RECEIVING DISCREPANCY POLICIES AND PROCEDURES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-05054A000100100047-6
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 14
• Document Creation Date: December 12, 2016
• Document Release Date: July 14, 2000
• Sequence Number: 47
• Publication Date: May 1, 1975
• Content Type: REGULATION

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