Navy Packaging Board DID YOU KNOW? The yellow bar at the bottom is part of the approved template and should not be deleted. Must appear on the cover page, however additional pages thereafter are optional. presented by: Rick Arter 28 Nov 2012 First Destination Transportation & Packaging Initiative (FDTPI) Ready. Resourceful. Responsive!

Make ASTM-3951 commercial packaging DLA’s standard Use MIL-STD 2073 only as necessary Provide visibility of packaging costs Improve commercial to MIL-STD repackaging rates DLA Distribution provides MIL- STD repackaging as required FDTPI Overview First-Destination Transportation (FDT) First-Destination Packaging (FDP) Leverage DLA scale to improve transportation rates Provide visibility of transportation costs Consolidate 1st & 2nd destination shipments under Defense Transportation Coordination Initiative (DTCI) FOB Origin I/A at Destination (unless I/A Origin required by the material, as today) FDTPI Targets DLA’s Aviation, Land, Maritime, Industrial Hardware and C&E Supply Chains

FDP ROM BCA Packaging Assuming $4.1B in new procurement transactions flowing through the depots under the FDP program, the estimated potential savings are as follows: Additional Benefits:  Reduced Material Lead Times  Reduced Material Waste  Greater Control and Visibility of Packaging Costs Category Low Estimate High Estimate FDP Annual Savings $90M$120M Savings based on mature program. Savings from Centralized Packaging Management BCA Supporting Data CategoryEstimate Total Spend $7.0B Total Eligible Spend $4.1B FDP Saving of Total Eligible Spend 2.2-3% Total Eligible Packaging Spend $ M

Weapon System Designator Codes (WSDCs) = Specific Projects Federal Supply (Stock) Classes (FSCs) = Specific Classes National Item Identification Number (NIIN) = Specific Items Optional Packaging Indicators (OPI) = M (Mandatory) or A (Special Packaging Instruction or Procedural Packaging Instruction) Method of Preservation (MOP) = GX (ESDS) or HM (Hazardous) Critical Item Management (CIM) = CSI, ALRE, ICBM, IRPOD, ECBC FDP Material Selection What material characteristics are being considered for exclusion? All material is being considered unless there is a valid reason to require MIL PACK.

First Destination (DLA Procurement) Specified DLA Depot DoDAACs Specified DLA Profit Centers Customer Direct (CDs) aka Direct Vendor Deliveries (DVDs) will be bought with current packaging logic Second Destination (Repackaging DLA Stock for Customer Requisitions) Specified Destination DoDAACs / End Use (OCONUS, ocean bound, warzone) FDP Procurement Selection What procurement characteristics are being considered for exclusion? All procurements are being considered unless there is a valid reason to require MIL PACK.

Review of Defense Logistics Management Systems (DLMS) comments to PDC 1027 (may need DPPG support) Review Proposed Exclusions (may need DPPG support), Obtain Director Approval to Proceed Develop Implementation Plan Identify Initial set of Profit Centers and FSCs What’s Next for FDP? Upcoming Activities Your expertise will ensure that FDP reduces costs without adversely impacting the warfighter.

7  FDTPI: DLA Land & Maritime proposal to allow comm’l packaging (ASTM D3951) for DLA managed material for CONUS 1 st destinations  DLA Distribution will upgrade to Military Pkg. for OCONUS & afloat 2 nd destinations  $90-120m projected annual savings  Savings & repack costs not well captured/documented  Issues/Risks:  OCONUS & afloat requisitions referred to CONUS sites will require repack at Navy expense - cost not captured in BCA (several hundred/month)  Comm’l Packaging Standard:  vendor determines if requirement for preservation exists  vendor determines how to meet that requirement  no criteria for inspection or rejection by gov’t QAR  silent on ESD protection  allows for multiple interpretations, untested materials, varied pack configurations  Many in-scope items require corrosion protection even at CONUS1 st destination  Comm’l Pkg. Std. supports WalMart, Auto Zone business model – rapid inventory turn, no outdoor staging, benign storage environment, but out-of-scope for DoD stock material  and here  More sample text.  More sample text DID YOU KNOW? The default font for this template is HELVETICA. Call NMCI if you don’t have it and they will install it for you. Text should be blue. First Destination Transportation & Packaging Initiative (FDTPI)

 Status:  Navy non-concurred with Proposed DLMS Change (PDC) 1027 (IT implementer)  Navy Comm’l Pkg. exclusion list provided to DLA, includes: Nuke items, LI/SS, ESD, corrodible, bearings, engine components and others - DLA will adjudicate, date TBD  DLA to brief DASD/SCI & JLB, dates TBD  USA & USAF also non-concur exclusion lists provided to DLA  Briefed NAVSUP N3/N4 for coordination with DLA/Navy liaison  Proposed roll-out March 2013  Summary:  DLA wholesale savings projections unrealistic  Current & future costs not documented / captured  Cost shifted to the Services to repack mat’l for afloat & OCONUS customers  hundreds of req’ns/month will need repack at Navy retail sites  Commercial Pkg. Standard misapplied  Does not consider DoD physical distribution conditions  Potential for material degradation  Conflicts with ‘Super Reg’ DOD R, C8.7. First Destination Transportation & Packaging Initiative (FDTPI)