Defense Logistics Agency Acquisition

DefenseLogistics Agency Acquisition

Tableof Contents

Abstract 3

Purchasing and Acquisitions Management 4

Programs entailing Small Businesses 5

Local, State and Federal Government Programs 6

Materials 7

Operational Strategies (Goals and Objectives) 9

First Goal: Warfighter first 11

Second Goal: People and Culture 11

Third Goal: Strategic Engagement 12

Fourth Goal: Financial Stewardship 12

Fifth Goal: Process Excellence 13

Performance Measurement and Management in the Acquisitions Management 13

Environmental and Sustainable Programs 14

Summary 16

Conclusion 16

References 17

DefenseLogistics Agency Acquisition

Abstract

Thebuildup of America’s military back in World War II led to theestablishment of a Defense Logistics Agency to ensure rapidprocurement of large amounts of supplies and munitions. The aftermathof the war necessitated centralization of management of common andmajor military logistics. There was also the significance of theestablishment of uniform practices in financial management. Theintegration of supplies management and services was put intoconsideration, and a support center was established to controlidentification of supplies. A standard nomenclature ensured that allmilitary services purchased, issued or stored were well controlled.The Defense Department and military services highlighted consumablesn reference to the materials that were to be managed on an integralbasis. The consumables formed part of the supplies not repairable orthe supplies consumed normally. The consumable items also defined ascommodities were put under one military service for control andmanagement.

Withtime, various management practices were utilized to purchase issueand store supplies, manage inventories and establish the requiredsupplies for future use. Single managers handled These activities.Food and clothing were managed by the Army, medical supplies,industrial parts and petroleum were managed by the Navy while the AirForce managed electronic items.

TheDefense Logistics Agency was primarily established to eliminate stockand managerial duplication and thus reduce overhead costs. Thedefense Management Agency Acquisition manages operations andestablishment of procurement policy and is tasked with the oversightof millions of items. DLA purchases, stores, and supplies fuel, food,uniform apparel, medical equipment, surgical products, weapons, warequipment and other military services to their customers all over theworld.

Purchasingand Acquisitions Management

TheDefense Logistics Agency is a combat support agency working underDepartment of Defense and provides worldwide logistics and supportduring wartime and peacetime to the United States Military Services.The department also offers support to civilian agencies and also toforeign nations (Razzaqueand Hwee, 2012).The Defense Logistics Agency is tasked with the procurement,management, storage and distribution of all the consumable items themilitary requires as it carries its operations. Commoditiesincorporate maritime equipment, land weapons and support systems aswell as medical supplies (DLA,2016). Doing business with the Defense Logistics Agency entails variousstructures and frameworks as stipulated below:

CAGECodes

TheInformation Service department maintains the CAGE Code Master Fileunder DLA. The code, which consists of five positions is used toidentify contractors who are business associates with the FederalGovernment, foreign governments, and NATO member nations. The CAGECode supports various mechanized systems in the state and offers astandardized procedure of identifying a particular facility at agiven location. The CAGE Code can be used for clearance of afacility, identification of Debarred Bidders, pre-award survey, fastpay processes and automated bidders lists (Razzaqueand Hwee, 2012).

Contracting,policies, and procedures

Forany award consideration, one has to be registered with the CentralContractor Registration (CCR). Some stipulated policies andprocedures govern the operations while doing business the variousdepartments under DLA.

TheInternet Bid Board System

Thissystem is web based application and provides the capability forsearching, viewing and submitting secure quotes on supply items viaRequests for Quotations (RFQs). The DLA Internet Bid Board Systemalso enables users to view and search Research for Proposals (RFPs),Awards, Invitation for Bid (IFBs) as well as other information onprocurement associated with DLA.

Programsentailing Small Businesses

Themission of DLA incorporates small businesses which provide criticalresources and largely contribute to the accomplishment of the setmission by DLA.DLA welcomes all small businesses and gives them anopportunity to participate in the Defense Logistics Agencyacquisitions. The mission of the DLA is to &quotSupport theWarfighter.&quot Small businesses are provided with essentialinformation meant to educate them on procurement procedures andpractices as well as the requirements. The DLA department seeks towork with small businesses in the provision of the goods and servicesthat they purchase. These businesses are grouped under Women-ownedsmall businesses (WOSB), Small Disadvantaged Businesses (SDB),Historically Underutilized Business Zone (HUB Zone), and theVeteran-Owned Small Businesses (VOSB) and so on. Working with thesmall businesses will ensure the growth of the businesses and alsogrowth in supplies in future (Macphersonand Wilson, 2003).

