AQ 5210/20 MCO 4400.150

DISTRIBUTION STATEMENT A: Approved for public release; distribution is

unlimited.

DEPARTMENT OF THE NAVY

HEADQUARTERS UNITED STATES MARINE CORPS

3000 MARINE CORPS PENTAGON

WASHINGTON, DC 20350-3000

MCO 4400.150

LPC-2

29 JAN 2014

MARINE CORPS ORDER 4400.150

From: Commandant of the Marine Corps

To: Distribution List

Subj: CONSUMER-LEVEL SUPPLY POLICY

Ref: (a) JP 1-02

(b) DoDI 4140.01

(c) DoDI 5000.64

(d) DLM 4000.25-1 W/CH 2

(e) DoD 4100.39-M

(f) DoD 4140.1-R

(g) DoD 4160.21-M

(h) DoD 4160.28, Vol 3

(i) DoDI 4160.28

(j) DoD 4500.9-R

(k) DoD 7000.14-R

(l) DoDM 5200.01, Vol 1

(m) DLM 4000.25-2 CH 2

(n) DoDM 5100.76

(o) CJCSI 3470.01H

(p) SECNAVINST 4000.37A

(q) SECNAVINST 4855.3B

(r) SECNAVINST 5030.7

(s) SECNAVINST 7320.10A

(t) SECNAV M-5210.1

(u) SECNAV M-5214.1

(v) OPNAVINST 4441.12D

(w) OPNAVINST 5510.1B

(x) OPNAVINST 5210.20

(y) OPNAVINST 5585.2C

(z) NAVSEA OP 5

(aa) NAVSEA SW020-AC-SAF-010

(ab) NAVSEA SW020-AG-SAF-010 (NOTAL)

(ac) NAVSEA SWO23-AG-WHM-010

(ad) NAVSEA SWO20-AF-HBK-010

(ae) NAVSUPINST 4200.99B

(af) NAVSUPINST P-529

(ag) JAGINST 5800.7F

(ah) BUMEDINST 5360.1C

(ai) BUMEDINST 6710.70A

(aj) DON EBUSOPSOFFINST 4200.1A

(ak) NAVMC 3500.64A

(al) NAVMC 4000.2

(am) Marine Corps Manual W/CH 1-3

(an) MCO P1020.34G W/CH 1-5

(ao) MCO 1200.17E

(ap) MCO 1533.6E

MCO 4400.150

29 JAN 2014

2

(aq) MCO P1700.27 W/CH 1

(ar) MCO 2281.1

(as) MCBul 3000_25 March 2013

(at) MCO 3000.11E

(au) MCO 3040.4

(av) MCO 3900.15B

(aw) MCO 4000.57A

(ax) MCO 4050.38D

(ay) MCO 4400.16H

(az) MCO 4400.39

(ba) MCO 4400.79

(bb) MCO P4400.82F W/CH 2

(bc) MCO P4400.151B W/CH 1-2

(bd) MCO P4400.162B W/CH 2

(be) MCO 4410.29

(bf) MCO P4450.7E W/CH 1

(bg) MCO 4450.12A

(bh) MCO 4450.13A

(bi) MCO 4450.14

(bj) MCO P4790.2C W/CH 1-2

(bk) MCO 5000.14D

(bl) MCO 5100.8

(bm) MCO 5100.29B

(bn) MCO P5102.1B W/CH 1

(bo) MCO P5215.17C

(bp) MCO 5311.1D

(bq) MCO 5530.14A

(br) MCO 5600.31A

(bs) MCO 5750.1H

(bt) MCO 6700.5A

(bu) MCO 7300.21A

(bv) MCO 7301R.65

(bw) MCO 8000.7A

(bx) MCO 8000.8

(by) MCO 8010.13

(bz) MCO 8011.5

(ca) MCO 8015.3A

(cb) MCO P8020.10B

(cc) MCO 8023.3B

(cd) MCO 8025.1E

(ce) MCO 8300.1D

(cf) MCO 8373.2E

(cg) MCO 10110.14M

(ch) MCO 10110.47A

(ci) MCO P10120.28G

(cj) MCO 10520.3

(ck) MCO 10570.1B

(cl) UM 4400-71

(cm) UM 4400-124 W/CH 1-4

Encl: (1) Consumer-Level Supply Policy

1. Situation. This release constitutes a major revision of the previous

Order which mandates that readers thoroughly familiarize themselves with the

policy contained herein. Major changes incorporated into this revision

include:

MCO 4400.150

29 JAN 2014

3

a. Restructuring and consolidation of chapters.

b. Updated references.

c. Updates to policy contained in previous version.

d. New/expanded information on:

(1) Legal foundation.

(2) Consumer Level Supply Activity roles and responsibilities.

(3) Delegation of Authority and Succession to Command.

(4) Allowance Item Information.

(5) Allowance Item Management.

(6) Command Adjustment Management.

(7) Remain Behind Equipment.

(8) Balance Record Transactions.

(9) Serialized Item Management.

(10) Demand Supported Items.

(11) General Equipment (Garrison Property).

(12) Local Purchases of Allowance Items.

(13) Financial Management.

(14) Requisitioning.

(15) Materiel and Services Support.

(16) Department of Defense Activity Address Code (DoDAAC) Management.

(17) Supply Discrepancy Reports.

(18) Ammunition & Explosives (A&E) Accounting.

(19) Investigations.

(20) Temporary Loans.

2. Cancellations. MCO P4400.150E w/Erratum Ch 1-2.

3. Mission. To publish policy and procedures for Consumer-Level Supply per

references (a) through (cm).

4. Execution

MCO 4400.150

29 JAN 2014

4

a. Commander’s Intent and Concept of Operations

(1) Commander’s Intent. The purpose of this revised Consumer-Level

Supply Policy Manual is to provide updated guidance and policy that will lead

to improved and standardized execution of consumer-level supply operations

throughout the enterprise in both garrison and deployed environments. This

updated policy will also ensure that Marine Corps processes and procedures

are in compliance with Department of Defense (DoD) regulations for supply and

financial management.

(2) Concept of Operations

(a) This Order directs the execution of Consumer-Level Supply

operations at the Using Unit level, and is intended to govern supply

operations at this level of inventory within the Marine Corps Ground Supply

Chain.

(b) Adherence to the provisions established in this Order shall

ensure accurate accountability of government property and promote more

effective logistics support to the warfighter.

b. Subordinate Element Missions. Consumer-level supply operations exist

in every element of the Marine Air-Ground Task Force (MAGTF), both in

garrison and during deployed operations. It is therefore critical that a

comprehensive understanding of, and adherence to, the provisions of this

Order be accomplished by all personnel involved in Marine Corps ground

logistics support operations. In order to safeguard the effective

implementation of this Order, execution of the following responsibilities is

paramount:

(1) Deputy Commandant, Installations and Logistics (DC, I&L)

(a) Act as the Marine Corps Enterprise Ground Equipment Manager,

responsible for ensuring the roles and responsibilities identified in this

Order are adhered to by the appropriate stakeholders in order to achieve and

maintain strict equipment accountability and visibility.

(b) As the functional advocate for logistics information systems,

ensure systems are available and effective to enable consumer-level supply

operations. Ensure Department of Defense Activity Address Directory (DoDAAD)

data is correctly feeding enterprise and other service providers logistics

information systems.

(c) Coordinate with Commanding General, Training and Education

Command (CG, TECOM) to ensure that effective training programs are

implemented on the contents of this Order.

(d) Ensure that Field Supply and Maintenance Analysis Office

(FSMAO) Teams inspect Marine Corps organizations for compliance with this

Order and provide assistance to the Marine Forces (MARFORs) and Marine

Expeditionary Forces (MEFs) as necessary.

(2) Deputy Commandant, Plans, Policies, & Operations (DC, PP&O). Be

prepared to provide guidance on the operational impacts in the implementation

of this Order to ensure its relevance to current and future operations.

MCO 4400.150

29 JAN 2014

5

(3) Deputy Commandant, Combat Development and Integration (DC, CD&I)

(a) Coordinate efforts with DC, I&L to ensure this Order is both

implemented and in consonance with current doctrine.

(b) Coordinate with CG, Marine Corps Logistics Command

(MARCORLOGCOM) and CG, Marine Corps Systems Command (MARCORSYSCOM) to ensure

Total Force Structure Management System (TFSMS) data reflects the most

current and accurate information available to enable effective ground supply

operations at the consumer-level.

(4) Deputy Commandant, Programs and Resources (DC, P&R)

(a) In coordination with DC, I&L, CG, MARCORLOGCOM and CG,

MARCORSYSCOM ensure adequate resources are programmed through the Program

Objective Memorandum process to efficiently and economically support the

Marine Corp's Supply Chain requirements.

(b) Ensure approved DoDAACs of all units authorized to

requisition against funds allotted to each command are published in reference

(bv).

(5) Commanding General, Marine Corps Logistics Command (CG,

MARCORLOGCOM). Act as the Marine Corps Enterprise Ground Equipment Asset

Manager for Stores Account Code (SAC) 3 military equipment, ensuring policies

contained in this directive are supported and that emerging inventory

management practices are addressed herein.

(6) Commanding General, Training and Education Command (CG, TECOM).

Ensure effective training programs are established for both entry-level and

sustainment training of ground supply operations in consumer-level supply.

(7) Commander, Marine Corps Systems Command (CG, MARCORSYSCOM)

(a) In coordination with DC, I&L, ensure the provisions of this

Order support Total Life Cycle Management of programs and equipment.

(b) In coordination with DC, CD&I, ensure all equipment

information contained in TFSMS is maintained current to enable effective

consumer-level supply operations.

(8) Director, Command, Control, Communications, and Computers (C4)

(a) Ensure effective hardware, software, and network

communication resources are available to enable Marine Corps supply chain

operations.

(b) To ensure compliance with this Order, only provide purchase

request approval when requested by the Marine Corps Installations Command

(MCICOM) project officer or appropriate MARCORSYSCOM Program Manager and the

request is supported by an appropriate allowance, Universal Needs Statement

(UNS), or Table of Organization and Equipment Change Request (TOECR).

(9) Inspector General of the Marine Corps. Develop and implement an

inspection program to ensure compliance with Consumer-Level Supply policy.

MCO 4400.150

29 JAN 2014

i Enclosure (1)

TABLE OF CONTENTS

IDENTIFICATION TITLE PAGE

Chapter 1 Concepts of Consumer-Level Supply...............1-1

1. Purpose.........................................1-1

2. Legal Foundation................................1-1

3. Components of Supply Materiel Management........1-1

4. Inventory Levels of Supply......................1-2

5. Consumer-Level Supply Activity..................1-3

6. Conflicts of Interest...........................1-11

7. Appointment/Relief of Commanding Officer,

Supply Officer, and Responsible Officer.........1-11

8. Delegation of Authority and Succession to

Command.........................................1-13

9. Types of Materiel...............................1-15

10. Directives and Publications.....................1-16

11. Standing Operating Procedures (SOP).............1-17

12. Desktop Procedures and Turnover Folders.........1-18

13. Records Inspection..............................1-19

14. Policy Waivers..................................1-19

15. Training........................................1-20

Figure 1-1 Inventory Levels of Supply......................1-2

Figure 1-2 Notional Consumer-Level Supply Activity Roles...1-4

Chapter 2 Inventory Management and Control................2-1

1. General Information.............................2-1

2. Allowance Item Information......................2-1

3. Acquisition Objective (AO)......................2-4

4. Approved Acquisition Objective (AAO)............2-4

5. Allowance Items.................................2-4

6. Allowance Item Management.......................2-7

7. Command Adjustment Management...................2-9

8. Remain Behind Equipment (RBE)...................2-11

9. Inventory.......................................2-11

10. Warehousing.....................................2-16

11. Balance Record Transactions, Adjustments,

Causative Research and Record Retention.........2-17

12. Serialized Item Management (SIM)................2-23

13. Small Arms Control..............................2-26

14. Unserviceable Assets............................2-27

15. Excesses........................................2-27

16. Demand-supported Items..........................2-27

17. SL-3 Components List............................2-29

18. Garrison Tool Allowances........................2-31

19. General Equipment (Garrison Property)...........2-32

20. Local Purchase of Authorized Allowance Items....2-32

21. Electronic Key Management System (EKMS)

Equipment.......................................2-33

MCO 4400.150

29 JAN 2014

ii Enclosure (1)

IDENTIFICATION TITLE PAGE

Chapter 3 Requisitioning..................................3-1

1. General Information.............................3-1

2. Requisitioning..................................3-1

3. Financial Management............................3-1

4. Financial Responsibility........................3-1

5. Staff Action....................................3-2

6. The Requisitioning Process......................3-2

7. Requisition, Receipt, and Issue Management......3-4

8. Materiel and Services Support...................3-7

9. Types of Requisitions...........................3-7

10. Purchase Request (PR)...........................3-9

11. Publication Requisitioning......................3-16

12. Source Documents................................3-16

13. DoDAAD Management...............................3-19

14. Supply Discrepancy Reports (SDR)................3-21

Figure 3-1 The Requisitioning Process......................3-3

Figure 3-2 DoDAAC Authority Codes..........................3-20

Chapter 4 Ammunition and Explosives (A&E) ................4-1

1. Purpose.........................................4-1

2. Responsibilities................................4-1

Chapter 5 Investigations..................................5-1

1. Definitions.....................................5-1

2. Applicability...................................5-2

3. Accountability..................................5-3

4. Investigative Action............................5-3

5. Convening Authority.............................5-6

6. Investigating Officer...........................5-6

7. Duties of Investigating Officers................5-7

8. Reports Submission..............................5-9

9. Reviewing Authority.............................5-10

10. Review and Approval of Investigation............5-10

11. Acceptance of Responsibility for Loss, Damage,

or Destruction of Government Property...........5-11

12. Ordnance Materiel...............................5-12

13. Missing, Lost, Stolen, or Recovered (MLSR)

Government Property.............................5-13

14. Subsistence Investigations......................5-13

Chapter 6 Miscellaneous Accounting........................6-1

1. General Information.............................6-1

2. Retention of Records and Secure Storage for

Cash Collection.................................6-1

3. Initial Issue Provisioning (IIP)................6-1

4. Sensitive/Controlled Blank Forms Accountability.6-1

5. Personal Effects and Baggage....................6-2

6. Packaged Operational Rations (PORs).............6-2

7. Accounting for Classified Materiel..............6-2

8. Accounting for Medical and Dental Supplies

and Equipment...................................6-2

9. Temporary Loans of Organic Property.............6-2

MCO 4400.150

29 JAN 2014

iii Enclosure (1)

IDENTIFICATION TITLE PAGE

10. Heritage Assets and Display Equipment...........6-4

11. Flags or Clothing Issued for Burial of Marine

Corps and Navy Personnel........................6-10

12. Repair, Replacement, and Disposition of Flags

and Standards...................................6-11

13. Gas Cylinders and Vapor Fuels...................6-11

14. Radiological and Hazardous Items................6-11

15. Transfer of Property to Foreign Governments.....6-11

16. Sales of Government Property....................6-11

17. Sales of Individual Equipment to Individual

Marines.........................................6-15

18. Property Issued for Use of the Guard............6-16

19. Paintings.......................................6-17

20. The Official Marine Corps Seal and Emblem.......6-17

21. Personal Retention Items........................6-19

22. General Officers’ Stationery Items..............6-19

23. Organizational Clothing and Equipment...........6-19

24. Marking of Organizational Clothing and

Equipment.......................................6-21

25. Animals.........................................6-21

26. Loan of Property to Non-Government

Organizations (NGOs)............................6-21

27. Materiel Without Table of Organization &

Equipment (T/O&E) Allowances....................6-22

Figure 6-1 Materiel Without T/O&E Allowances...............6-22

Appendix A Glossary of Key Terms...........................A-1

Appendix B Abbreviations and Definitions...................B-1

Appendix C Legal Foundation Overview.......................C-1

Appendix D Supply Officer Appointment Letter Format........D-1

Appendix E Responsible Officer Appointment Letter

Format..........................................E-1

Appendix F Fund Holder Appointment Letter Format...........F-1

Appendix G Receipt and Acceptor Appointment Letter

Format..........................................G-1

Appendix H GCPC Cardholder Appointment Letter Format.......H-1

Appendix I Certifying Officer Appointment Letter Format....I-1

Appendix J DD Form 577: Appointment/Termination

Record – Authorized Signature...................J-1

Appendix K NAVMC 11869: Notice of Delegation of

Authority.......................................K-1

Appendix L Commanding Officer Certificate of Relief

Format..........................................L-1

Appendix M NAVMC 11867: Record of Roles and

Responsibilities................................M-1

Appendix N Supply Officer Certificate of Relief Format.....N-1

Appendix O Classes and Subclasses of Supply................O-1

Appendix P Table of Authorized Materiel Control Numbers....P-1

Appendix Q Supply Officer Inventory Results Letter

Format..........................................Q-1

Appendix R Commanding Officer Inventory Certification

Letter Format...................................R-1

MCO 4400.150

29 JAN 2014

iv Enclosure (1)

IDENTIFICATION TITLE PAGE

Appendix S Source Document Listing.........................S-1

Appendix T Request for Heritage Asset Determination

Format..........................................T-1

Appendix U Request for Conditional Loan or Display

Equipment Retention Format......................U-1

MCO 4400.150

29 JAN 2014

1-1 Enclosure (1)

Chapter 1

Concepts of Consumer-Level Supply

1. Purpose. This Order establishes the supply policies for use in the

effective control of Marine Corps resources, such as ground equipment,

materiel, and services, processed through Marine Corps consumer-level supply

organizations. Understanding and execution of these supply policies are

essential for effective supply resource and materiel management required to

ensure mission accomplishment. See Appendix A for glossary of key terms and

Appendix B for abbreviations and definitions.

2. Legal Foundation. As a Service Component, what we do, and how we do it,

is governed by statute and further refined by Departmental and Service

regulations. See Appendix C for a comprehensive summary of applicable

information as it relates to this policy manual.

3. Components of Supply Materiel Management. Supply materiel management

consists of continuing actions related to planning, organizing, directing,

coordinating, controlling and evaluating the application of resources to

ensure the effective and economical support of military forces. Command

advocacy and awareness are primary requirements for effective supply materiel

management. Supply materiel management includes two components: property

control and supply support. Some supply management measures may

simultaneously provide for both property control and supply support.

a. Property Control. Property control consists of all measures taken to

care and account for materiel. Property control includes the implementation

of physical security controls and other internal controls, the production of

reports, and the maintenance of audit trails and records that provide for the

clear demonstration of good stewardship of government property.

b. Supply Support. Supply support consists of all measures taken to

ensure that supplies and services, in the proper quality and quantity, are

available to support mission requirements. Although the flow of supply

support is normally considered to culminate with the issue of required

materiel and/or services to the user, whatever supply support is required to

satisfy the user's requirements must continue. Functions ensuring sufficient

supply support are:

(1) Computing materiel requirements.

(2) Requesting, requisitioning, procuring, receiving, warehousing,

distributing, shipping, issuing, selling, and disposing of all equipment,

materiel, and supplies for a Marine Corps consumer-level inventory.

(3) Producing accurate data and records used for supply support,

analysis, and action, by participating in information systems for supply

chain, financial, and supply management using unit-level maintenance and

access control. The term “Information System” refers to the following:

(a) Information System. The organized collection, processing,

transmission, and dissemination of information in accordance with defined

procedures, whether automated or manual. Information systems include non-

financial, financial, and mixed systems.

MCO 4400.150

29 JAN 2014

1-2 Enclosure (1)

(b) Accountable Property Systems of Record (APSR). The

Government information system used to control and manage accountable property

records. It is a subset of existing organizational processes related to

lifecycle management of property and is integrated with the core financial

systems. Examples of Marine Corps APSRs include, but are not limited to,

Global Combat Support System – Marine Corps (GCSS-MC) or Stock Control System

(SCS) for military equipment or Defense Property Accounting System (DPAS) for

general equipment.

(4) Participating in supply support projects under the cognizance of

the DoD.

(5) Implementing directives concerning the Marine Corps consumer-

level inventory that emanate from higher headquarters.

(6) Executing fiscal responsibilities which consist of the proper

assignment of funding on a requisition (obligation document) before it is

processed, maintaining a positive fund balance, and identifying unfunded

deficiencies as required.

(7) Managing Automated Information Systems (AIS) in order to control

access to supply chain management systems.

4. Inventory Levels of Supply. There are two major inventory levels of

supply within the Marine Corps: wholesale and retail.

Figure 1-1.--Inventory Levels of Supply.

a. Wholesale Inventory. An inventory over which a manager at the

national level has asset knowledge and exercises unrestricted asset control

supporting worldwide inventory responsibilities. The Marine Corps link to

wholesale inventory is the inventory control point/remote storage activity

(RSA) which is managed by MARCORLOGCOM.

b. Retail Inventory. Retail inventory consists of consumer and

intermediate level inventories.

(1) Consumer Inventory. An inventory usually of limited range and

depth, held by the final element in an established supply chain distribution

system for the sole purpose of internal consumption within that final element.

A consumer level inventory is independent of echelon of command and can exist

at any level whether strategic, operational, or at the tactical level.

(2) Intermediate Inventory. An inventory required between the

consumer and wholesale levels of inventory for support of a defined

geographic area or for tailored support of specific organizations or

activities.

MCO 4400.150

29 JAN 2014

1-3 Enclosure (1)

5. Consumer-Level Supply Activity. In order for a consumer-level supply

activity to exist, certain requirements must be met in terms of

accountability, responsibility, and assigned roles which govern, manage, and

facilitate the maintenance of a consumer-level inventory.

a. Accountability. The obligation imposed by law, lawful order, or

regulation on an officer or other person for keeping current, complete and

accurate records of property, documents, or funds. The person having this

obligation may or may not have actual possession of the property, documents,

or funds. Accountability is concerned primarily with records, while

responsibility is concerned primarily with custody, care, and safekeeping.

Property accounting is a rigorous form of property control that entails a

significant investment in personnel and resources in order to maintain the

required records and associated audit trails.

b. Responsibility. The obligation for the proper custody, care, and

safekeeping of property or funds entrusted to the possession or supervision

of an individual. Any person having public property, funds, and/or other

government provided resources in their custody or under their supervision

assumes a public trust that the property will be used only for its intended

purpose and as authorized by law or regulations.

c. Roles. To fulfill Title 10 and Title 31 USC, U.S. Navy Regulations,

and Marine Corps Manual (MARCORMAN) requirements for the management of

equipment, materiel, and resources within the Marine Corps, various roles are

assigned to carry out the functions of accountability and responsibility.

(1) Commandant of the Marine Corps (CMC). The CMC provides policy

and procedures through various directives, to include this Order, for

consumer-level supply and financial management. Further, the CMC provides

resources and a basic organizational structure with which to discharge the

supply management duties of Commanders at various echelons.

(2) Consumer-Level Supply Activities. Assigned roles and

responsibilities vary based on the type of Marine Corps field activity;

however, certain minimum requirements should be met in order to qualify as a

consumer-level supply activity. These minimum requirements are provided in

the notional Consumer-Level supply activity roles provided in Figure 1-1.

MCO 4400.150

29 JAN 2014

1-4 Enclosure (1)

Figure 1-2.--Notional Consumer-Level Supply Activity Roles.

(a) Commanding Officers (CO). A CO is one who is properly

assigned by the CMC, in writing, by virtue of orders to command an

organization, or who under applicable provisions of law, regulations, or

orders, succeeds to such command due to transfer, incapacity, death, or

absence of the previous CO. Marine Corps COs are titled as Commandant,

Commander, Commanding General, Commanding Officer, Director, or Inspector-

Instructor. Other titles used to designate Marine Corps COs shall be made

only with the specific approval of the CMC. The titles Officer in Charge

(OIC) or Non-Commissioned Officer in Charge do not normally denote a CO;

however, in specific instances, superiors in the chain of command may

delegate command authority to OICs or Non-Commissioned Officers in Charge to

the extent required for them to carry out their assigned tasks.

(b) Accountable Officer (AO). Accountability is inherent to

command. The CO of a unit having a consumer-level supply account is

accountable by virtue of acceptance of command. For the purposes of this

policy, the term “CO” is generally synonymous with “Accountable Officer”

unless otherwise designated. Due to certain unique command structures,

general officers may be responsible for those tasks/duties that are normally

inherent to the billet of CO. Refer to Appendix C for additional information

regarding AOs.

1. Commanding General/Commander. A General Officer has the

authority to appoint the most appropriate Officer as the AO.

MCO 4400.150

29 JAN 2014

1-5 Enclosure (1)

Once appointed, this AO will have the same authority associated with the

management of a supply account as a CO would. If the AO in this case is

prohibited from performing certain duties associated with supply procedures

(i.e., does not have convening authority for Judge Advocate General Manual

(JAGMAN) investigations), the action will be referred to the next higher

level in the chain-of-command which has the appropriate authority.

2. Unique Command Organizations. There are also chain-of-

command peculiarities associated with certain command elements such as a

Regiment or special purpose/contingency MAGTF. The Regimental Commander, MSC,

MEF, or MARFOR General Officer has the authority to appoint the most

appropriate Officer as the Accountable Officer in these instances of

particular commands (e.g., Headquarters Company/Battery Commander). If the

AO in this case is prohibited from performing certain duties associated with

supply procedures (i.e., does not have convening authority for JAGMAN

investigations), the action will be referred to the next higher level in the

chain-of-command which has the appropriate authority (e.g., Regimental CO).

(c) Supply Officer. The CO shall designate, in writing via an

appointment letter and a DD Form 577, a unit Supply Officer to perform supply

administrative and property accounting functions for the command. Due to the

technical nature of supply administration and property accounting functions,

CO’s will make every attempt to appoint individuals who have received the

appropriate level of training required to be a Supply Officer per references

(ak) and (ao). The Supply Officer will serve as a special staff officer to

the CO. As a member of the CO's staff, the Supply Officer is responsible for

ensuring that the CO is made fully aware of the unit's current supply and

fiscal postures. Supply Officers will recommend corrective procedural

changes to the CO so detrimental supply situations may be prevented or

corrected. Delegation of accounting responsibilities to the Supply Officer

does not relieve the Commander of accountability. In most cases, the roles

of Fiscal/Budget & Accounting Officer, Supply Resource Manager, Certifying

Officer, and Supply AIS administrator is inherent to the Supply Officer

billet, in addition to supply administration and property accounting

functions,

1. Fiscal/Budget & Accounting Officer. Financial information

is monitored and coordinated by the Comptroller and his/her staff in order to

provide the Commanding General or Officer with factual data essential for

effective financial management within the Command. In the absence of a

Comptroller, the CO shall designate, in writing via an appointment letter and

a DD Form 577, a unit Fiscal/Budget & Accounting Officer to perform financial

management functions for the command. In most organizations, the

Fiscal/Budget & Accounting Officer duties are inherent to the Supply Officer

billet. In addition to Fund Holder internal management control oversight,

unit Fiscal/Budget & Accounting Officer responsibilities include:

a. Provide guidance and direction of financial

matters throughout the organization as a staff service to the Commanding

Officer.

b. Track all activities/programs that will have a

financial impact on the organization. This will include budget plans and

program schedules.

MCO 4400.150

29 JAN 2014

1-6 Enclosure (1)

c. Perform applicable budget formulation, execution, and

review functions for future, current, and expired fiscal years.

d. Provide guidance to fund managers responsible for the

administration of travel payments (i.e., advances and settlements).

e. Ensure budget authorizations and allotments are

passed to subordinate elements in a timely manner, if applicable.

f. Maintain oversight of transactions posted in the

accounting system to ensure validity and accuracy of postings. These

evaluations should include proper usage of funds, coding structures used,

validity of obligations, and timely posting of financial information.

g. Conduct evaluations and analyses of fund manager

activities to assist in the prompt detection and correction of problems in

connection with established financial procedures, practices, records and

accounting system problems and deficiencies.

h. Ensure proper records and source documents supporting

fund execution are maintained by appropriate activities such as fund

managers.

i. Ensure proper use of appropriations by purpose, time,

and amount to include meeting the criteria of bona-fide need.

j. Train delegated fund holders in the proper

utilization of the accounting system.

k. Act as a liaison with the Defense Finance and

Accounting Service (DFAS) on all accounting issues.

l. Maintain required currency in fiscal training.

2. Supply Resource Manager. Responsibility for oversight of

financial management belongs to the comptroller or a Fiscal/Budget &

Accounting Officer in the absence of a comptroller; however, Supply Resource

Managers receive authorized funds, on behalf of the CO, as a resource to

accomplish and execute their assigned missions. In most organizations,

Supply Resource Manager duties are inherent to the Supply Officer billet. In

some situations, the CO may allocate funds to support a given function which

are subsequently administered by a staff officer who has primary cognizance

over the function supported (e.g., facilities office may oversee facilities

requisitions, the consolidated administration office may oversee Temporary

Additional Duty (TAD) and local travel etc.). In these scenarios, the staff

officer will be appointed by the CO as a fund holder responsible for

coordinating execution and reconciliation of funds with the Supply Resource

Manager. Responsibility on behalf of the CO for overall supply resource

management is entrusted to the Supply Officer. Supply Resource Managers must

be appointed, in writing via an appointment letter and a DD Form 577 by the

CO. Supply Resource Managers are responsible for, but not limited to, the

following duties and responsibilities:

a. Compiling and executing the budget in accordance with

the financial plan for the current fiscal year.

MCO 4400.150

29 JAN 2014

1-7 Enclosure (1)

b. Monitoring the execution of the financial plan for

all fiscal years available for obligation and five additional years

thereafter.

c. Preparing source documents.

d. Recording accounting transactions into the accounting

system.

e. Reconciling the accounting system with source

documents on a cyclic basis.

f. Maintaining financial records and source documents in

accordance with references (j) and (k).

g. Identifying and providing information to the

comptroller on Unmatched Disbursements (UMDs) and Negative Unliquidated

Obligations (NULOs) on error and exception listings.

h. Conducting Unliquidated Orders (ULO) and Outstanding

Travel Orders validations.

i. Perform the functions as the Supply AIS administrator

for funding execution automated systems.

3. Certifying Officer

a. The CO will appoint the Supply Officer as the

Certifying Officer, in writing via an appointment letter and a DD Form 577,

to attest to the correctness of statements, facts, accounts, and amounts

appearing on a voucher, and certifying the voucher as correct and proper for

payment. In addition, he/she provides oversight to Departmental Accountable

Officials (DAOs) to strengthen internal controls. DAOs (i.e., Responsible

Officers, Supply Resource Manager/Fund Holders) provide information, data, or

services to Certifying Officers upon which the latter rely on to properly

certify vouchers for payment. Although Certifying Officers must rely on the

efforts of others who support the certification process (e.g., Supply

Resource Manager, Fund Holder, Receipt and Acceptor, DAOs), they are

financially liable for erroneous payments. Section 2773a of title 10, United

States Code, authorizes the COs and/or DoD to hold the Supply Resource

Manager and DAOs financially liable for illegal, improper, or incorrect

payments resulting from the negligent provision of information, data, or

services to Certifying Officers.

b. Although the Supply Officer is normally the command’s

only Certifying Officer, the CO may appoint other Certifying Officers if

necessary. Certifying Officers should be a supervisor with knowledge of the

subject matter for which assigned, background or experience in preparation of

vouchers for payment, knowledge of appropriations and other funds and

accounting classifications, and knowledge of the payment process (e.g.,

availability of funds and location of designated paying and accounting

offices). Other personnel eligible to be appointed to certify vouchers and

forward them to a disbursing office for payment include, but are not limited

to the following:

MCO 4400.150

29 JAN 2014

1-8 Enclosure (1)

(1) COs,

(2) Travel authorizing officials,

(3) Purchase card approving officials,

(4) Centrally billed account approving officials, and

other personnel in equivalent positions.

