Base Realignment and Closure 2005 BRAC Implementation and  Transition Office Stephen Mason
<ul><li>Mission   –   </li></ul><ul><ul><li>Support to the War Fighter </li></ul></ul><ul><ul><li>Distribution Process Own...
BRAC 2005 DECISIONS <ul><ul><ul><li>Commodity Privatization   </li></ul></ul></ul>Supply, Storage & Distribution  Manageme...
DLR Procurement Management Consolidation <ul><li>Decision </li></ul><ul><li>Transfer Procurement Management and related Su...
  DLR Procurement  Impacts <ul><li>Depot Level Reparable Procurement to DLA </li></ul><ul><li>Leverages Full Buying Power ...
Transformational Change Consolidate Procurement of DLRs <ul><ul><li>Disestablishes 3 Service ICPs through Consolidation </...
DLR Procurement Management  Consolidation Hill ICP Tinker ICP Albany ICP Warner Robins ICP DSCR Richmond  DSCC Columbus NA...
DLR Procurement Management
Depot Level Repairables Depot  Level Repairables S E R V I C E S D L A DLR Procurement Management Consolidation Consumable...
Leveraging Best Business Practices Army  Process Improvements   Navy Air Force   Marine Corps   DLA  Prime Vendor Contract...
Consumable Item Transfer <ul><li>Decision </li></ul><ul><li>Transfer Budget/Funding, Contracting, Cataloging, Requisition ...
Consumable Item Transfer  Impacts  <ul><li>Consumable Items Transfer (CIT) to DLA </li></ul><ul><ul><li>Updates long stand...
BRAC 2005 DECISIONS <ul><ul><ul><li>Commodity Privatization   </li></ul></ul></ul>Supply, Storage & Distribution  Manageme...
Supply, Storage & Distribution Reconfiguration   Decision   Reconfigure Wholesale Storage and Distribution around  Four Re...
Retail Supply Operations  Impacts  <ul><li>Repair Depot Supply Operations to DLA   </li></ul><ul><ul><li>Centralize all De...
  Strategic Distribution Platforms (SDPs )   Impacts <ul><li>Two New (total of four) SDPs </li></ul><ul><ul><li>One-Day Hi...
Forward Distribution Points (FDPs) Impacts <ul><li>12 FDPs to Support Industrial/Local Customers </li></ul><ul><li>Co-loca...
BRAC Adding Efficiency Oklahoma City Barstow Corpus Christi Hill Puget Sound San Joaquin Cherry Point Anniston Warner Robi...
BRAC Adding Efficiency (Con’t) <ul><li>15.1 M sqft Warehouse Space </li></ul><ul><li>23.3 M Item Cube </li></ul>51.2 Milli...
BRAC 2005 DECISIONS <ul><ul><ul><li>Commodity Privatization   </li></ul></ul></ul>Supply, Storage & Distribution  Manageme...
Decision Relocate Tire Supply Contracting Function from Detroit Arsenal and Hill AFB to DSC Columbus ICP.  Relocate Supply...
Commodity Management Privatization Impacts Commodities to DLA for Privatization   <ul><li>Future Support Mechanisms, Level...
BRAC Challenges   <ul><li>Resources  </li></ul><ul><li>Systems Integration </li></ul><ul><li>Aligning Business Models  </l...
Summary <ul><li>Joint Collaborations Required  </li></ul><ul><li>Opportunity to Further Align by Supply Chain </li></ul><u...
