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Troop Support Update

November 14, 2003

Marine Corps / DLA Day

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Agenda• Overview of Supply Chains

• Cost Recovery Rate• Performance Metric

• Subsistence• Business Profile• Performance Metrics• Common Food Management System

• Medical• Business Profile• Medical Performance Metrics• CSART Finding

• Clothing & Textiles• Business Profile• Marine Corps Combat Utility Uniform Status• Best Practices

• Construction• Business Profile• Initiatives

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Troop & General SupportDSCP Supply Chains

Food Service Produce Operational Rations Kitchen Equipment & Supplies

Recruit Clothing Organizational Clothing & Individual Equipment

Pharmaceutical Medical/Surgical Equipment

Facilities Maintenance Equipment

SUBSISTENCE CLASS I CLOTHING & TEXTILE CLASS II

Construction & Barrier Materiel Class IV

$247M in Sales

$124M in Sales

$65M in Sales

$49.5M in Sales

MEDICAL CLASS VIII

Average Customer Wait Time is 6 Days

Average Customer Wait Time is 6 Days

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Troop Support CompositeCost Recovery Rate

16.7

15.6

12.9

10.510

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14

16

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FY01 FY02 FY03 FY04

Cost Recovery Rate

Percent

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T r o o p S u p p o r t P r im e V e n d o rF i l l R a t e s

9 0 9 5 1 0 0

F Y 0 1

F Y 0 2

F Y 0 3

M e d i c a l S u b s i s te n c e

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Subsistence

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FY03 Subsistence SalesMarine Corps

OperationalRations$157.8M

$247M

Food Service$79.6M

Produce$9.4M

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Directorate of SubsistencePrime Vendor Fill Rates

Sep 2003Sep 2003

EuropeTWI (north)Ebrex (south)

Middle EastBMMI (Bahrain)Seven Seas (UAE)

PacificFSA (Alaska)Sysco (Alaska)Coastal Pacific (Japan)FSI (Okinawa)Quality Foods (Guam)USFI (Korea)Y Hatta (Hawaii)

CONUSNortheastSoutheastCentralWestShips

98% or above 97-90% below 90%98% or above 97-90% below 90%

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OIF Theater Distribution Center Executive Agent (EA) in Practice

• PWC - Subsistence Prime Vendor in Kuwait, acting as Subsistence Theater Distribution Center for OIF support

• Supporting both dining facilities and field feeding

• Military convoy mandated

• Subsistence Distribution Center (SDC) planned in Anaconda, Iraq

• Full range of subsistence (FF&V, dairy, rations, supplements, market ready, water, holiday items, etc.)

• Transition to all prime vendor anticipated next 3 to 4 months

PWC

Subsistence Prime Vendor Tiger Team in theater!

SDC

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Unitized B rations

• USMC hot, prepared meal• UGR A not viable due to refrigeration requirements• Equipment conflicts with Marine Corps

on the move mission

• Military unique entrée – freeze dehydrated meat• USMC only user• One commercial supplier of entrée• Efforts underway to contain more commercial

components

• Changing from 100 person configuration to 50 person SBCCOM, DSCP and HQ USMC working on getting more commercial, 50 person configuration fielded in FY04 0

2

4

6

8

10

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FY02 FY03 FY04

$5.6M

$11M$8.4M

Sales @ Standard

projected

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DoD Approved Ordering SystemSubsistence Total Order & Receipt Electronic System

(STORES)

Six Service SystemsSix Service SystemsArmy Army • • Air Force (2) Air Force (2) •• Navy (2) Navy (2) •• Marine Corps Marine CorpsPlus… Hospitals Plus… Hospitals •• Child Care Child Care •• Other Non DoD Other Non DoD

STORESSTORESCatalogs Catalogs •• Orders Orders •• Receipts Receipts

DAASCDAASCVANVAN DSCPDSCPDFASDFAS

SuppliersSuppliersPrime VendorPrime VendorMarket ReadyMarket ReadyDSO (produce)DSO (produce)DSCP (rations)DSCP (rations)

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Common Food Management System(CFMS)

• Services agree to develop one common web-based system tied to the Subsistence Total Order & Receipt Electronic System (STORES) and BSM to replace existing Service systems

• Moving to replace STORES with STORES Web

• DLA supports CFMS and has approved funding FY04 thru FY09

• Deployment scheduled FY05 thru FY08

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Medical

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• Depot NSNs $18,869,528• Direct Vendor Delivery 8,780,832• Prime Vendor 13,888,888• Equipment 5,247,445• ECAT

1,969,903• Vendor Managed Inventory 708,328

DSCP MedicalSupport to Marine Corps

$49.5M in FY03

• USMC Contingency Materiel Investment• Invested $425K in Marine Corps Funding Vendor Managed Inventory Program:

