Forty-sixth report to Congress (January 1 through December 31, 1975) of the Department of Defense ... on the Defense cat...

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Title:
Forty-sixth report to Congress (January 1 through December 31, 1975) of the Department of Defense ... on the Defense cataloging and standardization act of 1952 report of the Subcommittee on Investigations of the Committee on Armed Services, United States House of Representatives, Ninety-fourth Congress, second session, May 28, 1976
Physical Description:
ii, 1, 18 p. : ill. ; 24 cm.
Language:
English
Creator:
United States -- Dept. of Defense
United States -- Congress. -- House. -- Committee on Armed Services. -- Subcommittee on Investigations
Publisher:
U.S. Govt. Print. Off.
Place of Publication:
Washington
Publication Date:

Subjects

Subjects / Keywords:
Military supplies -- Catalogs   ( lcsh )
Information storage and retrieval systems -- Materials   ( lcsh )
Armed Forces -- Procurement -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

General Note:
At head of title: Committee print.

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 025781683
oclc - 02211061
System ID:
AA00022547:00001

Full Text

[COMMITTEE PRINT]


FORTY-SIXTH REPORT TO CONGRESS
(January 1 Through December 31,1975)
OF TIlE


DEPARTMENT


OF DEFENSE


In Accordance With Section 2455, Title 10. U.S.C.
(Formerly Section 8 of Public Law 426, 82d Congress)
ON TITE


DEFENSE CATAL(
STANDARDIZATION


GOINGG AND
ACT OF 1952


REPORT
OF THE
SUBCOMMITTEE ON INVESTIGATIONS
OF TIIE


COMMITTEE ON ARMED


UNITED STATES HOUSE


SERVICES


OF REPRESENTATIVES


NINETY-FOURTH CONGRESS
SECOND SESSION


MAY 28, 1976


fill,*


U.S. GOVERNMENT PRINTING OFFICE


WASHINGTON : 1976


N


69-947 0










COMMITTEE ON ARMED SERVICES

NINETY-FOURTH CONGRESS, SECOND SESSION
MELVIN PRICE, Illinois, Chairman


F. EDWARD HEBERT, Louisiana
CHARLES E. BENNETT, Florida
SAMUEL S. STRATTON, New York
RICHARD H. ICHORD, Missouri
LUCIEN N. NEDZI, Michigan
WILLIAM J. RANDALL, Missouri
CHARLES H. WILSON, California
ROBERT L. LEGGETT, California
FLOYD V. HICKS, Washington
RICHARD C. WHITE, Texas
BILL NICHOLS, Alabama
JACK BRINKLEY, Georgia
ROBERT H. (BOB) MOLLOHAN,
West Virginia
DAN DANIEL, Virginia
G. V. (SONNY) MONTGOMERY, Mississippi
HAROLD RUNNELS, New Mexico
LES ASPIN, Wisconsin
RONALD V. DELLUMS, California
MENDEL J. DAVIS, South Carolina
PATRICIA SCHROEDER, Colorado
ABRAHAM KAZEN, JR., Texas
ANTONIO B. WON PAT, Guam
BOB CARR, Michigan
JIM LLOYD, California
LARRY McDONALD, Georgia
THOMAS J. DOWNEY, New York


BOB WILSON, California
WILLIAM L. DICKINSON, Alabama
G. WILLIAM WHITEHURST, Virginia
FLOYD D. SPENCE, South Carolina
DAVID C. TREEN, Louisiana
GEORGE M. O'BRIEN, Illinois
ROBIN L. BEARD, Tennessee
DONALD J. MITCHELL, New York
MARJORIE S. HOLT, Maryland
ROBERT W. DANIEL, JR., Virginia
ELWOOD H. (BUD) HILLIS, Indiana
ANDREW J. HINSHAW, California
RICHARD T. SCHULZE, Pennsylvania


FRANK M. SLATINSHEK, Chief Counsel



SUBCOMMITTEE ON INVESTIGATIONS
F. EDWARD HEBERT, Louisiana, Chairman


WILLIAM J. RANDALL, Missouri
ROBERT L. LEGGETT, California
BILL NICHOLS, Alabama
RbBERT H. (BOB) MOLLOHAN,
West Virginia
DAN.DANIEL, Virginia
BOB CARR, Michgn
SAMUEL S. STRATO ON, New York
LUCIEN N. NEDZI, Michigan


ROBIN L. BEARD, Tennessee
DONALD J. MITCHELL, New York
WILLIAM L. DICKINSON, Alabama
ROBERT W. DANIEL, JR., Virginia


JOHN F. LALLY, Counsel


(II)





















