Logistics and Discrepancies · 2 of 3
Materiel arrives short, damaged, mismarked, duplicated or simply wrong. The program has one instrument for raising that, and one form behind it: "In the event of a discrepancy, the purchaser submits an SDR using Standard Form (SF) 364" (SAMM C6.4.10).
The manual lists what counts. Discrepancies "result from shortages or overages, improper packing or marking, duplicate shipments, incorrect items, and condition or quality discrepancies, including damage, prior to release to the carrier by the originating shipper" (SAMM C6.4.10.3).
The closing words of that definition matter. Condition problems are in scope where they arose before the shipper released the cargo to the carrier. Damage after that point is a transit question, and transit risk sits with the buyer once title has passed, as set out in title transfer and who carries the risk in transit.
One program is carved out entirely: "The SDR process is not applicable to Building Partner Capacity (BPC) cases" (SAMM C6.4.10). Where a case is funded by American appropriations rather than by a purchaser, this route does not exist.
The general deadline runs from delivery, not from discovery. The purchaser "agrees to submit an SDR no later than one year after delivery or after passage of title to the defense articles, whichever comes first" (SAMM C6.4.10.1). Since title often passes at the initial point of shipment, that clock can start well before anything reaches the partner.
Claims that nothing arrived run on their own rule. They "will be disallowed by the USG if such claims are received more than one year after the scheduled delivery date or initial billing, whichever is later" (SAMM C6.4.10.1). Where the actual delivery date turns out to be later than the scheduled one, the manual allows consideration beyond the year.
A late report is not automatically fatal. The manual admits consideration where unusual and compelling circumstances involving latent defects justify it, which is a narrow door rather than a general extension.
Shipments that arrive misdirected or unordered are handled separately and urgently. The purchaser agrees to report consignments containing "items that are identified as classified/sensitive materiel, and/or arms, arms parts, or explosives, within 24 hours of discovery, regardless of dollar value, for disposition instructions from the USG" (SAMM C6.4.10.1.1).
Return timings then split by what the cargo is. The purchaser "agrees to ship such classified/sensitive materiel, and/or arms, arms parts, or explosives within 30 days of USG direction for such return". Everything else is slower: "For all other items, the Purchaser agrees to ship discrepant articles within 180 days of receiving USG direction for such return" (SAMM C6.4.10.1.1).
Twenty four hours, thirty days and one hundred and eighty days are three different operational postures, and they are triggered by the nature of the item rather than by its value.
Outside that category, small claims are not adjudicated. Reports "are processed only when the estimated value is $200 or greater regardless of the type of discrepancy except for misdirected or unordered shipments" (SAMM C6.4.10.2). The estimate includes transportation and handling as well as the item.
Filing below the threshold still has a purpose. A report creates a record of what happened, and a pattern of small discrepancies is easier to raise later when each instance was documented at the time.
Responses come from one place. The implementing agency "designates a single point of contact for SDR corrective action", and the manual then restricts authority sharply: "Only this point of contact and DSCA are authorized to accept and convey USG liability or originate a commitment for corrective action" (SAMM C6.4.10.4).
That rule is worth knowing on both sides of a contract. A helpful answer from a depot, a program office or a contractor is not an admission that binds the government, and a partner acting on one is acting on nothing.
Above a set value the decision moves up. The agency reviews and approves or disapproves reports "when the IA determines the USG is liable for correction and recommends use of FMS funds in excess of $50,000; or the SDR involves an issue likely to be raised to DSCA" (SAMM C6.4.10.7). It then "will make a final decision on the SDR within 60 days of receipt of the SDR package".
Remedies are not free-standing. The manual anchors them to the statutory duty to recover costs, noting that the Arms Export Control Act provisions on sales from stock and sales from procurement "require that the USG recover full costs" (SAMM C6.4.10.8).
One consequence lands directly on a partner's budget. Where an item is re-requisitioned to replace a discrepant one, it is billed at the current price, even where the original was released at a lower one.
Behind an approved report sits a financing decision rather than a single pot of money. The manual sets out four sources in order. Within the contract costs, within the working capital fund surcharge, from the appropriation that funded the stock item, and, as a last resort, from administrative, transportation, and packing, crating and handling funds (SAMM C6.4.10.9). Which one applies turns on whether the article came from procurement or from stock.
The manual sets out eight documentation requirements, and a report that is missing them is a report that waits. Beyond the form itself and the case documents, it asks for a chronology of events, the key actions taken, the position of legal counsel, and the options for remedy with their costs (SAMM Table C6.T3).
Two of the eight are easy to overlook. One is preventive action, which asks what will stop the same thing happening again. The other is retention of records, which keeps the file available after the immediate question is settled.
For a partner, the practical lesson is that the evidence is assembled at the point of receipt, not at the point of dispute. A consignment photographed and counted on arrival produces a report that can be decided. One reconstructed months later usually does not.
| SDR | Supply discrepancy report, raised on Standard Form 364. SAMM C6.4.10. |
|---|---|
| One year | The general filing deadline, running from delivery or passage of title, whichever comes first. |
| $200 | The estimated value below which a report is not processed for compensation. |
| $50,000 | The recommended use of case funds above which the agency itself decides the report. |
| Single point of contact | The only office, with the agency, that can accept liability or commit to a remedy. |
Every statement above links to the document behind it. The full source list for this piece is on the sources page.
This page describes public United States government programs for general information. It is not legal, regulatory or procurement advice, and it does not address the facts of any particular case.
Discrepancies are found at the point of receipt, which is usually the least controlled point in the chain. Sentfore provides secure movement, protective security and site support at that end of a defense program, in complex environments. Requirements can be sent through the contact page.