Disposition of Failed Items

TB 10-4610-239-24

(3) Non-direct exchange (Non-DX) claim items. When the warranted item is not handled through direct exchange

(DX) the unit prepares and sends a completed DA Form 2402 (with exhibit) and DA Form 2407 to the WARCO. The office

then deals with the DA Form 2407 as follows:

(a) Send copy #1, #2, and #5 to: Commander, U.S. Army Troop Support Command, ATTN: AMSTR-MOF,

4300 Goodfellow Boulevard, St. Louis, MO 63120-1798. One of these copies will go to the Item Manager to show a

supply demand.

(b) Keep copy #3 for 180 days (with exhibit and DA Form 2402) unless you are instructed differently. If you

receive no instructions after 90 days, contact: Commander, U.S. Army Troop Support Command, ATTN: AMSTR-MEPN,

4300 Goodfellow Boulevard, St. Louis, MO 63120-1798, Telephone Number: 314-263-9393 for information.

kept, at most, for 180 days or until you get notice that the claim has been honored.

(4) DX claim items. When the warranted item is handled through DX, the unit starting the claim action fills out the

same forms and deals with them the way they do for a Non-DX item except as follows:

(a) The unit running the DX shop starts the replacement action for supported units. The DX shop uses copy

#4 of the DA Form 2407 to start the action.

(b) Normal DX replacement actions will be made by the DX shop for like serviceable items in stock.

(5) Final processing of approved claims. Support of depot maintenance units will handle all claims promptly.

These units will send approved claims to the creator, whose address and MILSTRIP document number is in Block 20 of

DA Form 2407. The support, or depot, unit will also return to the replacing unit, all labor costs used in replacing the bad

items. Refer to Appendix A for information on completing DA Form 2402 and Appendix B for information on completing

DA Form 2407.

b. Disposition of Failed Items. Failed items will be dispositioned in accordance with instructions issued by the

appropriate WARCO after review of the documentation submitted.

(1) False Returns. Government units returning items to the contractor for repair which are found to be serviceable

will be penalized for the cost, loss of time, nonavailability of items, or other restrictions. False returns will be monitored by

the Troop Support Command.

(2) Receipts/verification of contractor repairs.

c. Special Area Requirements. If an item or component is located in the Continental United States (CONUS), the

item will be returned to the destination identified for that component or to seller's plant, whichever is advantageous to the

Government. In the event components are located outside CONUS, the appropriate WARCO shall be contacted for

disposition instructions.

d. Reimbursement for Army Repair. The Army shall proceed with non-contractor repair only after negotiation and

settlement with the contractor concerning the scope of repairs to be performed by Army personnel. Army repair of

hardware shall proceed only upon receipt of written instructions from the contractor and appropriate WARCO.

e. Claim Denials/Disputes. Claim denials/disputes will be addressed through the WARCO and by MECO. When a

dispute arises, settlement will be established by negotiation between the Troop Support Command and MECO.

f. Reporting. Reporting or recording action on a failed item shall be as specified in DA Pam 738-750 or DA Pam

738-751.