ASSISTANT SECRETARY OF DEFENSE,
INSTALLATIONS AND LOGISTICS,
Washington, D.C., April 12, 1976.
Hon. MELVIN PRICE,
Chairman, Committee on. Armed Services,
House of Representatives, Washington, D.C.
DEAR MR. CHAIRMAN: As prescribed by Section 2455, Title 10, United States
Code, there is transmitted herewith the Forty-sixth Annual Repyort on the De-
partment of Defense Cataloging and Standardization Programs. This report
covers the period from January through December 1975. This is the first report
covering a full year since Public Law 93-608 changed the report from semi-
annual to annual.
Reports on these two programs have been combined in accordance with the
provisions of Section 2455. Inasmuch as the Congress in its legislation directed
that the Secretary of Defense report any other data which he considers will best
inform Congress on the status of the Cataloging and Standardization Programs,
there is included information concerning such Department of Defense Programs
as Materiel Utilization, Provisioning Screening, North Atlantic Treaty Orga-
nization (NATO) Codification, Item Management Responsibilities and the Parts
Control System. These programs are directly associated with the development
and/or utilization of cataloging or standardization data and have been initiated
to provide additional means of insuring more effective utilization of materiel
resources.
Sincerely,
JOHN J. BENNErT,
Principal Deputy Assistant Secretary of Defense
Enclosure.

















Digitized by the Internet Archive
in 2013












http://archive.org/details/fortysixth00unit




46TH REPORT


DEPARTMENT OF DEFENSE
CATALOGING AND STANDARDIZATION PROGRAMS
I JANUARY 31 DECEMBER 1975


FEDERAL CATALOG PROGRAM

IMPLEMENTATION OF THE DEFENSE INTEGRATED DATA SYSTEM

On 1 April 1975 the Defense Integrated Data System (DIDS) was implemented.
This new Automated Data Processing (ADP) system supplements and comple-
vents the Federal Catalog System by continuing to operate the original
concept of item identification and by expanding the data base and system
to provide or to improve support for item entry control, procurement,
provisioning, item management and other logistics management functions.
The DIDS makes data readily available through improved processing time
frames and facilitating management decisions.

During a period of 3 to 6 months prior to 1 April 1975, certain input and
changes to the pre-DIDS files were suspended in preparation for DIDS.
The conversion process to DIDS was a monumental task. The suspension of
transactions and the conversion to DIDS caused a very large backlog which
took nearly eight months to eliminate. During this time, transactions
were given priorities and of these, new item identifications and pro-
visioning and other types of screening were given the highest priority.
Because of the backlog, priorities and critical computer machine time,
accumulation of some statistics was not accomplished. This, therefore,
precludes providing all of the data provided in previous reports (e.g.,
additions and deletions).

ITEMS MANAGED BY THE UNITED STATES GOVERNMENT

At the end of the reporting rqvhe U. S. Government portion of the
Federal Catalog System files contained 4,104,258 items, a net increase
of 67,494 during the reporting period. This total includes National Stock
Numbers (NSNs) assigned to items managed by the civil agencies, as well
as to items managed by the Department of Defense (DoD).

SEMIACTIVE ITEMS

This report contains a category of items called "semi-active". A semi-
active item is defined as a potentially inactive National Stock
Numbered item of supply which must be retained in the system as an
item of supply because stocks of the items are in use or on hand below
the wholesale level. The item is not currently stocked at the whole-
sale level, nor is future wholesale stockage authorized. Although the


(1)










semiactive items are included in the active totals, it is now possible
to more clearly identify active items at the wholesale level. Also,
the efficacy of efforts to reduce the total number of active items within
the system will become more readily apparent.

FEDERAL CATALOG SYSTEM TOTALS

In addition to the 4,104,258 items managed by the U. S. Government,
482,957 items were recorded in the central Federal Catalog System files
as being managed solely by NATO countries or agencies, or by other
foreign countries. Thus, 4,587,215 NSNs represented active items of
supply as of 31 December 1975 and include 59,822 semiactive items. The
central files also contained 1,316,915 item identifications in an
inactive status (without recorded managers). Item identification requests
from participating activities are being screened against both active
and inactive identifications in the total file of 5,904,130 items. The
matching of incoming new submittals (requests for NSN assignment) against
inactive item identification make possible the reactivation of some
inactive numbers, thus avoiding assignment of new NSNs.

ITEMS MANAGED BY THE DEPARTMENT OF DEFENSE

The ending inventory for this reporting period indicates 3,772,533 items,
including 59,591 semiactive items, managed by DoD, a net increase of
46,197. 114,106 NSNs were assigned to new item identification.
Excluded from the DoD managed items for this and subsequent reports are
Coast Guard managed items. These are now included under items managed
by the civil agencies.

ANALYSIS OF DEPARTMENT OF DEFENSE ITEMS

As of the end of the reporting period, and within the total of 3,772,533
DoD item identifications, there were 3,069,772 which reflected items
centrally managed, stocked, stored and issued. Of this latter quantity,
133,337 were designated as having no requirement for future procurement
and should become inactive when existing wholesale stocks are exhausted.