Local,State and Federal Government Programs

DLAhas over the years provided the United States with a full spectrum oflogistics and support for the military services to continue withtheir operations. These include the food, medical supplies,construction equipment, uniform apparels, energy, fuels and spareparts. With such huge of support, the DLA has expanded to a logisticspowerhouse with a global touch on expertise and capability to solvechallenges and complex logistics faced by America as it strives toaddress the national security goals (DLA,2016).

Witha reputation for continued success, partnerships have been reached atwith various federal and state agencies to identify solutions. Thepartnerships are aimed to cut down the overall costs whileconsidering an increment in the logistics scope. They are also meantto leverage DLA`s global capabilities to focus on particularobjectives and core mission.

Notableevents and programs are as follows:

  • Defense Logistics Agency provided food supplies and fuel to the victims of Hurricane Isaac in 2012.

  • The Defense Logistics Agency support also provided supplies following Hurricane Sandy. The support supplies included meals, water, blankets and fuel.

  • On other programs, Defense Logistics Agency works to manage consumables with Coast Guard saving millions of dollars to the Department of Homeland Security. The costs saved emanate from contracts and inventory.

  • Several Federal Agencies work in close collaboration with DLA in the provision of warehousing and distribution services, and this eventually helps to reduce significant costs in the federal government.

  • DLA supports the US Forest Service through the Wildland Fire Protection Program. The program is enhanced through DLA overseeing over 300 items and the provision of end to end supply chain enhancement to over 30,000 firefighters in the nation.

Materials

The deals with a wide variety ofmaterials:

ConstructionEquipment and Materials

DLAprovides these materials and equipment through its Equipment andConstruction Supply Chain. The supply chain provides solutions to thelocal military and other customers. The support programs involveequipment for emergency support and protection. They also offertactical and communication equipment. Customers are provided withfacilities and materials for maintenance. The pieces of the materialare not only provided for land use but also for maritime operations.Contractual agreements are leveraged with suppliers to ensure thatthey are availed on time through rapid shipment.

Customersalso use the DLA Map Catalogue for aeronautical, hydrographical,digital and topographical services which include navigation andmission planning. The DLA also operates a subsistence supply chain inproviding food support to military worldwide. They have individuallypackaged meals packed in a soldier`s ruck-pack, ship`s galley as wellas full-service dining facilities.

Alsoin the supplies department is the industrial hardware supply chain.They provide industrial items such as screws, bolts, nuts, studs,washers, pins, nails, O-rings, and other repair parts. These elementsensure maintenance of equipment across sea, land, and sea. The supplychain commits to high-quality support with long term contractingefforts and service delivery both in the field and depot places.

DLAalso deals in Industrial plant equipment (IPE). These are machinetools in the Department of Defense meant for maintenance, design, andbuilding of weapon systems. These include ships, aircraft, missiles,tanks and so on.

Thereis also the medical supply chain that supports the military in timesof crisis. Warfighters are assisted whenever they have any assignmentto undertake. The medical supply chain ensures that essential andcritical medical, as well as pharmaceutical requirements, are inplace. Support include preventive vaccines, surgical items, fieldmedical equipment and also medical animal supplies.

Supportclothing and textiles

Thesupply chain involved in this category provides the necessary attireand equipment the United States service members, partner nations andfederal agencies. All the military personnel are outfitted throughthis supply chain. These personnel include airmen, soldiers, marinemen, sailors among others. They provide service dress uniforms andother camouflage uniforms when in the field operations (Razzaqueand Hwee, 2012).

StrategicMaterials

TheDLA department of strategic materials is tasked with the planning,analysis, procurement and management of military materialssignificant to national security. The agency has to ensure techniqueexpertise, analysis of geopolitical/global material supply,management, and the tracking of a wide range of future and existingcritical materials.

TheStrategic Materials department in DLA administers the execution andimplementation of critical and strategic materials. The department isresponsible for the acquisition, upgrade, rotation, and dispositionof stockpile materials. The duties involve security, storage,testing, quality studies, contracting, maintenance and replacement.The supply system requires that Strategic Materials department ensurethe development of new, revised and particular specifications andinstructions for the existing and proposed critical and strategicmaterials. Besides overseeing the National Defense Stockpile (NDS),the department administers and implements procedures and policies forthe Defense Logistics Agency Strategic Materials environmentprogram. Furthermore, the property and financial accounting systemsare also applied under this supply chain (Cinquiniand Tenucci, 2010).

OperationalStrategies (Goals and Objectives)

DLALogistics Operations has the responsibility of end-to-end supplychain management (SCM). The supply chains associated with DLA aremanaged through this body. The DLA Logistics Operations also provideslogistics and material process management policies, offer guidanceand oversight and conducts assessments continuously on the supplychain performance.

