WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY
DLA Troop Support
Subsistence Supply Chain
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
1
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Agenda • Subsistence business overview • Operational Rations / equipment • Produce…fresh fruits & vegetables (FF&V)
• Market Fresh…bread / dairy / soda • Garrison Feeding (dining facilities (DFAC))
• Quality controls • Business opportunities • Wrap up and questions WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
2
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Subsistence Customers / Items
6 4 2 0
Customers: 12,000 Orders:
13M annually
Items:
65,000
Billions $4.0 $4.0
FY06
FY07
Sales $4.5
$4.8
$4.7
FY08
FY09
FY10
FY11 Forecast $4.199B
The Big Picture Inventory 600 400 200 0
Personnel / Vendors
Millions $428 $406 $367 $472 $434
FY06
FY07
FY08
FY09
Employees (auth):
330 civilian + 14 military
Suppliers:
405
FY10
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
3
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
FY10 Subsistence Business Warfighter $4.470B
+
Other $234M
=
Readiness Dividends • Forward presence • Surge & sustainment • Joint strategy • Information fusion • Total asset visibility
Navy $389M
Army $3.666B
$4.7 Billion
Produce $330M Rations $702M
Air Force $248M
Marine Corps $176M Non DoD $234M
WARFIGHTER SUPPORT ENHANCEMENT
Equipment $48M
Garrison Feeding $3.633B
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
4
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIPSUPPLY CHAIN LEADERSHIP
Focus on the Customer Agencies • • • • •
People • Installation food advisors
Army Navy Air Force Marine Corps Non DoD – – – – –
– Military facilities CONUS and OCONUS – Navy ships
• Command food advisors
Dept of Agriculture (USDA) Federal Bureau of Prisons Job Corps Veterans’ Homes FEMA
WARFIGHTER SUPPORT ENHANCEMENT
– Theatre of Operations
• Commissary managers
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
5
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIPSUPPLY CHAIN LEADERSHIP
Focus on Industry Who They Are
• • • • • • •
Full-line food distributors Food manufacturers Small business produce vendors Local dairies and bakeries Soda distributors Ration assemblers and component suppliers Food service equipment suppliers
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
6
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Contract Highlights • Tailored customer support contracts – Partnership between Gov’t and industry
• • • •
Supports contingencies and troop surge Highest quality products Competitive with commercial prices Contract oversight – Compliance with contract performance metrics – Transparency of all costs and suppliers – On-site audits
• Streamlined evaluation factors – Fewer factors on best value trade-off method – Low Price Technically Acceptable (LPTA) method
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
7
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Partnering with Customers & Industry • Joint Subsistence Policy Board (JSPB) • United States Dept of Agriculture (USDA) • United States National Guard • Natick Labs
We are ENGAGED! Networking = understanding requirements & capabilities
• Research and Development Associates for Military Food and Packaging Systems, Inc. (R&DA) • Prime Vendor Food Shows • US Army Veterinary Command WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
Supply Planning Demand Planning WORKFORCE DEVELOPMENT
8
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Tailored Operational Rations • Individual Field Feeding Program – Meal, Ready-to-Eat – Meal, Religious, Kosher/Halal – Meal, Cold Weather (MCW) – Food Packet, Long Range Patrol (LRP) – Tailored Operational Training Meal (TOTM) – Meal, Alternative Regionally Customized (MARC) • Group Field Feeding Program – Unitized Group Ration (UGR-A and Heat & Serve options) – Unitized B Ration (USMC only) – UGR-Express (UGR-E) • First Strike Ration (FSR) • Survival Rations (Food Packet) • Humanitarian Daily Ration (HDR) • Health & Comfort Pack (HCP) WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
The right product for the mission!
