1. NMLC’S NEW HEAD OF CONTRACTING ACTIVITY (HCA) RESPONSIBILITIES
Gilbert Hovermale
Director, Acquisition Management
NAVMEDLOGCOM

2. Background NAVSUP N7, BUMED M8 and M4, NMLC meeting of 04 Jan 2012
NAVSUP asked BUMED to assume greater responsibility for medical contracting
Aligned with Supply Chief’s “Let Commander’s Command” philosophy
Revised NAVSUP Instruction G issued 27 Jan 2012
Authorized NMLC to redelegate procurement authority to Navy Medicine activities
Authorized NMLC to establish a PPMAP program
NAVSUP ltr to CO, NMLC dated 29 Feb 2012
Granted Head of Contracting Activity (HCA) authority for Navy Medicine
Directed NMLC to establish PPMAP and Government Purchase Card (GPC) programs

3. Plan of Action and Milestones
Establish manpower requirements
Define positions and structure 1 June 12
FTE Control relief and authority to hire 1 Oct 12
Execute hiring actions 1 Jan 13
Establish a budget
Estimates by 1 Jun 12
Program Budget Decision supporting functional transfer executed 1 Oct 13
Negotiate mission/function transfer resources with NAVSUP by 1 Sep 12
Establish PPMAP procedures in accordance with NAVSUP Inst
Current PPMAP capability by 1 Jun 12
Establish enhanced PPMAP procedures
Additional capability by 1 Nov 12
Perform PPMAP Ride-Alongs during transition year
Issue new authority letters and assume responsibility by 31 Mar 13
BPAs contain basic terms and conditions that form the overall agreement between the parties. Services are ordered by issuing task orders (sometimes called call orders) under the BPA. BPAs are useful vehicles because they don’t contain minimum guaranteed quantities. Commercial BPAs are limited to $550,000 per year, so we may need to issue new ones every year if they are successful. The national BPAs that ride on VA schedules are only limited by the maximum order limitation on the schedule itself, which is usually quite high.

4. PPMAP Responsibilities
CURRENT Grant procurement authority Assess Simplified Acquisition compliance with NAVSUP Instruction Assess ordering compliance with NAVSUP Ordering Officer Guide Assess GPC compliance with NAVSUP Instruction Provide training, advice, and acquisition research support for cognizant procurement offices.
ENHANCED Assess compliance with BUMED FIP SOPs related to contracting Assess compliance with Prime Vendor/ECAT ordering guidance Assess effectiveness of COR function Assess effectiveness of audit readiness Key Control Activities Provide sourcing optimization recommendations

5. Key Takeaways
NMLC has been granted Head of Contracting Activity (HCA) authority for Navy Medicine.
HCA authority means NMLC can delegate and/or rescind procurement authority for Navy Medicine contracting offices. This is a function previously performed by Fleet Logistics Center Procurement Performance Management Assessment Program (PPMAP) Offices.
This initial phase pertains to CONUS activities only.
With the authority comes the responsibility to set up a Navy Medicine PPMAP program.
Navy Medicine can leverage this capability to accomplish related goals, including audit readiness and sourcing optimization.
NAVSUP and NMLC will work together to execute this plan by mid-FY13

6. But wait, there’s more . . . An additional mission/function transfer
Medical non-personal services requirements previously awarded by the Fleet Logistics Centers (primarily FLC Norfolk – Philadelphia Office) will be transitioned to NMLC
What will the system of acquisition support look like for BUMED activities after this mission/function transfer?
FOR OFFICIAL USE ONLY

7. The Basics – Medical Equipment
Capital Investment Equipment
Equipment/system unit cost >/= $250,000
NMLC funded (OP) and managed
Capital Expense Equipment
Equipment/system cost $100,000 - $249,999
NMLC or Command funded (OM)
NMLC managed
Expense Equipment
Equipment/system cost < $100,000
Command funded (OM)
NMLC tech review required over $25,000

8. The Basics – Medical Services
Personal Medical Services
90% of all contract medical services
Employer/employee relationship with contract providers
Integrated care delivery model
Must be in support of the MTF
Non-personal Medical Services
Contract providers supervised by contractor
Usually a segregated care delivery model
Non-personal Medical Support Services
Medically unique non-clinical services
Records and appointment clerks, transcription, coding, etc.

9. BUMED’s Acquisition Support System
Local MTF Purchasing
Limited ordering authority (PV, ECAT, GSA schedules)
Regional NMC Contracting
Medical commodities $150k open market, $1 mil ordering
NMLC (contracting and technical/analytical support)
All personal medical services
All capital investment equipment
Expense equipment not sourced elsewhere
Non-personal medical services after September 2013
Non-personal medical support services after September 2013

10. BUMED’s Acquisition Support System
FLC Norfolk – Philadelphia Office
Non-personal medical services until October 2013
Non-personal medical support services until October 2013
Servicing FLC
Non-medical goods and services above local authority
Note for OCONUS activities:
Local FLC supports locally sourced requirements (medical and non-medical)