DAOD 3013-0, Surplus Materiel

Identification

Date of Issue: 2012-02-28

Application: This DAOD is a directive that applies to employees of the Department of National Defence (DND employees) and an order that applies to officers and non-commissioned members of the Canadian Forces (CF members).

Supersession: CFAO 36-53, Materiel Disposal

Approval Authority: Assistant Deputy Minister (Materiel) (ADM(Mat))

Enquiries:


Definitions

Centrally-managed materiel (matériel géré au niveau central)
Any materiel that is:
  • assigned a supply manager and a supply manager code, other than locally-managed materiel; and
  • normally stocked nationally at depots and bases.
Controlled goods (marchandises contrôlées)
Has the same meaning as in DAOD 3003-0, Controlled Goods.
Locally-managed materiel (matériel géré au niveau local)
Any materiel that is managed and purchased by a base or wing commander or unit commanding officer using locally allocated funds. It does not include any materiel that is subject to a restriction under the Defence Production Act or the Controlled Goods Regulations, or is otherwise centrally managed in accordance with A-LM-007-014/AG-001, Canadian Forces Supply Manual, Volume 3, CFSS Supply Processes, Chapter 16, Materiel Identification.
Major support system (système de soutien principal)
Any support ship, armoured support vehicle, transport aircraft or other similar materiel provided as a support system for the CF.
Major weapon system (système d’arme principal)
Any destroyer, submarine, armoured land combat vehicle, artillery system, combat aircraft or other similar materiel provided as a weapon system for the CF.
Materiel managed by a level one advisor (matériel géré au niveau du conseiller de niveau un)
Any materiel procured centrally by:
  • a level one advisor; or
  • an organization within the Assistant Deputy Minister (Material) group using the funds of another level one advisor.
Minor nationally-managed materiel (matériel accessoire géré au niveau national)
Any replacement, spare part or other centrally-managed materiel that is managed at the NDHQ level, but is not a major support system or major weapon system.
Surplus materiel (matériel excédentaire)
Any materiel, including any major support system, major weapon system, consumable, replacement or spare part, accountable advance spare, government furnished overhaul spare, scrap, ammunition or weapon, that an appropriate office holder has determined is no longer required by the DND or the CF.

Abbreviations

Table of Abbreviations

This DAOD contains the following abbreviations:

Abbreviation Complete Word or Phrase
ADM(Fin CS) Assistant Deputy Minister (Finance and Corporate Services)
ADM(Mat) Assistant Deputy Minister (Materiel)
CFSS Canadian Forces Supply System
CTAT Controlled Technology Access and Transfer
DDSAL Director Disposal, Sales, Artifacts and Loans
DGAEPM Director General Aerospace Equipment Program Management
DGLEPM Director General Land Equipment Program Management
DGMEPM Director General Maritime Equipment Program Management
DGMSSC Director General Materiel Systems and Supply Chain
DMPP Director Materiel Policy and Procedures
DRMIS Defence Resource Management Information System
FMS Fleet Management System
L1 advisor level one advisor
VCDS Vice Chief of the Defence Staff

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Policy Direction

Context

Under section 2 of the National Defence Act, materiel consists of all public property, other than real property, immovables and money, provided for the CF or for any other purpose under that Act, and includes any vessel, vehicle, aircraft, animal, missile, arms, ammunition, clothing, stores, provisions or equipment.

All materiel is eventually declared to be surplus materiel when it becomes obsolete or unfit for its intended purpose in the DND or the CF or is no longer needed for any purpose.

Under the Surplus Crown Assets Act, the Crown Assets Distribution Directorate of Public Works and Government Services Canada is responsible for:

The disposal of any surplus materiel as contributions to the Computers for Schools Program is managed by Industry Canada.

This DAOD and DAOD 3013-1, Disposal of Surplus Materiel, do not deal with real property or immovables as those terms are defined in section 2 of the Federal Real Property and Federal Immovables Act. See the DAOD 3017 series for the transfer of surplus and non-surplus materiel to other government departments.

Policy Statement

The DND and the CF are committed to efficiently carrying out the disposal of surplus materiel in a manner that:

Requirements

The DND and the CF shall:

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Authorities

Authority Table

The following table identifies the authorities associated with this DAOD:

The … has or have the authority to …

Minister of National Defence

  • approve the disposal of surplus materiel at less than market value or to a limited market if the disposal serves the public interest more than the sale to the public at market value;
  • approve the donation of any surplus materiel if the donation serves the public interest more than the sale to the public at market value; and
  • delegate materiel disposal authority within the DND and the CF.

VCDS

  • declare major support systems and major weapon systems to be surplus materiel;
  • determine and approve alternative applications of major support systems and major weapon systems; and
  • approve the distribution of the proceeds from the sale of surplus materiel.

ADM(Mat)

  • approve policy and guidelines for the disposal of surplus materiel;
  • approve the disposal of surplus materiel by donation in accordance with ministerial authority;
  • approve the disposal of surplus materiel by gratuitous transfer;
  • approve, in accordance with Part 2 of the Defence Production Act and DAOD 3003-1, Management, Security and Access Requirements Relating to Controlled Goods, the disposal of controlled goods declared to be surplus materiel;
  • declare, in accordance with A-FN-100-002/AG-006, Delegation of Authorities for Financial Administration for the Department of National Defence (DND) and the Canadian Forces (CF), centrally-managed materiel greater than $40M, other than major support systems and major weapons systems, to be surplus materiel, and approve its disposal in accordance with subsection 3(1) of the Surplus Crown Assets Act;
  • act as the disposal plan authority for major support systems and major weapon systems; and
  • delegate materiel disposal authority to applicable equipment program management personnel within ADM(Mat) in accordance with A-FN-100-002/AG-006.

ADM(Fin CS)

  • oversee policy interpretation and guidance to senior management regarding the financial recording of the disposal of surplus materiel.

L1 advisors other than ADM(Mat)

  • declare minor nationally-managed materiel to ADM(Mat) to be surplus materiel and delegate this authority to DND employees and CF members within their organizations.

DGMSSC

  • approve policy for the disposal of surplus materiel;
  • oversee program delivery for the disposal of surplus materiel; and
  • execute the disposal of major support systems and major weapon systems.

DGLEPM,
DGAEPM and DGMEPM

  • advise the VCDS and the DGMSSC on the disposal or alternative applications of surplus major support systems and major weapon systems;
  • act as a disposal plan authority for materiel managed by an L1 advisor in accordance with A-FN-100-002/AG-006; and
  • declare minor nationally-managed materiel to be surplus materiel and delegate materiel disposal authority to applicable equipment program management personnel in their divisions in accordance with the A-FN-100-002/AG-006.

base, wing, station, contingent and depot commanders and unit commanding officers

  • in accordance with A-FN-100-002/AG-006:
    • declare locally-managed materiel to be surplus materiel;
    • execute disposal of centrally-managed materiel if requested by a disposal plan authority; and
    • delegate materiel disposal authority to their staff officers.

DDSAL

  • oversee program delivery, including the drafting of policy and procedures for the disposal of surplus materiel;
  • act, in accordance with A-FN-100-002/AG-006, as the disposal manager for centrally-managed materiel greater than $15M, including major support systems and major weapon systems;
  • with ministerial approval, dispose of, by a “cost avoidance” donation, any surplus materiel if the estimated cost of disposal exceeds the expected revenue that would be generated through sale;
  • represent ADM(Mat) on disposal-related issues; and
  • advise DND employees and CF members on matters related to the disposal of surplus materiel.

DMPP

  • oversee materiel management policy development and promulgation.

CTAT Office

  • advise the DND and the CF on the disposal of controlled goods declared to be surplus materiel, including the securing of transfer authorizations from foreign governments.

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References

Source References

Related References