4. Supply AIS Administrator. The Supply AIS administrator is

responsible for the command’s access control to automated system(s) used to

support the purchase request, requisitioning, receipt and acceptance,

equipment accountability, financial management, and other supply chain

management systems. The Supply AIS administrator is responsible for

approving System Authorization Access Requests (SAAR) in order to grant

access to these systems for an activity. As the Supply Officer/Supply

Resource Manager is responsible for the overall supply administrative

function and funding execution for the command, he/she must maintain controls

for unit access to systems that have the ability to obligate the activity’s

appropriations or alter its accountable/custodial records and balances. Thus,

the function of the Supply AIS administrator is inherent and must be

identified in the appointment of the Supply Officer/Supply Resource Manager

by the CO. To assist in the performance of Supply AIS administrator

responsibilities, the Supply Officer/Supply Resource Manager may recommend to

the CO the appointment of additional Supply AIS administrators. Other

pseudonyms for this function include (but are not limited to): Group

Administrator, Unit User Account Manager (UUAM), user administrator, workflow

manager, etc.

(d) Fund Holder (Fiscal). Fund holders are responsible for the

proper assignment of funding on an obligation document before the obligation

is incurred, and for maintaining a system of positive funds control. This is

a “certification of fund availability,” not a certification for payment

(Certifying officer) and is an inherent responsibility of the Supply Resource

Manager. As such, the Supply Officer through the appointment as the Supply

Resource Manager assumes fund holder responsibilities and all oversight

functions. To assist in the performance of the Supply Resource Manager

responsibilities, the Supply Officer may recommend to the CO the appointment

of additional fund holders. These fund holder’s duties will include the

preparation of source documentation, recording of accounting transactions

into the appropriate accounting system, reconciliation of the accounting

system with source documentation, and the maintenance of financial records

and source documentation. Fund Holders must be appointed, in writing via an

appointment letter and a DD Form 577, by the CO as recommended by the Supply

Resource Manager. This is a DAO responsibility within the supply office

which is performed for all Responsible Officers (ROs).

(e) Receipt & Acceptor. The Receipt & Acceptor are DAOs which

provide timely and accurate receipt data to the Supply Resource Manager/Fund

Holder, Fiscal/Budget & Accounting Officer, and/or the Certifying officer

(e.g., quantity and receipt date). The Receipt & Acceptor is an appointed

individual within the command who receives supplies or services on behalf of

the command. In most cases, the Receipt & Acceptor is an individual within

the supply office; however, in some instances a Receipt & Acceptor may need

to be assigned to an individual not within the supply office to verify

receipt of services (e.g., annual contracts such as monthly cleaning

MCO 4400.150

29 JAN 2014

1-9 Enclosure (1)

services). Receipt & Acceptor assignments must be made by the CO in writing

via an appointment letter and a DD Form 577. Receipt & Acceptors may be

referred to as the Receiving Official (P&R), Governmental Inspection and

Acceptance (Contracting), and Acceptor (Wide Area Workflow (WAWF)).

(f) Responsible Officers (ROs). ROs are individuals who assume

custodial responsibility for property and accountability for finances

assigned to them by the CO for mission accomplishment. These resources are

issued from the supply office in the performance of the RO’s regular duties

and will be properly accounted for within their span of control. RO’s are

custody holders of accountable supplies who manage and use supplies on behalf

of an organization. Additionally, ROs assume the commodity DAO function and

coordinate with the Certifying Officer via the Supply Resource Manager/Fund

Holder for the proper execution of allocated financial resources. ROs will

be formally charged with the duty to care for and control all supplies within

their custody and financial allocations by the CO in writing via an

appointment letter and a DD Form 577. If an RO anticipates being separated

from the assets for 60 calendar days or more, a new RO will be appointed and

a joint inventory conducted. Additionally, the CO shall appoint the incoming

RO prior to the outgoing RO leaving the command in an effort to allow the ROs

time to conduct the required joint inventory. Delegation of accounting

responsibilities to ROs does not relieve the CO of accountability.

(g) Responsible Individuals (RI). RIs are sub-custody holders of

accountable supplies, originally signed for by the RO. They are appointed by

ROs in writing and will sign for all supplies within their sub-custody.

(h) Purchase Card Program Departmental Accountable Officials.

COs who utilize the Government-wide Commercial Purchase Card (GCPC) program

as a means to acquire goods and services, are responsible for making

nominations to the Regional Contracting Office (RCO) for personnel within

their command to manage and execute the GCPC program in accordance with

reference (ae). The RCO will then appoint applicable DAOs for that command,

who will manage and execute its program, including:

1. Agency Program Coordinator (APC). APCs (Using Unit Level

V) are responsible for the implementation and execution of the purchase card

program in accordance with established Office of the Secretary of Defense

(OSD) and applicable DoD Component regulations, Headquarters Marine Corps

(HQMC) and local policies and procedures.

2. Approving Official (AO). AOs are responsible for the

oversight of cardholders and shall be the Certifying Officer for the accounts

assigned. Frequent review of available information shall be accomplished to

promptly identify improper use. Typically, the CO nominates the Supply

Officer as the AO. AOs must be appointed, in writing via an appointment

letter and a DD Form 577, by the CO as recommended by the Supply Resource

Manager.

3. Cardholder (CH). CHs are responsible for the timely and

accurate processing of monthly billing statements and updates of the

cardholder’s automated system, if applicable. Cardholders must adequately

control access to the card to preclude unauthorized use. Frequent review of

available information from contractor and other automated purchase card

support systems is essential to promptly identify improper use. Cardholders

are also responsible for taking timely and proper action when unauthorized

MCO 4400.150

29 JAN 2014

1-10 Enclosure (1)

charges occur. CHs must be appointed, in writing via an appointment letter

and a DD Form 577, by the CO.

d. Appointment Letters and DD Form 577. Appointment letters, to include

the DD Form 577 when required, will be signed by the CO and will be retained

in accordance with paragraph 11i of chapter 2.

(1) When an individual is being appointed to multiple roles (e.g.,

same individual is being appointed as the Supply Officer, Supply Resource

Manager, and Fiscal/Budget and Accounting Officer) a single appointment

letter and DD Form 577 meets the appointment requirement. In these cases,

each role must be clearly identified and defined in the appointment letter

and DD Form 577.

(2) The completion of the DD Form 577 meets the DoD requirements

identified in reference (k).

(3) The DD Form 577 does not have an appointed role in Block 13 for

“Supply Officer” or other specific USMC roles. In these situations, the

“Departmental Accountable Official” block will be used and specific roles

will be identified Block 14.

(4) Appointment letter formats and the DD Form 577 can be found in

Appendices D through J.

e. Requisition Authority. The command must have Requisition Authority as

described in Appendix C. Commands with Requisition Authority are assigned an

Authority Code of "00" for their DoDAAC in the DoDAAD, which enables them to

create and authorize requisitions, carry stock, account for assets on the

unit’s supply accountable record (e.g., Installed Base, Mechanized Allowance

List (MAL)), manage the Unit Diary, manage the unit T/O&E, and manage

obligations incurred against Marine Corps funds.

f. Delegation of Authority. In order to ensure continuity in the absence

of the RO, a NAVMC 11869 – Notice of Delegation of Authority will be prepared

by the RO and forwarded to the Supply Officer. Copies of signed NAVMC 11869

will be maintained by both the RO and Supply Officer. A copy of the NAVMC

11869 can be found in Appendix K. This NAVMC will outline to which

individuals the RO has delegated authority for the following assigned duties

within the RO’s span of control:

(1) Sign and receipt for government property and services for use

within the department/section.

(2) Turn in of excess or damaged government property.

(3) Submission of purchase requests for supplies and/or services.

g. Individual Responsibility. Individuals, who obtain and maintain

public property for use in the performance of assigned duties, or come into

custody of government property, are individually responsible for that

property.

(1) Direct Custodian. The fact that an individual has not signed a

receipt for public property in that individual's possession does not relieve

MCO 4400.150

29 JAN 2014

1-11 Enclosure (1)

that individual of the required custodial, maintenance, and servicing

responsibilities.

(2) Liability. In the case of loss, damage, or destruction of public

property through causes other than wear incident to normal service, personnel

responsible will either be held punitively liable, administratively

accountable, or excused from responsibility by competent authority per the

guidance contained in chapter 5 of this Order.

(3) Indebtedness. For information on indebtedness, see paragraph 1e

of chapter 5.

6. Conflicts of Interest. The CO shall ensure that the Supply Officer/Chief

and ROs are not assigned duties which conflict with their supply management

responsibilities.

a. Supply personnel will not be appointed as Investigating Officers for

any fiscal or supply property accountability related investigations.

Additionally, ROs will not be appointed as investigating officers for

property under their charge.

b. Supply personnel will not be appointed as an RO for any property that

is internal to the command (e.g., EKMS custodian); however, this should not

preclude establishing internal automated controls for the management of

inventories held within the warehouse utilizing established APSRs that would

enable asset visibility, and for which RO duties to account for these items

rests with the Supply Officer, Supply Chief, or Warehouse Chief.

c. Supply personnel shall not manage accounts other than official

appropriated and non-appropriated fund accounts.

d. Supply personnel will not be assigned duties that could conflict with

their responsibility to maintain sound accountable records or influence/

manipulate the accountability process.

7. Appointment/Relief of Commanding Officer, Supply Officer, and Responsible

Officer

a. Commanding Officer (CO)

(1) Before relief, the outgoing CO will provide a Certification of

Relief letter to the relieving CO. The Certification of Relief letter will

indicate the status of supply operations within the command and will be

retained in the supply files in accordance with paragraph 11i of chapter 2.

At the minimum, the letter will include an inventory summary; fiscal overview;

status of existing temporary loans; status of pending investigations, Request

for Investigations, and Discrepancy Letters; and status of general equipment

accounts. In addition, the letter will include as an enclosure the NAVMC

11867 - Roles and Responsibilities, identifying the appointed individuals

identified in this chapter. An example of a CO Certificate of Relief letter

format can be found in Appendix L, and a copy of the NAVMC 11867 can be found

in Appendix M.

(2) The relieving CO will conduct necessary supply inspections to

determine the condition of materiel, records, and operating procedures. This

inspection will be completed by the CO within 30 calendar days after

MCO 4400.150

29 JAN 2014

1-12 Enclosure (1)

assumption of command and be retained as an endorsement to the outgoing CO’s

Certificate of Relief letter.

(3) In cases of death, suspension from duty, transfer without relief,

or any other instances where a letter of certification of relief of a CO

cognizant over a supply account cannot be obtained, the Major Subordinate

Command (MSC), or other appropriate higher headquarters, will appoint an

inventory board to determine the condition of materiel, records, and

operating procedures via a certificate of relief. This board will prepare a

letter reporting its findings to the MSC or higher headquarters. A copy of

the letter will be held by the Supply Officer instead of the CO's

certification of relief, and the original of the board's letter will be

provided to the MSC or higher headquarters.

b. Supply Officer

(1) Immediately prior to the relief of the Supply Officer, an

inventory and reconciliation of the property records will be accomplished.

All necessary adjustments resulting from the inventory will be made. Upon

completion of the inventory and reconciliation of the property records, the

Supply Officer being relieved will prepare and sign a Certificate of Relief

letter with the results of the inventory and reconciliation. At the minimum,

the letter will include an inventory summary; fiscal overview; status of

existing temporary loans; status of pending investigations, Request for

Investigations, and Discrepancy Letters; and status of general equipment

accounts. In addition, The Supply officer will furnish this certificate,

dated as of the date of relief, to the relieving Supply Officer. This

Certification of Relief letter will be retained in the supply files in

accordance with paragraph 11i of chapter 2. The letter will include as an

enclosure the NAVMC 11867, identifying the appointed individuals identified

in this chapter. An example of a Supply Officer Certificate of Relief letter

format can be found in Appendix N, and a copy of the NAVMC 11867 can be found

in Appendix M.

(2) Within 30 calendar days after assuming control of the property

account, the relieving Supply Officer will conduct necessary supply

inspections to determine the condition of materiel, records, and operating

procedures. The findings will be reported to the Commanding Officer by

endorsement on the Certificate of Relief provided by the relieved Supply

Officer. The endorsement will include as an enclosure the NAVMC 11867,

identifying the updated appointed individuals identified in this chapter. If

required, a request for extension to the preceding time frame may be

submitted to the Commanding Officer for adjudication. This endorsement will

be maintained in the supply file in accordance with paragraph 11i of chapter

2.

(3) If the Supply Officer is separated from the assets within his or

her responsibility for more than 60 calendar days, due to TAD,

hospitalization, or other reasons, the CO must appoint another Supply Officer.

In case of death, suspension from duty, or transfer without relief of an

officer or noncommissioned officer (NCO) having charge of public property,

the CO will appoint an inventory board to determine the status of the account

via a Certificate of Relief. If the CO suspects that culpability exists for

losses, then the CO will direct that a Judge Advocate General (JAG)

investigation be conducted.

MCO 4400.150

29 JAN 2014

1-13 Enclosure (1)

(4) Due to rapid account turnover, certification letters are not

required for supply elements configured on a temporary basis to support a

particular exercise/float (e.g., a Class IX block). For these accounts,

relief of the Supply Officer will be conducted per local procedures

established by the MARFOR/MEFs.

c. Responsible Officer (RO). The outgoing RO will report all overages

and shortages to the Supply Officer before transferring the responsibility

for the property to the RO's successor. The relieving RO will conduct a

joint inventory with the outgoing RO, and carefully inspect all items using

all supporting technical publications (e.g., SL-3, technical manuals (TMs),

etc.) to validate the Consolidated Memorandum Receipt (CMR). These actions

will be accomplished within 15 calendar days of appointment as RO. If the

relieving RO is satisfied that the property reflected on the property records

are physically on hand and properly accounted for, he/she will sign the CMR

and endorse their appointment letter, thereby acknowledging receipt of the

equipment in that account. If the relieving RO is not satisfied with the

condition of the account, he/she will sign the CMR and endorse their

appointment letter, reporting the facts to the Commanding Officer, via the

Supply Officer, for appropriate action in accordance with paragraph 11b of

chapter 2. This endorsement to the appointment letter will document the

relieving RO’s position on disputed quantities. If required, a request for

extension to the preceding time frame may be submitted to the Commanding

Officer for adjudication. RO appointment letters, endorsements (RO

acceptance letter), and all supporting documentation will be maintained by

the supply office in accordance with paragraph 11i of chapter 2.

8. Delegation of Authority and Succession to Command. The U.S. Navy

Regulations and MARCORMAN establish policy related to delegation of authority

and succession to command which is set forth as follows.

a. Delegation of Authority. When not contrary to law or regulations,

COs may delegate specific authority to their subordinates to assist in the

performance of their command functions. However, COs retain full

responsibility for the performance of those duties which are delegated. COs

must ensure delegated authority is properly exercised and orders and

instructions are properly executed.

b. Succession to Command

(1) The U.S. Navy Regulations specify succession to command for

commanding generals of Operating Forces (OPFORs) and subdivisions of OPFORs,

COs of naval shore activities, and COs of aircraft units. Except as

otherwise provided for by law or by the U.S. Navy Regulations, succession to

command in Marine Corps units shall be as follows:

(a) Where there is a deputy, assistant, executive officer, chief

of staff, or other officer specified by competent authority, that officer

shall succeed to command in the event of the transfer, death, or incapacity

of the CO of the unit, and if the latter so directs, at other times during

the absence of such officer.

(b) Where there is no officer occupying one of the positions set

forth above, the senior Marine Corps officer eligible to command and

regularly assigned to the unit shall succeed to command in the event of the

transfer, death, or incapacity of the CO.

MCO 4400.150

29 JAN 2014

1-14 Enclosure (1)

(2) When a CO is absent and has not directed succession to command

during that absence, the officer who would otherwise succeed to command, as

set forth in paragraphs 8b(l)(a) and (b) above, shall have authority to issue

the orders required to carry on the established routine and to perform the

administrative functions of the command and shall be the CO for purposes of

military justice, emergencies, and other unforeseen situations requiring

action (also see paragraph 8f below).

(3) An officer who succeeds to command assumes command responsibility

for the unit, including all orders in force at the time and all public

property and funds pertaining to the command. This includes, but is not

limited to the authority to certify/sign vouchers, authorize adjustments to

accounting records, and the authority to adjudicate requests for

investigation from responsible officers/individuals.

(4) An officer who succeeds to command during the temporary absence

of the Commanding Officer shall make no changes in the existing organization

and shall strive to carry out the routine and other affairs of the unit in

the usual manner.

c. Deputy Commander. A deputy Commander is an officer assigned by law,

regulations, or orders of competent authority to succeed to command. A

deputy shall always act for the Commander in the absence of the Commander.

At such time as the Commander is present a deputy shall exercise command or

control only over activities and matters specified or directed by the

Commander.

d. Executive Officer. The executive officer shall be an officer of the

organization who is eligible to succeed to command, and normally will be the

officer next in rank to the CO. As the direct representative of the CO, all

orders issued by the executive officer shall have the same force and effect

as though issued by the CO. The executive officer shall enforce the policies

and orders of the CO and shall be prepared to assume command at any time the

need should arise.

e. Limitations on Succession to Command

(1) Limited Duty Officers, Chief Warrant Officers, and Warrant

Officers may succeed to command of only those activities which have a primary

function corresponding to the Military Occupational Specialty of the officer

concerned.

(2) The officer succeeding to command of a Marine aircraft squadron,

group, or wing, shall be a Marine Corps officer qualified as a Naval Aviator

or Naval Flight Officer.

f. Level of Authority. When an officer succeeds to command, that

officer must possess rank sufficient to carry out the full spectrum of

responsibilities inherent to an Accountable Officer as outlined in Appendix

C. When an officer succeeds to command who does not possess the requisite

level of authority to execute Accountable Officer responsibilities relative

to military justice (i.e., below the field grade), those matters shall be

adjudicated by the next higher authority in the chain of command (e.g.,

Regimental or MSC Commander).

MCO 4400.150

29 JAN 2014

1-15 Enclosure (1)

9. Types of Materiel. All materiel used or held by consumer-level supply

accounts can be classified into two general categories: nonexpendable/

expendable, and nonconsumable/consumable. The following definitions take

precedence over those contained in references (cp) and (cq), and will be used

in all consumer-level accounts.

a. Nonexpendable/Expendable. The accounting required for a particular

item is determined by its expendability.

(1) Nonexpendable Supplies. Nonexpendable supplies continue to be

accounted for using custody procedures when issued to the final user. As

such, management techniques require centralized individual management

throughout the supply system to include items stocked at all inventory levels.

Specifically, these include items of which, in the judgement of the Mairne

Corps, there is a need for centralized inventory control, to include

centralized computation of requirements, procurement, initial issue

provisioning (IIP) distribution, and accountability of all assets owned by

the Marine Corps. In most instances, nonexpendable items are nonconsumables

and therefore recoverable. Accordingly, they are only issued on a custody

basis and accounted for through allowance accounting policies. However,

certain sensitive items, such as ammunition, and controlled medical supplies

are accounted for as nonexpendable items although they are consumables;

therefore, nonexpendable items are initially issued to the final user on a

custody basis. They are then removed from the accounting records incident to

actual consumption. Nonexpendable items include military or general

equipment and may further be defined as controlled items.

(a) Military Equipment. Weapon systems that can be used directly

by the Armed Forces to carry out battlefield missions. Military equipment

has an expected useful life of two or more years; is not intended for sale in

the ordinary course of business; does not ordinarily lose its identity or

become a component part of another article; and is available for the use of

the reporting entity for its intended purpose. Examples include: combat

aircraft, pods, combat ships, support ships, satellites, and combat vehicles.

Excluded are training aircraft and simulators. Military equipment is not

considered wholesale inventory.

(b) General Equipment. General equipment is not available for

the use of the reporting entity in the performance of battlefield missions

(i.e., not used for tactical purposes and does not deploy). Refer to

paragraph 19 of chapter 2 for amplyfing guidance.

(c) Controlled Items. Controlled items are a subset of

nonexpendable supplies. Those items designated as having characteristics

that require that they be identified, accounted for, secured, segregated, or

handled in a special manner to ensure their security and integrity.

Controlled items normally fall into the category of classified, sensitive,

and/or pilferable and thus require more stringent inventory controls. The

CMC (or higher authority) exercises close supervision of controlled items

because such items are scarce, costly, or of a highly technical or hazardous

nature. Further information can be found in reference (bc). Controlled

items are assigned with Unique Identification (UID) and entered into the DoD

UID Registry. For more information of UID, see paragraph 2f of chapter 2.

MCO 4400.150

29 JAN 2014

1-16 Enclosure (1)

(d) References (c) and (f) requires 100 percent accuracy rate for

controlled items (classified, sensitive, and/or pilferable) with a minimum 98

percent accuracy rate for the total physical inventory (all nonexpendable).

(2) Expendable Supplies. Expendable supplies are items which are no

longer accounted for when issued to the final user. Most consumables and

repair parts, regardless of price, are treated as expendable for accounting

purposes; however, there may be instances where expendable items are managed

at the commodity level, such as demand-support items. For more information

on Demand-support items, see paragraph 16 of chapter 2. Expendable supplies

include Operating Material and Supplies (OM&S) which can further be

categorized as principal or secondary items.

(a) Operating Material and Supplies (OM&S). OM&S inventory

consist of tangible property (reparable and consumable inventory) that is

held for use; held for future use; held for repair; or excess, unserviceable

and obsolete. Excluded are (a) goods that have been acquired for use in

constructing real property, (b) stockpile materials, and (c) inventory held

for sale.

(b) Principal Item. A principal assembly or a replacement

assembly of such importance to operational readiness that management

techniques require centralized individual item management throughout the

supply system to include items stocked at depot-level, base level, and using

unit level. These are principal assemblies and are reported within the

Supply System Inventory Report (SSIR). Includes aircraft engines, munitions

and related "equipment", tank "subsystems", railway "equipment", and

propulsion systems. Principal assemblies do not include complete aircraft,

ships, tanks, helicopters, other combat and tactical vehicles,

Intercontinental Ballistic Missiles (ICBMs), intermediate range ballistic

missiles, or space vehicles.

(c) Secondary Item. An item of supply that is not defined as a

principal item and includes reparable components, subsystems, and assemblies,

consumable repair parts, bulk items and material, subsistence, and expendable

end items, including clothing and other personal gear.

b. Nonconsumable/Consumable Supplies. While expendability determines

the accounting required, consumability identifies whether or not the supply

is actually consumed.

(1) Nonconsumable. An item of supply that remains intact after its

intended use.

(2) Consumable Supplies. An item of supply (except explosive

ordnance) that is normally expended or used up beyond recovery in the use for

which it is designed or intended.

10. Directives and Publications

a. Publications Management. The Marine Corps publishes policy,

procedural instructions, and reference publications for management of supply

functions. In certain instances, publications of other services/agencies may

be used. Publications are managed by the Directives Control Point (DCP)

within the administration section of the command in accordance with reference

(bk). The DCP will use the Marine Corps Publications Distribution System

MCO 4400.150

29 JAN 2014

1-17 Enclosure (1)

(MCPDS) to manage and requisition publications within the unit. The CO shall

ensure that all sections have on hand or on order all pertinent publications

and directives with applicable changes required in the performance of their

duties. Printed copies, or copies located on computer hard drives, compact

disks, digital video disks, or other memory storage devices, will suffice as

long as they are up to date with all applicable changes and are deployable.

Publications located on a network drive will not suffice as meeting the

requirement of having pertinent publications and directives on hand as

networks are not deployable and publications are not available when the

network is down. The official online authoritative source for Marine Corps

publications is the Marine Corps Publications Electronic Library at:

http://www.marines.mil/Pages/Default.aspx (under 'News'/'Publications').

b. Technical Publications Management. The availability of current

technical publications has a direct impact on the ability to repair and

maintain T/O&E materiel. Technical publications are managed using the

following tools:

(1) SL-1-2. This lists all current technical publications, TMs,

Stocklists (SL), Supply Instructions, Technical Instructions, and

Modification Instructions, as discussed in reference (bo), the Marine Corps

Technical Publications System policy, in item designator (ID) number sequence

and is published quarterly. Part III of the SL-1-2 lists superseded

publications and the corresponding new publications. The SL-1-2 further

identifies changes since the previous SL-1-2 by use of an asterisk (*) to the

left of the appropriate publication control number.

(2) Publication Library Management System (PLMS). PLMS provides the

same information as the SL-1-2 plus all directives and user manuals.

(3) The Marine Corps Technical Publications website is located at:

https://portal.logcom.usmc.mil/sites/pubs/default.aspx.

c. Reconciliation Process. The supply section will reconcile their

portion of the units Publication Listing (PL) and Internal Distribution

Control Form with the DCP upon receipt of the quarterly issuance of NAVMC

2761, Catalog of Publications; the SL 1-2/1-3, Index of Publications

Authorized and stocked by the Marine Corps; PLMS, or MCPDS and Marine Corps

Bulletins in the 5600 series. This reconciliation will include a validation

of those publications and directives on hand and on order. Units which

maintain the PLMS are not required to maintain quarterly copies of the

SL 1-2/1-3 or NAVMC 2761.

11. Standing Operating Procedures (SOP). MSCs and equivalent higher

headquarters shall ensure that local SOPs are established and published for

internal supply management and operations. These SOPs should focus on

promulgation of geographically unique local procedures (e.g., building

numbers and points of contact) or more stringent and detailed policy. Local

SOPs should not paraphrase or reproduce policy/procedures in Marine Corps

directives and users manuals. Battalion/squadron level SOPs are not

mandatory. Instead turnover files and/or desktop procedures shall be

established and maintained current.

MCO 4400.150

29 JAN 2014

1-18 Enclosure (1)

12. Desktop Procedures and Turnover Folders

a. Desktop procedures will help reduce problems that personnel confront

on a daily basis.

(1) The frequent change of personnel within units results in a lack

of expertise and continuity in day-to-day operations. Proper use of desktop

procedures and turnover folders greatly alleviates this situation and

improves the overall efficiency of an organization.

(2) Each unit/section shall prepare desktop procedures for each

billet involving administrative and management functions. It is not intended

for desktop procedures to be all inclusive or formalized, but rather a simple

listing of significant items or notes pertinent to everyday operations within

a particular billet. Normally, they would include such items as current

references, procedures for carrying out required duties, telephone numbers of

individuals who might need to be contacted, and reports required. The

listing of procedures will not be voluminous or a reproduction of users

manuals or Marine Corps orders and directives, as this will tend to

discourage their use. Each will prescribe steps to be followed in the

accomplishment of all billet tasks. Procedures will standardize requirements,

actions, and recordkeeping relevant to the individual's local operating

environment.

b. Turnover folders, along with desktop procedures, greatly assist

incoming personnel in becoming familiar and proficient in their assigned

mission. Supply clerks’ desktop procedures will be included as appendices in

the Supply Officer and supply chief's turnover folders.

(1) A turnover folder will include information about policy,

personnel, status of pending projects, references, management controls,

functioning of the section, ways and means of accomplishing routine as well

as infrequent tasks, and other information of value to an individual assigned

to that billet. Turnover folders will contain, at a minimum, statements

concerning the following:

(a) Title of the billet.

(b) To whom the individual occupying the billet reports and

incumbent billets subordinate thereto.

(c) The mission of the billet (billet responsibilities).

(d) The functions involved in accomplishing the mission

(principal action taken).

(e) Tasks and basic operations regularly performed in

accomplishing specific functions.

(f) List of orders or directives pertinent to the billet.

(g) List of required reports, dates of submissions.

(h) List the relationship with activities both within and outside

of the official chain of command, including unofficial liaison and

MCO 4400.150

29 JAN 2014

1-19 Enclosure (1)

coordinating functions. Brief statements as to the relationship with these

agencies will be included.

(i) Personnel contacts within or external to the command, listing

telephone numbers and/or addresses.

(j) List of internet resources regularly used in daily operations.

Include web addresses and a brief description of each web site and their

relationship to the billet.

(k) Miscellaneous information; for example, administrative or

operational procedures peculiar to the billet, such as dual responsibility

for certain functions or limitations in responsibility or authority within

particular functions. Include any other information that might assist in

carrying out the responsibilities.

(2) Folders will be arranged in such a manner as to permit ease in

changing those sections requiring frequent modification. The degree of

detail included must necessarily be flexible and is subject to the discretion

of organizational COs. The important consideration is that the content of

folders be directed towards rendering maximum assistance to the relief.

c. Desktop procedures and turnover folders may be electronically managed

as long as they are maintained in a centralized location to support full

access.

13. Records Inspection

a. Supply accounting records will be analyzed and inspected by

representatives of the CMC, MSCs or equivalent higher headquarters, and as

directed by the CO.

b. Analyses, metric performance reviews, examinations, and inspections

will determine the effectiveness of supply management, operations, procedures,

and methods which are implemented at the using unit; as well as provide

liaison, assistance, and guidance in the interpretation and application of

Marine Corps supply instructions.

c. Inspections by authorized personnel/agencies ensure command awareness

of management, accountability, and capability to perform the mission.

Inspections should be used as a secondary training and management tool.

14. Policy Waivers. COs may request deviations from Marine Corps

maintenance/supply policy by submitting a written request to DC, I&L (LP) via

the appropriate chain of command. The request must provide a full

justification and impact statement. Waivers may be granted for both

geographical peculiar instances and Marine Corps-wide deviations as may be

deemed necessary by DC, I&L (LP). If approved, waivers will be for one year.

After evaluating the impact of the waiver, DC, I&L (LP) will make appropriate

changes to Marine Corps policy. A request for waiver is not authorization to

deviate from Marine Corps policy; therefore, units shall not deviate until

the waiver has been approved in writing by DC, I&L (LP). Waivers will only

be granted for Marine Corps policy.

15. Training. COs shall ensure that unit Supply Officers have an ongoing

and effective training program established for all aspects of ground supply

MCO 4400.150

29 JAN 2014

1-20 Enclosure (1)

operations within the command, to include responsible officer training as

well as training in organic supply functions. Training will be conducted per

the references, utilizing the Marine Corps Ground Supply Training and

Readiness Manual, reference (ak).

MCO 4400.150

29 JAN 2014

2-1 Enclosure (1)

Chapter 2

Inventory Management and Control

1. General Information

a. The Marine Corps mission requires a high degree of operational

readiness so that tasks assigned can be accomplished. For unit COs to

exercise command responsibility in supply operations, property control must

be meticulously maintained. A CO will not be restricted from exercising the

prerogative to effect intra-command distribution of supplies and equipment to

accomplish operational requirements.

b. Inventory within a consumer-level supply account is by definition

retail inventory. At the consumer-level, retail inventory is further

differentiated into two categories. The categories are: allowance items and

demand supported items.

