14 FAM 120
SUPPLY-CHAIN management
(CT:LOG-256; 02-25-2019)
(Office of Origin: A/LM)
14 FAM 121 Supply-Chain OVERVIEW
(CT:LOG-256; 02-25-2019)
a. Supply chain management encompasses the planning and
management of all activities involved in obtaining goods or services. It
involves coordination and collaboration with suppliers, intermediaries, third-party
service providers, and customers to integrate supply and demand management
across organizations.
b. The steps of the supply chain process include:
(1) Forecast need(s);
(2) Make an acquisition (asset or service);
(3) Fulfill that need;
(4) Transportation of asset to place of first use;
(5) Take accountability (ownership or lease) of the
asset;
(6) Storage (inventory management); and
(7) Disposal/retirement of asset.
c. The Integrated Logistics Management System (ILMS)
is the Department of State's supply-chain web-based management system. Each
ILMS module caters to the needs of the users performing a specific supply-chain
task while complying with applicable laws and U.S. Government-wide
regulations. ILMS is managed by the Office of Program Management and Policy in
the Office of Logistics Management (A/LM/PMP). Each ILMS module supports
supply-chain functions worldwide, including:
(1) Acquisition (eInvoicing, Ariba Contracts, Ariba
Buyer, Momentum Acquisitions, purchase card, etc.);
(2) Travel and transportation;
(3) Warehouse management (expendable and nonexpendable
supplies);
(4) Personal property management, fleet operations
(Fleet Management Information System);
(5) Diplomatic pouch and mail;
(6) Federal financial assistance;
(7) EFiling; and
(8) Receiving (final receipt).
d. The supply-chain functions and various ILMS modules
are addressed in more detail within the subchapters of 14 FAM as listed in 14 FAM 111,
paragraph b.
14 FAM 122 Planning
(CT:LOG-256; 02-25-2019)
a. A purchase requirement begins with a determination
of operational need, and should be submitted well in advance of the fiscal year
end for funding purposes. A genuine need for the acquisition must exist prior
to its purchase, as defined by a need to:
(1) Preserve a current capability through maintaining
or replenishing inventory;
(2) Improve an existing capability;
(3) Reduce cost or enhance performance; or
(4) Establish a new operational capability.
b. Acquisitions consist of various methods to obtain
personal property to support operation requirements of the Department of State,
and include the following:
(1) Reutilization: The first
source of supply is the use of excess personal property. When practicable,
agency personnel must make efforts to satisfy requirements by obtaining and
using excess personal property from within the agency or from other U.S.
Government agencies prior to any contract action to purchase or lease (see 48
CFR 8.102). A search of GSAXcess or the ILMS excess property catalogue for
needed new- or used-condition property, including items suitable for adaptation
or substitution, must be initiated prior to any contract action to purchase or
lease;
(2) Purchase new, used, lease or rent:
Each Agency must develop an acquisition plan each fiscal year which considers
the lifecycle cost of goods and services. The acquisition plan helps determine
whether goods will be purchased, leased (including short-term rent), or
fabricated as the best alternative to meeting agency operational requirements.
The acquisition plan and approval process provides internal controls for the
prevention of misappropriations or unauthorized procurements; and
(3) Fabricate: Consideration
of in-house fabrication expertise and capacity are critical factors when
deciding that available commercial goods do not meet operational requirements and
can only be met by internal fabrication.
c. Several tools are available to help asset managers
determine when and how much to order with respect to maintaining expendable and
nonexpendable stock levels of regularly issued items (see 14 FAH-1 H-419).
For requirements that fall outside the realm of cyclical replenishment orders
(e.g., emergency orders, exceptions, or one-time purchases), the requestor must
submit a requisition justifying the need. In general, urgent or unrealistic
delivery schedules should be avoided since they restrict competition and
increase prices (see FAR 6.302-2).
d. Weighing competing priorities of legitimate needs
with fiscal responsibility, the accountable property officer (or delegated
alternate) determines whether to approve a request or reuse property already on
hand to satisfy that need. See 14 FAM 200 for further details on requirements
determination and acquisitions and 14 FAM Exhibit
221.3 for any specific approvals needed.
e. Acquisition begins when agency needs are established
and includes the description of requirements to satisfy agency needs,
solicitation and selection of sources, award of contracts, contract financing,
contract performance, contract administration, and those technical and
management functions directly related to the process of fulfilling agency needs
by contract.
14 FAM 123 Acquisition (How To Buy)
(CT:LOG-256; 02-25-2019)
a. Submitting a requisition initiates a series of
events. These include the approval process, order placement, confirmation of receipt,
and payment to the vendor to close out the purchase file. Various offices have
responsibilities in the acquisition process, to include procurement, budget and
finance, property management, warehousing, shipping, the requestor, and the
vendor.
b. The Department of State Acquisition Regulation
(DOSAR) is issued as Chapter 6 of Title 48, Code of Federal Regulations. The
DOSAR implements and supplements the Federal Acquisition Regulation (FAR). See
14 FAM 200 for more details on acquisitions in general; 5 FAM 900 for
information technology acquisitions; and 15 FAM for overseas buildings and
construction acquisitions. The Office of the Procurement Executive (A/OPE) has
several links for procurement planning from the A/OPE Intranet website.
c. Department of State acquisitions are conducted by
post general services office (GSO) procurement sections, regional procurement
support offices, the Office of Acquisitions (A/OPE/AQM), and other domestic
activities as authorized by A/OPE. On occasion, the procurement may be
conducted by another agency, e.g., USAID, as an International Cooperative
Administrative Support Services (ICASS) service provider at post.
d. The purchase card program presents an important
option for making acquisitions. This worldwide program typically affects
smaller purchases (less than $10,000) though higher amounts may be authorized
under the program. Key program administrators (KPAs) in A/OPE/AQM manage the
program for each regional bureau and for domestic offices. A/OPE has program
policy information, program manual, and other guidance on its Intranet website.
e. Ariba is the main Integrated Logistics Management
System (ILMS) module for entering requests, tracking the approval process,
placing orders, and approving payment for orders received.
