IND 105 Lesson #14

Demilitarization

DEMILITARIZATION

TLO 14 - Given the need to dispose of contract Government property requiring demilitarization, describe the process of demilitarization.ELOs:1. Identify contractual requirements for demilitarization.2. Identify the funding requirements for demilitarization.3. Recognize the regulations requiring demilitarization.4. Recognize the demilitarization codes.

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Demilitarization ELO 1

Define DemilitarizationFAR 52.245-1(a) “Demilitarization” means rendering a product unusable for, and not restorable to, the purpose for which it was designed or is customarily used (also cited in FAR 45.101).DFARS 252.245-7004 Reporting, Reutilization, and Disposal defines “demilitarization” as follows:

(1) “Demilitarization” means the act of eliminating the functional capabilities and inherent military design features from DoD personal property. Methods and degree range from removal and destruction of critical features to total destruction by cutting, tearing, crushing, mangling, shredding, melting, burning, etc.

FAR 52.245-1 & DFARS 252.245-7004

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Demilitarization ELO 1

Define Demilitarization cont.• DoDM 4160.28-V2 definition is: The act of eliminating the functional capabilities and inherent military design features from DoD personal property that requires certification and verification. • Methods and degree range from removal and destruction of critical features to total destruction by cutting, crushing, shredding, melting, burning, etc. • DEMIL is required to prevent property from being used for its originally intended purpose and to prevent the release of inherent design information that could be used against the United States. • DEMIL applies to material in both serviceable and unserviceable condition.

DoDM4160.28- V2

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DEMIL Called out in a Contract ELO 1

Examples of DEMIL that my be specifically called out in a contract: • Utilize Defense Logistic Agency Disposal Services• Special requirements for sensitive property• Direction to utilize a third contractor for special DEMIL

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Where in a contract, will you find DEMIL requirements or direction that may be specifically identified?• Section B CLIN• Section H• Statement of Work• Performance Work Statement

In some cases the performance of DEMIL may be a stand alone contract.

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DEMIL Called out in a Contract ELO 1

Funding for DEMIL ELO 2

The Contractor is responsible for demilitarization!The Government Role…

– PLCO (or Qualified Representative) shall witness the actual physical act of demilitarization

– PLCO shall Certify that DEMIL was accomplished in accordance with DoDM 4160.28

– Demilitarization must be witnessed and verified by a Government representative using DRMS Form 145 or equivalent.

– This shall be done in writing.

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Funding for DEMIL ELO 2

Funding Requirements for demilitarization• The Contractor may be entitled to an equitable adjustment if the

Contractor is required to demilitarize Government Property and the DEMIL is outside their normal performance capability.

Contractor Inventory Disposal & Disposition Instructions• The CO may require the Contractor to demilitarize the property prior to

shipment or disposal. In such cases, the Contractor may be entitled to an equitable adjustment under paragraph (i) of the Government Property Clause.

• Funding for demilitarization is via the contract or approval of the Contracting Officer.

FAR 52.245-1 (j)(7)(ii)

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DEMIL Requirements ELO3

Contractual Requirement for DEMILITARIZATION:

Disposition Instructions(ii) The CO may require the Contractor to demilitarize, which may result in a

request for equitable adjustment!

As prescribed in 245.107(e), use the following clause: 252.245-7004 Reporting, Reutilization, and Disposal.(DEC 2017).

FAR 52.245-1 (j)(7)

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DEMIL Requirements ELO3

Reporting, Reutilization, and Disposal.(DEC 2017)

(d) Demilitarization, mutilation, and destruction. If demilitarization, mutilation, or destruction of contractor inventory is required, the Contractor shall demilitarize, mutilate, or destroy contractor inventory, in accordance with the terms and conditions of the contract and consistent with Defense Demilitarization Manual, DoDM 4160.28, edition in effect as of the date of this contract. The plant clearance officer may authorize the purchaser to demilitarize, mutilate, or destroy as a condition of sale provided the property is not inherently dangerous to public health and safety.

DFARS 252.245-7004

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DEMIL Requirements ELO3

Reporting, Reutilization, and Disposal.(DEC 2017) (cont.)

(e) Classified Contractor inventory. The Contractor shall dispose of classified contractor inventory in accordance with applicable security guides and regulations or as directed by the Contracting Officer.

(f) Inherently dangerous Contractor inventory. Contractor inventory dangerous to public health or safety shall not be disposed of unless rendered innocuous or until adequate safeguards are provided.

DFARS 252.245-7004

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DEMIL Requirements ELO3

Reporting, Reutilization, and Disposal.(DEC 2017) (cont.)

(g) Contractor inventory located in foreign countries. Consistent with contract terms and conditions, property disposition shall be in accordance with foreign and U.S. laws and regulations, including laws and regulations involving export controls, host nation requirements, Final Governing Standards, and Government-to-Government agreements. The Contractor's responsibility to comply with all applicable laws and regulations regarding export-controlled items exists independent of, and is not established or limited by, the information provided by this clause.