2. Allowance Item Information. The Marine Corps uses several different

methods of identification and classification in order to distinguish between

allowance items. These include the classes of supply, the National Stock

Number (NSN) or National Item Identification Number (NIIN), the Marine Corps

Stock Number (MCSN), the Table of Authorized Materiel Control Number (TAMCN),

the SAC, and the UID.

a. Classes of Supply. All supplies found in the Marine Corps inventory

are grouped into ten classes and further divided by subclass. See Appendix O.

b. National Stock Number (NSN). The NSN is a 13 digit number that is

used to identify items, and is assigned by the Federal Logistics Information

System (FLIS) to convey specific information about an item of supply. It is

comprised of the Federal Supply Class (FSC), which is four digits, and the

NIIN, which is nine digits.

(1) National Item Identification Number (NIIN). The NIIN is the last

nine digits of the NSN that differentiates each individual supply item from

all other supply items. The first two digits signify the National

Codification Bureau that assigned the NIIN, while the last seven digits are

non-significant and are sequentially assigned by the FLIS.

(2) NSN/NIINs will be assigned to items of supply in the Federal

Supply System (FSS) that are recurrently used, bought, stocked, managed, or

distributed. These items will be named, described, classified, and numbered

so that only one distinctive combination of numerals (an NSN/NIIN) identifies

the same item throughout the FSS. This includes, but is not limited to,

items selected for central management, procurement, and stockage, including

both centrally and locally procured items, and items stocked in the main or

consumer, retail, or wholesale installation to provide supply support for

local requisitions.

(3) The Defense Logistics Agency, Logistics Information Service (DLIS)

assigns all NSNs at the request of the military services, certain federal and

civil agencies, and foreign friendly countries. Each NSN assigned to an item

of supply is the result of a careful review process known as cataloging.

Cataloging is the process whereby each item of supply is named, assigned a

FSC, described to identify all known characteristics and performance data,

MCO 4400.150

29 JAN 2014

2-2 Enclosure (1)

and ultimately assigned a NSN. This information is contained and maintained

in FLIS, managed by the DLIS. DLIS is the only organization authorized to

assign NSNs.

(4) For a complete listing of NSN assignment criteria and request

procedures refer to references (e) and (be).

c. Marine Corps Stock Number (MCSN). A MCSN is a 13-digit designator

assigned by MARCORLOGCOM to support numerous non-traditional support

methodologies, such as Contractor Logistics Support (CLS), Just-In-Time

Inventory and Out-of-Stores Initial Issue. The MCSN provides a capability

that uniformly records item information in all DoD supply chain systems. A

MCSN will only be assigned when it is neither possible nor practical to

assign a NSN or the item is considered to be excluded from the Federal

Catalog System (FCS) as indicated in reference (e). This includes, but is

not limited to, items procured on a one-time basis for immediate use in

research and development, experimentation, construction, installation or

maintenance, and items being fielded prior to the availability of technical

data to support cataloguing actions. For a complete listing of MCSN

assignment criteria and request procedures refer to reference (be).

d. Table of Authorized Materiel Control Number (TAMCN). The TAMCN is the

chief method of identifying allowance items, and is assigned by HQMC. There

can be several NSN/NIINs that fall within the same TAMCN (e.g., D01987K,

Truck Cargo 7T). The TAMCN consists of three elements: the commodity

designator, the item number, and the class (and subclass of supply). TAMCNs

typically fall under one of five commodities (Communications/Electronics,

Engineer, General Supply, Motor Transport, and Ordnance), and four types of

property. See Appendix P for a detailed listing.

(1) Type 1 TAMCN items are defined as non-expendable military

equipment with allowances established by HQMC based on formal Table of

Organization (T/O) Mission Statements. Type 1 TAMCNs have an "A" through "E"

commodity designator and a catalogued NSN.

(2) Type 2 TAMCN items are defined as non-expendable which are

ancillary to Type 1 TAMCN items with initial allowances established by HQMC

based on local mission requirements. Type 2 TAMCNs have a "H", "J", "K", "M",

and "N" commodity designators and a catalogued NSN.

(3) Type 3 TAMCN items are defined as non-expendable military

equipment which require special measures of control since they are used for

particular conditions or situations (e.g., items which are uniquely required

in cold weather or desert operations). Such items are typically not held at

the unit level, but temp-loaned as the operational status of a unit may

require. Standard Type 3 TAMCNs have a "T" through "X" commodity designators

and a catalogued NSN.

(4) Non-Standard Equipment (NS-E) is defined as non-expendable

equipment that is rapidly acquired and fielded to bridge mission capability

gaps to meet urgent warfighter or garrison requirements. NS-E can be

assigned any TAMCN commodity designator and will always have a MCSN assigned

rather than a NSN/NIIN catalogued within FLIS. If an item has an NSN

catalogued in FLIS, it is not considered NS-E. NS-E can be either tactical

(military equipment) or non-tactical (general property).

MCO 4400.150

29 JAN 2014

2-3 Enclosure (1)

(a) Tactical NS-E is defined as military equipment obtained to

support assigned mission capabilities or force protection through the UNS,

Urgent UNS (U-UNS), Joint Urgent Operational Needs Statement (JUONS), other

commercial purchases authorized by HQMC, or via a loan agreement with another

DoD agency. Tactical NS-E will be accounted for in the ground equipment APSR

(e.g., GCSS-MC). Tactical NS-E can be classified as Standard Tactical NS-E

or Special Item Equipment (SIE).

1. Standard Tactical NS-E are defined as non-expendable assets

obtained through the current development process (i.e., UNS, U-UNS or JUONS)

or with approval from HQMC. These assets can be assigned any TAMCN commodity

designator, but will always have a MCSN until the requirement is properly

vetted by HQMC thru the current development process. When applicable, the

asset will be reassigned a catalogued NSN making it a Type 1, 2, or 3 TAMCN

item.

2. Special Item Equipment (SIE) are defined as non-expendable

assets provided to support Marine Corps commands/activities conducting

special operation missions at the Combatant Command (COCOM) or national

security levels which do not currently have a catalogued NSN/NIIN within FLIS.

They will be assigned a “Q” TAMCN commodity designator and a MCSN, regardless

if those assets were provided to the Marine Corps on a permanent or temporary

basis. Assets provided which have a catalogued NSN/NIIN within FLIS will

receive a Type 1, 2, or 3 commodity designation and is not considered SIE.

(b) Non-Tactical NS-E is defined as general equipment commercially

purchased to support administration, base operations functions, and garrison

support services. This includes government owned NS-E used by service

support contractors whether provided as Government Furnished Property (GFP)

or Contractor Acquired-Government Owned Property. Non-Tactical NS-E is not

considered for program of record candidacy and will be accounted for as

general equipment in accordance with paragraph 19 of this chapter. The

following items are considered Non-Tactical NS-E: inert small arms trophy

weapons, band equipment, garrison use only office equipment (copiers,

scanners, cameras, televisions and monitors, display equipment, etc.) and

ceremonial weapons.

e. Stores Account Code (SAC). The SAC is used to differentiate between

items that are financed through different methods.

(1) SAC 1. Items financed through the Department of the Navy (DON)

stock fund account (SFA) (Marine Corps Division) or Operations and

Maintenance, Marine Corps (O&M,MC), which are normally low cost and high

demand, and are the budget responsibility of the requesting unit.

(2) SAC 2. Repairable secondary items that are stocked, stored,

issued, procured, and repaired at the depot level and are financed through

DoD Working Capital Funds. The customer (requesting unit) submits funded

requisitions and holds the budget responsibility when requesting SAC 2 items

from the depot level.

(a) Modification Kits. Program Manager (PM) procured

modification kits are stocked as SAC 2 items and are used to upgrade weapons

systems quickly and economically. These kits will be issued on a non-

reimbursable basis (i.e. free issue).

MCO 4400.150

29 JAN 2014

2-4 Enclosure (1)

(b) Only SAC 2 controlled items required to support Marine

Special Operations Command (MARSOC) operations with a controlled item code of

“J”, as catalogued by other DoD Agencies, will be captured in the allowance

management information system (i.e., TFSMS) and ground military equipment

APSR.

(3) SAC 3. Military equipment of major importance and major

components which require detailed analysis and examination, are financed

through appropriation other than the DON SFA (Marine Corps Division), and are

not the requesting unit’s budget responsibility.

f. Unique Identification (UID). DoD unique item identification is a

system of marking items delivered to the DoD with unique item identifiers

(UIIs) that have machine-readable data elements to distinguish an item from

all other like and unlike items. For items that are serialized within the

enterprise identifier, the unique item identifier shall include the data

elements of enterprise identifier and a unique serial number. For items that

are serialized within the part, lot, or batch number within the enterprise

identifier, the UII shall include the data elements of enterprise identifier;

the original part, lot, or batch number; and the serial number. Enterprise

refers to the entity (e.g., a manufacturer or vendor) responsible for

assigning unique item identifiers to items. The enterprise identifier is a

code that is uniquely assigned to an enterprise by an issuing agency. Within

the Marine Corps, UID is a 50-character data string that represents the

machine-readable, two-dimensional dot matrix mark which contains all the

pedigree data of that particular item. Some of the pedigree data includes:

serial number, part number, contract number, Commercial and Government Entity

(CAGE) code, DoDAAC, etc. Enterprise efforts continue to leverage UID

technology and capabilities with enterprise serialized item management.

3. Acquisition Objective (AO). Reference (bp) defines AO as the required

quantity of the new item, broken down by unit (to the UIC level of detail)

based on the Concept of Employment/Concept of Distribution and documented in

TFSMS as unfunded requirements in a pending request. This establishes the

total requirement for a TAMCN across the Future Years Defense Plan (FYDP) and

is briefed to the Marine Corps Oversight Council (MROC) for approval. Once

the AO is approved by the MROC it becomes the AAO.

4. Approved Acquisition Objective (AAO). References (f) and (bp) define the

AAO as the quantity of a given item authorized for peacetime and wartime

requirements to equip and sustain U.S. and allied forces. It represents the

total approved materiel quantity for each TAMCN required by all units for its

peacetime and wartime missions. AAOs are categorized into the OPFORs and

Reserves, Supporting Establishment (SE), Depot Maintenance Float Allowance

(DMFA), and War Reserve Materiel Requirement (WRMR) consisting of

prepositioned equipment ashore (e.g., Norway, Kuwait, Albany, etc.) and

afloat (e.g., Maritime Prepositioning Ships (MPS)). Unit COs maintain

records of their respective portion of the currently established AAOs and

changes through the management of Table of Equipment allowances.

5. Allowance Items. Allowance items are military equipment, supply classes

VII and II respectively, and are formally published by DC CD&I, Total Force

Structure Division (TFSD) via the unit T/O&E. Allowance changes are

requested and authorized by the CMC per reference (bp), the Total Force

Structure Process (TFSP) Order. Every unit CO who has an allowance or

MCO 4400.150

29 JAN 2014

2-5 Enclosure (1)

special allowance established by the CMC will maintain a formal account to

control items.

a. Table of Equipment (T/E) Allowance. AAOs for equipment are

represented in TFSMS as T/E allowances. This quantity represents the unit’s

full wartime requirement for the allowance item, at the Unit Identification

Code (UIC) level, against which readiness is to be reported. The T/E

allowance quantity is a critical number since it is the AAO quantity that is

transferred from TFSMS to the APSR for Supply, and reported at the unit

Activity Address Code (AAC) level for centrally managed UNS items.

b. Type 1 Allowances. Except for items managed under a Consolidated

Storage Program (CSP) or when specifically directed by higher authority,

OPFORs and SEs, are required to have all Type 1, SAC 1, T/O&E allowances on

hand, on order, or identified as an unfunded deficiency in the quantities

specified by unit's T/O&E and/or current allowance directives. Type 1, SAC 3

controlled items will be sourced to commands via the ground equipment asset

manager. Thus, all items, regardless of the method of purchase or type of

funds used, which have a HQMC assigned Type 1 TAMCN associated to it, will be

accounted for on unit property records and have associated allowances

formally established. SAC 3 items will be distributed to deficient units

based on operational requirements established by HQMC. A TOECR must be

submitted to DC CD&I (TFSD) via the chain of command to increase, decrease,

add, or delete an established enterprise Type 1 allowance.

c. Type 2 Allowances. Allowances for initial fielding of Type 2 TAMCN

items are established by DC CD&I on units’ T/O&Es; however, MEF/SE/Marine

Forces Reserve (MARFORRES) Commanders do have the flexibility to adjust Type

2 allowance quantities after initial fielding for its respective subordinate

commands. This authorization will be established in writing and reviewed

annually by the MEF/SE/MARFORRES Commander or equivalent higher headquarters

based on mission/geographic location and forwarded to DC CD&I (TFSD) for

TFSMS allowance quantity adjustment via the chain of command and DC I&L (LP).

A TOECR must be submitted to CD&I (TFSD) via the chain of command as required

to add or delete an established enterprise Type 2 allowance (i.e., Type 2

TAMCN allowance does not exist on the unit T/O&E or Type 2 TAMCN item is not

required to be on the unit T/O&E). Approved Type 2 allowances will be on

hand, on order, or identified as an unfunded deficiency.

d. Type 3 Allowances. Such items are typically not held at the unit

level, but temp-loaned as the operational status of a unit may require (e.g.,

items which are uniquely required for cold weather or desert operations).

Units are responsible for requesting and coordinating Type 3 items through

their MSCs.

e. Non-Standard Equipment Allowances

(1) Tactical NS-E Allowances. Allowances for tactical NS-E items,

both standard and SIE, are established by DC CD&I (TFSD) on units’ T/O&Es.

Standard Tactical NS-E allowances will be established during the initial

phase of the current development process (i.e., Research and Development (R&D)

testing). Units in receipt of SIE items will submit a TOECR to DC CD&I (TFSD)

via the chain of command to add the allowance to the T/O&E. Subsequent

allowance adjustments (increases, decreases, or deletions) will be requested

via a TOECR to DC CD&I (TFSD) via the chain of command.

MCO 4400.150

29 JAN 2014

2-6 Enclosure (1)

(2) Non-Tactical NS-E Allowances. Requirements for Non-Tactical NS-E

allowance items will be routed to the installation Personal Property Manager

(PPM) via locally established procedures.

f. Allowances for Consolidated Storage Program (CSP) Managed Equipment.

For most OPFOR units, certain per-individual and unit equipment assets are

managed by a CSP. Such assets managed by the CSP can be further defined as

Individual Combat Clothing and Equipment (ICCE); Chemical, Biological,

Radiological, Nuclear and Enhanced Conventional Weapons (CBRNE); and Soft-

Walled Shelters and Camouflage Netting (SWS&CN) assets. In these situations,

CSP allowances are established based on a consolidation of the supported

unit's T/O&E and the CSP maintains full equipment accountability. In such

cases, the aforementioned T/O&E allowances will remain in TFSMS, but should

not actually be on hand nor accounted for on unit property records (even when

issued from the CSP to support a unit requirement). OPFOR units not

supported by a CSP will maintain equipment in accordance with the guidance

published in this Policy

g. Readiness Reportable Equipment. Readiness reportable equipment is

published annually in reference (as) and readiness reporting policy is

outlined in reference (at). To ensure accurate ground equipment readiness

reporting, visibility, and accountability of T/E assets, command adjustments

may be warranted. Refer to paragraph 7 of this chapter for more information

on command adjustments.

h. Special Allowances. Authority to issue equipment from MARCORLOGCOM

inventory stores to fill a temporary Marine Corps unit requirement may be

granted via the establishment of a special allowance. Formal request for

special allowances will be routed by the gaining unit and endorsed by the

chain of command to DC I&L (LP) via MARCORLOGCOM. Request will contain the

UIC; AAC; impact and explanation to unit mission; item description (TAMCN,

NSN, nomenclature, current authorization, current on-hand, recommend

adjustment); justification; ship to address; accountable point of contact

(POC) (Supply Officer); and any additional supporting documents. Special

allowances are intended to fill emerging short term operational requirements

(e.g., R&D testing) and approvals will not exceed one year. Enduring

requirements requiring long term adjustment to established allowances will

continue to be submitted via a TOECR to DC CD&I (TFSD) via the chain of

command for staffing through the development process in accordance with

reference (av). Units with an approved special allowance are directed to

initiate a positive command adjustment in accordance with paragraph 7 of this

chapter and to maintain a copy of the approved special allowance

documentation on file.

i. Training Allowances (T/As). T/As are unique to the Reserve Component

and are defined as the minimal amount of T/E assets required to conduct unit

training based on Mission Essential Tasks (METs) in consideration of facility,

manpower, fiscal and maintenance constraints. T/As are established only for

Type 1 TAMCN items necessary to maintain training to core METs. It is

considered a subset of the unit's wartime requirement. Reserve units are not

required to maintain full T/E allowances, but instead are authorized the

establishment of a T/A for Type 1 TAMCN items. T/As will be established, in

writing, by the Commander, Marine Forces Reserve (COMMARFORRES). This

authority may be delegated, in writing, to the MSC level (e.g., CG, 4th

Marine Division).

MCO 4400.150

29 JAN 2014

2-7 Enclosure (1)

(1) T/As will be reflected in the unit's property records using a

command adjustment in accordance with paragraph 7 of this chapter. The total

allowance field in the ground equipment accountability APSR will reflect that

quantity as approved by the COMMARFORRES or MSC Commander. Total T/A will

not exceed the aggregate of MARFORRES T/E allowances.

(2) T/As will be reviewed and updated bi-annually (i.e., once every

two years).

(3) Equipment represented by the delta between T/A and T/E will be

held at MARCORLOGCOM as In-Stores assets if MARCORSYSCOM procurement actions

have been completed or will be identified as unfunded WRMR deficiency.

j. Research and Development (R&D). Items maintained/provided for R&D by

MARCORSYSCOM will be accounted for per this manual. Refer to paragraphs 5e

and 5h of this chapter and paragraph 9b of chapter 6 for additional

information.

k. Other Types of Allowances. Allowance authorizations for other types

of materiel may exist; however, all legitimate allowance authorizations must

derive from HQMC, either directly or indirectly. Further information

concerning certain other types of authorized materiel can be found in

chapters 4 and 6.

6. Allowance Item Management. References (c) and (f) require a minimum 98

percent physical inventory accuracy rate to be achieved and maintained for

the management of allowance items; and 100 percent accuracy for classified or

sensitive property, and items with a Controlled Item Code of “A”. Allowance

and serially managed items, to include parent/child relationships, will be

accounted for in the appropriate supply APSR (e.g., GCSS-MC for military

equipment or DPAS for general equipment). In most instances, these items

will be issued to a RO or RI for custody/subcustody.

a. CO. The CO of a unit having a consumer-level supply account has the

overall responsibility for ensuring accounting records are current, complete

and accurate. To that end, the CO must ensure sound supply procedures are

conducted in a complete and timely manner, to include all applicable

inventories, submission of all applicable reports, completion of

investigations, processing of adjustments, and the proper issue and recovery

of equipment. In addition, only the CO has the authority to approve certain

adjustments to the accounting records, as outlined in paragraph 11b of this

chapter.

b. Supply Officer. The Supply Officer manages property accounting

functions on behalf of the CO, and has the responsibility to ensure that

accounting systems and records are accurate and updated at all times. The

Supply Officer is the official conduit for equipment coming in to and out of

a unit and will approve the custody of unit property. The Supply Officer

will ensure that all supply actions are recorded on the appropriate forms or

documents. The Supply Officer has the authority to approve certain

adjustment records, unless otherwise directed by the CO, as outlined in

paragraph 11b of this chapter. Supply officers will ensure the following

allowance item management principles are applied:

MCO 4400.150

29 JAN 2014

2-8 Enclosure (1)

(1) On a monthly basis, validate allowance item information (e.g.,

TAMCNs, NSN/NIINs, nomenclature, authorized quantities, etc.) on the unit’s

T/O&E is accurate and properly recorded on the unit’s supply APSR.

(2) Ensure that physical inventories are being conducted as required

(e.g., annual, quarterly CMRs, RO turnovers, etc.) and that accountable

records are being adjusted accordingly.

(3) Track monthly serialized inventories (MSI) of small arms and

report to the Commanding Officer when monthly inventories of small arms are

not conducted. Ensure account and custody records are being adjusted

accordingly, and weapons reporting procedures are being followed in

accordance with references (bq) and (ce).

(4) Serve as the unit RO for loans received from external commands

and agencies (e.g., Unit general equipment from the Base Commander or Theater

Provided Equipment from the Theater Property Book Office in contingency

environments).

c. RO. Unit COs with consumer-level supply accounts will appoint ROs in

writing for the command. The RO should be an individual having

administrative command and/or control over all personnel who will use

assigned equipment. ROs will not be assigned equipment or supplies used

outside their span of control. ROs will ensure that the following supply

management principles are applied (as well as those identified in chapter 1):

(1) Receipt for all on hand equipment.

(2) Maintain assigned equipment in a ready-for-use and serviceable

condition.

(3) Account for equipment received and maintain a record of custody

for such equipment on a CMR.

(4) Report changes of equipment custody to the Supply Officer on an

as-occurring basis. Additionally, a new RO will be appointed, in writing, by

the CO when the RO is separated from assets for more than 60 calendar days.

(5) Request necessary investigative action in writing for equipment

abuse, gains, or losses, via the Supply Officer, to the CO. See paragraph 4

of chapter 5.

(6) Conduct quarterly CMR reconciliations with the supply section.

This requirement may be semi-annual if approved in writing by unit CO.

(7) Assist Supply Officer in conducting periodic inventories, at

least annually, for all equipment assigned to the account. The annual

inventory should be part of the command-wide annual physical inventory and

should coincide with one of the quarterly CMR reconciliations.

(8) When sub-signing equipment (selected items on the RO CMR) to a RI

internal to the unit, the RO will ensure the RI is appointed in writing and

signs for all applicable equipment.

(9) If an RO elects to delegate their authority for the

receipt/request/turn-in of equipment affecting their CMR, a NAVMC 11869 will

MCO 4400.150

29 JAN 2014

2-9 Enclosure (1)

be prepared by the RO and forwarded to the Supply Officer in accordance with

paragraph 5f of chapter 1. The NAVMC 11869 must be current and certified

quarterly by the RO (semi-annually if approved in writing by the unit CO).

If no changes have occurred during the quarter, the RO may certify by

initialing and dating the current NAVMC 11869 on file with the Supply Officer.

(10) Validate configuration management (parent/child relationship) by

NIIN and serial number within the supply APSR for each item on hand.

(11) Request a change of RO from the Supply Officer and conduct a

joint inventory no less than 30 calendar days prior to your date of relief.

The account must be transferred prior to your transfer from the command.

7. Command Adjustment Management

a. Purpose. The purpose of command adjustments is to facilitate

management and provide flexibility/visibility in the APSR for Task Organized

units and units with an approved training allowance, per paragraph 5i of this

chapter. Command adjustments assist in providing accurate ground equipment

readiness reporting, visibility, and accountability of T/E assets transferred

between MAGTF organizations/activities. All types of accountable equipment,

unless otherwise specified below, are eligible for command adjustments when

transferred from supporting organizations to supported organization’s

property records.

b. Accountable Property System of Record (APSR). Reference (bp)

establishes TFSMS as the authoritative information system for Marine Corps

ground equipment AAO/Table of Equipment allowances. Command adjustments do

not change the approved AAO/Table of Equipment allowance quantities

registered within TFSMS. The APSR for ground equipment accountability (on

hand quantities) is the asset management system for supply (e.g., GCSS-MC for

military equipment). A command adjustment will not change the on-hand

quantity, but will modify (add to or subtract from) the allowance in the

ground equipment accountability APSR (e.g., MAL allowance field in the GCSS-

MC).

c. Policy. Command adjustments are not intended to be a method for

correcting outdated or erroneous allowances. Command adjustments are used by

exception in limited circumstances as delineated in this policy to capture

unit requirements. The following paragraphs outline the policy and occasions

where command adjustments will be used.

(1) All MARFOR and SE Commanders having a consumer-level supply

activity will adhere to this policy for managing command adjustment

allowances. Guidance provided in reference (at) will be followed for

readiness reporting of ground equipment in order to provide a more consistent

and accurate readiness assessment of Marine Forces.

(2) Command adjustments for task organized units will be approved, in

writing, by the first common Commanding General in the chain of command

(MARFOR, MEF, MSC, or SE Command).

(3) In support of proper asset management as identified in reference

(at), supporting units that transfer equipment to task organized units are

directed to continue reporting readiness against AAO/Table of Equipment

allowance quantities in TFSMS. As such, supporting units will not induct

MCO 4400.150

29 JAN 2014

2-10 Enclosure (1)

negative command adjustments for the transfer of equipment to task organized

units.

(4) In support of proper asset management, supported task organized

units that receive equipment transfers from supporting units are directed, if

applicable, to report readiness against approved requirements per reference

(at). As such, supported task organized units will induct positive command

adjustments in the supply APSR to accurately capture approved requirements

for the transfer of military equipment from supporting units.

(5) In support of proper asset management, Marine Force Reserve units

with approved T/As, in accordance with paragraph 5i of this chapter, are

directed to continue reporting readiness against T/E quantities in TFSMS per

reference (at); however, these units will induct negative command adjustments

to subtract from their TSFMS allowances in order to establish the proper T/A

within the supply APSR.

(6) Occasions for Command Adjustments. Command adjustments for

occasions listed below are authorized for approval below the HQMC level.

(a) Positive command adjustments for the formation of task

organized units with an approved Equipment Density List (EDL) (e.g., MEUs,

annual US-South American Allied Exercise (UNITAS), temporary inventory plus-

up for unit deployment, etc.).

(b) Positive command adjustments for the initial formation of a

permanent long-standing detachment with an approved EDL (e.g., EEAP, Combined

Arms Training Center (CATC) Camp Fuji, Combat Logistics Company (CLC)).

Enduring requirements in excess of 1 year with no known end date require long

term adjustment to established allowances and will continue to be submitted

via a TOECR through the development process in accordance with reference (av).

(c) Negative Command Adjustments of T/E allowances to reflect

authorized T/As. This applies only to reserve units per paragraph 5i of this

chapter.

(d) Positive command adjustments for DC I&L approved special

allowances.

(7) Duration of Command Adjustments.

(a) Command adjustments will not be authorized for less than 120

calendar days. Short term commitments of equipment should be executed

utilizing temporary loan procedures outlined in paragraph 9 of chapter 6.

(b) Command Adjustments will end upon any of the conditions

listed in the sub-paragraphs below.

1. One year from authorization date. Authorization can be

extended by the original approval authority.

2. Tasked organized mission is completed and unit is

standing down.

3. Supported unit or higher headquarters identifies that

the assets are no longer required to support the mission.

MCO 4400.150

29 JAN 2014

2-11 Enclosure (1)

4. Equipment is replaced at the supported unit by a

different TAMCN.

5. Expiration of the DC I&L approved special allowance or

conversion to T/E allowance (i.e., TOECR was approved and allowance was

increased).

8. Remain Behind Equipment (RBE). Reference (a) defines RBE as unit

equipment left by deploying forces at their bases when they deploy.

Reference (az) further defines and establishes policy for RBE when units

deploy as part of a MAGTF using prepositioned equipment. All unit equipment

not deployed forward will continue to be accounted for in accordance with

this policy. COs deploying forward of their RBE shall be formally relieved

of their Accountable Officer responsibilities for the RBE. The criteria for

Accountable Officer appointment for RBE are addressed in paragraph 8 of

chapter 1 of this policy. Further, the outgoing Accountable Officer will

issue a letter of Certification of Relief reporting the status of supply

operations to the interim Accountable Officer in accordance with paragraph 7

of chapter 1 of this policy.

9. Inventory. Physical inventories are management tools for ensuring

effective control, accounting, and physical security of materiel and are a

valuable part of the CO’s Physical Internal Control Program. All materiel

maintained on hand will be inventoried at a minimum annually, unless

otherwise stated below, in order to determine the accuracy of the formal

account property records (or APSR).

a. General. Accountable materiel, per paragraph 9 of chapter 1, on hand

at supply and property control activities; retail activities (intermediate

and consumable); RSAs (Consolidated Issue Facilities or CSPs), or other

service provided storage facilities, excluding Defense Logistics Agency (DLA)

managed inventory) managed by MARCORLOGCOM or Marine Corps Activities; MCPP-N;

Marine Corps Distribution Activities or depots; MPS; and Installation support

activities co-located with Marine Corps Maintenance Depots will be

inventoried once a year according to reference (d). This includes activities

that manage newly provisioned materiel; depot maintenance float materiel; and

government property managed by commercial contractors, other DoD agencies,

and coalition partners. The following inventory guidelines apply:

(1) All accountable materiel will be accounted for in an APSR and

inventoried annually or more often when prescribed by other regulatory

guidance, or directed by the CO/Accountable Officer, or Supply Officer.

(2) All accountable materiel will be physically inventoried incident

with the change of the CO, Supply Officer, or Responsible Officer in

accordance with paragraph 7 of chapter 1. The inventory associated with the

change of CO or Supply Officer will be documented, the results reconciled

with the APSR, and may be used in lieu of the annual command-wide physical

inventory requirement.

(3) Inventories will be conducted as annual, cyclic or spot

inventories, as described below. The Supply Officer will ensure inventories

are conducted when required.

MCO 4400.150

29 JAN 2014

2-12 Enclosure (1)

(4) Inventory adjustments to the accountable property records, or

requests for investigative action will be initiated on an "as occurring"

basis in accordance with paragraph 11 of this chapter.

(5) The person having possession of, or having command/direct

responsibility over the property is responsible for the physical conduct of

the inventory (i.e., the RO will physically inventory all accountable

materiel listed on their respective CMR and within appropriate sub-

inventories).

(6) A record of the inventory, and all adjustment documents resulting

from the inventory, will be maintained by the Supply Officer in accordance

with paragraph 11i of this chapter.

(7) Equipment which has been borrowed from other organizations must

not be included in physical inventories; however, accountable materiel on the

accountable records that is on loan to another organization must be included.

b. Inventory requirements. All accountable materiel within the custody

of the command/activity will be inventoried. A summary of inventory

requirements is as follows.

(1) Nonexpendable and expendable items held for issue as defined in

paragraph 9a of chapter 1 will be inventoried annually and as directed by

references (bq) and (ce). This includes controlled items as defined in

paragraph 9a(1)(a) of chapter 1 and classified, sensitive, and pilferable

items as described in paragraph 12g of this chapter.

(2) Materiel requiring a high degree of protection and control

because of statutory requirements or regulations.

(3) High-value, highly technical, or hazardous items.

(4) Real property heritage assets will be inventoried at least once

every 3 years.

(5) Real property and stewardship land will be inventoried at least

once every 5 years.

(6) Marine Corps property may be furnished to, or acquired by,

contractors under the provisions of a contract as GFP. Property provided to

a contractor as GFP remains Marine Corps property centrally managed by the

Management Control Activity (MCA) per reference (bd). The MCA will ensure

the contractor performs, records, and discloses physical inventory results as

set-forth within the contract. The MCA will semi-annually report GFP

inventory and financial value to DC I&L (LP) in accordance with reference

(bd).

