Defense Supply Center Richmond

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Determine What It Is?

• Source approval is dependant upon several
  factors
• Is the item Critical Safety Item (CSI)?
• Is the item Controlled Source?
• Is the item on a Source Controlled drawing?
• Is the item Drawing Proprietary?
• Is the item Competitive?
• Is the item Fully Competitive?
• Are there special Quality Assurance Requirements?

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What do those Codes mean?

• The Government uses a Two position Acquisition
  Method Codes (AMC) Acquisition Method Suffix
  Code (AMSC) code to identify how an item is
  procured. Here are a few examples of those
  codes
• AMC 1 competitive (multiple sources)
• AMC 3 sole source (direct purchase
  manufacturer)
• AMSC B source controlled, OEM approval
  required
• AMSC C controlled sources, ESA approval
  required
• AMSC D data not physically available
• AMSC G fully competitive, no approval
  required
• AMSC H inadequate data for full open
  competition
• AMSC T qualified products list (QPL)

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Who says its Critical?UNCLE SAM SAYS SO!

• The Military Services provide DLA with Weapon
  System Essentiality Codes that dictate the
  Criticality Statements in the Purchase Order
  Text.
• EC1 Failure renders end item inoperable
• EC5 Needed for Personnel Safety
• Either of these codes means the item is
  Critical Application.
• The Military Services also provide DLA with lists
  of Materials that must be managed in a very
  specific manner in order to guarantee Aircraft
  and Aircrew safety. DLA uses Special Procedure
  Codes to dictate unique management of these
  items. Examples are CRITICAL SAFETY ITEM (CSI),
  AIRCRAFT LAUNCH and RECOVERY EQUIPMENT (ALRE),
  INDIVIDUAL REPAIR PARTS ORDERING DATA (IRPOD) and
  ICBM Nuclear Hardened Items.
• There are STRINGENT rules associated with all of
  these SPECIAL items.

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JALC

• The Joint Aeronautical Logistics Commanders from
  Army, Navy, Air Force, Marine Corps, DLA, DCMA,
  NASA, FAA address Joint Logistics issues.
• Under the direction of Congress (Section 802 of
  the National Defense Authorization Act for Fiscal
  Year 2004), DoD established policy guidance for
  the source and quality control requirements of
  CSIs.
• JALCs Joint Instruction Management of Aviation
  Critical Safety Items provides this direction
  for all of the above activities follow.
• JALCs Aviation CSI Handbook provides additional
  requirements for processes like source validation
  and approval.
• DSCR manages the official CSI list for all DLA
  procurements.

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How long is Source Approval good for?

• The JALC Instruction specifies that alternate
  sources of Critical Safety Items must be
  revalidated by the military service(s) after 3
  years. This does not require another SAR. If
  the Engineering Support Activity (ESA) does not
  impose new testing or quality requirements, the
  contractor has no adverse quality history, has
  not moved or changed processes, then this should
  be a simple review initiated at DLAs request.
• The JALC Instruction specifies Production Lot
  Testing and First Article Test, but DLA has been
  granted authority to waive First Article Test
  under certain conditions, particularly no adverse
  contractor quality history, or if contractor has
  manufactured and sold the item, or similar item,
  within the past 3 years.

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Who Approves My SAR?

• All Critical Safety Items (CSI) Critical
  Application Items, Aircraft Launch Recovery
  (ALRE), Individual Repair Parts Ordering Data
  (IRPOD), ICBM Nuclear Hardened Items, and
  Controlled Source items must be reviewed by the
  Engineering Support Activity (ESA) for source
  approval.
• The Original Equipment Manufacturer (OEM) has
  approval authority for items on Source Controlled
  drawings.
• Due to the detailed review processes involved,
  Procurement Awards are not held pending the
  review and determination of formal Source
  Approval Request (SAR) packages when material
  supply demand requirements dictate.

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Who Approves My SAR?

• Source approval is not evaluated for items where
  the drawings are designated Proprietary unless
  formal documentation of Data Rights Use Authority
  or Release of Data Rights from the OEM is
  provided at the time of the Source Approval
  Request.
• Source approval for non-critical Sole Source or
  Competitive items may be performed at DSCR if the
  ESAs have not placed restrictions on the item.
• Source approval is not required for items that
  are Fully Competitive.
• There may be specific Quality Assurance
  Requirements imposed by the ESAs to address any
  unique characteristics that need to be controlled.

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What do I need to provide?

• For Non-critical (3H, 3D or 1H, 1D) items
• Cover letter stating your desire to become an
  approved source on a specific Material.
• Current, complete legible technical data
  package to include drawings, sub-tier drawings,
  parts lists and first page of all applicable
  specifications.
• Certificate of Law on Company Letterhead signed
  by a responsible Company official

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What do I need to provide?

• For Controlled Source items 3C or 1C, use
  DSCR Source Approval Guide located on the DSCR
  Small Business page to decide what data is
  required. If the SAR is complete, DSCR will
  forward the package to the ESA.
• For Source Controlled items coded 3B or 1B,
  the contractor must forward their Source Approval
  Request to the Design Control Activity or OEM
  (Original Equipment Mfg.)
• For QPL items coded 1T source approval must be
  submitted to the approving authority listed on
  the specification for review and acceptance.
• By definition all C and B coded items ARE
  Critical

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DSCR SAR CHECKLIST

• The Contractor should first select which category
  is appropriate for the part they wish to become
  approved to manufacture. The Contractor must
  then provide in the Source Approval Request (SAR)
  all elements that are checked under the category
  selected. If a requirement does not exist for a
  specific part (e.g. no test plan required) then
  provide a statement to that fact.  
• Reverse Engineering is handled through DSCRs
  Value Engineering Branch. There is a link on the
  DSCR Small Business Web site.  
• 
  

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DSCR SOURCE APPROVAL CHECKLIST I SAME
PART II SIMILAR PART (EQUIVALENT) III NEW
MANUFACTURER
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FAA/PMA

• An FAA Parts Manufacturer Approval (PMA) part is
  an FAA-approved replacement for an FAA type
  certified part
• PMA suppliers must demonstrate to the FAA through
  identicality or test and computation (reverse
  engineering) that the part is the same or better
  than the part it seeks to replace

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What happened to my SAR? or The BLACK HOLE

• New SAR Request Database and Tracking Application
  is now in development
• COMPAD Small Business input/oversight
• DSCR 339 Focal Point input
• DSCR Procurement Information Memorandum
• Process Buyers must follow
• DSCR Technical Review Guidelines (Deskbook
  Appendix B-24)
• Process Product Specialists must follow

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What happened to my SAR? or The BLACK HOLE
(cont)

• Buyer Procedure
• Savings thresholds must be evaluated (200.00 for
  a local DSC evaluation plus 1,500.00 per
  Engineering Support Activity) The buyer must
  provide the Product Specialist the dollar amount
  of potential savings when an Alternate Offer
  evaluation is requested.
• If the Procurement can wait for Evaluation,
  forward SAR to Product Specialist for immediate
  review and hold the Buy.
• If Evaluation is to be considered for Future
  Requirements
• Prepare FL62 (DPACS Evaluation Prepare
  Evaluation Forms)
• Original to COMPAD with copy and forward SAR
  package to Product Specialist
• Copy for file

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What happened to my SAR? or The BLACK HOLE
(cont)

• Product Specialist Procedure
• SAR Evaluation
• Determine if SAR can be reviewed locally or must
  be sent to ESA.
• Evaluate SAR against Source Approval Guide
• If SAR must be approved by ESA, create 339 (180
  day response time) and notify COMPAD office.
• Send SARs to all ESAs that have an interest in
  the item.
• Provide approval/disapproval letter to Buyer or
  COMPAD office.
• Note NAVY SARs are held pending
  designation of which BDE (Basic Design
  Engineer) needs to review the package.

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Alternate Offers Clauses

• Clauses can be viewed on the Worldwide Web at the
  following addresses
• http//www.dscr.dla.mil/proc/clauses/files/L54.txt
  52.217-9002 CONDITIONS FOR EVALUATION AND
  ACCEPTANCE OF OFFERS FOR PART NUMBERED ITEMS
• http//www.dscr.dla.mil/proc/clauses/files/L58.txt
  52.217-9G04 FLIGHT SAFETY CRITICAL PART,
  CRITICAL APPLICATION, ITEM DOCUMENTATION
  REQUIREMENTS
• http//www.dscr.dla.mil/proc/clauses/files/L59d.tx
  t 52.217-9G23 RESTRICTION OF ALTERNATE OFFERS
  FOR SOURCE CONTROLLED ITEMS