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NASA
Procedural
Requirements

NPR 4100.1F
Effective Date: March 07, 2017
Expiration Date: March 07, 2027

COMPLIANCE IS MANDATORY FOR NASA EMPLOYEES

Subject: NASA Supply Support and Materiel Management (Revalidated with Change 2, on March 7, 2022)

Responsible Office: Office of Strategic Infrastructure

Chapter 3. Inventory Management

3.1 Inventory Classification

3.1.1 The three stock classifications for inventory are: Store Stock, Program Stock, and Standby Stock. The stock designation codes are input into SMS to identify the inventory classification. NASA inventories are assigned a stock designation as follows:

a. Store Stock Designation Code of 1 - Inventory repetitively procured, stored, and issued. Repetitive means the customer requirements for the Materiel, supplies, or equipment will be on a recurring basis.

(1) Store stock can be consumable (consumed in use), repairable (can be returned to a serviceable condition by replacing components), or equipment inventory.

(2) Examples include aircraft parts; electromechanical, electrical, and electronic (EEE) components; mechanical fasteners; furniture; test equipment; tools; and engines.

b. Program Stock Designation Code of 2 - Materiel, supplies, and equipment purchased and designated for a specific aircraft, unmanned aerial vehicle, program, or project. NASA owns the Materiel; however, the inventory is stored until the customer requests the inventory be issued for its intended purpose. Can be consumable (consumed in use), repairable (can be returned to a serviceable condition by replacing components), or equipment inventory. Examples would be electrical, electronic, electro-mechanical components, ground support equipment, Flight Safety Critical Aircraft Parts (FSCAP), and Life Limited.

c. Standby Stock Designation Code of 3 - Materiel, equipment, and supplies held for emergencies or critical missions where lack of stock on hand would delay an aircraft, program, project mission, or emergency response that might result in a safety incident; loss, damage, or destruction of Government property; danger to life; or substantial financial loss to the Government.

(1) Standby Stock is reviewed annually by owning Division Chief to ensure continued stocking is still required. Examples are personal protective equipment (goggles, apron, and gloves), spare aircraft engines, deicing salt, fire extinguishers, and clean room Materiel.

3.2 NASA SAP Supply Management System (SMS) and Inventory Records

3.2.1 Accountable Inventory Records: The Center Senior Logistics Manager or equivalent is accountable for physical custody of Materiel in storage and needs to ensure accountability of that Materiel in the SMS. All Materiel within the NASA supply chain, whether in storage or in transit, will have an accountable record in SMS or other approved supply/inventory management systems that accounts for Materiel by NSN.

a. NASA Centers utilize the SMS to identify, catalog, issue, receive, account for, and physically control all items in inventory.

b. The SEMO on behalf of the Senior Logistics Manager is responsible for ensuring the Supply Officer executes the actions required to establish accountability for a Center's inventory.

c. The Senior Logistics Manager shall:

(1) Ensure inventory records are established and maintained in SMS and are not accounted for in multiple supply management systems. This includes aircraft and unmanned aerial vehicles Materiel and supplies.

(2) Ensure logistics support contracts specify when inventory in the custody of a contractor is or is not managed as Installation-Accountable Government Property (IAGP).

(3) Ensure that Inventory that falls under the IAGP clause is maintained in SMS.

3.3 Inventory Storage Requirements

3.3.1 Supply Officers shall:

a. Ensure inventory stored in Center-owned or -leased warehouse facilities is provided physical security and protection as required by NPR 1600.1, NASA Security Program Procedural Requirements and NPR 1620.3, Physical Security Requirements for NASA Facilities and Property.

b. Ensure items requiring special storage are classified "Controlled Inventory" and provided the appropriate provisions.

(1) Controlled inventory are those items designated as having characteristics that require the assets be identified, accounted for, segregated, and handled in a special manner to ensure their safety and integrity.

(a) Controlled inventory includes classified, sensitive, and pilferable items.

(b) Classified items require protection in the interest of national security.

(d) Sensitive items include precious metals, items of high value, highly technical items, and items of a hazardous nature like biological agents, drugs, small arms, and missiles.

(e) Pilferable items have a ready resale value or application to personal possession and are especially subject to theft. Pilferable items include hand tools, shop stock, aircraft parts, ammunition, explosive devices, firearm parts, vehicle parts, and communication and electronic parts.

(2) Controlled inventory will be stored in a secure locked storage area.

(a) Access to storage facilities where controlled items are stored will be by authorized personnel only.

(b) Personnel authorized access to controlled inventory storage areas will be designated and approved in writing by the SEMOs.