(7) Marine Corps property may be furnished to external DoD agencies

or coalition partners as property furnished to a third party. Marine Corps

property provided to DoD agencies or coalition partners remains Marine Corps

property centrally managed by the MCA per reference (bd). The MCA will

ensure the gaining organization performs, records, and discloses physical

inventory results as set-forth within the binding agreement. The MCA will

semi-annually report GFP inventory and financial value to DC I&L (LP) in

accordance with reference (bd).

MCO 4400.150

29 JAN 2014

2-13 Enclosure (1)

(9) A 100 percent inventory will be conducted on Marine Corps

equipment and materiel positioned on MPS when ships are downloaded in port

during cyclic maintenance vessel berthing.

(10) Installation support activities co-located with Marine Corps

Maintenance Depots will inventory their materiel assets using the inventory

rules in accordance with ref (p) if the materiel is warehoused and inventory

management is the responsibility of DLA. If not, this materiel will be

inventoried annually and will be reported to DC I&L (LP) during the semi-

annual and annual OM&S reporting schedule during the months of April and

January.

c. Inventory Types

(1) Annual. Annual physical inventories act as the CO’s/Accountable

Officer’s physical internal control program for ensuring the accurate

accountability of accountable materiel. An annual physical inventory of all

accountable materiel, by serial number for all items serially managed, is to

be completed during each fiscal year or as identified in paragraph 9b above

to ensure accuracy in unit property records, and to ensure accuracy in the

reporting of mission critical assets to the Marine Corps financial statement.

(2) Cyclic. Due to the volume of assets warehoused and managed,

RSAs may perform cyclic inventories in lieu of the annual inventory. Cyclic

inventories will be conducted on a monthly, quarterly, or semi-annual basis.

The frequency of cyclic inventories will determine the required percentage of

total inventory to be inventoried each cycle. Monthly cyclic inventories

will include 10 percent of total inventory; quarterly cyclic inventories will

include 25 percent of total inventory; and semi-annual cyclic inventories

will include 50 percent of total inventory per inventory cycle.

(a) Care must be taken to ensure that the same items/serial

numbers are not repeatedly inventoried.

(b) Procedures, reporting requirements, and file retention for

cyclic inventories will be consistent with annual inventory procedures as

discussed in paragraph 9d below.

(3) Spot. A spot inventory is a one-time physical inventory of

selected items outside of a scheduled inventory (annual or cyclic). It is a

tool for use by the Supply Officer and/or CO/Accountable Officer to address

suspected differences between the APSR and actual on-hand balances.

Discrepancies will be addressed in accordance with paragraph 11 of this

chapter; however, unlike annual and cyclic inventories, a summary of the

results is not required to be formally reported to the CO/Accountable Officer

for certification/endorsement nor reported to the next higher headquarters

for trend analysis.

d. Annual Inventory Execution. General procedures and responsibilities

for conducting an annual physical inventory are provided below.

(1) Annual physical inventories must be viewed as a command-wide

event and thus should be included in the unit training schedule when training

operations are at a minimum. The command-wide physical inventory should be

MCO 4400.150

29 JAN 2014

2-14 Enclosure (1)

the focus of effort for the supply section, all ROs, and the CO as the

overall Accountable Officer.

(2) The physical inventory must include all accountable materiel

managed by RO’s, and all accountable materiel physically managed by the

supply section (note: this does not apply to non-tactical NS-E unless during

the conduct of a PPM directed inventory).

(3) All equipment, whether currently accounted for or not must be

identified and included in the inventory.

(4) The annual physical inventory should coincide with a quarterly

CMR reconciliation, or with scheduled location information file validations

at RSA’s, e.g. MARCORLOGCOM/Barstow, etc.

(5) Supply Officer Responsibilities

(a) Act as overall coordinator of the annual physical inventory

and ensure proper procedures are followed to accurately execute and document

the inventory.

(b) Begin the physical inventory by providing current CMR’s,

location information file property, and inventory instructions to all

appointed RO’s in the command. RO’s will be given 15 calendar days to

physically sight and inventory all assets within their control.

(c) As separate RO inventories are completed, the Supply Officer

will conduct reconciliations with each RO in accordance with paragraph 11b(2)

of this chapter. CMR discrepancies will be addressed in accordance with

paragraph 11b(3) of this chapter.

(d) Concurrent with RO inventories, or for those commands

responsible for warehousing accountable materiel, conduct a wall-to-wall

inventory of all accountable materiel that is physically managed by the

Supply Officer (i.e., not issued to an RO).

(e) Once all warehouse locations, CMRs, and/or RSA inventories

are completed, conduct reconciliations in order to validate the accuracy of

on hand assets and serial numbers versus what is identified on the APSR.

Detailed causative research will be conducted in accordance with paragraph

11c of this chapter in order to resolve all discrepancies identified during

the inventories.

(f) Upon conclusion of inventory, prepare a naval letter stating

the results of the inventory and the CO’s/Accountable Officer’s certification

letter, refer to paragraph 9b(7) below. For all inventory discrepancies

where causative research was non-conclusive, provide recommendations to the

CO/Accountable Officer for resolution. The CO/Accountable Officer will

direct appropriate adjustments or initiate a command directed investigation

in the certification letter.

(g) Per references (k) and (bq), MLSR report, or the Financial

Liability Investigation of Property Loss (DD Form 200) reporting requirements,

will not be subjected to delays pending the outcome of internal

investigations or causative research. Such reporting requirements will be

MCO 4400.150

29 JAN 2014

2-15 Enclosure (1)

accomplished immediately upon discovery of the loss and in accordance with

paragraph 13 of chapter 5.

1. MLSR and DD Form 200 reportable items include all Marine

Corps Automated Readiness Evaluation System equipment as published in the

Marine Corps Bulletin (3000 series), regardless of dollar value.

2. The reporting of MLSR or DD Form 200 incidents via message

is independent of normal supply survey/adjustment procedures or command

investigations. COs are still required to initiate appropriate

investigations.

(h) Adjustments to the balance records when directed by the CO

through certification to the inventory results letter will be conducted in

accordance with paragraph 11g of this chapter. When directed by the CO,

initiate CO directed investigative action in accordance with paragraph 4a of

chapter 5. Adjustments to the balance records when direct by the CO through

endorsement of a completed investigative report will be conducted in

accordance with paragraph 11g of this chapter.

(6) Responsible Officer Responsibilities

(a) Once a current CMR or a location information file (for RSAs)

is provided by the Supply Officer, conduct a physical inventory of all

accountable materiel assigned to the account within the 15 calendar day time

period and reconcile the results against what is listed on the CMR or

location information file in accordance with paragraph 11b(2) of this chapter.

(b) Report all discrepancies, to include variances in NSN,

quantity, or serial number, to the Supply Officer in accordance with

paragraph 11b(2) of this chapter.

(c) Support the Supply Officer in the conduct of causative

research to resolve all discrepancies.

(7) Reporting Inventory Results and Commanding Officer/Accountable

Officer Certification

(a) The results of the inventory, to include Supply Officer

recommendations for adjustments to the balance records when causative

research was non-conclusive, will be documented and provided to the

CO/Accountable Officer for certification/endorsement. At a minimum, the

following documents will be provided and points will be addressed.

1. State the total dollar value of the account prior to

inventory.

2. State the total dollar value and percentage (compared to

initial account value) of net losses/gains.

3. State the total dollar value and percentage (compared to

initial account value) of net losses/gains attributed to administrative

errors as a result of causative research.

MCO 4400.150

29 JAN 2014

2-16 Enclosure (1)

4. State the total dollar value and percentage (compared to

initial account value) of net losses/gains resulting from recommended

adjustments due to non-conclusive causative research.

5. State the total dollar value and percentage change

(compared to initial account value) of the account after the inventory.

6. Make gain/loss recommendations resulting from non-

conclusive causative research.

7. State opinions, if any, as to the cause of variances for

which causative research was non-conclusive.

8. State any corrective action required or initiated to

eliminate future variances.

9. Include as an enclosure, the NAVMC 11867 to identifying

the appointed individuals identified in this chapter.

(b) The CO/Accountable Officer will review the Supply Officer’s

Inventory Results letter and endorse the results via certification letter and

will include, if applicable, directive comments to adjust property records,

directive comments to initiate a command directed investigation, and/or

corrective actions to strengthen internal control procedures in order to

reduce inventory variances in the future

(c) The Supply Officer’s letter documenting the results of the

annual physical inventory; the listing of all inventory gain and loss

transactions as a result of the inventory; the CO/Accountable Officer

certification; and all money value gain loss notices (MVGL/N) applicable to

the annual physical inventory will be retained on file in accordance with

paragraph 11i of this chapter.

(d) A copy of the annual physical inventory results letter and

CO’s Certification will be forwarded to the next higher headquarters for

trend analysis.

(8) Trend Analysis. In accordance with reference (f), MARFORs (to

include MEF and MSC’s) and major SE commands (to include Marine Corps Combat

Development Center (MCCDC), MARCORLOGCOM, MARCORSYSCOM, TECOM, and MCICOM)

are required to obtain, track, and trend the results of annual inventories

performed by units/activities for five years. This data will be used to

monitor and improve unit equipment accountability. At a minimum, the

absolute values associated with paragraph 9d(7)(a)2 above shall be graphed,

with the absolute value of inventory adjustments (total value of gains plus

total value of losses) displayed along the y-axis and the inventory

completion dates displayed along the x-axis.

10. Warehousing. Units will maintain all equipment and supplies in a state

of readiness and in suitable storage containers (if applicable). All items

shall be inspected at least annually for serviceability (more often for

shelf-life sensitive items), adequate preservation, and item identification

(accuracy of tactical/embarkation markings and location designators), and

unit of issue identification, as appropriate. Periodic inspections shall be

made based on the CO's judgment of climatic conditions, container exposure,

and item deterioration/shelf-life considerations to ensure that all items are

MCO 4400.150

29 JAN 2014

2-17 Enclosure (1)

maintained in a ready for-issue condition. Unit warehousing operations shall

be conducted in accordance with references (f), (m), and (bi).

11. Balance Record Transactions, Adjustments, Causative Research and Record

Retention

a. Change of Custody Transactions. Property accounting records are to

be kept current on an as-occurring basis. To facilitate this requirement,

change of custody transactions will be submitted as occurring (within one

work day) of the physical change of custody of equipment. Furthermore, a

record of all transactions indicating a change in custody of materiel (i.e.,

receipts, issues, redistributions, and disposals) will be retained with all

supporting documentation for an audit trail, regardless of dollar value, in

accordance with paragraph 11i of this chapter from the date the transaction(s)

processed in the APSR.

(1) Audit Trail. Supporting documentation will be retained to show

that the materiel reflected on the change of custody transaction was properly

delivered, issued, or disposed of. Supporting documentation can consist of

receipt documentation or Letters of Unserviceable Property issued in lieu of

return of property from repair. Supporting documentation must contain, at a

minimum, the NSN/NIIN, quantity, serial number and UII (if applicable),

document number, condition code of the materiel, signature of the person

authorized to accept custody of the materiel, and date received. When the

supporting documentation contains no document number or a document number

different from that of the transaction used to adjust the property record, a

copy of the associated change of custody transaction(s) will be made and

attached as supporting documentation to the voucher. Files providing an

audit trail will be maintained in such a manner as to easily cross-reference

between change of custody transaction(s) and supporting documentation.

(2) Change of Custody Transactions With No Supporting Documentation.

When a change of custody transaction has been processed/posted which changes

the unit's on hand balance, but no supporting documentation can be found,

causative research will be conducted to determine the circumstances resulting

in the missing documentation. When warranted, a request for investigation

may be required and a MLSR report may be required per reference (bq) and

paragraph 13 of chapter 5. The change of custody transaction will be

vouchered per chapters 2 and 5 of this Policy.

b. Balance Record Adjustments. The accounting record must be

brought into alignment with the actual on hand quantity upon conclusion of

required inventories and at any other time imbalances are discovered. The

actions outlined in paragraphs 11b(1) through 11b(3) apply to variances

discovered through Supply Officer inventories or identified by the RO.

(1) Vouchering Gain and Loss Transactions. The adjustments

identified in the below sub-paragraphs require authorization from the

Accountable Officer in writing prior to the induction of a physical gain or

loss transaction (i.e., the value of the adjustment increases or decreases

the value of the inventory). Accountable Officers may elect to establish

a lower dollar value threshold for their personal review, but in no case will

a higher threshold be established. Unless otherwise directed by the

Accountable Officer, Supply Officers have the authority to authorize

adjustments below the identified thresholds in sub-paragraphs (b) and (c).

MCO 4400.150

29 JAN 2014

2-18 Enclosure (1)

(a) Sensitive and controlled items (both locally and Marine Corps)

regardless of dollar value.

(b) Pilferable items with a unit price of $2,500 or more, or a

total dollar value per transaction of $50,000 or more.

(c) Non-controlled, non-sensitive, and non-pilferable items with

unit price of $5,000 or more, or a total dollar value per transaction of

$50,000 or more (serialized and non-serialized).

(2) CMR Reconciliations. When an RO receives a new CMR and CMR

update letter, all on hand assets and USMC serial numbers will be verified

and reconciled against what is listed on the CMR. A signed and dated copy of

the CMR and CMR update letter shall be returned to the Supply Officer with

the bottom of each page of the CMR initialed. The RO will report all

discrepancies in a Discrepancy Letter to the CO via the Supply Officer,

identifying errors that exist on the CMR and fully stating the circumstances

of each discrepancy. This action will be completed within 15 calendar days

of having received the new CMR update letter.

(a) If the Supply Officer and the RO agree that the CMR is in

error and there is supporting documentation, the Supply Officer will make

appropriate pen changes (NSN/NIIN, serial number, quantity) to the CMR and

both the Supply Officer and RO will initial the changes.

(b) If the Supply Officer and RO do not agree on disputed CMR

errors as identified in the Discrepancy Letter, the RO will still sign the

CMR and CMR update letter. The CMR will be annotated with the statement

“Discrepancy Letter dated DD MMM YY has been submitted” and both the Supply

Officer and RO will initial the statement. Since the RO will be

simultaneously reporting the discrepancies in writing, it will be this letter

that documents the RO's position on disputed quantities.

(3) CMR Discrepancies. All discrepancies identified to the CO in an

RO Discrepancy Letter will be endorsed by the Supply Officer and forwarded to

the CO.

(a) If discrepancies exist which are supported by documentation

and were not corrected prior to the reconciliation process, the Supply

Officer shall make the necessary adjustments to the CMR to reflect the true

physical inventory within five work days. Any discrepancy that does not have

supporting documentation shall have causative research conducted to determine

the nature of the variance. The Supply Officer will notify the CO of such

actions in their endorsement to the RO’s Discrepancy Letter.

(b) Unless the CO has stated otherwise, the Supply Officer is

authorized to approve adjustments that do not meet the criteria in paragraph

11b(1), once all causative research has been completed. The Supply Officer

will direct such adjustments and notify the CO of such actions in their

endorsement to the RO’s Discrepancy Letter.

(c) If discrepancies still exist after causative research, the

Supply Officer shall make a recommendation to the CO as to their recommend

disposition in the Supply Officer’s endorsement of the RO’s Discrepancy

Letter within five work days.

MCO 4400.150

29 JAN 2014

2-19 Enclosure (1)

1. The Supply Officer will identify on the endorsement, by

TAMCN/NSN/NIIN, the results of the causative research and make appropriate

recommendations to adjust the property records or whether or not he/she feels

an investigation is warranted.

2. The CO will review the Supply Officer’s recommendations

and direct the Supply Officer to make appropriate adjustments to the property

records or initiate a JAGMAN investigation within five work days. If the CO

determines an item should be investigated, refer to paragraph 4a of chapter 5

for follow on action.

(d) Known loss, damage, or destruction of government property is

not a discrepancy to be reported by the RO in a Discrepancy Letter. In these

situations, the RO will submit a Request for Investigation to the CO via the

Supply Officer in accordance with paragraph 4b of chapter 5.

c. Causative Research. Causative research may identify administrative

errors that have been made, which may negate the need to investigate and/or

process a gain/loss transaction. Causative research also assists in

determining the correct type of adjustment transaction required. More

importantly, causative research helps to identify procedural deficiencies

that can then be corrected to prevent waste or theft and to improve supply

support. It is always possible to adjust the balance record by means of a

properly vouchered gain/loss transaction; however, this method will not be

used until the required research into the cause of the variance has been

conducted. The benefits of causative research must be weighed against the

time required to perform it. Timely adjustment of the balance record is

necessary so that action to dispose of excesses and replenish deficiencies

can occur. This paragraph establishes minimum requirements for causative

research of variances at all consumer-level activities.

(1) Post-Count Validation. Verify the accuracy of the count by

considering all assigned locations, to include: items in laundry, items in

repair, items temp-loaned to external organizations, temporary holding areas,

Unit of Issue (U/I)/unit of measure and NSN/NIIN, to include FSC changes to

cataloging data, and on hand balances reflected in other condition codes.

(2) Causative Research Required. Causative research is required on

NSN/NIINs with variances from the official accounting records for all

inventories (annual, cyclic, and spot) meeting the criteria in paragraph

11b(1) of this chapter.

(3) Change of Custody Transaction/Audit Trail File Research. Review

all transactions that have been processed or posted within the last two years

or since the last annual inventory, whichever is more recent. Compare the

transactions with the proof of delivery file and attempt to identify

administrative errors, such as double processing/posting of receipts, actual

issues (as shown by supporting documentation) without a corresponding change

of custody transaction, etc. If appropriate, submit the correct change of

custody transaction to adjust the balance record. Vouchered administrative

gain/loss transactions may also be required. Causative research ends when

the administrative cause of the variance has been found or when, after review,

there are no conclusive findings.

(4) Causative Research Results. The results of causative research

will be considered representative of the account as a whole. For example, if

MCO 4400.150

29 JAN 2014

2-20 Enclosure (1)

administrative errors were found for most of the variances, then attention

may be required in receipt processing or issue control. However, if

causative research is inconclusive, especially for pilferable items, then

theft must be suspected as a cause. The Supply Officer will prepare a

Request for Investigation summarizing the results of the inventory,

subsequent causative research, and any recommendations. Causative research

results will also be reflected on adjustment documents. These same

statements will be either annotated or attached to the supporting MVGL/N once

adjustments have been approved by the CO and Supply has inducted the

appropriate gain/loss transaction.

(5) Incidental Gains/Losses Other Than as a Result of Annual

Inventories. Individual explanatory statements/requests for investigation

will be prepared by the Supply Officer. Explanatory statements are

appropriate when the required adjustment is administrative in nature;

otherwise, a Request for Investigation should be submitted. Explanatory

statements/Requests for Investigation will be made on an as-occurring or

daily basis whenever imbalances are discovered. Explanatory statements must

be approved by the CO before the gain/loss transaction is processed/posted by

the Supply Officer for transactions that meet the criteria in paragraph 11b(1)

of this chapter.

d. CO's Review of Requests for Investigation. The CO must make a

determination concerning the need for further investigation per chapter 5 of

this policy.

(1) If an investigation is conducted, the Request for Investigation

(with all endorsements and enclosures) will be made the second enclosure to

the investigative report, after the Investigating Officer's appointing order.

(2) If the CO feels that an investigation would have little or no

chance of recovering missing items, the CO may direct the Supply Officer to

adjust the accountable records accordingly. The CO will notify the Supply

Officer of all required actions via an endorsement to the Request for

Investigation. This endorsement will constitute authority for the Supply

Officer to adjust the account balance by means of miscellaneous gain/loss

transaction.

e. Cash Collection. When cash collections are made in accordance with

Volume 5 of reference (k), balance records will be adjusted with the

appropriate transaction.

f. Supporting Documentation

(1) All gain/loss transactions must be supported by completed

investigations, Requests for Investigation, or explanatory statements signed

or endorsed by the CO and or the Supply Officer per paragraphs 11b(1) and

11c(5) of this chapter. This supporting documentation constitutes the

voucher file. The voucher file will be maintained in such a manner as to

easily cross-reference between gain/loss transactions and supporting

documentation. The preceding criteria is based on the fact that the non-

voucherable losses and gains will be documented, reviewed, and certified by

the CO on the passed edit listing and/or the MVGL/N.

(2) All investigations, as delineated in chapter 5, will be assigned

an investigative voucher number (the voucher number will consist of the AAC,

MCO 4400.150

29 JAN 2014

2-21 Enclosure (1)

the Julian date, and a four digit number) by the unit Supply Officer. All

associated gain/loss transactions (and DD Form 1131 for cash collection, if

any) will be annotated with the investigation voucher number and the

gain/loss transaction document number, and a copy will be filed with the

investigative report. The original gain/loss transactions (and a copy of DD

Form 1131 for cash collection, if any) will be filed in the voucher/cash

collection file.

g. Types of Gain/Loss Transactions. Gain/loss transactions can be

inventory, administrative, or miscellaneous in nature. A special case is a

"lost shipment" which can be processed as a loss only. Use of the correct

type of gain/loss transaction is necessary because it is used by higher

headquarters to analyze loss trends throughout the Marine Corps.

(1) Inventory Gain/Loss. Inventory gain/loss transactions are

authorized for all adjustments as a result of an inventory, whether a spot,

cyclic, annual, or command directed. The Document Identifier Code (DIC) is

D8A (gain)/D9A (loss) and the corresponding Defense Logistics Management

System (DLMS) transaction is 947I.

(2) Administrative Gain/Loss. Administrative gain/loss transactions

must be vouchered to indicate that no physical gain or loss occurred. Any

transaction(s) processed in error to cause the record imbalance must be

specifically identified by document number and date processed in the

explanatory statement. In the case where a misidentified item is being

dropped/picked up simultaneously, the voucher file must cross-reference the

related administrative gain/loss transaction. The DIC is D8B (gain)/D9B

(loss) and the corresponding DLMS transaction is 947I.

(3) Miscellaneous Gain/Loss. Miscellaneous gain/loss transactions

will be used when the circumstances surrounding the adjustment do not fit

into any of the other categories. These adjustment transactions are normally

associated with a gain or loss of assets signed for by an RO or in the

possession of an RI and when investigative action becomes necessary.

Adjustment transactions will be vouchered with detailed justification

pertaining to their use. The DIC is D8Z (gain)/D9Z (loss) and the

corresponding DLMS transaction is 947I.

(4) Lost Shipment. All required tracer actions and SDRs utilizing

Product Data Reporting and Evaluation Program (PDREP) must be accomplished

prior to inducting lost shipment transactions. Copies of the tracer action

and/or the SDR and copies of any replies will be maintained on file and

cross-referenced as supporting documentation for lost shipments. The

explanatory statement for those lost shipments meeting the voucher criteria

must state "Processed as a lost shipment due to non-receipt within time

frames established by Source of Supply or other regulation. All required

tracer and or SDR actions have been accomplished." The DIC is D9Z and the

corresponding DLMS transaction is 947I. Refer to paragraph 14 of chapter 3

for information regarding SDRs.

h. Money Value Gain Loss Notice (MVGL/N). This report contains a

listing of all gains/losses processed. The notice will have the following

statement certified by the CO/Accountable Officer or acting CO/Accountable

Officer: "I have reviewed the documents on this notice and verify that

required documents have been properly certified."

MCO 4400.150

29 JAN 2014

2-22 Enclosure (1)

i. Retention of Records

(1) Federal law requires the Marine Corps to maintain an active

records management program that provides for the accurate and efficient

tracking and retrieval of command records. Command records shall adequately

document the organization, operations, functions, policies, procedures,

decisions, and transactions of the Marine Corps at all levels and provide

information necessary to protect the legal and financial rights of persons,

commands, and the government.

(a) Record. The information, regardless of medium, that details

business transactions. Records include all books, papers, maps, photographs,

machine-readable materials, and other documentary materials, regardless of

physical form or characteristics. Records are made or received by an Agency

of the United States Government under Federal law or in connection with the

transaction of public business. Records are preserved or appropriate for

preservation by that Agency or its legitimate successor as evidence of the

organization, functions, policies, decisions, procedures, operations, or

other activities of the Government or because of the value of data in the

record.

(b) Electronic Record. The information recorded in a form that

requires a computer or other machine to process it and that satisfies the

definition of a record. Reference (x) establishes guidelines for electronic

record management.

(2) In accordance with Volume 5, chapter 21 of reference (k),

original disbursing office records and associated papers, and supporting

documentation must be retained for six years and three months, consistent

with guidance in the National Archives and Records Administrations General

Records Schedule 6. As a result, all supply records (i.e., proof of delivery,

voucher files, and supply appointment letters) will be maintained in an

active file for a period of two years after which they will be archived for

an additional period of no less than five years.

(a) Voucher Files. Voucher files include all records relating to

the gain, loss, return, disposal, transfer, and any other supporting

documentation affecting the on hand balance of property. Other supporting

documentation includes, but is not limited to: recoverable items reports,

letters of unserviceable property, MVGL/N, cash collection vouchers,

investigations, inventory result/certification letters, MLSRs, and SDRs. In

addition, voucher files include financial account records that directly or

indirectly result in a recordable accounting transaction (i.e., initiation,

commitment, obligation, expense, and liquidation).

(b) Appointment Letters. Applicable supply appointment letters

are discussed in paragraph 5 of chapter 1. Appointment letters include the

associated appointment DD Form 577s, the CO and Supply Officer Certificate of

Relief’s, and RO acceptance endorsements.

(c) Supply Active File. The storage of supply records (hard-copy

or electronic) used in the daily operations of an organization (less than 2

years old). The active file will be maintained to allow for immediate record

recovery to support daily operations and auditability.

MCO 4400.150

29 JAN 2014

2-23 Enclosure (1)

(d) Supply Archive File. The storage of supply records (hard-

copy or electronic) which contain the historical documentation (between two

and seven years old) of an organization’s supply activities. The supply

archive file is maintained to meet federal law requirements and to meet

potential future audit requests. Unlike the supply active file, the supply

archive file will be maintained to allow for the ease of record recovery vice

immediate record recovery.

(3) Time-Event Disposition. Supply record retention is based on

time-event disposition. Time-event disposition specifies that a record shall

be disposed of at a fixed period of time after a specified event. Once the

specified event has occurred, then the retention period is applied (e.g.,

induction of a transfer transaction, appointment revocation, etc.).

12. Serialized Item Management (SIM). MARCORLOGCOM, Program Executive

Officers, Product Group Directors, and PMs will ensure that items/NIINs

requiring serialized management are registered using the following attributes.

a. Marine Corps Stores Account Code (SAC) equal to “3”. All Type 1

through 3 cataloged Marine Corps appropriated stores account military

equipment shall be serially managed.

b. Marine Corps Controlled Item Code (CIC) equal to “A”. All Type 1

cataloged Marine Corps items identified as requiring special control shall be

serially managed.

c. Source, Maintenance, and Recoverability Code (SMRC). Marine Corps

DLIS registered NIINs with the fifth position of the registered SMRC equal to

“D”, “F”, “H”, and “L” shall be serially managed:

(1) “D” Reparable item. When beyond lower level repair capability,

return to depot level. Condemnation and disposal not authorized below depot

level.

(2) “F” Reparable item. When uneconomically reparable, condemn and

dispose at the field level.

(3) “H” Reparable item. When uneconomically reparable, condemn and

dispose at the sustainment level.

(4) “L” Reparable item. Repair, condemnation, and disposal not

authorized below depot/specialized repair activity level.

Note: NIINs with the fifth position of the registered Recoverability codes

of F and H will only be serially managed when the mandatory SIM/UID clauses

in the Defense Federal Acquisition Regulations (DFAR) for new solicitations

and contracts are issued and the NIINs are being delivered with their serial

number and/or UII affixed to the items by the manufacturer or the DoD

Inventory Control Points (e.g., DLA, General Services Administration (GSA),

U.S. Army Materiel Command, etc.).

d. Marine Corps Operational Test Code “3” (OTC 3). OTCs are cataloged

and used within the Marine Corps to identify items of supply where special

procedures must be performed while under care-in-stores or as a part of the

issue process. These special procedures are in addition to normal care-in-

stores, shelf life (to include Lot numbers), and electrostatic discharge

MCO 4400.150

29 JAN 2014

2-24 Enclosure (1)

handling procedures. OTCs are used to assure that the quality of the item is

maintained and to ensure that the item will perform its intended function(s)

upon issue from Condition Code A (serviceable, ready for issue) stocks. OTC

3 items require established calibration procedures (e.g., electronic test

equipment, meters, gauges, torque wrenches, etc.), whether technical or non-

technical in nature, and will therefore be serially managed.

e. Sets, Kits, Outfits and Tools (SKOT). SKOTs are assemblages of

components, support items, and common tools in a container (bag, pouch, box,

chest, van, trailer or shelter) that are used in association towards being

mission specific. SKOTs are primarily designed to accomplish a specific

mission or maintenance function. They are identified, cataloged, authorized

and issued as a single unit. They may be made up of components, support

items and tools included in more than one class of supply; may include end

items; and may include nonexpendable, durable, and expendable components. A

SKOT is an item of supply, configuration controlled by a TAMCN or NSN/NIIN.

(1) A SKOT will be serially managed if it meets the qualifying

criteria provided in this directive, as long as it resides in the Marine

Corps Inventory. If any of the components of the SKOT are serially managed

items, they will be uniquely identified separately as embedded items (child

components) in the parent item. Refer to paragraph 17 of this chapter for

the management of non-serialized SKOT components.

(2) COs will ensure that serially managed embedded (child) components

are properly accounted for as configurations in the GCSS-MC Installed Base

module.

(3) A SKOT may consist of components for a single assembly part, or

packaged together as a single TAMCN where no centralized military equipment

(parent) contains the system serial number. For example, the Army

Navy/Vehicle Radio Communications (AN/VRC) may consist of multiple radio

transmitters and multiple radio amplifiers that are also serially managed in

their own right; however, there is no parent serial number. In cases like

this, the parent serial number will be captured in GCSS-MC in the following

fashion:

(a) Legacy SKOT. SKOT legacy “unique serial numbers” comprised

of the owning units property control DoDAAC, minus the service code, plus

three additional numbers (e.g., 12001001) will transition into GCSS-MC and

endure for the lifecycle of the SKOT.

(b) New SKOT Equipment Fielding. All newly fielded SKOT Parent

TAMCN/NIINs requiring serialization will be assigned a GCSS-MC serial number.

(c) Once assigned, the SKOT serial number will be placed on a

data plate which may be retained and reapplied when the major component to

which it is affixed is replaced.

(d) Serial numbers will remain ("as is") when equipment

is transferred between units. Legacy and GCSS-MC assigned serial numbers

will remain on the parent (TAMCN and NIIN) until such time as MARCORLOGCOM

and MARCORSYSCOM publish permanent serial numbers/UII and data plate

placement instructions for these assets.

