Document Type: 
Document Number (FOIA) /ESDN (CREST): 
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Document Creation Date: 
December 12, 2016
Document Release Date: 
July 14, 2000
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Publication Date: 
May 1, 1975
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PDF icon CIA-RDP78-05054A000100100047-6.pdf623.66 KB
Approved For Release 2001/11/01 CIA-RDP78-05054A000100100047-6 BEST COPY Available Approved For Release 2001/11/01 : CIA-RDP78-05054A000100100047-6 i'm;i. G IVFI p,ENTIAL LOGISTICS Appproved For Release 2001/11/01 : CIA-RDP78-05054A0001c*. 6' ""' Receiving Discrepancy Policies and Procedures 3. GENE R'.AL a.. struction establishes the Office of Logistics (OL) concept of consequential and inconsequential discrepancies arising fro-.-n overages, shortages, damages, technical rejections, urc.?;~.eptable substitutions, losses in transit, and the dis- c rosure of latent defects in connection with materiel received from commercial and U.S. Government sources. It prescribes the procedures and responsibilities relative to reporting and resolving such discrepancies. b. Discrepancy standards set forth herein are established to provide r0echanisms which Will i allow for: (') The acceptance of overages; (?) The cancellation of any portion of a requisition left ,open the to a minor receiving discrepancy; U) The rco;'dering of snort, erroneous or damaged materiel wren recuired. ompli~nce ~; h the requirements of Office of Fina C(:,OF'L ThiisXnstruw tion 3p7i i s to .:::1 i OL-designated receiving point , Printing Sf, ''l',t; r a :'ad '"d ''I i' o~1,:1Log . t cs :^ ;1`vi es D ivision,oiNational Photographic pr' at i 1'i en` e;,, 0-,`!ice o" El i rat, etc.), hereinafter n ti%.ics' where materiel is received hn I ons ini"ftc,,-(eA by 'CL, +4pproverdj f~-`Relea '2001/41/01:: C RDP7t8a4 ,( i4i40ddfiQ0 QQOA%-his and EL b3 2 y?'7 !niy d i crapanc, ies. `. i:'o'f ~^ ner - n f M- x' i r sir.nificrently in several respects: d nq Comm a i l < .I r erc a Procurements (incIuding those made throu J~c"o',h `~ `?t YVr.. !t (1) All discrepancias resulting from orders placed on commercial sources of supply shall be considered consequential. HO fever, in the in?re t of economy and to facilitate proript and correct payment, the term "Acceptable Dis- crepancy" shall be noted on Receiving Reports (R/Rs~ when: (c) The RO approves the cancellation of any portion of a requisition where there is a'shortage in the delivery of materiel ordered. I (d) The RD accepts materiel substituted by the vendor for items originally ordered. (2) When discrepancies occur, vendors will be paid for materiel actually received whether an overage or shortage. than $50 arriving after final shipment received,'. ' crre,ri to a the PC) accepts an overage valued in excess of $50 per line item, or one of less (or delivery) to the consigned. (b) The requisitioning office heerc-.rafter re (a) An overshipmrent is valued at less than $50 per line iteri and is received before the final shipment Approved For Release 2001/11/01 : CIA-RDP78-05054A000100100047-6 Approved For Release 2001/11/01 : CIA-RDP78-05054A000100100047-6 (,) Discrepancies attributable to a vendor will be resolved at the expense of the vendor and at the convenience of the Government. Unacceptable materiel returned at the request of the vendor will be at his expense; however, parcel post charges may be borne by the Government. if return via this channel is to Government advantage. Dis- crepancies caused by misunderstandings between a vendor and the Government must be negotiated by the/?pocurement tivity. Return shipping costs or other costs might, in this case, be borne by the Government. (4) Amended purchase instruments shall be provided ". OF when acceptable discrepancies are not covered within the terms of the original purchase instrument 7 except' l.iiut amne fueu Purchase IIIJl.r urli6i11.J wI I 1 IIV1. U4' provided when an acceptable overage is $50 or less per line item. b. Policy Regarding Procurement