CHRONOLOGY OF ITEMS USED BY THE MILITARY SERVICES

The following table reflects the total quantities of items recorded in
the central files of the Federal Catalog System as being used by the
Army, Navy, Air Force, and Marine Corps on the 31st day of December for
the years 1972 through 1975. The figures include items for which the
Military Services operate as their own inventory managers and also those
items for which the Military Services operate only as retail managers.
Excluded from the U. S. Army figures are U. S. Army Tank Automotive
Command (USATACOM) items. These items have been included under "Other
Items Subject to Integrated Management".










Military
Service


Army

Navy


Air Force


Marine Corps


31 Dec
1972

924,397


1,662,740

1,687,607

267,660


31 Dec
1973

871,969

1,659,365

1,703,749


258,616


31 Dec
1974

883,911


1,750,964

1,751,893

289,128


31 Dec
1975

902,405

1,786,325

1,791,519


308,800


COMMONALITY OF ITEMS AMONG THE MILITARY SERVICES


The total shown for each Military Service includes many stock numbers
which are used also by one or more of the other three Services and which
are, therefore, included in their totals as well. The degree to which
this commonality exists among the Services is revealed by the following
table:


Military
Service


Army

Navy


Air Force


Marine Corps


TOTAL


902,405


1,786,325

1,791,519

308,800


Used Also by One
or More of the
Other Services

472,245


583,062

614,704

225,763


Percentage
Commonality

52.3


32.6

34.3

73.1


ITEMS MANAGED BY THE DEFENSE SUPPLY AGENCY


Of the 3,772,533 items recorded in the central files as being managed
by DoD, on 31 December 1975, 2,665,892 items, or 70.7 percent, were in
the 331 commodity classes assigned to the general cognizance of the DSA
for integrated materiel management. Of these, 1,881,310 items, or
70.6 percent, were designated for inventory management by DSA, including
70,135 items which were designated by DSA as authorized for local procure-
ment. The remaining 29.4 percent are retained for management by the
Military Services. During the period I FSC (7540) was transferred to
GSA for integrated management.

OTHER ITEMS SUBJECT TO INTEGRATED MANAGEMENT

On 31 December 1975, there were 2,228 items in the 3 classes of tires
and tubes assigned to the U. S. Army Tank Automotive Command (USATACOM);
of these, USATACOM was recorded as integrated manager on 2,221 items.
USATACOM's mission includes integrated management of items peculiar to










combat and tactical vehicles of Army design in any FSC class. USATACOM
is presently recorded as the integrated manager for 45,432 items in
other classes, making a total in all classes of 47,653 items.

GSA has been assigned integrated materiel management for 69 FSC classes.
At the end of the reporting period, there were 104,320 DoD items in
these classes and GSA was recorded as the integrated manager for 70,126
of these items.

ITEMS MANAGED BY THE CIVIL AGENCIES

GSA prepares and submits catalog data on behalf of all civil agencies
except the Federal Aviation Administration (FAA) and the Coast Guard,
which prepare and submit their own data. At the end of the reporting
period, the central files included 331,725 items recorded as being managed
by civil agencies only, and an additional 238,426 items managed in
common with DoD or a total of 570,151 items. During the reporting period,
50,516 items were reported as entering the civil agency supply system
and 12,337 as being deleted, resulting in a-net increase of 38,179 items.

PARTICIPANTS IN THE FEDERAL CATALOG SYSTEM

At the end of the period, the central cataloging files and processing
operations were serving the needs of 57 wholesale and retail materiel
managers in DoD and 81 in the civil agencies.

In addition, cataloging services were furnished to 11 NATO countries,
6 other foreign countries and 2 NATO agencies.

MANUFACTURERS' DATA

Latest records show 88,141 currently valid manufacturers' codes in the
Cataloging Handbook, Federal Supply Code for Manufacturers (FSCM). The
FSCM is a coding system of five-digit numbers assigned to establishments
which are manufacturers of items of supply procured by agencies of the
Federal Government. Represented in the publication are 51,769 U. S.
and Canadian manufacturers. The remaining 36,372 identify manufacturers
in other NATO countries and other foreign countries-. Of the total
number of assigned manufacturers' codes, 35,933* are referenced in the
central files to 9,201,635 manufacturers' part or reference numbers.
These reference numbers are cross-referenced to 5,827,523 National Stock
Numbers (NSNs). The remaining 76,607* NSNs in the central screening
files represent items not requiring reference numbers for identification
purposes. Of the 88,141 valid manufacturers' codes, 19,291* have been
assigned 2,855* association codes, indicating that these manufacturers'


* Due to implementation of DIDS causing certain statistics to be
suspended this data is not current (as of 31 December 1975).










codes relate to manufacturers who are members of a larger corporate,
complex, each association code representing one such complex. in -
loging operations, these association codes help reveal duplictes which
otherwise would give the appearance of being separate and disti e iter

CONSOLIDATED MANUFACTURERS/NONIANUFACTURI
The "Handbook for Non-Government Organization Codes for Military t nd
Contract Administration Procedures (MILSCAP)" contains data fr-_ -on-
solidated Federal Supply Code for Manufacturers/Federal Supply Co "or
Nonmanufacturers (FSCM/FSCNM) File. This basic publication colltJ s
126,828 coded facilities and is used in the mechanical interofvngc &
data required by MILSCAP and the agencies/activities Autovated Data Lroc
essing Systems.

