DEFENSE LOGISTICS AGENCY AMERICA S COMBAT LOGISTICS SUPPORT AGENCY

Transcription

1 DEFENSE LOGISTICS AGENCY AMERICA S COMBAT LOGISTICS SUPPORT AGENCY Tinker and the Primes 2017 Achieving Acquisition Solutions Through Strategic Partnerships and Industry Engagement Mr. Matthew Beebe Director, DLA Acquisition (J7) 23 August 2017

2 A $34 Billion Global Enterprise More than 25,000 military and civilians 48 States / 28 countries Manage 5.1 M Line Items via 9 Supply Chains Supply 86% of all Military Services repair parts and 100% of fuel and troop support consumables Support over 2,300 weapons systems Primary DoD Receipt, Stow Issue Warehouse and Reverse Logistics Foreign Military Sales (FMS) $2.1 Billion sales supporting 112 Nations Whole of Government Support 42 Agencies supported / $4.2B in sales A Day in the Life of DLA: 9,000 procurement actions 50,000 receipts and issues 100,000 orders 12M gallons of fuel issued DLA Current Operations 2

3 DLA as a Global Platform Land Systems Maritime Systems Aviation Systems Fuel/Energy Industrial Hardware Supply Chains Subsistence Medical Clothing & Textile Construction & Equip Theater Support DLA Europe & Africa DLA Pacific DLA Central & SOCOM Distribution 26 Distribution Centers $78B DoD Inventory 52M sq ft covered storage Disposition Services Co-located with customers Disposal Management Solutions Reverse Logistics Strategic Materials Critical items such as titanium, cobalt, and tungsten Services IT Acquisition Program Management Cataloging Services Document and Data Management Transaction Routing 3

4 Global Supply Chains Troop Support CLI: Subsistence Food Service Produce Operational Rations CLII: Clothing & Textile Recruit Clothing Organizational Clothing & Individual Equipment CLIV/VII: Construction & Equipment Facilities Maintenance Equipment Wood Products Safety & Rescue Equipment CLVIII: Medical Pharmaceutical Medical/Surgical Equipment CLIX: Industrial Hardware Consumable Repair Parts for Major Weapon Systems Aviation CLIX: Engine Components, Air Frames Flight Safety Equipment, Maps Environmental Products Land and Maritime CLIX: Maritime Valves, Fluid Handling Electrical/Electronics Motors, Packing/Gaskets CLIX: Land Wheeled, Tracked & Heavy Vehicle Parts Vehicle Maintenance Kits Power Transmission/Engine and Suspension Components Tires, Batteries and Small Arms Parts Energy CLIII: Energy DoD Executive Agent for all Bulk Petroleum Natural Gas, Coal, Electricity Aerospace Energy 4

5 The DLA Acquisition Enterprise FY16 Obligated Dollars: $29.3 B FY16 Contracts: 440,190 Key Metrics Obs on LTC 75% (38% Hardware Only) Small Business 33.1% Competition 79% ($), 92% (Actions) Supply Contracts 94.2% Fixed Price Contracts 99.6% Leadtime Trends (ALT & PLT) % 75.00% 50.00% 25.00% 0.00% Workload Breakdown (Actions) 0.1% 21.9% 13.0% 65.0% FY16 Manual: Large ( Days) Manual: SAP w/ Buyer Assist (50-60 Days) Automated PO (11-12 Days) LTC (System Delivery Order) (1 Day) Category Management Category Federal DLA Information Technology $56.1B $931.8M Professional Services $67.8B $272.0M Security and Protection $5.2B $38.8M Facilities & Construction $78.2B $2.0B Industrial Products & Services $11.4B $3.0B Office Management $2.0B $91.1M Transportation & Logistics Services $23.3B $5.7B Travel & Lodging $1.0B $.1M Human Capital $4.3B $4.1M Medical $37.5B $6.1B 5

6 Supplier Engagement Guidance OMB Myth-Busting Educational Campaign Early, frequent, and constructive engagement with industry leads to better acquisition outcomes The Federal government must ensure it conducts productive interactions with its industry partners. Secretary Mattis Memo - Dialogue with Industry We must work more closely with industry to maintain our technological and capability overmatch, and we must push for more rapid innovation. I expect you to engage with and work collaboratively with private industry in a fair and open manner. 6

7 Building Strong Partnerships Through Supplier Engagement Lines of Effort LOE I Direct Leadership Interaction Regular, Open and Frank Communication LOE II Advocate for Suppliers Serving as the Agency Ombudsman and Voice of the Supplier LOE III Industry Outreach & Development Reaching Out to Broaden the Base LOE IV Generate Innovative Ideas Developing Innovative Approaches to Acquisition Challenges DLA-Industry Relationship Based on Mutual Understanding and Responsiveness --- Enabling Better Acquisition Outcomes for the Warfighter LOE V Assess and Mitigate Risk Involving Industry to Ensure Supply Chain Security and Resiliency 7

8 LOE III Industry Outreach & Development Small Business Activity Number of Small Business Vendors Vs. Total Obligations Total SB: 78% of DLA contractors are small businesses Small Business Obligations Total Obligations Number of SB vendors Total Obligations New Vendors: 2,681 new vendors in FY16 Obligations: Small business obligations increased by 15.28% from FY13 to FY16 Full & Open Dollars Awarded to SB: 37% ($8.5B) of fully competed awards went to SB in FY16 Source: Federal Procurement Data System (FPDS) 8

9 LOE IV Generate Innovative Ideas The Boeing Example REDUCED LEAD TIMES, ADMIN ACTIONS, INVENTORY IMPROVED PERFORMANCE SOLE SOURCE SPARES PB/STK/TRX CONSUMABLES DLRs SUPPORT DEPOT REPAIR SYSTEMS, PLATFORMS DEVELOP APPROACH FOR ALL CATEGORIES OF DEMANDS PROVIDE MATERIAL AND ENGINEERING LIAISON WITH SCM J&A covers F-15, B-52, KC-135, B-1, E-3, F/A-18 A/D, F/A-18 E/F, AV-8B, P-8, C-17, CH-47, AGM-84 and AGM-86 provides support of DLA customers worldwide Supports Robins AFB, Tinker AFB, USN/USMC, Rotary Depot, Weapons Depot Originated as result of 2013 White Paper proposal Provided Broad Capability Increases Agility Increased Affordability: 10-20% Savings w/ Boeing Managed Supply Chain Increased Material Availability (90%) & Reduced Inventory Elegant Solution to Meet Warfighter Needs 9

10 LOE V Assess and Mitigate Risk Leveraging Market Intelligence to identify and address supply chain vulnerabilities. Current Challenges: Counterfeit Sourcing Challenges Cyber Security Vendor Vetting 10

11 Wrap-Up and Way Ahead Not a new concept, but our strategy is evolving Committed leadership Continuing to institutionalize and formalize Enabling readiness through strong partnerships 11

12 More Information For Opportunities: DLA Internet Bid Board System (DIBBS) Federal Business Opportunities (FBO) or For Small Business: DLA Small Business (HQ) DLA Component Small Business Offices Procurement Technical Assistance Program (PTAP) 12

13 DEFENSE LOGISTICS AGENCY AMERICA S COMBAT LOGISTICS SUPPORT AGENCY 13