from U.S. Government Sources. (1) Discrepancies arising in connection with the initial receipt of materiel pursuant to orders placed with other U.S. Government agencies shall be considered inconsequential if the line item dollar value it less than $50 and consequential if more than $50 for overages and erroneous materiel, or $100 per line item for materiel technically rejected, short, damaged, defecvive, or lost in transit. Discrepancies involving shortages Approved Approved For Release 2001/11/01 : CIA-RDP78-05054A000100100047-6 (2) Inconsequential discrepancies will be accepted, and no action will be taken to obtain adjustments. from suppliers or carriers. Billings will be paid in full by OF, whether items not received are included in the billing or not. If the RO desires missing, defective, or erroneous items to vJ be replaced, Supply Division (SD)will submit a new requi- sition for the required materiel, citing the cr'"J Pro- curement (EPA) used for the original requisition, and the RO's Property Requisitioning Authority (PRA). (Note that since items not received or items rejected are not costed to the RO's PRA, the use of his PRA for reordering does riot constitute a double payment. Any loss is borne by OL's IPA.) A' though no aii,empt will be made to obtain adjustments from suppliers for inconsequential discrepancies caused by erroneous or defective materiel, per the above sub- paragraphs, the supplying agency will be advised as a matter of record to help it improve its supply system by'identifying deficiencies, (ell ?) Consequential discrepancies will require adjustment with the supplier. Credit billings will be requested for materiel not received or rejected and returned. OF will he advi::ed of any credit billings due, L (3) At the discretion of the Grief., SD" a supplier's refusal to honor a request or a credit billing may be challenged and :.ppealed to the Comptroller of the supplying activity Finance when the amounts are Approved; J e 0i0 I~ x/01 : CIA-RDP 8-05054A000100100047-6 mor,1e . Approved For Release 2001/11/01 : CIA-RDP78-05054A000100100047-6 RESPONSIBILITIES AND PROCEDURES d. Uceiving Ctiv I 'es I .'1 . ty of a discrepancy to the Approved FW_ ~!~ ~~1 I y y~.Vp..mpl~CJ A-ovedF n ,'01/1 Vqler'Clff ?OiQ;4,00P7-I ttempted to resolve a discrepancy with the carrier or vendor and/or has contacted the RO regarding the acctptabili y oo' the shipment, the R/R can now be prepared (or amended if (9 ) previously prepared), noting on the R/R the nature of any unresolved discrepancies by item number d-classi- fying each as an acceptable or a consequential discre- pancy if from a commercial source, or inconsequentt i al or consequential discrepancy if from a Government source,, Fi 1 i ng di sere -anc,y reports . Acceptable and inconsequential discrepancies require no further action (except to advise ff~.4l L: lsF."_IY7/n~Q/4!/~ the RO and,/orA of an inconsequential shortage for possible reordering). Unresolved consequential discrepancies require the filing of a formal discrepancy report :,which is forwarded to the appropriat~ Pfocurement Activity. Receiving Activities removed from the Headquarters area can report discrepancies by speed letter or cable- Latent discrepancies. When latent discrepancies are disclosed after receiving has been-accomplished, the Chief, SD/S.-In coordination with the Chief, PD/if commercial procurement- will determine whether a formal claim against a carrier or w~Ie will be Vi J or whether an internal adjustment will be made. Approved For Release 2001/11/01 : CIA-RDP78-05054A000100100047-6 7 Approved For Release 2001/11/01 : CIA-RDP78-05054A000100100047-6 (1Q) Gor~ is uenti al a_scre ancies on GSA,. `ommercial ,consequential discrepancies on a GSA commercial .procurement must be resolved before themeR ceiving ocurements. tivity ( C? or tID only) submits its receiving information to GSA (on GSA Form 300). GSA then pays the vendor for the exact materiel received, based on this Form 300, from an advance account established with them by OF (account 