MANUFACTURERSt PART AND DRAWING NUBTERINSS

The Cataloging Handbook, H-7, now contains 492 suIr tries of nurbering
systems. Some of these pertain to the entire corporate complex and other,
pertain only to one facility. There are 2,951,29T, reference nurnr
2,360,129* National Stock Numbers recorded against the FSCMs assignd to
the manufacturers utilizing these numbering systems.

MASTER CROSS REFERENCE LIST

The Master Cross Reference (RL) Part One (Reference Number to NIN) and
Part Two (NSN to Reference Number) is published on 48:1 microfiche by
a Government Printing Office contractor. Magnetic tapes of the 1975 RL
are also furnished to the Department of Commerce for sale to the general
public (RL Part One only).

IDENTIFICATION LISTS

DoD Identification Lists (ILs) produced by DLSC are published on micro-
fiche which have been reduced by a ratio of 48:1. The ILs published by
DLSC on microfiche during 1975 were manually compiled by the Defense
Supply Centers.

The consolidated identification list provides descriptive, reference,
and illustrative data to identify or select items of supply. The public
tion contains all active items which have been recorded with at least
one military user and are included regardless of users' interest or
the items are managed.

Currently, similar type documents are published by each of the Mi Bi -rY
Services.



* Due to implementation of DIDS causing certain statistics to be
suspended this data is not current (as of 31 December 1975).










All FSC classes to be published under the Defense Integrated Data
System (DIDS) Program will be compiled from mechanized characteristic
data by DLSC over a two-year period, beginning January 1976. A total
of 28,070,702 microfiche have been distributed during 1975.

MANAGEMENT DATA LISTS

The first Military Service tailored management data lists (ML) publica-
tion from the DLSC files were distributed in October 1975. Initial
distribution was as follows:

Fiche
Service in sets Sets

Army 64 7393

Air Force 119 6282

Marine Corps 33 1325

Basic publications are produced quarterly with monthly intervening
Change Bulletins for the Army and Marine Corps. The first DLSC produced
Navy ML will be distributed in April 1976.

PROVISIONING SCREENING

During the reporting period, 2,473,277 manufacturers' reference numbers
were screened against the master files in support of provisioning
actions; 876,170 or 35.4 percent were matched to existing NSNs. There
were 227,020 NSNs screened for the same purpose. Additionally, there
were 607,571 manufacturers' reference numbers screened against the
master file, of which 156,426 or 25.8 percent matched existing NSNs for
purposes other than provisioning, i.e., to obtain management data
recorded in the master file, such as item user information, validation
of NSNs, standardization decisions, related manufacturerst codes and
reference numbers and to provide support to procurement. Also, there
were 1,494,906 NSNs screened for this purpose. In addition to the above,
provisioning screening also provides the capability (by matching
reference numbers to NSNs) for the screening of declared excess asset
files to ascertain the availability of assets for materiel utilization
purposes. During this reporting period, assets were found to exist for
1.8 percent of the NSNs matched.

PARTICIPATION IN THE NATO CODIFICATION SYSTEM

During the reporting period, 364,917 numbers (reference number or NSN)
were processed against the central files; 237,815 ownership registra-
tions were processed and the pertinent EAM file data on cards or ADP
tape were furnished; and 19,026 original item identifications were
prepared under the applicable international agreements.










As of 31 December 1975, a gross total of 3,147,654 manager.ent registra-
tions were recorded to 11 NATO countries, 11 other foreign countr ei0 a
2 NATO agencies. The quantity of management registrations by country or
agency was as follows:

NATO COUNTRIES


Belgium

Canada

Denmark

France


Netherlands


Greece


239,267

293,072


3,958


315,374

155,460

113,519


Germany

Italy

Norway


United Kingdom

Turkey


OTHER FOREIGN COUNTRIES


Australia


Japan


*Brazil

Israel


443,575,

29,038


11,701


*South Korea


South Africa

Iran

*Philippines

*Spain

New Zealand

*Saudi Arabia


NATO AGENCIES


NATO Supply Center


Logistics Working Group


.107,075


The net total of NSNs with registered foreign managers was 1,487,317.
Of this total, 482,957 were managed solely by foreign governments and the
remainder, 1,005,360, were managed by one or more U. S. activities, as
well as by one or more foreign countries.