•Gain access to 170 lines of Pharmaceutical items valued at $2.9M + 184 lines of Medical/Surgical product valued at $900,000

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Medical MaterielPrime Vendor Fill Rates

Sep 2003Sep 2003

Europe Pharm

Med/Surg

SWAQATAR

Pacific Alaska Hawaii PAC

CONUS Northeast Northwest MidAtlantic * Southeast Gulfsouth Heartland Southwest Central 1 Central 2 National Capital Southern California ** Golden Gate

>/=95% Pharm >/=90% Med/Surg>/=95% Pharm >/=90% Med/Surg

* Camp Le Jeune… 92% Med/Surg, 95.2% Pharm** Camp Pendleton…92% Med/Surg, 99.3% Pharm

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Deployment ActivationUSNS Comfort

• Initial Deployment• Requisitions – 5,302 total, 1,633 planned, 30% planned overall

• 3 ½ working days to complete

• 500 pallets on-board when ship sailed

• Project closed out at 99% fill

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Combat Support Agency Review Team Medical Finding

Finding • “Exclusive reliance upon medical prime vendor suppliers

increases the risks of not meeting surge requirements for a large-scale contingency.”

Recommendations• Execute a medical exercise to test PV surge capability• Develop broad scope medical PV contracts• Submit a by exception Joint Quarterly Readiness Review (JQRR)

identifying medical PV risks Evaluation

• DLA contracted with Logistics Management Institute (LMI) to execute the surge capability test. LMI studied the results of Operations Enduring Freedom (OEF) and Iraqi Freedom (OIF)

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CSART Recommendation 1 Execute a PV surge testLMI Assessment: PVs passed the OEF/OIF test

Commercial partners met requirements CSART Recommendation 2

Develop broad scope PV contractsLMI Assessment: Commercial support is a strength not

weakness DSCP established broad scope contracts since the mid 80’s

(burn cream) Warstopper funding – key enabler since early 90’s Medical Contingency file – information system enabler, late

90’s, key to capturing Service requirements

Combat Support Agency Review Team Medical Finding (Con’t)

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CSART Recommendation 3 Submit By-Exception JQRRLMI Assessment: Gaps exist in the supply chain—not

performance/supply availability Medical Directorate discussed CSART in Joint Quarterly

Readiness Review October 2003 Gaps are requirement determinations by Services and in the

transportation pipeline, not PV performance The solution to Combatant Command concerns will require

establishment of clear operational roles, responsibilities and relationships; effective program management; interoperable information systems; and accountability for performance – Class VIII Executive Agent

Combat Support Agency Review Team Medical Finding (Con’t)

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Clothing & Textiles

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CLOTHING & TEXTILES SUPPORT TO THE MARINE CORPS

• Recruit Clothing: $60M• Examples:

• Boots $18M• Dress Coats $8M• Dress Shirts $4M

• Organizational Gear: $36M• Examples:

• Cold Weather Gear $9M• Helmets $5M• Sleeping Bag System $3M

• Readiness Items: $28M• Examples:

• Tentage $20M• JSLIST $8M• Chem Glove $3M

The C&T TeamMeets regularly With the USMC

PM to Coordinate Delivery and

Item information

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Clothing & TextilesMarine Corps Combat Utility Uniform

(MCCUU)

• USMC awarded contracts for manufacture and distribution of new camouflage uniform in JUL 01

• DSCP participated in the Source Selection Process

• Aug 2003 – USMC decided to transfer management of the MCCUU to DLA

• Initial meeting with MC to discuss transition – Aug 19, 2003

• Transition date based on Logistic Reassignment Process – Dec 1, 2003

• DLA will assume administration of current contracts 1 Dec 2003 and capitalize approximately $8M in inventory

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Clothing & Textiles Retail Integration

Recruit Center Initiatives

• DLA owns 100% USMC Recruit Center inventories• DLA-owned stock stored at each site

• Inventory levels set by USMC-DLA cooperative effort

• USMC billed only when recruit takes possession of clothing

• DLA-Apparel Research Network funds $21M for Program• Covers the Recruit Centers for all Services

• Includes the software to handle the inventory

• Body scanner currently in use at both sites

• Support to automate the clothing issue recordCWT reduced

to 0 days – Stock is available when

needed!

