Material Management

Material Management Program Description 
Material Management is responsible to receive and store all materials and maintains control of all parts until they are issued to the line for overhaul. The Material Manager also monitors the production usage, reorders the parts as stock is depleted, and maintains our computerized inventory system.  The Material Manager initiates all reporting which includes the G009 and CAVII government web-based reporting systems.  The Material Manager also monitors the changing percentages of repair requirements. 

Mission Support is required to control all government materials per FAR part 45 and is audited bi-annually by our local DCMA Property Administrator. Mission Support has maintained a continuous “satisfactory” rating since the onset of these audits. Mission Support also has its own Property Control Procedure in place that has been reviewed and accepted by the government Property Administrator.  

The company ’s approach to material management activities for its overhaul programs is divided into two phases; (1) transition and material planning, and, (2) on-going production support. 

Government Furnished Material (GFM) 
Mission Support has extensive experience with requisitioning, storing, and managing GFM.  The key to successful GFM production support is planning to maintain the stock levels necessary to perform any type of overhaul we may encounter.  

Mission Supports KC-135 contract provides a good example of how we implement Appendix B of Air Force overhaul solicitations.  The KC-135 contract included a Purchase Request Support List (PRSL), a list of all the parts we were authorized to order and the anticipated replacement rate for each part.  Based on the Best Estimated Quantity (BEQ) production rate for the first year, we utilized the stated replacement rate to order and stock a 60-day inventory of replacement parts.  A basic “in/out” check list is used to track and replenish stock as it is depleted. If our replacement rate increases beyond the limits of the PRSL, a letter is written to the CO asking for permission to requisition more GFM than previously authorized.  At the completion of the first 3-year KC-135 contract, we revised the replacement factors based on the repair experience at our facility. 

In a separate contract, MSI was not provided with the PRSL or replacement rates.  At the onset of this contract, the Air Force permitted us to requisition each GFM item at a 100% replacement to set the 60-day stock levels.  At the end of the basic contract period, we established the actual replacement percentages at our facility and adjusted our stock levels accordingly. 

The material planning begins by creating a spread sheet of all the replacement parts required for each CLIN, identifying them by National Stock Number (NSN), Part Number, Description, Usage Rate, Allowable Stock Level, Quantity On Hand and Quantity Needed.  We determine the number of parts for a monthly GFM order for each CLIN by taking the replacement percentage and multiplying it by the number of end items that will be produced.  We then generate a requisition through the DAASC Automated Message Exchange System (DAMES).  When the required GFM parts arrive in a timely fashion and the production orders are stable, this system works well. 

However, the quarterly orders for the KC-135 contract are rarely consistent, ranging anywhere from 1 to 100 end items.  There are frequent back orders and parts shortages of GFM, and occasionally, we receive GFM with quality deficiencies.  We deal with widely varying production requirements in two ways:  (1) by working closely with the Production Management Specialist (PMS) to obtain advance notice of quantities on upcoming orders; and, (2) utilize long term production averages to ensure that long-lead parts are manufactured in time for overhaul.  Several parts we currently replace are long-lead items that require us to place orders 9 to 12 months prior to overhaul.  Since we are only permitted to have a 60-day supply on-hand, when one of the requisitions for these parts is “back-ordered” it virtually guarantees a work stoppage. We have overcome this scenario by building our own private vendor database to manufacture these parts. This ensures that production will never stop due to lack of management.  

The Material Manager and the Project Manager meet regularly to discuss upcoming quarterly orders and projected future orders.  We use the Web Customer Account Tracking System (WebCATS) to obtain current DLA stock levels, to track DLA-managed items currently on order, and to determine the delivery dates to the government.  The WebCATS system plays a key role in our planning.  It reflects any requisitions placed against the stock, lists notes from vendors with explanations of delay (extending delivery dates, drawing discrepancies, etc.) and continually updates us the shipping status.  If required, this data also provides us the time necessary to acquire these long-lead parts as CAP.  Currently, our only method for obtaining this type of data for Air Force managed items is to contact the Air Force Item Manager. 