MCO 4400.150

29 JAN 2014

2-25 Enclosure (1)

f. Controlled Inventory Item Code (CIIC). The CIIC is a one-position

cataloged code that indicates the security classification and/or pilferage

controls required for, or the security risks associated with, storage and/or

transportation of assets. When the Marine Corps is registered in DLIS as the

Primary Inventory Control Activity (PICA), the Secondary Inventory Control

Activity (SICA), or a NIIN registered user, assignment of any of the

following CIIC codes to an item/NIIN will require that item/NIIN be serially

managed. Refer to table 61 of reference (e) for additional descriptions of

the CIIC codes summarized below.

(1) Classified Item Code. A cataloged code indicating the materiel

requires protection in the interest of national security. Per table 61 of

reference (e), the following codes apply:

(a) “A” Confidential - formerly restricted data.

(b) “B” Confidential - restricted data.

(c) “D” Confidential - cryptologic

(d) “E” Secret - cryptologic

(e) “F” Top Secret - cryptologic

(f) “G” Secret - formerly restricted data

(g) “H” Secret - restricted data

(h) “K” Top Secret - formerly restricted data

(i) “L” Top Secret - restricted data

(j) “O” Caution - store and handle in a manner that will prevent

unauthorized access to this materiel

(k) “7” Items assigned a Demilitarization Code other than A, B, Q

or P for which another CIIC is inappropriate in accordance with reference (e).

Note: The loss, theft, unlawful disposition, and/or recovery of an item with

CIIC 7 will be investigated in accordance with references (k) and (m).

(l) “9” CCI

(2) Sensitive Item Code. Materiel which is cataloged and requires a

high degree of protection and control due to statutory requirements or

regulations, such as narcotics and drug abuse items; precious

metals; items which are of high value, highly technical or of a hazardous

nature; and Arms, Ammunition, and Explosives (AA&E) and demolition materiel

will be serially managed. Per Table 61 of reference (e) and references (l),

(n), and (bt), the following codes apply:

(a) “1” Highest Sensitivity (Security Risk Category (SRC) I).

Cataloged Unclassified AA&E. Man portable missiles and rockets in a ready-

to-fire configuration. Included are the Redeye, Stinger, Javelin, light

antitank (LAW) (66mm), shoulder-launched and cartridge (84 mm). These

weapons, when jointly stored or transported with the launch tube and/or grip

MCO 4400.150

29 JAN 2014

2-26 Enclosure (1)

stock and the explosive round, though not in a ready-to-fire configuration,

shall be considered Category I items.

(b) “2” High Sensitivity (SRC II) - Unclassified AA&E

(c) “3” Moderate Sensitivity (SRC III) - Unclassified AA&E

(d) “4” Low Sensitivity (SRC IV) - Unclassified AA&E

(e) “5” Highest Sensitivity (SRC I) - Secret AA&E

(f) “6” Highest Sensitivity (SRC I) - Confidential AA&E

(g) “7” Non-Sensitive (SRC-N/A) - Unclassified AA&E

(h) “8” High Sensitivity (SRC II) - Confidential AA&E

(i) “C” Moderate Sensitivity (SRC III) and Low Sensitivity (SRC

IV) - Confidential AA&E

(3) Pilferage Code. This code indicates the materiel has a ready

resale value or civilian application for personal possession and, therefore,

is especially subject to theft. Pursuant to reference (c), all pilferage

code “J” items shall be serially managed. Refer to table 61 of reference (e)

for additional pilferage codes that may further categorize pilferage items.

g. Class I. Consumable subsistence supplies will not be serially

managed.

h. Class II. Clothing, expendable individual equipment, consumable

administrative and housekeeping supplies will not be serially managed.

i. Class VIII. Consumable medical supplies will not be serially managed.

j. Class IX Items. Consumable repair parts and consumable components

with a recoverability code of “Z” and “O”, unless it is catalogued with an

OTC = 3, will not be serially managed.

13. Small Arms Control

a. Small arms will be accounted for by the CO of a unit having a

consumer-level supply account per this policy, applicable Logistics Automated

Information Systems (Log AIS) user’s manuals, and TM-4700-15/1. The CO will

also report all small arms to the Naval Surface Warfare Center (NSWC) in

Crane, Indiana in accordance with reference (ce). Inventory accuracy for

small arms accountability shall be maintained at 100 percent, in accordance

with references (c) and (f).

b. In accordance with reference (ce) and this policy, the CO will

appoint in writing an inventory officer, other than the Supply Officer,

appointed armory RO, or supply/armory personnel, to conduct the MSI of small

arms. In addition to using the unit current CMR(s), units will download

their current asset information and incoming and outgoing shipments reports

from the NSWC Crane website and use these additional files in the conduct of

the monthly serialized inventory. Discrepancies will be noted and researched.

Missing, lost, stolen or recovered weapons will be reported to NSWC Crane in

MCO 4400.150

29 JAN 2014

2-27 Enclosure (1)

accordance with references (bq) and (ce). The appointed inventory officer

will sign the MSI, submit results to the CO via the Supply Officer, and

provide a copy to the appropriate RO(s). Within 5 working days, the Supply

Officer will endorse the letter to the CO noting causative research results

and recommended actions to be taken for all identified discrepancies, when

required. The CO will endorse the MSI back to the Supply Officer or appoint

an Investigating Officer within 5 calendar days after receiving the Supply

Officer endorsement. MSIs will be completed and endorsed by the CO within

the month the inventory is conducted.

14. Unserviceable Assets

a. Each unit CO will maintain all on hand items as serviceable and

ready-for-issue. Unserviceable materiel will not be commingled with

serviceable materiel. Procedures for handling and accounting for

unserviceable assets are detailed in the corresponding Log AIS user’s manuals.

Use the applicable TM/TI, when available, to determine materiel

serviceability.

(1) Unserviceable SAC 3 military equipment will be maintained in

such a manner which will prevent further deterioration until disposition

instructions are requested and provided.

(2) All other unserviceable assets shall be disposed of directly

through the Defense Logistics Agency – Disposition Services (DLA-DS) in

accordance with references (f), (h), and (i).

b. All disposal transactions require a transaction voucher to maintain

an audit trail per paragraph 11 of this chapter.

15. Excesses. Consumer-level supply accounts are not authorized to retain

excess materiel. COs will guard against having materiel in excess of

established authorized quantities. Quantities of items on hand or on order

greater than authorized levels must be redistributed, returned, disposed of,

or canceled per the guidance in the corresponding Log AIS user’s manuals and

reference (bb), if applicable.

16. Demand-supported Items

a. Demand-supported stocks are those quantities of expendable and

nonexpendable items which are on hand based on supported or limited stockage

criteria and are authorized to support mission requirements. Demand-

supported items typically, but not exclusively, consist of class IX, repair

parts such as:

(1) Commonly used hardware items, such as nuts, bolts, and battery

terminals.

(2) Items used during scheduled preventive maintenance, such as

filters, belts, and hoses.

(3) High usage items that affect readiness of a unit, such as

voltage regulators, weapons parts, and radio handsets.

b. Purpose. The primary purpose for maintaining demand-supported items

is to place fast moving, low-cost items at the same location as the customer

MCO 4400.150

29 JAN 2014

2-28 Enclosure (1)

who requires them. Stocking these items at the maintenance commodity allows

an expedited return of critical assets to an operational status; accordingly,

it is imperative the COs monitor demand-support item usage to ensure that

only required items are stocked and to prevent these items from becoming an

undue logistical burden.

c. Demand-Supported Stockage Criteria. Consumer-level supply

organizations may maintain demand-supported items as long as all of the

following requirements are met:

(1) Approval, in writing, by the unit CO on an annual basis.

(a) The Supply Officer in coordination with the Maintenance

Management Officer (MMO) will formally request demand-supported stockage

levels by NSN to the CO.

(b) Prior to routing the request to the CO for approval, all

requests will be reviewed by the appropriate supporting Supply Management

Unit (SMU) for endorsement (MSC G-4 if not supported by a SMU). The SMU’s

endorsement does not dictate final stockage levels, rather it is their

recommendations based on existing inventory levels and analysis of past

demand history. SMU input will be provided as an endorsement to the annual

formal request to the CO.

(c) If an enclosure is used to list the demand-supported items,

the CO must initial each page of the enclosure.

(d) Once approved, the Supply Officer and MMO will review the

demand-supported stockage listing quarterly to ensure that the expenditure of

funds is consistent with the needs of the unit. Periodic reviews during the

year will be conducted to ensure that demand-supported stockage levels are

maintained at the appropriate range and depth. COs may approve changes to

the approved annual listing based on quarterly reviews without SMU

endorsement; however this does not preclude the requirement for the SMU

review on an annual basis.

(2) Usage history (issues) is sufficient to justify maintaining

readily available stocks on hand. The usage history is as follows:

(a) For those items applied/consumed as a full U/I, the usage

history is six U/Is applied/consumed in 12 months.

(b) For those items applied/consumed as less than a full U/I

(e.g., roll, hundred, or box) the usage history is one U/I applied/consumed

in 12 months.

(3) Stocks are consistent with a unit’s funding and embarkation

capability, and the unit’s maintenance requirements.

d. Demand-supported items stocked using the above criteria must be

reviewed and, if required, adjusted quarterly. Once an item is eligible,

stock levels will consist of the following elements:

(1) Operating Level (OL). The OL determines the frequency at which

supplies are reordered. Typically, the OL is the 30-day usage requirement

for each individual item.

MCO 4400.150

29 JAN 2014

2-29 Enclosure (1)

(2) Safety Level (SL). The quantity of materiel required to be on

hand to permit continued operation in the event of a minor interruption of

normal replenishment or a fluctuation in demand. Typically, the SL is set at

30 days.

(3) Customer Wait Time (CWT). CWT is the total elapsed time between

issuance of a customer order and satisfaction of the order. CWT is the

portion of the total OL quantity which covers the CWT replenishment

requisitions.

(4) Min/Max. The Min/Max is established by the CO to support

requirements as defined in paragraph 16b of this chapter. The Min represents

the minimum quantity to be maintained on hand to sustain operations. The Max

represents the maximum quantity authorized by the Commanding Officer to be

maintained on hand to sustain operations.

e. Broken Unit of Issue

(1) Broken U/Is of common hardware (e.g., bolts, nuts, screws, or

washers) costing less than or equal to $5 per U/I which are ordered against a

corrective maintenance service request that do not meet demand-supported

stockage criteria, do not require further control or accounting once the U/I

is applied to the equipment. The leftover portion will be displayed in a

parts bin, in plain view of the shop’s maintenance personnel, and used until

exhausted. Strict control and accountability is not required, but

maintenance supervisors must ensure mechanics/technicians know how to use the

on hand supply before ordering more.

(2) Broken U/Is not considered common hardware or costing more than

$5 per U/I will be added to the authorized demand-supported stockage listing.

They must be identified on the list as broken U/Is and reflect the date they

were added to the list. They may be retained as a demand-supported stockage

item until exhausted.

f. Inventory adjustments to demand-supported inventory will be executed

in accordance with paragraph 9 and 11 of this chapter.

17. SL-3 Components List

a. The SL-3 lists all components of collection-type items, such as

chests, sets, kits, outfits and assortments, and components to such military

equipment as vehicles, weapons, and communications equipment. However, in

some instances a TM is used in lieu of an SL-3.

b. The categories for the components of an SL-3 are divided into three

general areas: Supply System Responsibility Items (SSRI), Collateral

Materiel (CM), and Using Unit Responsibility Items (UURI). In TMs, the

categories may be listed using the Army terminology: Components of End Items

(COEI), Basic Issue Items (BII), and Additional Authorization List (AAL).

These terms parallel the Marine Corps terminology SSRI, CM, and UURI.

However, these terms cannot be unilaterally applied. The responsibility of

obtainment and control is not always interpreted the same by both services.

(1) SSRI/COEI. Items listed under this category are furnished by

the supply system when the end item is issued and will be transferred with

MCO 4400.150

29 JAN 2014

2-30 Enclosure (1)

the end item during redistribution or other changes of custody unless

otherwise specifically directed by appropriate authority. If SSRI/COEI are

serially managed items, they will be uniquely identified separately as

embedded items (child components) in the parent item. SSRI/COEI items are

required to be maintained on hand, on order, or identified as an unfunded

deficiency unless otherwise specifically directed within the SL-3.

Requisitioning of SSRI/COEI assets needing replacement, when the end item is

outside the stores distribution system, is the responsibility of the using

unit.

(2) CM/BII. Items listed under this category are furnished with the

end items upon initial issue and normally remain with the using unit during

redistribution/rebuild or other change of custody of the end item unless

otherwise directed by MARCORLOGCOM. These items are required to be

maintained on hand, on order, or identified as an unfunded deficiency unless

otherwise specifically directed within the SL-3. CM will be maintained and

replaced by the using unit, except for materiel with 9999 series NSNs. Using

units are not authorized to requisition items using the assigned 9999 series

NSNs. The 9999 series NSN shown under the heading of "Collateral Materiel"

is for control within the distribution system only, and is not authorized for

requisitioning purposes. Items under this category will be requisitioned by

individual NSN/NIIN, and/or part number and CAGE) Codes.

(3) UURI/AAL. These are items that are not issued with the end item

during initial provisioning and subsequent fielding. Items in this category

will be requisitioned/sourced in accordance with paragraph 5 of this chapter.

(a) UURIs that are identified as having a Type 1 TAMCN should be

validated against the unit's T/O&E and accounted for on the unit property

records. These items remain in the unit and are not transferred with an end

item during redistribution/rebuild or other changes in custody. An exception

would be a directed redistribution because of force modernization, retrograde,

or a unique maintenance requirement where the UURI is not needed by the unit

but may be of use with the associated end item. Policy for UURIs/AALs to

support cadre units, reserve initial issue, and that part of active forces'

WRMR is contained in reference (az).

(b) Types 1 and 2 TAMCN Items

1. DC CD&I (TFSD) and MARCORSYSCOM will ensure UURI Type 1

TAMCN allowances are established or adjusted within the unit's T/O&E. New

T/O&E allowances for UURI Type 1 TAMCN items will be published in the

Materiel Fielding Plan of the item for which the SL-3 is written.

2. For Type 2 items refer to paragraph 5 of this chapter for

guidance on establishing allowances.

(4) Ammunition. Ammunition is listed in the SL-3/TM for

clarification only. Refer to chapter 4 of this policy for more information.

(5) Small Arms. Small arms (as defined in reference (ce)) which are

SL-3/TM components will have allowances established on the unit's T/O&E.

MARCORSYSCOM will ensure that these allowances are established within the

unit's T/O&E for newly fielded items. The accountable/owning unit CO is

responsible for reviewing and recommending T/O&E allowances for fielded items.

MCO 4400.150

29 JAN 2014

2-31 Enclosure (1)

(6) Associated Expendables. Expendable items used with end items

are often listed for informational purposes in SL-3s, TMs, and other

component listings. For example, the Expendable/Durable Supplies and

Materials Lists (EDSML) for a radio would list the batteries and other

expendable items used with the radio. Associated expendable items may be

procured and held by consumer-level activities in limited quantities on an

“as required” basis and do not require stockage levels in writing.

c. When SL-3 components received through the supply system (including

purchases from a commercial vendor) to replace missing or unserviceable items

do not match the exact descriptive data of the stocklist, units are

authorized to maintain those items if the item received meets the “form”,

“fit”, and “function” of the SL-3 component.

d. Items listed as SSRI and CM will be on hand or on order at all times.

Training aids at formal Marine Corps schools are the only exception to this

rule. The CO/director of the school will designate in writing (by end item)

the quantity of SSRIs and CM to be maintained for those end items used as

training aids.

e. Detailed instructions for SL-3/TM inventory and recordkeeping

requirements are contained in reference (bj). The procedures specified there

apply to all SL-3/TM inventories.

f. Batch SL-3 Inventories. Batch SL-3 inventories are appropriate for

certain types of end items to reduce the administrative burden associated

with performing individual SL-3 inventories for numerous items. If military

equipment requires the SL-3 in order to be fully operational and ready for

use (e.g., tentage and first aid kits), then each end item must have an

individual SL-3 inventory performed and documented. If the end item is fully

operational and ready for use without its associated SL-3 items (e.g.,

cleaning gear for weapons, pioneer tools and gas/water cans for vehicles),

the associated SL-3 items may be accounted for by using the batch inventory

method. Class II, organizational property items in the supply warehouse

which require periodic SL-3 inventories, with the exception of ICCE, must

have individual SL-3 inventories documented for each end item. One record

jacket is permitted, but an SL-3 inventory sheet for each end item is

required.

18. Garrison Tool Allowances. OPFOR unit COs (not to go below the

battalion/squadron level except for detached units) are authorized to

establish in writing special tool allowances for tools not currently

maintained within T/O&E sets, kits, and chests needed to meet garrison

peculiar requirements, and for required locally fabricated tools.

a. Garrison specific tools are defined as those tools needed to support

requirements that would not exist in a deployed situation. The tools

required to conduct authorized levels of maintenance on organic equipment or

in support of the unit mission will be either T/O&E items or components of

T/O&E items.

b. Locally fabricated tools are those tools whose fabrication is

directed by a technical publication. The authorization list for locally

fabricated tools will reference the technical publication that requires the

tool.

MCO 4400.150

29 JAN 2014

2-32 Enclosure (1)

c. Prior to submitting SL-3/TM changes (especially for tools that are

unit specific), other end items/tool kits already on the unit's T/O&E should

be checked as a source of required tools.

19. General Equipment (Garrison Property). General equipment is personal

property which is not used for tactical purposes and does not deploy. The

term garrison property is synonymous with general equipment; however, it is

not all inclusive as general equipment includes garrison property, garrison

mobile equipment (GME) and non-tactical NS-E.

a. Commands in possession of general equipment; owned, on loan, leased or

otherwise responsible for, shall account for such items as prescribed by this

policy and reference (s) .

b. COs with general equipment accounts or sub-accounts will coordinate

with the Accountable Officer (normally the Installation Commander) for the

transfer of all accounts prior to unit deployments/rotations, ensuring joint

inventories are conducted and account discrepancies are addressed prior to

unit departure.

c. Due to the organizational structure of most bases, posts and stations,

the base Logistics/Supply Officer may be tasked with the functions normally

accomplished by the CO (i.e., vouchering, priority approval, review requests

for investigations, and turnover letters); however, the Accountable Officer

for garrison equipment remains the installation Commander, in accordance with

the current version of reference (s). The Logistics/Supply Officer will

continually keep the CG or CO appraised of the status of the supply account

and, upon change of command, will ensure a certificate of relief is prepared.

20. Local Purchase of Authorized Allowance Items

a. This order and reference (bp) address the policy for establishing,

maintaining, and adjusting authorized allowances of Types 1, 2, 3, and NS-E

items. Reference (av) specifically identifies the process within the Marine

Corps for determination and approval of operational needs for weapon systems

and equipment. This formal process is initiated by identification of needs

by commands and individual Marines. Operational requirements for weapon

systems and equipment will be formally identified when prescribed equipment

does not meet mission capabilities and to document unprogrammed mission needs.

b. The “Purpose Statute” provides that agencies shall apply

appropriations only to the objects for which the appropriations were made,

except as otherwise provided by law, 31 U.S.C. § 1301(a). The Comptroller

General has determined the following three conditions must be met in order to

expend appropriated funds:

(1) The expenditure of an appropriation must be for a particular

statutory purpose, or necessary and incident to the proper execution of the

general purpose of the appropriation.

(2) The expenditure must not be prohibited by law.

(3) The expenditure must not be otherwise provided for; it must not

fall within the scope of some other appropriation.

MCO 4400.150

29 JAN 2014

2-33 Enclosure (1)

(a) Expenses are the cost incurred to operate and maintain an

organization, such as personal services, supplies and utilities. This

includes consumable supplies and materials, and principal/secondary items

which are generally financed with O&M appropriations. Refer to volume 2A of

reference (k) for additional information.

(b) Investments are costs to acquire capital assets such as real

property and equipment that will benefit both current and future periods and

generally have a long life span. This includes principal items that are

subject to centralized item management and asset control which are generally

financed with procurement appropriations. Refer to volume 2A of reference (k)

for additional information.

c. Even though reference (ae) and local contracting agencies provide

flexibility to Commanders to locally acquire non-system item support to

satisfy an immediate end-use requirements, it does not address the

limitations identified in the proceeding paragraphs to have a validated

requirement (i.e., established allowance) or the appropriate use of

appropriations (i.e., expense vs. investment appropriations). In view of the

preceding, authority for the local purchase of authorized allowance T/E items

is not delegated to the OPFOR/SE, unless the item is coded for local purchase.

Refer to paragraphs 8 and 9 of chapter 3 for additional guidance.

e. Universal Needs Statement (UNS). Requests by the OPFORs to locally

purchase nonexpendable equipment without an established enterprise authorized

allowance will be submitted as an UNS per reference (av) (other circumstances

may also require the submission of an UNS). Such items may be pilferable,

hazardous, or require augmented control. Local purchases will not be made

until the UNS is approved and local purchase authority is granted.

Accountability for these items shall be facilitated by a request for a

MCSN/TAMCN in accordance with paragraph 2 of this chapter. See paragraph 5

of this chapter for guidance concerning the establishment of Type 2

allowances for established enterprise authorized allowances.

21. Electronic Key Management System (EKMS) Equipment. EKMS equipment will

be accounted for in both the Marine Corps Supply System and the Department of

the Navy’s Naval Communications Security Material System, per the provisions

of this policy and reference (ar). Neither system has precedence and the

requirements of both systems must be met. The EKMS custodian is responsible

for the requisitioning and disposition of cryptographic equipment. It is

imperative that the EKMS custodian and the Supply Officer communicate

regarding all adjustments to the EKMS account and provide each other with the

necessary supporting documentation (e.g., DD Form 1348, DD Form 1149, SF-153)

that affects the unit's accountable records.

MCO 4400.150

29 JAN 2014

3-1 Enclosure (1)

Chapter 3

Requisitioning

1. General Information

a. One of the objectives of consumer-level supply operations is providing

the correct quantity of items to the customer at the correct place and time.

This is supported by the accurate and timely requisition, receipt, and issue

process to put the supplies in the hands of the users when required, not

before (creating double handling and storage costs) nor late (delaying

repairs and increased safety factors).

b. COs of Marine Corps activities may requisition principal and secondary

items within prescribed authorizations as described in chapter 2 of this

policy. Authorized equipment and supplies may be obtained by consumer-level

supply organizations through the submission of requisitions.

c. COs shall ensure repair parts and other maintenance supplies are

requisitioned, funded, accounted for, and safeguarded. It is imperative for

required repair parts to be requisitioned as soon as the requirement is

identified, consistent with the urgency of need. Requisitions will be

submitted and managed within appropriate timeframes as established within

reference (ay).

2. Requisitioning. Reference (f) identifies the process for fulfilling

requirements as materiel support, which includes both stocking of inventory

within the DoD supply chain as well as materiel support alternatives for

fulfilling requirements. The process of fulfilling requirements or customer

demands at the consumer-level of supply is known as requisitioning.

3. Financial Management. The process of requisitioning is directly linked

to financial management, since all requisitions obligate financial resources.

All requisitions, to include all types of Marine Corps funds, shall be

managed in accordance with both the Marine Corps Financial Management

Standing Operating Procedures Manual, reference (bu), and this policy.

a. All funds appropriated for use by the Marine Corps, either directly or

indirectly, will be utilized toward achieving maximum operational potential.

Every effort will be devoted toward obtaining the highest level of efficiency

and economy. It is incumbent on every level of command, and all personnel,

to ensure that financial resources are expended only to sustain or further

the operational capability of the Marine Corps.

b. Within restrictions imposed by law and higher authority, and the

requirements of efficient management, funds will be made available to

subordinate COs with minimum restrictions as to their use. COs will be

allowed maximum flexibility in managing their financial resources.

4. Financial Responsibility. The management of finances is inherent to

command. The CO is responsible for the administration of all authorizations

of funds formally granted through an operating budget or allotment. This

responsibility cannot be delegated in whole or in part within the command.

Accordingly, Commanding Officers are personally responsible for any act of

their own or an act of a subordinate which causes an overcommitment,

overobligation, or overexpenditure of an authorization of funds and may be

MCO 4400.150

29 JAN 2014

3-2 Enclosure (1)

subjected to the penalties as set forth in chapters 13 and 15 of U.S.C. 31.

In discharging these responsibilities COs shall:

a. Adequately plan for the use of funds.

b. Continually review commitments, obligations, and expenditures to

ensure that funds are being utilized in the most efficient manner and only

for the purpose for which appropriated.

c. Retain flexibility to meet the unexpected or unplanned requirement.

d. Exercise close personal supervision.

e. Devote the command's financial resources to achieving and maintaining

maximum operational readiness.

f. Maintain such controls, records and accounts so as to ensure that

commitments, obligations, and expenditures are within amounts authorized.

5. Staff Action

a. In those commands (e.g., Commanding General) where the complexity of

financial management requires it, the Commandant of the Marine Corps will

authorize assignment of a comptroller to assist the Commander. The

comptroller will be a general staff officer and will have general staff

cognizance over the broad area of financial management to include both

appropriated and nonappropriated funds.

b. In those commands not authorized a comptroller, COs will discharge

their financial responsibilities in the most efficient manner, formally

assigning financial management and execution functions to the members of

their staffs as outlined in paragraph 5c of chapter 1 (i.e., Supply Officer,

Fiscal/Budget & Accounting Officer, and Supply Resource Manager).

c. COs may allocate funds in the overall financial plan to support a given

function which are subsequently administered by the staff officer who has

primary staff cognizance over the function supported. In these scenarios,

the staff officer will be appointed by the CO as a fund holder responsible

for coordinating execution and reconciliation of funds with the Supply

Resource Manager as outlined in paragraph 5c of chapter 1.

d. COs are authorized, at their discretion, to organize a committee

consisting of appropriate staff officers to provide coordinated staff

recommendations in financial matters. In those commands assigned a

comptroller, the comptroller should be a member of this committee.

6. The Requisitioning Process. In order to properly manage requisitions, it

is imperative to understand the four components to the requisitioning process

and their respective relationship with the financial resources they commit.

This relationship applies to all types of Marine Corps funding. The

requisitioning process involves two cycles -- supply and fiscal – which

parallel one another as each event in the process occurs. The parallel

cycles of the four components of the requisitioning process, to include the

identification of roles (refer to paragraph 5c of chapter 1), is provided in

Figure 3-1 and the sub-paragraphs below.

MCO 4400.150

29 JAN 2014

3-3 Enclosure (1)

Figure 3-1.--The Requisitioning Process.

a. The Request/Commitment. The requisitioning process begins with a

request, which has two components. First, requirement determination is

accomplished by an end user or customer who identifies a requirement to the

commodity Responsible Officer. The Responsible Officer reviews the

requirement to confirm the necessity and, if warranted, makes a formal

request to the Supply Resource Manager, an inherent function of the Supply

Officer. The request action generates a commitment in the fiscal cycle. A

commitment is the reservation of funds based upon firm request, orders,

directives, and equivalent instruments.

b. The Requisition/Obligation. The request becomes a requisition when

it is validated and entered into a process or system to facilitate its

fulfillment (e.g., GCSS-MC, Garrison Retail Support Activities, purchase

requests, purchase card, etc.) by the Supply Resource Manager or a delegated

Fund Holder. The requisition action generates an obligation in the fiscal

cycle. An obligation is the definite commitment that creates a legal

liability of the government for the payment of goods and services ordered or

received, or a legal duty on the part of the U.S. that could mature into a

legal liability by virtue of actions on the part of the other party beyond

the control of the U.S. In some instances, the request becomes a requisition

and is receipted/accepted simultaneously at the point of sale (e.g., credit

card purchase).

MCO 4400.150

29 JAN 2014

3-4 Enclosure (1)

c. The Receipt and Acceptance/Expense. When the purchased item is

received (or service requested is complete), it is receipted and accepted for

by the Supply Resource Manager. The Supply Resource Manager, or a delegated

Receipt and Acceptor, validates the received item (or service) meets a valid

requisition identified in paragraph 6b above. If it does, the Supply

Resource Manager begins the formal receipt and acceptance process. If it

does not, the Supply Resource Manager contacts the vendor/source of supply to

resolve disputes and/or initiates a SDR in accordance with paragraph 13 of

this chapter. Finally, the received item is issued by the Supply Resource

Manager to the commodity Responsible Officer or delegated individual. If the

item was of substantial consequence as to require its physical accounting on

property records, per chapter 2, it is entered into the respective property

accounting system using the receipt and issue documentation. The Receipt and

Acceptance action generates an expense in the fiscal cycle. An expense

occurs when material and services ordered are received and accepted by a

designated authorized receiving point. The expense amount creates the

accounts payable amount in the accounting system and controls the amount

billed for reimbursable transactions. This closes out the requisitioning

process for the supply chain.

d. Liquidation. Closure of the fiscal cycle occurs once the provider

of the item or service is actually paid by DFAS. Liquidations or payments

are made after DFAS receives an invoice from a vendor or government agency

requesting payment. This constitutes a financial liquidation against the

original commitment, obligation, and expense. The Supply Resource Manager

and the Fiscal/Budget and Accounting Officer will conduct a periodic

reconciliation with the comptroller to ensure the posting of valid

liquidations against commitments, obligations, and expenses.

7. Requisition, Receipt, and Issue Management. Requisitions are the supply

lifeline for Marine Corps units. The CO must ensure adequate supply

procedures are implemented to control requisitions, and adequate funding is

available to support them. Requisitions must be prepared, submitted, and

maintained promptly and accurately for continuous supply support of unit

operations. Additionally, the second phase of the supply process is the

accountability and timely issuing of the requisitioned materiel.

a. Commodity Requirements. A commodity within an organization will

submit requests for supplies to the unit's consumer-level supply section

(Supply Resource Manager or delegated Fund Holder) for processing and

obligation of unit funds, via the appointed commodity Responsible Officer.

This requisition creates an initial requirement record so outstanding

requisitions may be confirmed. Consumer-level supply personnel will provide

the commodity current supply status of all outstanding requisitions as

required.

b. Supply Officer. The Supply Officer, through their inherent

responsibility as the Supply Resource Manager, is responsible for requisition

management within the unit. These responsibilities include:

(1) Maintaining all document numbers for the command’s DoDAAC(s) used

for requisitioning.

(2) Preparing requisitions.

MCO 4400.150

29 JAN 2014

3-5 Enclosure (1)

(3) Compliance with the Uniform Movement and Issue Priority System

(UMMIPS). On behalf of the CO, and in accordance with references (f) and

(ay):

(a) Ensure that the assignment of priority designators is valid

and accurate, and consistent with Force/Activity Designator (F/AD) assigned

by higher authority, as well as the existing urgency of need, and the

required delivery dates assigned to requisitions are valid.

(b) Review and forward to the CO, or delegated individual, for

approval, all requirements that are assigned an urgency of need designator

(UND) A on the basis of an inability to perform a mission; the review

precedes the transmission of requisitions to the source of supply; and in

cases where the assignment of UND A is sustained, ensure it constitutes a

certification that the assignment is correct.

(c) When delegated by the CO, review all requirements based on

UND B to certify that the urgency was accurately determined and the review

precedes the transmission of requisitions to the source of supply.

(4) Inducting of requisitions into the supply system.

(5) Retaining requisition records.

(6) Maintaining requisition status information.