USMC $10MRetail Inventory

Reduction

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When Cammies return to DLA,Can take advantage of

The sewing capabilities of KYLOC

• Supporting: Savings• Entire Army Guard - 362K Guardsmen $10M/year*• USMC Reserves - 40K reservists $300K/year*• Navy Reserves - 93K reservists $2M/year*• Seabees - 24K personnel $200K/year*• Amphibs - 3K $60K/year*• Currently expanding to Air Reserve

*Savings to ordering organization

Virtual Prime Vendor Kentucky LOC

DSCP managed Tailored Logistics

Package

The Kentucky Logistics Operation Center (KYLOC): Acts as DSCP’s subcontractor DSCP pushes stock to KYLOC warehouse Customers order via web, email, phone, fax Patches and name tags are sewn on Orders are kitted /shipped direct to customer KYLOC electronically tied to DSCP

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Best Practices - www.warfighter.net

“Regarding warfighter.net, due to limited size of Uniform Center at MCAS Miramar, we order small quantities on frequent basis. Service provided is excellent, mdse arrives in timely manner and we have very few problems with quality, quantity and billing.” USMC, MCAS Manager.

Web based technology similar to commercial sites Uses MILSTRIP or credit card View digitized photos; get points of contact Search by NSN, description, key word, Mil-Spec # Submit and track Discrepancy Reports (RODS) on

line

24 houron-line availability

Place Orders

Check Stock / Get Status Track Delivery

USMC Junior ROTC Market Basket

Camp Doha = $2M JR ROTC = $2.3M

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Construction & Barrier Materiel

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DSCP Construction Materiel Equipment Support to Marine Corps

DSCP Construction Materiel Equipment Support to Marine Corps

Major Programs FY 02 FY 03

Lumber $2.6M $6.6M

Containers $2.0M $4.4M

MRO $40.8M $44.1M

Barrier Material $1.8M $8.1M

Cots $0.4M $2.2M

Total $47.6M $65.4M

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86

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104

107

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0 20 40 60 80 100 120

Other Fed

USAF

USMC

USN

USA

DoD/DLA

USCG

Participating Customers, By Service

PROGRAM STATUSAll CONUS awarded as of 6/98Japan/Okinawa awarded 3/99Korea awarded 8/99Germany - awarded 7/00SWA – C2 Awarded 9/03SWA – Long Term Contract

anticipated award Nov 2003

0

50

100

150

200

250

300

350

400

450

FY99 FY00 FY01 FY02 FY03

MRO Sales (in M’s)

MRO Materials PV Program Status

393 Customers

EuropeEuropeRegionRegion

PacificPacificRegionRegion

HawaiianHawaiianRegionRegion

AlaskaAlaskaRegionRegion

NorthwestNorthwestRegionRegion

SouthwestSouthwestRegionRegion

North CentralNorth CentralRegionRegion

South CentralSouth CentralRegionRegion

SoutheastSoutheastRegionRegion

NortheastNortheastRegionRegion

SupplyCorp

Graybar

Universal

Procurenet Theodor Willie Intergraded

SupplyCorp

Supply Corp

Procurenet

Procurenet

Procurenet

Procurenet

Graybar

Graybar

Graybar

Procurenet

Graybar

Graybar+ SWA

52.7% of Business is with Small

Businesses

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DSCP tasked to obtain large USMC Class IV bill of materiel

DSCP prime vendors (lumber, metals, MRO) obtained 98% of required materiel within two weeks

Transportation bookings completed within one week

Part of requirement satisfied by forward positioned materiel

Transportation challenged items (concrete barriers, crushed stone, aggregate & cement) procured in theater by DSCP

Challenges in transportation process delayed receipt of materiel by the 1MEF

Class IV

Issues

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• Requirements need to be accurately defined and funded within acquisition and transportation lead- times• Forward positioning of materiel in AOR is invaluable

• Deliberate planning between DLA and Services is a must to ensure proper mix and quantity of materiel

• Estimated transportation lead-times need to accurately reflect all variables that delay the process• Critical requirements need to be reflected in Time Phased Force Deployment Data (TPFDD)

• Class IV often a lower priority

Class IV Lessons Observed

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• DLA/SEABEE working group established• Identify key issues regarding Seabee/I MEF support• Focus on timeline and process models

• Developing Performance Based Agreement

• DSCP identified as single point of entry for Class IV

Class IV The Way Ahead

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Logistics Support Innovative Programs Web Based Ordering 3PL Arrangements Stock Positioning

DLA Investments Vendor Managed Inventory Warstopper Funding Industrial Base Management Leveraged Buying Research and Development

Readiness Worldwide Distribution Capabilities Emergency Response Forward Presence / Prepositioning PV Surge / Sustainment

Services Split & Combined Deliveries Retail Management Information Technology Solutions Commercial Asset Visibility Collaborative Requirements

Determination

What We Want to Leave You With

Our Goal: A cohesive, responsive supply chain able to provide innovative logistics solutions

Our Goal: A cohesive, responsive supply chain able to provide innovative logistics solutions

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Troop Support

Any Questions ?

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