* DLSC does not furnish catalog services to these foreign countries.
Management registration in the DLSC files was recorded by the U. S.
Military Services under the Foreign Military Sales Program.


682, 2P8

66,691

275,273

197,775

5,530


66,036


7,327


259


59,135


75,051










ITEM MANAGEMENT RESPONSIBILITIES FOR DoD USED ITEMS

The following table displays the wholesale and retail management respon-
sibilities of the 3.8 million items used by DoD. The Federal Catalog
Program is the vehicle that collects, maintains and disseminates the
ma-gement data elements necessary to assist in making management assign-
mnts and to achieve the overall DoD objective of "one-item/6ne-manager"
for all DoD used items.

The DoD wholesale manager can take three forms:

1. The Commodity Integrated Materiel Manager (CIMM); i.e., DSA,
GSA, TACOM, etc., which is defined as an activity designated to exercise
Integrated Materiel Management for a FSC Group/Class, commodity or item
on a DoD or Federal Government-wide basis. The CIMM functions normally
include computation of requirements, funding, budgeting, storing, issuing,
cataloging, standardization, procurement and disposal.

2. The Weapons Integrated Materiel Manager (WIMM), which is the
Military Service Inventory Control Point that performs the DoD or Federal
Gcoverment-wide Integrated Materiel Manager functions as outlined in
I. above for assigned items.

3. The Military Inventory Manager (MIM), which is an activity
assigned the prime responsibility for the inventory management of a repa-
rable, investment or end item of supply within a particular Military
Service/Agency.

The retail manager takes two forms:

1. A Service Item Control Center (SICC) which performs the residual
materiel management or retail management functions for a weapons system
oriented consumable item of supply when the wholesale materiel management
functions for the item have been assumed by a Weapons Integrated Materiel
Manager (WIMM), or the principal of an interservice supply support agree-
ment for a reparable, investment or end item where wholesale inventory
management responsibility has been assumed by another Service in the role
of an Agency.

2. The Military Retail Manager (MRM) which is an activity within a
Service/Agency having retail responsibility for an item of supply where
the wholesale integrated materiel management functions are performed by
a Commodity Integrated Materiel Manager (CIMM).

The figures in columns one and two are the total number of items (3,311,382)
currently under the single integrated management concept regardless of the
number of activities using the items.

The quantity of items shown in column three falls into three categories:

I. Consumable Items,
2. Reparable Items,


3. End Equipments.










The latter categories are scheduled to be transferred to the wholesale
manager concept. The totals shown in the vertical columns are net DoD
figures for CIMM, WIMM and Total Managed Items. The totals for MIM,
SICC or Principal, and MRM are gross registration because a single item
may be in the inventory of more than one Service. The Total DoD Managed
Items column reflects net item registrations and therefore does not add
to the Total items managed in each case.

TABLE OF ITEM MANAGEMENT RESPONSIBILITIES
FOR DoD ITEMS


Activity


Army

Navy


CIMM


47,653


WIMM

186,547


MIM

69,099


522,359 171,277


SICC or
Principal

15,002


MRM

631,838


69,498 1,023,293


Total DoD
Managed
Items

902,405

1,786,325


Air Force


Marine Corps


DSA


- 570,734 234,559


31,122


9,997


63,527

23,040


923,911 1,791,519


244,639


1,881,976


308,800


- 1,881,976


Other DoD


*GSA


2,000,591


1,310,791


505,537 171,283 2,836,547


3,772,533


* These items are managed by GSA but used by DoD.

PARAMETRIC CHARACTERISTIC SCREENING


In April 1975 parametric screening for NSN assignment was implemented for
fixed capacitors. Approximately 112,000 items with characteristic data
described under Federal Item Identification Guide (FIIG) A010A, CAPACITORS,
FIXED are now being screened parametrically against proposed new item
identifications. The parametric screening method converts the precise
characteristic replies in an item identification into a predetermined range
of values established as equivalent to the input value and compares the
proposed item to the existing file items. Through this method equivalent
file items can be offered to the requester in lieu of the proposed new item
of supply. Development of parametric screening for additional FIIGs is
in progress.

DEFENSE TECHNICAL REVIEW ACTIVITIES

The Defense Technical Review Activities were disbanded in March 1975.
This action was taken simultaneously with the implementation of the Defense
Integrated Data System as recommended in Item Logistics Management Data


70,962


TOTAL


20,605

0 -


216


12,866


36,687

70,962






10


Study Recommendation Number Two and was authorized by the Office of the
Assistant Secretary of Defense (Installations and Logistics) in June 1974.
The decision to eliminate technical review of Military Service managed
items was based upon the relatively low number of duplicates/replacements
(5*. or less) offered and the iincreased--sre-enl'g-pability-tob-e avail--
able in the Defense Integrated Data System. The functions formerly per-
formed by the Defense Technical Review Activities are now the responsibil-
ity of each catalog data submitter.

