SOURCES SOUGHT
84 -- CSCM-A OCIE CIF Initiative
- Notice Date
- 8/27/2002
- Notice Type
- Sources Sought
- Contracting Office
- Defense Logistics Agency, Logistics Operations, Defense Supply Center Philadelphia - Clothing & Textiles, 700 Robbins Avenue, Philadelphia, PA, 19111-5096
- ZIP Code
- 19111-5096
- Solicitation Number
- Reference-Number-CIF
- Response Due
- 9/6/2002
- Point of Contact
- Rosemary Crognale, Commodity Liaison Specialist, Phone 215-737-3073, Fax 215-737-8143, - Rosemary Crognale, Commodity Liaison Specialist, Phone 215-737-3073, Fax 215-737-8143,
- E-Mail Address
-
rcrognale@dscp.dla.mil, rcrognale@dscp.dla.mil
- Description
- Request for Information/Information Exchange Background: As a result of a Type II Business Case Analysis (BCA) conducted by the Army Audit Agency, the Soldier Biological Chemical Command (SBCCOM) was tasked to lead Army's reengineering effort for OCIE and Central Issue Facility (CIF) operations. They coordinated with Defense Supply Center Philadelphia (DSCP)/Defense Logistics Agency (DLA), which led to a greater DLA role in continuous process improvement. DLA supports approximately 54 Army Central Issue Facilities (CIFs) worldwide, including 25 CONUS CIFs, with over 100 different items covering 1,000 National Stock Numbers (NSN). Sales to the CIF community totaled $59 million in FY97, $70 million in FY98, and $78 million in FY99. DLA has taken initiatives to improve support for Organizational Clothing and Individual Equipment (OCIE) for its' customers. Army and DSCP have formed an Integrated Process Team (IPT) to further explore the recommendations of the BCA as it indicated substantial savings were possible through DLA taking over inventory and the operations of Army Central Issue Facilities (CIF) and Organizational Clothing and Individual Equipment (OCIE). Subsequently, the initiative gained further visibility in Europe, the Pacific, and in CONUS. USAREUR DCSLOG asked DLA to investigate ownership of used OCIE as well as the possible assumption of day-to-day operations at Army CIFs and to conduct a similar study for support in the Pacific. Three scenarios were offered, all economically viable: 1) DLA takes ownership of OCIE stocks and assumes management of CIFs through 3PLs, keeping existing Status Quo business rules. 2) DLA owns CIFs and inventory, but streamlines CIF 3PL contracting processes to central DLA resources. 3) DLA owns CIFs, and develops strategic reengineered wholesale-retail supply chains, as already begun in Europe and Korea, and as is commonly found among best commercial practices of successful companies. DLA can potentially benefit from this last scenario by optimizing requirements, acquisition and supply operations. Support requirements are consolidated directly from retail customers, direct customer billing can reduce duplicative billing/inventory reconciliation requirements and customer ordering and return policy costs. Further, more accurate inventory stock level determination is possible due to aggregation of demands and efficient group buys. The conclusion of the BCA is Scenario 3, transfer of the OCIE inventory and management responsibilities of CIF operations through 3rd party logistic providers to DLA, is the best Alternative, and will potentially improve economies and business operations for both the Army and DLA. Key improvements include: ? Streamlining to 'one supplier, one customer.' ? Elimination of redundant supply management operations and inventories. ? Better asset visibility and control. ? Better Demand Forecasting for vendor-wholesale-retail requirements. ? Improved supply effectiveness for both inventory and financial planning. Important management considerations such as the need to develop reasonable time frames for developing needed item management information systems, item physical transfers to single points of issue, and accounting adjustments for stock ownership need to be addressed. Also, detailed coordination between the Army and DLA is required to ensure Army forward stock locations adequately meet operational requirements, possibly in excess of standardized economic order quantity calculations. There are many obvious benefits to such a system. DSCP would gain the tools it needs to implement a just-in-time inventory system through more accurate forecasting. For the first time ever, true total asset visibility could be achieved in the OCIE arena. In addition, excess inventory could be reduced or eliminated throughout the pipeline. This system would also support a deployment scenario much more efficiently than today's local property book CIF environment. A soldier could deploy without advance notice and not have to deal with the burden of completely clearing their equipment at his or her home duty station. Next Steps: DLA and the Army are conducting an in-depth Type I BCA. This is being conducted to validate the findings of the Type II BCA. It will do so by substantiating the proposed cost savings obtained by re-engineering the CIF supply chain processes and by the assumption of OCIE asset ownership by DLA at the CIF level. In substantiating the cost savings, it is required to develop an optimized regional distribution network with a quantitative analysis of the transportation channels identified to support that network. A clear definition of the 'to-be' model will be defined. A data call to all CIFs will be conducted to identify actual costs. Should the findings of this analysis show such a program to be viable, DSCP will initiate a pilot program at a site mutually selected by DLA and the Army. The Government is also engaging potential solution providers to obtain feedback. We are interested in sharing our project concept, obtaining industry interest, exchanging ideas about possible solutions and promoting industry consideration as a third party logistics provider. Information Exchange with Industry: DSCP is scheduling an Information Exchange with interested parties in an attempt to identify and exchange critical elements in the development of this project should the findings of the Type I Analysis so indicate. This exchange will take place at Defense Supply Center Philadelphia on September 12, 2002. For additional information regarding participation in this exchange, contact Rose Crognale at 215-737-3073 or rcrognale@dscp.dla.mil.
- Record
- SN00150780-W 20020829/020827213141 (fbodaily.com)
- Source
-
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