DLA Director Navy Vice Adm. Mark Harnitchek announced the winners of DLA’s Strategic Goals Awards, also known as the “Big Ideas” awards, for the first quarter of fiscal 2014.
“This quarterly recognition is designed to incentivize and recognize achievement and progress in reaching the ambitious goals we have set for the agency to significantly improve support to customers while dramatically reducing costs,” Harnitchek wrote in a memo announcing six winners.
DLA Aviation’s Honeywell Joint Opportunity Contract Team is recognized for significantly improving customer service. The team distinguished itself by awarding a long-term strategic contract with the Honeywell Corporation that ensures outstanding customer support and value for years to come. This nine-year indefinite delivery, indefinite quantity contract was awarded in October 2013. It has an estimated value of almost $4 billion and will eventually cover nearly 3,000 parts for 10 separate Honeywell business units. The provisions negotiated with Honeywell will drive savings of $46 million to the Department of Defense over the life of the contract.
DLA Troop Support’s DoD National Contracts Team is recognized for decreasing direct material costs. This team employed its exceptional planning and contracting skills to craft a six-year DoD national contract program that will reduce the cost of pharmaceuticals purchased by DoD customers by an estimated $548 million. The program is also designed to be funded by participating agencies, so it reduces costs without increasing DoD overhead. The reduced pricing made available in these awarded contracts is collectively projected to save DoD customers about $42 million annually. This equates to an estimated total DoD savings of $210 million over the life of these three contracts.
DLA Energy’s Operation Enduring Freedom Retrograde Support Team is also recognized for decreasing direct material costs. This team devised a solution that covered refueling requirements, reduced overall fuel costs to the government, and eliminated the need to deploy military manpower and fuel equipment. They were able to implement an into-plane refueling contract option that eliminated the need for the Air Force to deploy a tactical fuel storage system and fuel specialist to Mihail Kogalniceanu Airbase. Based on warfighter forecast requirements at the airbase, the projected fuel cost savings could exceed $14 million.
DLA Logistics Operations’ DLA-U.S. Transportation Command Support Division is recognized for decreasing operating costs. This team optimized supply chain operations in support of Operation Enduring Freedom by using sustained bi-directional flow. USTRANSCOM and DLA costs dropped 50 percent by using empty return flights from Afghanistan to bring customer cargo out of the country, resulting in more than $12 million total cost avoidance. The team provided support to the subsistence prime vendor transition by liaising with DLA Troop Support and USTRANSCOM to pioneer an end-to-end multimodal concept of operations for Class 1 movement, which reduced overall enterprise costs and shortened the supply pipeline by 50 days. DLA-T’s collaboration enabled transportation solutions to be presented to DLA Disposition Services for the movement of six excavators from Korea to Afghanistan, allowing for significant transportation cost avoidance estimated at $2.6 million.
DLA Distribution’s Bahrain Transition Team is recognized for rightsizing inventory. The team distinguished itself by transferring bulk inventory from off-base locations to a new contractor owned, contractor operated location. The entire transfer of inventory totaled 3,500 lines of stock valued at more than $35 million. The final tally was 98 truckloads of material, equal to more than 2,000 pallet positions of material and government-owned supplies and equipment. The team completed the entire move 30 days early, at a savings of more than $24,000 in truck contract costs. The team members processed 7,502 re-warehousing transactions for assets valued more than $37 million to the newly activated COCO Distribution Center. They relocated more than 2.7 million unclassified charts four weeks ahead of schedule and saved DoD more than $17,000 in facilities leasing expenses.
DLA Finance’s DLA Data Cleansing Team is recognized for achieving audit readiness. The team distinguished itself by taking actions to mitigate significant data-related audit readiness impediments. The DLA Enterprise Business System is the authoritative “book of record” for DLA financial transactions, and given DLA’s business volume, even small errors rates have left billions of dollars and millions of transactions hung up in the system. The team researched and analyzed everything from before fiscal 2010 and effectively segmented the data cleansing effort into logical categories, applying a tailored cleanup strategy that resulted in a more than 70 percent decrease in open sales order lines with associated dollars decreasing by more than $4 billion. Open obligation lines decreased by almost 95 percent with associated dollars decreasing by about $1.3 billion.