What does DMSMS mean?

DMSMS stands for Diminishing Manufacturing Sources and Material Shortages. It is the loss or impending loss of manufacturers or suppliers of items, raw materials, or software. In other words, DMSMS is obsolescence. DMSMS occurs when companies (at any level of the supply chain) that make products, raw materials, or software stop doing so or are about to stop. DMSMS issues can occur for various reasons, such as technological advancements, shifts in market demand, regulatory changes, or a manufacturer’s strategic business decision.

Where can contractors find DMSMS requirements?

DMSMS requirements are typically found in prime contracts. Specifically, a Statement of Work (“SOW”) can describe DMSMS requirements such as: a DMSMS Management Plan, a Bill of Materials, Health Status Reports, End of Life Notices, and various other requirements to mitigate DMSMS risks. The contract may use Contract Data Requirements Lists (“CDRLs”) to specify the content of deliverables, the inspection and acceptance process, and the frequency of delivery (e.g., the Contractor must deliver a Health Status Report “monthly” or an End of Life Notice “as required”).

Below are descriptions of these DMSMS concepts:

What are the important DMSMS resources?

Below are key policies on DMSMS that also include recommended contract language:

1 – Source: Robin Brown, Under Secretary of Defense Research & Engineering, DMSMS & Parts Management Program (Apr. 23, 2024) (ndia.dtic.mil/wp-content/uploads/2024/dla/Tue_Breakout_DMSMS_PMP.pdf).

DoD Instruction 4140.01 Vol. 3 recommends 18 potential courses of action for the Department of Defense (“DOD”) to consider when trying to resolve DMSMS issues, such as encouraging the existing source to continue production, making a life of type buy, converting design specifications to performance-based specifications, etc.

What risks does DMSMS pose to contractors?

What should contractors do to mitigate DMSMS risks?

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