current environment of the dla clothing & textiles procurement-presentation

WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIPWARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP

1

DEFENSE LOGISTICS AGENCYAMERICA’S COMBAT LOGISTICS SUPPORT AGENCY

DEFENSE LOGISTICS AGENCYAMERICA’S COMBAT LOGISTICS SUPPORT AGENCY

WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENTWARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT

DLA Troop Support Clothing & Textiles

Col Jeanne [email protected]


2

• Who We Are

• How We Are Doing

• FY 11 Financial Analysis

• Final Thoughts

Agenda


4

DLA Troop Support Mission, Vision and Values

MissionWe accomplish the Defense Logistics Agency mission by

providing effective and efficient support to our warfighters and other customers with food, clothing, construction, and medical

solutions to achieve their global mission

VisionWarfighter-focused, globally responsive,

fiscally responsible supply chain leadership

Values• Warfighter needs guide us• Integrity defines us• Diversity strengthens us• Excellence inspires us

MissionWe accomplish the Defense Logistics Agency mission by

providing effective and efficient support to our warfighters and other customers with food, clothing, construction, and medical

solutions to achieve their global mission

VisionWarfighter-focused, globally responsive,

fiscally responsible supply chain leadership

Values• Warfighter needs guide us• Integrity defines us• Diversity strengthens us• Excellence inspires us

4



5

Clothing & Textiles Our Management Team


6

Clothing & Textiles contracting staff organized in Divisions by Product Group and Programs

• Organizational Clothing: Sharon Piecyk (215)737-8043

• Equipment & Tentage: Terri Scheetz (215)737-3274

• Special &Extremity Clothing: Kevin Peoples (215)737-5657

• Director: Col Jeanne Hardrath (215)[email protected]

• Deputy Director: Keith Ford (215)[email protected]

• Administrative Assistant:Irene Pirollo (215)[email protected]

• Small Business Office Mike McCall (215)[email protected]

Who To Contact


7

DLA TROOP SUPPORT SMALL BUSINESS OFFICE1 800-831-1110

Michael McCall -- 215 737-2321 [email protected]

Clothing & Textiles: Joann Gatica -- 215 737-5910

[email protected]

AbilityOne Acquisition Program SupportTyrone Lyles – 215 737-8484

[email protected]


8

The Big Picture

Clothing & TextilesCustomers / ItemsCustomers: 20,000Orders: 7.3M annually

average 600k monthly

Items: 48,000

Personnel / VendorsEmployees

(auth): *333 civilian+ 10 military

Suppliers:604

*includes 2 DLA Troop Support Europe & Africa positions

SalesBillions

$2.2 $2.0 $2.4 $2.5

FY11 Forecast$2.1B

$2.1

Billions

$1.5 $1.4 $1.5

Inventory

$1.6


9

Clothing & Textiles Sales

FY10$2.1BFY10

$2.1B$MillionsHistorical TrendFY10 Service Breakout


10

Small Business $914M

DLA Troop Support Share of the Business

FY10FY10

Other than Small Business $10.8B

Small Business $2.4B

Mandatory$609M

UNICOR $140M

FY11 thru DecFY11 thru Dec

Mandatory$75M

UNICOR $6M

AbilityOne$69M

NISH$337M NIB

$132M•JSLIST•Parka/Trousters•Cold Weather Shirts•Navy Working Uniform

•Army Combat Uniform (ACU)•Airman Battle Uniform (ABU) NISH

$51M NIB$18M•JSLIST

•Parka/Trousters•Cold Weather Shirts•Navy Working Uniform

•Army Combat Uniform (ACU)•Airman Battle Uniform (ABU)

AbilityOne Troop Support Contract Dollars: $469M

AbilityOne Troop Support Contract Dollars: $69M

AbilityOne$469M

Other than Small Business $711M


11

FY 10 C&T Share of Business

Small Business

Mandatory

$871M

$540M

$589M UNICOR

AbilityOne $450MNISH $326MNIB $124M

$139M

-

FY 2010 Most Active NISH Items:- JSLIST -- $121M- Fleece Jacket -- $46M- Mid Weight ECWCS Shirt -- $18M- Mid Weight Cold Weather Drawers -$14M- Wet Weather Poncho -- $12M - Microclimate Cooling Undershirt -- $11M - Wet Weather Parka -- $10M - Working Trousers -- $8M- Warehousing & Distribution -- $7M


12

DSCP C&T Industrial Base

• Small Business 45%• Mandatory Suppliers 34%

– NISH 23% of total– UNICOR 8% of total– NIB 3% of total

• Large Business 21%• FY 10 -- $540 Million Total Small Business Contract Dollars

-- HUBZone Small Business -- $155 million– Women-owned Small Business -- $64 million– Small Disadvantaged Business -- $82 million– Veteran-owned Small Business -- $112 million

• AbilityOne suppliers are a vital component of our domestic industrial base• In 2010, over 55% of clothing and textile contract dollars were awarded to

domestic small businesses • Many suppliers, including AbilityOne firms, met the rapidly escalating demand

during Operation Iraqi Freedom and Operation Enduring Freedom

NISH$326 million


13

Material AvailabilityClothing & Textiles

all Services


14

Unfilled OrdersClothing & Textiles

all Services


15

RTC Bag Fill RatesClothing & Textiles

Oct‐09

N D J F M A M J J A S Oct‐10

N D J F M

Army 99.9% 99.9% 100.0 99.9% 100.0 100.0 99.9% 99.9% 99.3% 99.3% 99.7% 99.4% 99.5% 98.9% 99.2% 99.6% 99.8% 99.7%Navy 85.6% 89.0% 96.0% 91.4% 91.0% 95.0% 79.6% 93.4% 94.1% 96.5% 98.5% 98.9% 97.8% 97.7% 97.4% 98.8% 99.7% 98.8%Marines 99.4% 99.7% 100.0 100.0 100.0 100.0 100.0 100.0 100.0 99.6% 99.5% 100.0 98.4% 98.8% 99.1% 99.4% 98.6% 98.4%Air Force 100.0 100.0 99.9% 99.3% 99.98 99.98 100.0 100.0 100.0 100.0 100.0 99.3% 100.0 100.0 100.0 99.6% 99.9% 100.0