DFARS 252.245-7004

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DEMIL Requirements ELO3

Reporting, Reutilization, and Disposal.(DEC 2017) (cont.)(j) Restrictions on purchase or retention of Contractor inventory.

(9) The following terms and conditions shall be included in sales contracts involving the demilitarization, mutilation, or destruction of property:

(i) Demilitarization, mutilation, or destruction ON Contractor or subcontractor premises. Item(s) ______ require demilitarization, mutilation, or destruction by the Purchaser. Insert item number(s) and specific demilitarization, mutilation, or destruction requirements for item(s) shown in Defense Demilitarization Manual, DoDM 4160.28-M, edition in effect as of the date of this contract. Demilitarization shall be witnessed and verified by a Government representative using DRMS Form 145 or equivalent.

DFARS 252.245-7004

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DEMIL Requirements ELO3

Reporting, Reutilization, and Disposal.(DEC 2017) (cont.)(ii) Demilitarization, mutilation, or destruction OFF Contractor or subcontractor

premises.(A) Item(s) ______ require demilitarization, mutilation, or destruction by the

Purchaser. Insert item number(s) and specific demilitarization, mutilation, or destruction requirements for item(s) shown in Defense Demilitarization Manual, DoDM 4160.28, edition in effect as of the date of this contract. Demilitarization shall be witnessed and verified by a Government representative using DRMS Form 145 or equivalent.

DFARS 252.245-7004

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DEMIL Requirements ELO3

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DEMIL Requirements ELO3

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DEMIL Requirements ELO3

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DEMIL Requirements ELO3

Reporting, Reutilization, and Disposal.(DEC 2017) (cont.)(B) Property requiring demilitarization shall not be removed, and title shall not pass to the Purchaser, until demilitarization has been accomplished and verified by a Government representative. Demilitarization will be accomplished as specified in the sales contract. Demilitarization shall be witnessed and verified by a Government representative using DRMS Form 145 or equivalent.(C) The Purchaser agrees to assume all costs incident to the demilitarization and to restore the working area to its present condition after removing the demilitarized property.

DFARS 252.245-7004

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DEMIL Requirements ELO3

Reporting, Reutilization, and Disposal.(DEC 2017) (cont.)(iii) Failure to demilitarize. If the Purchaser fails to demilitarize, mutilate, or destroy the property as specified in the contract, the Contractor may, upon giving 10 days written notice from date of mailing to the Purchaser–

(A) Repossess, demilitarize, and return the property to the Purchaser, in which case the Purchaser hereby agrees to pay to the Contractor, prior to the return of the property, all costs incurred by the Contractor in repossessing, demilitarizing, and returning the property;

FAR 52.245-1 & DFARS 252.245-7004

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DEMIL Requirements ELO3

Reporting, Reutilization, and Disposal.(DEC 2017) (cont.)(B) Repossess, demilitarize, and resell the property, and charge the defaulting Purchaser with all costs incurred by the Contractor. The Contractor shall deduct these costs from the purchase price and refund the balance of the purchase price, if any, to the Purchaser. In the event the costs exceed the purchase price, the defaulting Purchaser hereby agrees to pay these costs to the Contractor; or

DFARS 252.245-7004

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Daniel Powell v.s. U.S.1. Read the Court Case (provided as part of your reading assignment).2. Read the court case provided as part of your reading assignment.2. Analyze this court case. 3. Be prepared to answer questions highlighting the most important points.

(see homework instruction sheet)

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DEMIL Requirements ELO3

DEMIL Requirements ELO3

REPORTING, REUTILIZATION, AND DISPOSAL(12)(iv) If TSC is required, provide the DoD Demil/TSC Program office with a completed DLA Form 1822 End-Use Certificate (EUC) for the prospective buyer. Note: TSC assessments/EUCs are typically not required for scrap sales; and (12)(v) Upon TSC clearance (if required) of the prospective buyer, authorize the contractor to complete the sale, as applicable.

DFARS PGI 245.6

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DEMIL Requirements ELO3

REPORTING, REUTILIZATION, AND DISPOSAL(13) To the extent that demilitarization, mutilation, or destruction is required, the PLCO may authorize the contractor to perform such action as follows:

(i) Demilitarization, mutilation, or destruction by the contractor or buyer as a condition of sale; (ii) Shipment to a DoD disposal activity (contingent upon packing, crating, handling, and transportation funding), or (iii) Such other actions as are included in the terms and conditions of the contract.

DFARS PGI 245.6

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Security Assistance Transfers & FMS ELO 3

REPORTING, REUTILIZATION, AND DISPOSAL(14) Security assistance transfers or foreign military sales shall be conducted in accordance with the terms and conditions of the contract and consistent with Defense Security Cooperation Agency Manual 5105.38-M Security Assistance Management Manual.