WORKFORCE DEVELOPMENT
9
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
CONOPS Feeding Plan Timeline (Condition Based) Standard
Ration Cycle
M-M-M
U-M-M
UGR (H&S) 34% Theater Ration Mix
MRE 100% MRE 66%
Facilities Deployment Days D+
Temporary < 24 Months Military LOGCAP
Expeditionary < 6 Months U-M-U w/one UGR (A) meal every third day
U-M-U
UGR (H&S) 56%
UGR (H&S) 34%
UGR (H&S)
MRE 33%
MRE 33%
MRE 20%
UGR (A) 11%
UGR (A) 33%
MKT, KCLFF, CK, Tents, Reefers 1-20 days
21-30
31-60
61-90
U-M-U
U-M-U
10%
UGR (A)+ 70%
UGR (H&S) 05%
MRE 15% UGR (A)+ 80%
MKT, CK, Unit Tents, Force Provider, Reefers
91-180
21 Day CONOPS Menu Force Provider, LOGCAP or Direct Contract 90 % Supported by SPV Platform 10% Combination of MREs, UGRs Condition based Force Provider LOGCAP & SPV
181 Days to 24 Months
Notes: 1. Ration Legend: MRE-M, UGR (H&S) or UGR (A) – U, UGR (A) with Short Order Supplemental Menus – UGR (A)+ 2. Units deploying into developed areas may move directly into the temporary standard depending upon their mission and the theater logistical capabilities at that location.
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
10
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Equipment Food Service Equipment
Field Feeding Equipment
• Refrigerators, dishwashers, coffee makers, ice machines…
• Modern Burner Unit (MBU), Tray Ration Heater (TRH), field kitchen spare parts & components…
• Dining facilities, ships
• Troops in training and in the field
• Commercial and modified commercial equipment
• Developed in coordination with Natick and Services for military use
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
1111
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Mounted Kitchen Trailer (MKT)
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
12
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Tray Ration Heating System (TRHS)
USMC WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
13
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Produce Customer Segments • Military troops, Navy vessels, ANG, Coast Guard – CONUS produce support provided under regional long-term produce contracts direct to dining facilities, piers – OCONUS produce support through local contracts, prime vendors, sealift/US airlift support
• US Dept of Agriculture School Lunch/ Tribal Reservation Programs – Partnership with USDA since 1994 – DLA Troop Support acts as acquisition and distribution agent – Support via regional long-term produce contracts – 47 states, approx 16,000 schools, 100 tribes – FY10 sales… $83.8M WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
14
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Produce Issues • Transition to long term contracts from decentralized field offices about 90% complete • Acquisition strategy to support small businesses to maximum extent • Utilize commercial operations – Seasonal items, local grown items, pre-cut items are very popular – Produce vendors have responded well to surge requirements, navy vessel load-outs
• 22 Reps provide forward presence for all Subsistence customer service issues
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
15
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Market Fresh Support • Bread & Dairy – Unique market… regionally focused based on local bakeries and dairy plants – Many local businesses with limited EDI capabilities – 185 long term contracts – Bread support… $20M annually – Dairy support… $16M annually
• Soda – 3 long term contracts…Pepsi, Coke, Foremost (Guam) – 31 individual catalogs WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
16
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
How is Subsistence Prime Vendor Different? Prime Vendor Support
Traditional Support
• Multiple order lead times
• 24 to 48 hour lead time
• New items twice a year
• New items weekly
• Basic staple items
• Tailored catalogs
• Limited items in system
• Refined no. of items
• Manage inventories • Stock in/stock out • Paper system WARFIGHTER SUPPORT ENHANCEMENT
• Manage vendors • Direct Vendor Delivery • Electronic Commerce
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
17
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Subsistence Prime Vendor (SPV)
CONUS
OCONUS
• 42 contracts • 36 prime vendors – Sysco, US Food Service, etc. – Existing commercial full-line food service infrastructure
• 3rd generation contracts in place • Supports Service Dining Facilities (DFACs), ships, Job Corps, Coast Guard, and other non-DoD • $541M annual estimate
WARFIGHTER SUPPORT ENHANCEMENT
• Existing infrastructure did not exist • 13 contracts • 11 prime vendors – Anham, Supreme, Ebrex, TWI, etc. – Third Party Logistics (3PL) companies developed food prime vendor infrastructure
• Supports DFACs, Forward Operating Bases (FOBs), Mobile Field Kitchens (MKTs), GFM storage and distribution (e.g. MRE) • $3.1B annual estimate
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
18
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Prime Vendor OCONUS We’re located where our customers are!
Germany
Italy Azores
Alaska
Macedonia Kyrgyzstan Afghan
Spain Jordan
Turkey
Korea
Kenya
Established platforms Potential platforms
Guam Okinawa
Djibouti Gulf of Guinea
Japan
• • • •
Kuwait Bahrain Qatar UAE
WARFIGHTER SUPPORT ENHANCEMENT
Hawaii
Panama
Singapore
21 platforms!
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
19
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAINFF&V/LMR/PV LEADERSHIP - Kuwait FF&V/LMR Turkey - PV Kuwait
H1 H2.1 H3.1 H4 H5
DFAC HUB SUPPORT
Courage/ Palace Mosel Airfield Q-West Marez/ Glory Tall Afar/Sykes
Dahuk
Dahuk
Arbil
FF&V/LMR Turkey - PV Kuwait C1.1 Victory Inn C1.2 Eagle Dayr azNest Zawr C2 Remagen C7 Warrior C8 Summerall J3 Kirkuk FT.SUSIE Ft. SYRIA Susie
1
1
10
2
5
Al Qaim
Samarra
AL ASAD
Taji
Diyala
Baqubah
Ar Ramadi
Baghdad BIAP
Fallujah TQ
Al Anbar
JORDAN
Wasit
Babil
Karbala
FF&V/LMR/PV - Kuwait
Al Hillah Al Kut
Al Kufa
SCANIA
An Najaf
• Previously supported 140 locations within Iraq & Kuwait Ar’ar
B6
TQ Ridgway
Al Amarah FF&V/LMR/PV
- Kuwait
K1 Tallil K2 Ceder II Maysan Dhi Qar As Samawah Ahvaz Ad Diwaniyah K4 6 TTM An Nasiriyah FLB CEDAR FF&V/LMR/PV - Kuwait B08 Duke Tallil Al Basrah G3 Al-Kut G4 Al Hillad Charlie 1 G6 Camp Echo 9 J9 Al Hilliah CPA Az Zubayr K3 Scania Safwan D16 WKALSU D17 Iskandaria NAVISTAR TAA VIRGINIA CEDAR
An Najaf FF&V/LMR/PV - Kuwait
• Future support to approx 29Al locations B10 Taqaddum
Dezful
Al Qadisiyah
22
- Combination of Forward Operating B2 Blue Diamond B3 Trailer Camp Al Fallujah Bases (Mobile Kitchen sites) B3.2 MEK Fallujah and Dining FacilitiesB4(DFACs) Camp Al Ramadi
KUWAIT
Rafha
TF145 WTF145 SAUDI ARABIA C3K FOB SAUDI ARABIA WARFIGHTER SUPPORT ENHANCEMENT Corregidor STEWARDSHIP EXCELLENCE
29-March-2006
Retro-grade of trucks back to PV warehouse
LSA ANACONDA
12
Ar Rutbah Camp Al Asad Camp al Asad Al H3 Qu’im
Camelot Mirage Oasis Desert Inn Warhorse N. Baqubah KMTB FOB Gabe FOBNormandy 336 MP
As Sulaymaniyah
FLB SPEICHER Salah ad Din FLB SYCAMORE
Karbala
A1.1 A1.2 A1.3 A1.4 C3 C3.D C11 C3B C3F C3I
Kirkuk
At Tamim
FF&V/LMR/PV - JORDON B1.1 B1.2 B07 H4
C5.1 CSM Cooke C5.2 Wrangler Inn
Ninawa
Volunteer Prosperity Ferrin/Huggins BIAP West CP Cuervo Dragoon Base Freedom Rest Phoenix Victory Base Victory Camp S Antelope Blackjack Pegasus Justice Baghdad CCF Baghdad Palace ISG TF626
Prime Vendor Iraq
Bashur
FF&V/LMR/PV - Kuwait
DIAMONDBACK Mosul
D1.1 D3 D4 D5.2 D7 D8 D11 Phoenix IRAN F1.1 F1.2 F2.1 F2.2 F2.3 F06 I J1 L TF626
Port of Shuwaikh
FF&V/LMR/PV -KUWAIT Kuwait J10 S. Team Basra EPW2 EPW2
WORKFORCE DEVELOPMENT
20
20
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Prime Vendor Afghanistan TERMEZ
Supports DFACs, Forward Operating Bases (FOBs) , Provisional Reconstruction Teams (PRTs), and Class IV Storage
MAZAR-E SHARIF
RC (W) DFACs, FOB, PRTs: 13
RC (N) DFACs, FOB, PRTs: 4 MES, MES, KDZ x2
RC-N
RC-C
BAGRAM HERAT KABUL TORKHAM
RC-E RC-W
PESHAWAR
SHARANA FARAH
BASTION
RC (C) and RC (E) DFACs, FOB, PRTs: 112 CL I Hub – Sharana CL I Warehouse – Kabul and Bagram CL IV Storage - Kabul
KANDAHAR
Supreme Facility
RC (S) DFACs, FOB, PRTs: 51 CLI Hub - Helmond CL IV Storage - KAF
CHAMAN
Major City
RC-S
WARFIGHTER SUPPORT ENHANCEMENT
Border Crossing DLA Class 1 reps and CORS located in BAF, KAF and Kabul
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
21
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Manufacturer Pricing Agreements (MPA) • Agreements with manufacturers to set pricing for products purchased by OCONUS SPVs – One price for all SPV contracts
• Prices determined fair and reasonable up-front – FOB origin (mfr facility) or FOB destination if nationally priced
• Monthly updates • Replace non-MPA items with MPA items on all SPV catalogs • MPA holders agree to be audited WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
22
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
FEMA Support • DLA executed an Interagency Agreement with FEMA Mar 2006 • DLA provides logistics support and is a full partner in disaster planning and exercises • DLA continues to build support on lessons learned from previous disaster support • DLA has a flexible worldwide presence – – – –
Commodity support that includes In -Transit Visibility on all shipments Defense Distribution Expeditionary Depot Contingency Support Teams DLA Liaison Officer
• DLA 2009 logistics support includes – – – –
Meals, Ready-to-Eat (MREs) Commercial MREs Commercial Shelf Stable Meals Humanitarian Daily Rations (HDRs)
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
New Orleans, Oct 22, 2005
WORKFORCE DEVELOPMENT
23
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Quality Audits & Food Defense • DLA Troop Support Food Defense Program • Operational rations – Quality systems audit program – Quality Systems Management Visits (QSMV)
• Prime vendor / produce vendor audits and QSMVs • ALLFOODACTS and recalls
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
24
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Business Opportunities • Recent awards – – – –
Japan SPV – Coastal Pacific Okinawa SPV – Food Services Inc. Poly Tray – Wornick and AmerQual Meal, Cold Weather / Long Range Patrol Ration- Wornick
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
25
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Business Opportunities • Upcoming awards – under evaluation – – – – – – – – – –
Europe SPV SWA SPV Hawaii SPV Various CONUS SPV zones Meal, Alternative Regionally Customized (MARC) Tailored Operational Training Meal (TOTM) MRE components Health & Comfort Pack Modern Burner Unit (MBU) Tray Ration Heating System
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
26
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Business Opportunities • New solicitations – – – – – – – –
OCONUS SPV – 2 (Afghanistan, Alaska) CONUS SPV – 24 regional zones Meal, Ready to Eat (MRE) Meal, Religious, Kosher/Halal First Strike Ration UGR-A UGR-E components Various Produce and Market Ready long-term contract
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
27
WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
What We Want to Leave You With • Dedicated, experienced workforce • Focus on processes and costs • Contingency support & war reserve management • Customer relationships • Tried-and-true industrial base • Working toward Service-wide systems and processes from planning to consumption
WARFIGHTER SUPPORT ENHANCEMENT
STEWARDSHIP EXCELLENCE
WORKFORCE DEVELOPMENT
28
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