LogisticsOperations integrates operational, tactic and strategic perspectives.It also has control and command functions for contingency operationsas well as adaptive planning to influence the end-to-end logistics inthe supply chain. Logistics Operations serves as the principaloperational, tactic and strategic planner for Defense LogisticsAgency business operations. It champions best business formulationsand practices value added logistics solutions and EnterpriseBusiness System for warfighters (Taticchi,Tonelli, and Cagnazzo, 2010).The directorate is also given the mandate to oversee operationalcontract support, control the daily field activities besides engagingDLA directorates in gathering and interpreting clients’requirements for the agency.

Toensure optimized support of their customers worldwide, DLA LogisticsOperations enhances maximized readiness on logistics and power combatby leveraging enterprise solutions.

Tofulfill the mission of the agency, DLA operates through goals andobjectives. They have identified different target areas thatcomplement their mission and represent their commitment towardsensuring responsiveness and agility to the present and emerging needsfulfilling the anticipations of warfighters, valued customers andstakeholders. In achieving the goals, DLA has to explore and seizeinnovative opportunities to improve operations and the generalservice delivery consistently.

Thegoals are stipulated below:

  1. First consideration to the warfighter

  2. Financial Stewardship

  3. People and culture

  4. Process excellence

  5. Strategic Engagement

FirstGoal: Warfighter first

Thewarfighter support is given the priority. DLA assesses, anticipatesand strives to meet current and future requirements to thewarfighters. They partner with program managers in lowering lifecyclecosts and for major acquisition systems. Supply system risks areidentified and managed thus executing and sustaining the mission. TheResearch and development programs are also leveraged to infuseinnovations to the solutions based on customer`s priorities. Finally,putting the warfighter as the top priority demands formulation andimplementation of a whole government strategy aligned to theDepartment of Defense.

SecondGoal: People and Culture

Peopleand culture goal relates to hiring, developing and retaining ahigh-performing, flexible, valued and accountable workforce thatensures a sustained mission excellence. To accomplish the above goal,DLA fosters an environment and an organizational culture whereemployees are highly valued and perform excellently. The DefenseLogistics Agency also fortifies workforce resiliency and strengthensthe competencies of the workforce. All levels of the workforce areempowered, treated with dignity and valued whereas developing thetechnical capabilities significant to spur growth in the agency. Totap the top talent in the environment, DLA refreshes the hiringprocess using improved assessments to the candidates. Furthermore,DLA objectively bolsters leader competencies for effective leadershipin an expanding and a rapid dynamic workplace. To ensure consistency,DLA aims at developing and implementing a system for effectivemanagement succession for various key positions.

ThirdGoal: Strategic Engagement

Collaboratingwith stakeholders to incentivize innovation and productivity andeliminate unproductive business processes is a significant objectiveunder this goal. Incentivizing productivity and innovation areenhanced via performance –based acquisition methods andarrangements. To ensure achievement of this goal, DLA seeks to enableinnovative acquisition via an aligned, secure end-to-endinfrastructure on information technology and analytical tools. Due tothe evolving business objectives in the Department of Defense, DLAaims to align the initiatives and processes with these evolvingobjectives.

FourthGoal: Financial Stewardship

DLAhas various objectives to accomplish this goal. They aim to developflexible pricing options and automate the processes so as toaccommodate the rising levels of service and ensure performanceefficiency.

Developingand implementing flexible strategies is another objective and aims atpositioning DLA for the provision of logistics excellence in futureoperations. Other objectives include reducing the overall operationand material costs and collaborating with the clients to enhance thecapability to minimize costs and ensure transparency throughsustained auditability.

FifthGoal: Process Excellence

Thegoal is set to be achieved through various objectives. The DefenseLogistics Agency aims at optimizing enterprise initiatives throughthe implementation and integration of end-to-end process management.Process excellence is enhanced by the Supply Chain Integration thusDLA has an objective to leverage enterprise process governance.Another objective for the achievement of process excellence isdeveloping, monitoring and sustaining activities to enable culturechange. Also, DLA aims at implementing Enterprise Process Managementto ensure maximized efficiency, effectiveness, and auditableprocesses.

PerformanceMeasurement and Management in the Acquisitions Management

Toensure progress of the stipulated plan, a performance managementprogram is necessary. The program will provide significantinformation to DLA management so as to measure the progress and theeffectiveness of the efforts. The agency will be able to know thestrides taken towards realizing the vision. The Defense LogisticsAgency uses such programs to ensure necessary outputs are producedgoals set are achieved while the necessary corrections are made alongthe course of action. Process improvements are also put in place toensure proper procedures and processes are followed (Hervani,Helms, and Sarkis, 2005).

Environmentaland Sustainable Programs

Sustainablebusiness initiatives relate to corporate, social and environmentalsustainability. The initiatives involve evaluating business practicesand processes concerning people, profitability, and planet and findways for a positive impact in the areas. Improving working conditionsand the protection of the environment are not only admirable goalsbut are also good business strategies.

Agreen supply chain management is potentially a good way to eliminatewaste as well as generate cost savings. Eventually, such a strategyleads to a stronger bottom line. Many customers are committed togoing green, and thus eco-friendly enterprises benefit from afavorable opinion of the public and a greater customer loyalty(Cosimatoand Troisi, 2015).

Organizationsthat are supporting environmental sustainability and practicing greensupply chain management have been known to reap rewards by beingsuccessful in their industries.

ForDefense Logistics Agency, environmental sustainability is enhancedunder the Disposition Services that ensures disposition of hazardousproperty. Hazardous Materials are handled and prioritized just likeany other property. Some are sold to recyclers, some reutilizedwithin the Department of Defense, others transferred to variousspecific federal agencies and others donated to non-governmentalorganizations. Hazardous wastes are managed via a worldwide networkof hazardous wastes management and disposal contracts. DispositionServices offer accountability and environmental sustainability andensures ethical considerations in the society.

Anotherway in which DLA ensures environmental sustainability is through thegreen products and hazardous minimization. The Green Products Programsupports Department of Defense`s overall sustainability. The GreenProducts Program operates under the policy &quotBuy Green&quot thatis communicated to the military service customers. The DLA teamprovides the military service customers with technical assistance andguidance on the logistics on environmental pollution. DLA has GreenPrograms as well as Pollution Prevention Programs that arecommunicated to the customers for continued environmentalsustainability.

DLAprovides various products to mitigate pollution effects such as

  1. Low VOC and less toxic products

  2. Bio-based products

  3. Recycled content products

  4. Energy, water –conserving products

  5. Alternatives items to hazardous elements such as cadmium, mercury, and lead.

Summary

Thesubject of Purchasing and Acquisitions Management is crucial in anyorganization. It is vital since the departments involved determinethe quality of what is being consumed in the organization and theoutput that goes to the market. For Defense Logistics AgencyAcquisition, the established and developed frameworks over the yearshave led to the success of the agency. The agency has grown andexpanded to a great extent to support various levels of governmentsas well as foreign nations. The agency operates through set goals andobjectives with future operations governed by strategic plans.

Conclusion

Thehistory of military services and supplies acquisitions dates back toWorld War II. Various setbacks after the war led to thecentralization of supplies acquisition, storage, control andmanagement with various departments and agencies being established todeal with problems that were emerging with nature of operations. Withtime the Defense Logistics Agency was set up to deal with theproblems. The agency has been successful in streamlining operationsin the supply of military services. The agency operates under theDepartment of Defense and also in association with other supplychains. Materials and equipment are managed under the supply chainsthat also serves to ensure best services are provided to customers.The agency also operates through set goals and objectives under thestrategic plan with a follow-up and evaluation conducted throughperformance measurement and appraisal programs. The body enhancesenvironmental sustainability through a green supply chain managementwith measures set up to improve proper disposal of waste andhazardous materials.

References

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Cosimato,S. &amp Troisi, O. (2015). Green supply chain management.&nbspTheTQM Journal,&nbsp27(2),256-276. http://dx.doi.org/10.1108/tqm-01-2015-0007

DLA,.(2016).&nbspDefenseLogistics Agency &gt HQ &gt Acquisition &gt Business &gtPrograms.&nbspDla.mil.Retrieved 5 October 2016, fromhttp://www.dla.mil/HQ/Acquisition/Business/Programs.aspx

DLA,.(2016).&nbspMaterials.&nbspDla.mil.Retrieved 5 October 2016, fromhttp://www.dla.mil/WhatDLAOffers/Materials/

Hervani,A., Helms, M., &amp Sarkis, J. (2005). Performance measurement forgreen supply chain management.&nbspBenchmarking:An International Journal,&nbsp12(4),330-353. http://dx.doi.org/10.1108/14635770510609015

Macpherson,A. &amp Wilson, A. (2003). Enhancing SMEs’ capability:opportunities in supply chain relationships?.&nbspJournalOf Small Business And Enterprise Development,&nbsp10(2),167-179. http://dx.doi.org/10.1108/14626000310473193

Razzaque,M. &amp Hwee, T. (2012). Purchasing and AcquisitionsManagement.&nbspJournalOf Business Ethics,&nbsp35(4),307-326. http://dx.doi.org/10.1023/a:1013853021571

Taticchi,P., Tonelli, F., &amp Cagnazzo, L. (2010). Performance measurementand management: a literature review and a research agenda.&nbspMeasuringBusiness Excellence,&nbsp14(1),4-18. http://dx.doi.org/10.1108/13683041011027418