(7) Ensuring that available stock is issued (if authorized and held)

before induction of requisitions into the supply system (except replenishment

action).

(8) Following up and/or conducting causative research on outstanding

requisitions.

(9) Modifying existing requisitions, when appropriate.

(10) Processing cancellations, when appropriate.

(11) Processing receipts, when appropriate.

(a) Conducting internal backorder validation with supported

commodities in conjunction with the quarterly Materiel Obligation Validation

(MOV)/Back-Order Validation (BOV) process.

(b) In addition, report the results to the supporting supply

chain (i.e., Logistics Combat Element (LCE), SMU, or directly to DLA for

isolated commands).

(12) Conducting ULO and Outstanding Travel Orders (OTO) validations.

(13) Making liaison with supply activities providing support to the

unit for any additional action required.

(14) Ensuring appropriate fiscal transactions process correctly.

(15) Managing related reports.

MCO 4400.150

29 JAN 2014

3-6 Enclosure (1)

c. Control of Priority Designator (PD). The COs of requisitioning

activities will assign PDs consistent with the F/AD assigned by higher

authority and with urgency of need. The validity of required delivery dates

assigned to requisitions is also the CO's responsibility. COs (to include

the Commanders of Marine Corps installations and separate non-OPFOR

requisitioning activities) will either personally review, or delegate in

writing to specific personnel, the authority to review all requirements based

on Urgency of Need Designators A and B per reference (ay).

d. Requisition Validation. COs will ensure that the Supply Officer and

commodity Responsible Officers conduct a reconciliation and validation of all

outstanding requisitions at least every 2 weeks (once a month for non-OPFOR

units).

(1) COs are encouraged to include the reconciliation process on the

unit's training schedule.

(2) Outstanding requisitions will be confirmed to ensure necessary

cancellation, follow-up, or modification actions are initiated between the

Supply Officer and commodity Responsible Officer. The commodity Responsible

Officer is responsible for following up on all requirements given to supply.

Continuous exchange of information between the commodity Responsible Officer

and the Supply Officer is essential for optimal supply support.

(3) Quarterly, the commodity Responsible Officers and the Supply

Officer will revalidate all previously submitted requirements as part of the

MOV/BOV cycle.

e. Receipts. Appointed Receipt & Acceptors are the only individuals

authorized to receipt for supply and services. Exceptions to this include

TAD execution, instances in which an execution mechanism and authority has

been issued by the supply office (e.g., fuel or garrison retail support

activity cards), or the responsibility has been appointed to a Contracting

Officer Representative.

(1) A record of receipts will be retained for all requisitions in

accordance with paragraph 11i of chapter 2. Materiel received which is no

longer required by the customer will be applied to other outstanding

requisitions or will be treated as excess materiel

(2) Receipt Validation. COs will ensure that the Supply Officer

conducts a reconciliation and validation with the comptroller of all receipts

against ULOs. Aged ULOs will be validated with the commodity Responsible

Officers during the MOV/BOV reconciliation addressed in paragraph 7d(3) above.

(3) Outstanding Travel Orders (OTO) Validation. COs will ensure the

Supply Officer and the unit travel section conduct a reconciliation and

validation of travel claims against OTO (10 days past end of travel).

f. Issues.

(1) The Supply Officer ensures that only authorized individuals are

issued materiel. Authorized recipients will be assigned in writing, via a

NAVMC 11869, by commodity Responsible Officers with sample signatures. A

sample signature for each authorized recipient will be kept on file by the

Supply Officer in accordance with paragraph 11i of chapter 2. If available,

MCO 4400.150

29 JAN 2014

3-7 Enclosure (1)

an electronic signature system may be utilized. See paragraph 5f of chapter

1.

(2) When retail stock or requisitioned materiel is issued, a supply

audit trail will be maintained in accordance with paragraph 11i of chapter 2.

8. Materiel and Services Support. Ideally, and to the maximum extent

possible, all requests for materiel and services support at the consumer-

level of supply should be fulfilled through the Marine Corps Supply System

from existing Marine Corps held stores and supporting activities; however,

not all requests for materiel and services support from existing resources

are fulfilled through the same process or system. In most instances, the

type of materiel or services support requested will determine what type of

requisition will be necessary to fulfill the requirement (e.g., PORs,

Petroleum, Oil, and Lubricants (POLs), Meals Ready to Eat (MREs), Class V(W),

etc.). Normally such materiel and services will fall into the following

categories:

a. T/O&E Type 1 and Type 2 SAC 1 allowance items,

b. Maintenance items (chiefly Class IX repair parts and components of

T/O&E allowance items),

c. Office supplies, hand tools, and cleaning equipment type items, and

d. "Other" types, such as service contracts, transportation requirements,

maintenance repairs, subscriptions, and Blanket Purchase Agreement (BPA)

contract calls by authorized unit personnel.

9. Types of Requisitions. When materiel support or services are not

available within current inventory or resources to fulfill the request and it

is not obtainable through submission of an authorized system requisition (as

discussed in paragraph 8 above), the request must be fulfilled through the

outsourcing of the requirement. Whether it requires fulfillment from another

service, DLA, or commercial industry, there is a specific process by which to

fulfill the requirement from each of these potential sources of supply. The

following types of requests and requisitions outline some of these processes:

a. T/O&E Type 1 and Type 2 SAC 1 Allowance Items

(1) Commands with consumer level supply activities must have a

validated Type 1 or Type 2 T/O&E allowance prior to executing a local

purchase for allowance items. Refer to paragraph 5 of chapter 2 for guidance

on establishing allowances.

(2) Authority for the local purchase of authorized allowances is not

delegated to the OPFOR/SE, unless the item is coded for local purchase.

Requests for such local purchases (i.e., not coded for local purchase) will

be forwarded for approval via the chain of command to DC I&L (LP) with an

information copy to MARCORLOGCOM. In those instances where local purchase of

nonexpendable substitutes have been approved by DC I&L (LP), the quantity

acquired will be accounted for as addressed in this policy.

(3) Requisition and invoice/shipping documents will cite the unit

T/O&E allowance and the approval document from the MEF/SE/MARFORRES

authorizing the allowance quantity.

MCO 4400.150

29 JAN 2014

3-8 Enclosure (1)

(4) If a similar item has been procured locally and is already on the

property records, the purchase request document will cite this information.

This includes the established TAMCN, NSN/MCSN, current on hand quantity, and

approved allowance quantities

(5) Upon receipt of the item by the using unit, all nonexpendable

deployable assets procured in this manner will be added to unit property

records and custody records per chapter 2 of this policy.

b. Maintenance-related Items (Class IX Repair Parts and Components of

T/E Allowance Items)

(1) Using unit maintenance and supply sections must perform basic

technical research to determine if a valid NSN/NIIN already exists for a

particular part number and its Manufacturers’ Code. If a standard NSN/NIIN

is found, the unit will order the requirement through the normal requisition

process. A request to locally purchase a standard NSN/NIIN should only be

made when it has an Acquisition Advice Code (AAC) directing such; if the

source of supply has previously rejected a requisition citing local

procurement or fabrication; or a current backorder has a long lead time which

will degrade the unit's ability to carry out its mission. A complete

justification will accompany the purchase request, to include copies of

message traffic and applicable supporting documentation, such as a record of

cancellation status or long lead-time back order from the sources of supply

or the AAC.

(2) To provide visibility and usage, the using unit Supply Officer

will ensure usage is reported to the appropriate supply source, in order to

validate stockage data for future procurements if required.

c. Office Supplies or Commercial Industrial Products

(1) Garrison Retail Support Activities. The purchase of office

supplies or commercial industrial products (e.g., hand tools, cleaning

supplies, etc.) is mandatory through garrison retail support activities (e.g.,

USMC ServMart, GSAMart, etc.). Prior to procuring these types of items, the

using unit's Supply Officer will screen requirements list and determine

whether they are stocked at the local garrison retail support activity. If

the item is stocked, the unit will procure from the supporting garrison

retail support activity in accordance with local procedures. Virtual

garrison retail support activities (e.g., Virtual ServMart, DOD EMALL, etc.)

serve as an extension for local garrison retail support activities.

Regardless of payment method (e.g., direct billing, ServMart Card, GCPC,

etc.), GCPC micro-purchase thresholds as published in the references

identified in paragraph 10e of this chapter will be adhered to. Purchasing

office supplies from commercial vendors is a using unit’s last option.

(2) Exceptions. While use of the garrison retail support activities

is mandatory, there are certain exceptions:

(a) Commands with established Inter-Service Support Agreements

(ISSAs) and/or established prime vendor contracts will continue to execute

those agreements and contracts through the base periods only. Requests for

new agreements, renewal of existing agreements, and execution of option years

on contracts will be approved by DC I&L (LP) based on the inability of the

garrison retail supply chain to support the requirement. Commands with this

MCO 4400.150

29 JAN 2014

3-9 Enclosure (1)

type of support agreement or contract will use the garrison retail support

activity network and submit new-item requests to garrison retail support

activity store managers.

(b) Commands with geographically dislocated units from brick and

mortar stores (reserve units, recruiting stations, etc.) shall use the

virtual store as a primary source of requisition and follow established

policy for purchases from other sources of supply.

(c) As per the Federal Acquisition Regulations (FAR 8.002), local

commercial or other web-based sources may be used if the garrison retail

support activity (on-site and Virtual) and other mandatory sources of supply

cannot provide the requested items by the required delivery date; however,

these items will be identified to the garrison retail support activity in

order to obtain a waiver.

(d) For items not in stock (NIS), the unit may procure utilizing

the GCPC in accordance with paragraph 10e of this chapter.

d. Other Types of Supplies and Services. Requests for other types of

supplies or services which are not available through garrison retail support

activities, DLA, DoD stock points, or GSA, and which must be fulfilled from

an alternative source of supply (e.g., commercial industry) should be

forwarded to the Supply Officer as a purchase request as outlined in

paragraph 10 below. Examples include, but are not limited to, service

contracts, maintenance repairs, BPAs, etc.

10. Purchase Requests (PR). A purchase request is a requirement for

supplies or services which must be fulfilled from an alternative source of

supply. Purchase requests can be fulfilled either by submitting requirements

to the supporting RCO or by using the GCPC. In either case, the

requisitioning process is the same as outlined in paragraph 6 of this chapter.

The purchase request shall be routed to the Supply Resource Manager, via the

respective commodity Responsible Officer, using PR Builder to ensure it

cannot be fulfilled through the supply system. The Supply Resource Manager

will determine the best source and method to fill the requirement (e.g., RCO,

GCPC, Military Interdepartmental Purchase Request (MIPR), miscellaneous pay,

etc.). Using units are authorized to request materiel support alternatives

through purchase requests submitted to the supporting LCE, the SMU, Garrison

Retail Support Activity, the RCO, or executed using government purchase cards.

It is important to note that certain procedural elements identified in this

paragraph may be modified during contingency operations (e.g., the use of

PRBuilder/WAWF for routing, requirement for board approval, availability of

GCPC, etc.).

a. Criteria. Section 8 of the FAR, provides the order of precedence for

acquiring supplies and service. This means using the DLA/DoD/GSA supply

systems prior to initiating a purchase request. Fulfillment of

material/service support alternatives through commercial sources is

authorized if the requirement meets one of the following criteria:

(1) The item is not currently available within DoD inventories,

(2) DoD sources cannot fulfill the requirement by the using unit’s

required delivery date,

MCO 4400.150

29 JAN 2014

3-10 Enclosure (1)

(3) The item/service can be purchased commercially for less cost.

b. Procedural Requirements. Purchase request for material or service

support meeting the criteria outlined in paragraph 10a of this chapter will

meet the below procedural requirements.

(1) Requested commercial vendors will have an assigned Commercial and

Government Entity (CAGE) code and/or Data Universal Numbering System (DUNS)

number. Commercial vendors can request a CAGE code and DUNS number online.

(2) Purchase request for material without a catalogued NSN or with a

catalogued NSN in which the Marine Corps is not a registered user which are

recurrently used, bought, stocked, or distributed will require and

accompanying catalogue request. See reference (be) for guidance on catalogue

request.

(3) Purchase requests for general equipment (discussed in paragraph

19 of chapter 2) must be reviewed and approved by the supporting PPM

(supporting base, post or station property office). At that time, a

determination will be made as to whether the assets will be added to their

property accounting records and sub-custodied to the requesting unit. In

addition, the supporting PPM will direct purchase execution in accordance

with locally established policy.

c. Purchase Descriptions

(1) A purchase description may be used in lieu of a specification

where no applicable specification exists. An adequate purchase description

is an aid to competition and, in the absence of competition, aids in

determining the fair and reasonable price. A purchase description should set

forth the essential physical and functional characteristics of the materials

or services required. As many of the following characteristics as are

possible should be used in preparing purchase descriptions:

(a) Common nomenclature.

(b) Kind of material (e.g., type, grade, alternatives, etc.).

(c) Electrical data, if any.

(d) Dimensions, size, or capacity.

(e) Principles of operation.

(f) Restrictive environmental conditions.

(g) Intended use, including:

1. Location within an assembly.

2. Essential operating conditions.

(h) Equipment with which the item is to be used.

(i) Other pertinent information that further describes the item,

material, or service required. Purchase descriptions shall not be written so

MCO 4400.150

29 JAN 2014

3-11 Enclosure (1)

as to specify a product, or a particular feature of a product, peculiar to

one manufacturer and thereby precluding considerations of a product

manufactured by another company, unless it is determined that the particular

feature is essential to the Government’s requirements and that similar

products of other companies lack the particular feature to meet the minimum

requirements for the item. Generally, the minimum acceptable purchase

description is the identification of a requirement by use of brand name

followed by the words "or equal." This technique should be used only when an

adequate specification or more detailed description cannot feasibly be made

available by means other than reverse engineering in time for the purchase

under consideration. Purchase descriptions of services to be purchased should

outline, to the greatest degree practicable, the specific services the

contractor is expected to perform.

(2) The words "or equal" should not be added when it has been

determined per paragraph 10c(1)(i) above that only a particular product meets

the essential requirements of the Government as, for example:

(a) When the required supplies can be obtained only from one

source.

(b) Purchases negotiated for specified medicines or medical

supplies, when it has been determined that only a particular brand name

product will meet the essential requirements of the Government.

(3) Brand name or equal purchase description:

(a) The term "brand name product" means a commercial product

described by brand name and make or model number or other appropriate

nomenclature by which such product is offered for sale to the public by the

particular manufacturer, producer, or distributor. Where feasible, all known

acceptable brand name products should be referenced. When a "brand name or

equal" purchase description is used, prospective contractors must be given

the opportunity to offer products other than those specifically referenced by

brand name if such other products will meet the needs of the Government in

essentially the same manner as those referenced. If modifications to

manufacturers’ standard products to meet the purchase description

requirements are anticipated, a minimum of 30 calendar days shall be allowed

between issuance of the solicitation and opening of bids or receipts of

proposals, provided that periods of less than 30 calendar days may be set in

cases of urgency.

(b) Brand name or equal purchase descriptions should set forth

those salient physical, functional, or other characteristics of the

referenced products which are essential to the needs of the Government. For

example, when interchangeability of parts is required, such requirement

should be specified. Purchase descriptions should contain the following

information, to the extent available, and include such other information as

is necessary to describe the items required.

1. Complete common generic identification of the item

required.

2. Applicable model, make, or catalog number for each brand

name product referenced, and identity of the commercial catalog in which it

appears.

MCO 4400.150

29 JAN 2014

3-12 Enclosure (1)

3. Name of manufacturer, producer, or distributor of each

brand name product referenced (and address, if company is not well known).

(c) When necessary to describe adequately the item required,

applicable commercial catalog descriptions or pertinent extracts may be used

if such description is identified in the invitation for bid or Request for

Proposals as being that of the particular named manufacture, producer, or

distributor. Referenced specifications and standards shall be tailored in

their application. Tailoring consists of the exclusion of those sections,

paragraphs, or sentences of individual specifications and standards not

required for a specific purchase so that each document applied states only

the minimum requirements of the Government.

d. Purchase Request Builder (PR Builder)

(1) PR Builder is a secure, web-based system developed and

implemented by the Marine Corps to create, track, and approve purchase

requests (PRs). It is the first system in the Marine Corps’ paperless

acquisition business enterprise.

(2) Workflow

(a) The requirement is entered into PR Builder by the requiring

commodity Responsible Officer, or their delegated official, and is then

routed according to the DoDAAC or cross-DoDAAC workflow (i.e., request flows

from the commodity Responsible Officer to the Supply Officer for appropriate

routing).

(b) Once the proper authority within the workflow approves the

PR, it then moves to the fiscal portion of the work flow which can involve

multiple personnel depending on individual DoDAAC requirements and workflows.

(c) When the PR is approved by the Supply Resource Manager, or

their delegated appointed Fund Holder, a real-time fiscal transaction is

generated and sent to the Standard Accounting, Budget and Reporting System

(SABRS) for validation and posting.

(d) If the transaction passes the validation checks, the

transaction is posted to SABRS and the Supply Resource Manager, or their

delegated appointed Fund Holder, is notified almost immediately of a

successful transaction.

(e) If the transaction fails one of the validation checks, the

transaction is not posted, and the Supply Resource Manager, or their

delegated appointed Fund Holder, is provided an error code that identifies

why the transaction failed.

(3) PR Builder also interfaces with the Standard Procurement System

(SPS). For requirements that involve the creation of a contract, PR Builder

provides the contracting office the information needed to begin the

contracting process.

(4) DoDAACs that use PR Builder must have a requisition code of “00”

in the DoDAAD. Reference (d) and paragraph 13 of this chapter contains

additional information regarding requisition authority requirements and codes.

MCO 4400.150

29 JAN 2014

3-13 Enclosure (1)

(5) The following website contains additional information on PR

Builder: http://www.marcorsyscom.usmc.mil/sites/pa/

(6) Commands who are unable to be supported via the use of PRBuilder

will request a waiver from DC I&L (LP).

e. Purchase Card Procedures. When purchase requests are below a

prescribed dollar-value threshold, or they are for a particular type of

requirement, they can often be fulfilled through use of the GCPC or the Fleet

Fuel Card/Key.

(1) Government-wide Commercial Purchase Card (GCPC). Use of the GCPC

for fulfilling requirements for goods and services should be by exception and

not standing operating procedure. The GCPC is used for ordering supplies

that are not available through the normal supply system or have an extended

lead time for delivery. The GCPC allows units to receive supplies in a more

timely manner; however, this card should not be used to procure repair parts,

repair services, or POL by using units, unless the purchase meets the

criteria outlined below.

(a) GCPC personnel must comply with reference (ae), the DON

Purchase Card Instruction, and the USMC GCPC Standing Operating Procedures,

Appendix H to the Marine Corps Acquisition Procedures Supplement (MAPS), when

making purchases by GCPC.

(b) The GCPC is used to purchase supplies and services for

official government business valued at or below the micro-purchase threshold,

as published in the references identified in paragraph 10e(1)(a) of this

chapter.

(c) Cardholders must comply with restrictions on purchase of

items that are dangerous, have special security characteristics, or are

critical to the safe operation of a weapon system. In addition, items

associated with safety of flight, configuration controls or technical orders

should not be purchased through the GCPC purchase card.

(d) All GCPC purchases should be screened by the command/activity

GCPC Approving Official and the Supply Officer prior to executing the

purchase via the PR procedures outline in this chapter. When GCPC

cardholders are not part of a command/activity’s supply office and shipments

are not received by the supply office, a Receipt and Acceptor must be

appointed to accept goods and services on behalf of the command. Receipts

for goods that are deemed accountable, per chapter 2, shall be reported to

the Supply Officer within 2 work days of physical receipt for addition to the

command/activity’s accountable record for equipment (e.g., GCSS-MC or DPAS)

and subsequent issue to the commodity Responsible Officer.

(e) Units are required to coordinate with their supporting RCO

when commercial repair or a service is required prior to execution.

(f) Allowance Items. Prior to processing a Type 1 or 2 SAC 1

T/O&E allowance item purchase via the use of a GCPC, the requirements

identified in paragraph 9a of this chapter must be meet. After receipt, the

unit will place the asset on the appropriate unit or general equipment

records as per chapter 2 of this policy.

MCO 4400.150

29 JAN 2014

3-14 Enclosure (1)

(g) Cardholders remain responsible for performing essential

screening requirements. For example, the statutory requirements to purchase

supplies which are on the procurement list maintained by the Committee for

Purchase From People Who Are Blind or Severely Disabled, the federal agency

that administers the Ability One Program. Purchasing restrictions exist for

many items. Exceptions to the mandatory sources and restricted items must be

approved by the APC.

(h) Additional guidance on the administration of the GCPC

Program is available from the Marine Corps’ Contract Management Process Guide

located at: http://www.hqmc.usmc.mil/CMPG/

(2) Fleet Fuel Card/Key. The Fleet Fuel Card and/or Key is an

effective and convenient method to pay for fuel and related maintenance

services, when applicable, for DoD owned or leased vehicles and equipment at

base fueling locations (Key) or commercial service stations (Card). The

Fleet Fuel Key is the primary option and must be used when in close proximity

to a base on station. When the use of the Fleet Fuel Key is not supportable

(base/station fueling location is out of range, emergency situation, or on

duty where base is not co-located), the Fleet Fuel Card may be used.

Recruiters, Base/Post/Station Motor Transport Sections, and others may use

the Fleet Fuel Card in support of GSA leased commercial vehicles to pay for

repairs done on those types of vehicles, when turn in of the vehicles to a

central motor pool or repair facility cannot be accomplished or the breakdown

occurs at inaccessible or remote locations.

f. Receipt and Acceptance. Receipt and acceptance is the acknowledgment

that supplies or services conform to applicable quality and quantity

requirements, and may take place before, at time of, or after delivery. The

organization(s) responsible for acceptance shall be specified in the contract

(refer to paragraph 7e of this chapter regarding authority to receipt).

Acceptance ordinarily is evidenced by execution of an acceptance

certification on an inspection or receiving report form, commercial shipping

document, or packing list. The receiving report shall be prepared at the

time of delivery, or completion of services, and include the information

specified in 5 Code of Federal Regulations 1315.9(c) and FAR 32.905(f).

Acceptance reports shall be forwarded to the designated agency office by the

second working day after acceptance. The following correct information is

required on a receiving report or delivery ticket:

(1) Vendor name

(2) Contract number or other delivery authorization

(3) Item description, unit of measure, and quantity received

(4) Date of receipt and date of acceptance

(5) Printed name, title, telephone number, mailing address, and

signature (or electronic alternative) of the accepting or approving official.

(6) Upon receipt of goods or completion of contracted services,

activities will "certify" all reports of property received (RPR) on invoices

from vendors and/or appropriate DD forms, and memorandums for receipts for

contract services and materials. The unit will use the certification block

of the DD forms or enter a statement on the commercial invoice certifying

MCO 4400.150

29 JAN 2014

3-15 Enclosure (1)

that the property has been received. The unit will also identify thereon the

unit document number and contract number for cross-referencing at the paying

activity. These are then required to be forwarded to the supporting DFAS for

payment purposes.

(a) The RPR itself or the Contract for Supplies and Services (DD

1155) should be forwarded to the appropriate DFAS; (e.g., Kansas City,

Indianapolis, Columbus), and to the activity listed on the internal code of

the certified invoice.

(b) If the using unit supply cannot determine where to forward

the invoice, they are to contact the supporting RCO (e.g., base, post, or

station, MARFORRES, Marine Corps District).

(c) Independent organizations at remote locations who receive

contracted services and materials and the bill paying activity cannot be

readily determined should contact the DC P&R (RFA).

g. Wide Area Workflow (WAWF)

(1) WAWF – Receipt and Acceptance (WAWF-RA) is a secure, web-based

system implemented throughout the DoD to automate the preparation and

submission of invoices by vendors who provide (under contract) goods and/or

services to the DoD. It is also used by the DoD to electronically perform

the business functions associated with the receipt and acceptance of the

goods and/or services provided. The Marine Corps fully supports the DoD’s

goal of a 100 percent paperless acquisition enterprise. Marine Corps

acceptance and receiving DoDAACs must have a requisition code of “00” in the

DoDADD in order to use WAWF-RA.

(2) WAWF-RA creates a virtual folder to combine two of the three

documents typically required to pay a vendor. Specifically, the vendor

invoice and the government acceptance/receiving report. When the Contracting

Officer Representative (COR) certifies in WAWF-RA that the goods and/or

services were provided as required by the contract, the acceptance completes

the requirements for a payment package and WAWF-RA then sends a record of

invoice acceptance to SABRS to record an expense transaction. WAWF usage has

also significantly increased the number of discounts the Marine Corps “earns

and accepts” when a vendor offers a discount for early payment.

(3) The following websites contain additional information on WAWF:

(a) Marine Corps Systems Command, Paperless Acquisitions:

http://www.marcorsyscom.usmc.mil/sites/pa/

(b) Web based training (www.wawftraining.com). This web site

provides the required training for the WAWF system. The government staff may

focus only on the course introduction, WAWF-RA Overview,

inspection/acceptance, or LPO functions.

(c) WAWF Test Site (https://wawftraining.eb.mil). Users can

practice WAWF business functions at this test site. Click on the "Training

Instructions" link on the left side of the page to get the User ID and

Passwords to use in the training database.

MCO 4400.150

29 JAN 2014

3-16 Enclosure (1)

(d) WAWF Production Site (https://wawf.eb.mil). Once

transitioned to WAWF, users will be working on this web site for production

invoice processes.

(e) E-Invoicing Information (http://www.dcma.mil - click on

Electronic Invoicing).

11. Publication Requisitioning. Requisition management shall be conducted

using MCPDS within the administrative section per references (bk) and (br).

12. Source Documents. The process of requisitioning supplies and services

begins by creating a request using a source document. Source documents

contain all the required data required to obtain the needed supplies or

services. Source documents can be created in two ways: manually (physically

typing in the required information in a pre-established or standard form) or

electronically (entering the data into a computer system with the required

elements to create the order). Requests for goods and services are fulfilled

by entering data into various business feeder systems (e.g., GCSS-MC, PR

Builder, etc.) using a standard document number assigned by the Supply

Officer/Resource Manager. Copies of all source documents used to fulfill

requirements for goods and services shall be maintained by the

command/activity Supply Officer on behalf of the CO. For a complete listing

of source documents refer to Appendix S. For materiel and service type

transactions, the most common types of requisition source documents are:

a. DD 1348 DoD Single Line Item Requisition System Document. The DD

1348 is used to requisition materials from federal sources using the

interfund process (e.g., DLA Transaction Services, etc.). The DD 1348 can be

used to commit and obligate funds. A fund code is used to identify the

appropriation to be charged, and uses a Military Standard Requisitioning and

Issue Procedures (MILSTRIP) document number.

b. DD 1149 Requisition and Invoice/Shipping Document. The DD 1149 is

used to initiate the requisition of materials or services from federal and

non-federal sources. The document will use both the MILSTRIP document number

and the Standard Document Number (SDN). This form is used to request goods

and services, and when approved, becomes a commitment. This form can also be

used as a request for shipping (transportations of things) through the

Defense Transportation Office receipt/receiving report once goods and

services are delivered and becomes the evidence for recording an expense in

SABRS.

c. DD 1155 Order for Supplies or Services. The DD 1155 is a multi-

purpose form used throughout the DoD to document the legal, binding contract

issued to a private business for providing goods or services to the

government. The DD 1155 is an obligation document that can also be used as a

receipt document if the receipt block has been signed. If the bottom left-

hand blocks are complete, it is an expense document. If neither of these

blocks is completed, the DD 1155 is always an obligation document. If

additional space is required when completing the DD 1155, the SF 36

Continuation Sheet is used. The SF 1449 is phasing out the DD 1155.

d. SF 1449 Solicitation/Contract/Order for Commercial Items. The SF

1449 is replacing the DD 1155. The form contains identical information as

the DD 1155 and serves the same purpose for contract award.

MCO 4400.150

29 JAN 2014

3-17 Enclosure (1)

e. SF 30 Amendment of Solicitation/Modification of Contract. The SF 30

is used to amend or modify an existing DD 1155 or SF 1449 (i.e., obligating

document). This form is commonly used to change price, quantity, color, etc.

on the original contract. It is also used to cancel a contract in its

entirety. Some changes, such as color or size, may not have a financial

impact, while other modifications or even a cancellation, will impact SABRS

and a Resource/Fund Manager's account.

f. DD 250 Material Inspection and Receiving Report. The DD 250 is used

to record the receipt of goods shipped by a commercial vendor to a government

receiving point. For example, when a vendor ships goods to the government,

the receiving point will verify receipt, inspect the goods to ensure they

conform to the specifics of the contract, and complete the DD 250 when goods

are determined acceptable. The purpose of this form is to document the

receipt of material and is therefore considered an expense document.

g. DD 448 Military Interdepartmental Purchase Request (MIPR). The DD

448 authorizes funds for an external command outside the Department of the

Navy (DON) to perform work or services for the requesting command. For

example, if a Marine unit is training at an Army base, the Marine unit will

send funds to the Army Base comptroller with the DD 448 to fund work or

services required by the Marine unit. The external command has the option of

accepting or declining the work request.

h. DD 448-2 Acceptance of MIPR. The DD 448-2 is the formal acceptance

to the DD 448 used with other government agencies outside the DON. If the

external agency determines they can perform the requested work or services,

the external agency will complete the DD 448-2 and forward the document to

the requesting activity. Receipt of this document from the performing

activity constitutes an obligation of funds from the requesting unit's

accounts. The performing activity can choose whether to accept the funds on

a direct cite or reimbursable basis by checking Block 6a or 6b on the

DD 448-2.

i. NAVCOMPT 2275 Order for Work and Services. The NAVCOMPT 2275 is used

to request reimbursable work or services from any organization within the DON.

The form authorizes funds for an external command to perform work or services

for the requesting command. For example, a Marine unit is training at a Navy

base. The training unit will send funds to the external fiscal office or

comptroller to perform work or services for the unit that is conducting the

training. The NAVCOMPT 2275 requires an SDN with a Document Type Code (DTC)

of WR. Prior to the acceptance by the performing activity, the NAVCOMPT 2275

is considered a commitment document to the requestor. Once signed and

accepted by the performing activity, the form becomes an obligation document.

j. NAVCOMPT 2276 Request for Contractual Procurement. The NAVCOMPT 2276

is used to request contracting action for work or services from a Navy

contracting office or office in support of the command such as a facility

maintenance contract (2276 is used to request contracting support from Navy

Public Works). This form is a commitment when accepted. The obligation is

created once the actual contract (DD 1155 or SF1449) is issued. This form

requires an SDN with a DTC of RC.

k. DD 282 DoD Printing Requisition/Order. The DD 282 is used to request

printing/publication orders from the Navy or other DoD components. This form

requires an SDN with a Document Type Code (DTC) of “PT”. This form is

MCO 4400.150

29 JAN 2014

3-18 Enclosure (1)

considered a commitment when it has been created but not approved. After the

document has been approved and subsequently delivered to the printing office,

it becomes an obligation document. This document can also be used as an

expense document if the total amount of the order (i.e., actual cast) is

written on the form after it has been returned with the order from the

printing office.

l. SF 182 Authorization, Agreement, and Certification of Training. The

SF 182 is used to request and authorize payment for reimbursement for

training classes for both civilians and military personnel. (Note: DoD

memorandum of 25 September 1998 directs that the purchase card be used as the

method of payment for all training requests valued at or below $25,000.)

This form is considered a commitment form when it has been created but not

approved. After the document has been approved, it becomes an obligation

document.

m. SF 1164 Claim for Reimbursement for Expenditures on Official Business.

The Standard Form 1164 is used to reimburse government employees for expenses

they have incurred during the conduct of official government business. This

form is usually used to reimburse employees for mileage when authorized to

use a Privately Owned Vehicle for official government business. Since this

form authorizes reimbursement, and it is classified as a commitment,

obligation, and expense in one transaction. This form requires an SDN with a

DTC of “RV”.

n. Miscellaneous Pay. All supply requisitions that may result in a

miscellaneous payment must still be processed through the Supply Officer for

approval. Miscellaneous pay is only a method of payment. Each requirement

must still follow all approval routing to ensure proper internal controls are

present to eliminate unmitigated risks. All requirements must have an

approved purchase request prior to government obligation. A miscellaneous

payment is defined as a valid obligation of the government having one or more

of the following attributes:

(1) Payment per special authoritative arrangements other than a

formal contracting arrangement. These may include special acts through

legislative and executive orders. Example: DoD or Military Service

directives that are based on acts and executive orders.

(2) Payments authorized under formal contracting arrangements that

necessitate subsequent funding arrangements. Example: Funding in support of

centrally billed travel that is provided by individual travel order rather

than by funding on the contract.

(3) Payments and funding made by other federal agencies under special

authority that necessitates special billing/reimbursement conditions.

Example: Fees paid by Department of Justice (DoJ) or per instruction from

DOJ.

(4) Payments for non-recurring, non-contractual purchases. Example:

Payments for morale, welfare, and recreation or Marine Corps Community

Services functions when use of the GCPC is not feasible.

MCO 4400.150

29 JAN 2014

3-19 Enclosure (1)

13. Department of Defense Activity Address Directory (DoDAAD) Management.

The DoDAAD is an interactive database table managed by DLA Transaction

Services. The DoDAAD is the single authoritative source of address

information for DoD component application systems’ data requirements. The

address data is used by military services, federal agencies, and civil

agencies for identification purposes and to requisition, ship, or receive

materiel; fund/pay bills; and/or account for DoD-owned supplies and materiel.

a. Department of Defense Activity Address Code (DoDAAC). The DoDAAC is a

six-position code that uniquely identifies a unit, activity, or organization.

The first position designates the particular service/agency element of

ownership. An alpha character in the first position indicates DoD, and a

numeric character in the first position indicates non-DoD. The remaining

five positions are assigned by the service’s Central Service Point (CSP). As

a result, a commercial activity may be identified by different DoDAACs

assigned by each of the services. Two general categories of DoDAACs

applicable to the Marine Corps will be published in reference (d): "M"

prefixed codes, identifying Marine Corps units of the functional areas within

a Marine Corps activity; and, "L" prefixed codes, identifying contractors

with which the Marine Corps conducts business.

b. DoDAAC Assignment. DLA Transaction Services is the official

repository for DoDAACs and routing identifier codes (RICs) and is responsible

for the editing, routing, and electronic transmission of logistics

transactions to the military services, federal agencies, and contractors.

c. DoDAAD Central Service Point (CSP). Each service has a CSP which is

responsible for ensuring the accuracy and currency of the DoDAACs assigned to

that service. DC I&L (LP) is the DoDAAD CSP for the Marine Corps.

d. Authority Codes. In order to restrict requisitioning, shipment, and

billing by DoDAAC, DLA Transaction Services establishes authority codes for

each DoDAAC which are applicable to all services. The CSP assigns authority

codes to all new DoDAACs. There are eight authority codes which may be

assigned to a DoDAAC (see Figure 3-2 below):

MCO 4400.150

29 JAN 2014

3-20 Enclosure (1)

CODE

DESCRIPTION

DEFINITION

00

Requisition

Full authority. Authorized to initiate a

requisition/purchase for goods and services.

Authorized ship-to and bill-to.

Required: POC, Transportation Account Code (TAC) 1

Business Rules: No restrictions

01

Ship-To Only

Can only be used as a ship-to address with no

other implicit authority.

Required: POC, TAC 1, (TAC 2 and/or TAC 4)

Business Rules: Not authorized to requisition or bill-to

02

Finance (Bill-

to Only)

DoDAAC can only be used as a bill-to

Required: POC, TAC 1, TAC 3

Business Rules: Cannot requisition, cannot be used as a ship-to

designation

03

Do Not Ship to

Cannot be used as a ship-to destination

Required: POC, TAC 1

Restriction: TAC 2 and TAC 4 are not allowed

Business Rules: Cannot be used as a ship-to designation

04

DLA-DS Only

DLA-DS (e.g., State agencies surplus). Used to

identify activities who have no requisition

authority other than for DDS.

Required: POC, TAC 1

Business Rules: Cannot requisition new material. Only authorized

to obtain materials from DLA-DS (DoD excess only)

05

Non-

Requisition

Cannot initiate a purchase or request for goods

and services

Required: POC, TAC 1

Business Rules: Cannot requisition/purchase any good/services.

06

Free Issue

No cost option. This item is given away with no

associated costs (e.g., DLS-DS, National

Geospatial-Intelligence Agency (NGA) Maps)

Required: POC, TAC 1

Business Rules: Cannot requisition/purchase any good/services.

Similar to DLS-DS, but can request free of cost items (e.g., NGA

maps)

07

Administrative

Administrative only. This code is used for

information/identification purposes only (e.g.,

Defense Courier Service, or contingency/emergency

use)

Required: POC, TAC 1

Business Rules: Cannot requisition, cannot be used as a ship-to

designation, and cannot be used for billing.

Information/identification use only.

Figure 3-2.--DoDAAC Authority Codes.

MCO 4400.150

29 JAN 2014

3-21 Enclosure (1)

e. Business Partner Number (BPN). The BPN was implemented by DoD in 2003

to identify federal agencies and DoD units/activities who have requisition

authority to enter into agreement with one another for the acquisition of, or

provision for, goods and services. Activities must identify themselves with

a unique BPN on all intra-governmental transactions. All of the BPNs must be

registered in the Federal Registry System (FedReg) via the DoDAAD. The BPN

for DoD activities is a 9-character, alpha-numeric identifier consisting of

“DoD” followed by the 6-character DoDAAC (e.g., “DoD” plus “M67353” is a BPN

of “DoDM67353”). The FedReg BPN is loaded automatically from the DoDAAD;

consequently, proper DoDAAC assignment is critical to maintaining proper

management control over requisition authority.

f. Unit Responsibilities. All Marine Corps activities who have a DoDAAC

are responsible for ensuring their DoDAAC is maintained up to date with DLA

Transaction Services via their Major Command DoDAAC Monitor and the USMC CSP,

in accordance with reference (d). Marine Corps activities establishing or

changing DoDAAC or RIC information must contact the USMC CSP, via their Major

Command DoDAAC Monitor. The USMC CSP can be contacted at: Deputy Commandant

for Installations and Logistics, Headquarters, U.S. Marine Corps (LPC-2),

3000 Marine Corps Pentagon (Room: 2E211), Washington, DC 20350, Com:

571.256.7123 (DSN 260), or E-mail: USMCDODAACMGR@USMC.MIL.

g. Marine Corps activities requiring Navy DoDAAC listing/changes (Service

Designator Codes N, Q, R, and V) shall submit requirements to the CSP, via

their Major Command DoDAAC Monitor.

14. Supply Discrepancy Reports (SDR). Whenever there is a variation between

physical goods received and the data shown on the corresponding shipping

document(s) which is not the result of a transportation discrepancy or

product quality deficiency, the variation must be reported by the receiving

activity as a SDR. Reference (d) establishes the policy for submitting SDRs.

a. Criteria. SDRs encompass variations in condition or quantity,

incorrect and misdirected materiel, receipt of cancelled requirements,

improper or inadequate technical data or supply documentation, and/or any

unsatisfactory condition due to improper packaging which causes the materiel

to be vulnerable to loss, delay, or damage, or which imposes unnecessary

expense to the government. Shipping or packaging discrepancies attributable

to the responsibility of the shipper, including contractors, manufacturers,

or vendors, will be reported via SDR by the receiving activity. Submission

of SDRs applies to any requisitioned items, to include local purchases,

credit card purchases, and acquisitions made by acquisition program managers.

Amplifying guidance for discrepancies which meet SDR submission criteria is

contained in reference (d).

b. Reporting. Reporting of SDRs is an automated process within the

PDREP. Reference (q) provides detailed instructions on the use of PDREP.

(1) Product Data Reporting and Evaluation Program (PDREP). PDREP is

the central DON database used to collect, screen and provide discrepancy,

product quality deficiency and contractor/supplier performance data for

activities responsible for design, development, purchase, production, supply,

maintenance, contract administration and other acquisition functions as

appropriate, per reference (q). It is utilized by DON activities to collect

and evaluate product quality data, deficiency trends, and supplier

MCO 4400.150

29 JAN 2014

3-22 Enclosure (1)

performance history, to include the submission of SDRs via PDREP’s SDR

application module.

(2) SDR Application. Reporting of SDRs is an automated process

within the PDREP. The PDREP/SDR application permits records to flow between

PDREP and DoD’s WEBSDR. This interface ensures that SDRs submitted to a

valid RIC or DoDAAC are electronically routed to the action points within the

SDR application. Vendors and suppliers may also access the application to

answer SDRs submitted to them by government activities. PDREP has the

ability to migrate SDRs submitted as quality issues into Product Quality

Deficiency Reports (PQDR) and forward them via the DoD’s PQDR Inter-Service

interface to the appropriate PQDR action point. The primary purpose of the

PDREP/SDR application is to satisfy customer’s needs when submitting SDRs, to

collect data and generate metrics from the SDR System, and to improve supply

chain efficiency.

c. Action. Marine Corps users will utilize PDREP, and no other means,

for submission of SDRs. Utilizing electronic submission enables the Marine

Corps enterprise to collect data and generate metrics from the SDR system,

conduct trend analysis, and improves supply chain efficiency.

(1) Refer to reference (d) for detailed SDR submission procedures.

(2) SDR Originators. First time PDREP users must submit a User

Access Request Form to gain access to the system. The form must be completed,

printed out, signed, approved by a supervisor, and faxed to Naval Sea

Logistics Center (NSLC) at the number provided by their web page. Users can

access and submit the Request Form from NSLC’s web page at:

www.nslcptsmh.csd.disa.mil/accessforms/uarform.htm.

(3) PDREP SDR Support. Assistance with PDREP is available from the

NSLC Customer Support Desk at:

(a) Phone: Commercial: (207) 438-1690, DSN: 684-1690

(b) Fax: Commercial: (207) 438-6535, DSN: 684-6535

(4) On-line training for the use of the SDR application is available

at:

https://www.pdrep.csd.disa.mil/pdrep_files/reference/guides_manuals/pdf/PDREP

-SDR_UserGuide.pdf

MCO 4400.150

29 JAN 2014

4-1 Enclosure (1)

Chapter 4

Ammunition and Explosives (A&E)

1. Purpose. The purpose of this chapter is to provide overarching policy

for the effective management of ground A&E. While this order has

historically provided in-depth guidance on the management of conventional

ammunition and explosives, the publication of the Marine Corps Orders

referenced in the following paragraphs now provides the requisite detail in

the day-to-day administration and management of conventional ground A&E

(Class V (W)) assets.

2. Responsibilities.

a. DC I&L. Establishes policy for ammunition accounting in accordance

with references (b) and (c).

b. DC CD&I. Establishes policy, assigns responsibilities, and prescribes

the procedures for the Marine Corps Munitions Requirements Process for Class

V(W) to include the approval and publishing of the total munitions

requirements in accordance with reference (bw).

c. DC PP&O. Responsible for the Marine Corps Physical Security Program

and serves as the service level point of contact for coordination,

development, and execution of Marine Corps Physical Security policies for

AA&E, including MLSR reports in accordance with reference (bq).

d. CG TECOM. Publishes the annual ammunition training allowances prior

to the beginning of each fiscal year, in accordance with reference (bz).

e. MARCORSYSCOM. Provide policy and guidance for Class V(W) in the

following functional areas:

(1) Class V(W) Total Life Cycle Management (TLCM). Reference (bx)

integrates the processes that compose the total life cycle for Class V(W),

including requirement development, acquisitions, fielding, sustainment,

explosives safety and demilitarization.

(2) Class V(W) Administration and Management Program. Reference (by)

amplifies policy for the accountability, maintenance, requisitioning, and

serviceability of Marine Corps conventional ground ammunition for supported

units and supporting activities.

(3) Marine Corps Class V(W) Physical Inventory Control Program.

Reference (ca) provides Inventory Accuracy and Accountability guidance,

policy development, compliance oversight, and trend analysis, with the

standard of continually maintaining the DoD inventory accuracy standards.

(4) Marine Corps Explosive Safety Management Program. References

(bx) and (cb) is designed to manage, control, or mitigate the risks and

hazards inherent with A&E operations (i.e., storage, handling, and

transportation). It provides policy for the implementation, guidance, and

oversight of the Marine Corps A&E safety program and identifies specific

command responsibilities as they apply to the program.

(5) Personnel Qualification and Certification Program. Reference

MCO 4400.150

29 JAN 2014

4-2 Enclosure (1)

(cc) establishes policy for the implementation, guidance, and oversight of

the Qualification/Certification Program for Class V ammunition and explosives.

(6) Class V(W) Malfunction and Defect Reporting. Reference (cd)

establishes procedures for the reporting of Class V(W) in the event of a

malfunction or identification of a defect.

MCO 4400.150

29 JAN 2014

5-1 Enclosure (1)

Chapter 5

Investigations

1. Definitions

a. Investigation. For the purpose of this policy, "investigation"

refers to a procedure used by the Accountable Office (i.e., the CO) to

determine the facts related to the loss, damage, or destruction of Government

property; determine the present condition of such property; receive

recommendations to dispose, retain, and/or further account for such property;

and/or determine responsibility and extent of responsibility. Investigations

may be initiated as administrative inquiries or investigations based on the

parameters identified within reference (ag).

b. Accountable Individual. For the purpose of this policy, an

"accountable individual" is an individual detailed to duty involving

financial responsibility for Government property and/or funds in that

individual's custody. Such individuals may be held financially liable

through administrative means as discussed in paragraph 1e of this chapter.

Also refer to the local office of the Staff Judge Advocate or counsel and/or

the servicing Human Resource Office (for civilian employess) for additional

guidance.

c. Nonaccountable Individual. For the purpose of this policy,

"nonaccountable individual" is defined as an individual other than an

accountable individual. This individual may come into possession of

Government property in the performance of duty; however, this in itself does

not constitute accountability as it relates to the definition of an

accountable individual. There is no statutory authority to administratively

hold nonaccountable individuals financially liable for the loss, damage, or

destruction of property which results from their fault or negligence.

However, there is recourse available for COs against DoD personnel, as

discussed in paragraph 1e of this chapter. In addition, individuals may be

permitted to make voluntary restitution under the provisions of paragraph 11

of this chapter; and setoff action may be taken under section 0167 of

reference (ag) when they have been convicted by courts-martial for any of the

offenses listed there. Such setoff action is against the final pay and

allowances due at the time of dismissal, discharge, or release from active

duty. Additionally, setoff action may be taken from courts-martial

conviction or administrative determination resulting from investigations

pursuant to reference (ag) when approved on review by a general court-martial

authority, per section 0167 of reference (ag).

d. Fault or Negligence. For the purpose of this policy, "fault or

negligence" is defined as the omission of doing something which a reasonable

person, guided by those considerations which ordinarily regulate human

affairs, would do, or the doing of something which a reasonable and prudent

person would not do, which is the proximate cause of the loss, damage to, or

destruction of government property.

e. Indebtedness. The provisions of Section 0167 of reference (ag), the

DON Civilian Resources Manual, collective bargaining agreements, and/or local

command policy may establish indebtedness. When a service member is found

guilty by court-martial of one of the offenses listed in Section 0167 of

reference (ag), establishing indebtedness will be a separate action of the

MCO 4400.150

29 JAN 2014

5-2 Enclosure (1)

convening authority. The servicing Human Resource Office will advise on

indebtedness for civilian employees. Indebtedness established under either

of these conditions may be liquidated by a voluntary reimbursement by the

individual concerned. Imposing nonjudicial punishment does not prove

indebtedness.

2. Applicability

a. Policy

(1) General Information. As a matter of policy, all missing,

destroyed, or damaged government property belonging to the Marine Corps

(including ammunition), on charge to the Marine Corps, and belonging to other

government departments in the custody of the Marine Corps will be made the

subject of investigation as prescribed in reference (ag). An investigation

will be initiated when the cause of such condition is unknown, individual

culpability is suspected, or to determine responsibility for the loss, damage,

or destruction of the property. Investigative action should not be conducted

when the CO accountable for the property believes no fault or negligence is

indicated in the loss, damage, or destruction of government property; or for

reasons known to the CO, no fault, negligence, or responsibility can be found

and an investigation would constitute an unnecessary administrative burden.

Additionally, investigative action is not normally conducted when an

individual accepts responsibility for loss, damage, or destruction of

government property and voluntarily offers to reimburse the Government for

such loss, damage, or destruction.

(2) Property Not on Charge. Government property will not be picked

up on the accounting records for the sole purpose of initiating investigative

action. However, this does not preclude the CO from initiating an

investigation for government property below the dollar value accounting

threshold as detailed in this policy.

(3) Property of the Navy or Other Government Departments

(a) Manner and Format. Investigations conducted on property of

the Navy or other Government departments will be conducted as on Marine

Corps-owned property, and in the same report format.

(b) Recommendations. In making recommendations regarding

disposition of articles readily identified as Navy property, Investigating

Officers will be guided, insofar as possible, by the JAGMAN and all other

applicable orders. Copies will be distributed in accordance with the JAGMAN.

(4) Losses Involving a Shortage of Public Funds or Property.

Proceeds of sales of property or services not yet deposited with a DoD

disbursing officer are considered accountable property and require an

investigation to be conducted per reference (k). However, investigations

will not be required for the following cases:

(a) If there is no evidence a particular loss or deficit of funds

was caused by theft or fraud by an individual or by fault or negligence on

the part of an individual designated as accountable for the funds or property.

MCO 4400.150

29 JAN 2014

5-3 Enclosure (1)

(b) Retail shortages or differences not considered to be

disproportionate under chapter 2 of this policy and reference (bd), as

applicable, which authorize adjustments in accounting.

(5) If civilian employees are a subject of an investigation and/or

are required to provide a statement during the execution of an investigation,

coordination must be made with the servicing Human Resources Office for

applicable laws, rules, regulations, collective bargaining agreements, and/or

policies. Copies of all such investigations will be provided to the

servicing Human Resource Office if follow on administrative action (if any)

upon conclusion of the investigation.

b. Scope. Investigations will be conducted and reported as prescribed

by reference (ag) and will be combined with other investigations outlined in

reference (ag) and the contents of this chapter when government property is

involved. Disposition of the record of proceedings will be routed per

instructions contained in this chapter. The original or a copy of the signed

completed investigation shall be provided to the supply/property control

officer who administers the account for final endorsement and all applicable

accounting actions.

c. Exception. At the discretion of the CO, an investigative report of

Motor Vehicle Accident (SF 91A) may be used instead of JAGMAN investigation

when the investigation involves a motor vehicle accident and when:

(1) There is no death or injury.

(2) The total property damage does not exceed $5,000.

(3) There is no probable claim against the Government.

3. Accountability. Aside from any disciplinary action which might be taken

or contemplated for a military offense, accountable or nonaccountable persons

who cause government property to be lost, damaged, or destroyed may become

indebted to the United States Government for the amount involved, per the

provisions of paragraph 1e of this chapter. In each case involving the loss,

damage, or destruction of government property, it must be determined whether

the loss, damage, or destruction of government property occurred as a result

of fault or negligence of any person, as defined previously, and if

indebtedness exists as a result.

4. Investigative Action. Investigative action to inquire into the

circumstances surrounding the loss, damage, or destruction of government

property can be initiated in one of two methods; CO directed, or through a

request for investigation.

a. CO Directed. The CO may direct investigative action to determine the

circumstances surrounding the lost, damage, or destruction of government

property at any time upon notification. In most circumstances, CO directed

investigations will result from the CO’s decision to initiate investigative

action to properly address unresolved discrepancies surrounding a RO

Discrepancy Letter (refer to paragraph 11b(3) of chapter 2) or the command’s

Inventory Results Letter (refer to paragraph 9d(7) of chapter 2). Regardless

of the original notification, the CO will determine if an investigation is

necessary and initiate investigative action through his subsequent

endorsements or via separate correspondence.

MCO 4400.150

29 JAN 2014

5-4 Enclosure (1)

(1) Upon receipt of notification (i.e., Supply Officer Discrepancy

Letter, Supply Officer Inventory Results, or other correspondence such as

accident reports), the CO shall decide whether or not to conduct an

investigation.

(2) After reviewing the notification, the CO may determine

investigative action is not warranted and will direct the Supply Officer to

make the necessary adjustments to the property records through endorsement of

the Supply Officer’s endorsed RO discrepancy letter, endorsement of the

Supply Officer’s Inventory Results Letter, or via separate correspondence.

This will serve as adjustment approval for the Supply Officer to make the

necessary adjustments to the balance records in accordance with paragraph 11

of chapter 2.

(3) When investigative action is deemed necessary, the CO must

direct such investigative action in writing (i.e., endorsement of the Supply

Officer’s endorsed RO discrepancy letter, endorsement of the Supply Officer’s

Inventory Results Letter, or via separate correspondence). The CO shall

appoint an Investigating Officer within five calendar days of the original

notification (i.e., date of Supply Officer’s endorsed Discrepancy Letter,

date of Supply Officer’s Inventory Results Letter, or date of other

initiating notification such as e-mail or accident report).

(4) The Supply Officer will assign an internal voucher number to the

investigation to ensure proper tracking and maintaining of investigations per

paragraph 11f2 of chapter 2.

(5) The original notification documents (e.g., Discrepancy Letter,

Inventory Results Letter, etc.) with all endorsements and enclosures will be

made the second enclosure to the investigative report, after the

Investigating Officer's appointing order.

(6) Once the investigation has concluded and the CO has reviewed the

recommendations from the Investigating Officer, the CO will provide his final

decision(s) as an endorsement on the investigation. The CO decision(s) must

state directed actions required to adjust the property records. Once the

Supply Officer receives an endorsed signed copy of the investigation, he/she

will perform the following actions:

(a) Complete all approved recommendations from the investigation

(e.g., adjust the accountable records, dispose of damaged property, etc.).

Adjustments to the balance records will be conducted in accordance with

paragraph 11 of chapter 2.

(b) Certify the bottom of the last page of the investigation that

all actions have been accomplished as directed and include the document

number(s) that were used to adjust the supply records.

(c) After completing all required actions, retain a copy of the

investigation in the voucher file in accordance with paragraph 11i of chapter

2. Additionally, provide sufficient copies of the completed report as

specified in paragraph 10a of this chapter.

b. Request for Investigation. When there is known loss, damage, or

destruction of government property; or any unaccounted for controlled,

MCO 4400.150

29 JAN 2014

5-5 Enclosure (1)

sensitive, or pilferable item is discovered, a Request for Investigation will

be submitted to the CO via the Supply Officer. In most circumstances, the

Request for Investigation will be initiated by an RO, but any individual

within the command can initiate the request. The request will be in naval

letter format and will be submitted within five calendar days of the

discovery. The letter should describe the property and its current condition;

state whether or not the requesting individual accepts responsibility for the

loss or current condition of the property; state whether or not the reporting

individual wants to voluntarily reimburse the government; and describe the

circumstances surrounding the loss, damage, destruction, or discovery.

The mere fact an investigation is requested may not mean investigative action

is required. The CO's prerogative should be exercised in consonance with

guidance prescribed here to ensure needless administrative action is

minimized. The CO will determine if an investigation is necessary and

initiate investigative action through his subsequent endorsement.

(1) Upon receipt of a Request for Investigation, the Supply Officer

will evaluate the facts and circumstances surrounding the loss, damage,

destruction, or discovery of the property and will recommend to the CO

whether or not investigative action is warranted via endorsement. The

Request for Investigation and Supply Officer endorsement, will be forwarded

to the CO, within five calendar days of the original Request for

Investigation. Upon receipt of the endorsed request for investigation from

the supply officer, the CO shall decide whether or not to conduct an

investigation.

(2) After reviewing the Request for Investigation and Supply Officer

endorsement, the CO may determine investigative action is not warranted and

will direct the Supply Officer to make the necessary adjustments to the

property records through endorsement of the Request for Investigation. This

will serve as adjustment approval for the Supply Officer to make the

necessary adjustments to the balance records in accordance with paragraph 11

of chapter 2.

(3) When investigative action is deemed necessary, the CO must

direct such investigative action in writing through endorsement to the

Request for Investigation. The CO shall appoint an Investigating Officer

within five calendar days of the Supply Officer’s endorsed Request for

Investigation.

(4) The Supply Officer will assign an investigation voucher number to

the investigation to ensure proper tracking and maintaining of investigations

per paragraph 11f(2) of chapter 2.

(5) The original Request for Investigation with all endorsements and

enclosures will be made the second enclosure to the investigative report,

after the Investigating Officer's appointing order.

(6) Once the investigation has concluded, and the CO has reviewed the

recommendations from the Investigating Officer, the CO will provide his final

decision(s) as an endorsement on the investigation. The CO decision(s) must

state directed actions required to adjust the property records. Once the

supply officer receives an approved, signed copy of the investigation (to

include CO’s endorsement), he/she will perform the actions identified in

paragraph 4a(6) above.

MCO 4400.150

29 JAN 2014

5-6 Enclosure (1)

5. Convening Authority

a. Authorization. Convening authority (CA) relates to the authority to

convene general or special courts-martial, per the Manual for Courts-Martial.

The CA can direct a JAGMAN investigation. Officers in the following

categories are authorized CA to direct JAGMAN investigations.

(1) All CGs.

(2) All officers having general or special court-martial convening

authority.

(3) Any other officer so designated by the CMC.

b. Command Authority. At Marine Corps activities where there is no

commissioned Marine officer, or where the CO personally affects supply

administration, investigations will be ordered by the CO of the next level of

command.

c. Reserve Applicability. COs of Marine Corps Reserve battalions or

separately administered companies or batteries are authorized to convene

JAGMAN investigations. When the best interest of the Government would be

served, or when there are no eligible persons in the unit to serve as

Investigating Officers, the next level of command will convene the

investigation.

6. Investigating Officer

a. Appointment

(1) The convening authority will be governed by reference (ag) in

appointing a member or members to a court of inquiry, formal fact-finding

body, or informal fact-finding body.

(2) Informal fact-finding body action will be undertaken by one or

more officers, Staff Non-Commission Officers (SNCOs), or civilian employees

of the Department of the Navy working with the Marine Corps, as a member or

members, and will be appointed in writing by the convening authority.

(3) The type of investigation and number and grade of members

appointed will vary directly with the circumstances and the value of the

property, as determined by the convening authority to best serve the interest

of the Government. Once appointed, the investigation becomes the

individual’s primary duty. The investigation will be conducted in accordance

with reference (ag). Extensions may be authorized by the convening authority.

The extension request and reply will be in writing and become part of the

completed investigation (a printed copy of an electronic request and approval

will also suffice).

b. Special Qualification. When the material subject to investigative

action is technical in nature, an officer, SNCO, or civilian employee

possessing technical knowledge of the materiel required should be assigned as

(one of) the Investigating Officer(s). When technical knowledge of the item

is required and not available within the command, commercial services, if

applicable, may be obtained to determine the extent of damage and/or cost of

repair. Statements and estimates provided by commercial services shall be

MCO 4400.150

29 JAN 2014

5-7 Enclosure (1)

attached to the report of investigation to assist the Investigating Officer

and reviewing authority in making their recommendations/determinations.

c. Restriction. The following officers, SNCOs, or civilian employees

will not be appointed as Investigating Officers:

(1) The CO of the activity convening the investigation.

(2) The officer/SNCO/civilian charged with custody of the articles.

(3) Any officer/SNCO/civilian for whom the officer administering

supply functions submits fitness reports or performance ratings.

(4) Any officer/SNCO/civilian junior to an officer/SNCO/ civilian

whose conduct is being investigated, except when circumstances make such an

appointment mandatory as determined by the convening authority.

(5) The officer/SNCO/civilian administering supply and fiscal

functions over government property involved in the investigation.

(6) Officers/SNCO/civilians serving with the FSMAO.

(7) Any officer/SNCO/civilian who may have vested interest in the

findings or recommendations of the Investigating Officer.

(8) Bargaining unit employees.

7. Duties of Investigating Officers

a. General Information. Except in cases of missing, lost, or stolen

property, Investigating Officers will inspect government property subject to

investigation and thoroughly review the circumstances attending its status.

In cases of lost, stolen, or missing property, Investigating Officers will

inquire into the measures taken to prevent such loss or theft by the person

whose custody the property was placed in. When damage results as a violation

of specific instructions or orders regarding the use or manipulation of

equipment or vehicles, the person(s) violating such instructions will be held

responsible, unless it can be clearly shown that there were sufficient

extenuating circumstances to offset a finding of fault or negligence.

b. Determinations. In all cases of damage, Investigating Officers will

determine the value of such damage and whether economical repairs can be made.

As a general rule, an article of government property is considered

economically reparable if the cost of the repair does not exceed 65 percent

of the replacement cost, and the article is necessary and required for

further use. This judgment is based on a technological evaluation, age of

the equipment, cost of new parts and labor to install, availability of parts,

original and replacement cost. The urgency for the items to be restored or

replaced for deployment or contingency will be considered in such

recommendations and will be briefly indicated in the report of investigation.

c. Statements. Investigating Officers will obtain statements, as

appropriate, from persons involved in or cognizant of the circumstances but

will not be limited in the investigations to an examination of the statements.

When physical indicators contradict or amplify such statements, these matters

will be reported to the convening authority. Investigating officers should

MCO 4400.150

29 JAN 2014

5-8 Enclosure (1)

ensure statements are obtained in compliance with the Privacy Act of 1974,

Article 31 of the UCMJ, and Section 0215 of reference (ag). If investigative

action was CO-directed per paragraph 4a of this chapter, the Investigating

Officer is required to obtain a statement from the Responsible Individual

stating whether he/she is willing to reimburse the Government for all or part

of the loss or damage. All individuals are required to be counseled per

paragraph 11 of this chapter. This counseling statement will be included as

an enclosure to the investigative report.

d. Recommendations

(1) Responsibility. The Investigating Officer will include an

opinion about the probable cause for the loss, damage, or destruction. When

the Investigating Officer indicates fault or negligence, he/she will also

make a recommendation indicating the applicable service member or service

members be held, or not be held, responsible for the loss or damage. The

Investigating Office will not make a recommendaton indicating civilian

employees be held, or not be held, responsible for the loss or damage. At

the conclusion of the invesitagtion, such investigations will be forwarded to

the servicing Human Resource Office for appropriate coordination and action.

