DEFENSE LOGISTICS AGENCY AMERICA S COMBAT LOGISTICS SUPPORT AGENCY

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1 DEFENSE LOGISTICS AGENCY AMERICA S COMBAT LOGISTICS SUPPORT AGENCY WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP DLA Aviation Who We Are and Where We Are Going WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

2 Supporting Aviation Readiness F-22 B-2 C-5 F/A-8 AV-8B V-22 H-53 H-46 UH-60 We hear you It s the sound of freedom 2

3 DLA Aviation Mission Provide effective and efficient worldwide support to DoD Aviation Warfighters Values Warfighter needs guide us Integrity defines us Diversity strengthens us Excellence inspires us Vision Warfighter-focused, globally responsive, fiscally responsible supply chain leadership 3

4 Our Environment Fiscal Constraints 0% Material Reduction Initiative Reduced operating costs Future Demands Afghan surge suppressed repair Uncertain operational commitment timeline Foreign and domestic commercial aviation growth Increased demand for materials and capacity Decreased negotiation leverage/increased prices 4

5 Organizational Changes and where it impacts you Decision 35 (Recommendation 76): Depot Level Reparable (DLR) Procurement Management Consolidation DLR Procurement Pillar: Transfer procurement management and related support functions for the procurement of DLRs from the Military Services to the Defense Logistics Agency (DLA). Consumable Item Transfer (CIT) Pillar: Transfer of function related to the management of consumable items from the Military Services to DLA. Decision 43 (Recommendation 75): Commodity Management Privatization What are the impacts: Decision 5 (Recommendation 77): Supply, Storage, and Distribution Management Reconfiguration 5 Additional DLA procurement locations Strategic Distribution New leadership faces Commodity Management Pillar (SDP): Additional Small Privatization Business Pillar: Specialists Transfer supply contracting Increased obligations functions for tires, packaged (doubled) petroleum products, and Migration of consumable items to DLA compressed gasses from the Military Services DLA. Broadened supply, Disestablish storage (privatize) all and other distribution mission supply, storage, and distribution functions for these Additional hubs commodities. and spokes for storage Local purchase responsibility Designate 2 DLA Distribution Depots as Strategic Distribution Platforms (SDPs), mirroring the 2 existing SDPs. Designate remaining DLA Defense Depots (DDs) as Forward Distribution Points (FDPs), focused on local customers. Maintenance Depot Supply and Storage (Retail Supply Operations) Pillar: Transfer all supply, storage, and distribution functions and associated inventory in the Military Service Maintenance Depots from the Military Services to DLA. 5

6 DLA Aviation Organization Commander Deputy Commander Acquisition Executive (HCA) CHIEF OF STAFF Deputy CoS Command Staff Supplier Operations Strategic Acquisition Customer Operations DPO at Ogden, UT DPO at Oklahoma City, OK DPO at Warner Robins, GA Business Process Support Procurement Process Support Aviation Engineering DPO at Huntsville, AL DPO at Philadelphia, PA DPO at Richmond, VA 6

7 DLA Aviation Profile Ogden, 63 UT 40 Oklahoma City, 296 OK 57 Scott AFB, IL 2 Mechanicsburg, PA 50 Whidbey Island, WA Philadelphia, PA Lemoore, CA 2 Langley, VA 2 Norfolk, VA 3 North Island, CA 87 Oceana, VA San Antonio, TX Corpus Christi, TX 7 Huntsville, AL 8 53 Fort Rucker, AL 2 Richmond, VA Cherry Point, NC Warner Robins, GA 2 24 Jacksonville, FL 04 Customer Ops Ind Spt Strategic Acquisition/ Supplier Ops Eng &Tech Mgrs (TM)-TDY) Richmond Supplier Ops Ind.Plant Equip 7

8 DLA Aviation FY Top Focus Areas PLANNING Improve through training for required skill sets and increasing collaborative working relationships with our industry partners COST MANAGEMENT Maximizing taxpayer dollars through elimination of waste and alignment of resources (people, processes, time and money) INDUSTRIAL SUPPORT Integrating and aligning capabilities and expectations at depot-level. Right part at the right place at the right time HUMAN CAPITAL & TALENT MANAGEMENT Building a climate that values diversity and team contributions. Leverage existing capabilities, developing highly motivated and effective workforce ACQUISITION STRATEGIES Optimize acquisition end to end logistics support, using supplier relationships and capabilities, total cost and desired performance, integrating consumable and reparable acquisitions. 8

9 FY Aviation Performance Targets NOR -$4M +$249M Cash -$334M -$52M POF +5% +3.7% Inv Turn to DPA +8.6% +2.6% ATP +7% +4.2% Coverage to 92% 88.9% UFOs -8% -9.7% SO -3.% -2.5% ADV $.406B $.68B Demand Chain Supply Chain 9

10 DLA Aviation Product Lines D L A s A V I A T I O N D E M A N D & S U P P L Y C H A I N Class IX Support Environmental Products Mapping Industrial Plant Equipment Engines and Airframes Instruments/gauges Electrical Hardware Chemicals Packaged POL Threaded and Non- Threaded Fasteners IPV Program Re-refined Oil Ozone Depleting Substance Reserve Chemical Prime Vendor Program Topographic, hydrographic, aeronautical maps/charts, in both hard copy and digital format, for all DoD Activities More than 87,000 products Lathes Milling Machines Boring Machines Grinding Machines Relocation New Procurement Overhaul Industrial Depot Level Repairables DLA AVIATION 0

11 Multi-faceted Procurement Support Increase Automation Establish/grow long term arrangements Sole Source Competitive Commodity Focused Expand PACE execution Establish Auto IDPOs Create velocity in manual workload Utilize auto solicitation to greatest extent possible Embrace competition Develop agility Leverage quantity range proposals

12 Hot Topics Small Business Program Update Policy Changes Reverse Auctions Post Award Priority Scheme Better buying power initiatives Targeting affordability Incentivizing productivity and innovation in industry Promoting real competition Reducing non-productive processes 2

13 EProcurement Future Areas of Interest DLA Aviation deployment beginning August 20 There will be minimal impact to the supplier community The look and feel of DIBBS will not change Interface with the Services for DLRs in development New functionality: Post Award Request (PAR) processing Coverage Metric hard to procure category Lack of quotes - G items Increased focus on sole source negotiations Multi-year pricing Share in savings provisions Focused efforts on driving down price of material 3

14 Commodity Groupings Future Areas of Interest Taking tactical workload to a strategic level Partnering to provide cost wise readiness improvements Increasing automation through long term arrangements Multiple award structure supports competition Iterative efforts initial population with growth over time Leveraging small business capabilities with set-asides where feasible 6 major efforts underway Fasteners Bearings Lighting Cables Instrumentation Structural Components 4

15 The Only Reason We Exist Questions. Why we re here. 5

16 Supplier Communications Suppliers will receive updated messages via: The DLA Internet Bid Board System Supplier Information Resource Center 6/bsm/sirc/default.asp Supplier Communications dscr.bsmsct@dla.mil Federal Business Opportunities Conferences Small Business Office 6