14 FAM 124 Transportation: Official
Supplies and Equipment
(CT:LOG-256; 02-25-2019)
a. The regulations for transporting official supplies
and equipment are detailed (see 14 FAM 310) and
address a number of different scenarios. Various considerations when
determining shipment needs include the following:
(1) Point of origin of shipment;
(2) Destination of shipment;
(3) Shipment mode (e.g., air or sea);
(4) Nationality of carrier;
(5) Use of consolidation receiving points and Despatch
Agents; and
(6) Type of property to be shipped (e.g., perishable,
temperature-sensitive, time-sensitive, or hazardous material).
b. The Office of Logistics Managements Office of
Logistics Operations (A/LM/OPS) establishes procedures for managing the
transportation of supplies and equipment for the Department, domestic field
offices, and U.S. missions abroad. A network of consolidated receiving points
(CRPs), Despatch Agents, and warehouses make up this worldwide service.
14 FAM 125 Asset Management
(CT:LOG-256; 02-25-2019)
a. Asset management encompasses the functions of
receiving, storage, replenishment, issuing, tracking, inventory, and disposal
of U.S. Government-owned personal property (see 14 FAM 400 and 14 FAH-1). The
ILMS Asset Management module must be used for tracking and accountability
purposes. Similarly, complete files of receiving reports, outstanding purchase
orders, disposal reports, and all issue/return forms, must be kept for a
specific period of time as directed by 5 FAM 400 and 5 FAH-4. The document
management disposition schedules are published by A/GIS/IPS.
b. When storing property, the accountable property
officer must implement an efficient and economical warehousing program with
written procedures for the handling and storage of property. Special
consideration must be given to the following:
(1) Secure and/or controlled areas for storing
high-value equipment and supplies subject to theft or deterioration;
(2) Consolidation of facilities across agencies abroad
to maximize use of space and administrative costs;
(3) Segregation of flammable, combustible, or
hazardous materials from general storage by the use of Underwriters
Laboratories (UL)-listed containers specifically made for that purpose, or
constructing fire-rated walls and doors with appropriate fire protection and
ventilation;
(4) Appropriate storage techniques (e.g., lifts,
shelving, racks);
(5) Adequate ventilation;
(6) Establishment of overall safety and security
procedures; and
(7) To ensure the safety of mission personnel and
property, employees must properly secure and store all materials that can be
used as improvised weapons, including, but not limited to, flammable liquids, paint,
hand tools, power tools, rebar, rigid conduit, loose scaffolding, and other
loose construction materials or equipment. Such property must be stored as
securely as possible when not in use to prevent access from unauthorized
persons. See 14 FAH H-310 on receipt and storage procedures worldwide.
c. In general, a physical inventory of accountable
property and ILMS expendables must be performed and reconciled annually. For
inventory due dates, see 14 FAM 416 and 14 FAM 419 for
posts abroad, and 14
FAM 429 for domestic offices. The Office of Logistics Managements
Property Management Division (A/LM/PMP/PM)
monitors accountability of these assets across the entire Department.
d. The Integrated Logistics Management System (ILMS)
module used for tracking accountable property through its life cycle, including
taking inventories, is ILMS Asset Management.
14 FAM 126 Repairs
(CT:LOG-256; 02-25-2019)
a. Once an asset has been acquired, it is prudent to
maximize its usable life. To this end, maintenance and repair play a crucial
role in prolonging the life of assets already in service, thereby minimizing
overall replacement costs. That being said, there is a point where the cost of
frequent maintenance exceeds the replacement cost, especially considering the
potential inconvenience to the assets users during maintenance, and
replacement is appropriate.
b. Tracking the maintenance history is mandatory for
capitalized property (e.g., vehicles, machinery) and aids in the decision of
whether to keep or replace an item. Several factors can come into play when
making replacement decisions, including in-house maintenance (how busy are they
there?), contracted maintenance (surcharges, repeat service due to lack of
familiarity or skill), budget cycles, and the expected life of similar items on
hand.
c. See 5 FAM 520, 5 FAM 925, 5 FAM 1040, 12
FAM 600, and 12 FAH-6 for additional information technology (IT) and
telecommunications repair requirements.
14 FAM 127 Disposal
(CT:LOG-256; 02-25-2019)
a. In order to keep warehouses and offices from
overflowing there is also an inherent necessity to remove old or obsolete
property. When an employee deems property to be no longer useful, efficient,
contemporary, or desirable, that employee reports it to the general services office
for reassignment either to another office or to the warehouse. The top reasons
to dispose of property on a regular basis are to:
(1) Avoid safety hazards;
(2) Get rid of broken or worn-out property;
(3) Apply the replacement cycle;
(4) Free up valuable space; and
(5) Save time and money by not having to account for
this property on current records.
b. There are several ways to dispose of property, and a
specific order in which each method must be attempted (see 14 FAM 417).
c. The Office of Logistics Managements Property
Management Division (A/LM/PMP/PM) provides
guidance for the disposal of domestic excess property. The range of options
available at posts abroad may be limited, so the general services office (GSO)
must determine the best course of action.
14 FAM 128 and 129 unassigned