14 FAM 120
SUPPLY-CHAIN management
(CT:LOG-365; 01-20-2023)
(Office of Origin: A/LM)
14 FAM 121 Supply-Chain OVERVIEW
(CT:LOG-365; 01-20-2023)
a. Supply chain management encompasses the planning and management of all activities involved in obtaining goods or services to meet operational requirements of the Department in a timely and cost-effective manner. It involves coordination and collaboration with suppliers, intermediaries, third-party service providers, and customers to integrate supply and demand management across organizations worldwide.
b. The supply chain plan follows these steps:
(1) Forecast needs (14 FAM 122);
(2) Fill the need(s) through acquisition—either transfer from U.S. Government entities as a first source, lease, or purchase;
(3) Transport assets to place of first use;
(4) Track accountable property through its lifecycle;
(5) Store assets as needed (inventory management at warehouse or storeroom); and
(6) Disposition of Department personal property per the Code of Federal Regulations (CFR) authority and in accordance with other applicable law, as determined by the type of property involved (14 FAM 417).
c. The Integrated Logistics Management System (ILMS) is the Department of State's supply chain management system. Managed by the Logistics Systems Division (A/LM/PMP/SYS), each individual ILMS module aligns with specific tasks in the global supply chain, complies with applicable laws and federal regulations, and supports other program areas and functions worldwide.
14 FAM 122 Planning
(CT:LOG-365; 01-20-2023)
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. To meet an operational need, the purchase must:
(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. Each U.S. Government agency must develop an acquisition plan each fiscal year which considers the lifecycle cost of goods and services. The acquisition plan and approval process provides internal controls for the prevention of misappropriations or unauthorized procurements. Acquisitions of personal property in support of operational requirements of the Department of State may occur by the following:
(1) Inter-agency reutilization: When practicable, agency personnel must make efforts to satisfy requirements by obtaining and using personal property from within the agency or excess property from other U.S. Government agencies prior to any contract action to purchase or lease (48 CFR 8.102). A search of GSAXcess or the ILMS for needed new- or used-Department property, including items suitable for adaptation or substitution, must be initiated prior to any contract action to purchase or lease;
(2) New, or used purchase, lease, or rent: When existing U.S. Government-owned personal property cannot meet the need, goods may be purchased, leased (including short-term rent), or fabricated to meet operational requirements; and
(3) Fabrication: Consideration of in-house fabrication expertise and capacity are critical factors when deciding when commercial goods do not meet operational requirements.
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 (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 (48 CFR 6.302-2).
d. Weighing the 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 plus 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-365; 01-20-2023)
a. Submitting a requisition initiates this series of events: the approval process, order placement, confirmation of receipt, and payment to the vendor to close out the purchase file. The acquisition process is accomplished by various entities: the procurement, property management, warehousing, and shipping, units; the financial management office; the requestor; and the vendor.
b. The Department of State Acquisition Regulation (DOSAR) (48 CFR 600-699) 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 (IT) acquisitions; and 15 FAM for overseas buildings and construction acquisitions. The Office of the Procurement Executive (A/OPE) intranet site has several links for procurement planning.
c. Department of State acquisitions are conducted by post general services office procurement units, regional procurement support offices, the Office of Acquisitions Management (A/OPE/AQM), and other domestic offices as authorized by A/OPE. At a few posts, the procurement may be conducted by another agency, e.g., USAID, as an International Cooperative Administrative Support Services (ICASS) provider.
d. The worldwide purchase card program provides a useful acquisition option. While typically used for smaller purchases (less than $10,000), higher amounts may be authorized. Additional guidance may be found on A/OPE's Purchase Card Program Share Point page.
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-365; 01-20-2023)
a. The regulations for transporting official supplies and equipment are detailed in 14 FAM 310 and address several scenarios. Consider the following when determining shipment needs:
(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 consolidated 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 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, Despatch Agents, and warehouses make up this worldwide service.
14 FAM 125 Asset Management
(CT:LOG-365; 01-20-2023)
a. Asset management encompasses the functions of receiving, storing, replenishing, issuing for operational use, tracking, inventorying, and disposing 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 documents, outstanding purchase orders, disposal documents, and all issue/return forms, must be kept for specific periods 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 maintain an efficient and economical warehousing program with written procedures for the handling and storage of property (see 14 FAH-1 H-310). Special consideration must be given to the following:
(1) Consolidation of facilities across agencies abroad to maximize use of space and reduce redundant administrative costs;
(2) Appropriate storage techniques (e.g., lifts, shelving, racks); and
(3) 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 and expendable property in storage (warehouse or storeroom) must be performed and reconciled annually. The Property Management Division (A/LM/PMP/PM) monitors accountability of these assets across the Department worldwide.
14 FAM 126 Repairs
(CT:LOG-365; 01-20-2023)
a. Once acquired, the usable life of U.S. Government assets must be maximized. Maintenance and repair play a crucial role in prolonging the life of assets already in service, thereby minimizing overall replacement costs. Of course, when the cost of frequent maintenance exceeds the replacement cost, especially considering the potential inconvenience to the asset’s users during maintenance, then replacement is appropriate.
b. Tracking the maintenance history is mandatory for capitalized property (e.g., vehicles, machinery) and aids in the decision to keep or replace an item. Replacement decisions involve several factors, including in-house maintenance availability, contracted maintenance cost and capabilities (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 525, 5 FAM 925, 12 FAM 600, and 12 FAH-6 for additional information technology (IT) and telecommunications repair requirements.
14 FAM 127 Disposal
(CT:LOG-365; 01-20-2023)
a. To keep warehouses and offices operational and efficient, old or obsolete property must be removed. When an employee deems property to be no longer useful, efficient, contemporary, or desirable, that employee reports it to the accountable property officer for reassignment either to another office or to the warehouse. Property should be disposed of on a regular basis because:
(1) Falls under a minimum replacement criteria;
(2) No longer performs the tasks for which it is used;
(3) Does not meet the Department needs or is incompatible with the personal property to be acquired (i.e. outdated technology);
(4) Cannot be repaired (or repair costs are too expensive);
(5) Has a shelf life expiring in 30 to 90 days;
(6) Frees up storage space (warehouse or storeroom); and
(7) Saves time and money by no longer requiring accountability
b. All laws and authorities, including the Code of Federal Regulations, applicable to the disposition of Department personal property must be followed.
c. The Property Management Division (A/LM/PMP/PM) provides oversight for the disposal of Department personal property worldwide. The post property disposal officer must process most Department personal property under exchange/sale authority as applicable; or seek approval of the Property Management Division Director for alternative methods.
14 FAM 128 and 129 unassigned