(3) Classified inventory is stored, issued, and handled only by individuals with the appropriate clearance, and Materiel is afforded physical security in accordance with the security classification of the asset.

(4) Coordination with Center Protective Services is required to create a process to ensure classified Materiel is issued only to authorized personnel with the same or higher classification as the item being issued.

c. Ensure all inventory stored in warehouses, bulk storage, or cold or outside storage are tagged with Materiel labels generated by SMS or the Center supply management system.

(1) Only one NSN will be assigned to each location. An NSN can be located in multiple locations.

(2) Assignment of a local NSN to a box containing multiple items and an item description of miscellaneous is not authorized. Every item placed in inventory with a different NSN should have its own separate and distinct location.

d. Protect all Materiel in inventory from damage, deterioration, and corrosion from the elements (temperature, humidity, and moisture), foreign objects and contamination. All items in inventory will be stored in an environment that ensures the Materiel is serviceable and usable for its intended purpose. Warehouses and storage facilities need to be clean and neat.

e. Ensure EEE components and assemblies containing EEE components that are sensitive to electrostatic discharge (ESD) are stored, processed for storage, or issued in accordance with an ESD control plan that meets the requirements of ANSI/ESD S20.20. Only personnel defined in the ESD Control Plan are authorized to handle ESD-sensitive EEE components or perform duties relative to ESD-controlled storage area certification.

f. Store shelf life items, i.e., those with limited shelf life, in a manner to ensure the oldest stock on hand is easily accessible and issued first using the first-in, first-out (FIFO) process.

3.3.2 Storage Principles. The principles of storage management are the starting point in determining storage requirements and policies used to manage storage. The storage requirements are the maximum use of space consistent with adequate care, protection, and proper identification. Storage Managers shall consider the following essential principles for establishing an effective and efficient warehouse management program:

a. Consider an item's characteristics when selecting a specific type of storage space, e.g., indoors. An item's characteristics can include whether or not it is a shelf-life item, contains hazardous Materiel, or requires special maintenance and/or inspection requirements.

b. Ensure that adequate security, safe storage environments, technical expertise, and test equipment are available when necessary.

c. Maintain Materiel in ready-for-issue condition to prevent the Materiel from deteriorating.

d. Maintain appropriate security to prevent theft, fraud, and abuse.

e. Manage shelf-life items to ensure they are used before they expire.

f. Preserve, package, and mark items for storage and movement using appropriate methods to provide adequate and cost-effective protection.

g. Maintain and document transaction history to ensure a complete audit trail, including receipts and issuing documents.

h. Whenever possible, open, inspect, and test Materiel received for acceptability or obvious damage.

i. Consider using Government storage facilities when possible instead of using commercial facilities.

j. Ensure adequate controls are in place to preserve and prevent damage and deterioration of sensitive items due to contamination, corrosion, foreign object debris, and environmental degradation (e.g., temperature and humidity controls).

3.3.3 Space Planning. Warehouse supervisors shall identify space requirements and establish adequate storage allocation. Some considerations in determining space requirements and enough storage allocation include:

a. The size, weight, physical characteristics, and configurations of Materiel being stored and issued.

b. The quantity, ease of receipt and issue, and type of stored Materiel.

c. A means of identifying various storage areas, aisles, and material-movement patterns.

d. Accessibility, potential interference with operations, operating variables, emergencies, and significant organizational changes, which might affect the storage operation.

e. Expansion of storage capability when needed or a reduction in space when storage requirements are reduced.

3.3.4 Warehouse Supervisors shall consider an item's physical characteristics and packaging when determining the need for a specific type of storage space, which can influence operating costs. Assigning Materiel to any of the three types of storage space identified below depends largely on its characteristics and packaging.

a. Covered Storage - Covered storage space is within an enclosed building, with or without environmental control, e.g., cooling or heating facilities. Covered storage is used to protect Materiel from deterioration due to weather. Covered or fully enclosed storage space, compared to outside storage, is more costly to construct and maintain and often is supplemented with sheds or lean-tos, which provide partial cover. Supplemental sheds/lean-tos are desirable and effective for storage of Materiel requiring maximum ventilation or those not requiring total protection from the weather. Care should be exercised in selecting Materiel for storage in covered areas. The physical characteristics of the item (size, weight, etc.) and cost effectiveness should be considered before deciding on covered storage.

