Session IX DLA Troop Support Leadership Update May 24 th , 2017 - PowerPoint PPT Presentation

Session IX DLA Troop Support Leadership Update May 24 th , 2017 Director of Subsistence DLA Troop Support Class I Subsistence 1

Making Logistics Happen 2

Agenda • Subsistence Mission • Subsistence Business • Prime Vendor Update • SPV OCONUS Solicitations • Subsistence Program Enhancements 3

DLA Troop Support Subsistence Mission To provide full service subsistence support for the readiness and mobilization needs of U.S. Military personnel and their families worldwide. Executive Agent for Class I Materiel 4

DLA Troop Support Subsistence FY17 Forecast Customers & Items Sales $2.39B $Billions 6 Customers: 27,000 4 $4.2 $3.4 Orders: 11.7M annually 2 $2.8 $2.3 $2.3 Items: 50,000 0 FY12 FY13 FY14 FY15 FY16 The Big Picture $Millions 800 Employees ( FY16 Actual): 290 civilian 600 $610 + 12 military 400 $449 $444 $425 $410 Suppliers: CONUS 421 200 OCONUS 87 0 508 FY12 FY13 FY14 FY15 FY16 Inventory Personnel & Vendors 5

FY ’17 Sales FY17 thru Mar Coast Guard MC $61.7M $1.1B Sodexo/MC $4.0M Air Force $37.8M $137.6M USDA $150.2M Rations Other $32.7M $211.9M Navy $210.6M Produce Army Garrison 202.M $560.6M Feeding $735.6M Equipment $22.2M Local Mkt Ready (Dairy, Bakery Soda) $23.5M 6

Subsistence Prime Vendor CONUS OCONUS Food Distributor 3PL companies Multiple customers in mature industry Government sole customer 41 contracts… 3 rd generation in place 14 contracts 10 prime vendors 10 prime vendors • Hartford Provision Co, Labatt, • Anham, Coastal Pacific, Ebrex, FSI, OFI, Merchants, Nicholas & Co, Pocono Pro Pacific Unlimited Inc, Seven Seas, TWI, Foods, Reinhart, Renzi, Shamrock, USFI, Y Hata Sysco, US Foods Supports Galleys and Dining Supports DFACs, Forward Operating Facilities (DFACs), ships and Coast Bases, Mobile Kitchen Trailers, GFM Guard storage and distribution (e.g., MRE) $767 M FY16 sales $661 M FY16 sales 7

SPV OCONUS Solicitations Geographic Area Estimated contract start date Korea Fall ’17 Europe Winter ’17/’18 Iraq/Kuwait/Jordan Winter ’17/’18 Japan/Singapore/Diego Spring ’18 Garcia/Philippines/Okinawa Southern Arabian Peninsula and Spring ’18 Eastern Africa Afghanistan Summer ’18 8

Subsistence Program Enhancements Situation/Requirement Current State *New Enhancements Customer input in development of Customer Engagement Limited SOW and participation on Tech for Requirement Panels Fill rate requirement of 98% on all Varies by contract (97% to 98%); Fill Rates OCONUS contracts; case count fill rate case or line-item fill rate New SPV required to purchase New SPV encouraged to purchase Residual Inventory residual inventory residual inventory (if it has been properly managed) No trigger point was identified for SPV required to airlift product at Not in Stock (NIS) when OCONUS SPV should plan contractor expense a direct airlift for NIS items if NIS projected > 21 days Prescriptive DOS requirements; 60, 75 or 90 DOS per line-item; Varied by OCONUS region and DOS Requirement DOS requirements driven by not based on line-item item shelf life; and customer requirements 9

Subsistence Program Enhancements Situation/Requirement Current State *New Enhancements Sourcing of local products KO can direct SPV to source local items at Local Sourcing OCONUS is encouraged no additional cost to the Government SPV required to have CONOPs plan; OCONUS CONOPs Testing was not required CONOPs must be tested after contract implementation Pertinent Cybersecurity clauses, Cybersecurity No coverage reporting requirements, COOP plan, and penetration testing Lack of standardization for DLA and Services partnered to develop a Joint Buyers Guide requirements Joint Buyers Guide DLA is supporting Improvements necessary to Healthy Initiative Armed Forces Recipe Division Service achieve Total Force Fitness with developing healthier menu options 10

US Navy Underway Replenishment 11 11

Subsistence Readiness… We Feed Our Nation’s Heroes! Ready, willing & able to meet warfighter needs around the globe 12

DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY 13 WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE