1 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT BETTER BUYING POWER (BBP) April 2015

2 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 2 BBP Objectives BBP encompasses the entire acquisition process, simply stated: all of DLA Aviation Aviation continues to lean forward meeting the intent of BBP –Some focus areas have greater applicability to our business model than others, but the themes apply universally –Apply BBP where it makes sense for our business Continuing the implementation of BBP includes: –Fostering a culture of valuing continuous improvement is central to our approach Challenge the status quo across the Agency Not limited to “procurement” –Achieving dominant capabilities through technical excellence and innovation –Strengthening our culture of: Cost consciousness Professionalism and Technical excellence

3 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 3 BBP Focus Areas Achieve Affordable Programs Achieve Dominant Capabilities while Controlling Lifecycle Costs Incentivize Productivity in Industry and Government Incentivize Innovation in Industry and Government Eliminate Unproductive Processes and Bureaucracy Promote Effective Competition Improve Tradecraft in Acquisition of Services Improve Professionalism of the Total Acquisition Workforce

4 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 4 Aviation BBP Focus Areas Achieve Affordable Programs Theme: –Execute contracts that deliver support to the warfighter within established resources Tactics: –Market Research Industry Indexes Strategic Supplier Alliances –Should Cost Analysis –Comprehensive Business Case Analysis Service Savings Department Savings –Innovative Acquisition Strategy Competitive Contract Types and Geometry –Aggressive and Informed Negotiations

5 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 5 Aviation BBP Focus Areas Controlling Lifecycle Costs Theme: – Develop contract strategies that control support costs over the expected horizon Tactics: –Strategies for obsolescence management –Performance Based Relationships Leverage sustainment planning and PBLs – Strategic Material Investment – Contract Type – Contract Geometry and Incentive Structure Material Cost reduction Cost Sharing – Strategy to retain competitiveness

6 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 6 Aviation BBP Focus Areas Incentivize Productivity Theme : –Drive improved productivity for Government and Industry partners - execution of the acquisition process and contract execution Tactics: –Target contract strategies, i.e. contract type and incentive structure –Team with customer/supplier to define requirements & identify innovative solutions –Leverage existing capabilities and best practices Customer, Industry & Government –Seize opportunities for continuous process improvement –Utilize performance measurement tools, e.g. Contractor Performance Assessment Reporting System (CPARS)

7 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 7 Aviation BBP Focus Areas Incentivize Innovation Theme: Drive innovation into our acquisitions through continuous process improvements Tactics: Foster supplier relationships –Early and frequent engagement both formally and informally, as appropriate Incentivize supplier resource efficiencies –Reduce costs –Reduce lead-times Optimize collaboration ensuring Government requirements and industry capabilities are aligned Identify and ensure continued use of industry best practices Partner with suppliers/customers on continuous process improvement opportunities

8 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 8 Aviation BBP Focus Areas Eliminate Unproductive Processes & Bureaucracy Theme: –Leverage continuous process improvements to challenge inefficiencies Tactics: –Eliminate redundancy –Increase automation –Challenge status quo –Empower decision making at the right level –Seek workforce feedback –Engage industry partners

9 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 9 Aviation BBP Focus Areas Promote Effective Competition Theme: –Foster competition to drive productivity and affordable programs Tactics: –Reverse Auctions –Reverse Engineering –Reduce License Agreements –Enhance Market Research –Enhance small business opportunities Including at the sub-tier level

10 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 10 Aviation BBP Focus Areas Improve Professionalism of the Total Acquisition Workforce Theme: Promote professionalism through education, training and experience Tactics: Professionalize the Life Cycle Logistics workforce Standardized DLA contracting officer warrant program DLA Aviation Rotation Program Tuition Assistance Program Specialized Training

11 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 11 Aviation BBP Focus Areas Improve Tradecraft in Acquisition of Services Theme: –Strengthen quality of service contracting Tactics: –Improve requirements definition –Enhanced Market Research Competitive Acquisition Strategy Increase small business participation Available from other Government sources and third parties Available to industrial entities contracting for similar services –Aggressive and Informed Negotiations –Enhance contractor performance Performance based metrics Strengthen contract management

12 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 12 References Honorable Frank Kendall and BBP 3.0 interviews : – /Better-Buying-Power-3-0http://archive.defensenews.com/videonetwork/ /Better-Buying-Power-3-0 – buying-power htmlhttp:// buying-power html BBP :

13 WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 13 DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT