NMLC’S NEW HEAD OF CONTRACTING ACTIVITY

(HCA) RESPONSIBILITIES

Gilbert HovermaleDirector, Acquisition Management

NAVMEDLOGCOM

Background

• NAVSUP N7, BUMED M8 and M4, NMLC meeting of 04 Jan 2012• NAVSUP asked BUMED to assume greater responsibility for medical contracting• Aligned with Supply Chief’s “Let Commander’s Command” philosophy

• Revised NAVSUP Instruction 4200.81G issued 27 Jan 2012• Authorized NMLC to redelegate procurement authority to Navy Medicine activities• Authorized NMLC to establish a PPMAP program

• NAVSUP ltr to CO, NMLC dated 29 Feb 2012• Granted Head of Contracting Activity (HCA) authority for Navy Medicine• Directed NMLC to establish PPMAP and Government Purchase Card (GPC)

programs

Plan of Action and Milestones

• Establish manpower requirements• Define positions and structure 1 June 12• FTE Control relief and authority to hire 1 Oct 12• Execute hiring actions 1 Jan 13

• Establish a budget• Estimates by 1 Jun 12• Program Budget Decision supporting functional transfer executed 1 Oct 13

• Negotiate mission/function transfer resources with NAVSUP by 1 Sep 12

• Establish PPMAP procedures in accordance with NAVSUP Inst 4200.82• Current PPMAP capability by 1 Jun 12

• Establish enhanced PPMAP procedures• Additional capability by 1 Nov 12

• Perform PPMAP Ride-Alongs during transition year• Issue new authority letters and assume responsibility by 31

Mar 13

PPMAP Responsibilities

CURRENTGrant procurement authority Assess Simplified Acquisition

compliance with NAVSUP Instruction 4200.85

Assess ordering compliance with NAVSUP Ordering Officer Guide

Assess GPC compliance with NAVSUP Instruction 4200.99.

Provide training, advice, and acquisition research support for cognizant procurement offices.

ENHANCEDAssess compliance with

BUMED FIP SOPs related to contracting

Assess compliance with Prime Vendor/ECAT ordering guidance

Assess effectiveness of COR function

Assess effectiveness of audit readiness Key Control Activities

Provide sourcing optimization recommendations

Key Takeaways

• NMLC has been granted Head of Contracting Activity (HCA) authority for Navy Medicine.

• HCA authority means NMLC can delegate and/or rescind procurement authority for Navy Medicine contracting offices. This is a function previously performed by Fleet Logistics Center Procurement Performance Management Assessment Program (PPMAP) Offices.

• This initial phase pertains to CONUS activities only.• With the authority comes the responsibility to set up a Navy

Medicine PPMAP program.• Navy Medicine can leverage this capability to accomplish

related goals, including audit readiness and sourcing optimization.

• NAVSUP and NMLC will work together to execute this plan by mid-FY13

But wait, there’s more . . .

• An additional mission/function transfer• Medical non-personal services requirements previously

awarded by the Fleet Logistics Centers (primarily FLC Norfolk – Philadelphia Office) will be transitioned to NMLC

• What will the system of acquisition support look like for BUMED activities after this mission/function transfer?

FOR OFFICIAL USE ONLY6

The Basics – Medical Equipment

• Capital Investment Equipment• Equipment/system unit cost >/= $250,000• NMLC funded (OP) and managed

• Capital Expense Equipment• Equipment/system cost $100,000 - $249,999• NMLC or Command funded (OM)• NMLC managed

• Expense Equipment• Equipment/system cost < $100,000• Command funded (OM)• NMLC tech review required over $25,000

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The Basics – Medical Services

• Personal Medical Services• 90% of all contract medical services• Employer/employee relationship with contract

providers• Integrated care delivery model• Must be in support of the MTF

• Non-personal Medical Services• Contract providers supervised by contractor• Usually a segregated care delivery model

• Non-personal Medical Support Services• Medically unique non-clinical services• Records and appointment clerks, transcription,

coding, etc. 8

BUMED’s Acquisition Support System

• Local MTF Purchasing• Limited ordering authority (PV, ECAT, GSA schedules)

• Regional NMC Contracting• Medical commodities $150k open market, $1 mil

ordering

• NMLC (contracting and technical/analytical support)• All personal medical services • All capital investment equipment• Expense equipment not sourced elsewhere• Non-personal medical services after September 2013• Non-personal medical support services after September

20139

BUMED’s Acquisition Support System

• FLC Norfolk – Philadelphia Office• Non-personal medical services until October 2013• Non-personal medical support services until

October 2013

• Servicing FLC • Non-medical goods and services above local

authority

• Note for OCONUS activities:• Local FLC supports locally sourced requirements

(medical and non-medical)

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