Guide
What is a Supply Discrepancy Report in Foreign Military Sales?
A is the purchaser's complaint to the U.S. Government about a delivery that does not match what the agreed: a shortage or overage, the wrong item, damage before the shipper released the shipment to the carrier, a documentation or billing error, or a service not performed as agreed. The resolves it and determines financial responsibility.
Which report a delivery problem needs depends on what went wrong. A shortage or overage, a wrong item, damage before the shipper released the shipment to the carrier, or a documentation or billing error is a supply discrepancy, and the purchaser reports it on a Supply Discrepancy Report. A quality defect goes on the same report: the Product Quality Deficiency Report is for Department of War users. Loss or damage caused by the carrier is a transportation discrepancy, which a U.S. representative reports on a Transportation Discrepancy Report. A Supply Discrepancy Report is disallowed if it arrives later than 12 months after delivery or passage of title, and only one worth $200 or more is reviewed for compensation.
What is a Supply Discrepancy Report?
In a system as large and diverse as the DoW logistics system, errors are bound to happen. The DoW, recognizing this fact, has set up a system to quickly validate the problem and respond to the international partner, while documenting trends to preclude recurrence of the discrepancy.
A discrepancy is a difference or variance from a standard. If something does not meet the standard in either quantity or quality, a discrepancy exists. The ’s intention is to resolve the discrepancy and ensure that every effort is made to provide the correct or service in the quantity and quality agreed to in the .
There are three categories of discrepancies. Each has unique reporting requirements for .
- Supply discrepancies, which capture a wide range of issues
- Product quality deficiencies, caused by the manufacturer
- Transportation discrepancies caused by damage or loss during shipment
may be submitted for materiel received in damaged condition if the damage is the result of improper preservation, packing, marking, loading, handling, or storage provided prior to title transfer. will not be accepted for damage caused by the carrier.
References
SAMM
- SAMM GLOSSARY/supply-discrepancy-report-sdr — Supply Discrepancy Report (SDR)
- SAMM C6.4.10.3 — Causes of Discrepancies.
- SAMM C6.4.10.4 — Supply Discrepancy Report Responses.
Related
Supply Discrepancy Report (SDR)
A process for international customers to file a complaint with the DoD for product loss, quality deficiencies, damage, and various other problems associated with the delivery of material under the Foreign Military Sales program.
SAMM Glossary, as of 12 September 2026
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Foreign Military Sales (FMS)
A process, authorized by the Arms Export Control Act, through which eligible foreign governments and international organizations may purchase defense articles, services, and training from the United States Government.
SAMM Glossary, as of 12 September 2026
Glossary entry →Open the manual’s entry → (opens in new tab)
Letter of Offer and Acceptance (LOA)
The legal instrument used by the USG to transfer itemized defense articles, defense services, and design and construction services to foreign partners.
When used under the authorities provided in the Arms Export Control Act for Foreign Military Sales, the LOA is a binding agreement signed by the USG and the foreign partner to transfer such articles and services.
When used under Building Partnership Capacity (BPC) authorities, the BPC LOA is not signed by the Benefitting Partner.
SAMM Glossary, as of 12 September 2026
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Implementing Agency (IA)
The military department or defense agency responsible for the execution of military assistance programs. With respect to FMS, the military department or defense agency assigned responsibility by the Defense Security Cooperation Agency to prepare an LOA and to implement an FMS case. The implementing agency is responsible for the overall management of the actions that will result in delivery of the materials or services set forth in the LOA that was accepted by a foreign country or international organization.
SAMM Glossary, as of 12 September 2026
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Defense Article (Foreign Assistance Act; Arms Export Control Act, not including commercial sales subject to the International Traffic in Arms Regulation)
Any weapon, weapons system, munition, aircraft, vessel, boat, or other implement of war;
SAMM Glossary, as of 12 September 2026
FMS — Foreign Military Sale
SAMM Acronyms, as of 12 September 2026
LOA — Letter of Offer and Acceptance
SAMM Acronyms, as of 12 September 2026
SDR — Supply Discrepancy Report
SAMM Acronyms, as of 12 September 2026
DSCA — Defense Security Cooperation Agency
SAMM Acronyms, as of 12 September 2026
Glossary entry →Defense Security Cooperation Agency (DSCA) →