b. Distribution Plan Authorization.
(1) DPAs are generated and distributed DFAMS based on DESC indefinite quantity contracts. DPAs
are structured by DER. DPA is used for product codes and to outline contract data, quantitative requirements,
ordering limitations and the authorized boundaries used by DER to initiate SIOATHs.
(2) The DESC-O monitors contracts funded by DESC, prepares and controls orders for ocean-going
tankers with fuel acceptance at FOB origin, unless delegated to the DER. FOB origin is when the government
accepts the product at the source (refinery) and then provides the transportation to the user. DERs control all
a. Funds are reserved, committed, and obligated in DFAMs to cover orders for petroleum from
contractors. DPAs are initially funded at the minimum guaranteed price and amount. The actual amount may
fluctuate. In the last quarter of the contract the DESC-O will add the remaining finds via an amendment.
b. DPAs may be amended to ensure adequate petroleum supply. If monthly liftings exceed projected
monthly lifting by more than 10 percent the DESC-O must promptly reconcile the problems with DERs.
c. An automated control record, DPA Control Record, is generated by the DFAMS data bank. The
DESC-O certifies DPA data.
DFAMS generated DPA and SIOATH control sheets, status reports, and contract status inquiries are used to
monitor and control quantities on order. DFAMS ensures the total DPA dollar value and contract quantity are not
exceeded. When necessary, DERs may request an increase in quantity from the DESC-O but must justify why. A
DPA CLIN quantity may be increased if:
a. Another CLIN of the same contract and product is reduced by a quantity that offsets the increased
b. The increased quantity does not cause the total contract quantity or dollars to be exceeded.
c. The contractor agrees to overlift and underlift line items.
d. In emergencies and if normal procedures fail, the DERs may request an increase in quantity from the
DESC-O. The DERs will include why an increase is needed. Such as: