Receipts From Marine Corps and Other Government Activities Receipts of material from government activi- ties other than naval activities must be inspected at  the  ship.  Material  must  be  inspected  by  the receiving  SK  to  verify  that  the  material  is  of acceptable  quality.  If  the  receiving  SK  is  not qualified  to  perform  this  quality  inspection,  the department  head  who  eventually  will  use  this material  should  be  requested  to  provide  an individual   who   is   qualified   to   perform   this inspection.  After  these  inspections  are  performed, receipt of material is done as discussed earlier. Receipts From Commercial Sources When  material  has  been  inspected  and  ac- cepted  by  an  ashore  activity,  you  need  not  inspect for  quality.  However,  you  must  do  a  quantity inspection  before  accepting  the  material.  When you  receive  purchased  material  directly  from  a commercial source at the ship, the receiving SK should  conduct  an  inspection  for  quality  and quantity. You must do a full and thorough quality inspection  and  all  packages  should  be  opened  and the  contents  verified  by  count.  When  receiving DTO   material,   you   should   use   a   department representative for the inspection. Deliveries from commercial sources should be accompanied with itemized  copies  of  the  invoices  or  delivery  papers. You should not receive material unless a copy of the  receipt  document  can  be  retained.  Material should  not  be  accepted  unless  you  are  satisfied that it conforms to the specifications included in the purchase document or contract. If directed by the  commanding  officer,  material  that  contains minor  defects  can  be  accepted. BUY  OUR  SPARES  SMART  PROGRAM For the past few years, the Buy Our Spares Smart (BOSS) program has been making major changes in how the Navy acquires spare parts. As a result of the BOSS program, the Navy has saved millions  of  dollars  since  its  conception.  These savings represent the hard, auditable results of spares  breakout,  competition,  and  other  actions to  bring  prices  down. There are many other nonauditable results of BOSS program efforts that are only noticeable in the   overall   achievements   of   the   project.   The existence  of  the  BOSS  program  serves  as  a constant  reminder  to  Navy  contractors  that  the Navy is concerned about spare parts prices. This is getting truer with each passing year due to the budget  restraints  that  have  been  put  on  the military  by  Congress. Fiscal year 1986 was a very successful year for the Navy Field Contracting System in the area of competition.   (Competition   means   simply   that more  that  one  qualified  contractor  must  bid  for a  Navy  contract.)  For  example,  fiscal  year  1986 contract   dollars   awarded   through   competition rose  10.8  points  to  finish  at  64  percent. Achieving  this  improved  rate  of  competition has been a team effort. Personnel in all areas are working closely to encourage new competition for Navy   contracts.   Requirement  determiners  are communicating   with   contracting   personnel; breakout reviewers are constantly in touch with procurement  personnel;  and  Should-Cost  analysts are  talking  to  negotiators. The   total   cost   avoidance   attributed   to breakout for FY86 was $212.7 million. Breakout refers  to  the  detailed  technical  data  screening  and identification  process  that  leads  to  a  decision  that an  item  may  be  procured  from  other  than  its historical  sole  source.  The  Navy  may  break  an item   out   from   the   weapons   system   prime contractor  to  either  the  actual  manufacturer  or to open competition among two or more qualified sources.  Breakout  removes  the  middle  man. During  FY86,  the  Navy  completed  17,265  full- screen  breakout  reviews  and  110,690  limited- screen reviews. A full-screen breakout review is required  by  regulation  for  any  annual  buy  greater than  $10,000  that  is  also  coded  for  sole  source procurement.  The  Navy’s  ICPs  initiate  all  full- screen  reviews,  which  entail  a  65-step  process including   data   collection,   evaluation   and completion,  technical  and  economic  evaluation, and  supply  feedback.  Resulting  breakouts  are approved   by   ICPs,   the   engineering   support activities, or   the   parent   hardware   systems commands. A  limited-screen  breakout  involves  material that is not highly technical in nature and for which it   is   readily   apparent   that   the   sole   source contractor  adds  no  value.  Any  procurement agency with technical expertise can perform the limited  screening  and  determine  the  effectiveness of  breakout. These breakout reviews are the fuel that drives competition   at   our   ICPs,   By   reviewing   parts historically  bought  from  only  one  source  and considering   their   potential   breakout,   Navy engineering and procurement activities reinforce their  accountability  for  obtaining  high-quality 6-14