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Go to DFARS Change Notices, to view the details of the changes to this subpart.

(Revised October 25, 2000)

PART 1--GENERAL

E-100 Scope.
This appendix established the DoD Spare Parts Breakout Program and provides uniform policies and procedures for management and conduct of the program within and between the departments and agencies.

E-101 Applicability.

E-102 General. E-103 Definitions.

E-103.1 Acquisition method code (AMC).
A single digit numeric code, assigned by a DoD activity, to describe to the contracting officer and other Government personnel the results of a technical review of a part and its suitability for breakout.

E-103.2 Acquisition method code conference.
A conference which is generally held at the contractor's facility for the purpose of reviewing contractor technical information codes (CTICs) and corresponding substantiating data for breakout.

E-103.3 Acquisition method suffix code (AMSC).
A single digit alpha code, assigned by a DoD activity, which provides the contracting officer and other Government personnel with engineering, manufacturing, and technical information.

E-103.4 Actual manufacturer.
An individual, activity, or organization that performs the physical fabrication processes that produce the deliverable part or other items of supply for the Government. The actual manufacturer must produce the part in-house. The actual manufacturer may or may not be the design control activity.

E-103.5 Altered item drawing.
See current version of DoD STD-100, paragraphs 201.4.4 and 703.

E-103.6 Annual buy quantity.
The forecast quantity of a part required for the next 12 months.

E-103.7 Annual buy value (ABV).
The annual buy quantity of a part multiplied by its unit price.

E-103.8 Bailment.
The process whereby a part is loaned to a recipient with the agreement that the part will be returned at an appointed time. The government retains legal title to such material even though the borrowing organization has possession during the stated period.

E-103.9 Breakout.
The improvement of the acquisition status of a part resulting from a technical review and a deliberate management decision. Examples are-

E-103.10 Competition.
A contract action where two or more responsible sources, acting independently, can be solicited to satisfy the Government's requirement.

E-103.11 Contractor technical information code (CTIC).
A two digit alpha code assigned to a part by a prime contractor to furnish specific information regarding the engineering, manufacturing, and technical aspects of that part.

E-103.12 Design control activity.
A contractor or Government activity having responsibility for the design of a given part, and for the preparation and currency of engineering drawings and other technical data for that part. The design control activity may or may not be the actual manufacturer. The design control activity is synonymous with design activity as used by DoD STD-100.

E-103.13 Direct purchase.
The acquisition of a part from the actual manufacturer, including a prime contractor who is an actual manufacturer of the part.

E-103.14 Engineering drawings.
See current versions of DoD STD-100 and DoDD 1000.

E-103.15 Extended dollar value.
The contract unit price of a part multiplied by the quantity purchased.

E-103.16 Full and open competition.
A contract action where all responsible sources are permitted to compete.

E-103.17 Full screening.
A detailed parts breakout process, including data collection, data evaluation, data completion, technical evaluation, economic evaluation, and supply feedback, used to determine if parts can be purchased directly from the actual manufacturer(s) or can be competed.

E-103.18 Immediate (live) buy.
A buy which must be executed as soon as possible to prevent unacceptable equipment readiness reduction, unacceptable disruption in operational capability, and increased safety risks, or to avoid other costs.

E-103.19 Life cycle buy value.
The total dollar value of all acquisitions that are estimated to occur over a part's remaining life cycle.

E-103.20 Limited competition.
A competitive contract action where the provisions of full and open competition do not exist.

E-103.21 Limited screening.
A parts breakout process covering only selected points of data and technical evaluations, and should only be used to support immediate buy requirements (see
E-301.3).

E-103.22 Manufacture.
The physical fabrication process that produces a part, or other item of supply. The physical fabrication processes include, but are not limited to machining, welding, soldering, brazing, heat treating, braking, riveting, pressing, chemical treatment, etc.

E-103.23 Prime contractor.
A contractor having responsibility for design control and/or delivery of a system/ equipment such as aircraft, engines, ships, tanks, vehicles, guns and missiles, ground communications and electronics systems, and test equipment.

E-103.24 Provisioning.
The process of determining and acquiring the range and quantity (depth) of spare and repair parts, and support and test equipment required to operate and maintain an end item of materiel for an initial period of service.

E-103.25 Qualification.
Any action (contractual or precontractual) that results in approval for a firm to supply items to the Government without further testing beyond quality assurance demonstrations incident to acceptance of an item. When prequalification is required, the Government must have a justification on file-

E-103.26 Replenishment part.
A part, repairable or consumable, purchased after provisioning of that part, for: replacement; replenishment of stock; or use in the maintenance, overhaul, and repair of equipment such as aircraft, engines, ships, tanks, vehicles, guns and missiles, ground communications and electronic systems, ground support, and test equipment. As used in this appendix, except when distinction is necessary, the term "part" includes subassemblies, components, and subsystems as defined by the current version of
MIL-STD-280.

E-103.27 Reverse engineering.
A process by which parts are examined and analyzed to determine how they were manufactured, for the purpose of developing a complete technical data package. The normal, expected result of reverse engineering is the creation of a technical data package suitable for manufacture of an item by new sources.

E-103.28 Selected item drawing.
See current version of DoD-STD-100, paragraph 201.4.5.

E-103.29 Source.
Any commercial or noncommercial organization which can supply a specified part. For coding purposes, sources include actual manufacturers, prime contractors, vendors, dealers, surplus dealers, distributors, and other firms.

E-103.30 Source approval.
The Government review that must be completed before contract award.

E-103.31 Source control drawing.
See the current version of DoD-STD-100, paragraph 201.4.3.

E-103.32 Technical data.
Specifications, plans, drawings, standards, purchase descriptions, and such other data to describe the Government's requirements for acquisition.

E-104 General policies.

E-105 Responsibilities.
PART 2--BREAKOUT CODING

E-200 Scope.
This part provides parts breakout codes and prescribes responsibilities for their assignment and management.

E-201 Coding.
Three types of codes are used in the breakout program.

E-201.1 Acquisition method codes.
The following codes shall be assigned by DoD activities to describe the results of the spare parts breakout screening:

E-201.2 Acquisition method suffix codes.
The following codes shall be assigned by DoD activities to further describe the acquisition method code. Valid combinations of AMCs/AMSCs are indicated in paragraphs (a) through (z) of this subsection and summarized in Exhibit I. MIL-STD-2175. If one source has such castings and cannot provide them to other sources, AMCs 3, 4, or 5 are valid. If at least two sources have such castings or they can be provided to other sources AMCs 1 or 2 or valid. E-201.3 Contractor technical information codes.
The following two digit alpha codes shall be used by contractors, when contractor's assistance is requested. These codes are assigned in accordance with the current version of MIL-STD-789 and shall be considered during the initial assignment of an AMC/AMSC. For spare parts breakout, requirements for contractor assistance through CTIC submission shall be accomplished as stated in Part 4 of this appendix. Each CTIC submitted by a contractor must be accompanied by supporting documentation which justifies the proposed code. These codes and supporting documentation, transmitted by DD Form 1418, Contractor Technical Information Record, and DD Form 1418-1, Technical Data Identification Checklist, are useful not only for code assignment during acquisition coding conferences, but also for personnel conducting both full and limited screening of breakout candidates. Personnel conducting full and limited screening of breakout candidates should use the supporting documentation provided with CTICs as a source of information. However, they should not allow this information to substitute for careful analysis and further investigation of the possibilities of acquiring a part through competition or by direct purchase. The definitions for CTICs are- MIL-STD-2175) and similar type forgings. The process of developing and proving the acceptability of high-integrity castings and forgings requires repetitive performance by a controlled source. Each casting or forging must be produced along identical lines to those which resulted in initial acceptability of the part. (The contractor shall furnish a list of known sources for obtaining castings/forgings with this code.) E-202 Assignment of codes.
The purpose of AMC/AMSC assignments is to provide the best possible technical assessment of how a part can be acquired. The technical assessment should not be based on issues such as: are the known sources actual manufacturers, or are there two actual manufacturers in existence; but rather on factors such as the availability of adequate technical data, the Government's rights to use the data, technical restrictions placed on the hardware (criticality, reliability, special testing, master tooling, source approval, etc.) and the cost to breakout vice projected savings. In cases where there is additional technical information which affects the way a part can be acquired, it should be made available to the contracting officer, with the AMC/AMSC. Concerning the assignment of AMCs and AMSCs, it is DoD policy that- E-203 Improving part status. E-204 Communication of codes.

E-204.1 Communication media.
Use the Federal catalog program formats, set forth in DoD Manual 4100.39-M, Defense Integrated Data System (DIDS) Procedural Manual, communication media and operating instructions as augmented by this appendix to disseminate AMCs and AMSCs.

E-204.2 Responsibilities.

(3) Perpetuate the codes in all subsequent Federal catalog program transactions; e.g., entry of new NSNs and Federal supply code (FSC) changes; and
PART 3--IDENTIFICATION, SELECTION, AND SCREENING OF PARTS

E-300 General.
This part sets forth procedures for the identification, selection, and screening of parts.

E-301 Identification and selection procedures.

E-301.1 Parts entering the inventory.
The breakout process should begin at the earliest possible stage of weapon systems acquisition. Generally, a provisioned part will require subsequent replenishment. Provisioning or similar lists of new parts are, therefore, the appropriate bases for selecting parts for screening. This is not to imply that breakout must be done on all items as part of the provisioning process. Priorities shall be applied to those parts offering the greatest opportunity for breakout and potential savings. The major factors in making this determination are-

E-301.2 Annual buy forecasts.
Annually, lists shall be prepared that identify all parts projected for purchase during the subsequent 12-month period. Priority should be given to those parts with the greatest expected return given their annual buy value, life cycle buy value, and likelihood of successful breakout, given technical characteristics such as design and performance stability and the availability of technical data. Parts with an expired suspense date or a suspense date which will expire during the forecast period (see E-203(b)), need only be subjected to the necessary steps of the full screening procedure (see E-303). Parts with a valid code that will not expire during the forecast period need not be screened. Parts coded 0O shall be selected for full screening.

E-301.3 Immediate buy requirements.
An immediate buy requirement will be identified by the user or the item manager in consonance with department/agency regulations. When an immediate buy requirement meeting the screening criteria (see E-104(b)) is generated for a part not assigned a current AMC/AMSC, the part shall be promptly screened in accordance with either the full or limited screening procedures (see E-303 and E-304).

E-301.4 Suspect AMC/AMSC.
Whenever an AMC/AMSC is suspected of being inaccurate by anyone, including the contracting officer, a rescreening shall be conducted for that part. Suspect codes include codes composed of invalid combinations of AMCs and AMSCs, those which do not truly reflect how a part is actually being acquired, and those suspected of being more restrictive than necessary for the next buy.

E-302 Screening.

E-303 Full screening procedures. E-303.1 Data collection phase (step 1). E-303.2 Data evaluation phase (steps 2-14). E-303.3 Data completion phase (steps 15-21). E-303.4 Technical evaluation phase (steps 22-37). (2) Certain manufacturing conditions may reduce the field of potential sources. However, these conditions do not justify the restriction of competition by the assignment of restrictive AMCs for the following reasons-- E-303.5 Economic evaluation phase (steps 38-56). E-303.6 Supply feedback phase (steps 57-65). E-304 Limited screening procedures.
PART 4--CONTRACTOR'S ASSISTANCE

E-400 General.

E-401 Contractor's technical evaluation procedures.
PART 5--REPORTING SYSTEM

E-500 General.
This part prescribes reports regarding the breakout program which cannot be obtained from other sources. These reports are used to evaluate the effectiveness of breakout programs, establish a baseline for all spare part acquisitions, and identify trends in spare parts acquisition.

E-501 Reports.

E-502 Reporting procedures. E-503 Reporting instructions.
EXHIBIT I--VALID AMC/AMSC COMBINATIONS
Acquisition Method Code (AMC)
AMSC
0
1
2
3
4
5
             
A
X
o
o
o
o
o
             
B
X
o
o
o
o
o
             
C
X
o
o
o
o
o
             
D
X
X
X
o
o
o
             
G
X
o
o
X
X
X
             
H
X
o
o
o
o
o
             
K
X
o
o
o
o
o
             
L
X
o
o
o
o
o
             
M
X
o
o
o
o
o
             
N
X
o
o
o
o
o
             
O
o
X
X
X
X
X
             
P
X
o
o
o
o
o
             
Q
X
o
o
o
o
o
             
R
X
o
o
o
o
o
             
S
X
o
o
o
o
o
             
T
X
o
o
X
X
X
             
U
X
o
o
o
o
o
             
V
X
o
o
o
o
o
             
Y
X
o
o
o
o
o
             
Z
X
o
o
o
o
o
 
o = VALID COMBINATION
X = INVALID COMBINATIONS

EXHIBIT II--FULL SCREENING DECISION PROCESS SUMMARY
FLOW CHART

NOTE: Copies of Exhibit II can be obtained from: Defense Acquisition Regulations System, OUSD(AT&L), 3062 Defense Pentagon, Washington, DC 20301-3062; datafax (703) 602-0350.

EXHIBIT III--LIMITED SCREENING DECISION PROCESS SUMMARY
FLOW CHART

EXHIBIT IV--SPARE PARTS BREAKOUT SCREENING REPORT

SPARE PARTS BREAKOUT SCREENING REPORT
 
Report Activity ______________ Fiscal Year __________________ Period Ending ___________________
N U M B E R O F N S N s
AMC/AMSC
LIMITED SCREENING
FULL SCREENING
TOTAL SCREENING
 
*1G Only

1

**2G Only

2

3

4

5

       
 
TOTAL
 
 
  SPARE PARTS BREAKOUT PROGRAM COSTS $_____________
* Excluded from AMC 1 data
** Excluded from AMC 2 data

EXHIBIT V--SPARE PARTS ACQUISITION REPORT

SPARE PARTS ACQUISITION REPORT
 
Report Activity______________ Fiscal Year_____________ Period Ending___________________
 
P U R C H A S E M A D E
AMC/AMSC
NUMBER OF NSNs
EXTENDED DOLLAR VALUE
 
*1G Only

1

**2G Only

2

3

4

5

     
   
TOTAL
 
    SPARE PARTS BREAKOUT PROGRAM SAVINGS OR COST AVOIDANCES $______________
 
* Excluded from AMC 1 data
** Excluded from AMC 2 data

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