<ul><li>Questions  ? ? ? </li></ul>
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2006 Acquisition Initiatives - 2

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2006 Acquisition Initiatives - 2

  1. 1. Base Realignment and Closure 2005 BRAC Implementation and Transition Office Stephen Mason
  2. 2. <ul><li>Mission – </li></ul><ul><ul><li>Support to the War Fighter </li></ul></ul><ul><ul><li>Distribution Process Owner </li></ul></ul><ul><li>Transformation – </li></ul><ul><ul><li>Enhanced Capabilities for the Future War Fighter </li></ul></ul><ul><li>People – </li></ul><ul><ul><li>Transforming Our Human Capital and the Workplace </li></ul></ul><ul><li>Alignment – </li></ul><ul><ul><li>To War Fighters…To Supply Chains </li></ul></ul><ul><li>One Enterprise – </li></ul><ul><ul><li>Seamless Partnering for War Fighter Logistics Support </li></ul></ul>Top Five Priorities BRAC – The Agency’s 13 th Transformation Initiative
  3. 3. BRAC 2005 DECISIONS <ul><ul><ul><li>Commodity Privatization </li></ul></ul></ul>Supply, Storage & Distribution Management Reconfiguration NPV $.74 B Over 20 years <ul><li>DLR Procurement Management Consolidation </li></ul><ul><li>(Consumable Item Transfer) </li></ul>NPV $1.9 B Over 20 years NPV $2.9 B Over 20 years
  4. 4. DLR Procurement Management Consolidation <ul><li>Decision </li></ul><ul><li>Transfer Procurement Management and related Support Functions for DLRs (including oversight) to DLA. All other ICP Functions remain with the Components. Relocate some Army & AF ICP Functions to preserve the Army Life Cycle Management Commands and provide for continuation of Secure Facilities. </li></ul>Saves DOD $ by Leveraging all Procurement Buys and Managing them within a Single Agency!
  5. 5. DLR Procurement Impacts <ul><li>Depot Level Reparable Procurement to DLA </li></ul><ul><li>Leverages Full Buying Power of DoD </li></ul><ul><li>One Buyer Vice Five </li></ul><ul><li>Air Forces Top Five Suppliers are DLA’s Top Five Aviation Supply Chain Suppliers </li></ul><ul><li>More Performance Based Contracts, Direct Vendor Delivery, Reduced Administrative Lead Time/Production Lead Time </li></ul>
  6. 6. Transformational Change Consolidate Procurement of DLRs <ul><ul><li>Disestablishes 3 Service ICPs through Consolidation </li></ul></ul><ul><ul><ul><li>FT Monmouth, Ft Huachuca, Rock Island </li></ul></ul></ul><ul><ul><ul><li>Establishes Aberdeen as a New ICP Site </li></ul></ul></ul><ul><ul><li>Transfers essentially all Consumable Item Management to DLA </li></ul></ul><ul><ul><li>Keeps Engineering Functions with Components </li></ul></ul><ul><ul><li>Realigns Procurement Management Responsibility of Class IX Depot Level Reparables (DLRs) to DLA </li></ul></ul><ul><ul><li>Achieves Savings Through </li></ul></ul><ul><ul><ul><li>Reduced Inventory Investment </li></ul></ul></ul><ul><ul><ul><li>Leveraging Larger Purchases </li></ul></ul></ul><ul><ul><ul><li>Increased use of Performance Based Agreements (PBA) </li></ul></ul></ul>
  7. 7. DLR Procurement Management Consolidation Hill ICP Tinker ICP Albany ICP Warner Robins ICP DSCR Richmond DSCC Columbus NAVICP Philadelphia Redstone ICP Ft. Monmouth ICP Ft. Huachuca ICP Lackland ICP Rock Island ICP Detroit Arsenal ICP Soldier Sys. Center Natick NAVICP Mechanicsburg Aberdeen Proving Ground DSCP Philadelphia BRAC Disestablished ICPs All ICPs except Lackland transfer DLR procurement and almost all consumable management to DLA
  8. 8. DLR Procurement Management