So what are Foreign Military Sales (FMS)?

DFARS PGI 245.6

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Foreign Military Sales (FMS) ELO 3

Foreign Military Sales is a program that provides security assistance authorized by the Arms Export Control Act (AECA).

Under Section 3, of the AECA, the U.S. may sell defense articles and services to foreign countries and international organizations when the President formally finds that to do so will strengthen the security of the U.S. and promote world peace.

The Secretary of State determines which countries will have programs and the Secretary of Defense executes the program.

FMS is managed by Defense Security Cooperation Agency (DSCA) under the Security Assistance Management Manual www.samm.dsca.mil

DSCA 5105.38-M

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DEMIL Codes ELO4

DEMILITARIZATION Codes• Where does the Requirement for a DEMIL Code Come From?

– Defense Demilitarization Manual, DoD 4160.28-V2– “Demilitarization Codes to be Assigned to Federal Supply Items and Coding

Guidance”The Definition of a DEMIL Code is:• “A code assigned to DoD personal property. It indicates the degree of

required physical destruction, identifies items requiring specialized capabilities or procedures, and identifies items which do not require DEMIL but may require TSC. It is used throughout the life-cycle to identify control requirements required before release of DoD personal property from DoD control.”

• It is Placed in the Inventory Disposal Schedule(SF 1428), Block #16.

DoDM4160.28 -V2

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DEMIL Codes ELO4

• The Contractor typically takes care of DEMIL Coding even though it may not be a contractual requirement.

• Some Contractor’s Property Management Systems contain this data or it is available commercially via FEDLOG

• Others who may be involved include the PLCO, PCO, etc.

DoDM4160.28-V2

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DEMIL Codes ELO4

G USML or CCL Military Items – DEMIL required – ammunition and explosives (AE). This code applies to both unclassified and classified AE items.P USML Items – DEMIL required. Security classified items.F USML or CCL Military Items – DEMIL required. Item managers, equipment specialists, or product specialists must furnish special DEMIL instructions.D USML or CCL Military Items – DEMIL required. Destroy item and components to prevent restoration or repair to a usable condition.

USML-U.S. Munitions ListCCLI - Commerce Control List Items

TSC-Trade Security Controls

DoDM4160.28-V2

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DEMIL Codes ELO4

C USML or CCL Military Items – DEMIL required. Remove or demilitarize installed key point(s) items as DEMIL code “D.”E DoD DEMIL Program Office reserves this code for its exclusive-use only. DEMIL instructions must be furnished by the DoD DEMIL Program Office.B USML Items – Mutilation (MUT) to the point of scrap required worldwide.

Note: The term Mutilation (MUT) is “the act of making non-DEMIL required MLI or CCLI unfit for its intended purpose by cutting, tearing, scratching, crushing, breaking, punching, shearing, burning, neutralizing, etc.”

DoDM4160.28-V2

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DEMIL Codes ELO4

Q Commerce Control List Item (CCLI) – MUT to the point of scrap required outside the United States. Inside the United States, MUT is required when the DEMIL integrity code (IC) is “3” and MUT is not required when the DEMIL IC is “6.”A Items subject to the Export Administration Regulations (EAR) in parts 730-774 of Title 15, Code of Federal Regulations (CFR) (CCLI or EAR99) and determined by the DoD to present a low risk when released out of DoD control. No DEMIL, MUT, or end use certificate is required. May require an export license from DOC.

DoDM4160.28-V2

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DEMIL Codes ELO4

• When demilitarized surplus items are sold…– Before the sale is completed obtain a completed End Use Certificate

(DLA form 1822), from ALL buyers of any MLI – Munitions List Item and/or CCLI - Commerce Control List Items

DoDM4160.28-V2

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DEMIL Codes ELO4

Government employees may contact the following sources to obtain DEMIL Codes or more coding information

– PCARSS– FEDLOG (If your agency has access)– Defense Logistics Agency, Logistics Information Services– DoD Demilitarization Coding Management Office (DDCMO) Chief DSN

661-5379 Comm. 269-961-5379• DEMIL Challenge Team DSN 661-4710 Comm. 269-961-4710 (DLA

Disposition Services challenges)• DEMIL Review Team DSN 661-4710 Comm. 269-961-4710• DEMIL Coding Management Office (DCMO) DSN 661-4685 Comm.

(877) 352-2255 NOTE: DDCMO will even do site visits for DEMIL determinations 32

DEMILITARIZATION

TLO 14 - Given the need to dispose of contract Government property requiring demilitarization, describe the process of demilitarization.ELOs:1. Identify contractual requirements for demilitarization.2. Identify the funding requirements for demilitarization.3. Recognize the regulations requiring demilitarization.4. Recognize the demilitarization codes.

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