Defense Supply Center Richmond Base Realignment And Closure (BRAC) Depot Level Reparable (DLR) Update Ms. Yvette Burke Acquisition Executive 8 April 2008 Leading DLA's Aviation Supply & Demand Chain
Agenda Leading DLA's Aviation Supply & Demand Chain • Organizational Alignment • Implementation Activities • Leaning Forward 2
Aviation Supply Chain DLR Organization Structure Leading DLA's Aviation Supply & Demand Chain D Commander DD Deputy Commander QA Aviation Customer Operations FA Aviation Supplier Operations DA Acquisition Executive DO Deputy Commander for Field Operations and Distribution Sites Supply Storage DLA Commander Ogden DLA Ogden CCO DLA Commander Oklahoma City DLA Oklahoma City CCO BA Business Process Support DLA Commander Warner Robins DLA Warner Robbins CCO V Aviation Engineering Other Supply Storage and Distribution Sites DLA Philadelphia CCO Columbus/Philadelphia Detachments J 8 R Financial Operations J 6 R Information Operations Direct Report, Personnel, and Operational Support Matrixed, Administrative Support Matrixed, Oversight Support DLA Huntsville CCO Aviation Supply Chain Chief of the Contracting Office DSCR-BP Blue = Operational & Oversight Tan = Oversight Only 3
DLR Key Events Leading DLA's Aviation Supply & Demand Chain Aviation Supply Chain DLR Detachments Air Force Navy Army NAVICP Phil AMCOM Hill Tinker Warner Robins Identify Detachment CCO Pamela Day Michael Yort Ken Winslette Tammy Kozior Marsha Thornton FTE numbers 43 62 20 77 (44) 68 (55) Site Plan Publication Nov 07 Dec 07 Apr 08 Feb 08 Apr 08 Provisional Det Standup N/A Apr 08 Jan 08 Dec 07 Detachment Standup Jun 08 Nov 08 Dec 08 Detachment Standup (Tier III/IV) N/A N/A Jan-Mar 10 Jan- Mar 10 DSCR BRAC Office Site Plan Lead Michele Thomas Gwen Pearson Major Phillip Adams Major Jerry Mc. Ghee Christina Larsen 4
DLR Procurement Management Consolidation Leading DLA's Aviation Supply & Demand Chain Personnel New DLR Procuremen ts Policies & Procedures Joint Collaborations Retained Requireme nt Acquisiti on Strategy Governa nce Funding Program Manageme nt Logistics Engineerin g Depot Level Repairables D L A Depot Level Repairables Gained S E R V I C E S 5
Tiered Approach Leading DLA's Aviation Supply & Demand Chain Air Force - Day One Army/Navy – Phase I Tier I - 48%/16%** • No Data Rights • No First Article • Part Number Buy (non-NSN) • Single Item Procurement (NSN) • Transactional Buys (NSN) • New DLR Procurement (NSN) Tier II – 46%/62% • Corporate Contracts – Buy ONLY • Single Item Procurement (not in Tier I) • Multiple Item Procurements (NSN/non-NSN) • New DLRs • Special Tests • Technical Requirements • No Special Services Army/Navy – Phase II Tier III – 5%/20% Tier IV - 1%/2% • OSD Maturity Model I & II PBLs • DLR with incidental services - not repair • Performance Incentives (Positive and Negative) • Requires Business Case Analysis • OSD Maturity Model III & IV PBLs • Combined with Program Requirements • Requires Business Case Analysis ** Items/Dollar Value Acquisition Strategies Drive the Tiers 6
DLA Today & Tomorrow Streamlined Acquisition Leading DLA's Aviation Supply & Demand Chain Today Air Force Army üSingle Policy • Multiple Clauses • Multiple Policies DLA üSingle Process • Fragmented Collaboration • Multiple Processes Marine Corps Tomorrow üSingle Automated System • Multiple Systems Navy 7
DLR Key Performance Indicators Leading DLA's Aviation Supply & Demand Chain • Administrative Lead Time (ALT) - The time it takes to establish a contract with a supplier for a requirement • Procurement ALT (PALT) - The time required to award contract from time of receipt of a qualified Purchase Request • Production Lead Time (PLT) - The total time between the award date to the receipt date of the first significant delivery • Strategic Opportunities - Number and $$$ value of items on Joint Long Term Contracts • Number Open Purchase Requests (PRs) stratified by days - Number PRs on hand or WIP 0 -90, 91 -180, 181 -270, 271 -365 days, and greater than 365 days WIP Average Age - PRs > ALT of Record • On-Time Delivery - Percentage of schedule lines delivered complete by the Supplier to the prescribed destination by the delivery date specified in the contract to include allowance for quantity variances 8
Strategic Material Sourcing Leading DLA's Aviation Supply & Demand Chain 9
Leveraging Best Business Practices Leading DLA's Aviation Supply & Demand Chain Army Relationship Spectrum Navy Strategic Supplier Alliances Supply Chain Alliances Prime Vendor Contracts Air Force Leverage Industrial Capability Leverage Do. D Spend Partnership Agreements Performance Base Logistics Corporate Contracts Marine Corps Process Improvements Cost Wise Readiness to Warfighter Privatization DLA 10
Joint Initiatives Leading DLA's Aviation Supply & Demand Chain • Strategic Joint Initiatives will drive savings • Sources of Joint Initiatives • Strategic Sourcing Tool • DLA SMSGs • DLR CCO/Program Manager/Service • Industry Suggestions • DLR IPT formed based on identified opportunity • Governance Structure in place to provide support • Pilot opportunities being identified Collaboration Is Key 11
e. Procurement Overview Leading DLA's Aviation Supply & Demand Chain SAP is the e. Procurement solution. my. SAP Supplier Relationship Management SAP Document Builder • FAR/DFARS/Local Clause • Management Complex Document Generation • Content Management • Contract Modifications SAP Records Management • Electronic Contract File • Case Management Near Term Focus: Initial Utilization with DLA Inventory Control Points • Supplier Qualification • Bid Invitation (Solicitation-RFP/RFQ/IFB) • Operational Sourcing • Content AND Catalog Management • Evaluation and Award • Contract Admin • Government Reporting my. SAP ERP • Materials Mgmt • Funds Mgmt • Financials -Follows SAP Standard Implementation Methodology -Provides Compatibility with Software Upgrades FY 09 FY 10 Design/Build/Test Long Term Focus: Expand to DLA Service Centers BRAC Depot Level Reparables FY 11 FOC 12
Summary Leading DLA's Aviation Supply & Demand Chain • Gaining New Mission • Extending Base of Acquisition Professionals • Leaning Forward in Implementation 13
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