These responsibilities are now reflected in the Federal Catalog System
Policy Manual. Therefore, this is the final report for the Defense
Technical Review Activities. During the period of I January 1975 through
31 March 1975, there were 8,864 requests for new National Stock Numbers
(NSNs) for Military Service managed items processed through the Defense
Technical Review Activities. As a result of the reviews performed by
those activities, 246 (3%) of these requests were identified to an existing
stock number or a potential replacement item. An additional 164 (2%) of
the requests were corrected by the Defense Technical Review Activities,
with 467 (5%) requests returned to submitting activities for corrective
action.


TRENDS IN THE FEDERAL CATALOG SYSTEM

Attached are two charts which depict Federal Catalog System Totals since
December 1969 and the Status of Integrated Material Management in DoD
for the same time period. These are provided to better visualize the
changes in the Federal Catalog System over the past six years.







MILLIONS STATUS OF INTEGRATED MATERIEL MANAGEMENT IN THE DOD
5


4


3


2


1


0


TOTAL
- DOD

* TOTAL
I NTE-
GATED

TOTAL
CCIMM




GSA
TACOM


INT.
MGT.







FEDERAL CATALOGING SYSTEM TOTALS


MILLIONS
7 f


CAT. SYS.

ITEMS
W / MGR.

U.S. GOV'T


END FY 76
GOAL


FED. CAT. SYS.
ITEMS W/MGR.
U.S. GOVT.
DOD


70 71


71 72 72 73


73 74 74 75 75






13


STANDARDIZATION SECTION
ANNUAL REPORT



DEFENSE MATERIEL SPECIFICATIONS AND STANDARDS BOARD:----

Within the Department of Defense, policies and procedures for imple-
menting and directing the Defense Standardization Program are developed
by the Defense Materiel Specifications and Standards Board. This Board
was established by revision to DoD Directive 4120.3, dated 6 June 1973,
and is chaired by the Deputy to the Assistant Secretary of Defense (I&L)
for Materiel Acquisition. The Board is comprised of senior executives for
engineering and for logistics from the Office of the Secretary of Defense
and each of the three Military Departments, plus a logistics member from
the Defense Supply Agency. The Board meets periodically to consider
significant changes to policy and procedures, to resolve technical problems
of a broad nature and to direct new undertakings within the framework of
the program. Panels pertinent to technological areas have been established
by the Board for electronics, materials, metrication, audio-visual and
clothing and textiles. These panels, within their respective charters,
conduct studies, perform analyses, develop proposed policy changes and
recommend new areas of undertaking for consideration by the Board.

SPECIFICATIONS AND STANDARDS APPLICATION IMPROVEMENT PROGRAM:

During the year the Board directed that a new program be undertaken
dealing with the application and tailoring of specifications and standards
used in materiel acquisition. This program came about as a result of a
study by a task group established by the Defense Science Board to examine
the impact of specifications and standards on materiel acquisition with
the objective of reducing costs in the development and procureme t of our
major weapons systems. At the conclusion of the study, the chairman of
the group presented the findings, conclusions and recommendations to the
Defense Materiel Specifications and Standards Board. Their findings con-
firmed the need for improved controls over the application of specifications
and standards in the acquisition process. The task group concluded that
while these documents, in ZbamseJye...r- 4ot a primary contributor to
unnecessary contract costs, the main cause of cost escalation was identified
to be in the application, interpretation, demonstration of compliance and
enforcement of these documents in Request for Quotations and contracts.
The task group further concluded that a finite group of these specifications
and standards could be identified as the true cost drivers and recommended
that, as a group, these documents should not be contractually invoked with-
out a specific coordinated "scrub and tailor" process. Generally, these
documents did not pertain to a procurable end item, but rather, to sciences
such as reliability, quality control, human factors, safety, documentation
and the like.






14


In August of 1975 the Secretaries of the Military Departments were
instructed to review and evaluate the process of establishing technical
requirements for inclusion in Request for Quotations and contracts and to
extend the role of their Contract Review Boards to assure coordination
among the contributing technologies in the "cost driver" area. The depart-
ments were also instructed to institute procedures and policies to control
the blanket contractual imposition of such specifications and standards
and to structure these controls so as to force technical activities to
tailor requirements to the essential specific operational needs of the end
item equipment or system. Lastly, they were instructed to publicize the
cost effective benefits of such an effort and to provide positive indica-
tions of management support to this program.

Since that time, action has also been taken to introduce the philosophy
of specifications and standards application into course curriculum at a
number of Department of Defense training and educational centers; namely,
the Program Management Course at the Defense Systems Management School, the
Specifications Management Course at the Army Logistics Management Center,
and the Systems Program Management Workshop at the Air Force Institute of
Technology. Most, if not all, of the present and future DoD program managers
will be exposed to training at one or more of these facilities and to the
DoD policies and philosophy governing application/tailoring in the acquisi-
tion process.

To assure continuing cooperation and participation by the industry in
this endeavor, a number of specific actions have been taken or are under
consideration. We are getting the word to our contractors through partici-
pation with industry associations such as the Aerospace Industries
Association of America (AIA), Electronic Industries Association (EIA) and
National Security Industrial Association (NSIA) in their workshops, symposia,
periodic conventions and the like. Lastly, we have examined the Armed
Services Procurement Regulation to determine those changes that should be
made in it to further control the application of specifications and standards
in procurement and to improve a feedback process from industry. One such
change which has been implemented imposes a mandatory requirement that
specifications and standards be tailored to a particular application when
used in procurement. A second proposed change would promote the use of
alternate proposals to be submitted in response to an RFQ when a contractor
can pose further cost effective application/tailoring of the procurement
specifications cited in the RFQ. A third change that we hope to introduce
into these regulations is a more positive attitude towards cost effective
contract change proposals, particularly as regards the elimination of
unnecessary or marginal specifications and requirements. This approach,
coupled with some form of an incentive, would provide effective contractor
motivation to reduce cost.

It is anticipated that more specific policies will be issued in the
immediate future. Accomplishments under this program will be addressed in
future reports.










SCOPE OF THE DEFENSE STANDARDIZATION PROGRAM:

The Defense Standardization Program (DSP) encompasses the broad range
of equipments, parts, materials, processes and practices described in
specifications, standards, engineering drawings, and purchase descriptions
which are prepared and used by the Department of Defense activities. The
DoD Index of Specifications and Standards lists more than 43,000 active
documents (37,000 in the Military series and 5,000 in the Federal series
in addition to 1,190 industry standards which have been adopted for use by
DoD and have equal status).

CONSOLIDATION OF DOCUMENTS:

Since passage of Public Law 436, 82nd Congress, 4,529 specifications
and standards have been consolidated into 1,667 specifications. During
this reporting period, 74 documents were consolidated into 29.

MAINTAINING DOCUMENTS CURRENT:

The program for reviewing and updating standardization documents
continued during the report period. Under this program, all of those
documents listed in the DoD Index of Specifications and Standards which
have not been acted upon for five years or more are identified and reported
to the proponent activity for action. The proponent must either validate
the document as current, schedule a project to bring it up to date, or
cancel the document, as applicable.

During the year, a total of 3,891 documents were subjected to
maintenance review by the Services. Of these, 2,310 were validated as
current and 598 were cancelled. The balance of 983 have been or will be
updated through revision or amendment.

In all, there were a total of 4,226 documents processed in this period,
which included the preparation of new, revised and amended specifications and
standards to implement standardization decisions, to support new procurement,
or to bring about a general update of document coverage in accordance with
the maintenance program outne?,cl,

ITEM REDUCTION:

As a result of actions taken under the DSP to reduce the number of
sizes, kinds and types of items that are generally similar, there are now
123,290 stock numbered items which have been identified in the Federal
Cataloging records as "not to be procured." These items are awaiting
attrition by cognizant supply managers. The number of items so identified
has increased 10,722 since the last report.

participation with Industry Standardization Bodies: Participation
continues to be provided in industry organizations, such as Aerospace






16


Industries Associations, Electronics Industries Associations, American
National Standards Institute, Society of Automotive Engineers, American
Society for Testing Materials, and their various subcommittees. Groups have
been formed for specific work which include industry participation, such as
the--MIL-STD-454-Government-Industry Working Group and Aerospace Mechanical
Fasteners Requirements Grou for the purpose of establishing specific docu-
ments. The extent of participation typically entails the review, coordina-
tion, update, and development of specifications and standards covering
Design and General Standards, High Density Miniature Electrical Connectors,
Standard General Requirements for Electronic Equipment, and Fasteners Used
in the Design and Construction of Aerospace Mechanical Systems. During the
report period, the number of industry documents adopted for use by DoD rose
to 1,190, an increase of 106 over the prior total (1,084).

Continued Management Emphasis on Parts Control: The Military Parts
Control Advisory Group (MPCAG) is a DoD technique to control the entry of
new items into the supply system. Under this plan, our specialists meet
with the Military Services and industry contractors to identify and offer
available state-of-the-art and reliable components for application during
new weapon system/equipment design. The MPCAG was implemented for electronic
components in 1973 and in February 1975 for fasteners and bearings. The
ultimate aims are to provide available parts which meet mission require-
ments of the Military Services and eliminate unnecessary R&D, and to reduce
acquisition costs by eliminating redundant data preparation and item testing
while curtailing the entry of unneeded parts into the supply system. This
DoD Parts Control System has been adopted by all the Services for use in
major weapon system contracts.

