Material support division, working capital fund - Air Force Link

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7–30 AFMAN 23-110 Volume 1 Part 3, Chapter 7 Base Maintenance will receive Exchange Price. If it is not repaired, the Host Base Maintenance will not receive exchange or MUP. 7.14.5.2. There are two options for incorporating MSD issues into HTSAs: 7.14.5.2.1. Option One. Tenant units supported by host base repair shops turn in all MSD assets unserviceable and receive no credit. If the host base maintenance function has the capability to repair the asset, it obtains the asset for repair at no cost using either activity code C (Contract Maintenance/In-House Repair/Unsatisfactory Report Exhibits) or R (routine maintenance) procedures found in volume 2, part 2. After completing the repair, the repair facility turns in the serviceable asset and receives Exchange Price. 7.14.5.2.2. Option Two. The tenant unit establishes accounts that the host repair shops could charge repair costs against. The tenant routes all MSD assets through the host base repair shops with all repair costs billed to the tenant's account. When the asset is turned in against the original document number, the tenant is credited based on the asset's condition. 7.14.5.3. HTSAs must indicate the funding appropriation for MSD issues. Host and tenant project fund management record and organization cost center records are set up accordingly. 7.14.6. Interim Contractor Support (ICS). 7.14.6.1. The MSD does not pay for the cost of depot repair of assets under ICS, nor does the MSD collect repair cost from the customer for assets under ICS. The MSD does not need to earn cash to pay for depot repair of these assets since there are no associated organic depot repair costs. Until the assets transition to organic depot repair, the Carcass Cost for these assets is computed assuming a depot repair cost of zero. This prevents MSD from collecting repair funds that are not required. Therefore, only the operational costs are recovered by MSD. Given this, D043 shows the LAC and Carcass Cost as equal until the asset transitions to organic depot repair. If any portion of an asset's repair is funded by ICS, the asset is treated as 100 percent ICS. If an ICS item is scheduled to transition to organic repair during a given fiscal year the LRC is established as a percentage of the contractor’s repair cost (dependent on when the item transitions). 7.14.6.2. ICS assets should eventually transition to depot repair. The assets will transition from ICS to depot organic repair only when it is organically supportable (with technical orders, support equipment, etc.). The requirements data system has visibility of the date this transition is to occur on an asset-by-asset basis. 7.14.6.3. When the asset transitions to organic depot repair, the Carcass Cost is computed using LAC minus the LRC. To equitably distribute a repair cost during transition, a time-phased depot repair cycle is used to determine how much of the repair is considered depot and how much is considered ICS. This leads to a partial depot repair cost as the asset transitions. The Carcass Cost for the fiscal year after ICS assets transition reverts to the organic depot repair cost instead of zero. 7.14.7. Loans. 7.14.7.1. An MSD asset may only be loaned to activities for the purposes specified in DOD 7000.14R, Volume 2B, Chapter 55, and volume 1, part, 1, chapter 10 (Soon to be Volume 3, Part 1, chapter 9, Section 9G). Loans must be for reverse engineering, sample parts, and/or if in the best interest of the SMAG. Each loan shall be approved by the accountable officer, wholesale item manager, and the Source of Supply Loan Control Office and forwarded to HQ AFMC/LGI for final approval consideration. A loan shall not exceed one year from date of approval. At the
AFMAN 23-110 Volume 1 Part 3, Chapter 7 end of a year, if the loaned asset is needed for longer, another waiver request must be sent to HQ AFMC/LGI for approval. 7.14.7.1.1. Each request shall include a description of the asset, asset position on the latest computation cycle, intended purpose of the loan, price, condition, and anticipated return date. Also, a certification must be included with the request that declares the loan of the asset will not jeopardize the capability of MSD to fully support national defense requirements. This certification should be obtained from the wholesale item manager of the asset. 7.14.7.1.2. At the time of the return of the asset, the recipient shall be required to pay any transportation, packing, crating, and handling costs associated with the return of the loaned asset to government custody as well as any costs necessary to restore the asset to its original condition or to pay for any asset the recipient does not return within the approved period of the loan. 7.14.7.2. Any contract or loan agreement providing for loan of AFMC-managed, stocklisted, nonexcess property must contain a provision for the delivery and return of the asset. The asset due-in should be detailed in the J041 system and also shown on the asset computation as a due-in. It also should appear as an on-loan quantity in the Item Manager Wholesale Requisition Processing (IMWRP) D035A system. 7.14.7.3. MSD will not buy any assets specifically for the purpose of lending to a contractor or DOD funded activity. The rationale for this is that a sale will not take place at any time, and DWCF cash is depleted. Only those assets already available in supply may be loaned to a contractor or DOD funded activity. 7.14.7.4. Affected wholesale item managers must consider the impact of loaning an asset versus having one available to sell. While on loan the asset shall be counted as an MSD inventory asset on loan to others. 7.14.7.5. When it is determined that an asset already on loan is needed for an additional period or for use on another contract, the originator of the initial loan must resubmit a new loan package. There will be no cross-loaning between contracts without prior approval from HQ AFMC/LGI. 7.14.8. Local Purchase/Local Repair. 7.14.8.1. These options are not considered standard business practices within the SMAG. If these options are elected, they must follow the guidance of volume 1, part 1, chapter 8, section 8A. The wholesale item manager must provide an MSD funds cite. There will be no circumstances where customer funds will be used for these actions. 7.14.9. Product Improvement. 7.14.9.1. The Improved Item Replacement Program (IIRP) combines the preferred spares and 100 percent replacement program into one integrated effort. IIRP offers the Air Force a way to correct deficiencies, replace obsolete assets, and/or introduce, through technology insertion, stateof-the-art components such as LRUs and SRUs that are stocked, stored, and issued as assets of supply. The IIRP covers both installs and spares in support of the installed assets. IIRP assets must be a form, fit, and function replacement for the old asset. 7.14.9.2. Replacement of assets under an IIRP effort is done on an attrition basis either at the base or during depot maintenance. Capability upgrades or improvements that require structural (Group 7–31
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Material support division, working capital fund - Air Force Link

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