1. One Pass Pricing (OPP) SEPRT 12
Defense Supply Center Richmond
One Pass Pricing (OPP) SEPRT 12

2. Key Elements OPP is a streamlined alpha pricing process
The DLA prototype was developed with Honeywell, AZ
Underpinned by a Forward Price Agreement on the review and negotiation parameters applied to bottoms up cost (labor hours / material), rates (e.g. overhead, G & A) and profit.
Engages the primary stakeholders / decision makers:
Contractor – DCMA – DCAA – Contracting Office – DoDIG
Delivers real-time decisions / results
Subject to required approvals
Results:
Promotes pricing between 100 & 200 items per week
Average reduction in associated ALT of more than 75%
Over 15,000 items on contract as a result of OPP

3. OPP - Program Action Plan
Indentify OPP Opportunities
Schedule review and target initial location / population to price
Perform OPP process steps (1) thru (4)
Improve the process, identify inhibitors and conduct lean event
Repeat step (1) thru (3) same location for successive add-on populations, and export to other sites.
Control by examining the process and establishing metrics for review

4. Opportunities OPP promotes: Currently 8 sites actively engaged in OPP
Efficient pricing
Economic resource utilization
Contract growth (especially in the spares environment)
Currently 8 sites actively engaged in OPP
Boeing (3) - Honeywell (3) - Parker - Sikorsky
SSA long term contract coverage is being reviewed
Within the SSA we are identifying opportunities:
E.g. – Items not on LTC with > 4 demands annually
956 NSNs
< 2 years inventory
Value $180M

5. OPP Roll Out One Pass Pricing Schedule Tier 1 – Active or Initiated
Boeing – Honeywell – Parker – Sikorsky
Tier 2 – Planned within next 6 months
BAE Systems – Eaton – Lockheed – Northrop
Tier 3 – Proposed within 12 months
Hamilton – Moog – Pratt – Rolls – Textron
Tier 4 – Year 2
ABS – CCC – GE – Goodrich – Smiths

6. OPP Program Office - POCs
Program Managers:
Brian Benfer
ph: (DSN )
Rodney Bonner
ph: (DSN )