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DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY
WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE
DoD Support to Contingency Operations
Don Buchwald
Director, Medical Customer Operations
July 22, 2015
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Deliver the right solution on time, every time
WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE
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• DLA Troop Support Medical Mission and Focus
• Medical Support during peacetime
• Transition to contingency operations
• Support to Hurricane Sandy
• Challenges
Agenda
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Deliver the right solution on time, every time
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Mission: To provide the most effective, best value medical logistics support to America’s Armed Forces… Every Day and in Every Crisis
• We exist to meet DoD medical wartime requirements…
• We integrate our logistical information systems to handle them
• We prepare for them by leveraging our peacetime business programs
• We optimize costs so our customers can afford more capabilities
• We partner with federal/commercial counterparts when it furthers DoD goals
• We practice our response capability continuously and realistically
• We prove our capabilities to respond every day and in every crisis
Strategic Mission COL Zotomayor
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Deliver the right solution on time, every time
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Every Day Every Crisis
Vision: To provide an integrated and responsive system of choice for delivering consistent, quality medical materiel support for health care providers to perform their patient care mission
Our Dual Focus
• Ready on day one • Varied missions & requirements • Resupply & sustainment • Control commercial/industrial
materiel • Situational awareness
• Health care economics • The business of health care • The cost of medical materiel • Reliable “next day” support • Business intelligence
Institutional Operational
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Deliver the right solution on time, every time
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• Prime Vendor…Pharmaceutical and Med/Surg
• Electronic Catalog…Dental, Lab, Optical, Orthopedic; Spinal, Cardio Vascular
• Direct Vendor Delivery – Materiel purchased, when not via Ecommerce programs
• Depot
– Military Unique Materiel…Transfer Cases; Bandages, etc.
• Distribution – CONUS – Vendors deliver direct to customers – OCONUS – Vendors prepare for shipment and DLA provides movement via
Transportation Command’s commercial carrier contracts
Peacetime Medical Support Strategy
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• Contractual partnerships between a vendor and DLA Troop Support
• Purchases access versus stocks
• Guaranteed quantity of specific products with time-phased delivery to meet the Services’ Medical Contingency File/Readiness requirements
• Optimizes coverage of Readiness requirements using minimal investment dollars
• DLA Troop Support uses “Warstopper” funds to pay fees associated with its various Readiness programs
Contingency Support Readiness Contracts
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Deliver the right solution on time, every time
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Range of Items
• Medical Contingency File (MCF) – Joint time phased 180 day “go to war” medical materiel shortfalls
• Service generated • COCOMs can submit through the Readiness Requirements Team (RRT) • Time phased…Day 0 (out the door)/Sustainment out to 180 days
– Line item detail by National Stock Number (NSN) and level of care – Joint Deployment Formulary (JDF) – Semiannual updates
• MCF Application
– Captures requirements from the Services – Ties NSNs to commercial items – Recommends items that are plentiful in the commercial sector – Provides single management tool for DoD medical materiel readiness
requirements
How the Requirements are Identified
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Deliver the right solution on time, every time
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• DoD Service stock - Initial on-hand inventory– Normally 30 Days of Supply
• War Reserve Materiel – Services managed; located CONUS, OCONUS, and afloat
• Vendor Managed Inventory – guaranteed access to shelf-life materiel
• Prime Vendor War Readiness Materiel – contractual coverage of Prime Vendor materiel in support of Services’ identified shortfalls for “get out the door” requirements – Deferred Procurement Option – mainly pharmaceutical items to round out
assemblages on shelf-life materiel – PVWRM Option – support follow-on deployment of units with rapid sustainment
• Distribution – CONUS direct to units
Contingency Medical Support Strategy Surge
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Deliver the right solution on time, every time
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• Contingency Contracts – Warstopper Funded – Corporate Exigency Contracts – long term partnerships with manufacturers
and “unique distributors” – buys ACCESS to materiel – Vendor Managed Inventory (DLA Owned) – partnering with distributors in
providing inventory management and guaranteed availability for shelf-life materiel
• Government Purchased Materiel – vendor paid for materiel plus an inventory management fee to store/maintain
• Contractor Inventory Materiel – only purchased when needed – materiel maintained/rotated through commercial business inventory levels – paid inventory management fee for guaranteed access
• Contractor Furnished Materiel – contractor increases inventory levels to meet government requirements – paid an inventory holding fee plus an inventory management fee for guaranteed access
Contingency Medical Support Strategy Sustainment
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Deliver the right solution on time, every time
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– PV War Readiness Materiel – Buy response versus inventory • Designed to support follow-on deployment of units
• Depot – Provides mil unique items, long lead time items
• Direct Vendor Delivery – New acquisition – manual and manpower intensive
• Industrial Preparedness Planning (IPP) assessments ‒ collaborative effort among DLA Troop Support Medical, Services and
the healthcare industry ‒ assess industrial capabilities of manufacturers and distributors to
provide materiel to met the time phased mobilization and sustainment requirements of the Services
Contingency Medical Support Strategy Sustainment (continued)
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Deliver the right solution on time, every time
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Support to Health and Human Services • DoD always in a supporting role; provides tertiary support when requested
– Hurricane Sandy • Hypothermia Prevention Kit: 200 each • Portable X-Ray Machines: 6 each • 253 MEDSURG lines
• Challenges – Normally nomenclature requests; manual cross-referencing takes time – Substitutions must be vetted with HHS; slows immediate action – Delivery locations not definitive sufficiently for delivery – Funding/billing via interagency processes is cumbersome and resource
intensive
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Deliver the right solution on time, every time
WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE
Additional Challenges ISO HHS
• Response Time – Contingency Contracts have 24 hour to the back dock requirement – DLA responsible for delivery to customer; use commercial carriers
• Delivery Location – Contingency Contracts require delivery site with point of contact – Difficult to re-route materiel in process
• Materiel Type – DoD requirements on contingency contracts specifically for wartime support – Tailored to wartime injuries – Limited coverage of pediatrics/geriatrics items
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DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY
WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE