Armor & Mobility

FEB 2017

Military magazines in the United States and Canada, covering Armor and Mobility, focuses on tactical vehicles, C4ISR, Special Operations Forces, latest soldier equipment, shelters, and key DoD programs

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customers to integrate 'PBL-like attributes' into our contracts. One of those attributes is incentives to achieve required outcomes and cost reduction initiatives. One of our goals is inventory reduction and con- tracts that include those attributes can help us achieve that—and, for us, inventory reduction means savings. With regard to financial stewardship, we're focused on continued transparency. I have to give credit to former DLA Director Navy Vice Adm. Mark Harnitchek for instituting cost summits. We've had seven of them so far. These cost summits open the books to our customers. It's up to our customers to make informed decisions about the levels of services they like and what the cost impact is. The summits have been a great tool; they help us better allocate our costs to the people who are generating them. Continuous process improvement is something I have preached since coming to DLA. I come from an industrial background and it's been my experience that all of my successes have been rooted in continuous process improvement. We have a number of enterprise events and a whole host of local events that are helping improve our processes. A&M: In addition to supporting the military services, DLA is focused on a "whole of government" strategy to support other federal agencies. What DLA capabilities can provide the most benefit to the federal government and what is your strategy to engage these federal agencies? Lt. Gen. Busch: First of all, my strategy to engage the federal agencies is not rooted in a business development approach. I am interested in finding willing partners. I am not driven by market share; if you're a willing partner for the products we have, I'd love to have you on board. We want to make sure that what we do makes good operational and business sense, not only for DLA but for our partners. DLA support extends beyond the Defense Department to other federal civil agencies such as Homeland Security, the State Department, Department of Energy and the General Services Administration. It comprises more than 20 percent of our non-energy business. We also support designated state and local customers. DLA is rec- ognized for our responsiveness in providing humanitarian assistance in times of crisis, both within and outside the continental United States. We've become a valuable partner in Defense Support of Civil Authori- ties operations. Our partnership with the Federal Emergency Manage- ment Agency is a prime example. We're now responsible for a wide array of commodities to support relief operations when a disaster strikes the homeland. Our seat at the FEMA National Response Coordination Center illus- trates how much they value our partnership and integration during times of crisis. FEMA established an incident support base at Maxwell Air Force Base, Alabama, to provide support to the people who were affected by the floods in Louisiana in 2016. FEMA requested our assistance in the operation; we were proud to support them and U.S. Northern Command in that endeavor. This is a typical example of the type of relationship we have with FEMA. We assumed responsibility for a line of equipment for fighting wildfires. We've done a great job of developing new sources of supply and are doing exceptionally well getting the equipment to the wildfire fighting teams. We're starting to see that the state wildfire teams are looking to our supply chain because it's established and predictable. There's a great video on YouTube highlighting our support to firefighters: https://www.youtube.com/watch?v=cakj4nOcQGs&feature A&M: From a Service-specific perspective, speak to ways DLA is facilitating improvements in supply chain legacy and newer technology- driven efforts. Lt. Gen. Busch: One way we're doing that is by executing more performance-based logistics contracts. I have provided specific guidance to our hardware centers requiring some of them to execute between three and five PBL initiatives by the end of fiscal year 2017. We continue pursuing business relationships that add PBL-like fea- tures into contracts. For example, we need to be able to define key per- formance parameters that incentivize the contractor to extend beyond traditional parts support. That PBL-like attribute helps us get closer to our inventory reduction goal. My end goal is to see if we can find willing partners in industry and the military services who might want to move toward a reliability-based goal. We could ask for parts that last 400 hours instead of parts that only last 200 hours. I also want us to get involved earlier in the weapons systems acquisi- tion process. I don't want to have to wait until we get into operation and sustainment before we do something. It's up to DLA to define the PBL era; we are achieving small victories but we need to keep pushing to find additional willing partners. As we continue to prove ourselves in some of our smaller PBL efforts, I am confident bigger efforts will follow. TARDEC TACOM LCMC www.ndia-mich.org MDEX HOME OF THE U.S. ARMY DETROIT ARSENAL www.ndia-mich.org April 26-27, 2017 Warren, Michigan ARMY CONTRACTING CENTER • Showcase Your Capabilities • Meet Leaders and Decision Makers • Learn Army Needs PEO CS&CSS, GCS, SOLDIER DIRECTOR'S CORNER www.tacticaldefensemedia.com 8 | Armor & Mobility | February 2017

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