Worldwide Warehouse Redistribution Services (WWRS)

Transcription

1 Air Force Security Assistance and Cooperation Directorate Worldwide Warehouse Redistribution Services (WWRS) March 2018 AFLCMC Providing the Warfighter s Edge "This briefing is for information only. No US Government commitment to sell, loan, lease, co-develop or co-produce defense articles or provide defense services is implied or intended." AFLCMC/WFNJ case no applies for tracking and record keeping purposes.

2 Purpose Explain how the WWRS program is designed to help our International Partners buy and re-sell FMS and DCS acquired excess materiel 2

3 What is WWRS? Overview WWRS Authority to Operate and Benefits of WWRS Buyers / Sellers Top 10 Weapon System Sales How to Become a Buyer and Seller WWRS Supply / Financial Flows The WWRS Fee and What it Pays for Reduce the Fee with a Lot Buy How to Access WWRS Summary 3

4 What is WWRS? A Tri-Service, web based Warehouse designed to transfer Fully Serviceable (Condition Code A ) excess spare/support equipment from one FMS customer to another FMS buyer needs any blanket order FMS case FMS seller requires a FMS seller case 4

5 WWRS Authority to Operate Arms Export Control Act, Section 2761(m), Return of Defense Articles Conditions Items were transferred under the Arms Export Control Act through either: Direct Commercial Sales (DCS) Foreign Military Sales (FMS) Items cannot be Significant Military Equipment (SME) Items must be fully serviceable without need of repair or rehabilitation 5

6 Transfer of FMS Acquired Materiel Two primary means of transfer 1. US Department of State third party transfer Customer required to find buyer, petition Department of State and await decision 2. WWRS Option A: Customers can list unlimited amount of items / wait for order to come in Option B: Customers can use Lot Buy capability to negotiate the sale of many items WWRS is Based on the ebay Model 6

7 Buyers able to Benefits of WWRS access additional source of supply find cost savings source parts no longer manufactured access off the shelf materiel broadcast for items not listed Sellers able to recoup cost of spare parts free-up warehouse space re-invest funds for other requirements 7

8 WWRS Buyers / Sellers Buyers (includes US Army, Navy, Air Force) 37.4K+ orders valued at $182M Average savings 32% below DoD stock list price $83.9M+ buyer savings Approved supply discrepancy (SDR) rate: 1% Consistent with AF metric 36 Sellers Returned $181M+ to sellers FMS programs Inventory growth $5M to $2.7B Approximately 258K line items As of February

9 Lifetime Top 10 WWRS Sales by Weapon System Jun 01- Sep 17 Total Value $M Total Value As of 8 Sep 2017 Weapon Systems (non-sme) FMS Materiel 9

10 How to Become a Buyer FMS Partners as a customer: 1. Use an existing FMS blanket order support case (No CLSSA cases) 2. Option A: Use RIC FNH when inputting requisition looks at WWRS inventory Option B: Use RIC FWW looks at WWRS, will Fill / Kill requisition 3. Requisitions not using SAMIS or CISIL Not automated; requisitions are coordinated through your country team and WWRS program office. (Call Us!) USAF, USN or USA as a customer: 1. Use a MORD or MIPR to transfer funds to WWRS Becoming a Buyer is Easy! 10

11 How to Become a Seller 1. Option A: Establish a WWRS Seller FMS blanket order support case Option B: Amend an active case to add a separate line for WWRS Case/Line Value: Should be 10% of materiel value to be transferred 10% of projected inventory is recommended but not required, seller case can be requested for any value but sales cannot proceed if seller case does not have sufficient Obligation Authority for WWRS fee 11

12 How to Become a Seller cont. Terms of Sale: Cash with acceptance: Initial deposit = 5% of line value, plus half of (3.5%) administrative surcharge Initial deposit total = 6.75% of line value Balance as Billed: Subsequent funds will be billed as actual redistribution occurs Inventory Sales Capability = Case/Line Value 10% 12