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


16

Recruit Training Center PerformanceClothing & Textiles

• 5,600 NSNs are required to support all bag items at RTCs

First Time Fill RateMarch 2011 04-10 Mar 11-17 Mar 18-24 Mar 25-31 Mar Monthly Avg

Ft Jackson 98% 99.8% 100% 97% 99.1%

Ft Benning 99.8% 100% 100% 100% 99.9%

Ft Leonard Wood 100% 99.9% 100% 100% 99.9%

Ft Sill 99.8% 100% 100% 100% 99.9%

Ft Knox 100% 100% 100% 100% 100%

MCRD San Diego 99.3% 95.2% 100% 100% 98.6%

MCRD Parris Island 95% 98.1% 100% 100% 98.2%

Lackland AFB 100% 100% 100% 100% 100%

Great Lakes 98.4% 99.9% 99.9% 97% 98.8%

Weekly Total 98.9% 99.2% 100% 99.3% 99.4%


17

FY10 C&T Investment by Division

• Expenditure history– FY05… $2.088B– FY06… $1.613B– FY07… $1.900B– FY08… $2.086B– FY09… $2.637B

• Plan adjustments– Based on actual sales– Customer collaborative

forecasts– New item introductions

Adjustments made thru the use of automated demand and supply tools

Item GroupFY10Plan

FY10Actual

Dress Clothing 190.4M 192.7M

Field Clothing 533.7M 680.6MChemical/Outer Extremities 682.9M 605.7M

Individual Equipment 700.8M 522.4M

Total $2.107B $2.002B

17


18

FY11 Investment Plan vs. Execution

Plan will be impacted by DoD Budget Decisions

Item GroupOct-Mar

PlanOct-Mar

Actual

Mid-Yr Apr-Sep

Plan

RevisedFY11 Plan

Dress Clothing 71.5M 69.2M 92.8M 162.0M

Field Clothing 213.9M 129.4M 263.6M 393.0MChemical/Outer Extremities 205.5M 102.5M 215.7M 318.2MIndividual Equipment 590.3M 234.0M 722.8M 956.8M

Total $1.081B $525.1M $1.295B $1.830B


19

• C&T Sales are down– FY10 sales were lower than FY09– FY11 sales to date are over $230M lower than FY10 at

the same time• Customer Demand is down• Inventory, however, has remained steady• C&T obligations will decrease commensurate

with the reduced requirements

FY 11 Execution


20

• Now is the time to plan for future DOD business• You need to expect a reduced DOD budget in

FY12 and the out years• Drawdown plans and any revisions for Iraq and

Afghanistan will have a further impact the budget

The only thing certain about future budgets is that they are uncertain

FY 12 Outlook


21

"Meeting real-world requirements. Doing right by our people. Reducing excess. Being more efficient. Squeezing costs. Setting priorities and sticking to them. Making tough choices. These are all things that we should do as a department and as a military regardless of the time and circumstance.“

Defense Secretary Robert M. GatesAt the Pentagon, Jan 6, 2011

Efficiency

Sources: http://www.defense.gov/home/features/2010/0810_effinit/ andhttp://www.defense.gov/dodcmsshare/biography/hires_051909092929_Robert%20Gates%20-%20061212-A-5590K-001.jpg


22

“Ultimately, as leaders in government and industry, we owe it to the men and women in our armed forces to do all we can to provide them with the very best support to complete their mission and return home safely.”

Ashton CarterUnder Secretary of Defense for Acquisition, Technology and LogisticsSep 14, 2010

Efficiency

Source: http://www.defense.gov/home/features/2010/0810_effinit/


23

"Warfighter support is our organization's primary focus, but along with that comes the need to deliver products and services efficiently and to reduce prices.“

Vice Admiral Alan S. ThompsonDirector, Defense Logistics AgencyAug 25, 2010

Efficiency

Source: http://www.army.mil/-news/2010/08/26/44228-agency-works-to-ensure-every-dollar-counts/index.html and http://www.dla.mil/Leaders/director.aspx


24

In our joint quest to support our warfighters effectively and efficiently we must focus on the following• Vendor Past Performance• Product Quality • Product Value• Supply Chain Efficiency

Last Thoughts


25

This event features speakers from OSD and the Military Services, informative breakout sessions, and exhibits from DLA’s headquarters, field activities and major suppliers. The theme of this year’s conference is “Sustaining Warfighter Support while Reducing Cost”

Where: Greater Columbus Convention CenterColumbus OH

When: 27-30 June 2011

For further information or to request exhibit space see the Web site athttp://www.ndia.org/meetings/1780/Pages/default.aspx

2011 DLA Industry Conference

current environment of the dla clothing & textiles procurement-presentation

Documents

efficient support

special extremity clothing

medical solutions

deputy director

michael mccall

col jeanne hardrath

irene pirollo

keith ford