Asset Managers and Demilitarization

Demilitarization codes are used throughout an asset’s life cycle to identify control requirements necessary before the release of the item outside of Department of Defense (DoD) control. Demilitarization (DEMIL) refers to the act of eliminating functional capabilities. And inherent military design features that can range from the removal and destruction of critical features to the total destruction by cutting, crushing or using other methods. 

Demilitarization is required to prevent items from being used for their originally intended purpose and to prevent the release of inherent design information that may be used against the United States. Ref. DODM 4160.28, Vol 1.

A recent Government Accountability Office report, GAO 22-105251, found inconsistent application of demilitarization codes for Government property under their review.

The GAO review found 24 of 437 national stock number samples were not consistent in their application of the DEMIL code. Further, 13 of the 24 did NOT have documentation explaining the rationale for using different codes from the standard.

Provided as an example, the review found the Army designated some container handling vehicles as necessitating no demilitarization, when in fact, significant demilitarization is required for said item.

DEMIL codes indicate the degree of required physical destruction, identifies items requiring specialized capabilities or procedures, and identifies items which do not require DEMIL but may require Trade Security Controls. The codes are used throughout the asset’s life-cycle to identify control requirements required before release from DoD control. 

How does this apply to us asset management professionals?

  • Asset managers need to ensure their organization’s disposition process includes verify the asset’s DEMIL code is adequate before submitting for disposition instructions. 
  • Asset managers need to ensure the correct DEMIL code is used for each item being disposition. By using the correct DEMIL code, the organization isn’t assuming more risk (by failing to remove critical features when applicable), or incurring excessive cost (by paying for unnecessary mutilation or destruction of items that don’t require it). Sometimes organizations choose to “over-DEMIL” property, which can lead to higher overhead costs, and lessens the monetary amount we earn back in terms of scrap proceeds.

According to the Defense Logistics Agency, the following DEMIL codes are listed as the Highest Severity to the Lowest Severity in DEMIL coding, along with a description of each code.

CodeDescription
GUSML or CCL Military Items- DEMIL required- ammunition and explosives (AE). This code applies to both unclassified and classified AE items.
PUSML Items- DEMIL required. Security Classified Items.
FUSML or CCL Military Items- DEMIL required. Item managers, equipment specialists, or product specialist must furnish special DEMIL instructions.
DUSML or CCL Military Items- DEMIL required. Destroy item and components to prevent restoration or repair to a usable condition.
CUSML or CCL Military Items- DEMIL required. Remove or demilitarize installed key points(s) items as DEMIL code “D”.
EDOD DEMIL Program Office reserves this code for its exclusive – use only. DEMIL instructions must be furnished by the DoD DEMIL Program Office.
BUSML Items – Multilation (MUT) to the point of scrap required worldwide.
QCommerce 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 Intergrity Code (IC) is “3” and MUT is not required when the DEMIL IC is “6”.
AItems subject to the Export Administration Regulations (EAR) in parts 773-74 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

Failure to use the correct DEMIL code can have disastrous consequences. Misidentifying an asset can lead to improper disposition, availability and usage of said property by parties disallowed from obtaining it. From a security standpoint, adversaries may seek to obtain said assets to reverse engineer systems to compete against us or cause us harm. 

Another potentially damaging consequence of mis-identifying assets requiring demilitarization is that assets may be dangerous to disposition, scrap and/or recycle whenever special handling instructions apply. Meaning, the asset may cause harm if mishandled.

DLA offers training ranging from classroom instruction to computer based training, tailored courses and more, to help your organization meet the needs of the Demilitarization program. 

Looking to learn more? Consider checking out the following resources:

  • DOD MANUAL 4160.28, VOLUME 1 (DEFENSE DEMILITARIZATION: PROGRAM ADMINISTRATION)
  • DOD Instruction 5000.64 Accountability and Management of DoD. Equipment and Other Accountable Property
  • DOD Manual 4160.21 Defense Materiel Disposition: Disposition Guidance and Procedures
  • DOD Manual 4160.28 Volume 1 Defense Demilitarization: Program Administration 
  • DOD Manual 4160.28 Volume 2 Defense Demilitarization: DEMIL Coding
  • DOD Manual 4160.28 Volume 3 Defense Demilitarization: Procedural Guidance

Is a review of demilitarization actions part of your Defense contract closeout efforts? Consider the following Contract Closeout tips.

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