  9. 9. Depot Level Repairables Depot Level Repairables S E R V I C E S D L A DLR Procurement Management Consolidation Consumable Item Transfer <ul><li>Acquisition Strategy Development </li></ul><ul><li>MOA / MOU </li></ul><ul><li>Host / Tenet Agreements </li></ul><ul><li>Governance </li></ul>Consumable Item Transfer <ul><li>HCA/SPE </li></ul><ul><li>Contract Administration </li></ul><ul><li>Transfer in Place of Personnel </li></ul><ul><li>New DLR Procurements </li></ul><ul><li>Contracting / Policies & </li></ul><ul><li>& Procedures </li></ul><ul><li>Labor / Materiel Reimbursed by Services </li></ul>Gained Joint Collaborations Retained <ul><li>Validate Asset Levels </li></ul><ul><li>Coordinate </li></ul><ul><li>Contractual </li></ul><ul><li>Information </li></ul><ul><li>Special Program </li></ul><ul><li>Requirements </li></ul><ul><li>Airworthiness Responsibility </li></ul><ul><li>Tech Support </li></ul><ul><li>Engineering Authority </li></ul><ul><li>Mgmt of Design Unstable Items </li></ul><ul><li>Requirements Mgmt </li></ul><ul><li>Funding for DLRs </li></ul><ul><li>Program Mgmt </li></ul><ul><li>Logistics </li></ul><ul><li>Engineering </li></ul><ul><li>Repair of Repairables </li></ul><ul><li>Stock, Store and </li></ul><ul><li>Issue </li></ul><ul><li>Requirements Determination </li></ul><ul><li>Contracting </li></ul><ul><li>Budget / Funding </li></ul><ul><li>Cataloging </li></ul>
  10. 10. Leveraging Best Business Practices Army Process Improvements Navy Air Force Marine Corps DLA Prime Vendor Contracts Leverage Industrial Capability Leverage DoD Spend Cost Wise Readiness to Warfighter Relationship Spectrum Strategic Supplier Alliances Supply Chain Alliances Partnership Agreements Performance Base Logistics Corporate Contracts Privatization Industrial Base Industrial Base Industrial Base
  11. 11. Consumable Item Transfer <ul><li>Decision </li></ul><ul><li>Transfer Budget/Funding, Contracting, Cataloging, Requisition Processing, Customer Services, Item Management, Stock Control, Weapon System Secondary Item Support, Requirements Determination, Integrated Materiel Management Technical Support Inventory Control Point functions for Consumable Items…(including oversight) to DLA. All other ICP Functions remain with the Components. </li></ul>Saves DOD $ by Leveraging all Procurement Buys and Managing them within a Single Agency!
  12. 12. Consumable Item Transfer Impacts <ul><li>Consumable Items Transfer (CIT) to DLA </li></ul><ul><ul><li>Updates long standing CIT Initiative </li></ul></ul><ul><ul><li>Well established Logistics Reassignment Process Exists </li></ul></ul><ul><ul><li>Integrated Material Management Committee (IMMC) Oversees </li></ul></ul><ul><ul><li>Nuclear, SUBSAFE, Special Program and Design Unstable Consumables excluded from CIT Consideration </li></ul></ul><ul><ul><li>IMMC Reviewing Item Management Codes for Consumables to Transfer </li></ul></ul>
  13. 13. BRAC 2005 DECISIONS <ul><ul><ul><li>Commodity Privatization </li></ul></ul></ul>Supply, Storage & Distribution Management Reconfiguration NPV $.74 B Over 20 years <ul><li>DLR Procurement Management Consolidation </li></ul><ul><li>(Consumable Item Transfer) </li></ul>NPV $1.9 B Over 20 years NPV $2.9 B Over 20 years
  14. 14. Supply, Storage & Distribution Reconfiguration Decision Reconfigure Wholesale Storage and Distribution around Four Regional Strategic Distribution Platforms (SDPs). Realign remaining DDs as Forward Distribution Points (FDPs) and consolidate their Supply and Storage Functions, and associated Inventories with those supporting Industrial Activities such as Maintenance Depots and Shipyards Enhance Deployment & Sustainment of Expeditionary Forces Reduce Excess Capacity Eliminate Unnecessary Redundancy
  15. 15. Retail Supply Operations Impacts <ul><li>Repair Depot Supply Operations to DLA </li></ul><ul><ul><li>Centralize all Depot Level Maintenance Supply, Storage and Distribution Functions </li></ul></ul><ul><ul><li>Attrite Duplicate Industrial Inventories </li></ul></ul><ul><ul><li>Eliminate Levels of Inventory </li></ul></ul><ul><ul><li>Better Visibility of Demand Patterns </li></ul></ul><ul><ul><li>Potential for Additional Infrastructure Reduction </li></ul></ul>
  16. 16. Strategic Distribution Platforms (SDPs ) Impacts <ul><li>Two New (total of four) SDPs </li></ul><ul><ul><li>One-Day High Priority Delivery </li></ul></ul><ul><ul><ul><li>Closer to the Customer-Shorter Line-Hauls </li></ul></ul></ul><ul><ul><ul><li>Greater use of Dedicated Trucks </li></ul></ul></ul><ul><ul><li>SDPs Support focused on Customers within their Regions </li></ul></ul><ul><ul><li>New Consolidation & Containerization Points (CCPs) </li></ul></ul><ul><ul><li>New Shipping Patterns for OCONUS destined Materiel </li></ul></ul><ul><ul><li>Greater Surge Capacity – Choke Points Eliminated </li></ul></ul>
  17. 17. Forward Distribution Points (FDPs) Impacts <ul><li>12 FDPs to Support Industrial/Local Customers </li></ul><ul><li>Co-located with and Dedicated to Local Customers </li></ul><ul><li>Support Highly Tailored </li></ul><ul><li>Reduced Footprint </li></ul><ul><li>Reduced Off-Base Materiel Flows </li></ul>
  18. 18. BRAC Adding Efficiency Oklahoma City Barstow Corpus Christi Hill Puget Sound San Joaquin Cherry Point Anniston Warner Robins Albany Jacksonville Susquehanna Tobyhanna Columbus Norfolk Richmond Red River San Diego OCONUS Germany Italy Kuwait OCONUS Japan Korea Guam Hawaii Strategic Distribution Platforms BRAC SDPs BRAC FDPs Distribution Center OCONUS Distribution Center BRAC Closure
  19. 19. BRAC Adding Efficiency (Con’t) <ul><li>15.1 M sqft Warehouse Space </li></ul><ul><li>23.3 M Item Cube </li></ul>51.2 Million Square Feet 36.1 Million Square Feet Decreased Inventory and Warehousing Increased Support and Surge Capability CCP X 2 CCP X 4
  20. 20. BRAC 2005 DECISIONS <ul><ul><ul><li>Commodity Privatization </li></ul></ul></ul>Supply, Storage & Distribution Management Reconfiguration NPV $.74 B Over 20 years <ul><li>DLR Procurement Management Consolidation </li></ul><ul><li>(Consumable Item Transfer) </li></ul>NPV $1.9 B Over 20 years NPV $2.9 B Over 20 years
  21. 21. Decision Relocate Tire Supply Contracting Function from Detroit Arsenal and Hill AFB to DSC Columbus ICP. Relocate Supply Contracting Function for Packaged POL from NSA Mechanicsburg to DSC Richmond ICP. Disestablish all other Supply Functions and all Storage and Distribution Functions for Tires, Packaged POL and Compressed Gases . Target of Opportunity; Reduce Excess Capacity; Saves Money! Commodity Management Privatization
  22. 22. Commodity Management Privatization Impacts Commodities to DLA for Privatization <ul><li>Future Support Mechanisms, Levels, Surge Capability, etc. Addressed in Contract Vehicles </li></ul><ul><li>Warehouse Stocks Attrited </li></ul><ul><li>Warehouse Space Freed Up </li></ul><ul><li>Non-Ready For Issue Materiel Disposed </li></ul><ul><li>CONUS and OCONUS Support </li></ul>
  23. 23. BRAC Challenges <ul><li>Resources </li></ul><ul><li>Systems Integration </li></ul><ul><li>Aligning Business Models </li></ul><ul><li>Wholesale/Retail Integration </li></ul><ul><li>Interdependences </li></ul><ul><li>Savings </li></ul>
  24. 24. Summary <ul><li>Joint Collaborations Required </li></ul><ul><li>Opportunity to Further Align by Supply Chain </li></ul><ul><li>Implement Best Business Practices </li></ul><ul><li>Profound Effect on DoD Transformation </li></ul>Industry Support Is Critical Throughout Transformation
  25. 25. <ul><li>Questions ? ? ? </li></ul>
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