b. Outside Storage - Outside storage space is an area designated for this purpose and set aside, usually by fencing or other suitable enclosure. Improvised outside storage is usually an area that has been graded and/or hard-surfaced or prepared with a topping of suitable Materiel to provide adequate storage handling operations. While unimproved space is sometimes designated, it should be used only as an emergency or temporary measure. Outside storage is comparatively economical to operate and maintain. Generally, any item intended for outdoor use can be stored outside provided it is protected properly against adverse conditions. Numerous methods of protecting bare products or packaged units are available. These include tarps, plastic coverings, and portable shelters. Materiel should never be placed directly on the storage surface, paved or otherwise. Pallets, racks, or other suitable items need to be used.

c. Hazardous Materiels Storage - Hazardous Materiel storage is any storage space used to hold inventory that by virtue of its potential danger requires control to ensure adequate safety to life and property. Hazardous Materiel will be stored in a designated area apart from regular storage or other non-compatible hazardous Materiel. Appropriate measures need to be taken to ensure immediate and effective response at the storage location in case of emergency. Stock will be limited to the minimum quantity necessary to satisfy operational requirements.

3.4 Management of Shelf-Life Materiels

3.4.1 Shelf-life items are classified as non-extendable (Type I) or extendible (Type II). Use Appendix D to determine if the shelf-life item is extendable. Shelf life indicates how long an item can be stored and remain useable for its intended purpose.

a. Shelf-life items classified as Type I have a finite, non-extendable storage life and are considered to be unusable after the shelf-life date expires.

b. Shelf-life items classified as Type II have an extendable shelf life. Type II items may be tested to determine if the product is still usable for its intended purpose. Examples of Type II items are paint, ink, tape, printing ribbon, printer cartridges, and photographic film.

c. The Center Supply Officer shall ensure monthly inventory details report is generated from SMS or similar report when using other approved SMS to review Type I and II shelf-life material nearing the end of the designated shelf-life period.

(1) The review is required only for shelf-life material with a period of 60 months or less.

(2) Type I expired shelf-life material stored in Center organizations are processed for disposal according to Center policy and procedures. Type I material stored in Logistics shall be disposed of through disposal. Stockpiling of Type I expired program stock shelf-life material in Logistics is not authorized.

(3) Type II items will be inspected to determine whether the shelf-life period can be extended.

(a) These inspection criteria do not apply if the shelf-life item has a line item inventory value of $500 or less or if the cost of inspection and testing is significant in relation to the value of the item.

(b) If material is found suitable for issuance on the date of inspection, the shelf-life period may be extended for a period equal to 50 percent of the original shelf-life period, and the next re-inspection date should be established accordingly.

(c) Upon re-inspection, the shelf life can be extended again up to 50 percent of the original shelf life as long as the material conforms to the established criteria. Supply Officers shall develop a process to document extension of shelf-life periods based on inspection and testing of the material.

(d) Type II expired shelf-life material is processed for disposal according to Center policy and procedures.

d. When the shelf-life period of Type II material (except for critical end-use items as described below) is extended, only the exterior containers of bulk stocks need be annotated or labeled to indicate the date of inspection and date material is to be re-inspected.

(1) A critical end-use item is any item that is essential to the preservation of life in emergencies, e.g., parachutes, marine life preservers, and certain drug products or any item that is essential to the performance of a major system, e.g., aircraft, the failure of which would cause damage to the system or endanger personnel.

(2) Individual units of issue not classified as having a critical end-use application are not required to be annotated or labeled as long as controls are established to preclude issuance of unserviceable material to a user.

(3) At the time of shipment, the date of inspection and date for re-inspection will be affixed by label or marked by other means on each unit of issue of Type II items having a critical end-use application.

e. To the extent economical, shelf-life materials are packaged to minimize deterioration.

3.4.2 Supply Officers shall:

a. Ensure Type I and II shelf-life items in inventory are used prior to the shelf-life expiration date.

b. Develop and implement procedures for testing Type II shelf-life Materiel to determine if the assets are useable for their intended purpose.

(1) Centers may use the shelf-life extension system (SLES) to extend Type II shelf-life products. The SLES provides information on products that have already been tested and extended by DoD and can be a useful tool to use for Type II shelf-life Materiel that may require an extension.

(2) The testing results housed in the SLES system can be used to extend shelf-life material in inventory without the Center incurring testing cost.

