standby activities of the Naval Shore Establishment. In some instances, the operating forces ashore must also account and report on plant property under their control. All classes of plant property must be inventoried every 3 years.

Planning and Acquiring Medical and Dental Investment Equipment

Each year the Navy spends considerable sums in purchasing new equipment. To ensure that needed items are obtained expeditiously requires long-range planning. The equipment you receive during your tour of duty may have been ordered by your predecessor, and what you order may not arrive until your replacement is on board. BUMEDINST 4235.7 contains the necessary information to determine the life expectancy of various types of medical and dental equipment. Figure 12-28 is an example of the form used to submit and justify your requirements.

References:

1. NAVEDTRA 10269-K, Storekeeper 3 & 2
2. NAVEDTRA 10270-G, Storekeeper 1 & C
3. NAVSUPNOTE 7200, Interim Change to NAVSUP Manual Volume II, Section VI- Surveys and Discrepancies in Incoming Shipments
4. NAVSUP P-437, Operating Procedures Manual for MILSTRIP/MILSTRAP
5. NAVSUP P-485, Afloat Supply Procedures
6. NAVAL SUPPL Y SYSTEMS COMMAND MANUAL
7. NAVSO P-100, Navy Comptroller Manual, Volume 7

Naval Education and Training Command: Hospital Corpsman 1 & C: August 1986

Approved for public release; Distribution is unlimited.

The listing of any non-Federal product in this CD is not an endorsement of the product itself, but simply an acknowledgement of the source. 

Operational Medicine 2001

Health Care in Military Settings

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