The MPCAG has provided parts control support to 202 engineering design
contractual programs since its establishment in FY 1973. Major weapon
systems supported include the F-15, F-16, B-l, A-10, AWACS, E-4B, and other
satellite, space and missile programs. Since the start of the program, the
MPCAG evaluated more than 50,000 part types proposed for applications in new
design programs and developed some 750 specifications for use by Government
contractors. Fifty percent of the parts evaluated by MPCAG were determined
to be nonstandard items replaceable by standard military parts of proven
reliability.

Currently, the program is supporting 123 contracts with a value of
approximately $3.9 billion. During CY 1975, the program achieved cost
avoidance of approximately $92 million at a DoD cost of about $1 million
with a return on investment of 92 to 1.

METRICATION:

During the past year, the Department of Defense has taken an active
role in preparation for the forthcoming conversion to the Metric Units
of Measurement now established by PL-94-168. On 10 June 1975, the
Deputy Secretary of Defense issued an interim policy memorandum. In






17


summary, the policy states that the Department of Defense will use the
International Metric System (SI, the International System of Units) in all
of its activities consistent with operational, economical, technical, and
safety considerations. Another important feature of the policy requires
that beginning 1 January 1976 all major system reviews conducted by the
Defense System Acquisition Review Council (DSARC) will include comments
regarding the use of Metric Units of Measurement or reasons for their non-
use. This will provide top management with a view of the extent to which
metric conversion is being accomplished.

A guidance memorandum was issued in midyear to standardization personnel
requiring that metric activities within each Federal Supply Class be reported
in the annual Standardization Planning Document for each class. The
guidance also encourages the use of International and U. S. industry stan-
dards to the maximum extent practical when they meet DoD requirements. When
new standardization documents are developed for DoD use, they will include a
reduced number of product types and sizes to facilitate an eventual reduction
of items required for use in design, development and follow-on logistics
support.

Current plans within the Department of Defense are to interface,
where possible, with government and private industry groups in planning,
scheduling, and implementing the conversion to the increased use of the
Metric Units of Measurement. However, it is not intended to impose the use
of the metric system on any segment of the industry that has not converted
on a national basis.

NEW ENGINEERING DRAWING SPECIFICATION:

An improved approach for acquiring engineering drawings was instituted
through a revision to the basic drawing specification MIL-D-1000 issued
15 October 1975. The new specification takes advantage of national drawing
standardization practices developed jointly by industry and military
personnel, minimizing the need for special military drawing requirements.
In addition, the method used for ordering drawings was revised so as to
provide for a corresponding increase in the amount of definition required
on drawings as a weapon system moves from development to production. Industry
sources have estimated that annual savings of approximately $25 million will
accrue to the Government as a res&'Af-t*e" changes.

INTERNATIONAL STANDARDIZATION EFFORT:

A growing awareness in the U. S. of the increasing importance of
standardization within the NATO alliance prompted the U. S. to focus atten-
tion on the lack of a NATO forum in the area of assemblies, components, spare
parts and materials (ACSM) and to draw attention to significant benefits
which could result from standardization at this level. As a consequence,
the U. S. proposed that the Military Agency for Standardization at NATO
study the desirability and practicability of establishing a group of experts
on materiel standardization to embrace the ACSM field. The U. S. offered to
assist in the preparation of such a study as did the U.K. who very strongly
supported the proposal.






18


As a consequence of the MAS preliminary study, a meeting was convened
during July 1975 on ACSM. At the meeting, the U. S. responded with seven
(7) recommended ACSM projects; namely, (a) standard electronic modules;
(b) metric screwthread form; (c) tires (metric sizes) for wheeled ground
vehicles; (d) slave receptaces for ground vehicles; (e) environmental
conditions and tests; (f) technical manual formats; and (g) engineering
drafting practices.

DOD/GSA STEERING COMMITTEE ON THE ITEM REDUCTION PROGRAM:

The DoD/GSA Steering Committee was established as a result of the
GAO Report on "Number of Items in Federal Catalog Can Be Reduced," B-146778.
The objective of the committee is to provide high level government-wide
attention to the item reduction program and to implement certain recom-
mendations of the GAO Report.

A joint DoD/GSA operating procedure for item standardization status
coding has been prepared as an advance change notice to the Defense
Standardization Manual, 4120.3-M. This change notice includes the GSA as
a vital part of the program and amplifies the inventory manager's role in
expeditiously removing nonstandard items from the inventory. The advance
change notice was issued in February 1976. In addition, changes have
been proposed to the Defense Inactive Review Program (DIIP) Manual 4120.32-M
to reflect expeditious handling of nonstandard parts.

The committee is investigating the possibility of establishing a
single Federal Item Elimination Program to encompass all item elimination
programs (Standardization, DIIP, Cataloging, and Inventory Manager decisions)
as its ultimate goal.







UNIVERSITY OF FLORIDA

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