291.09). I~ e 1 is permitted to contact GSA commercial vendors regarding any matter. (11) Discovery of discrepancy by second consignee. When aeceiv- ing ivity performs initial receiving for shipments destined to a second consignee, and for any number of reasons the eonta-~Iners are not.opened for inspection, Per (paragraph any discrepancies discovered by the ultimate consignee will be reported to the initial ceiving,. ctivity. This tivity will then amend Its original R/R and file any necessary discrepancy reports. Approved For Release 2001/11/01 : CIA-RDP78-05054A000100100047-6 Approved For Release 2001/11/01 : CIA- 08-05954A0001 00100047-6 g;: ;, ?8 '1/,03.5 f3) ~.. Upon T'CC ipt .( i. G 7. >C C )ancy report from a y ece_a.ti ing .0:E:ti..?,vity take prom? P action to resolve the discr3pa.nncy. Provide I:T0th.7D&jW (for the accountable file and OF with a copy of any corre- spondence sent to suppliers in this effort. Keep oce,iv~ ing .c~,ivities advised of action being taken or to be tauten to resolve the discrepancy. (2) Provide OF copies of formal claims for losses and damages regarding commercial procurements for the purpose of establishing accounts receivable. (3) Provide OF with an amended purchase-instrument for commercial procurements when required pelf aragraph .4a' (+) above. (4) Request adjustment to billings from U.S. Government suppliers for consequential discrepancies. for materiel not received or for retrograde materiel (returned to suppl er)J ro s~r O w~fh copy of _ J Such correspondence: No requests will be made for billing adjustments for inconsequential discrepancies. (5) Reorder or cancel discrepant materiel as desired by theRO. (6) Advise supplying agencies of erroneous or defective shipments even when no action is requested for replacement, as in the case of do inconsequential discrepany, per ara- graph 3b(3). Approved For Release 2001/11/01 : CIA-RDP78-05054A000100100047-6 Approved For Release 2001/11/01 : CIA-RDP78-05054A000100100047-6 ADDITIONAL GUIDANCE Q4~fD will be responsible for preparing and disseminating to allr,;Receiving c tivities additional procedural guidance re- garding the filing of discrepancy reports to transfer the re- sponsibility of resolving a discrepancy to the,,Procurement ,,,Activity; regarding the disposition of overages or erroneous' materiel; and providing an unclassified working guide de- picting the specific action to be taken for every type of discrepancy. Michael J. Malanick Director of Logistics CONCURRENCE.: Director of finance Approved For Release 2001/11/01 : CIA-RDP78-05054A000100100047-6 Approved For Release 2001/11/01 : CIA-RDP78-05054A000100100047-6 Approved For Release 2001/11/01 : CIA-RDP78-0;5054A000100100047-6 ^ UNCLASSL f8ved FoEgel 1/11/01: CIA-RDP78En05WpQ0QpjqK47-6 ^ SECRET ROUTING AND RECORD SHEET SUBJECT: (Optional) Revision of LI 45-6 FROM: EXTENSION NO. Chief, Operations Support Branch 3173 1104 Ames Bldg. DATE TO: (Officer designation, room number, and DATE building) OFFICER'S COMMENTS (Number each comment to show from who RECEIVED FORWARDED INITIALS m to whom. Draw a line across column after each comment.) 1. C/SD Here is our proposed revision of 1106 Ames Bldg. LI 45-6 Receiving Discrepancy 2. Policies and Procedures. Please note that this LI requires 3, C/P&PS y the concurrence of the Director ' ,~C of Finance. OF s planning staff 1236 Ames Bldg. gave informal concurrence some 4, months ago. We have raised the breakpoint between consequential discrepancies and inconsequential 5. or acceptable discrepancies from EO/OL $25 to $50. This means the OF 1202 Ames Handbook must be changed, but we 6. believe they are willing to do it. Our rationale in raising this figure is that if $25 was a 7. practical figure in 1967 (date of present LI) then $50 is more like it today. 8. A copy of the 1967 version is attached for -ready reference. 9. 10. c + r''P 1 c 1 ~; 11. 12. 13. 14. 15. Approved For Rele s e 2001 1 1/01: I A-RDP7 - 05054A000100100047-6 3 -62 01U VJEDmONSVa L] SECRET ^ CONFIDENTIAL r-1 r1 ^ UNCLASSIFIED