13 How to Become a Seller example Case/Line value: $1M Terms of Sale: Initial deposit: $67,500 (6.75%) Subsequent funds Additional payments (obligation authority) come from sales proceeds If no sales occur, initial deposit is refundable (less half the 3.5% admin) Inventory Sales Capability $1M /.10 = $10,000,000 13

14 How to Become a Seller cont. 2. Assign an in-country Point of Contact (POC) Establishes inventory list and forwards to PMO office Responds to redistribution orders (RDOs) Monitors: Inventory, Shipments, Supply Discrepancy Reports (SDRs) Requires internet access 3. List Items Participation rules are set by the LOA Items are SDR eligible for one year Items must be acquired under AECA, fully serviceable and pass edits 14

15 How to Become a Seller cont. Edits: Program Office runs check to ensure no: SME Condition Code items other than A Chemicals Classified COMSEC Explosives Hazardous (case by case) Items w/ Shelf Life less than 24 months 15

16 WWRS Supply Flow Seller List of available items Ship Notice (RDO) Status AFSAC ONLINE - For sale - Wanted to buy - NSN, qty RQN Status (CISIL / MISIL / SAMIS) Management Information System Status Browse Status RQN (Accept / Reject) Materiel In-transit Inspection Point Materiel Buyer 16

17 WWRS Supply Flow cont. In-Transit Inspection Point Contractor provided service 1. Receives items 2. Inspects (visual) 3. Takes title for USG 4. Sanitize to remove country ID from items 5. Photographs items for record 6. Repacks items 7. Transfers items to buyer 8. Ships Usually turns materiel in less than 1 day 17

18 The WWRS Fee and What it Pays For WWRS Fee Buyer fee: Zero Seller fee: 10% or $200, whichever is greater Fees are applied to price of item(s) sold and paid during the billing cycle What it Pays for WWRS personnel 4 USG employees 2 contractors In-transit Inspection Point (IIP) service Automated Data Processing (ADP) 18

19 Reduce the Fee with a Lot Buy A lot buy is defined as 15 or more line items selected by one buyer from one seller Terms of sales are negotiated Between Seller and Buyer Prices can be substantially lower when negotiated WWRS Program Office will initiate the transfer once the final negotiation is complete. Transfer value may reduce the seller fee Transfer Value Discount (off standard WWRS fee) Less than $200,000 10% (fee 9%) More than or equal to $200,000 20% (fee 8%) 19

20 Reduce the Fee with a Lot Buy Lot Buy Process WWRS sellers act as the initiation point to the transfer by contacting the Program Office to reserve the items Discount must be applied by the WWRS Program Office Seller Buyer Minimum Order Value can be waived with reservations Required Lot identifier WWRS Program Office Reservations made Lot Buys Can Save You More Money 20

21 How to Access WWRS WWRS Home Page Public site where everyone has access Hosted by AFSAC Online Follow link to the WWRS Site Follow link to apply for WWRS Seller user account Can link directly from external sites: SCIP: DSCA: PMO Contact Info: 21

22 How to Access WWRS WWRS Home Page ORGANIZED BY ROLES Always use the NSN/NIIN to locate what you need 22

23 How to Access WWRS WWRS Home Page: Inventory Seller is anonymous and you can compare WWRS & DoD Prices 23

24 Summary WWRS is DoD s Tri-service web-based warehouse for FMS customers to buy and re-sell FMS and DCS acquired items It s easy to be a buyer or become a seller We are a Source of Supply with urgent broadcast capability Free up space in those warehouses Recoup cost on spare part Don t forget those Lot Buys for saving you money 24

25 Questions? Frequently Asked Questions Q. Why can t I resell Direct Commercial Sales (DCS) Items? A. As of August 2016 the Program Office received approval from DSCA to allow DCS items in the inventory Q. Can I use a K Case? A. No, K cases (CLSSA) cases cannot be used Q. Who and Where is the IIP located? A. The Contractor is Baker and Associates, they are located in Centerville Ohio Q. Can Time Change Items be sold through WWRS? A. Yes, these items can be sold through WWRS but documentation can only be transferred at the approval of the Seller. The IIP does not transcribe documents 25