MATERIEL DISCREPANCIES - COMMERCIAL SOURCES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-05054A000100100049-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 14, 2016
• Document Release Date: September 17, 2002
• Sequence Number: 49
• Publication Date: April 11, 1967
• Content Type: REGULATION

Approved For Release 2003/03/10 : CIA-RDP78-05054A000100100049-4
S -E-C -R-E-T
INSTRUCTION NO. Li 4+5-6
Li 45-6 LOGISTICS
Revised 11 April 1967
1. POLICY
a. All discrepancies resulting from orders placed on commercial sources
of supply shall be considered consequential. However, in the interest
of economy and to facilitate prompt and correct payment, the term
"Acceptable Discrepancy" shall be noted on Receiving Reports when:
(1) An overshipment is valued at less than $25.00 per line item and
is received with the basic shipment.
(2) The requisitioning office accepts an overage valued in excess of
. 00 per line item or approves the cancellation of any portion
of a requisition where there is a shortage in the delivery of
materiel ordered in which case the Agency will pay the vendor
only for materiel actually received.
(3) The requisitioning office accepts materiel substituted by the
vendor for items originally ordered.
b. 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.
c. Amended purchase instruments shall be provided the Office of Finance
when acceptable discrepancies are not covered within the terms of the
original purchase instrument except that amended purchase instruments
will not be provided when an acceptable overage is $25.00 or less per
line item.
GROUP I
Excluded from automatic
downgrading, and
declassification
Approved For Release 2003/03/10 : CIA-RDP78-05054A000100100049-4
 Approved For Release 2003/03/10 : CIA-RDP78-05054A000100100049-4
S-E-C-R-E-T
INSTRUCTION NO. Li 45-6
Li 15-6 LOGISTICS
Revised 11 April 1967
(PART I)
2. RESPONSIBILITIES
a. Supply Division (OL/SD) shall:
(1)
Record discrepancies and reason(s) therefor. In instances of
obvious damage, loss in transit, or damage discovered prior to
acceptance, immediately notify the carrier, note details such
as the condition, the probable cause and whether the carrier?s
representative inspected the materiel, accepted or disclaimed
responsibility.
(2) Determine if items lost in transit, received short, damaged or
having latent defects are to be replaced or cancelled.
(3)
Determine if overshipments and erroneous items are acceptable
to the originating office or for acceptance in the Agency
stock system. ,
(4) Resolve discrepancies involving classified and unclassified
orders and contracts placed by Procurement Division/Procurement
and Contract Branch/General Purchase Section (OL/PD/P&CB/GPS).
Discrepancies which cannot be resolved shall be referred to the
Procurement Division (OL/PD).
(5).
Determine if a formal claim is to be submitted or internal
adjustments are to be effected when latent discrepancies are
disclosed. Such decisions will be based on the findings of
the receiving activity; see paragraph 3.d. below. .
(6) Advise receiving activities of disposition actions to be taken
for discrepant deliveries per Paragraph above and when
materiel is to be returned,
for classa. e orders an
re urns p ress for unclassified orders and contracts.
(7) Provide OL/PD with an original and green copy of Discrepancy
Report (Form-1583) in connection with paragraphs (1), (2) and
(3) immediately above.
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 Approved For Release 2003/03/18_: CefDP78-05054A000100100049-4
INSTRUCTION NO. Li 4+5-6
LI,15-6 LOGISTICS
Revised 11 April 1967
(PART I)
~~)/' m) ~, ,eke tlpc' ~~d~C rL7~L~/~/L
b. Logistics Services Division (OL/LSD) and Printing Services Division
(OL/PSD) shall follow the procedures for receiving activities (para-
graph 3 below) when discrepant deliveries are in connection with
materiel delivered directly to their receiving area as a result of
a commercial contract or purchase order initiated by OL/PD.
(1) Take necessary action in connection with Discrepancy Reports
(Form 1583) involving commercial procurement orders and contracts
-ezgpt---ae-- 1icated ih paragraph 2.a. (4) abeve.
(2) Advise vendors of action desired via Form 1709 or 2616 as
appropriate. Furnish Office of Finance copies of formal claims
against vendors.
(3) Furnish Receiving Activities through OL/SD/CCDB the original
copy of Form 1583 and a copy of Form 1709 or 2616 indicating
action taken and to be taken.
(4) Furnish Receiving Activities completed Shipping Documents (Form
291) for the return of unacceptable materiel delivered on classi-
fied orders and the return shipping address for unacceptable
materiel delivered on unclassified orders.
