Contract Administration DLA Aviation Supplier Operations Contract Administration Rob Baker Industry Day May 2018

Aviation Leadership/Org Structure Commander: Brig Gen Linda Hurry (USAF) Deputy Commander: Mr. Charlie Lilli (SES) Acquisition Executive/HCA: Ms. Cathy Contreras (SES) Director, Supplier Operations: Floyd Moore Deputy Director, Supplier Operations: CAPT Jacqueline Meyer Contract Administration, Division Chief: Rob Baker Deputy Division Chief: Cynthia Jackson 3 Branch Chiefs – GS-13’s – 45 administrators per Branch 12-Section Supervisors – GS-12’s

Aviation OEM - Administration OEM, Division Chief: Carlos Pillot 2 BRANCHES/4 SECTIONS WITHIN THE DIVISION 50 Contract Administrators OEM Divisions - Original Equipment Manufacturer Directly supports our 18 Aviation Strategic Supplier Alliance (SSA) Partners: Boeing Bell Sikorsky GE, etc. Aligned with OEM Pre-Award ISTs Aligned with Supplier Relationship Managers (SRMs) Participate/Support Joint Steering Groups Participate/Support Executive Committee Meetings

Aviation Scope Of Operations Averaging 135,000 open contract lines per month 139,892 – valued at over $4.3B 3,540 different suppliers worldwide 16K contract administration actions per month 10K modifications per month 4K expedites per month 2K (QNs/ZTs/CPARS/CDRs/OPs) per month Airframes, Engines, Aviation Commodities (Bearings, Cables, etc.) Work assigned by alpha (A-AC)/CAGE code based on volume Average Lines Per Administrator: 700 lines (down 45% from 2014) Average Suppliers Per Administrator: 25-30 suppliers Aviation Scope Of Operations Note: Although not all lines have actions and flow through the system, there are many that are touched even if only an expedite request

"We Are Not Just Focusing on Percentages. We Are Focusing on RESULTS" Road to….  PO Lines *EOM Goal Current Mar 2018 PO lines >30 CDD 12,555 14,594 PO Lines >90 CDD 8,385 9,753 Resolved >OTD Goal: 90% PO Count Current EOM Jan 2018 Missed OTD 4,620 13.2% Made OTD 30,343 86.8% "We Are Not Just Focusing on Percentages. We Are Focusing on RESULTS" 11.5% 11.6% 12.0 % 12.9 % 12.7 % 11.3 % 11.7 % At a Glance: CDD = Contract Delivery Date Upper Left Corner : The Current months Goal PO Lines > 30 CDD and PO Lines > 90 CDD Per Month. The Current months PO Lines > 30 CDD and > 90 CDD. Delinquent Resolved: PO’s no longer on the PO Report. Upper Right Corner: OTD = (On Time Delivery)(Dorra Data) Missed OTD Contract Did NOT Deliver on Time Made OTD Contract Delivered on Time Data is supplied by Dorra Middle of Chart: Bar Chart tracking our Road to Success in meeting our Goals. Showing Open Pos, GRT CDD 30 Goal, GRT CDD 30 Open PO’s, GRT CDD 90 Goal, GRT CDD 90 Open Pos Lower Chart Points out our actual Numbers of Open PO’s and tracks the difference from what was expected to be our Goal and how well we are measuring up to it * Reduction of Purchase Orders >90 Days Delinquent “P90D” * Aviation Supply Chain “ASC” *Purchase Orders “PO” *On Time Delivery “OTD”*Greater Than “GRT”*End of Month “EOM *Month “MO”*Proactive Account Management “PAM” *Status Expedite Team “SET” *Validate Delivery Performance “VDP” *Delinquent “Delq”. Getting Contracts Delivered. % Box equals % of Delq POs GT 30 Days *END OF MONTH PREDICTIVE (Based on Steady Decrease to meet goal at end of FY) *OTD HAS A ONE to TWO MONTH UPDATE LAG, EXAMPLE EOM MAY WILL BE AVAILABLE EOM JUNE or JULY

DLA Aviation – Process Excellence Improving Internal Processes – Back to Basics PARs/QNs/FATs/PLTs/CDRs CPARs/OPs/ULOs/Contract Close-outs Consideration/Withdrawals Trade-Offs: Ensure we modify contracts (if we make a deal) Improved Internal/External Relationships Pre-Award/Quality/Material Planners DCMA Get it right the first time! Bi-weekly open order report to Suppliers Collaborating with DCMA Analyze volume/adjust – “Readiness Focus”

Aviation Standards/Expectations Quality Notifications (Non-conformance issues) Once assigned, QNs - 50 days 30% Reduction – March 2018 – lowest level 2018 ZTs (FAT/PLT/Textile testing, etc.) Once assigned, ZTs - 15 days Special Projects/High Viz – 5 days 22% Reduction – March 2018 – lowest level 2018 Contract Deficiency Reports resolved within 30 days Sent to administrators weekly 68% Reduction in Aged CDRs – March 2018 Modifications – 5 days

Aviation Site-Visits to DCMA DCMA Dallas – 2015 (most mature relationship) DCMA Baltimore - 2016 DCMA Detroit - 2016 DCMA Los Angeles – 2016 DCMA Dallas – Malone’s Trip - 2016 DCMA Central Command/AVN Summit-March 2017 DCMA Tampa – April 2017 DCMA Reg. Commanders Forum – Chicago – April 17 DCMA West Region Command – July 2017 DCMA Springfield, NJ – July 2017 DCMA Hartford – August 2017 DCMA Eastern Region Command – August 2017 DCMA Syracuse - Oct 2017 DCMA “A Day in the Life” at DLA Aviation (Richmond) – Oct 2017 DCMA Baltimore – March 2018

DLA Aviation/DCMA Lessons Learned/Way Forward Increase DLA collaboration w/DCMA on business decisions Ensure DCMA is represented on all DLA supplier engagements Establish Single DLA/DCMA “battle rhythm”: One Open order report One Government Team DLA HQ Post Award Summit Action Item Expand Engagements to all DLA Buying Commands Maturing the DLA Aviation/DCMA relationship Industrial Specialist + QAR + Contract Administrator = SUCCESS Aligning DLA to DCMA CMOs For those DCMA 500 or DLA Aviation high volume suppliers

How Can You Help DLA Contract Accuracy Accurate Proposals Communication Between Parties Accurate Proposals Bidding Within Supplier Capacity Effective Management of Subcontractors and Suppliers

Final Thoughts DLA can’t do anything without our Industry Partners DLA has to better understand Industry Both capabilities and limitations Proactive conversations vs. reactive Goal to increase DLA/Industry engagements to collaborate our resources/efforts to minimize duplication and deliver on time for the warfighter!

Questions Rob Baker, Division Chief, robert.baker@dla.mil Cynthia Jackson, Deputy Division Chief, Cynthia.Jackson@dla.mil