Once GFM stock is received, it is stored in a secured government storage area that is locked and only entered by authorized personnel. It is equipped with fire/smoke detection equipment and inspected annually.  All GFM is provided adequate housekeeping and protection from corrosion, humidity, temperature etc., in accordance with the requirements of FAR Part 45. 

Contractor Furnished Material (CFM)
Recent changes at the Defense Logistics Agency (DLA) permit contractor’s to obtain replacement parts directly from government stores at our own cost. These parts will be stocked IAW with the procedures typically specified in Appendix B of Air Force overhaul contracts, and ordered specifically for each delivery order through DLA.  

We will attempt to fill CFM orders from DLA stores first and if not available will be purchased through our private vendor base which is governed through our ISO system. This vendor database was built through researching the Federal Logistics Information System to find vendors who have previously manufactured the part for the government.   

After this avenue have been exhausted and we have still not located the needed parts, we will verify the adequacy of the technical data and look for a vendor who can manufacture the parts.  We will provide them will all the verified drawings and military standards necessary for manufacture.  These vendors must be qualified per our ISO 9001:2000 system prior to placing the purchase order.  We will pay any additional costs to accelerate the delivery of these parts to meet the intended overhaul date.  These costs will include but are not limed to priority shipping charges and expedited material prices.  In many cases, these vendors will be required to submit a first article for test and evaluation in a laboratory certified by the American Association for Laboratory Accreditation. 

In summary, the order of task at MSI is as follows:

1. Make list of all parts needed.

2. Obtain the number of end items schedule for production.

3. Determine the replacement percentage of each part.

4. Research the WebCATS system for availability of all parts listed.

5. Generate a stock level requisition for the available GFM items.

6. Generate stock level requisitions for all available CFM through DLA.

7. Identify shortages and begin qualified vendor search.

8. Verify adequacy of all tech data.

9. Place order with a qualified vendor ensuring delivery time to meet overhaul schedules. 

Contractor Furnished Equipment (CFE) 
Unless supplied by the Air Force all tooling, test equipment, assembly fixtures, jigs, and shop aids will be designed, constructed and managed by MSI.  Concept drawings for shop aids, assembly jigs, and a bonding fixture will be provided for each solicitation, if required.  MSI has extensive experience with the design and management of CFE for overhaul, including: 

1) Tooling and Equipment manufactured and calibrated from customer supplied drawings, such as the final assembly fixture for pressurized engine oil tanks fabricated for this overhaul contract from the original Pratt & Whitney drawings 

2) Reverse Engineering of Tooling Calibration Data – MSI combined available, but incomplete tooling drawings, with part drawings, and data generated by digitized a master model with a Laser Tracker into a set of nominal dimensions for calibrating B52 By-pass Duct Final Assembly Jigs. 

3) Tooling Design – MSI designed a final assembly jig for the F-16 Main Landing Gear doors from a the original CATIA file for the fuselage and landing gear door Master Models supplied by Lockheed Martin. 

4) Tooling purchased from Vendors – An example of vendor supplied tooling would be the hydraulic component test stand MSI purchased from AAI/ACL Technologies.  This test equipment consists of a hydraulic console adaptable to a variety of components and an electronic console with an extensive range of associated Test Programs. 

All CFE is the responsibility of the MSI Material Manager who controls this property IAW with our approved property control procedures.  We currently have a Property Control Manual, a copy of which can be found in the Attachments section of this document.  The Salt Lake DCMA office audits MSI’s property control system yearly and we have continually received satisfactory ratings on all functions.  Our overall DCMA risk rating or our property administration system is “low.”  We are also required to provide a DD Form 1662 annually that reports the dollar value of all government owned materials and property.

Production Support - Management of Parts, Materials and Supplies
All parts for MSI repair programs are stored in a secured area with access for authorized personnel only. MSI will report and record all DD form 1348's when receiving in materials from DOD (AFMC and DLA).  Occasionally, we will conduct a thorough receiving inspection of known “problem” GFM parts, and any shipping discrepancies will be noted upon arrival. 

© Mission Support Incorporated 2006