In case of loss, when cause and responsibility cannot be fixed, the

Investigating Officer will substantiate why the cause and responsibility

cannot be fixed. Recommendation(s) made must be based entirely on the facts

and opinions presented in the report, as the reviewing authorities may have

no other information.

(2) Disposition of Property. In all cases, appropriate

recommendations for disposition of property and its further accountability

will be included in the report.

(3) Additional Recommendations. Pertinent recommendations on other

matters, such as safety and beneficial suggestions, should also be included

for consideration and possible adoption.

e. Examination of Property. Articles reported as worn out will be

carefully examined to see if their condition was caused by reasonable usage

and was not due to misapplication or other than intended use. Items "worn

out in service" will not be made the subject of investigation but, rather,

condition coded and disposed of per references (d), (f), (h), and (i).

Excessive wear in numerous items should be monitored for quality defects. If

quality defects are the cause, the unit Supply Officer will ensure the

appropriate documents (i.e., SDRs and PQDRs) are submitted.

f. Preparation of Report. Investigating officers responsible for the

report of investigation will ensure submission to the convening authority for

review and appropriate action. If multiple Investigating Officers have been

appointed, the original (majority) report will be signed by each member who

concurs in the findings. Should a member not concur, the member will submit

an additional signed "minority" report. The minority report will be embodied

in the record immediately after the majority report. The report will then be

submitted to the convening authority for review and appropriate action.

Reports of investigation will embody the following elements:

(1) General Summary.

(a) Finding of fact.

MCO 4400.150

29 JAN 2014

5-9 Enclosure (1)

(b) Opinions, if a finding of fact has not been definitely

established.

(c) Recommendations.

(2) Present condition of the Property.

(a) Serviceable.

(b) Operational ready.

(c) Altered without authorization.

(d) Unserviceable.

(e) Obsolete.

(f) Missing, lost, or stolen.

(3) Cause of Present Condition. Describe the circumstances leading

to the present condition.

(4) Disposition Recommendation. The following will be used as a

guide for appropriate terminology and instruction. Items included in rebuild,

recovery, or repair program, such as the recoverable item program, will be

processed and/or disposed of as instructed by the individual program.

(a) Retain for use.

(b) Excess and dispose of as required by current regulations.

(c) Cannibalize; usable parts returned to stock for repair of

like items and residue to authorized DLA-DS for disposition per references

(d), (f), (h), (i), and (bm).

(d) Dispose of per references (d), (f), (h), and (i).

(e) If serviceable, drop and take up under new size or

nomenclature.

(f) Drop from the property records.

(g) Additional recommendations.

8. Reports Submission. The investigative report will normally be completed

and returned to the convening authority within 30 calendar days from the

Investigating Officer's appointment date. This reporting requirement is

exempt from reports control per reference (u), part IV, paragraph 7k.

When an individual is assigned an investigation, it becomes that person's

primary duty. When complications are met, the convening authority may

authorize extensions until the report is submitted. The request for

extension and reply to the request will be in writing and will become a

permanent part of the completed investigation (a printed copy of an

electronic request and approval will also suffice).

MCO 4400.150

29 JAN 2014

5-10 Enclosure (1)

9. Reviewing Authority

a. Local Command. Reports of investigation will be submitted via the

convening authority/CO to the reviewing authority (the next higher major

command) for review and final action.

b. Higher Authority. A copy of the following investigations involving

property will be submitted to the DC I&L (LP):

(1) Investigations involving a finding of "significant fraud, waste,

abuse, or significant shortage of public funds."

(2) Investigations directed by separate Marine Corps directives.

(3) Investigations of incidents reportable under reference (bt) for

MLSR Government Property.

c. Transmittal Letters. A copy of Letters of Transmittal and all

endorsements will be appended to the file copy of the investigation held by

the initiating activity for all reports of investigations forwarded to DC I&L

(LP).

10. Review and Approval of Investigation

a. Action Required. In the course of the review, the convening

authority will ensure the Investigating Officer has either fixed the cause

and responsibility for any loss of Government property or has substantiated

why the cause and/or responsibility cannot be fixed. Except in cases of

investigations convened by COs of Reserve units, the convening authority will

take final action on the report or will forward it, with such comments and

recommendations as the CO desires, to the reviewing authority for final

action, or when appropriate, to DC I&L (LP) via the chain of command. In

cases of investigations convened by COs of Reserve units, the convening

authority will forward the completed report of investigation, with such

comments as that person may desire to make, to COMMARFORRES, through the

appropriate levels of command, for final action; or when appropriate, to DC

I&L (LP). In all cases, after final action has been taken, the organization

that maintains the stock records carrying the property involved will be

furnished sufficient approved copies, together with supporting papers, for

property accounting purposes.

b. Limitations. Convening/reviewing authorities may not disregard the

findings of the Investigating Officer if established by fact. However, since

the investigation is purely advisory in nature, exception may be taken to the

opinions and recommendations. Exceptions taken will be set forth in detail

in the convening/reviewing officer's action. If, for any reason, final

action cannot be taken, reports of the investigation will be returned to the

Investigating Officer, by endorsement, for reconsideration, pointing out the

matter of differences. Should the Investigating Officer adhere to the first

report and the convening authority not agree, the reviewing authority may

disapprove the report in whole or in part. The reviewing authority will

forward the entire record to the DC I&L (LP) stating in detail the parts

which are disapproved and including recommended final action for approval.

Additionally, reviewing authorities forwarding endorsements should, where

practical and not detrimental to final action/judgment by higher authority,

direct the supply/property control officer to effect the necessary

MCO 4400.150

29 JAN 2014

5-11 Enclosure (1)

disposition, adjustment, and replacement actions for the property under

investigation. When the original copy is forwarded to DC I&L (LP), which

will be answered by letter, a tentative pending copy should be filed; and,

upon receipt of the original from DC I&L (LP), the pending copy will be

replaced by the original.

c. Referral to Responsible Person. When it is recommended that a

service member be held responsible for the loss, damage, or destruction of

government property by reason of "fault or negligence" and the convening and

reviewing authority concurs, the entire matter will be referred in writing to

the individual for a statement of whether that person accepts or disclaims

the findings. Service members will be allowed the opportunity to consult

with a judge advocate. Should the person accept the finding, the individual

will sign a statement, consenting or declining (in whole or in part) to

voluntarily reimburse the Government for the amount of loss or damage. At

the time of referral, the individual will be advised of the provisions of

Parts A and B of Volume 7 of reference (k) (the DoD Pay and Allowances

Entitlement Manual) relative to voluntary repayment by installment for the

remaining period of active service. Should the service member concerned

consent to voluntarily reimburse the Government, a Cash Collection Voucher

(DD Form 1131) will be prepared and submitted to the disbursing officer for

action per Volume 5 of reference (k), after the requirements of paragraph 11

of this chapter have been completed. Payments will be scheduled to permit

liquidation before the service member's normal date of discharge or release

from active duty.

d. Further Action. Upon completion of the action contained in the

preceding paragraphs, the matter will be turned over to the convening

authority who will conduct a final review and take appropriate action. When

administrative action is being administered, considered, or not considered,

an appropriate remark to that effect (with results, if appropriate) will be

contained in the convening authority's endorsement, along with a report of

action taken to effect reimbursement for the loss or damage involved. If

desired, a statement from the disbursing officer may be attached. Supply

action on property involved will not be withheld pending disciplinary action.

Any investigation involving civilian employees will be provided to the

servicing Human Resource Office for appropriate coordination and action.

11. Acceptance of Responsibility for Loss, Damage, or Destruction of

Government Property. Reference (k) establishes the policy, process, and

procedures for financial liability for government property that is lost,

damaged, destroyed or stolen.

a. General Information. Voluntary reimbursement or replacement for the

loss damage, or destruction of government property will be considered as a

free act for personal reasons and will not imply an admission of

responsibility for fault or negligence for any purpose. No threat of

administrative action or offer to withhold such action shall be made to

influence an individual's decision whether to accept responsibility for the

loss, damage, or destruction of government property and to voluntarily

reimburse the Government. If reimbursement is offered, such reimbursement

should be for the full value of the property or, if applicable, the cost of

restoring the property to its past condition. Reasonable caution will be

taken to decide that such offers are not employed as a means to acquire, for

personal use, articles not customarily offered for sale or in short supply.

Voluntarily reimbursement does not relieve an individual from the

MCO 4400.150

29 JAN 2014

5-12 Enclosure (1)

consequences of wrongful acts. When an individual consents to reimburse the

Government for public property lost, damaged, or destroyed, the transaction

will be handled as a cash collection, using a DD From 1131. A cash

collection requires an administrative unit diary entry. A record of such

action will become part of the investigation.

b. Specific Action to be Taken Prior to Acceptance of an Individual's

Voluntary Reimbursement. The following action will be taken before a service

member's voluntary reimbursement.

(1) The service member will be advised, as certified in writing by a

senior commissioned or staff noncommissioned officer, of the contents of the

preceding paragraph. Receipt of such advice will be acknowledged in writing

by the individual. Both statements will be brief. It is not necessary to

include the contents of paragraph 11a of this chapter in the written

statement.

(2) In addition, the service member will be advised, in writing, of

the right to consult with a judge advocate concerning the reimbursement, if a

judge advocate is reasonably available in the immediate geographical area.

In the event a judge advocate is not available or if the individual waives,

in writing, the right to consult with a judge advocate, a written statement

of such nonavailability or the written waiver will be appended to the

relevant investigative report (if any); and a copy will be attached to the

voluntary consent for reimbursement.

(3) All matters regarding civilian employess will be forwarded to the

servicing Human Resource Office for appropriate guidance and action.

c. DD Form 1131 (Cash Collection Voucher). Upon election to make

voluntary payment and after the provisions of the preceding paragraphs have

been met, a DD Form 1131 will be filled out per Volume 4 of reference (k).

In the interest of economy and efficiency, annotations of the counseling and

required signatures should be done on the same form, where possible.

12. Ordnance Materiel

a. General Information. Ordnance materiel which is subject to

investigation will be described with detailed nomenclature. Reports of

investigation should never recommend "automatically" that ordnance materiel

be disposed of or sold. Reports should recommend ordnance materiel be

returned to the normal source of supply for repair or other authorized

disposition, per the supporting system users manual or current disposition

instructions.

b. Small Arms. Investigating officers, when examining the

circumstances of the condition or status of unserviceable small arms, will

refer to all applicable Technical Manuals, and consider the following:

(1) Examination of property as stated previously.

(2) Maintenance of property by cannibalization is not normally

authorized; therefore, if parts are missing due to apparent cannibalization,

such condition will not be accepted as a legitimate cause of unserviceability,

unless one of the following is involved:

MCO 4400.150

29 JAN 2014

5-13 Enclosure (1)

(a) Extreme urgency, in forward areas only.

(b) Specifically authorized by MARCORLOGCOM using the Recoverable

Item Report process.

c. Serviceability Standards for Small Arms. Serviceability standards

for small arms are prescribed in pertinent directives issued by the CMC and

in Department of the Army TMs. When qualified ordnance maintenance personnel

are available, weapons will be thoroughly inspected by these personnel. A

statement of their findings will be included in the report of investigation.

13. Missing, Lost, Stolen, or Recovered (MLSR) Government Property.

Reference (bt) prescribes the policy and procedures within the Marine Corps

for reporting MLSR Government property. Reports required are mandatory and

will be submitted per the guidance contained in reference (bt). MLSR

reporting is not required for administrative gain and loss transactions since

these transactions represent no physical gain or loss. MLSRs submitted for

CCI equipment will be conducted as a parallel effort to the Communication

Security (COMSEC) Incident Report EKMS 1B. EKMS Managers and Supply Officers

will reconcile both reporting and investigation results upon authorization

for adjustments to respective APSRs. A record of MLSR reports will be

maintained in accordance with paragraph 11i of chapter 2

14. Subsistence Investigations. Refer to reference (cj).

MCO 4400.150

29 JAN 2014

6-1 Enclosure (1)

Chapter 6

Miscellaneous Accounting

1. General Information. This chapter concerns accounting for assets not

specifically addressed elsewhere in this policy.

2. Retention of Records and Secure Storage for Cash Collection

a. A record of each cash collection transaction involving reimbursement

for missing, lost, destroyed, or damaged Government property will be kept in

accordance with paragraph 11i of chapter 2.

b. Appointment and revocation letters, signed by the CO, for the

authorized custodian, alternate custodian(s), and audit and verification

officer will be maintained on file in accordance with paragraph 11i of

chapter 2.

c. Records of the collection of funds, quarterly audit and verification,

and deposit of funds with the disbursing officer will be kept in accordance

with paragraph 11i of chapter 2.

d. Safes less than 750 pounds and safes up to 1,500 pounds which are

mounted with wheels or casters shall be bolted to the deck unless protected

by controlled access, to include alarm systems, security guard/patrols, or

monitoring systems.

e. Specific procedures are provided in Volume 5 of reference (k).

3. Initial Issue Provisioning (IIP)

a. Definition. IIP encompasses identification, selection, acquisition,

and instructions for positioning of necessary initial support items in the

appropriate segments of the supply system and levels of maintenance before

new equipment is placed in service.

b. General Information. IIP provides the unit with range and depth in

repair parts, special tools, and special equipment until the supply system

can adequately predict and provide for support based on supply and

maintenance usage history.

c. Accounting Policy. IIP operating stock forwarded to units will not

be released until authorized and notified in writing by the MEF/MARFORRES

Commander to place the supporting item into service. Units that are not

authorized operating stocks will roll back the stocks to the supporting LCE.

Provisioning policy is further addressed in reference (ba), the Marine Corps

Provisioning Policy. Equipment specific information, to include procedures

concerning repair parts, will be provided to the unit by the IIP.

4. Sensitive/Controlled Blank Forms Accountability

a. Sensitive/controlled blank forms will be provided accounting and

physical security measures to prevent theft or misuse. Part II of SL-8-

09993A identifies these forms. Serialized control will be required when

sensitive blank forms have serial numbers. Issues of sensitive blank forms

will be to authorized recipients only. Those individuals authorized to

MCO 4400.150

29 JAN 2014

6-2 Enclosure (1)

receipt or maintain sensitive/controlled blank forms will be designated, in

writing, by the CO. Each authorized recipient will provide a sample

signature to be kept on file by the Supply Officer. Sensitive/ controlled

blank forms maintained by supply will be inventoried monthly and receipts,

issues, and on hand quantities will be reconciled.

b. Supply accountability and inventory requirements pertain only to

sensitive blank forms within the supply distribution system until issued to

the user. After procurement, a record of issue including serial numbers will

be maintained by the supply office per chapter 3 of this policy.

5. Personal Effects and Baggage. The handling of uniform clothing, personal

effects, and Government property for certain individuals (for example,

individuals who become deceased, hospitalized, or in an unauthorized absence)

is the responsibility of the CO. The control, safeguarding, and processing

of personal effects and baggage will be administered as established in

reference (ax).

6. Packaged Operational Rations (PORs)

a. PORs will be requisitioned as required and in accordance with

references (cg) and (ch). Rations will not be stocked at the unit unless

directed by higher headquarters.

b. Sales of PORs will be conducted per references (cg) and (ch).

7. Accounting for Classified Materiel. Units will receipt for, store, and

issue materiel coded in the management data list as "classified" per

instructions contained in reference (w).

8. Accounting for Medical and Dental Supplies and Equipment. Consumer-level

accounts will not expend O&M,MC or Operations and Maintenance, Marine Corps

Reserve (O&M,MCR) funds in support of in-garrison medical/dental care. The

management and procurement of Authorized Medical and Dental Allowance List

(AMAL/ADAL) materiel will be issued, recorded, and controlled the same as

Marine Corps organic property. Class VIII medical materials, specifically

AMALs and ADALs, are included in a unit's T/E to formalize the requirement

for such medical material in support of the unit's mission. AMALs/ADALs are

considered war reserve/continuance stocks with a 15-day requirement held and

managed by the OPFORs. Medical Logistics (MEDLOG) companies will account for,

maintain physical custody of, sustain, and modernize the AMALs/ADALs for

their supported units while those units are at home station. See references

(al) and (bu) for further guidance.

9. Temporary Loans of Organic Property

a. Internal Temporary Loans. Internal temporary loans include the

loaning of organic equipment from an owning Marine Corps unit to another

Marine Corps unit within the same MARFOR and will be tracked using the APSR.

(1) Internal temporary loans of organic property to another command

are neither desired nor encouraged. However, upon determination by the next

higher level of command (i.e., the lowest level in which the supporting and

supported unit have in common) that such a loan is necessary and in the best

interest of the unit, a loan may be authorized. As a general rule, a

temporary loan of organic property will be made for 30 calendar days. If

MCO 4400.150

29 JAN 2014

6-3 Enclosure (1)

necessary, the loan must be renewed every 30 calendar days, not to exceed 1

year. If the requirement for the equipment exceeds one year, the applicable

unit must identify the requirement through the submission of a TOECR.

(2) Internal temporary loans will not be used in lieu of authorized

allowances. Requirements should be anticipated and changes to T/O&E

allowances will be initiated whenever possible.

(3) The CO who controls the account will establish procedures

ensuring recovery of property issued on temporary loan. The time of the loan

will be annotated on the loan document. Temporary loan records will be

maintained separate from permanent issue records of organic equipment and

supplies. While the NAVMC 10359 is the preferred document to be used for

temporary loans, locally generated documents may be used. The unit property

records will not be adjusted as a result of temporary loans.

(4) Cost to return temporarily loaned materiel to serviceable

condition, to include SL-3 deficiencies, resulting from the use of the loaned

equipment will typically be borne by the unit loaned the equipment. When

possible, a joint Limited Technical Inspection (LTI) will be done to

determine associated costs.

(5) Issue of equipment from MARCORLOGCOM inventory stores to fill a

temporary Marine Corps unit requirement is not authorized as an internal

temporary loan. Refer to paragraph 5h of chapter 2 for information regarding

the establishment of a special allowance.

(6) Requests for temporary loans between units under separate MARFORs

will be routed to DC I&L (LP) for approval. Authorization is granted for the

establishment of Memorandum of Understandings between MARFORRES and the

MARFORs to support the temporary loan of equipment for MARFORRES annual

training events without DC I&L (LP) approval.

(7) Temporary loans to DoD agencies or contractors are not authorized

at the consumer level of supply. Refer to paragraph 9b of this chapter for

additional information.

b. Enterprise Temporary Loans. Enterprise temporary loans include the

loaning of organic equipment to a third party (i.e., an organization other

than an established Marine Corps unit). In these scenarios, the temporary

loan will be approved by HQMC; and coordinated with and accounted for by

MARCORLOGCOM. Refer to reference (bd) for additional information regarding

enterprise loan procedures.

(1) Temporary Loans to DoD and Government Agencies. Prior to the

execution of the temporary loan to a DoD or Government agency, a binding

agreement (e.g., ISSA, Memorandum of Agreement, message traffic, etc.) will

be agreed to by HQMC and the requesting DoD agency.

(a) All formal requests for temporary loan of USMC enterprise

assets will be sent to DC I&L (LP) through the DoD or Government agency chain

of command. All formal requests will receive a feasibility of support

assessment to determine the operational impacts prior to releasing an

appropriate response.

MCO 4400.150

29 JAN 2014

6-4 Enclosure (1)

(b) MARCORSYSCOM, in coordination with MARCORLOGCOM, is

authorized to establish binding agreements for the temporary loan of USMC

enterprise assets with DoD agencies when the loan is to support R&D and/or

testing of a previously established HQMC requirement.

(2) Temporary Loans to Contractors. Temporary loans to contractors

are not authorized. However, Marine Corps property may be furnished to, or

acquired by, contractors under the provisions of a contract as GFP. Property

provided to a contractor as GFP must be coordinated with MARCORSYSCOM and

MARCORLOGCOM and procedures are discussed in reference (bd).

(3) Temporary Loans to Veteran Organizations. Temporary loans to

Veteran Organizations is discussed in reference (bd).

(4) Temporary Loans to Coalition Forces. Temporary loans to

Coalition Forces is discussed in reference (bd).

(5) Temporary Loans to Non-Government Organizations (NGOs). Refer to

paragraph 26 of this chapter for information regarding the loaning of

equipment to NGOs.

c. Receipt of Temporary Loans from External Agency. Requirements may

dictate the need to receive a temporary loan from an external agency to meet

certain mission requirements (e.g., MARCORSYSCOM R&D, support contingency

operations, training exercises, etc.). Such loans will be executed in

accordance with the supporting unit policies and be coordinated with and

executed by the gaining unit Supply Officer. The Supply Officer will act as

the RO to the supporting unit and will coordinate the internal issue to a

responsible individual/commodity. The receipt of temporary loans from

external agencies, with the exception of SIE assets discussed in paragraph

2e(1) of chapter 2, will not be added to enterprise property records.

10. Heritage Assets and Display Equipment

a. General Information

(1) Definitions

(a) Heritage Assets. In accordance with references (k) and (s),

heritage assets are recognized to be of historical or natural significance;

cultural, educational, or artistic importance; or possess significant

architectural characteristics. As a result, DON heritage assets are expected

to be preserved in museums or registered with the Naval Historical Center or

the National Museum of the Marine Corps (NMMC). Although Heritage Assets

consist of items whose physical properties resemble those of general Property,

Plant and Equipment (PP&E), their values may be indeterminable or may have

little financial meaning (e.g., museum collections, monuments, assets

acquired in the formation of the nation) and allocating the cost of such

assets to certain accounting periods may not be meaningful in accordance

with Volume 4 of reference (k). As a result, units in the possession of

heritage assets will maintain stewardship responsibility with no financial

reporting requirements.

(b) Display Equipment. Per reference (k), display equipment is

defined as old or obsolete military equipment which is not considered to

warrant museum-level heritage significance, but is on display at military

MCO 4400.150

29 JAN 2014

6-5 Enclosure (1)

installations. Display equipment is not considered a heritage asset and will

be accounted for as general equipment.

(2) National Museum of the Marine Corps. In accordance with

reference (bs), the responsibility for recording, preserving, and

disseminating the cumulative operational and institutional experience of the

Marine Corps rests with the NMMC, History Division, and the Archives and

Special Collections Branch of the Library of the Marine Corps. Along with

other missions outlined in reference (bs), the NMMC is tasked to preserve and

exhibit the material history of the U.S. Marine Corps; honor the commitment,

accomplishments, and sacrifices of Marines; and provide the public with a

readily accessible platform for the exploration of Marine Corps history. As

part of this mission, the NMMC provides collection and collection management

services as well as loans of artifacts to others who demonstrate the ability

to provide temporary stewardship responsibility for them. As such, the NMMC

will be the sole organization responsible for the management of USMC heritage

assets and commands will execute stewardship responsibility.

(3) Reporting Categories. Material with a potential to be identified

as a heritage asset or display equipment may fall into one of three reporting

categories: Class VI military equipment, other than class VII military

equipment, or foreign small arms/light weapons (SA/LW).

(a) Class VII Military Equipment. As defined in chapter 1, these

major end items required centralized individual management and require

MARCORLOGCOM and MARCORSYSCOM screening prior to designation as heritage

assets or display equipment. Only Class VII military equipment that are

excess to enterprise requirements or unserviceable beyond repair will be

considered for retention as heritage assets or display equipment.

(b) Other than Class VII Military Equipment. These items include

non-Class VII items which are not centrally managed and do not require

MARCORLOGCOM and MARCORSYSCOM screening prior to designation as heritage

assets or display equipment; and non-DoD funded property (i.e., acquired

through some other means such as contingency operations or private donations).

This typically includes, but is not limited to, individual clothing and

combat equipment (e.g., uniforms, canteens, etc.), unit identification items

(e.g., flags, guidons, etc.), or non-SA/LW foreign military assets (e.g.,

vehicles, communication equipment, etc.). Due to its nature, foreign SA/LW

systems are not included in this category (see paragraph 10a(3)(c) below).

(c) Foreign SA/LWs, as classified in reference (ce). Only

material that is excess to enterprise requirements or unserviceable beyond

repair will be considered for retention as heritage assets or display

equipment.

(4) Maintenance Funding. Installation commanders are responsible for

funding the maintenance of authorized display equipment and heritage assets

on conditional loan to unit-level commands. Accordingly, commands with

physical possession of the assets must identify maintenance funding

requirements in advance to the supporting installation commander to ensure

that resources are available to maintain assets in an acceptable and safe

condition. This requirement must be considered when requesting display

equipment or heritage assets on conditional loan.

MCO 4400.150

29 JAN 2014

6-6 Enclosure (1)

(5) Approval Authority.

(a) Heritage Assets. The final approval authority to accept

material as a heritage asset is the NMMC.

(b) Conditional Loans of Heritage Assets. The acceptance of an

asset into the NMMC collection as a heritage asset is not authorization for a

command to physically retain the asset. The final approval authority to

accept a heritage asset on conditional loan from the NMMC is MCICOM.

(c) Display Equipment. The final approval authority to accept

material as display equipment is MCICOM. Requests will only be considered

if the NMMC has denied to add the requested asset to their heritage asset

collection.

b. Procedural Overview. To ensure that all enterprise equities are met,

all requests for classifying and retaining material as heritage assets or

display equipment will follow the below two-step procedure.

(1) Step 1 – Heritage Asset Determination. Regardless of the

reporting category, units in the possession of a potential heritage asset

will forward the asset information to the NMMC. The NMMC will determine

whether or not the asset will be accepted into their collection as a heritage

asset. Refer to paragraph 10c of this chapter for additional guidance.

(2) Step 2 – Request for Physical Retention. Units which desire to

maintain physical possession of an approved heritage asset must request

approval from their chain of command and appropriate Marine Corps equities

(i.e., MARCORLOGCOM, MARCORSYSCOM, and MCICOM). The request will be

submitted as a request for conditional loan retention (for assets accepted as

a heritage asset) or a request for display equipment retention (for assets

denied acceptance as a heritage asset). Refer to paragraphs 10d and 10e of

this chapter for additional guidance.

c. Heritage Asset Determination. Units must submit a request for

heritage asset determination to the NMMC using the format provided in

Appendix T. This request is not authorization for the unit to physically

retain the asset; rather it is to report the item to the NMMC as a potential

heritage asset due to its possible historical significance.

(1) Requests will be forwarded to: National Museum of the Marine

Corps, (Attention: Registrar), 2014 Anderson Avenue, Quantico, VA 22134-5002,

DSN 278-2608.

(2) The NMMC will review the request to determine the reporting

category of the item and whether to accept the asset into their collection as

a heritage asset. When required, the NMMC will consult with DC I&L (LP) to

determine the appropriate reporting category. The NMMC will respond to the

request by approving or denying the asset’s acceptance as a heritage asset,

identifying the appropriate reporting category, and by providing the

requesting unit with appropriate follow-on action.

(a) The NMMC will coordinate with MARCORSYSCOM and MARCORLOGCOM

prior to responding to any request for assets in the reporting categories

identified in paragraphs 10a(3)(a) and 10a(3)(c). If the item is accepted

into the NMMC collection as a heritage asset, the asset will be added to the

MCO 4400.150

29 JAN 2014

6-7 Enclosure (1)

NMMC accountable records and the requesting unit will be directed to conduct

the actions identified in paragraph 10d. If denied acceptance as a heritage

asset, the requesting unit will be directed to conduct the actions identified

in paragraph 10e.

(b) The NMMC will directly respond to the requesting agency for

any request for assets in the reporting category identified in paragraph

10a(3)(b). If accepted into the NMMC collection as a heritage asset, these

assets will be added to the NMMC accountability records and the requesting

unit will be directed to conduct the actions identified in paragraph 10d. If

denied acceptance as a heritage assets, requesting units will be directed to

conduct the actions identified in paragraph 10e.

d. Requesting Conditional Loan Retention. The requesting unit will

perform the following actions within 90 days of notification that an item has

been accepted into the NMMC collection as a heritage asset.

(1) If the unit does not desire to maintain physical possession of

the heritage asset, the heritage asset will be delivered to the NMMC.

(2) If the unit desires to maintain physical possession of the

heritage asset, a request for conditional loan will be submitted using the

letter format provided in Appendix U. All requests will be endorsed by the

unit’s chain of command and supporting (i.e., home station) installation

commander. In operational environments, endorsements will include the

component and combatant commander. Endorsed requests will then be routed to

the appropriate Marine Corps equities based on the asset reporting category.

The following procedures apply:

(a) Requests for conditional loan retention of assets in the

reporting categories identified in paragraphs 10a(3)(a) and 10a(3)(c) will be

submitted to MARCORLOGCOM via the Recoverable Item Report (WIR/WER).

1. MARCORLOGCOM will validate the request against current

inventory levels and requirements, provide a favorable or unfavorable

endorsement, and forward to MARCORSYSCOM.

2. MARCORSYSCOM will validate the request against life cycle

requirements, provide a favorable or unfavorable endorsement, and forward to

MCICOM.

3. MCICOM will review the request and endorsements and make a

final determination to approve or deny the request. If denied for retention

on conditional loan, the requesting unit will be directed to deliver the

asset to the NMMC. If approved for retention on conditional loan, the

requesting unit will be directed to maintain physical possession of the asset

and to establish stewardship responsibility using the general equipment

procedures discussed in paragraph 19 of Chapter 2. The final determination

will be coordinated with the NMMC in order to develop the conditional loan

agreement for inclusion in the final disposition instructions, when

applicable.

4. Final disposition instructions will be provided to the

requesting unit in the reverse order of the above endorsements with the final

response by MARCORLOGCOM via the original WIR/WER. The WIR/WER response will

include the approving/denial endorsements, appropriate disposition

MCO 4400.150

29 JAN 2014

6-8 Enclosure (1)

instructions as identified in paragraph 10d(2)(a)3, and any additional

required instructions (e.g., demilitarization instructions, asset

identification number, transfer procedures, MCICOM maintenance requirements,

etc.).

(b) Requests for conditional loan retention of assets in the

reporting category identified in paragraphs 10a(3)(b) will be submitted to

MCICOM.

1. MCICOM will review the request and applicable endorsements

and make a final determination to approve or deny the request. If denied for

retention on conditional loan, the requesting unit will be directed to

deliver the asset to the NMMC. If approved for retention on conditional loan,

the requesting unit will be directed to maintain physical possession of the

asset and to establish stewardship responsibility using the general equipment

procedures discussed in paragraph 19 of Chapter 2. The final determination

will be coordinated with the NMMC in order to develop the conditional loan

agreement for inclusion in the final disposition instructions, when

applicable.

2. Final disposition instructions will be provided to the

requesting unit by MCICOM. Disposition instructions will include the

approving/denial endorsement, appropriate disposition instructions as

identified in paragraph 10d(2)(b)1, and any additional required instructions

(e.g., demilitarization instructions, asset identification number, transfer

procedures, MCICOM maintenance requirements, etc.).

e. Requesting Display Equipment Retention. The following actions will be

conducted by the requesting unit when an item has been denied acceptance

into the NMMC collection as a heritage asset.

(1) If the unit does not desire to maintain physical possession of

the asset, they will dispose of the asset in accordance with references (f),

(h), and (i).