(3) The process for SLES is in DoD 4140.27-M, DoD Shelf-Life Management Program.

c. Create processes and procedures to ensure Materiel and supplies are utilized prior to the shelf-life expiration if stored within the organization in large quantities. Organizations will create a review process to ensure Type I nonextendable shelf-life Materiel is either disposed of or an organizational process is created to limit product usage if it can be used for other than its intended purpose without creating a safety issue. Organizations have the option to adopt logistics processes and procedures to ensure Type II shelf-life items are tested and extended or develop their own processes and procedures.

d. Ensure procurement documents and contracts contain the requirement for manufacturers and suppliers to mark the unit or container with the month and year of manufacture, shelf-life period, production, and batch number on all shelf-life items procured from other-than-Government sources of supply.

3.5 Precious Metals

3.5.1 Precious metals in any shape or form are susceptible to theft and require extraordinary controls from acquisition to disposal. Procedures for disposal of precious metals are specified in NPR 4300.1.

3.5.1.1 Precious metals are listed below:

a. Silver.

b. Rhodium.

c. Gold.

d. Ruthenium.

e. Platinum.

f. Iridium.

g. Palladium.

h. Osmium.

i. Rhenium.

3.5.1.2 Precious metal alloys are one or more precious metals combined with other materials to form an alloyed material or substance in any shape or form for fabrication, testing, or other research purposes.

3.5.1.3 Precious metal end items are those in any shape or form, consisting solely of one or more precious metals or precious metal alloys that have been shaped or fabricated for research, testing, or use as an entity.

3.5.2 Supply Officers shall establish controls to prevent stockpiling precious metals, including alloys and end items.

3.5.2.1 Precious metals (pure, alloys, and end items) will be acquired only for a specific program, project, or other work activity.

3.5.2.2 Precious metals orders are approved in writing by the senior project or program manager and the SEMO.

3.5.2.3 Precious metals will be maintained in a secured controlled access storage environment with access by authorized personnel and be under documented control and accounting from the time of receipt to final disposition. Such documentation and related control records will indicate the weight of precious metals to the nearest troy ounce.

3.5.2.4 Supply Officers shall ensure physical inventories of precious metals on hand (held for issue or disposition) are conducted annually by someone not having possession or custody of the metals or the individual responsible for maintenance of inventory records. The results of inventories will be reported in writing to the Center SEMO within 30 days after the inventory completion.

3.5.3 Anyone discovering the loss, including theft, of precious metals in any form or end items shall promptly report it to the SEMO and to the Center Security Officer.

3.5.3.1 The individual having custodial responsibility of the precious metal(s) in question initiates an NF 598 and property survey report processes per NPR 4200.1. Inventory adjustments are accomplished only after the completion of the property survey report process.

3.6 Returnable Containers

3.6.1 To hold down demurrage costs, Centers, to the extent possible, should not use vendor-owned containers for long-term storage of Materiels or products in the supply system. To ensure timely recovery of deposit and reduce expenditures for demurrage charges, Center SEMOs shall establish and maintain current and detailed control records on returnable containers acquired by NASA directly from vendors, including containers used in providing support to onsite contractors.

3.6.2 Supply Officers shall ensure the following factors are considered before exercising the option to obtain either returnable or nonreturnable containers:

a. Administrative details involved, such as bookkeeping and accounting necessary to account for returnable container items while in NASA's possession.

b. The advantages of procuring items in low-value, nonreturnable containers when administrative costs incurred in handling returnable containers would result in increased cost to the Government.

c. Possible loss or damage to the containers while in the Government's possession, thereby either precluding any possible refund or reducing the monetary return when the container is returned to the vendor.

d. The possibility of incurring demurrage charges that may equal the cost of the container itself.

e. Difficulties to be encountered in ensuring that returnable containers are returned to the proper vendors for credit.

f. Handling and transportation costs to be incurred by NASA for returning empty containers to the vendors.

g. Costs involved in disposal of nonreturnable containers.

h. The feasibility of acquiring and utilizing Government-owned containers.

3.6.3 The Supply Officer shall establish and maintain current, detailed control records for returnable containers.

a. Control records provide complete, accurate data of returnable container transactions from time of receipt until return to vendors.

b. Maintaining detailed individual records is optional on any returnable container requiring a monetary deposit of $25 or less when demurrage charges are not involved.

c. Although detailed records are optional for low-value containers, the Supply Officer shall ensure the return of the containers to appropriate vendors to obtain recovery of deposits to the greatest extent possible.

d. Low-value containers, such as drums, may be recorded by lot.

3.6.4 The Supply Officer shall ensure containers are identified as either vendor-owned or NASA-owned.

3.6.5 The Supply Officer shall ensure a suspense system is maintained for returnable containers. The containers should be returned to Supply so they can be returned to the vendors as quickly as possible to prevent unnecessary costs.