(5) Follow-up when vendors are delinquent in replacing and/or
picking up unacceptable materiel. Adiisc V111der, 1Ji4' rcjeef d n4tn: ( wi/l
be. rc urnid of ve,,4r.'t exLLpei+se :f ,HStrvct~o-~t are i 4 received, 30
~/ ys
3. PROCEDURES r ~~ ,, y rGQ7lon o~ rep! ec 1~idn,
(1) Receiving Activities shall prepare Receiving Reports for all
materiel received from vendors. Items shall be inspected for
eompliahce with the procurement instrument. Discrepancies
will be noted by the or the technical inspector 25X1
as appropriate. The Receiving Report shall be annotated
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Approved For Release 2003/03/10 : CIA-RDP78-05054A000100100049-4
 Approved For Release 2003/03/10 : CIA-RDP78-05054A000100100049-4
S-E-C-R-E-T
INSTRUCTION NO. Li 45-6
LI 45-6 LOGISTICS
Revised 11 April 1967
(PART I)
(2)
"DISCREPANCY" when the materiel is not as ordered by reason of
quantity, quality, type or condition. The nature of the discrep-
cncy by item number(s) shall be noted on the Receiving Report.
Replacement or short items will be requested or cancelled by
the appropriate procurement activity when so desired by the
originating office.
(3) Office of Logistics will provide the Office of Finance copies
of formal claims for losses and damages for the purpose of
establishing accounts receivable.
b. Preparation and Processing of Receiving Discrepancy Reports
(1) Receiving Activities shall, on disclosure of a discrepancy in
connection with an Office of Logistics procurement action, pre-
pare a Receiving Discrepancy Report (Form 1583), attach pertinent
documentation and forward to OL/SD.
(2) Receiving Activities shall initiate action for the return of
discrepant materiel to vendors in accordance with Shipping
Documents, Forms 291, provided or shall prepare the Forms
291 and effect the return in accordance with instructions
indicated on the original copy of Form 1583 forwarded by OL/SD.
(3) Receiving Activities shall submit an amended Receiving Report
after an initial receiving report has been processed when
advised that items found over or erroneous are acceptable, or
that items damaged or short will not be required.
c. Loss or Damage in Transit
(1)
Carriers are responsible for loss and damage of property in
transit. Therefore it is essential that the number of con-
tainers received conform to those listed on the delivery
ticket. Each container must be examined for exterior damage.
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S-E-C-R-E-T
Approved For Release 2003/03/10 : CIA-RDP78-05054A000100100049-4
 Approved For Release 2003/03/10 : CIA-RDP78-05054A000100100049-4
S -E -C -R-E -T
INSTRUCTION NO. Li 45_6
Li 45-6 LOGISTICS
Revised 11 April 1967
(PART I )
Damages and losses, if any, shall be noted on the delivery
ticket and the carrier's representative be given the oppor-
tunity to count and/or inspect the cargo prior to his depar-
ture from the receiving dock. Containers, dunnage and
materiel shall be held intact until the matter is resolved.
(2) Shortages and damages traceable to a carrier which cannot be
.Informally resolved by the Receiving Activity shall be reported
to OL/pD. Such reports must be completely documented so as to
validate-a formal claim against the carrier if necessary.
d. Disclosure of Latent (Concealedhort, Damaged or Erroneous
Materiel
When discrepancies involving items short, damaged, defective or
erroneous are discovered after receiving has been accomplished,
Receiving Activities shall:
(1) Utilize the services of the and/or
the technical inspector; physically count all like items and
confirm issues to determine whether the discrepancy is
attributable to the carrier, vendor or a recording error.
(2) Prepare a Report of Inventory Adjustment (RIA), Form 390,
citing the circumstances of the discrepancy and indicating
responsibility per paragraph (1) above.
(3)
(4)
Process the RIA utilizing the applicable FPA transaction code.
For discrepancies attributable to the carrier or vendor,
prepare a Receiving Discrepancy Report (Form 1583), attach
a copy of the RIA and forward for action; see paragraph 2.a.(5)
above.
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Approved For Release 2003/03/10 : CIA-RDP78-05054A000100100049-4
 Approved For Release 2003/03/10 : CIA-RDP78-05054A000100100049-4
S-E-C-R-E-T
INSTRUCTION-NO. Li 45-6,
Li 45-6 LOGISTICS
Revised 11 April 1967
(PART I)
e. Disclosure of Discrepancies - Transhipments
Receiving Activities accomplishing the initial receipt of materiel
(see paragi-aph 3.a.(1)) shall take action in reporting discrepancies.
When containers are reconsigned without being opened and inspected
at the first destination, the ultimate consignee-shall furnish the
first consignee complete and detailed information applicable to the
types of discrepancies noted herein.
f. Consideration shall be given to the security classification of
materiel and the method of handling claims in every instance
(paragraphs 3.c. and d. above).
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Approved For Release 2003/03/10 : CIA-RDP78-05054A000100100049-4